DEP Proposing Automatic Inflation Increases for Tank, Air Emission Fees

The Department of Environmental Protection has proposed the first changes to its regulations to charge fees that will automatically increase every year with the rate of inflation in the storage tank and air quality programs. DEP is expected to propose the practice across all its programs charging fees.

The full Storage Tank Advisory Committee met this week to discuss increases in tank fees that range from 50 to 100 percent to meet what DEP projected would be a shortfall in funds. Also included was the provision for an automatic annual increase based on the Consumer Price Index.

The proposed fee increases are outlined in the table below:

Aboveground Storage Tanks

Capacity

Current

Proposed

Increase

Over 250 to 5,000

$50

$100

$50

5,000 to 50,000

$125

$200

$75

50,000 to 500,000

$300

$450

$150

500,000 to 2 million

$300

$600

$300

Over 2 million

$300

$750

$450

Underground Storage Tanks

Capacity

Current

Proposed

Increase

Over 110 to 8,000

$50

$100

$50

Over 8,000

$50

$200

$150

Members of the Committee raised questions about the immediate need for the new funds, citing DEP’s own income/expense projections showing the Storage Tank Fund would not actually run in the red until sometime in 2008.

In addition, members noted the federal government’s Leaking Underground Storage Tank Fund owes millions of dollars to Pennsylvania and other states from fees it collects. Members offered to work with DEP to secure those funds in hopes of avoiding a fee increase.

The Committee, including farmers, local governments and tank owners, voted to recommend DEP not go ahead with the fee increase since their need for funds was not immediate. The Committee did approve other technical changes to Storage Tank Program regulations.

Staff from DEP indicated they planned to move ahead anyway and formally proposed the fee increases at the April Environmental Quality Board meeting in spite of the Committee’s opposition.

The Air Quality Technical Advisory Committee meets on December 14 to consider a proposed rule change that would insert automatic, annual cost of living fee increases in regulation for air quality plan approvals, operating permits and Title V air emissions.


12/10/2004

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