KDHE proposes formula to set coal ash permit renewal fees; department estimates lower per‑unit fee than statute’s minimum

The Joint Committee on Administrative Rules and Regulations heard a proposal from the Kansas Department of Health and Environment (KDHE) to adopt a regulation establishing the method to calculate annual permit renewal fees for coal combustion residuals (CCR) units.

Christine Meneke, technical support section chief for KDHE’s Bureau of Waste Management, told the committee the proposed regulation applies a formula that divides the estimated annual cost of running the program by the number of CCR units subject to the federal CCR regulations. The department said costs would include salary and benefits for staff implementing the CCR program, operational costs (computers, supplies, rent), and agency indirects.

KDHE told the committee it currently counts 17 CCR units in Kansas and that using 2024 cost estimates the formula would produce an estimated fee of roughly $9,000 per unit — below the statutory minimum of $12,000 per year specified when statute was first enacted. KDHE’s proposal therefore sets a $500 per‑unit minimum inside the formula, which the department said effectively makes the earlier statutory $12,000 minimum obsolete once the formula is adopted.

Meneke said KDHE received an EPA grant in 2023 that will be spread over seven years and will fund equipment, software, sampling and analysis costs, and staff who peripherally support the CCR program. She told the committee the permit renewal fee currently covers about 1.5 full‑time staff equivalents dedicated to the CCR program; the grant pays for additional needs the fee does not cover.

Committee members questioned whether the amount of CCR produced statewide has changed as coal generation changes and whether the number of units has increased. KDHE staff said they maintain tonnage data and can provide it to the committee through staff; they also said the higher number of subject units (17 versus the 14 originally estimated) reduces the fee per unit under the department’s formula.

Testimony clarified that the formula will be applied each year based on the number of units subject to the fee on May 1 and that KDHE expects to invoice facilities accordingly; the department said it does not anticipate seeking state general fund support for the program. KDHE scheduled a public hearing on the regulation for Monday, May 19 at 10:00 a.m.

Committee members did not take a formal vote on the regulation during the meeting.