The Clean Air Act requires each state to develop a Title V, Renewable Operating Permit (ROP) Program supported by air quality fees. An annual air quality fee program for Michigan, including the specific fee structure, was established by the legislature in 1993. On Friday November 15th, 2019 Governor Whitmer signed Senate Bill 530 into law. The bill enacts a new air fee formula developed with extensive collaboration between the Air Quality Division and stakeholder groups, including MOGA. Working with the MMA Air Quality Work Group, we were able to secure a $2 million General Fund appropriation to sufficiently fund the Title V program without unduly burdening our industry with with dramatic fee increases.
The Michigan legislation establishes the following formula for calculating the annual air quality fee for each fee-subject facility:
ANNUAL FEE = FACILITY CHARGE + EMISSIONS CHARGE
A facility charge is used in the fee formula is and based on the classification, or Category, of the facility. The categories were revised during the fee reauthorization and are as follows:
- Category A: Facilities that are "major" under Title III of the Clean Air Act (have the potential to emit 100 tons or more per year of any pollutant) and are also Electric Providers, not including municipally-owned electric generators.
- Category B: Facilities that are "major" under Title III of the Clean Air Act (have the potential to emit 100 tons or more per year of any pollutant) and are not Electric Providers, with the exception of municipally-owned electric generators with emissions over 646 tons per year.
- Category C: Facilities that are "major" under Title I of the Clean Air Act (have the potential to emit 10 tons of any one hazardous air pollutant or 25 tons of any combination of hazardous air pollutants).
- Category D: Facilities that are subject to a federal New Source Performance Standard.
- Category E: Facilities that have a Title V Opt-Out Permit.
- Category F: Facilities which are subject to a federal Maximum Available Control Technology (MACT) standard but are not "major" under Title I or Title III. Category III facilities are assessed a $250 facility charge with no emissions charge.