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. Based on this legislation, the first air quality fees were assessed in January 1995. In July 2001 the Governor approved major changes to the fee program, increasing both the facility charge and the emissions tonnage charge. Based on the current legislative requirements, annual fee assessments (invoices) are mailed to fee-subject facilities each year prior to January 15. Payment of the invoice is due within 90 days of the mailing.

For the current year, fee invoices were assessed January 14, 2008 with payment due April 14, 2008. 1,796 facilities were assessed fees totaling about $10.16 million.

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.

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).

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 air hazardous pollutants). Category II also includes any facility with operations subject to a federal New Source Performance Standard. The facility charge is $4,485 for a Category I facility and $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 fees are charged:

1. For sources that emit more than 450 but less than 4,000 tons  --  $24,816

2. For sources that emit at least 4,000 but not more than 5,300 tons  --  $24,816 plus $45.25 per ton in excess of 4,000 tons

3. For sources that emit more than 5,300 but not more than 12,000 tons  --  $85,045

4. For sources that emit more than 12,000 but less than 18,000 tons  --  $159,459

The emissions charge used in the fee formula is for Category I or II facilities and is calculated as $45.25 per ton of actual emissions with a maximum of 4,000 tons per facility being subject to the charge. Therefore the maximum emission charge for any one facility is $181,000. 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 pollutant.

Questions concerning specific invoices should be directed to the district officein which the facility is located. General questions concerning the air quality fee program may be directed to  Dennis McGeen at 517-373-7061.

Questions or Comments?
Contact  Dennis McGeen (mcgeend1@michigan.gov)(fax 517-241-7499)