Annual Emission Fees
The Clean Air Act requires each state to develop a Title V, Renewable Operating Permit Program that is 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. The fee program was reauthorized by Governor Rick Snyder on October 4, 2011. The fee rates and structures were revised for the first time since 2001.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
The facility charge used in the fee formula is based on the classification, or Category, of the facility. The categories are as follows:
CATEGORY I: 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.) The facility charge is $4,485 for a Category I facility.
CATEGORY II: 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 II also includes any facility with operations subject to a federal New Source Performance Standard. The facility charge is $1,795 for a Category II facility.
CATEGORY III: 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.
For municipal electric generating facilities, the following municipal utility (MU) fees are charged:
For sources that emit at least 730 but less than 5,250 tons -- $37,000
For sources that emit at least 5,250 but not more than 12,000 tons -- $127,000
The emission charge used in the fee formula is for Category I or II facilities and is calculated as $47.95 per ton of actual emissions.
There are different caps on billable pollutants for those Category I and II facilities which are defined as "Electric providers" under the Clean, Renewable and Efficient Energy Act, PA 295 of 2008.
For Category I and II facilities which are Electric Provider (EP) sources, a maximum of 5,250 tons per facility is subject to change. Therefore the maximum emission charge is $251,737.50 for any one EP facility. However, if an EP facility has less than 5,250 tons of actual emissions the maximum amount subject to the fee is 1,250 tons per fee subject pollutant.
For Category I and II facilities which are not EP sources, a maximum of 4,000 tons per facility is subject to the charge. Therefore the maximum emission charge for any one non-EP facility is $191,800. However, if a facility has less than 4,000 tons of actual emissions the maximum amount subject to the fee is 1,000 tons per fee subject pollutant.
CONTACTS:
Questions concerning specific invoices should be directed to the
District Office in which the facility is located.
General questions concerning the air quality fee program may be directed to Dennis McGeen at:
mcgeend1@michigan.gov or by phone at 517-373-7061 or fax at 517-241-7499.
