Q & A

2013 Permit Fee Increase Rulemaking

7/22/13

1.  What is DEQ proposing?

-  DEQ proposes increasing most water quality permit fees by 2.9 percent.

2.  Why are the fees increasing?

-  The proposed fee increases are addressing anticipated permit program cost increases.

3.  What are the anticipated permit program cost increases?

-  The anticipated program cost increases are in staffing (salaries, benefits) and services and supplies (rent, utilities).

4.  What is causing the anticipated permit program cost increases?

-  DEQ expects three areas to increase in cost during FY 2013-2014 relative to FY2012-2013:

a.  ongoing inflation of services and supplies

b.  staff salary increase (step increase) in FY 2013-14

c.  fringe benefits (health benefits, PERS)

5.  What permits are affected by the fee increase?

-  The proposed permit fee increase is for most National Pollutant Discharge Elimination System (NPDES), Water Pollution Control Facility (WPCF), and WPCF-Onsite septic system (WPCFOS) permits.

-  The fee increase would not affect:

•  Suction dredge (700-PM) permits. These fees are set in statute and can only be changed by the Oregon Legislature.

•  Graywater (2401 and 2402) permits in an effort to encourage graywater reuse permitting.

•  Small offstream mining operations (WPCF 600). There are no application fees or annual fees.

6.  How many permits will be affected by the fee increase?

-  The proposed fee increase will impact approximately 4,000 permits.

-  The total number of permits is variable over time. Some permits are short-term in nature (e.g. General 1200-C permit for construction stormwater) while others are long-term (e.g. Individual Industrial permit for food or beverage processing).

7.  When is the fee increase becoming affective?

-  If adopted, the proposed fees would become effective Nov. 1, 2013.

8.  How did the fee increases come about?

-  The 2005 Legislature adopted a recommendation that authorizes the Environmental Quality Commission (DEQ’s governing body) to raise fees annually in an amount not to exceed the anticipated increase in the cost of administering the permit program or 3 percent, whichever is lower (ORS 468B.051).

-  Additional info: In 2002, DEQ convened the Blue Ribbon Committee – comprised of industry, environmental and local government representatives – to recommend improvements to DEQ’s water quality permit program. In 2004, the committee published a report containing a variety of recommendations, including increasing fee revenue to help cover increasing costs and support program staff.

9.  How often has the up-to-3% fee increase happened?

-  The fee increase was approved by the Environmental Quality Commission (DEQ’s governing body) in 2007, 2008, 2010, 2011 and 2012. The 2009 rulemaking was canceled due to changes in anticipated program costs.

10.  What are the new fees for General NPDES Stormwater (12-A, C, COLS, Z)?

-  Application: $803 (current fee) to $826 (proposed fee)

-  Annual Fee: $826 (current fee) to $850 (proposed fee)

11.  How will the fee increases affect businesses?

-  DEQ recognizes that the fee increases will represent a fiscal challenge for some businesses, but cannot determine the extent to which each business with a permit will be affected. Fiscal impact to a business depends on the type of permit issued, but application fee increases would range from $6 to $1,469 and annual fee increases would range from $2 to $2,724.

12.  Will businesses and municipalities pass the fee increases on to consumers?

-  Although DEQ cannot determine the extent to which the fee increases will impact each consumer, DEQ expects that consumers will be impacted by the fee increases. Service providers, industry and government agencies could increase the costs of goods and services to offset the fee increases.