### rFields of Opportumties

CHESTERJ . CULVER, GOVERNOR PATTYJUDGE. LT. GOVERNOR 

### February 17, 2009 John B. Askew Regional Administrator U .S. Environmental Protection Agency, Region VII 901 North Fifth Street Kansas City, KS 66101 Dear Mr. Askew

: 

## APDg RFCEw~~~ 

# FEB 2 ] 20C

The Department requests revisions to the state's Title Vprogram for the enclosed air quality administrative rule amendment. The Environmental Protection Commission (EPC) adopted the enclosed rule on December 9, 200,after the public hearing. The EPChas full legal authority to develop rules pursuant to Section 455B.133 of the Iowa Code. The state followed all applicable administrative procedures in proposing and adopting this rule. Enclosed are the required submittal elements for determination ofplan completeness per 40 CFRPart 51, Appendix V . The notice was published in the Iowa Administrative Bulletin Vol . XXXI, No. 8, page 861-862, ARC7220B

. Apublic hearing was held on November 12, 2008, at the Air Quality Bureau in Urbandale. Onewritten comment was received and is summarized in the attached Responsiveness Summary. The rule making was published as "adopted and filed" in the Iowa Administrative Bulletin Vol . XXXI, No. 14, page 1511, ARC7473B . The effective date of this rule was February 4, 2009. Acopy of the published notice and filed document for this rule is enclosed. If you have any questions regarding this submittal, please contact Wendy Rains at (515) 281-6061 .

Enclosures: IABVol . XXXI, No. 8 (10/08/2008), pages 861-862, ARC7220B IABVol . XXXI, No. 14 (12/31/2008), page 1551, ARC7473B Public Participation Responsiveness Summary cc: Wendy Rains, IDNRAir Quality Bureau (no enclosures) 

# STATE OF IOWA DEPARTMENT OF NATURAL RESOURCES

RICHARDA

. LEOPOLD, DIRECTOR

7900 Hickman Road, Suite 1 / Urbandale, Iowa 50322 515-242-5100 FAX515-242-5094 httg:lfwwwiowacleanair.com/

# IOWA

ADMINISTRATIVE BULLETIN

Puhlished Biweekly VOLUME XXXI NUMBER 8 October 8, 2008 Pages 837 to 950 

# CONTENTS IN THIS ISSUE Pages 847 to 950 include ARC7209B to ARC 7259B and ARC7261B to ARC 7269B ALL AGENCIES Agency identification numbers . . . . . . . . . . . . . . . . . 845 Citation of administrative rules. . . . . . . . . . . . . . . . . 840 Schedule for rule making. . . . . . . . . . . . . . . . . . . . . . . 841 COLLEGE STUDENT AIDCOMMISSION(2831 EDUCATION DEPARTMENT1281/"umbrella" Notice, All Iowa opportunity foster care grant program-awards, 9.4(5) ARC 7251B. . . . . 847 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF(2611 Notice Terminated, Targeted jobs withholding tax credit program, 71 .1 to 71 .6ARC7248B . . . . . . . . . . . . . . . . . . . . . . . . . . . 847 Notice, Targetedjobs withholding tax credit program, 71 .1 to 71 .6 ARC7249B . . . . . . . 848 Notice, Small business disaster recovery financial assistance program, ch 78 ARC7236B . . . . . . . . . . . . . . . . . . . . . . . . . . . . .849 Filed, Physical infrastructure assistance program(PIAP) eligibility, 23.7(1), 61 .1(2), 61 .3(1), 61 .4(2), 61 .5, 61 .7(2), 174.3(5)ARC 7231B. . . . . . . . . . . . . . . . . . . . . . . . 930 Filed, Housing fund, amendments to ch 25 ARC7232B. . . . . . . . . . . . . . . . . . . . . . . . . . .930 Filed, Film, television, and videoproject promotion program, 36.1 to 36.9 ARC7247B . . . 931 Filed, Regional sports authority districts, 38.1 to 38.8 ARC7237B. . . . . . . . . . . . . . . . . . . . . 932 Filed Emergency, Small business disaster recovery financial assistance program, ch 78 ARC7235B . . . . . . . . . . . . . . . . . . . . . . . . . .910 Filed, Information technology training program, 103.1 to 103.13 ARC7234B . . . . . . . . . 933 Filed Emergency After Notice, Targeted industries networking fund, 107.1 to 107.8 ARC7245B . . . . . . . . . . . . . . . . . . . . . . . . . . 912 Filed, Targeted industries student competition fund, 108.1 to 108.8 ARC7233B . . . 933 Filed, Targeted industries career awareness fund, 109

.1 to 109.9ARC7246B. . . . . 934 Filed Emergency After Notice, Lean manufacturing institute, supplier capacity and product database, and management talent recruitment programs, chs 110to 112ARC7243B. . . . . . . . . . 912 Filed Emergency After Notice, River enhancement community attraction and tourismfund, amendments to chs 211, 212ARC7244B. . . . . . . . . . . . . . . . . . . . . . . . . . .914 EDUCATION DEPARTMENT(2811 Notice, Competent private instruction and dual enrollment, 31 .1 to 31 .10ARC7211B. . . . . . 851 Filed, Physical restraint; confinementand detention, 103.1 to 103.8 ARC 7212B. . . . . . . . . . 935 EDUCATIONAL EXAMINERS BOARD(2821 EDUCATIONDEPARTMENT1281i"umbrella" Notice, Class A license requirements, 14.115 ARC7252B . . . . . . . . . . . . . . . . . . . . . . . . . 850 Filed, Superintendent endorsement-administrative experience, 14.142(4)"c" ARC7250B. . . . . . . . . 935 ENVIRONMENTAL PROTECTION COMMISSION(567] NATURAL RESOURCES DEPARTMENT/561/"umbrella" Notice, Maximumannual Title V operating permit fee, 22.106(1) ARC7220B . . . . . 861TAB 10/8/08 NOTICES 861 

## ARC 7220B ENVIRONMENTAL PROTECTION COMMISSION[567] Notice of Intended Action Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1) "b . " Notice is also given to the public that the Administrative Rules ReviewCommittee may, on its own motion or on written request by any individual or group, reviewthis proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard. Pursuant to the authority of Iowa Code section 455B.133, the Environmental Protection Commission hereby gives Notice of Intended Action to amend Chapter 22, "Controlling Pollution," Iowa Administrative Code. The purpose of this rule making is to increase fromthe current fixed dollar amount of $39 per ton to $62 per ton the maximumannual Title V Operating Permit fee that the Environmental Protection Commission can establish on thefirst 4,000tons of actual emissions of each regulated pollutant emitted annually froma major source. Budget projections and estimates of actual emissions indicate that the annual fee will have to be increased above $39 per ton to maintain the current level of service in state fiscal years 2010 to 2015. The Department met with members of the public and industry and with environmental groups to obtain preliminary input on raising the maximumfee. The data, assumptions, and methodology used to arrive at the $62 per ton fee level cap and other changes were reviewed and discussed in detail at meetings on May 22 and June 5, 2008. The meetings were advertised in the State of Iowa's Public Meeting Calendar, on the Air Quality Bureau Web site, and by list server articles. The Department requested that comments be submitted by July 1, 2008. Two comments were received by this date. One comment suggested exploring additional grant opportunities while creating a new fee program

for minorsources. The second comment concurred with the need to increase the fee cap but also requested that the Department continue to restrict the use of the fees to air quality programs for which they were intended; to streamline pennitting processes; to seek other funding mechanisms; and to recognize that clean air benefits all Iowans and, therefore, the State's general revenue funds should provide supportfor the Department . The Department received additional comments fromMidAmerican Energy after the July 1, 2008, deadline. MidAmerican Energy raised several concerns on increasing the fee cap and theuse of Title V funds for various programareas. The Department met with MidAmerican on July 24, 2008, to address their concerns . No additional comments have been received. The data, assumptions, and methodology were determined to be reasonable based on past budget information, available salary contract information, and past actual emissions trends. The Department will continue to work with interested parties to examine alternate fee scenarios. The increase from$39 per ton to $62 per ton is based on budget projections for the next three state fiscal years and estimates of the actual emissions during this period. Basing the maximum fee level on budget projections for the next five state fiscal years should prevent the need for the Commission to change the fee level capprovisionin subrule 22.106(1 ;1 again forat least this period of time. Theneed to increase the maximum

fee level to maintainthe current level ofservices is the result ofthecombination of increases in staffsalaries dueto negotiated contract increases and projecteddecreases in actual emissions over this period. The$62 per ton maximum fee level is a 59percent increase over thenext five statefiscal years to account for estimated increases in salary expenditures, including indirect costs, and increases in the costs of equipment, including equipment to operate an ambient air monitoring network. Any person may make written suggestions or comments on the proposed amendment on or before November 13, 2008. Written comments should be directed to Wendy Rains, Department of Natural Resources, AirQuality Bureau, 7900 Hickman Road, Suite 1, Urbandale, Iowa 50322. Comments may be sent by fax to (515)242-5094 or by electronic mail to wendy.rains(&,dnr.iowa.gov.862 NOTICES IAB 10/8/08 ENVIRONMENTAL PROTECTION COMMISSION[567](cont'd) A public hearing will be held on November 12, 2008, at 10 a.m . at the Department's Air Quality Bureau offices located at 7900 Hickman Road, Urbandale, Iowa. Comments may be submitted orally or in writing during the public hearing. All comments must be received no later than November 13, 2008. Anypersons whointend to attend thepublic hearing and have special requirements, such as those related to hearing or mobility, should contact the Department of Natural Resources to advise of any specific needs. This amendment is intended to implement Iowa Code section 455B.133. The following amendment is proposed. Amend subrule 22.106(1) as follows: 22.106(1) Fee established. Any person required to obtain a Title Vpermit shall pay an annual fee based on the total tons of actual emissions ofeach regulatedair pollutant, beginning November 15, 1994. BeginningJuly 1, 1996, Title Voperating permit fees will be paid on or before July 1 of eachyear. The fee shall be based on actual emissions required to be included in the Title Voperating permit application and the annual emissions statementfor theprevious calendar year. The department andthe commission will reviewthe fee structure on an annual basis and adjust the fee as necessary to cover all reasonable costs required to develop andadminister the programs required by theAct. The department shall submit the proposed budget for the following fiscal year to the commission no later than the March meeting. The commission shall set the fee based on the reasonable cost to run the programand the proposed budget no later than the May commission meeting ofeach year. The commission shall provide an opportunity for public comment prior to setting the fee . The commission shall not set the fee higher than S4}_$62 per ton without adopting the change pursuant to formal rule making. 

## ARC 7219B ENVIRONMENTAL PROTECTION COMMISSION[567] Notice of Intended Action Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(i) "b. " Notice is also given to the public that the Administrative Rules ReviewCommittee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard. Pursuant to theauthority of Iowa Code section 455B.304, the Environmental Protection Commission hereby gives Notice of Intended Action to amend Chapter 119, "Waste Oil," Iowa Administrative Code. Theseamendments are being proposed to incorporate thechanges made to Iowa Code section 455D.13 as amended by 2008 Iowa Acts, House File 2668. This legislation requires retailers that sell oil filters to post a sign informing their customers of the nearest collection site for used oil filters. It also requires businesses to recycle the used oil filters that they generate. The proposed changes to Chapter 119 include the addition of collection requirements for used oil filters, the addition ofsignage requirements forfilter retailers, updates to the signage requirements foroil retailers, removal of some of the Department's responsibilities, and rescission of the state procurement regulations. The amendments also change the term "waste oil" to "used oil" to be consistent with Iowa Code section 455D.13 as amended by 2008 Iowa Acts, House File 2668, and EPAregulations. Any interested person may make written suggestions or comments pertaining to the proposed amendments on or before 4 :30 p.m . on October 28, 2008. Such written materials should be directed to Kathleen Hennings, Land Quality Bureau, Iowa Department of Natural Resources, 502 East 9th Street, Wallace State Office Building, Des Moines, Iowa 50319-0034; fax (515)281-8646; or E-mail Kathleen .Henningsgdnr .iowa.gov. Persons wishing to convey their views orally should contact Kathleen Hennings by telephone at (515)281-5859

.

# IOWA

ADMINISTRATIVE BULLETIN Published Biweekly VOLUME XXXI NUMBER 14 December 31, 2008 Pages 1471 to 1526 

# CONTENTS IN THIS ISSUE Pages 1483 to 1525 include ARC 7444B to ARC 7475B AGENDA ETHICS AND CAMPAIGN DISCLOSURE Administrative rules reviewcommittee . . . . . . . . . 1475 BOARD, iOWA[3511 Notice, Campaign disclosure ALL AGENCIES procedures-committee assessments, Agency identification numbers . . . . . . . . . . . . . . . . 1481 4 .59 ARC7455B . . . . . . . . . . . . . . . . . . . . . . . 1487 Citation of administrative rules. . . . . . . . . . . . . . . 1473 Filed, Appointment of officers to Schedule for rule making. . . . . . . . . . . . . . . . . . . . 1474 campaign committees, 4.4(1) ARC 7460B . . . 1517 CREDIT UNIONDIVISION[ 1891 Filed, Statement of organization, 4.6(2) COMMERCE oEPARTMENT1Iail" . .,br.Ba" ARC 7461B . . . . . . . . . . . . . . . . . . . . . . . . . . . 1518 Filed, Update ofreferences to Iowa Code, Filed, Electronic filing of verified amendments to chs 1, 3, 6, 7, 9to 17, statement ofregistration, 4.32 ARC 7457B. . . . 1518 19,23,25 ARC7471B . . . . . . . . . . . . . . . . . . . 1509 Filed, Filing of reports by 527 DENTAL BOARD[650] Committees, 4 .34 ARC7462B . .

-. . . .OTC. . . . . . . . 1519

, PUBLIC HEALTH DEPARTMENT16411"umbrulla" Filed, Electronic filing of FormDR Notice Terminated, Guidelines on 4.35 ARC 7459B . . . . . . . . . . . . . . . . . . . . . . . . . 1520 sedation, amendments to ch 29 ARC 7463B . . . 1483 Filed, Electronic filing of FormPFD, 7.1, 7.3(5) ARC7458B. . . . . . . . . . . . . . . . . . . . . . . 1520 ELDERAFFAIRS DEPARTMENT13211 Notice, Iowa family caregiver support program, ch 14 ARC7456B . . . . . . . . . . . . . . . . 1483 Filed, Senior living coordinating unit, 16.2(7), 16.4 ARC 7444B. . . . . . . . . . . . . . . . . . 1509 Filed, Office of substitute decision maker, ch 22 ARC7445B . . . . . . . . . . . . . . . . . . . . . . . . 1510 ENVIRONMENTAL PROTECTION COMMISSION[567] NATURAL RESOURCES DEPART:NENT1561]"umbrella" Filed, Maximum

annual Title Voperating permit fee, 22.106(1) ARC 7473B . . . . . . . . . . . 1511 Filed, Closure of existing MSWLF units, 113,2(8), 113.2(10)"a," 113.3 ARC7474B . . . . 1512 Filed, Used oil and used oil filters, 119 .1 to 119.9 ARC 7475B . . . . . . . . . . . . . . . . . . . . . . 1516 HUMANSERVICES DEPARTMENT[4411 Notice, SSA program-annual adjustments to eligibility and payment levels, 51 .4(1), 51 .7, 52.1 ARC7472B . . . . . . . 1488 Filed Emergency, SSA program-annual adjustments to eligibility and payment levels, 51 .4(1), 51 .7, 52.1 ARC 7470B . . . . . . . 1507 IOWA FINANCE AUTHORITY12651 Notice Terminated, 3umpstart housing assistance program, ch 29 ARC 7468B . . . . . . . 1489 Filed, Second amended 2009 qualified allocation plan, 12.1 ARC7469B. . . . . . . . . . . . 1521IAB 12/31/08 FILED 1511 

## ARC 7473B ENVIRONMENTAL PROTECTION COMMISSION[567] Adopted and Filed Pursuant to the authority ofIowa Code section 455B.133, the Environmental Protection Commission hereby amends Chapter 22, "Controlling Pollution," Iowa Administrative Code. The purpose of this amendment is to increase the maximum dollar per-ton fee specified in 567-subrule 22.106(1) . This is the maximum fee that the Environmental Protection Commission can establish on the first 4,000 tons of actual emissions of each regulated air pollutant emitted annually fromsources subject to the Title V operating permit program . There are currently 273 sources in the state that are subject to this program . Notice of Intended Action was published in the Iowa Administrative Bulletin on October 8, 2008, as ARC7220B

. Apublic hearing was held on November 12, 2008. The Department received one written comment prior to the end of the public comment period on November 13, 2008. One written comment was also received at the public hearing. No oral comments were received. Based on consideration of the comments received, the Department has changed the duration of the fee cap fromfive to three years. The Department has also revised the proposed fee cap from$62 to $56, which is estimated to provide sufficient funding for three years rather than the proposed five years. A public participation responsiveness summary is available fromthe Department upon request. Budget projections andestimates ofactual emissions indicate that the annual TitleVfee will have to be increased above $39 per ton to maintain the current level ofservice in state fiscal years 2010 through 2012. The Department will continue towork with interested parties to examine alternate fee scenarios. The increase from$39 per ton to $56 per ton is based on budget projections for the next three state fiscal years and on estimates of actual emissions during this period. Basing the maximum fee on budget projections for the next three state fiscal yearsshould prevent the need for the Commission to change the maximum

dollar per-tonfeeprovision in subrule 22.106(1) again forat least this period oftime. The need to increase the maximumfee to maintain the current level of services is the result of the combination of projected increases in staff salaries due to negotiated contract increases, including indirect costs; increased equipment and operating costs for the state's ambient air monitoring network; and projected decreases in actual emissions. This amendment is intended to implement Iowa Code section 455B.133. This amendment will be effective on February 4, 2009. The following amendment is adopted. Amend subrule 22.106(1) as follows: 22.106(1) Fee established. Any person required to obtain a Title Vpermit shall pay an annual fee basedon thetotal tons of actual emissions ofeach regulated air pollutant, beginning November 15, 1994. Beginning July 1, 1996, TitleVoperating permit fees will be paid on or before July 1 of eachyear. The fee shall be basedon actual emissions required to be included in the Title Voperating permit application and the annual emissions statement for the previous calendar year. The department andthe commission will reviewthe fee structure on an annual basis and adjust the fee as necessary to cover all reasonable costs required to develop andadminister the programs required by the Act. The department shall submit the proposed budget for the followingfiscal year to thecommission no later than the March meeting. The commission shall set the fee based on the reasonable cost to run the programand the proposed budget no later than the May commission meeting ofeach year. The commission shall provide an opportunity for public comment prior to setting the fee. The commission shall not set the fee higher than $W $56 per ton without adopting the change pursuant to formal rule making. [Filed 12/10/08, effective 2/4/09] [Published 12/31/08] ED1TO1t's NOTE: For replacement pages for IAC, see IACSupplement 12/31/08 .

### PUBLIC PARTICIPATIONRESPONSIVENESS SUMMARY FOR 567 IOWA ADMINISTRATIVE CODE CHAPTER22 CONTROLLINGPOLLUTION TITLE VFEE CAP Introduction The Notice ofIntended Action was published in the Iowa Administrative Bulletin (IAB) on October 8, 2008, as ARC7220B . Apublic hearing was held on November 12, 2008. Three people fromMidAmerican Energy attended the hearing. They provided onewritten comment at the public hearing and onewritten comment before the public comment period closed on November 13, 2008. Asummary ofthe comments and the department's response is provided below . Public Comment : Asummaryofwritten comments submitted byJon Kallen, MidAmerican Energy, 666 Grand Avenue, Des Moines, IA 50309, as follows: IDNR proposes to exceed the current emissions fee cap of $39per ton of emissions with potential increases to $50 .25 in state fiscal year (SFY) 2010, $51 .65 in SFY 2011, $55.30 in SFY 2012, $58

.50 in SFY 2013, and $61 .80 in SFY 2014. MidAmerican Energy (MidAmerican) has specific concerns about the amount of this proposed increase in the emissions fee cap in the Title Vbudget. Furthermore, these increases would place Iowa's Title Vemissions fees at the top of all states with delegated air programs. IDNR has stated that any increase in the cost per ton ofemissions fees in the Title Vbudget will be offset by reductions in source emissions related to added pollution controls put in place because ofthe Clean Air Interstate Rule (CAIR) . Specifically, the IDNRcontends that with the projected decrease in emissions it is necessary to address the future Title Vprogramfunding deficit with an increase in per ton emissions fees. However, the proposed budget only shows a decrease in tonnage from224,000 tons in SFY 2009 to 216,000tons in SFY 2014, which is a small decrease and insufficient tojustify such a large per ton fee increase. Aloss in 8,000 tons of emissions (at $39per ton) mayyield lost revenues of approximately $312,000 . However, almost doubling the per ton emissions fee for 8,000tons ofemissions represents a disproportionate increase. Further, while there is the potential for a decrease in overall fees for some larger facilities, many of these reductions for large stationary sources will still keep actual emissions over the 4,000ton cap; therefore there will not be any resulting decrease in revenue. Emissions fees paid to the IDNRwill actually increase substantially under the proposed increases in the per ton emissions fee.

### MidAmerican is supportive of a modest emissions fee cap of $50 .25 to ensure that the air quality program has sufficient resources to fund a robust program . Iffuture IDNRbudget projections demonstrate the need to raise the fee cap above the $50.25 per ton ofemissions, the IDNRstill has the option to initiate a rulemaking to request additional funding. Department Response: MidAmerican references the draft Title Vbudget for state fiscal year (SFY) 2010 - 2014. A draft budget for the next five years was prepared in order to develop the fee cap proposal . As explained in the rule preamble, in stakeholder meetings, at the DNR .-MidAmerican meeting on July 24, 2008, at Departmental Client Contact meetings, and to the Administrative Rules Review Committee on November 7, 2008, the quoted increases are draft projections based on a five year budget using the worst case scenarios for the Title Vprogram . The Department is not proposing to increase the Title Vfee for SFY 2010or any other year based on the projection. The Title V fee for SFY 2010will be presented to the Department's Environmental Protection Commission in March 2009 for information and May2009 for decision. The estimated SFY 2010 fee will not be known until February 2009 . MidAmerican indicates the proposal would create the highest fee among delegated programs. This is an inaccurate characterization and is incorrect. The proposal is to raise the maximum fee cap based on a five year projection. It does not establish the fee. The Title Vprogram was created by the 1990 Clean Air Act Amendments. The Department's Title Vprogram, the structure for assessing fees, and the fee capwere developed by a workgroup ofaffected stakeholders, including MidAmerican, in the early 1990s. Title Vprograms in other States typically do not have a maximum fee cap. States created their Title Vprograms based on EPA guidelines but customized the program to fit the needs of the State. It is very difficult to compare Title Vprograms fromone State to another due to the program customization. For example, some states require fees for applications and modifications in conjunction with annual emission fees. Other states require annual emissions fees on potential emissions rather than actual emissions which results in higher revenues for the same dollar per ton fee. It should be noted that the State of Nebraska, which has a Title Vfee structure very similar to the Department's, charged $57 per ton ofactual emissions in 2008 while the Department's projected fee for 2009 is $50 .25 per ton. MidAmerican states that it is disproportionate to double the fee for an 8,000ton decrease in actual emissions. Again, this proposal is to raise the maximum fee and not the fee itself. While the level ofactual emissions is an important factor in establishing the Title Vfee each year, the Title Vbudget is not based on a single factor. The Department's Title Vprogramcharges an annual fee based on the program's budgetary demands. The fee must provide forprogrammatic increases such as personnel expenses, program regulatory requirements, equipment expenses, decreased (or increased) emissions, and other factors associated with developing and administering programs for major sources. It is therefore not possible to correlate an individual factor, like an 8,000ton projected emissions decease, directly to the change in the fee or fee cap.

### The programhas seen an increase in regulatory demands that impact major sources, a decline in

the number offacilities triggering the program, and a decline in actual emissions over the last few years. The trend of declining emissions is anticipated to continue in the future across all sectors. It is notbased solely on electrical generation units or on federal requirements such as the Clean Air Interstate Rule. While emissions decreases are always desirable, a decrease in emissions does not correlate to a decrease in the program requirements. For example, emissions decreases do not impact the ongoing need to operate and update the ambient air monitoring network, collect and process emissions inventories, conduct compliance activities, and complete planning and program development activities. MidAmerican recommends a fee cap that worse-case projections indicate would only be adequate for one state fiscal year. They also advise that additional future rulemakings can be initiated to raise the cap again as necessary . Additional rulemakings remove stafffrom working on actual major source programmatic requirements and require stakeholders to rearrange schedules and priorities to participate in workgroup discussions. This recommendation is also contrary to the Department's efforts and the request of many industry stakeholders to reduce the number of rulemakings conducted each year. It is important to emphasize that anyTitle Vfees remaining at the end of a state fiscal year are applied to the next year . Staffestimate the ending Title Vfund balance as part of the annual budget process. Remaining Title Vfunds are not diverted to other programareas. Recommended Actions The commenter recommended a fee cap increase that was consistent with a budget projection for a time period shorter than five years. The Department reviewed the fee cap projections for a shorter timeframe, including the latest refinements to the budgetary projections based on federal funding uncertainties, upcoming regulations and grant opportunities. Based on these considerations, the Department will modify the text of the adoption in Chapter 22 to reflect a maximum

fee of $56

. This fee cap level is projected to provide sufficient funds forthe next three state fiscal years rather than the five state fiscal years proposed in the Notice of Intended Action.