South Coast A ir Q uality M anagement D istrict

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 . The se 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 follow ing 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 chlorid e; 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 REgion al CLean Air Incentives Market (RECLAIM) began. RECLAIM, a market incentive air pollution reduction program for nitrogen oxides (NO x ) and sulfur oxides (SO x ), provides greater certainty in meeting public health standards while allowing industry to seek th e most cost

effective solution to reduce their emissions. Major stationary sources with NO x and SO x emissions 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 20 02, 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 SO x RECLAIM alloc ations reductions starting in compliance year 2013 and each year through

2019 after which SO x allocations will remain at the same level as 2019.

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

SC AQMD’s compliance, planning, rule making, monitoring, testing, source education, civil litigation cases, and stationary and area source research projects.

An nual Operating Permit Renewal Fees

The Lewis

- Presley Clean Air Act requires the SC AQMD to have an annual permit renewal program.

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

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

established in SC AQMD Rule 301. Along with annual operating emissions fees, annual operating permit renewal fees are intended to recover the costs of programs such as SC AQMD’s complian ce 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 SC AQMD uses to ensure that equipment in SC AQMD's jurisdictional boundaries are in compliance with SC AQMD Rules and Regulations. Permit processing f ees support the permit processing program . T he 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 partia lly 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, R ule 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 t o permits.

Source Test/Analysis Fees

Revenue in this category includes fees for source tests, test protocol reviews, continuous emissions monitoring systems (CEMS) evaluations and c ertifications, and laboratory sample analyses. This revenue is associated with testing of sources within SC AQMD’s jurisdiction. The revenue recovers a portion of the costs of performing certain compliance tests and analyses.

Hea ring 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 SC AQMD to assess and collect fees from facilities that emit toxic compounds. Fees collected are used to recover state and SC AQMD 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.