South Coast Air Quality Management District

Stationary Source Revenue Descriptions

Annual Operating Emissions Fees

This program was initiated in January 1978. All permitted facilities pay a flat fee for up to four tons of 

emissions. In addition to the flat fee, facilities that emit four tons or greater (from both permitted 

and unpermitted equipment) of any organic gases, specific organics, nitrogen oxides, sulfur oxides, or 

particulate matter, or 100 tons per year or greater of carbon monoxide, also pay fees based on the 

facility’s total emissions. These facilities pay for emissions from permitted equipment as well as 

emissions from unpermitted equipment and processes which are regulated, but for which permits are 

not required, such as solvent use. In addition, a fee-per-pound is assessed on the following toxic air 

contaminants and ozone depleters: ammonia; asbestos; benzene; cadmium; carbon tetrachloride; 

chlorinated dioxins and dibenzofurans; ethylene dibromide; ethylene dichloride; ethylene oxide; 

formaldehyde; hexavalent chromium; methylene chloride; nickel; perchloroethylene; 1,3-butadiene; 

inorganic arsenic; beryllium; polynuclear aromatic hydrocarbons (PAHs); vinyl chloride; lead; 1,4-

dioxane; trichloroethylene; chlorofluorocarbons (CFCs); and 1,1,1-trichloroethane.

On January 1, 1994 the REgional CLean Air Incentives Market (RECLAIM) began. RECLAIM, a market 

incentive air pollution reduction program for nitrogen oxides (NOx) and sulfur oxides (SOx), provides 

greater certainty in meeting public health standards while allowing industry to seek the most costeffective solution to reduce their emissions. Major stationary sources with NOx

and SOxemissions 

generally greater than four tons per year are a part of RECLAIM. These facilities receive an emissions 

cap for RECLAIM pollutants and receive a specified annual rate of reduction. The emissions cap less 

the accumulated annual rates of reduction is expressed as RECLAIM Trading Credits (RTCs); an RTC is 

a limited authorization to emit a RECLAIM pollutant at a facility. Each RTC has a denomination of one 

pound and a term of one year. A RECLAIM facility pays an emissions-based fee on RTCs used. The 

holder of unused RTCs may transfer or sell them to another party to be used within the specified 

term of the RTC. The RECLAIM allocations rule, Rule 2002, was amended in 2005, and beginning with 

compliance year 2007, NOx RECLAIM were reduced each year through 2011 after which NOx 

allocations will remain at the same level as 2011. Rule 2002 was again amended in 2010 resulting in 

further SOx RECLAIM allocations reductions starting in compliance year 2013 and each year through 

2019 after which SOxallocations will remain at the same level as 2019.

Along with annual operating permit renewal fees, emissions fees are intended to recover the costs of 

SCAQMD’s compliance, planning, rule making, monitoring, testing, source education, civil litigation 

cases, and stationary and area source research projects.

Annual Operating Permit Renewal Fees

The Lewis-Presley Clean Air Act requires the SCAQMD to have an annual permit renewal program. 

The SCAQMD initiated this program in February 1977. This program requires that all active permits 

be renewed on an annual basis upon payment of annual renewal fees. The annual renewal rates are 

established in SCAQMD Rule 301. Along with annual operating emissions fees, annual operating 

permit renewal fees are intended to recover the costs of programs such as SCAQMD’s compliance 

program, planning, rule making, monitoring, testing, source education, civil litigation cases, and 

stationary and area source research projects.
Permit Processing Fees

Permits are the vehicles the SCAQMD uses to ensure that equipment in SCAQMD's jurisdictional 

boundaries are in compliance with SCAQMD Rules and Regulations. Permit processing fees support 

the permit processing program. The fee rate schedule for the different equipment categories are 

based on the average time it takes to process and issue a permit. Each applicant, at the time of filing, 

pays a permit processing fee which partially recovers the costs for normal evaluation of the 

application and issuance of the permit. This revenue category also includes fees charged to partially 

recover the costs of evaluation of plans, including but not limited to Rule 403 dust control plans, Rule 

1118 flare monitoring plans, and Rule 1113 architectural coating plans. The permit processing fees 

also cover the administration cost to process Change of Operator applications, applications for 

Emission Reduction Credits, and Administrative Changes to permits.

Source Test/Analysis Fees

Revenue in this category includes fees for source tests, test protocol reviews, continuous emissions 

monitoring systems (CEMS) evaluations and certifications, and laboratory sample analyses. This 

revenue is associated with testing of sources within SCAQMD’s jurisdiction. The revenue recovers a 

portion of the costs of performing certain compliance tests and analyses.

Hearing Board

The revenue from this source results from filing of petitions for variances and appeals, excess 

emissions fees, and daily appearance fees. The revenue recovers a portion of the costs associated 

with these activities.

Toxic "Hot Spots"

Health and Safety Code Section 44380 requires the SCAQMD to assess and collect fees from facilities 

that emit toxic compounds. Fees collected are used to recover state and SCAQMD costs to collect 

and analyze data regarding air toxics and their effect on the public. Costs recovered include a portion 

of the administrative, outreach, plan processing, and enforcement costs to implement this program.