DEPARTMENT OF

ENVIRONMENTAL CONSERVATION

18 AAC 50

Air Quality Control

Public Comment Draft

May 21, 2015

Comment Period Ends

June 30, 2015, 5:00 p.m.

Bill Walker

Governor

Larry Hartig

Commissioner
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18 AAC 50.230(c)(1)(I) is amended to read:

(I) the administration fee in 18 AAC 50.400(f)(2) [18 AAC 50.400(h)(2)];

and

...

18 AAC 50.230(d)(1)(E) is amended to read:

(E) the administration fee in 18 AAC 50.400(f)(2) [18 AAC 

50.400(h)(3)]; and

(Eff. 1/18/97, Register 141; am 6/21/98, Register 146; am 10/1/2004, Register 171; am 

1/29/2005, Register 173; am 7/1/2010, Register 194; am __/__/____, Register ___)

Authority: AS 44.46.025 AS 46.14.030 AS 46.14.170

AS 46.03.020 AS 46.14.120 AS 46.14.180

AS 46.14.010 AS 46.14.130 AS 46.14.240

AS 46.14.020

The lead in language of 18 AAC 50.260(p) is amended to read:

(p) Department services under this section are designated regulatory services for 

preapplication assistance and will be billed to the operating permit covering the source subject to 

BART as set out in 18 AAC 50.400(h) [18 AAC 50.400(j)].

(Eff. 12/30/2007, Register 184; am 7/1/2010, Register 194; am 10/6/2013, Register 208; am 

__/__/____, Register ___)

Authority: AS 46.03.710 AS 46.14.010 Sec. 30, ch. 74, SLA 1993

AS 46.14.020 AS 46.14.030
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18 AAC 50.400 is repealed and readopted to read:

18 AAC 50.400. Permit administration fees. (a) The permittee, owner, or operator of 

a Title V source described under 18 AAC 50.326 shall pay to the department the annual permit 

administration fees listed in this subsection. Permittees will be invoiced in July for each period 

from July 1 through the following June 30. Each annual permit fee is one-fifth of the total 

original permit cost or total cost of permit renewal. For an initial Title V permit, the annual 

permit fee is collected starting the first July after the permit is issued. The following permit 

administration fees apply to Title V sources:

(1) for renewal of a permit for an oil-and-gas source with the potential to emit 

more than 250 tons per year of any one pollutant, the 

(A) annual permit fee is $4,261; and 

(B) annual compliance review fee is $4,436; 

(2) for renewal of a permit for a large power plant, other than one described in (3) 

of this section, with the potential to emit more than 250 tons per year of any one pollutant, the 

(A) annual permit fee is $2,527; and

(B) annual compliance review fee is $3,372;

(3) for renewal of a permit for a coal-fired plant with the potential to emit more 

than 250 tons per year of any one pollutant, the 

(A) annual permit fee is $10,567; and

(B) annual compliance review fee is $6,737;

(4) for renewal of a permit for a small power plant with the potential to emit 

more than 250 tons per year of any one pollutant, the
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(A) annual permit fee is $1,720; and

(B) annual compliance review fee is $2,491;

(5) for renewal of a permit for a Title V source, with the potential to emit more 

than 100 and less than 250 tons per year of any one pollutant, and that is an oil-and-gas source or 

thermal soil remediation unit, the

(A) annual permit fee is $1,303; and

(B) annual compliance review fee is $3,341;

(6) for renewal of a permit for a small power plant, with the potential to emit 

more than 100 and less than 250 tons per year of any one pollutant, the

(A) annual permit fee is $2,067; and

(B) annual compliance review fee is $2,989;

(7) for a Title V source that is operating under the department’s general operating 

permit for diesel engines, the annual compliance review fee is $1,554;

(8) for a Title V source that is operating under the department’s general operating 

permit for asphalt plants, the annual compliance review fee is $2,091; 

(9) for renewal of a permit for a Title V source, other than one described in (1) –

(6) of this subsection, and that has the potential to emit less than 250 tons per year of any one 

pollutant, the

(A) annual permit fee is $844; and

(B) annual compliance review fee is $3,159.

(b) If the permittee, owner, or operator of a Title V source is subject to an annual permit 

fee listed in (a) of this section for renewal of a Title V permit, and does not apply to renew the 

Title V permit for that source, they may request a refund in writing, and the department will 
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refund any annual permit fees that had been paid for that renewal. Annual compliance review 

fees are not refundable.

(c) If the department prepares a new general operating permit or a new general minor 

permit, the department will determine the cost of that permit by multiplying the number of hours 

the department spent to develop the permit by the hourly rate of salary and benefits of the 

department employees who developed the permit. This cost will be divided by the number of 

permittees who receive or are expected to receive the permit to determine the permit 

administration fee.

(d) The permittee, owner, or operator of a stationary source shall pay an annual 

compliance fee of $750 to be paid for each period from July 1 through the following June 30, for 

a stationary source that is not classified as needing a Title V permit and that is

(1) subject to a minor permit under 18 AAC 50.502; the annual compliance 

review fee must be paid in addition to the general minor permit fee in (c) of this section; 

(2) subject to an owner requested limit under 18 AAC 50.508(5); the annual 

compliance review fee must be paid in addition to the fees paid under (h) of this section; or

(3) required to have a minor permit under 18 AAC 50.502(b), that is operating 

under an operating or general permit issued before October 1, 2004.

(e) After the department completes a review, action or activity described in this 

subsection, and sought by the permittee, owner, or operator of a stationary source subject to 

18 AAC 50.326 or 18 AAC 50.502, the permittee, owner, or operator will be invoiced for and 

shall pay a nonrefundable one-time fee as follows:

(1) for department intake and processing of an excess emission report or permit 

deviation report submitted in accordance with a stationary source’s permit, a fee of $20;
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(2) for a fee review under 18 AAC 15.190, a fee of $110; the department will 

waive the fee charged under this paragraph if the outcome of the fee review is a reduction of 50 

percent or more in the amount of the disputed fee.

(f) The permittee, owner, or operator of a stationary source who requests an owner 

requested limit (ORL) under 18 AAC 50.225 or a preapproved emission limit under 18 AAC 

50.230 must pay the following fees:

(1) for an ORL,

(A) a one-time administrative fee of $2,168, to be paid before the 

department takes action on any request received; and

(B) an annual compliance review fee of $319, unless the permittee, 

owner, or operator is required to pay an annual compliance review fee under (a) or (d) of 

this section.

(2) for a preapproved emission limit for diesel engines under 18 AAC 50.230(c) 

or a preapproved emission limit for a gasoline distribution facility considered under 18 AAC 

50.230(d) to be a bulk gasoline plant, 

(A) a one-time administrative fee of $88, to be paid before the limit takes 

effect; and

(B) an annual compliance review fee of $95.

(g) The fee for department review of and routine compliance services for a request for 

open burning under 18 AAC 50.065 is $230. If the department determines that smoke incursion 

into a public place, into an airport, into a Class I area, into any nonattainment area, or into any

maintenance area is likely, all additional costs will be charged in accordance with (h) of this 

section.
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(h) Unless the designated regulatory service is subject to a fixed fee set out in (a) – (g) of 

this section, or to the terms of a negotiated service agreement under AS 37.10.052(b) and 

18 AAC 50.403, the permittee, owner, or operator shall pay an hourly permit administration fee 

for a designated regulatory service. The department will calculate the total amount due under this 

subsection by multiplying the number of hours spent to provide the designated regulatory service 

by the hourly rate of salary and benefits of the department employees who provided the 

designated regulatory service, and by adding to the resulting amount any other direct costs. 

(i) In this section,

(1) "airport" has the meaning given in AS 02.25.100;

(2) "large power plant"

(A) means a Title V source

(i) the purpose of which is to generate electricity, and that contains 

a combustion turbine electric generator or natural gas-fired steam plant; or

(ii) that has a potential to emit a total greater than or equal to 500 

tons per year of regulated air pollutants in the aggregate, and that contains 

emission units used to provide power to a mine or military base; and

(B) does not include a Title V source that operates under the department's 

general permit for diesel engines;

(3) "oil-and-gas source" means a Title V source not described in (2)(A) of this 

subsection, the purpose of which is the exploration for, extraction of, processing of, 

transportation of, or storage of crude oil, natural gas, or other petroleum products, or related 

activities; "oil-and-gas source" does not include a petroleum refinery or liquefied natural gas 

(LNG) plant;
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(4) "public place" has the meaning given in AS 46.06.150;

(5) "small power plant"

(A) means a Title V source not described in (2)(A) or (3) of this 

subsection

(i) the purpose of which is to generate electricity, and that

contains one or more diesel-fired internal combustion engines to generate power

(ii) the purpose of which is seafood processing; or

(iii) that has a potential to emit a total less than 500 tons per year 

of regulated air pollutants in the aggregate, and that contains emission units used 

to provide power to a mine or military base; and

(B) does not include a Title V source that operates under the department's 

general permit for diesel engines. 

(6) “annual permit fee” means the fee charged for services related to the renewal 

of a Title V permit and any administrative amendments.

(7) “annual compliance review fee” means the fee charged for routine 

compliance services, review of source test plans, and review of source test results.

(8) “coal-fired plant” means a Title V source that contains a coal-fired boiler and 

has a potential to emit a total greater than or equal to 500 tons per year of regulated air pollutants 

in the aggregate.

(9) “routine compliance services” means all direct services and costs necessary to 

accomplish the regularly scheduled onsite or offsite review of a stationary source’s emission 

units, records, and self-monitoring reports including annual compliance certifications (ACCs), 

facility operating reports (FORs), source test plans, source test results, notices and reports, 
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federal emission standard periodic reports and notices to determine the source’s compliance with 

applicable requirements. “Routine compliance services” does not include the unscheduled 

review of evidence in support of a complaint investigation or a compliance action.

(Eff. 1/18/97, Register 141; am 6/21/98, Register 146; am 10/1/2004, Register 171; am 

12/1/2004, Register 172; am 1/29/2005, Register 173; am 12/30/2007, Register 184; am 

7/25/2008, Register 187; am 7/1/2010, Register 194; am 9/14/2012, Register 203; am 

__/__/____, Register ___)

Authority: AS 37.10.050 AS 44.46.025 AS 46.14.140

AS 37.10.052 AS 46.03.020 AS 46.14.240

AS 37.10.058

The lead in language of 18 AAC 50.403 is amended to read:

18 AAC 50.403. Negotiated service agreements. If a fixed permit administration fee 

has not been set under 18 AAC 50.400(a) – (g) [18 AAC 50.400(a) - (i)] for a designated 

regulatory service, the permittee, owner, or operator of a stationary source may request a

negotiated service agreement under AS 37.10.052(b) for that designated regulatory service. 

Unless a completed negotiated service agreement specifies otherwise, all work done by the 

department to develop the negotiated service agreement is a designated regulatory service 

billed in accordance with 18 AAC 50.400(h). [IF REQUESTING A NEGOTIATED 

SERVICE AGREEMENT FOR ONE OR MORE OF THE FOLLOWING DESIGNATED 

REGULATORY SERVICES, THE PERMITTEE, OWNER, OR OPERATOR MUST SUBMIT 

A RETAINER PAYMENT OF $5,300 PER DESIGNATED REGULATORY SERVICE 

BEFORE THE DEPARTMENT BEGINS NEGOTIATIONS
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(1) A MINOR PERMIT UNDER 18 AAC 50.502(c)(2)(B);

(2) A PSD PERMIT UNDER 18 AAC 50.306 FOR A NEW MAJOR 

STATIONARY SOURCE;

(3) A MAJOR MODIFICATION OF A MAJOR STATIONARY SOURCE;

(4) A CONSTRUCTION PERMIT UNDER 18 AAC 50.302 FOR A NEW 

STATIONARY SOURCE OR MODIFICATION SUBJECT TO THE CONSTRUCTION 

PERMITTING REQUIREMENTS OF 42 U.S.C. 7412(i) (CLEAN AIR ACT SEC. 112(i));

(5) A PERMIT FOR THE CONSTRUCTION OF A NEW STATIONARY 

SOURCE OR ADDITION OF AN EMISSION UNIT AT A STATIONARY SOURCE, IF THE 

STATIONARY SOURCE IS

(A) IN A SULFUR DIOXIDE SPECIAL PROTECTION AREA 

ESTABLISHED UNDER 18 AAC 50.025(c);

(B) IN THE NIKISKI INDUSTRIAL AREA; OR

(C) ON AN OFFSHORE PLATFORM;

(6) A MAJOR MODIFICATION OF A MAJOR STATIONARY SOURCE, 

FOR WHICH A LIMIT IS REQUESTED SPECIFICALLY TO AVOID REVIEW UNDER 

18 AAC 50.306;

(7) A MINOR PERMIT UNDER 18 AAC 50.508(4);

(8) THE RENEWAL OF A TITLE V PERMIT FOR A TITLE V SOURCE FOR 

WHICH FEES ARE NOT ESTABLISHED UNDER 18 AAC 50.400(a);

(9) A NOTICE OF MACT APPROVAL UNDER 18 AAC 50.321.] (Eff.

1/29/2005, Register 173; am 12/3/2005, Register 176; am 7/1/2010, Register 194; am 

__/__/____, Register ___)
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Authority: AS 37.10.050 AS 44.46.025 AS 46.14.140

AS 37.10.052 AS 46.03.020 AS 46.14.240

AS 37.10.058

18 AAC 50.405 is repealed:

18 AAC 50.405. Repealed __/__/___ [TRANSITION PROCESS FOR PERMIT 

FEES. FOR A PERMIT ISSUED UNDER THIS CHAPTER, IF THE APPLICANT HAS 

SUBMITTED AN APPLICATION BEFORE JANUARY 29, 2005 AND THE DEPARTMENT 

HAS NOT YET WORKED ON THAT PERMIT APPLICATION, AT THE REQUEST OF THE 

APPLICANT, THE DEPARTMENT WILL PROCESS THE PERMIT UNDER THE 

PROVISIONS OF 18 AAC 50.400 - 18 AAC 50.499 IN EFFECT ON JANUARY 29, 2005. 

ANY RETAINER SUBMITTED BEFORE JANUARY 29, 2005 WILL BE APPLIED TO ANY 

FEES EFFECTIVE AFTER JANUARY 29, 2005.] (Eff. 1/29/2005, Register 173; am 

__/__/____, Register ___)

18 AAC 50.410(b) is amended to read:

(b) Except as provided in (c), (f), and (g) of this section, emission fees will be assessed 

as follows:

(1) for stationary sources required to obtain an operating permit under 

AS 46.14.130(b), an emission fee rate of $42.95 [$28.57] per ton; of that per ton amount, $33.16
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[$19.32] will be allocated to the clean air protection fund under AS 46.14.260, and $9.79 [$9.25]

will be allocated to the emission control permit receipts account under AS 46.14.265; 

(2) for stationary sources not subject to (1)(A) of this subsection but otherwise 

required to obtain a permit under AS 46.14.130, the emission fee rate of $9.79 [$9.25] per ton, 

which will be allocated to the emissions control permit receipts account under 

AS 46.14.265.

...

18 AAC 50.410(f) is repealed:

(f) Repealed __/__/____[FOR STATIONARY SOURCES REQUIRED TO OBTAIN A 

MINOR PERMIT IN ACCORDANCE WITH 18 AAC 50.502(C) OR 18 AAC 50.508(6) BUT 

NOT REQUIRED TO OBTAIN AN OPERATING PERMIT UNDER AS 46.14.130(B), THE 

PERMITTEE SHALL PAY A ONE-TIME EMISSION FEE ASSESSED FOR THE STATE 

FISCAL YEAR FOLLOWING THE STATE FISCAL YEAR IN WHICH THE PERMIT WAS 

ISSUED. THE EMISSION FEE IS BASED ON ASSESSABLE EMISSIONS FOR THE 

STATE FISCAL YEAR BEING ASSESSED AND IS BILLED IN JULY OF THAT YEAR. 

THE ENTIRE FEE IS ALLOCATED TO THE EMISSION CONTROL PERMIT RECEIPTS 

ACCOUNT UNDER AS 46.14.265. THE ANNUAL EMISSION FEE RATE IS $9.25 PER 

TON.]

...

18 AAC 50.410(g)(3) is amended to read:

(3) at the following rates for a single portable oil and gas operation for which the
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owner or operator submits a new application or notification for operation under the general 

minor permit on or after December 3, 2005:

(A) for a portable oil and gas operation north of 69 degrees, 30 minutes 

North latitude,

(i) $1,414 [$1,336] for operation at one or more ice pads during a 

winter drilling season;

(ii) $4,241 [$4,008] for operation during a state fiscal year at one 

or more sites not including a seasonal ice pad;

(B) for a portable oil and gas operation outside the area described in (A) 

of this paragraph,

(i) $1,318 [$1,245] for drilling five or fewer wells under the same 

application or notification during a state fiscal year;

(ii) $2,635 [$2,490] for drilling no fewer than six and no more 

than 10 wells under the same application or notification during a state fiscal year;

(iii) $3,953 [$3,735] for drilling 11 or more wells under the same 

application or notification during a state fiscal year.

(Eff. 1/18/97, Register 141; am 5/3/2002, Register 162; am 10/16/2003, Register 168; am 

10/1/2004, Register 171; am 1/29/2005, Register 173; am 12/3/2005, Register 176; am 

12/14/2006, Register 180; am 6/18/2009, Register 190; am 7/1/2010, Register 194; am 

__/__/____, Register ___)

Authority: AS 44.46.025 AS 46.14.140 AS 46.14.250

AS 46.03.020
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The lead in language of 18 AAC 50.420(a) is amended to read:

18 AAC 50.420. Billing procedures. (a) The department will send supplemental 

bills for emission fees and fixed permit administration fees after {effective date of 

regulations} to bill or credit for the prorated difference between bills sent for FY16 prior to 

{effective date of these regulations} and the rates in effect as of {effective date of regulations}.

The department will bill emission fees assessed under 18 AAC 50.410(a) on or before July 1 of 

each year in a manner consistent with AS 46.14.250. The department will bill fixed permit 

administration fees under AS 46.14.240 and 18 AAC 50.400(a) – (g) [18 AAC 50.400(a) - (i)]

...

The lead in language of 18 AAC 50.420(b) is amended to read:

(b) On or before the 15th of each month, the department will bill permit administration 

fees for designated regulatory services rendered during the preceding month under 18 AAC 

50.400(h) [18 AAC 50.400(j). HOWEVER, FOR REVIEWS OF EXCESS EMISSION 

REPORTS, THE DEPARTMENT WILL BILL ON A SEMIANNUAL BASIS IF REQUESTED 

IN WRITING BY THE PERSON REQUIRED TO PAY THE FEE.]

...

18 AAC 50.420(f)(2) is amended to read:

(2) decreases the stationary source's assessable emissions through a permit 

revision may request in writing a prorated refund or credit to the stationary source's fee account 

toward future fees.

...
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The lead in language of 18 AAC 50.420(g) is amended to read:

(g) The owner, operator, or permittee who terminates operations or whose permit has 

lapsed or is terminated by the department may request in writing a refund calculated by the 

department for fees collected in excess of the amount due for the stationary sources' actual 

emissions for the current fiscal year.

...

The lead in language of 18 AAC 50.420(h) is amended to read:

(h) Unless the owner, operator, or permittee requests otherwise, an invoice for emission 

fees or permit administration fees will be sent to the last known address of the stationary source 

that is subject to the fee. In an invoice, the department will include an itemized list of charges 

and credits for the billing period and a calculation of total credit balance or amount due on the 

account. For permit administration fees for designated regulatory services under 18 AAC 

50.400(h) [18 AAC 50.400(j)], the department will also include as part of the itemized list the

...

18 AAC 50.420(h)(3) is amended to read:

(3) time spent on the task on that date and the charge for the task, determined 

under 18 AAC 50.400(h) [18 AAC 50.400(j)]. (Eff. 1/18/97, Register 141; am 10/16/2003, 

Register 168; am 10/1/2004, Register 171; am 1/29/2005, Register 173; am 7/1/2010, Register 

194; am __/__/____, Register ___)

Authority: AS 44.46.025 AS 46.14.140 AS 46.14.250

AS 46.03.020 AS 46.14.240 AS 46.14.255