Monterey Bay Unified Air Pollution Control District 24580 Silver Cloud Court, Monterey, CA 93940 CONSIDERATION OF PROPOSED DISTRICT RULE 311 STAFF REPORT FOR PUBLIC REVIEW Date of Release: April 8, 2015 TO: Interested Parties FROM: Amy Clymo, Supervising Air Quality Planner SUBJECT: Rule 311 Smoke Management Permit Fees Date/Time of Public Hearings on Rule Adoption: Public Hearing/Rule May 20 and June 17, 2015 - 1:30 P.M. Location: 24580 Silver Cloud Court, 3rd Floor, Monterey, California Adoption District staff is proposing cost recovery fees to recapture a portion of the District’s expenses in implementing the state-mandated Smoke Management Program (SMP) for Prescribed and Agricultural Burning. The SMP is critical to reducing smoke impacts from open outdoor burning. The District has implemented this program for many years without recovering costs. The attached Staff Report contains the full draft of the proposed Rule in Appendix A. Attachment 1: Staff Report ATTACHMENT 1 STAFF REPORT MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT STAFF REPORT Proposed Rule 311 Smoke Management Permit Fees to Recover Costs for Implementing the District’s State-Mandated Smoke Management Program Public Review April 8, 2015 Amy Clymo Supervising Air Quality Planner 3 Background District staff is proposing cost recovery fees to recapture a portion of the District’s expenses in implementing the state-mandated Smoke Management Program (SMP) for Prescribed and Agricultural Burning. The SMP is critical to reducing smoke impacts from open outdoor burning. The District has implemented this program for many years without recovering costs. The SMP is expected to grow in the coming years with the implementation of Monterey County Wildfire Protection Plan. This plan calls for the burning of up to 20,000 acres per year. While the SMP has been very successful in reducing smoke impacts from outdoor burning, there is currently no means to effectively recover any of the associated costs. Since 2003, the District has implemented the SMP without recovering costs. In 2006 the Board approved a means to recover costs for services for Prescribed and Agricultural burns. Under this approach the District is absorbing the majority of the costs with expenditures being charged to the General fund. Staff considers cost recovery fees to be essential to the future of a successful SMP that meets the public’s needs while realigning the costs to those who are using these specialized District services. Implementing the SMP involves staff resources from Management, Planning, Compliance, Air Monitoring, and Finance. Planning staff hours expended on the SMP were evaluated for FY12-13 and FY13-14. The hours include time spent on day-to-day program implementation, such as the issuing of burn permits, reviewing burn permits, issuing daily burn authorizations, evaluating meteorological conditions, interagency meetings, and inspecting burn sites. Smoke Management Program: FY2012-13: FY2013-14: FY2014-15: 805 hours 1,050 hours 500 hours Other air districts in the state collect fees for both agricultural and nonagricultural open burning. The District’s proposed fees are comparable to open burning fees paid by burners for example in the Bay Area Air Quality Management District, North Coast Air Quality Management District, and Placer County Air Pollution Control District. Authority The District is required to administer a state-approved Smoke Management Program and is authorized to issue permits for open burning under: California Code of Regulations, Title 17, Subchapter 2, Sections 80100 et seq. and 93113 et seq., California Health and Safety Code Sections 39011 et seq., 41800 et seq., and 41850 et seq. The District is authorized to collect fees for issuing permits under California Health and Safety Code Section 42311 and the fees shall not exceed actual District administrative costs for processing or enforcing 4 permits for specific types of burning in accordance with Section 42311.2. Major Proposed Provisions for Recovering Program Costs The proposed fees are needed to recover costs for issuing permits for agricultural burning, including prescribed burning. The fees would be similar to those in other air districts collecting permit fees. The proposed fees would recover costs for issuing permits, ensuring compliance with burn prescriptions, and authorizing burns. These activities account for approximately 40% of the total expected future SMP costs. The remaining SMP costs are not directly associated with the issuance of burn permits and would continue to be funded from the General fund. The District has the state-mandated authority to operate the SMP and the expectation from the public to manage and minimize smoke impacts. Therefore, staff time for activities such as outreach, interagency liaison, training, air monitoring, developing forecasting tools, and enforcement were not included in the estimated hours to implement permits for prescribed and agricultural burning. These types of activities would continue to be funded from the District’s general fund. In addition, District staff continue to evaluate ways to streamline our efforts in implementing this program. For example, staff are considering expanding the use of the online agricultural waste permit system to include routine stack burns conducted by agencies such as state parks or the forest service that generate less than 1 ton of particulate matter. The proposed fees would generate approximately $20,000 per year depending on the project size and number of permits issued each year. This approach would ensure the District stays consistent with the requirements of the California Health and Safety Code Section 42311.2 and does not assess fees higher than actual administrative costs for agricultural or prescribed burning. Affected Sources and Fiscal Impacts Upon Affected Sources Businesses, agencies, or individuals using open outdoor fires in this air basin are required to obtain District-issued permits under District Rule 438 (Open Outdoor Fires) and may be affected by institution of permit fees. The proposal to recover costs could benefit other District permit holders whose fees currently subsidize this unfunded Program. Note that permits issued by state or local fire agencies, such as for residential burning of vegetation, are not subject to the Air District fees. In the cost recovery method being considered, i.e., charging fees for Districtissued permits, the fiscal impact would vary with the burn project size. The fees for Smoke Management Permits were estimated based on the number of staff hours per permit and permit size for prescribed burns. Fiscal impacts to burners are anticipated to range from $150 to $3,000 for burners that conduct multiple projects in one year. 5 Alternative Analysis California Health and Safety Code Section 40727.2 includes requirements for the adoption, amendment, or repeal of Air District regulations. This fee proposal does not impose new control standards, make an existing standard more stringent, or impose new or more stringent administrative requirements. Therefore, California Health and Safety Code Section 40727.2 does not apply. District Implementation Notice of the proposed fee rule public hearings and notice of the adoption of the rule will be made to potentially affected sources. Fiscal Impact upon District There would be an initial fiscal impact due to accounting staff and IT to setup the fee collection system. At this time staff proposes to use the GovPayNet system that is already in use by the District to collect stationary source permit fees. California Environmental Quality Act (CEQA) Status The proposed institution of fees for obtaining District-issued burn permits are exempt from the requirements of CEQA under Section 15273 which states, “CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies…” [see also Public Resources Code Section 21080(b)(8)]. Proposed Meeting Schedule Date and Time Activity Location May 20, 2015; 1:30 PM Board Hearing MBUAPCD Board Room June 17, 2015; 1:30 PM Board Adoption Hearing MBUAPCD Board Room 6 APPENDIX A PROPOSED RULE 311 (Smoke Management Permit Fees) 7 MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION III FEES RULE 311. SMOKE MANAGEMENT PERMIT FEES (Proposed for adoption June 17, 2015.) CONTENTS PART 1 1.1 1.2 1.3 1.4 1.5 GENERAL................................................................................................................... 2 Purpose ............................................................................................................................ 2 Applicability .................................................................................................................... 2 Exemptions ...................................................................................................................... 2 Effective Dates ................................................................................................................ 2 References ....................................................................................................................... 2 PART 2 2.1 2.2 2.3 2.4 2.5 DEFINITIONS ............................................................................................................. 2 Agricultural Burning ....................................................................................................... 2 Agricultural Waste Burning ............................................................................................ 3 Air Pollution Control Officer (APCO) ............................................................................ 3 District ............................................................................................................................. 3 Prescribed Burning .......................................................................................................... 3 PART 3 REQUIREMENTS ...................................................................................................... 4 3.1 Fees.................................................................................................................................. 4 PART 4 ADMINISTRATIVE REQUIREMENTS ................................................................... 4 4.1 Extension of Payment Period by the APCO .................................................................... 4 4.2 Waiver of Smoke Management Permit Fee by the APCO .............................................. 4 1 06/17/15 Proposed Rule 311 (Smoke Management Permit Fees) MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION III FEES PART 1 1.1 GENERAL Purpose The purpose of this Rule is to provide funding for the issuance and enforcement of Smoke Management Permits. 1.2 Applicability The provisions of this Rule shall apply to anyone that is required to apply for a Smoke Management Permit and complete a Smoke Management Plan consistent with Title 17 and pursuant to Rule 438 (Open Outdoor Fires). 1.3 Exemptions Reserved. 1.4 Effective Dates This Rule is effective on June 17, 2015. 1.5 References The requirements of this Rule arise from the provisions of Health and Safety Code Sections 41850, 41852, and 42311.2. California Code of Regulations, Title 17, Subchapter 2, Sections 80100 et. seq. Referenced or related District Rules include: 438 (Open Outdoor Fires). PART 2 2.1 DEFINITIONS Agricultural Burning As defined in California Health and Safety Code Section 39011 as an open outdoor fire: 2 06/17/15 Proposed Rule 311 (Smoke Management Permit Fees) MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION III FEES - used in agricultural operations, forest management, range improvement, improvement of land for wildlife and game habitat, disease or pest prevention; - used in the operation or maintenance of a system for the delivery of water for the purposes specified above; - used in wildland vegetation management burning. 2.2 Agricultural Waste Burning Refers to open burning in agricultural operations per California Code of Regulations, Title 17, Subchapter 2, Article 1, Section 80101(w). This includes the burning of materials not produced wholly from such operations, but which are intimately related to the growing or harvesting of crops and which are used in the field, except the following: plastics, petroleum products and petroleum wastes; construction and demolition debris; tires; and motor vehicle bodies and parts. 2.3 Air Pollution Control Officer (APCO) The Air Pollution Control Officer for the Monterey Bay Unified Air Pollution Control District. 2.4 District The Monterey Bay Unified Air Pollution Control District (MBUAPCD). 2.5 Prescribed Burning The planned application of fire to natural vegetation to achieve any specific objective on lands selected before that application. The planned application of fire may also include natural or accidental ignition. [California Health and Safety Code Section 39011(c)] For the purposes of this Rule, prescribed burning includes but is not limited to: burning of woody wastes from developments; fire habitat restoration; forest management burning; fuels management burning; range improvement burning; or wildland vegetation management burning. 3 06/17/15 Proposed Rule 311 (Smoke Management Permit Fees) MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION III FEES PART 3 3.1 3.1.1 REQUIREMENTS Fees The following fee schedule shall apply for each Smoke Management Permit issued pursuant to Title 17 and Rule 438. Permits will be issued upon District receipt of fee payment. The fee covers the term of the permit which is one year from the date issued. Permit Fee Fee Category Agricultural Burning* – Brush Piles Permit Size Piles with greater than 100 tons of vegetation or 1 ton of particulate matter Agricultural/Prescribed Burning 10-100 acres $150 Agricultural/Prescribed Burning 100-250 acres $800 Agricultural/Prescribed Burning 250-1,000 acres $1,200 Agricultural/Prescribed Burning More than 1,000 acres $2,200 $150 *See definition 2.1, agricultural burning includes outdoor fires for forest management, range improvement, and wildland vegetation management. PART 4 4.1 ADMINISTRATIVE REQUIREMENTS Extension of Payment Period by the APCO The fee payment required pursuant to Part 3 of this Rule may be extended for extraordinary circumstances at the discretion of the Air Pollution Control Officer (APCO). The adequacy of cause to extend the period shall be decided on a case-by-case basis by the APCO. 4.2 Reduction or Waiver of Smoke Management Permit Fee by the APCO The Smoke Management Permit fee may be reduced or waived, at the discretion of the 4 06/17/15 Proposed Rule 311 (Smoke Management Permit Fees) MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION III FEES APCO, for large burn projects (greater than 100 acres) that were unable to be conducted during the valid permit period, for issues such as a limited number of burn days, the burn prescription was not met, burn restrictions were in place that prevented project completion, financial hardship, or other reasonable explanation. The adequacy of cause to reduce or waive the permit fee shall be decided on a case-by-case basis by the APCO. ***** 5 06/17/15 Proposed Rule 311 (Smoke Management Permit Fees)
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