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Legislative Fiscal Bureau
One East Main, Suite 301 • Madison, WI 53703 • (608) 266-3847 • Fax: (608) 267-6873
May 26, 1999 Joint Committee on Finance Paper #711
Air Management Staff and Fees, and Asbestos Fees and Citations for Violations
(DNR -- Air, Waste and Contaminated Land)
[LFB 1999-01 Budget Summary: Page 453, #1 and page 454, #2]
CURRENT LAW
The Department of Natural Resources (DNR) administers the requirements of the federal
Clean Air Act Amendments of 1990 in Wisconsin. DNR issues operating permits for stationary
sources of air emissions and construction (new source) permits for new and modified stationary
sources, and conducts monitoring, compliance and enforcement, emission inventory, ozone
control, modeling and planning activities. In 1998-99, DNR is appropriated $16,135,400 for
196.25 positions for air management activities. Approximately half of the staff are located in the
Madison central office and the other half are in the DNR regional offices in Eau Claire, Green
Bay, Madison, Milwaukee, Rhinelander and Spooner. Funding sources for the positions are: (a)
122.25 PR from stationary source emissions tonnage fees; (b) 16.5 PR from construction permit
(new source review) fees; (c) 2.0 PR from asbestos abatement fees; (d) 2.0 PR from ozone-
depleting refrigerants (CFCs) fees; (e) 45.5 FED from Environmental Protection Agency air
program grants; (f) 0.5 FED from leaking underground storage tank program grants; (g) 6.5 SEG
from the petroleum inspection fund; and (h) 1.0 GPR position. In addition, emissions tonnage
fees collected by DNR are transferred to Commerce to fund 2.0 PR positions for administration
of the small business clean air assistance program.
Of the authorized 196.25 DNR positions, the Bureau of Air Management is authorized
180.5 positions to conduct monitoring, permitting, planning and compliance activities. The Air
and Waste Division is authorized 3.0 positions for divisionwide program management. The
Division of Enforcement and Science is authorized 1.0 position for law enforcement. The
Division of Administration and Technology is authorized 6.0 positions for legal, administrative
and information technology services. The Division of Customer Assistance and External
Relations is authorized 5.75 positions for customer service and licensing, cooperative
environmental assistance and communication and education strategy.
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 1
DNR assesses and collects emission tonnage fees for certain air pollutants emitted by
operators of stationary sources of air pollution for which an operating permit is required. An
emission fee of $33.19 per ton will be assessed in 1998-99 for 1998 tons of emissions and is
adjusted annually based on the change in the consumer price index. Emission tonnage fees may
only be used to fund the direct and indirect costs of implementation of federal Clean Air Act
provisions.
DNR collects program revenue asbestos inspection and permit exemption review fees
from persons who perform nonresidential asbestos abatement as part of demolition and certain
renovation activities. Persons must notify DNR before they perform asbestos abatement and
must pay an asbestos inspection fee ranging from $50 to $200 and a permit exemption review fee
of $50 or $125, depending on the project size. DNR uses the revenues to administer asbestos
abatement regulations in conformance with EPA requirements, to hire contractors to conduct
inspections of asbestos abatement activities and to provide training. DNR is currently authorized
to refer violations to the Department of Justice for prosecution and refers approximately 12 out
of 600 violations per year. DNR sends a letter of noncompliance or notice of violation for other
violations.
GOVERNOR
Delete $600,000 FED annually with 8.0 FED positions to reflect available federal
funding. Convert 5.0 of the positions to PR and provide $370,900 PR annually from stationary
source program revenues for the positions. In addition, provide $104,800 PR in 1999-00 and
$73,000 PR in 2000-01 to contract for permit processing software upgrades and maintenance.
Provide program revenue to support the new positions and the currently authorized
122.25 DNR and 2.0 Commerce positions from current emissions tonnage fees and a new facility
fee created in the bill. Create an annual facility fee for stationary sources that emit a total of at
least five tons of the pollutants currently assessed the emissions tonnage fee. The annual fee per
facility would be: (a) $50 if the total amount of emissions is at least five tons but does not exceed
25 tons; (b) $650 if the emissions exceeds 25 tons but does not exceed 100 tons; (c) $2,000 if the
emissions exceeds 100 tons but does not exceed 250 tons; (d) $7,000 if the emissions exceeds
250 tons but does not exceed 4,000 tons; and (e) $20,000 if the emissions exceeds 4,000 tons. It
is estimated that the facility fee would generate $1,593,650 in annual program revenue.
Modify the asbestos abatement program to increase the statutory limit from $200 to $210
per project for the inspection of nonresidential asbestos demolition and renovation projects. It is
estimated that a $10 fee increase could generate approximately $4,300 in annual program
revenue, beginning in 2000-01. The Department would need to modify administrative rules in
order to implement the higher fee. In addition, authorize DNR to issue citations for violations of
asbestos abatement requirements. DNR would be required to promulgate rules approved by the
Department of Justice, which specify the violations for which citations may be issued. DNR
Page 2 Natural Resources -- Air, Waste and Contaminated Land (Paper #711)
would use the same procedures for issuance of a citation and collection of a forfeiture that it
currently uses for hunting and fishing violations.
DISCUSSION POINTS
Stationary Source Fees
1. The DNR air management program is funded primarily from stationary source
emission tonnage fees. In 1997-98, $7.4 million, or 57%, of $12.9 million in revenues for DNR air
management programs were from emission tonnage fees. (An additional $148,100 was collected
and transferred to Commerce.) Emission tonnage fees represented 59% of 1998-99 expenditure
authority. Federal Clean Air Act grants for program operations represented $2.5 million, or 19%, of
revenues for the DNR air management program. Federal grants are anticipated to total
approximately $2.4 million in federal fiscal year 2000. Federal funding has declined from $3.0
million in 1995-96.
2. The Clean Air Act Amendments require states to assess fees based on the tonnage of
emissions generated by a facility and established an emissions tonnage fee of $25 per ton plus an
annual adjustment based on the consumer price index (CPI) as a presumptive minimum. Wisconsin
adopted an air emissions tonnage fee system consistent with the Clean Air Act Amendments,
beginning with 1992 emissions, and first collected emission fees in 1992-93. Wisconsin adopted an
annual cap of 4,000 tons per pollutant per facility, which is optional under Clean Air Act
Amendments. A fee of $33.19 per ton will be assessed in 1998-99 for 1998 tons of emissions and is
estimated at $33.74 per ton in 1999-00 and $34.30 per ton in 2000-01.
3. States must demonstrate to EPA that the aggregate fees collected on emissions are
adequate to cover the state’s program costs associated with reducing the emissions of facilities being
assessed the fees. If states charge less than $25 plus the CPI adjustment, they must demonstrate that
program funding is adequate to fund a state program that complies with federal requirements.
States must charge more than the $25 plus CPI adjustment if necessary to fund the direct and
indirect costs of the operating permit program, including activities such as air quality monitoring,
compliance and enforcement. States may also choose to use other funding sources such as general
purpose revenues, gas taxes and facility fees.
4. If EPA finds that state emission fees are inadequate to implement an operating
permit program that complies with federal regulations, EPA may take action to implement the
operating permit program in the state and charge fees to cover EPA program administration costs.
Wisconsin has interim operating program delegation approval from EPA and must submit a request
for permanent program delegation approval to EPA by December, 1999, that demonstrates that
resources are available to administer an adequate program.
5. When the state established emission tonnage fees, DNR anticipated that billable tons
of emissions would total approximately 315,000 tons per year and that revenues collected would be
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 3
sufficient to fund the air operating permit program activities. However, billable emissions have
averaged 280,000 tons per year and revenues have been insufficient to fully fund a level of staff that
DNR believes may be needed to comply with federal requirements.
6. DNR and the Clean Air Act Task Force, an advisory group to the Department, spent
several months in 1998 discussing funding for the DNR air management program. The Air
Management Bureau prepared funding reports that described program efficiency and cost savings
actions that have been implemented, program funding and deficits and several potential revenue
sources to increase program funding. Some of the potential revenue options were to create a facility
fee, increase the cap on billable tons of emissions above the current 4,000 tons, base the emission
fees on the potential to emit instead of actual emissions, raise the emissions fee rate per ton, expand
the emission fees to include carbon monoxide emissions and use general purpose revenues (GPR).
7. The Clean Air Act Task Force did not recommend a specific additional revenue
source for the air management program, although various members recommended use of GPR,
increased program efficiency, evaluation of federally-required versus state-only program
components and performance-based fees that reward decreases in emissions.
8. In November, 1998, the Natural Resources Board recommended that the 1999-01
biennial budget create a facility fee with an annual adjustment factor, with a fee ranging from $300
for facilities emitting three to 10 tons annually to $8,000 for facilities with emissions greater than
4,000 tons annually. DNR subsequently committed to not imposing a facility fee on facilities with
emissions less than five tons. The Governor recommended a minimum facility fee of $50 for
facilities with emissions from five to 25 tons and a maximum fee of $20,000 for facilities with
emissions greater than 4,000 tons. The bill does not include an annual adjustment factor.
9. The 1997-98 assessment for stationary source emissions was $9.3 million for
284,500 billable tons of emissions in calendar year 1997, at $32.65 per ton. Actual reported tons
were 616,500. Most of the non-billable tons in excess of the cap were sulfur dioxide or nitrogen
oxides. Under the current law CPI adjustment to an anticipated $33.74 per ton in 1999-00 and
$34.30 in 2000-01 and the bill’s new facility fee of $1.6 million annually, estimated assessed
emission and facility fees would be approximately $11.0 million in 1999-00 (19% higher than the
1998-99 assessment) and $11.2 million in 2000-01 (20% higher than the1998-99 assessment).
10. While the emission and facility fees are within the fee structure established by EPA,
many regulated air emission sources that pay the fees are opposed to the facility fee and continued
indexing of the current emission fees. Some argue that fees should be linked to the performance of
the facility rather than the amount necessary to fund DNR staff, and that any difference between
performance-based fees and program costs should be paid from general purpose revenues.
11. It could be argued that the facility fee would provide an easy to administer method
of assessing an administrative fee on the approximately 1,434 air emission sources that report
emissions data to DNR. The minimum threshold would exempt emitters of small quantities less
than five tons. (These facilities are currently exempt from the emission tonnage fee.) The largest
Page 4 Natural Resources -- Air, Waste and Contaminated Land (Paper #711)
rate category of $20,000 for facilities with over 4,000 tons would affect 15 to 22 facilities, including
at least 10 electric utilities and five paper mills, whose emissions are currently capped at 4,000 tons
per pollutant per facility. The facility fee would impose a stepped fee that is charged on categories
of emission levels rather than a strict tonnage fee. Further, the bill would essentially impose a
$13,000 surcharge on facilities that have emissions in excess of the current 4,000 ton cap on fees.
12. Some argue that increasing or eliminating the 4,000 ton cap on billable emissions
would be a fairer method of assessing environmental fees based on actual air pollution emissions.
There are 15 to 22 facilities that would pay all of the fee increase resulting from an increase in the
tonnage cap, whereas a facility fee assesses a fee on all air pollution emitters of over five tons. If
the emission tonnage fee cap would be eliminated, new revenues would be approximately
$8,090,300 in 1999-00 and $8,656,000 in 2000-01 (in addition to base fees of approximately $9.3
million annually).
13. The actual and estimated emission fee revenues and expenditures are shown in Table
1. The assessed emission tonnage fees are approximately $9.3 million in each of 1997-98 and 1998-
99, while Table 1 shows actual and estimated fiscal year collections, which vary because some
revenues are received in the fiscal year after the fees are assessed. Under current law, the emission
tonnage fees would increase to an estimated $9.4 million in 1999-00 and $9.6 million in 2000-01
and the new facility fee would generate an additional $1.6 million in each year of the biennium.
The level of staff funded from the emission fees would increase from 124.25 in 1998-99 (including
2.0 positions in Commerce) to 129.25 in 2000-01.
TABLE 1
Air Emission Fees -- Revenues and Expenditures
($ Millions)
1997-98 1998-99 1999-00 2000-01
Actual Estimated Estimated Estimated
Revenues
Opening Balance -$0.57 -$2.31 $0.36 $0.57
Emission Fees 7.53 13.34 * 9.45 9.60
Annual facility fee --- --- 1.59 1.59
Total Revenue 7.53 13.34 11.04 11.19
Total Available $6.96 $11.03 $11.40 $11.76
Expenditures
DNR Division of Air and Waste $7.82 $8.80 $9.00 $8.97
DNR Division of Enforcement and Science 0.06 0.06 0.07 0.07
DNR Division of Administration and Technology 0.81 0.83 0.92 0.92
DNR Division of Customer Assistance and External Relations 0.43 0.46 0.50 0.50
Commerce Small Business Clean Air Assistance Program 0.15 0.16 0.17 0.17
Reserves 0.00 0.00 0.17 0.66
Lapses 0.00 -0.30 0.00 0.00
Total Expenditures and Reserves $9.27 $10.01 $10.83 $11.29
Encumbrances 0.00 0.66 0.00 0.00
Closing Balance -$2.31 $0.36 $0.57 $0.47
*Includes $4.05 million in accounts receivable from fees assessed in 1997-98.
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 5
Staff Levels
14. DNR is currently holding 14.0 of 180.5 Air Management Bureau positions vacant
(8.0 FED and 6.0 PR stationary sources emission fees) because revenues are insufficient to fund the
authorized positions and is in the process of filling 9.0 other Air Management Bureau vacancies.
This means that 23 (13%) of the authorized 180.5 Bureau positions are vacant, when a vacancy
level of approximately seven positions might be expected due to normal turnover. DNR has also
reduced expenditures related to travel, reduced or delayed expenditures for supplies and equipment
and decreased the use of student interns and limited-term employes. Table 2 shows staffing levels
under current law and under the bill.
TABLE 2
Air Management Bureau Staffing Levels
AB 133
May, 1999 1999-00 2000-01
Filled Positions 157.5 170.5* 170.5*
Authorized Positions 180.5 177.5 177.5
* Assumes an average of seven vacancies due to normal turnover.
15. The bill would provide sufficient new revenues from the facility fee to fill 13.0
vacancies with emission fee program revenues. New facility fees would total $1,593,650 annually,
of which almost $500,000 would be for the converted 5.0 positions and the remaining $1.1 million
would support existing authorized staff and expenses. While position authority would decline by
3.0 positions, there would be a net increase of 13.0 filled positions expected in the Air Management
Bureau, as shown in Table 2. This would represent an approximate 8% increase in work effort in
the air program.
16. DNR indicates that the additional facility fee revenues and additional filled positions
under the bill would allow the Air Management Bureau to increase the number of positions devoted
to operation permit activities from 35 to 40 (the 5.0 positions that would be converted from FED to
PR). DNR would primarily increase compliance and enforcement efforts by approximately 15-20%
with the remaining positions.
17. Of the total PR funding request, $104,800 in 1999-00 and $73,000 in 2000-01 would
be used to contract for permit processing software upgrades and maintenance. DNR estimates that
the software upgrades would help the air management program increase the efficiency of reviewing
and processing operation permits by approximately 20%.
18. DNR officials have expressed concern that the current air management program has
Page 6 Natural Resources -- Air, Waste and Contaminated Land (Paper #711)
insufficient resources and staff levels to administer an adequate program to comply with federal
requirements. DNR has also expressed concern that if EPA determines the DNR program to be
inadequate, that EPA could act to take over the state program and directly administer Clean Air Act
permitting and compliance activities. Many regulated air emission sources in Wisconsin may prefer
to be directly regulated by DNR rather than EPA. EPA has increased federal enforcement,
inspection and oversight activities in Wisconsin in the last two years. However, neither EPA nor
DNR has identified the specific level of staff that would be required to demonstrate that DNR is
administering an "adequate" program. A May 20, 1999, letter from EPA Region 5 to the Joint
Committee on Finance indicates support for the proposed fee increase as necessary to implement
required operating permit program activities, but also notes that "DNR has done an impressive job
implementing this program during its initial years."
19. EPA has not taken action to determine that the current DNR program with up to 23
vacancies is inadequate. EPA has cut federal grant funding, which increases the state’s dependence
on state-generated revenues to achieve program adequacy.
20. There are numerous options for providing an alternate or reduced fee structure that
would allow the filling of some vacancies. For example, if a facility fee would be created at one-
half the rates in the bill, approximately $796,800 in annual facility fees would be generated instead
of the $1,593,650 under the bill. Under this alternative, 6.5 PR positions would be deleted (a
decrease from the bill of $580,900 PR in 1999-00 and $549,000 PR in 2000-01). This would allow
DNR to fill about 6.5 staff beyond current levels. However, this would not provide funding for the
permit processing software upgrades that DNR anticipates would increase the efficiency of
operation permit review by 20%. If the requested funds would be provided for the permit
processing software ($104,800 PR in 1999-00 and $73,000 PR in 2000-01), an additional PR
position would have to be deleted.
21. Another alternative would be to increase the emission tonnage fee cap to 5,000 tons,
to generate new revenues of approximately $716,700 PR in 1999-00 and $824,100 PR in 2000-01.
Under this alternative, 7.0 PR positions would be deleted (a decrease from the bill of $615,900 PR
in 1999-00 and $584,000 PR in 2000-01). This would allow DNR to fill about 6.0 positions over
current staff levels. If funds would be provided for the permit processing software, 8.0 PR positions
would have to be deleted instead of 7.0.
22. If no new fee revenues would be provided, there would be insufficient revenues to
fund the conversion of the 5.0 FED positions to PR. In addition, $876,200 PR with 12.5 PR
positions would need to be deleted to balance stationary source PR expenditures with available
revenues. In total, 20.5 positions would be deleted (three under the bill and an additional 17.5 to
balance expenditures with available revenues), leaving authority for 160.0 staff. This would be
expected to result in a reduced level of effort from current law.
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 7
Asbestos Abatement
23. DNR administers asbestos abatement regulations in conformance with EPA
requirements and collects inspection and permit exemption review fees to support program
activities. DNR collected $210,100 PR in asbestos fees in 1997-98. The Department is currently
authorized 2.0 PR positions from asbestos abatement fees, including 1.0 permanent asbestos
coordinator to maintain notification and inspection databases, manage consistency and compliance
efforts and respond to complaints, and a two-year project position authorized from April, 1998 to
April, 2000 to assist DOA in maintaining compliance with federal asbestos abatement regulations at
demolition or renovation activities conducted at state-owned facilities.
24. While 2.0 staff are funded by the program, DNR devotes a total of approximately
3.8 FTE to asbestos abatement activities, including the time of regional compliance inspectors and
limited-term employe central office support. The 1.8 staff that are not funded from asbestos fees are
primarily paid from the air emission tonnage fee appropriation. This means that DNR is
reallocating staff from operating permit, air monitoring and compliance and enforcement activities
to asbestos abatement activities.
25. It could be argued that program fees should be established at a level sufficient to
fund the costs of asbestos abatement activities rather than reallocating staff from other funding
sources.
26. In its 1999-01 biennial budget request, DNR proposed to eliminate the statutorily-
imposed cap on asbestos inspections, and promulgate rules to increase fees sufficient to fund
additional staff to reflect current workload related to asbestos abatement activities. The bill
increases the fee cap from $200 to $210. DNR officials indicate that time and cost required to
change the administrative rule to provide a $10 fee increase may exceed the revenues of
approximately $4,300 annually expected to be generated.
27. An alternative to the bill would be to eliminate the statutory fee cap. Promulgation
of administrative rules for any fee change would have to follow the current law requirement that the
Department use the fees for the direct and indirect costs of conducting inspections of nonresidential
asbestos demolition. While the Department has not specified what fees might be increased to, one
option might be to increase by roughly $50 to $75 the combined inspection and permit exemption
fees paid by larger demolition projects (currently $150 or $325) to generate approximately $50,000
annually. Under this option, there would be no fee increase for smaller demolition projects where
the amount of friable asbestos containing material is less than 260 linear feet on pipes and less than
160 feet on other facility components. This level of fee increase would be sufficient to fund one
additional position at a cost of $52,700 annually beginning in 2000-01, and would allow DNR to
stop using a position funded from emission fees to work on asbestos abatement activities. The
position could be provided as an alternative to the bill, or DNR could request additional positions
under s. 16.505/515 after an asbestos inspection fee rule is promulgated. If asbestos abatement fees
were to fully fund current activity, an annual increase of approximately $90,000 would be required.
Page 8 Natural Resources -- Air, Waste and Contaminated Land (Paper #711)
28. DNR officials indicate that the Department has been unable to fill the existing
asbestos abatement two-year project position. The agency believes the current employment market
makes permanent positions more attractive. DNR has reallocated existing staff and limited-term
employes to perform the activities of the authorized positions. It is estimated that existing asbestos
revenues would be sufficient to convert the project position to permanent to meet ongoing asbestos
workload activities. An alternative to the bill would be to convert the project position to permanent
and provide $10,000 PR in 1999-00 and $48,000 in 2000-01 to fund the permanent position.
(Under the bill, the position is funded as a project position and deleted in April, 2000.)
29. Under the bill, DNR could issue citations for violations of asbestos abatement
requirements instead of referring violations to DOJ. DNR anticipates that the Department would
continue to refer major violations to DOJ, but would promulgate a rule that provides a quicker,
simpler enforcement tool for less severe violations of asbestos abatement activities. If air
management program compliance and enforcement staff identify violations that would be subject to
a citation promulgated under the rule, a warden would issue the citation in a similar manner as used
for hunting and fishing violations.
Construction Permits
30. DNR is authorized 16.5 PR positions for air construction permit review activities,
but allocates 19.0 staff to these activities. The 1997-99 biennial budget deleted 2.0 vacant positions
and transferred 2.5 positions from funding by construction permit fees to emission fees to hold
construction permit appropriation expenditures within available revenues. In 1997-98, DNR
collected $1,273,600 PR in construction permit fees.
31. It could be argued that construction permits fees should be established at a level
sufficient to fund the costs of the construction permit program rather than reallocating staff from
other funding sources. DNR has recommended proposed rule changes to increase construction
permit fees by approximately 35% in order to provide an additional $425,000 annually which would
fund all of the staff currently devoted to the program. In March and May of 1999, the Assembly
Committee on Natural Resources requested DNR to modify the fee structure for some or all types of
minor sources of air emissions. It is uncertain what level of fee increases will be included in the
final construction permit fee rule and when a revised rule will go into effect.
32. Based on existing construction permit fee levels and an available balance , it is likely
that the construction permit appropriation could support 1.0 additional PR position during 1999-01.
An alternative to the bill would be to provide $47,800 PR annually with 1.0 PR position for
construction permit activities. This would allow DNR to reduce the reallocation of staff from
emission fee funds to construction permit activities and would signify a move towards funding
program activities from the funding source designated for the activity. However, expenditures
would exceed revenues on an annual basis, therefore current fees would not support this staff level
in the 2001-03 biennium.
33. Further, DNR could request additional construction permit positions under s.
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 9
16.505/515 after the construction permit fee rule is promulgated and expected revenues are known.
Summary
34. The bill would significantly increase air emission fees in large part to maintain
compliance with federal EPA requirements in the Clean Air Act Amendments. However, DNR has
not been found in noncompliance with federal requirements, and has in fact reallocated 4.3 emission
fee-funded staff to other purposes (1.8 to asbestos abatement and 2.5 to construction permit review).
The bill would result in a net reduction in staff authority of 3.0 positions. However, due to current
staff vacancies as a result of available revenues, a significant level of increased work effort could be
expected under the bill. If asbestos abatement and construction permit fees would be established at
a level sufficient to fund those activities, DNR could restore emissions fee-funded staff to the
activities they are funded for.
ALTERNATIVES
A. Stationary Source Fees and Staff
1. Approve the Governor’s recommendation to: (a) delete $600,000 FED annually with
8.0 FED positions; (b) provide $370,900 PR annually and 5.0 PR positions annually from stationary
source program revenues (5.0 of the 8.0 FED positions would be converted to PR); (c) provide
$104,800 PR in 1999-00 and $73,000 PR in 2000-01 to contract for permit processing software
upgrades; and (d) create an annual facility fee for stationary sources that emit a total of at least five
tons of the pollutants currently assessed the emissions tonnage fee, which would be: (1) $50 if the
total amount of emissions is at least five tons but does not exceed 25 tons; (2) $650 if the emissions
exceeds 25 tons but does not exceed 100 tons; (3) $2,000 if the emissions exceeds 100 tons but does
not exceed 250 tons; (4) $7,000 if the emissions exceeds 250 tons but does not exceed 4,000 tons;
and (5) $20,000 if the emissions exceeds 4,000 tons.
2. Approve the Governor’s recommendation to delete $600,000 FED annually with 8.0
FED positions. Create an annual facility fee for stationary sources but provide a fee at half the rates
under AB 133, as follows: (1) $25 if the total amount of emissions is at least five tons but does not
exceed 25 tons; (2) $325 if the emissions exceeds 25 tons but does not exceed 100 tons; (3) $1,000
if the emissions exceeds 100 tons but does not exceed 250 tons; (4) $3,500 if the emissions exceeds
250 tons but does not exceed 4,000 tons; and (5) $10,000 if the emissions exceeds 4,000 tons. The
facility fee would generate an estimated $796,800 annually (instead of $1,593,650 annually under
the bill). In addition, provide one of the following:
a. Delete $580,900 PR in 1999-00 and $549,000 PR in 2000-01 with 6.5 PR positions
in the Air Management Bureau. This alternative would result in a reduction of 9.5 Air Management
Bureau positions instead of 3.0 under the bill. No funding would be provided for permit processing
software upgrades.
Page 10 Natural Resources -- Air, Waste and Contaminated Land (Paper #711)
Alternative A2a PR
1999-01 REVENUE (Change to Bill) - $1,593,700
1999-01 FUNDING (Change to Bill) - $1,129,900
2000-01 POSITIONS (Change to Bill) - 6.50
b. Delete $650,900 PR in 1999-00 and $619,000 PR in 2000-01 with 7.5 PR positions
in the Air Management Bureau and provide $104,800 PR in 1999-00 and $73,000 PR in 2000-01
for permit processing software upgrades. This alternative would result in a reduction of 10.5 Air
Management Bureau positions instead of 3.0 under the bill.
Alternative A2b PR
1999-01 REVENUE (Change to Bill) - $1,593,700
1999-01 FUNDING (Change to Bill) - $1,092,100
2000-01 POSITIONS (Change to Bill) - 7.50
3. Approve the Governor’s recommendation to delete $600,000 FED annually with 8.0
FED positions. However, instead of creating a new facility fee, increase the cap for assessment of
emissions tonnage fees from 4,000 tons to 5,000 tons per billable pollutant, to generate new
revenues of approximately $716,700 PR in 1999-00 and $824,100 in 2000-01. In addition, provide
one of the following:
a. Delete $615,900 PR in 1999-00 and $584,000 PR in 2000-01 with 7.0 PR positions
in the Air Management Bureau. This alternative would result in a reduction of 10.0 Air
Management Bureau positions instead of 3.0 under the bill. No funding would be provided for
permit processing software upgrades.
Alternative A3a PR
1999-01 REVENUE (Change to Bill) - $1,646,500
1999-01 FUNDING (Change to Bill) - $1,199,900
2000-01 POSITIONS (Change to Bill) - 7.00
b. Delete $686,000 PR in 1999-00 and $654,100 PR in 2000-01 with 8.0 PR positions
in the Air Management Bureau and provide $104,800 PR in 1999-00 and $73,000 PR in 2000-01
for permit processing software upgrades. This alternative would result in a reduction of 11.0 Air
Management Bureau positions instead of 3.0 under the bill.
Alternative A3b PR
1999-01 REVENUE (Change to Bill) - $1,646,500
1999-01 FUNDING (Change to Bill) - $1,162,300
2000-01 POSITIONS (Change to Bill) - 8.00
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 11
4. Maintain the current emission tonnage fees. Approve the Governor’s
recommendation to delete $600,000 FED annually with 8.0 FED positions. In addition, delete
$1,351,900 PR in 1999-00 and $1,320,000 PR in 2000-01 with 17.5 PR positions in the Air
Management Bureau to balance expenditures with available revenues. This alternative would result
in a reduction of 20.5 Air Management Bureau positions instead of 3.0 under the bill. No funding
would be provided for permit processing software upgrades.
Alternative A4 PR
1999-01 REVENUE (Change to Bill) - $3,187,300
1999-01 FUNDING (Change to Bill) - $2,671,900
2000-01 POSITIONS (Change to Bill) - 17.50
B. Asbestos Abatement
1. Approve the Governor’s recommendation to: (a) increase the statutory limit of $200
per project to $210 for the inspection of nonresidential asbestos demolition and renovation projects;
(b) authorize DNR to issue citations for violations of asbestos abatement requirements; and (c)
require DNR to promulgate rules, that must be approved by the Department of Justice, which
specify the violations for which citations may be issued.
2. Approve the Governor’s recommendation except remove the statutory limit of the
fee per project. Estimated fee increases would be expected to generate at least $47,000 PR annually
beginning in 2000-01.
Alternative B2 PR
1999-01 REVENUE (Change to Bill) $47,000
3. Approve Alternative B2. In addition, provide $52,700 PR with 1.0 PR position in
2000-01 (DNR could seek additional staff under s. 16.505/515 if revenues are sufficient).
Alternative B3 PR
1999-01 FUNDING (Change to Bill) $52,700
2000-01 POSITIONS (Change to Bill) 1.00
4. In addition to, or in lieu of, any of the above, convert 1.0 PR asbestos abatement
project position (that expires in April, 2000) to permanent and provide $10,000 PR in 1999-00 and
$48,000 PR in 2000-01 to fund the position.
Page 12 Natural Resources -- Air, Waste and Contaminated Land (Paper #711)
Alternative B4 PR
1999-01 FUNDING (Change to Bill) $58,000
2000-01 POSITIONS (Change to Bill) 1.00
5. Maintain current law.
Alternative B5 PR
1999-01 REVENUE (Change to Bill) - $4,300
C. Construction Permit Staff
1. Provide $47,800 PR with 1.0 PR position annually from air management
construction permit fees (this position could be funded in 1999-01 with existing fees).
Alternative C1 PR
1999-01 FUNDING (Change to Bill) $95,600
2000-01 POSITIONS (Change to Bill) 1.00
2. Maintain current law. (DNR could seek additional staff under s. 16.505/515 after
fee modification rules have been promulgated.)
Prepared by: Kendra Bonderud
Natural Resources -- Air, Waste and Contaminated Land (Paper #711) Page 13
