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Committee releases bill that raises Title 5 air-permit fees after DNREC explains formula
Summary
The House Natural Resources & Energy Committee voted to release HB402 after DNREC officials said the Title 5 permit fees were recalculated to cover program costs; members pressed the agency on fivefold increases in some small-business categories and on safeguards for smaller sources.
The House Natural Resources and Energy Committee voted to release House Bill 402 Tuesday after officials from the Department of Natural Resources and Environmental Control (DNREC) explained changes to the Title 5 operating-permit fee schedule.
DNREC program administrator Amy Mann said the Title 5 fee package is made up of three parts: a base fee tied to the facility’s emissions in tons per year, a user fee based on the number of agency staff hours spent on the facility, and a program fee intended to maintain a six-month carryover balance. "The base fee is based on the amount of emissions that the facility may have," Mann said. "We measure their emissions in tons per year."
Committee members focused on increases that, in some categories, approach five times prior fees. Representative Rich Collins pressed DNREC on which businesses fall into the highest categories and whether the thresholds referenced — such as the 6,000-hour and 2,000-ton markers — referred to equipment hours. Mann clarified those figures describe agency staff time and emissions categories, not machine operating hours. She said prior fee cycles had drawn down the program’s carryover fund and that the new schedule is intended to reflect the program’s true recurring costs.
Members repeatedly raised potential impacts on smaller firms. "Do you think there’s anybody, especially in your smaller businesses, that might just not ever open or just close down based on the amount of these fees?" one member asked. Mann and DNREC staff said the Title 5 committee — which includes regulated-community representatives such as the Chamber of Commerce and the Chemical Industry Council — negotiated the allocation of program costs among categories.
With no public commenters registered in the room or online, Representative Bill Bush moved to release the bill; Representative Frank Burns seconded. On the roll call the committee recorded a majority in favor and the bill was released to the House floor.
The committee’s release does not adopt the bill’s final form; it sends HB402 for consideration by the full House. Next steps will include floor scheduling and any amendments proposed by members.
Vote and procedural note: Motion to release HB402 made by Representative Bill Bush and seconded by Representative Frank Burns; roll-call vote carried (yes: 10; no: 0; abstain: 0; absent: 2).
