Title V Fees
Title V of the Clean Air Act (CAA) and its implementing regulations in 40 CFR Part 70 require the Division of Air Pollution Control to operate a Title V Operating Permit Program. Paragraph 502(b)(3) of the CAA and 40 CFR 70.9 require the collection of fees sufficient to fully fund the program. The proposed methods for implementation and the evidence of financial adequacy to implement and operate a federally approved CAA Title V Operating Permit Program (Title V Program) are described herein.
The CAA Amendments of 1990 included many changes and substantive differences in the body of regulations that comprise the CAA. None are as far reaching in effect as the regulations that detail the procedures for an operating permit program for air contaminant sources and for assessment and collection of fees to allow the regulated sources to pay for the permitting related activities. Each permitting authority identifies, inventories, assesses, and issues permits to all affected sources. Title V fee collection must provide the means for each state air pollution program or permitting authority to fully fund Title V work efforts.
The Division of Air Pollution Control is responsible for permitting air contaminant sources in Tennessee. Upon review and acceptance of the Title V permitting program by the Environmental Protection Agency (EPA) on August 28, 1996, the Division became the State’s major source Title V permitting authority in 91 of 95 counties in Tennessee. Davidson, Hamilton, Knox and Shelby counties have local air pollution control programs that operate under Certificates of Exemption from the Tennessee Air Pollution Control Board. These agencies regulate the Title V sources within their jurisdictions that are not owned by the State of Tennessee, and their activities are not addressed in this plan. TDEC retains the permitting authority for state-owned sources in these counties.
In 2016, the Tennessee Division of Air Pollution Control (APC) initiated a stakeholder process to assist in the development of revisions to our Title V fee regulations. This stakeholder process continued through 2017, and several changes were made to the Title V fee regulations as a result. These changes included adjusting the dates annual emission fees are due (effective for fee collection year 2018); implementation of a $4,000 base fee in conjunction with the existing dollar per ton fees and $7,500 per year minimum fee (effective for fee collection year 2019); and increases in the dollar per ton fees (also effective for fee collection year 2019). Additional information about this process can be found on the Title V annual emission fee page.
In 2018, the Division is investigating the need for further revisions to Title V annual emission fees and for ways to increase non-Title V revenue. To do this, we are seeking involvement from both Title V and non-Title V stakeholders. Non-Title V annual emission fees, conditional major permit review fees, and smoke school fees have not changed since 2011. Current air pollution fees are largely based on the magnitude of emissions from permitted sources. Due to a number of factors, including tighter air quality regulations, retirement of large emitters of air pollutants, and the general trend towards cleaner-burning fuels, actual and allowable emissions from sources in Tennessee have dropped significantly in recent years and will likely continue to do so. Unfortunately, this drop in emissions has not resulted in a similar reduction in workload required of the Division. During this same period, the Division’s expenses have increased due to inflation and increases in salaries as a result of the Tennessee Excellence in Accountability Management Act (or TEAM Act) adopted by the Tennessee General Assembly in 2012. As a result, APC is projecting shortages in the revenue needed to fund Tennessee’s permitting and related programs. Therefore, the Division of Air Pollution Control is soliciting your input on how the revised fee systems should be structured.
Title V Annual Emission Fees
The Tennessee Department of Environment and Conservation has withdrawn the proposed Title V and Non-title V fee rules discussed at the September 2018 board meeting.
Be advised that the Title V annual emissions fee rules currently found on the Secretary of State’s website reflect the changes in annual emission fees that will be due in 2019 (calendar year 2018 or state fiscal year July 1, 2018 through June 30, 2019). The Division is currently collecting fees for calendar year 2017 or fiscal year July 1, 2017 through June 30, 2018, and the fee rates are different. The fee rates for calendar year 2017 or fiscal year July 1, 2017 through June 30, 2018 (fee collection year 2018) are as follows:
Minimum annual emission fee:
Allowable Emission Fee Rates:
$32.50 / Chargeable Ton of Emissions for non-EGU sources
$39.00 / Chargeable Ton of Emissions for EGU sources
Actual Emission Fee Rates:
$43.00 / Chargeable Ton of Emissions for non-EGU sources
$49.50 / Chargeable Ton of Emissions for EGU sources
Please note that a base annual emission fee of $4,000 has been established for fee collection year 2019 but this base fee does not apply for fee collection year 2018.
Title V annual emission fees are largely based on the amount of actual and allowed emissions from Title V sources. Both federal and state statutes and regulations require that the state’s Title V program be fully funded by Title V facilities. Due to a number of factors, including tighter air quality regulations, retirement of large emitters of air pollutants, and the general trend towards cleaner-burning fuels, actual and allowable emissions from sources in Tennessee have dropped significantly in recent years and will continue to do so for the next couple of years. Unfortunately, this drop in emissions does not equate to a similar reduction in the workload of the Division. As a result, APC projected a shortage in the revenue needed to fund Tennessee’s Title V program starting in fiscal year 2019, and initiated a stakeholder process in 2016 (that continued through 2017) to develop ways to address this shortfall. The resulting changes included adjusting the dates annual emission fees are due (effective for fee collection year 2018); implementation of a $4,000 base fee in conjunction with the existing dollar per ton fees and $7,500 per year minimum fee (effective for fee collection year 2019); and increases in the dollar per ton fees (also effective for fee collection year 2019). Additional information about the previous fee projects, including stakeholder involvement, can be found on the Title V annual emission fee page.
Another increase in revenue is predicted to be needed to adequately fund the Title V program in 2020 and beyond. In 2018, the Division is investigating the need for further revisions to Title V annual emission fees, and is simultaneously looking at non-Title V revenue adequacy. To do this, we are again seeking involvement from stakeholders.
Stakeholder meeting are done via WebEx webinar. Click here for instructions on how to access WebEx.
**IMPORTANT UPDATE** May 8th webinar has been postponed
Due to internal needs to complete additional analysis we are postponing this webinar to a future date. You will be contacted with the date and time for a re-scheduled webinar. Our Title V Fees Webpage will also be updated with this information.
|Date||Time||Topic||Meeting Number||Meeting Password||Materials
|April 23||1:30 pm||Title V Fee Kickoff Webinar||645 079 566
|May 8||9:30 am||Title V Fee 2nd Webinar - (postponed)|
|May 18||9:30 am||Title V Fee 2nd Webinar - (rescheduled)
||312 036 075
|June 13||1:30 pm||Title V Fee 3rd Webinar
||640 609 542
2020 - Proposed Future Rules
Analysis tool - FY2020 Title V Fee Analysis tool
Survey - Title V Fee Strawmen Options
|February 8 - APC Presentation - Fee Deadline Revisions|
|Comments from Public|
|May 11 & 15 - APC Presentation
|June 14th - Presentation to TCCI (not available)
|June 16 - APC Presentation
|Sept. 13 - APC Board Briefing Presentation
||Proposed Implemation Plan