HOUSE BILL No. 5385

November 1, 2005, Introduced by Reps. Sheen, Pastor, Taub, Booher, Garfield, Stahl, Drolet, Vander Veen, Gosselin, Rocca, Baxter, Huizenga, Hildenbrand, Hoogendyk, Hune, Palmer, Mortimer, Acciavatti, Nitz, Marleau, LaJoy, Caul, Green, Jones, Hansen, Newell, Pearce, Elsenheimer, Meyer, Gaffney, Amos, Kahn, Moore, Shaffer, Robertson, Hummel, Moolenaar, Sheltrown and Brown and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 5505, 5506, and 5522 (MCL 324.5505, 324.5506,

 

and 324.5522), section 5522 as amended by 2001 PA 49, and by adding

 

section 5506a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5505. (1) Except as provided in subsection (4), a person

 

shall not install, construct, reconstruct, relocate, alter, or

 

modify any process or process equipment without first obtaining

 

from the department a permit to install, or a permit to operate

 

authorized pursuant to rules promulgated under subsection (6) if

 

applicable, authorizing the conduct or activity.

 


     (2) The department shall promulgate rules to establish a

 

permit to install  permit-to-install program to be administered by

 

the department. Except as provided in subsections (4) and (5), the  

 

permit to install  permit-to-install program is applicable to each

 

new or modified process or process equipment that emits or may emit

 

an air contaminant.

 

     (3) A permit to install may authorize the trial operation of a

 

process or process equipment to demonstrate that the process or

 

process equipment is operating in compliance with the permit to

 

install issued under this section.

 

     (4) The department may promulgate rules to provide for the

 

issuance of general permits and to exempt certain sources,

 

processes, or process equipment or certain modifications to a

 

source, process, or process equipment from the requirement to

 

obtain a permit to install or a permit to operate authorized

 

pursuant to rules promulgated under subsection (6). However, the

 

department shall not exempt any new source or modification that

 

would meet the definition of a major source or major modification

 

under parts C and D of title I of the clean air act,  chapter 360,

 

91 Stat. 731, 42 U.S.C. 7470 to 7479, 7491 to 7492, 7501 to 7509a,

 

and 7511  42 USC 7470 to 7515.

 

     (5) The department may issue a permit to install, a general

 

permit, or a permit to operate authorized under rules promulgated

 

under subsection (6) if applicable, that authorizes installation,

 

operation, or trial operation, as applicable, of a source, process,

 

or process equipment at numerous temporary locations. Such a permit

 

shall include terms and conditions necessary to assure compliance

 


with all applicable requirements of this part, the rules

 

promulgated under this part, and the clean air act, including those

 

necessary to assure compliance with all applicable ambient air

 

standards, emission limits, and increment and visibility

 

requirements pursuant to part C of title I of the clean air act,  

 

chapter 360, 91 Stat. 731, 42 U.S.C.  7470 to  7479 and 7491  42

 

USC 7470 to 7492, at each location, and shall require the owner or

 

operator of the process, source, or process equipment to notify the

 

department at least 10 days in advance of each change in location.

 

     (6) The department may promulgate rules to establish a program

 

that authorizes issuance of nonrenewable permits to operate for

 

sources, processes, or process equipment that are not subject to

 

the requirement to obtain a renewable operating permit pursuant to

 

section 5506.

 

     (7) The failure of the department to act on an

 

administratively and technically complete application for a permit

 

to install, a general permit, or a permit to operate authorized

 

under rules promulgated under subsection (6), in accordance with a

 

time requirement established pursuant to this part, rules

 

promulgated under this part, or the clean air act may be treated as

 

a final permit action solely for the purposes of obtaining judicial

 

review in a court of competent jurisdiction to require that action

 

be taken by the department on the application without additional

 

delay.

 

     (8) Any person may appeal the issuance or denial by the

 

department of a permit to install, a general permit, or a permit to

 

operate authorized in rules promulgated under subsection (6), for a

 


new source in accordance with section 631 of the revised judicature

 

act of 1961,  Act No. 236 of the Public Acts of 1961, being section

 

600.631 of the Michigan Compiled Laws  1961 PA 236, MCL 600.631.

 

Petitions for review shall be the exclusive means to obtain

 

judicial review of such a permit and shall be filed within 90 days

 

after the final permit action, except that a petition may be filed

 

after that deadline  only  if the petition is based solely on

 

grounds arising after the deadline for judicial review.  Such a  

 

The petition shall be filed no later than 90 days after the new

 

grounds for review arise. Appeals of permit actions for existing

 

sources shall be in accordance with section 5506(14).

 

     (9) The processing of a permit application under this section

 

is subject to section 5506a.

 

     Sec. 5506. (1) After the date established pursuant to

 

subsections (3) and (4)(n), if an application for an operating

 

permit is required to be submitted, a person shall not operate a

 

source that is required to obtain an operating permit under  

 

section 502a of title V of the clean air act,  chapter 360, 104

 

Stat. 2641,  42  U.S.C.  USC 7661a, and  which is thereby  that is

 

subject to the requirements of this section except in compliance

 

with an operating permit issued by the department. A permit issued

 

under this section does not convey a property right or an exclusive

 

privilege.

 

     (2) If a person who owns or operates a source has submitted a

 

timely and administratively complete application for an operating

 

permit, including an application for renewal of an operating

 

permit, but final action has not been taken on the application, the

 


source's failure to have an operating permit is not a violation of

 

subsection (1) unless the delay in final action is due to the

 

failure of the person owning or operating the source to submit

 

information required or requested to process the application. A

 

source required to have a permit under this section is not in

 

violation of subsection (1) before the date on which the source is

 

required to submit an application pursuant to subsections (3) and

 

(4)(n). Except as otherwise provided in subsection (5), expiration

 

of an operating permit terminates a person's right to operate a

 

source. This subsection does not waive an applicable requirement to

 

obtain a permit under section 5505.

 

     (3) A person who owns or operates a source required to have an

 

operating permit  pursuant to  under this section shall submit to

 

the department within 12 months after the date on which the source

 

becomes subject to the requirement to obtain a permit under

 

subsection (1), or on an earlier date specified by rule, a

 

compliance plan and an administratively complete application for an

 

operating permit signed by a responsible official, who shall

 

certify the accuracy of the information submitted.  The department

 

shall approve or disapprove a timely and administratively complete

 

application, and shall issue or deny the operating permit within 18

 

months after the date of receipt of the compliance plan and an

 

administratively complete operating application, except that the

 

department shall establish a phased schedule for acting on the

 

timely and administratively complete operating permit applications

 

submitted within the first full year after the operating permit

 

program becomes effective. The schedule shall assure that at least

 


1/3 of the applications will be acted on by the department annually

 

over a period not to exceed 3 years after the operating permit

 

program becomes effective.  The processing of a permit application

 

under this section is subject to section 5506a.

 

     (4) The department shall promulgate rules to establish an

 

operating permit program required under title V to be administered

 

by the department. This permit program shall include all of the

 

following and, at a minimum, shall be consistent with the

 

requirements of title V:

 

     (a) Provisions defining the categories of sources that are

 

subject to the operating permit requirements of this section.

 

Operating permits under this section are not required for any

 

source category that is not required to obtain an operating permit

 

under  section 502(a) of the clean air act, title V of chapter 360,

 

104 Stat. 2641,  42  U.S.C.   USC 7661a.

 

     (b) Requirements for operating permit applications, including

 

standard application forms, the minimum information that must be

 

submitted with an administratively complete application, and

 

criteria for determining in a timely fashion as provided for in

 

section 5506a the administrative completeness of an application.

 

     (c) A requirement that each operating permit application

 

include a compliance plan describing how the source will comply

 

with all applicable requirements of this part, rules promulgated

 

under this part, and the clean air act.

 

     (d) Provisions for inspection, entry, monitoring, record

 

keeping, and reporting applicable to each operating permit issued

 

under this section.

 


     (e) Requirements and provisions for expeditiously determining

 

when applications are technically complete, for processing

 

applications.

 

     (f) Provisions for transmitting copies of each operating

 

permit application and proposed and final permits, including each

 

modification or renewal, to the administrator of the United States

 

environmental protection agency, and for notifying all other states

 

whose air quality may be affected and are contiguous to this state

 

and for providing an opportunity for those states to provide

 

written recommendations on each operating permit application and

 

proposed permit, pursuant to the requirements of  section 505(a)

 

and (d) of the clean air act, title V of chapter 360, 104 Stat.

 

2643, 42 U.S.C. 7661d  42 USC 7661d(a) and (d).

 

     (g) Provisions for issuance of operating permits and, in

 

accordance with this part and rules promulgated under this part,

 

for denial, termination, modification, revocation, renewal, and

 

revision of operating permits for cause.

 

     (h) Provisions to allow for changes within a permitted source

 

without a revision to the operating permit, if the changes are not

 

modifications under any provision of title I of the clean air act,  

 

chapter 360, 77 Stat. 392, 42 U.S.C. 7401 to 7431, 7470 to 7479,

 

7491 to 7492, 7501 to 7509a, and 7511  42 USC 7401 to 7515, and the

 

changes do not exceed the emissions allowed under the operating

 

permit, if the owner or operator of the source provides the

 

department and the administrator of the United States environmental

 

protection agency with written notification at least 7 days in

 

advance of the proposed changes. However, the department may

 


provide a different time frame for an emergency as defined in

 

section 5527. The emissions allowed under the operating permit

 

include any enforceable emission limitation, standard, or other

 

condition, including a work practice standard, determined by the

 

department to be required by an applicable requirement of this

 

part, rules promulgated under this part, or the clean air act, or

 

that establishes an emission limit or an enforceable emissions cap

 

that the source has assumed to avoid an applicable requirement of

 

this part, rules promulgated under this part, or the clean air act,

 

to which the source would otherwise be subject. These provisions

 

shall include the following:

 

     (i) Changes that contravene an express permit condition.  Such  

 

Those changes shall not include changes that would violate any

 

applicable requirement of this part, the rules promulgated under

 

this part, or the clean air act, or changes that would contravene

 

any applicable requirement for monitoring, record keeping,

 

reporting, or compliance certification.

 

     (ii) Changes that involve emissions trading if trading has been

 

approved by the administrator of the United States environmental

 

protection agency as a part of the state implementation plan.

 

     (i) Provisions to allow changes within a permitted source,

 

pursuant to 40  C.F.R.  CFR 70.4(b)(14), that are not addressed or

 

prohibited by the operating permit, if all of the following

 

criteria are met:

 

     (i) The change meets all applicable requirements of this part,

 

the rules promulgated under this part, and the clean air act and

 

does not violate any existing emission limitation, standard, or

 


other condition of the operating permit.

 

     (ii) The change does not affect any applicable requirement of

 

the acid rain program under title IV and is not a modification

 

under any provision of title I of the clean air act,  chapter 360,

 

77 Stat. 392, 42 U.S.C. 7401 to 7431, 7470 to 7479, 7491 to 7492,

 

7501 to 7509a, and 7511  42 USC 7401 to 7515.

 

     (iii) The source provides prompt written notice to the

 

department and the administrator of the United States environmental

 

protection agency, except for changes that qualify as insignificant

 

processes or activities pursuant to section 5507(2).

 

     (j) Provisions to allow changes within a permitted source,

 

pursuant to 40  C.F.R.  CFR 70.7(e)(2), that may be made

 

immediately after the source files an application with the

 

department, if all of the following criteria are met:

 

     (i) The change does not violate any applicable requirement of

 

this part, the rules promulgated under this part, or the clean air

 

act.

 

     (ii) The change does not significantly affect an existing

 

monitoring, record keeping, or reporting requirement in the

 

operating permit.

 

     (iii) The change does not require or modify a case-by-case

 

determination of an emission limitation or other standard, or a

 

source-specific determination, for temporary sources, of ambient

 

air impacts, or a visibility or increment analysis.

 

     (iv) The change does not seek to establish or modify an

 

emission limitation, standard, or other condition of the operating

 

permit that the source has assumed to avoid an applicable

 


requirement of this part, the rules promulgated under this part, or

 

the clean air act, to which the source would otherwise be subject.

 

     (v) The change is not a modification under any provision of

 

title I of the clean air act,  chapter 360, 77 Stat. 392, 42 

 

U.S.C. 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and

 

7511  42 USC 7401 to 7515.

 

     (k) Provisions for expeditiously handling administrative

 

changes within a permitted source, pursuant to 40  C.F.R.  CFR

 

70.7(d). These changes are limited to the following:

 

     (i) Correction of a typographical error.

 

     (ii) A change in the name, address, or phone number of any

 

person identified in the permit, or other similar minor

 

administrative change.

 

     (iii) A change that requires more frequent monitoring or

 

reporting by the person owning or operating the source.

 

     (iv) A change in ownership or operational control of the

 

source, if the department determines that no other change in the

 

operating permit is necessary, and if a written agreement

 

containing a specific date for transfer of operating permit

 

responsibility, coverage, and liability between the current and new

 

owners or operators has been submitted to the department.

 

     (v) Incorporation into the operating permit of the

 

requirements of a permit to install issued pursuant to section

 

5505, if the permit to install has met procedural requirements that

 

are substantially equivalent to the requirements of this section,

 

including the content of the permit, and the provisions for

 

participation by the United States environmental protection agency

 


and other affected states and participation of the public under

 

section 5511.

 

     (l) Provisions for including reasonably anticipated alternate

 

operating scenarios in an operating permit, pursuant to 40  C.F.R.  

 

CFR 70.6(a)(9).

 

     (m) Provisions to allow for the trading of emission increases

 

and decreases within a permitted source solely for the purpose of

 

complying with an enforceable emissions cap that is established in

 

the permit pursuant to 40  C.F.R. part  CFR 70.4(b)(12)(iii),

 

independent of any otherwise applicable requirements of this part,

 

the rules promulgated under this part, or the clean air act.

 

     (n) A schedule of the dates when submittal of an application

 

for an operating permit is required for the source categories

 

subject to this section and a  phased  schedule for taking final

 

action on those applications subject to section 5506a.

 

     (5) Each operating permit issued under this section shall be

 

for a fixed term not to exceed 5 years. A permit applicant shall

 

submit a timely application for renewal of an operating permit at

 

least 6 months, but not more than 18 months,  prior to  before the

 

expiration of the term of the existing operating permit. If a

 

timely and administratively complete application is submitted, but

 

the department has not approved or denied the renewal permit before

 

the expiration of the term of the existing permit, the existing

 

permit shall not expire until the renewal permit is approved or

 

denied.

 

     (6) Each operating permit issued pursuant to this section

 

shall include those enforceable emissions limitations and standards

 


applicable to the source, if any, and other conditions necessary to

 

assure compliance with the applicable requirements of this part,

 

rules promulgated under this part, and the clean air act, a

 

schedule of compliance, and a requirement that the owner or

 

operator of a source submit to the department, at least every 6

 

months, a report summarizing the results of any required

 

monitoring. Each operating permit issued pursuant to this section

 

shall also include a severability clause to ensure the continued

 

validity of the unchallenged terms and conditions of the operating

 

permit if any portion of a permit is challenged.

 

     (7) The department shall require revision of an operating

 

permit  prior to  before the expiration of the permit consistent

 

with  section 5506(4)(g)  rules promulgated under subsection

 

(4)(g), for any of the following reasons or to do any of the

 

following:

 

     (a) To incorporate new applicable emissions limitations,

 

standards, or rules promulgated under this part or regulations

 

promulgated under the clean air act, issued or promulgated after

 

the issuance of the permit, if 3 or more years remain in the term

 

of the permit. A revision shall occur as expeditiously as

 

practicable, but not later than 18 months after the promulgation of

 

the emission limitation, standard, rule, or regulation. A revision

 

is not required if the effective date of the emission limitation,

 

standard, rule, or regulation is after the expiration date of the

 

permit.

 

     (b) To incorporate new applicable standards and requirements

 

of the acid rain program under title IV into the operating permits

 


of sources affected by that program.

 

     (c) If the department determines that the permit contains a

 

material mistake; that information required by this part, rules

 

promulgated under this part, or the clean air act was omitted; or

 

that an inaccurate statement was made in establishing the emissions

 

limitations, standards, or conditions of the permit.

 

     (d) If the department determines that the permit must be

 

revised to assure compliance with the applicable requirements of

 

this part, rules promulgated under this part, or the clean air act.

 

     (8) At the request of the permit holder, a permit revision

 

under subsection (7) may be treated as a permit renewal if it

 

complies with the applicable requirements for permit renewals of

 

this part, rules promulgated under this part, and the clean air

 

act.

 

     (9) A person who owns or operates a source subject to an

 

operating permit issued pursuant to this section shall promptly

 

report to the department any deviations from the emissions

 

limitations, standards, or conditions of the permit and shall

 

annually certify to the department that the source has been and is

 

in compliance with all emissions limitations, standards, and

 

conditions of the permit, except for those deviations reported to

 

the department, during the reporting period. A responsible official

 

shall sign all reports submitted pursuant to this subsection.

 

     (10) The department shall not approve or otherwise issue any

 

operating permit for a source required to obtain an operating

 

permit pursuant to  section 502(a) of title V of the clean air act, 

 

chapter 360, 104 Stat. 2641, 42 U.S.C. 7661a  42 USC 7661a(a), if

 


the administrator of the United States environmental protection

 

agency objects to issuance of the permit in a timely manner

 

pursuant to  section 505(b) of title V of the clean air act, 

 

chapter 360, 104 Stat. 2643, 42 U.S.C. 7661d  42 USC 7661d(b).

 

     (11) Each operating permit shall contain a statement that

 

compliance with an operating permit issued in accordance with this

 

section is compliance with subsection (1). In addition, the

 

statement shall provide that compliance with the operating permit

 

is compliance with other applicable requirements of this part,

 

rules promulgated under this part, and the clean air act, as of the

 

date of permit issuance if either of the following requirements is

 

met:

 

     (a) The permit specifically includes the applicable

 

requirement.

 

     (b) The permit includes a determination that any other

 

requirements that are specifically referred to in the determination

 

are not applicable.

 

     (12) An application for an operating permit may include a

 

request that the permit include reference to specific requirements

 

of this part, rules promulgated under this part, or the clean air

 

act that the person owning or operating the source believes are not

 

applicable to the source. The operating permit shall include a

 

determination of applicability for the requirements included in the

 

request.

 

     (13) Subsection (11) does not apply to a change at a source

 

made pursuant to subsection (4)(h), (i), or (j). Subsection (11)

 

does not apply to a change in a source made pursuant to subsection

 


(4)(k) until the change is incorporated into the operating permit.

 

     (14) A person who owns or operates an existing source that is

 

required to obtain an operating permit under this section, a

 

general permit, or a permit to operate authorized under rules

 

promulgated under section 5505(6) may file a petition with the

 

department for review of the denial of his or her application for

 

such a permit, the revision of any emissions limitation, standard,

 

or condition, or a proposed revocation of his or her permit. This

 

review shall be conducted pursuant to the contested case and

 

judicial review procedures of the administrative procedures act of

 

1969,  Act No. 306 of the Public Acts of 1969, being sections

 

24.201 to 24.328 of the Michigan Compiled Laws  1969 PA 306, MCL

 

24.201 to 24.328. Any person may appeal the issuance or denial of

 

an operating permit in accordance with section 631 of the revised

 

judicature act of 1961,  Act No. 236 of the Public Acts of 1961,

 

being section 600.631 of the Michigan Compiled Laws  1961 PA 236,

 

MCL 600.631. A petition for judicial review is the exclusive means

 

of obtaining judicial review of a permit and shall be filed within

 

90 days after the final permit action.  Such a  The petition may be

 

filed after that deadline only if it is based solely on grounds

 

arising after the deadline for judicial review and if the appeal

 

does not involve applicable standards and requirements of the acid

 

rain program under title IV.  Such a  The petition shall be filed

 

within 90 days after the new grounds for review arise.

 

     (15) The failure of the department to act on a technically and

 

administratively complete application or renewal application for an

 

operating permit in accordance with a time requirement established  

 


pursuant to subsection (3)  in section 5506a and rules promulgated

 

under subsection (4)(n) is final permit action solely for the

 

purposes of obtaining judicial review in a court of competent

 

jurisdiction to require that action be taken by the department

 

without additional delay on the application or renewal application.

 

     (16) The department may, after notice and opportunity for

 

public hearing, pursuant to the requirements of section 5511, issue

 

a general permit covering numerous similar sources, processes, or

 

process equipment, or a permit that authorizes operation of a

 

source at numerous temporary locations. A general permit or a

 

permit that authorizes operation of a source at numerous temporary

 

locations shall comply with all requirements applicable to

 

operating permits pursuant to this section. A permit that

 

authorizes operation of a source at numerous temporary locations

 

shall include terms and conditions necessary to assure compliance

 

with all applicable requirements of this part, rules promulgated

 

under this part, and the clean air act, including those necessary

 

to assure compliance with all applicable ambient air standards,

 

applicable emission limits, and applicable increment and visibility

 

requirements pursuant to part C of title I of the clean air act,  

 

chapter 360, 91 Stat. 731, 42 U.S.C. 7470 to 7479 and 7491  42 USC

 

7470 to 7492, at each authorized location and shall require the

 

owner or operator of the source to notify the department at least

 

10 days in advance of each change in location. A source covered by

 

a general permit is not relieved from the obligation to file an

 

application for a permit pursuant to subsections (3) and (5).

 

     (17) As used in this section, "technically complete" means,

 


for the purposes of an application for an operating permit required

 

by this section, all of the information required for an

 

administratively complete application and any other specific

 

information requested by the department that may be necessary to

 

implement and enforce all applicable requirements of this part, the

 

rules promulgated under this part, or the clean air act, or to

 

determine the applicability of those requirements. An application

 

is not technically complete if it omits information needed to

 

determine the applicability of any lawful requirement or to enforce

 

any lawful requirement or any information necessary to evaluate the

 

amount of the annual air quality fee for the source.

 

     Sec. 5506a. (1) This section applies to the processing of

 

applications for new permits or the renewal of existing permits

 

required under this part unless the department and the applicant

 

agree in writing to alternate provisions.

 

     (2) The department shall determine whether an application for

 

a major source is administratively complete within 10 days after

 

the receipt of the application. If the department finds that the

 

application is not complete, the department shall notify the

 

applicant in writing. If the application is resubmitted, the

 

department has 5 business days or the remaining days, if any, of

 

the original 10-day period, whichever is greater, to determine if

 

the resubmitted application is administratively complete. If the

 

department does not determine whether an application is

 

administratively complete within the time provided under this

 

subsection, the application shall be considered to be

 

administratively complete.

 


     (3) Within 120 days after receipt of an administratively

 

complete application and any other required documents for a new

 

permit or a renewal of a permit for a major source, the department

 

shall determine whether to grant or deny the permit. The department

 

shall notify the applicant of the decision in writing.

 

     (4) Within 60 days of receipt of an administratively complete

 

application and any other required documents for a new permit or a

 

renewal of a permit for a minor source, the department shall

 

process the application and make a determination to grant or deny

 

the permit. The department shall notify the applicant of the

 

decision in writing.

 

     (5) If the department fails to process an application and make

 

a determination to grant or deny the permit within the time

 

required under subsection (3) or (4), as applicable, the department

 

shall return to the applicant the application fee submitted under

 

section 5522 and the applicant shall not be subject to an

 

application fee and shall receive a 15% annual discount on an

 

annual permit fee required for a permit issued based on that

 

application.

 

     (6) The department shall arrange for not less than 35% of the

 

applications for permits to install and not less than 35% of the

 

applications for renewable operating permits to be processed by

 

private contractors operating in this state.  A private contractor

 

is not eligible to be awarded the processing of more than 1/3 of

 

the applications for permits to install or more than 1/3 of the

 

applications for renewable operating permits that are awarded to

 

private contractors under this subsection. A private contractor is

 


subject to the same time limits as provided under subsections (3)

 

and (4), commencing upon its receipt of the application. The

 

private contractor shall report to the department and the applicant

 

its findings and recommendations, in writing. The department shall

 

approve or deny the application within 30 days based on the private

 

contractor's findings and recommendations. A determination under

 

this subsection is subject to the same review and appeals as if the

 

determination were made by the department.      (7) A person shall

 

not serve as a private contractor under subsection (6) unless the

 

person has been certified as competent by the department. A private

 

contractor shall not process an application from any applicant with

 

which the private contractor has or has had any business

 

relationship within the past 3 years. A private contractor shall be

 

paid a reasonable fee for its permit processing from the fees

 

collected under this part. The department shall promulgate rules to

 

implement this subsection.

 

     Sec. 5522. (1) For the state fiscal year beginning October 1,

 

2001, and continuing until September 30, 2005, the owner or

 

operator of each fee-subject facility shall pay air quality fees as

 

required and calculated under this section. The department may levy

 

and collect an annual air quality fee from the owner or operator of

 

each fee-subject facility in this state. The legislature intends

 

that the fees required under this section meet the minimum

 

requirements of the clean air act and that this expressly stated

 

fee system serve as a limitation on the amount of fees imposed

 

under this part on the owners or operators of fee-subject

 

facilities in this state.

 


     (2) The annual air quality fee shall be calculated for each

 

fee-subject facility, according to the following procedure:

 

     (a) For category I facilities, the annual air quality fee

 

shall be the sum of a facility charge and an emissions charge as

 

specified in subdivision (e). The facility charge shall be

 

$4,485.00.

 

     (b) For category II facilities, the annual air quality fee

 

shall be the sum of a facility charge and an emissions charge as

 

specified in subdivision (e). The facility charge shall be

 

$1,795.00.

 

     (c) For category III facilities, the annual air quality fee

 

shall be $250.00.

 

     (d) For municipal electric generating facilities that are

 

category I facilities and that emit more than 450 tons but less

 

than 18,000 tons of fee-subject air pollutants, the annual air

 

quality fee shall be the following amount, based on the number of

 

tons of fee-subject air pollutants emitted:

 

     (i) More than 450 tons but less than 4,000 tons, $24,816.00.

 

     (ii) At least 4,000 tons but not more than 5,300 tons,

 

$24,816.00 plus $45.25 per ton of fee-subject air pollutant in

 

excess of 4,000 tons.

 

     (iii) More than 5,300 tons but not more than 12,000 tons,

 

$85,045.00.

 

     (iv) More than 12,000 tons but less than 18,000 tons,

 

$159,459.00.

 

     (e) The emissions charge for category I and category II

 

facilities shall equal the emission charge rate of $45.25,

 


multiplied by the actual tons of fee-subject air pollutants

 

emitted. A pollutant that qualifies as a fee-subject air pollutant

 

under more than 1 class shall be charged only once. The actual tons

 

of fee-subject air pollutants emitted is considered to be the sum

 

of all fee-subject air pollutants emitted at the fee-subject

 

facility for the calendar year 2 years preceding the year of

 

billing, but not more than the lesser of the following:

 

     (i) 4,000 tons.

 

     (ii) 1,000 tons per pollutant, if the sum of all fee-subject

 

air pollutants except carbon monoxide emitted at the fee-subject

 

facility is less than 4,000 tons.

 

     (3) The auditor general shall conduct a biennial audit of the

 

federally mandated operating permit program required in title V.

 

The audit shall include the auditor general's recommendation

 

regarding the sufficiency of the fees required under subsection (2)

 

to meet the minimum requirements of the clean air act.

 

     (4) After January 1, but before January 15 of each year

 

beginning in 1995, the department shall notify the owner or

 

operator of each fee-subject facility of its assessed annual air

 

quality fee. Payment is due within 90 calendar days of the mailing

 

date of the air quality fee notification. If an assessed fee is

 

challenged under subsection (6), payment is due within 90 calendar

 

days of the mailing date of the air quality fee notification or

 

within 30 days of receipt of a revised fee or statement supporting

 

the original fee, whichever is later. The department shall deposit

 

all fees collected under this section to the credit of the fund.

 

     (5) If the owner or operator of a fee-subject facility fails

 


to submit the amount due within the time period specified in

 

subsection (4), the department shall assess the owner or operator a

 

penalty of 5% of the amount of the unpaid fee for each month that

 

the payment is overdue up to a maximum penalty of 25% of the total

 

fee owed.

 

     (6) If the owner or operator of a fee-subject facility desires

 

to challenge its assessed fee, the owner or operator shall submit

 

the challenge in writing to the department. The department shall

 

not process the challenge unless it is received by the department

 

within 45 calendar days of the mailing date of the air quality fee

 

notification described in subsection (4). A challenge shall

 

identify the facility and state the grounds upon which the

 

challenge is based. Within 30 calendar days of receipt of the

 

challenge, the department shall determine the validity of the

 

challenge and provide the owner with notification of a revised fee

 

or a statement setting forth the reason or reasons why the fee was

 

not revised. Payment of the challenged or revised fee is due within

 

the time frame described in subsection (4). If the owner or

 

operator of a facility desires to further challenge its assessed

 

fee, the owner or operator of the facility has an opportunity for a

 

contested case hearing as provided for under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (7) If requested by the department, by March 15 of each year,

 

or within 45 days of a request by the department, whichever is

 

later, the owner or operator of each fee-subject facility shall

 

submit information regarding the facility's previous year's

 

emissions to the department. The information shall be sufficient

 


for the department to calculate the facility's emissions for that

 

year and meet the requirements of subpart Q of 40  C.F.R.  CFR part

 

51.

 

     (8) By July 1 of each year, the department shall provide the

 

owner or operator of each fee-subject facility required to pay an

 

emission charge pursuant to this section with a copy of the

 

department's calculation of the facility emissions for the previous

 

year. Within 60 days of this notification, the owner or operator of

 

the facility may provide corrections to the department. The

 

department shall make a final determination of the emissions by

 

December 15 of that year. If the owner or operator disagrees with

 

the determination of the department, the owner or operator may

 

request a contested case hearing as provided for under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (9) By March 1 annually, the department shall prepare and

 

submit to the governor, the legislature, the  chair  chairs of the

 

standing  committee  committees of the senate and house of

 

representatives with primary responsibility for environmental

 

protection issues related to air quality, and the chairs of the

 

subcommittees of the senate and house appropriations committees

 

with primary responsibility for appropriations to the department a

 

report that details the activities of the previous fiscal year

 

funded by the fund for the department. This report shall include,

 

at a minimum, all of the following as it relates to the department:

 

     (a) The number of full-time equated positions performing title

 

V and non-title V air quality enforcement, compliance, or

 


permitting activities.

 

     (b) All of the following information related to the  permit to

 

install  permit-to-install program authorized under section 5505:

 

     (i) The number of  permit to install  permit-to-install

 

applications received by the department.

 

     (ii) The number of  permit to install  permit-to-install

 

applications for which a final action was taken by the department.

 

The number of final actions should be reported as the number of

 

applications approved, the number of applications denied, and the

 

number of applications withdrawn by the applicant.

 

     (iii) The number of permits to install approved that were

 

required to complete public participation under section 5511(3)

 

before final action and the number of permits to install approved

 

that were not required to complete public participation under

 

section 5511(3)  prior to  before final action.

 

     (iv) The average number of final permit actions per  permit to

 

install  permit-to-install reviewer full-time equivalent position.

 

     (v) The percentage and number of  permit to install  permit-

 

to-install applications which were reviewed for administrative

 

completeness within 10 days of receipt by the department.

 

     (vi) The percentage and number of  permit to install  permit-

 

to-install applications which were reviewed for technical

 

completeness within 30 days of receipt of an administratively

 

complete application by the department.

 

     (vii) The percentage and number of  permit to install  permit-

 

to-install applications submitted to the department that were

 

administratively complete as received.

 


     (viii) The percentage and number of  permit to install  permit-

 

to-install applications for which a final action was taken by the

 

department within 60 days of receipt of a technically complete

 

application for those not required to complete public participation

 

under section 5511(3)  prior to  before final action, or within 120

 

days of receipt of a technically complete application for those

 

which are required to complete public participation under section

 

5511(3)  prior to  before final action.

 

     (c) All of the following information for the renewable

 

operating permit program authorized under section 5506:

 

     (i) The number of renewable operating permit applications

 

received by the department.

 

     (ii) The number of renewable operating permit applications for

 

which a final action was taken by the department. The number of

 

final actions should be reported as the number of applications

 

approved, the number of applications denied, and the number of

 

applications withdrawn by the applicant.

 

     (iii) The percentage and number of permit applications initially

 

processed within the required time.

 

     (iv) The percentage and number of permit renewals and

 

modifications processed within the required time.

 

     (v) The number of permit applications reopened by the

 

department.

 

     (vi) The number of general permits issued by the department.

 

     (d) The number of letters of violation sent.

 

     (e) The amount of penalties collected from all consent orders

 

and judgments.

 


     (f) For each enforcement action that includes payment of a

 

penalty, a description of what corrective actions were required by

 

the enforcement action.

 

     (g) The number of inspections done on sources required to

 

obtain a permit under section 5506 and the number of inspections of

 

other sources.

 

     (h) The number of air pollution complaints received,

 

investigated, not resolved, and resolved by the department.

 

     (i) The number of contested case hearings and civil actions

 

initiated and completed, and the number of voluntary consent

 

orders, administrative penalty orders, and emergency orders entered

 

or issued, for sources required to obtain a permit under section

 

5506.

 

     (j) The amount of revenue in the fund at the end of the fiscal

 

year.

 

     (10) The report under subsection (9) shall also include the

 

amount of revenue for programs under this part received during the

 

prior fiscal year from fees, from federal funds, and from general

 

fund appropriations. Each of these amounts shall be expressed as a

 

dollar amount and as a percent of the total annual cost of programs

 

under this part.

 

     (11) The attorney general may bring an action for the

 

collection of the fees imposed under this section.

 

     (12) This section does not apply if the administrator of the

 

United States environmental protection agency determines that the

 

department is not adequately administering or enforcing the

 

renewable operating permit program and the administrator

 


promulgates and administers a renewable operating permit program

 

for this state.