Transcript Noncoal Program Fee Proposal

Noncoal Program Fees
Applicable Regulations
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Chapter 77 (Noncoal Mining)
Chapter 102 (Erosion and Sedimentation Control)
Chapter 105 (Dam Safety and Waterways Management)
Chapter 92 (NPDES) and 93 (Water Quality Standards)
Chapter 96 (Water Quality Standards Implementation)
Chapters 121, 123, 127 and 129 (Air)
Chapter 209 (Surface Mine Safety) and 211 (Explosives)
Permittees-as of the end of 2009
• There were 1547 entities that hold permits
Noncoal License Applications Issued
1800
1600
Number of Licenses Issued
1400
1200
1000
800
600
400
200
0
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
Existing Permits-as of the end of
2009
• Large
– 691 Active
– 31 Inactive
• 10,000 Ton
– 291 Active
– 6 inactive
• Small (<=2000 Ton)
– 1231 Active
– 32 Inactive
Permits
• About 600 applications a year are
processed
Noncoal Permit Applications Issued
800
700
Number of Permits Issued
600
500
400
300
200
100
0
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
New Small
120
Number of Permits Issued
100
80
60
40
20
0
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
New Large
35
30
Number of Permits Issued
25
20
15
10
5
0
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
Inspections
• Calendar Year 2008
– 6069 Routine Inspections
– 425 Blasting Inspections
• Calendar Year 2009
– 6308 Routine Inspections
– 397 Blasting Inspections
Noncoal Act Fee Language
• The department is authorized to charge
and collect from persons a reasonable
filing fee, which shall not exceed the cost
of reviewing, administering and enforcing
the permit.
What do other states do?
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Ohio
New York
Maryland
West Virginia
Ohio
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Filing fee $500 on approval
$500/yr with annual report,
Small (10,000 tons) is $250
Renewal fee $1000
Reclamation fee $75/ac.
New York
• Permit fee per year:
– $400 minor
– $700 (up to 5 acres)
– $900 (5-10 ac)
– $1500 (10-20 ac)
– $4000 (20-30 ac)
– $8000 (30+ ac)
Maryland
• Right of entry recording fee $40
• Permit fee per year $12/ac ($1000 max)
• Reclamation fee $30/ac
West Virginia
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Permit application $1000
$1000 at permit issuance
Renewal/transfer/major rev. $500
Minor rev. $200
NPDES-new and renewal $1,000
Annual NPDES permit fee $1,000
Comparison of Fees for a 50-acre 30-year Quarry
$300,000.00
$250,000.00
$200,000.00
Cost
Administrative
Renewal
$150,000.00
Application
NPDES
$100,000.00
$50,000.00
$0.00
MD
NY
OH
State
PA
WV
Fees for a 5-acre, Ten-year Noncoal Permit
$4,500.00
$4,000.00
$3,500.00
Total Cost
$3,000.00
$2,500.00
Administrative
Renewal
Application
$2,000.00
$1,500.00
$1,000.00
$500.00
$0.00
MD
NY
OH
State
PA
WV
Draft Fee Proposal
• Fees to pay for the cost of:
– Permit review
– Inspection (administering the permit)
• Calculations based on Workload Analysis
– Hours for Review
– Inspection Time
– Personnel Costs (salary & benefits)
Rulemaking Process
• Amend Chapter 77 to incorporate new
fees
– Proposed Rulemaking (EQB)
– Subject to comments
• Public
• Legislative Committees
• Independent Regulatory Review Commission
– Public Hearings
– Response to Comments (C & R document)
– Published as Final Rulemaking
Timeline
• The Draft Regulation is now in the DEP
internal review process
• Environmental Quality Board-June 15
• Pa Bulletin in August (?)
• Hearings in September (?)
• Final to EQB in 2011
NSMCRA Fund
Noncoal Surface Mining Conservation and
Reclamation Fund
… shall be used by the secretary for the purpose
of the revegetation or reclaiming of land affected
by surface mining of any minerals, for restoration
or replacement of water supplies affected by
surface mining operations or for any other
conservation purposes provided by this act; and,
for such purposes, are specifically appropriated
to the department by this act.
Penalty Revenue
Fiscal Year
04-05
05-06
06-07
07-08
08-09
Amount
$67,771.10
$137,738.00
$193,662.00
$144,443.22
$114,597.00
Environmental Education Fund
• 5% of penalties are required to go to the
EEF.
Enforcement
• Some enforcement costs are captured
through civil penalty assessments (Cost to
the Commonwealth)
• However, only a fraction of the violations
(~20%) result in payments
Other Revenue Sources
Fiscal Year
License Fee
Interest
04-05
05-06
06-07
07-08
08-09
$233,356.00
$231,373.38
$216,280.00
$221,100.00
$218,800.00
$417,588.91
$740,614.19
$771,851.33
$626,584.82
$343,837.47
Program Data-Last FY
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140 employees
40 Full Time Equivalents
About $1.5 M per year for salary costs
40% for benefits puts the personnel costs
at about $2.2 M per year
• Total program cost is about $ 3 M per year
Fee Calculation Basis
• Workload Analysis
– Assigns hours to tasks
– Used to manage staff levels
• Wage Rates
• Benefits
– 40% of salary
• Overhead
– About 40% of personnel costs
Workload Analysis
• Permits
– Small Permit-9 hours
– Large Permit
• Groundwater-300 hours
• No groundwater-200 hours
• Blast Plan-8 hours
• Completion Report-10 hours
Inspection Workload Numbers
• Large
– 4 per year
– 7 hours per inspection
• Small
– 2 per year
– 2 hours per inspection
Fee Calculation Example
• Large permit that will encounter
groundwater
• Workload Time-300 hours
• Wage Rate-$37.44 per hour
• 40% benefits
• 40% overhead
• 300 X $37.44 X 1.4 X 1.4=$22,014.72
• Round to $22,025
Other Permit Fee Calculations
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Small Noncoal
Blast Plan
Completion Report
Large Major Amend-GW
Large Major Amend-Not GW
Large Transfer
$525
$475
$600
$3,850
$1,600
$900
Annual Administration Fee
• Paid each year
• Based on type of permit (small or large)
• Inspection Frequency
Administration Fee Calculation
Example
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Large Noncoal with Blasting
4 inspections per year by the inspector
1 inspection per year by the Blasting Inspector
7 hours per inspection
$28.75 per hour for inspector
$32.83 for the Blasting Inspector
4 X 7 X $28.75 X 1.4 X 1.4=$1449.00 ($1,450)
1X 7 X $32.83 X 1.4 X 1.4=$413.66 ($400)
$1,850 per year
Administrative Fee Calculations
Permit Category-Permit Status
Annual Fee
Large Surface Mining Permit-Active
$1,450.00
Large Surface Mining Permit-Active with Blasting
$1,850.00
Small Surface Mining Permit-Active
$200.00
Small Surface Mining Permit-Active with Blasting
$300.00
Underground Mining Permit-Active
$1,450.00
General Permit-Short Term Construction
$200.00
All Permits-Not Started
$100.00
All Permits-Inactive
$100.00
How does the proposal compare
with the other states?
Fees for a 5-acre, Ten-year Noncoal Permit
$4,500.00
$4,000.00
$3,500.00
Total Cost
$3,000.00
$2,500.00
Administrative
Renewal
Application
$2,000.00
$1,500.00
$1,000.00
$500.00
$0.00
MD
NY
OH
State
PA
WV
Comparison of Fees for a 50-acre 30-year Quarry
$300,000.00
$250,000.00
$200,000.00
Cost
Administrative
Renewal
$150,000.00
Application
NPDES
$100,000.00
$50,000.00
$0.00
MD
NY
OH
State
PA
WV
Questions, Comments or
Suggestions