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Chapter 92a Fee Amendments Proposed Rulemaking

Chapter 92a Fee Amendments Proposed Rulemaking. Water Resources Advisory Committee Harrisburg, PA March 24, 2016. Tom Wolf, Governor. John Quigley, Secretary. Regulatory Requirements.

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Chapter 92a Fee Amendments Proposed Rulemaking

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  1. Chapter 92a Fee AmendmentsProposed Rulemaking Water Resources Advisory Committee Harrisburg, PA March 24, 2016 Tom Wolf, Governor John Quigley, Secretary

  2. Regulatory Requirements • Chapter 92a, NPDES Permitting, Monitoring and Compliance, was published as final rulemaking on October 9, 2010. • 25 Pa. Code § § 92a.26(h) and 92a.62(e): “The Department will review the adequacy of the fees established in this section at least once every 3 years and provide a written report to the EQB.”

  3. Fee Related Activities • NPDES permit application reviews • Monitoring and compliance • Program administration • Program management • Surface water assessment

  4. Fee Related Activities Program Expenses - Fiscal Year 2012

  5. Program Implementation: Personnel • Managers / Supervisors • Engineering Staff • Inspectors • Biologists • Administrative Staff

  6. Personnel FTEs1 - Fiscal Year 2012 (Total 185) 1 FTEs include both DEP Central Office and regional staff

  7. Chapter 92a Revenues and Expenses 1 92a Application and Annual Fees are deposited into multiple sub-funds within the Clean Water Fund. 2 The EPA Section 106 Grant requires a state match. Historically the match was approximately $5 million. The 92a fee package intended to generate $5 million from Application and Annual Fees, but has generated only 70-80% of this objective. In addition to the Section 106 base grant, DEP also receives a supplementary 106 grant and a 604(b) grant, and these funds are included in this line item.

  8. Problem Statement • Of the approximately $20 million in annual expenses to administer the NPDES program, only 18% comes from NPDES fees • Since 2007, DEP has lost 74 positions from the Clean Water Program and Bureau of Clean Water, 65 of which had a direct role in implementation of the NPDES and WQM permit programs

  9. Proposed Solution • DEP is seeking to restore the 65 positions lost through increasing NPDES and WQM permit fees. Restoring these positions is deemed critical to serve DEP’s mission and fulfill commitments made in DEP’s local water quality and Chesapeake Bay initiatives. • New revenue required = $9 million per year ($8 million of which will come from NPDES)

  10. Proposed Solution • Individual NPDES application and annual fee increases phased in over 10 years (2 permit cycles) • Removal of the current $2,500 “cap” on GPs • The average fee (across all categories) is currently $1,600; this will increase to an average of $2,340 initially and then $3,200 five years after the rule is final

  11. Proposed Solution • Automatic fee adjustment every 3 years based on the change in the consumer price index (CPI), published in the PA Bulletin • Flexibility for DEP to eliminate fees for permit renewal applications (i.e., annual fees only) • Flexibility for DEP to establish specific calendar due dates for annual fees

  12. Comparison – NPDES Permits

  13. Comparison – NPDES Fees

  14. Chapter 91 Fee AmendmentsProposed Rulemaking Water Resources Advisory Committee Harrisburg, PA March 24, 2016 Tom Wolf, Governor John Quigley, Secretary

  15. Regulatory Requirements • 25 Pa. Code §91.22 establishes Water Quality Management (WQM) permit application fees • WQM fees for most permits were established in 1971 – the consumer price index has increased 585% since that time

  16. Problem Statement • Of the approximately $1.4 million in annual expenses to administer the WQM program, less than 10% comes from WQM fees • Since 2007, DEP has lost 74 positions from the Clean Water Program and Bureau of Clean Water, 65 of which had a direct role in implementation of the NPDES and WQM permit programs

  17. Proposed Solution • DEP is seeking to restore the 65 positions lost through increasing NPDES and WQM permit fees. Restoring these positions is deemed critical to serve DEP’s mission and fulfill commitments made in DEP’s local water quality and Chesapeake Bay initiatives. • New revenue required = $9 million per year ($1 million of which will come from WQM)

  18. Proposed Solution • Increases in WQM fees that are commensurate with DEP’s level of effort • Removal of the current $500 “cap” on GPs • The average fee (across all categories) is currently $234; this will increase to an average of $1,645

  19. Proposed Solution • Highest fees for new Major wastewater treatment facility permits and new wastewater land application permits • Automatic fee adjustment every 3 years based on the change in the consumer price index (CPI), published in the PA Bulletin

  20. Summary • DEP is seeking restoration of 65 positions lost since 2007 directly related to implementation of NPDES and WQM programs under Chapters 92a and 91, respectively • $9 million in new annual revenue needed to recover 65 positions ($8 million proposed for NPDES, $1 million proposed for WQM) • Fees would be similar or less than comparable states

  21. Thank you. Dana K. Aunkst, P.E., Deputy SecretaryOffice of Water ProgramsLee A. McDonnell, P.E., DirectorBureau of Clean Water

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