Document Review Checklist

 

Rulemaking Name: Hazardous Waste Fees 2019

   

Document Name: EQC Staff Report

 

Every document that will be shared with anyone outside of DEQ staff must go through management review. This includes reports and PowerPoint presentations.

All documents must be reviewed and approved by the Program Manager, Communications, and either the Agency Rules Coordinator or the Air Quality Rules Coordinator.

The Notice of Rulemaking and EQC Staff Report must also be reviewed and approved by the relevant Division Administrator.

You do not need to use this checklist for routine editing. You should use this checklist whenever a required reviewer is completing their required review and approving the document for distribution.

Each required reviewer should add their name and the date when they complete their final review and approve the document for distribution.

 

Reviewer

Name

Date

Date

Date

Sponsor, PMT

David Livengood

3/22/19

  

Communications

Susan Mills

3/7/19

  

LQ DA

Lydia Emer

3/27/19

  

ARC or AQRC

Meyer Goldstein

   

Project Lead

Jeannette Acomb

3/6/19

3/18/19

4/1/19

Project Coordinator

Denise Miller

3/4/19

  

PMT

Audrey O’Brien

   

PMT

Brian Fuller

   

PMT

David Anderson

   

Rules Team

Eileen Naples

3/11/19

  

 

 

imageOregon Department of Environmental Quality

 

Oregon Environmental Quality Commission Meeting

Agency Staff Report

Rulemaking Action Item NO. XX

 

 

Hazardous Waste Fees 2019

Table of Contents

 

 

Accessibility Information  3

DEQ Recommendation to the EQC  3

Overview  3

Statement of Need  5

Rules Affected, Authorities, Supporting Documents  6

Fee Analysis  7

Statement of Fiscal and Economic Impact  16

Federal Relationship  24

Land Use  24

EQC Prior Involvement  25

Advisory Committee  25

Public Engagement  26

Public Hearing  27

Summary of Public Comments and DEQ Responses  28

Public comment period  28

Five-year review – ORS 183.405  29

Draft Rules – With Edits Highlighted  31

Draft Rules – With Edits Included  32

 

Accessibility Information

 

 

 

You may review copies of all documents referenced in this announcement at:

Oregon Department of Environmental Quality

700 NE Multnomah St., Suite 600

Portland, OR 97232

 

To schedule a review of all websites and documents referenced in this announcement, call Jeannette Acomb, DEQ Headquarters, at 503-229-6303 or 800-452-4011, ext. 5622 toll-free in Oregon.

 

Please notify DEQ of any special physical or language accommodations or if you need information in large print, Braille or another format. DEQ can provide documents in an alternate format or in a language other than English upon request. To make these arrangements, contact DEQ, Portland, at 503-229-5696 or call toll-free in Oregon at 1-800-452-4011; fax to 503-229-6762; or email to deqinfo@deq.state.or.us. Hearing impaired persons may call 711.

 

DEQ Recommendation to the EQC

 

 

 

DEQ recommends the Environmental Quality Commission adopt the proposed rules in Attachment A as part of Chapter 340 of the Oregon Administrative Rules.

 

Overview

 

 

 

DEQ proposal

The Oregon Department of Environmental Quality is proposing to align its hazardous waste fees more closely with program needs and the Consumer Price Index. This effort is a multi-phase project to amend current hazardous waste fee funding over several years to secure sufficient funding by 2026.

 

This proposal will amend fees established in rule to help bridge program funding through 2024. DEQ will have to seek statutory amendment to statutory fees in 2021 or 2023 to fund the program by 2026.

 

Background

DEQ’s Hazardous Waste Program promotes reducing and safely managing hazardous waste, issues permits to waste management facilities, inspects hazardous waste generators and used oil processors, and assists Oregon small businesses in complying with complex federal regulations.

The program’s primary objectives are to:

 Reduce or eliminate the threat of exposure to hazardous waste

 Reduce the use of toxic chemicals in the workplace

 Deliver excellence in service

 

DEQ remains committed to maintaining state authorization for the Hazardous Waste Program. DEQ’s continued program operation ensures flexibility and responsiveness in implementing the Hazardous Waste Program in Oregon.

Since January 1986, EPA has authorized Oregon to manage the state’s hazardous waste, or Resource Conservation and Recovery Act, program. DEQ implements the state Hazardous Waste Program, as defined in ORS 466.086 and as applied in OAR 340-100-0002, to ensure harmful wastes are properly managed from “cradle to grave.”

ORS 466.165(1) authorizes DEQ to collect fees to “carry on the monitoring, inspection and surveillance program established under ORS 466.195 and to cover related administrative costs.” (ORS 466.165(1)).

Annually, DEQ’s Hazardous Waste Program receives approximately $3.5 million from multiple sources, including various fees (79 percent), a federal grant (20 percent), and small cost recovery funds (1 percent). The Program’s General Fund allocation ended in 2014 during an Agency-wide shift to grant and fee-based program funding. The Oregon Legislature approved a budget of 25 full-time equivalent staff for the program’s 2017-2019 budget. Current revenue supports 19 full-time staff.

The proposed fees would address the forecasted $1.2 million - $1.5 million deficit in Hazardous Waste Program revenue for the 2019-21 biennium. This shortfall threatens DEQ’s ability to ensure safe management and disposal of hazardous waste and greatly reduces compliance assistance to small businesses. It also potentially impacts Oregon’s ability to maintain state’s federally authorized Hazardous Waste Program.

DEQ proposes revising:

 Annual hazardous waste generators activity verification fees

 Annual hazardous waste generators management method fee factors

 Annual permitted Treatment Storage and Disposal (TSD) facility compliance determination fees

 TSD permit modification fees

 TSD annual disposal administrative fees

 

 

Who does this affect?

These fees will affect 487 fee payers producing hazardous waste and two businesses operating permitted treatment, storage and disposal (TSD) facilities. Of those, DEQ identified 18 remedial clean-up sites, including nine closed sites that intermittently generate hazardous waste.

 

The proposed amendments of OAR 340-102 and 105 apply to all hazardous waste generators required to report.

 

 

Statement of Need

 

 

What need would the proposed rules address?

The majority of DEQ’s Hazardous Waste Program fees have remained unchanged for 20 years. Statutory fees have not been adjusted since 2007 while fees established in rule have not been adjusted since 1998, both without adjustment for inflation. By the 2019-21 biennium, funding will be insufficient to support current service levels needed to maintain the program.

 

DEQ must establish the new fees by July 1, 2019, to cover costs associated with implementing the Hazardous Waste Program and delivering services to regulated entities. The program has significantly reduced staff and is currently operating below the legislatively approved budget staffing levels by three positions.

 

How would the proposed rules address the need?

If approved, DEQ would begin receiving new fee revenue by July 1, 2019. This will help address the forecasted $1.2 million - $1.5 million deficit in the Hazardous Waste Program for the 2019-21 biennium. The increased revenue will allow DEQ to maintain positions. No new positions are included in this rulemaking.

 

The proposed fees will ensure DEQ continues implementing the state’s federally authorized Hazardous Waste Program.

 

How will DEQ know the rule addressed the need?

If the Environmental Quality Commission approves the fees, DEQ will use them to:

 Better align fees with the program‘s workload

 Maintain existing positions

 Help balance the program’s budget

 Meet federal requirement to maintain program authorization

 

 

Rules Affected, Authorities, Supporting Documents

 

 

Lead division

Land Quality Division

 

Program or activity

Hazardous Waste Program

 

Chapter 340 action

Amend - OAR

 

340-102-0065

340-105-0113

  
     

Statutory authority - ORS

466.165

466.020

466.165

468.020

468.020

466.075

466.195

  

 

Statute implemented - ORS

466.165

466.045

466.165

  
     

Documents relied on for rulemaking  

 Document title

Document location

2019-21 DEQ Agency Request Budget

2017-19 DEQ Legislatively Approved Budget

2018 Hazardous Waste Generator Reporters

2018 Hazardous Waste Fees Advisory Committee Notes

DEQ Headquarters

2016 Oregon Employment Department Data

Businesses with 50 or fewer employees

 

Oregon Employment Department

875 Union Street NE

Salem, OR 97311

https://www.qualityinfo.org/bi

2018 US Bureau of Labor Statistics Consumer Price Index

(West, not seasonally adjusted)

 

U.S. Bureau of Labor Statistics

2 Massachusetts Avenue, NE

Washington, DC 20212-0001

 

 

Fee Analysis

 

 

 

The Environmental Quality Commission’s approval of this proposed rules would increase existing Hazardous Waste Program fees. Authority to adopt the proposed rules is ORS 466.020, 466.045, 466.075, 466.165, 466.195 and 468.020.

 

Brief description of proposed fees

This rulemaking amends the hazardous waste generator and TSD facility fees to address a projected funding shortfall.

 

Reasons

The proposed fees would address the projected Hazardous Waste Program funding shortfall in the 2019-21 biennium. Factors contributing to the projected funding shortfall include:

 

Change in state revenue

The Hazardous Waste Program received $1.2 million in General Funds in 1999. Since then, the legislature has steadily reduced the amount of General Fund support and eliminated it in 2014.

 

Change in fee revenue

Since 2004, Oregon’s Hazardous Waste Program funding has significantly decreased. This includes landfill hazardous waste tipping fees (approximately 60 percent) and hazardous waste permit fees. Program staffing during this time decreased by 30 percent.

 

Change in other fund revenue

Since 2004, the program’s Environmental Protection Agency Performance Partnership Grant funding decreased by approximately seven percent.

 

Increased program costs

Statutory fees have not been adjusted since 2007 while fees established in rule have not been adjusted since 1998, both without adjustment for inflation. Increased program costs include, but are not limited to, salaries, benefits and information technology updates. This includes replacing two information systems to ensure continued compatibility with the State of Oregon’s information technology standards and security requirements.

 

Change in transaction costs

The program has two currently operating TSD permitted facilities. Permit modification fees remain at the 1997 level, without adjustment for inflation.

 

Program streamlining

The program has cut costs over the last decade by minimizing expenses, reducing overhead, holding positions vacant, and supplementing with a small carry-over ending fund balance.

 

 

Static number of base fee payers

The number of hazardous waste generators reporting annually in the past 10 years (2008 to present) has remained relatively static with an average 470. However, in the same timeframe, the program’s staff level decreased from 39 legislatively approved FTE to the current 25 FTE.

 

Fee proposal alternatives considered

The program considered the following fee increase alternatives:

 No fee increases, which does not address the projected shortfall in revenue

 Additional cost saving activities, which would require additional staffing reductions and possible loss in ability to meet EPA commitments needed to maintain program authorization.

 

In addition, the program considered the following, which requires changing the Oregon Revised Statutes. However, these options are out of the scope of the proposed rulemaking:

 Amending hazardous waste generator fee cap of $32,500 to help cover associated costs

 Amending hazardous waste metric ton $130 fee

 Amending hazardous waste permit renewal fees of $150,000 to help cover costs

 Tying fees to Inflation or Consumer Price Index

 Recovering costs for permit modifications

 

Fee payer

The proposed rules will increase the annual hazardous waste activity verification fees for businesses generating more than 220 pounds of hazardous waste per calendar month or 2.2 pounds of acutely hazardous waste per calendar month. The amendments will also increase all management method factors. DEQ estimates this will affect 487 fee payers.

 

The proposed rules will also increase the annual hazardous waste permit compliance determination fees, increase the hazardous waste permit modification fees, and add an annual administrative disposal fee for operating permitted TSD facilities. The proposed rules will affect two operating permitted TSD facilities.

 

Affected party involvement in fee-setting process

DEQ convened a nine-member Hazardous Waste Fees Advisory Committee that also served as the fiscal advisors in the fee-setting process. Committee members included statewide geographic representation, directly and indirectly affected regulated parties for large and small businesses, business advocates, and environmental interests.

 

Fee payer agreement with fee proposal

DEQ utilized the advisory committee’s discussions in forming draft proposals. The draft proposals will be part of the required formal notice process that includes a public hearing and an opportunity for the public to comment.

 

DEQ will consider all comments before finalizing and presenting the proposed fee package to the commission in May 2019.

 

When were these fees last increased?

 The generator management method factor has not changed since establishment in 1992.

 The generator annual activity verification fee last changed in 1997 when the small quantity generator fee increased from $200 to $300 and the large quantity generator fee increased from $350 to $525.

 Permitting annual compliance determination fees have remained the same since 1997 and permit modification fees since 1998.

 

Hazardous waste generator fee statutory changes not considered in this rulemaking:

 The annual metric ton generator fee changed in 2007 from $110 to $130 per metric ton

 The hazardous waste generation fee cap changed in 2007 from $27,500 to $32,500

 

How long will the current fee sustain the program?

The program has reduced expenditures and is still experiencing an annual $1.0 million plus deficit. Without additional revenue, the program will exhaust all available fund sources in July 2019 and the program will need to consider other cost reductions by December 2019.

 

Current Biennial Fees

Percentage Covered by this Source

Program costs covered by fees*

$6,070,641

74 percent

Program costs covered by General Fund

$0

0 percent

Fee last Changed

1992 – Established Management Method factor

1997 – Generator Annual Activity Verification

1997 – Permit Annual Compliance Determination

1998 – Permit Modification fee

 

*Source: DEQ 2017-19 Legislative Approved Budget

 

How long will the proposed fee sustain the program?

DEQ is looking at several fee-funding alternatives in a multi-phase effort to address this deficit and sustain the program through 2026. During the current rulemaking, Phase I, DEQ will address fees requiring rule changes only. DEQ must make additional rule and propose new statute changes within the next seven years to secure long-term, stable funding to maintain the program at its current full-time equivalent service level.

 

Proposed Fees

Expected change in revenue (+/-) – generators

+ ~ 1,127,527

73 percent

Expected change in revenue (+/-) – permitting

+ ~ $576,500

159 percent

Expected effective date

(begins multi-year increase)

July 2019 with phase-in through 2024 for generator fees

 

Transactions and revenue

For hazardous waste generators annually reporting:

 

Transactions and Revenue

Biennium

Number of transactions

Number of fee

Payers

Impact on revenue

(+/-)

Total revenue

(+/-)

2017-19 current

~ 487

~ 487

+ $0

+ $ 0

2019-21 biennium

~ 487

~ 487

+ ~ $600,953

+ ~$2,150,953

2021-23 biennium

~ 487

~ 487

+ ~ $299,477

+ ~$2,450,429

2023-25 biennium

~ 487

~ 487

+ ~ $227,098

+ ~$2,677,527

 

 

For permitted hazardous waste TSD facilities:

 

Transactions and Revenue

Biennium

Number of transactions

Number of fee

payers

Impact on revenue

(+/-)

Total revenue

(+/-)

2017-19 current

2

2

+ $0

+ $0

2019-21 biennium

2

2

+ ~$576,500

+ ~$939,000

 

 

Generator Fees

DEQ’s current annual hazardous generator fee has two components:

1.  An annual activity verification fee = $525 or $300, dependant on how much hazardous waste is generated, which is added to:

2.  An annual hazardous waste generation fee (includes management method factor) = amount of metric tons waste multiplied by $130 multiplied by the management method factor

 

For final formula:

[Activity Verification Fee + (# metric tons x $130 x management method fee factor)*]

                             * Subject to $32,500 cap

 

Both parts combine to represent the total fee included on the annual hazardous waste invoice. DEQ has a current generator fee cap of $32,500, which applies only to Part 2 of this formula.

 

1. Annual activity verification fee

The fee is based on the generator category—a generator can be a large quantity generator, a small quantity generator, or a conditionally exempt generator. All generators of hazardous waste that notify DEQ of their activities and obtain a Resource Conservation and Recovery Act Site Identification Number must verify their basic registration information annually. They are assessed a fee according to their generator category.

a. Current Annual Activity Verification Fees are:

 Large Quantity Generators- $525

 Small Quantity Generators- $300

 Conditionally Exempt Generators - No fee

 

The table below shows how DEQ defines hazardous waste generators:

Informational Only: Defines hazardous waste generator categories

Generator Category

Accumulation Limit

Storage/Shipping Schedule

Large Quantity Generator Generates more than 2,220 lbs. of hazardous waste per calendar month, and generates more than 2.2 lbs. of acutely hazardous waste per calendar month.

 No limit.

Generator must ship all accumulated hazardous waste off-site within 90 days of accumulation start date. If generator does not meet the 90-day deadline, they are required to obtain a hazardous waste storage facility permit.

Small Quantity Generator Generates more than 220 lbs. and less than 2,200 lbs. of hazardous waste per calendar month, and generates no more than 2.2 lbs. of acutely hazardous waste per calendar month.

 13,200 lbs. If generator exceeds this limit, a permit is required

 Accumulates no more than 2.2 lbs. of acutely hazardous waste at any time.

Generator must ship waste off-site within 180 days after the waste was first placed in a container. If the receiving facility is more than 200 miles from generation site, the generator may store wastes up to 270 days.

Conditionally Exempt Small Quantity Generator

Generates 220 lbs. or less of hazardous waste per calendar month and generate no more than 2.2 lbs. of acutely hazardous waste per calendar month.

 2,200 lbs.

 Accumulates no more than 2.2 lbs. of acutely hazardous waste at any time.

2,200 lbs. or less of hazardous waste may be stored indefinitely.

 

 

The examples below show how DEQ calculates the hazardous waste generator fees:

Informational Only: Calculating Hazardous Waste Generator Fees

Management Method

Annual Amount Managed

Per Metric Ton

Management Method Factor

Waste Generation Fee**

Generator Activity Verification Fee

Total Invoice

Landfill Disposal

4 metric tons

(8,820 lbs.)

X $130

X 1.50

= $780

+ $300 =

$1,080

Fuel Blending

4 metric tons

(8,820 lbs.)

X $130

X 0.75

= $390

+ $525 =

$ 915

** The annual maximum any one generator may pay in hazardous waste generation fees is $32,500.

This annual maximum does not include the activity verification fee.

 

 

 

b. Proposed Annual Activity Verification Fees:

A three-year phase-in will increase the Annual Hazardous Waste Activity Verification Fee as defined in OAR 340-102-0065(4). The fee will increase by 80 percent to better align with the Consumer Price Index (1997-2021: 72 percent). The increase will follow this schedule:

 

Hazardous Waste Generator Annual Activity Verification Fee

Generator Type

Effective in Calendar Year

 

Current

2018

2019

(25%)**

2020

(20%)**

2021 & After

(20%)**

Large Quantity Generators

$525

$656

$788

$945

Small Quantity Generators

$300

$375

$450

$540

Conditionally Exempt Generators

$0

$0

$0

$0

Annual Fee Revenue*

$190,200

~$237,750

~$285,300

~$342,360

Additional Annual Revenue

$0

$47,550

$47,550

~ $57,060

*Revenue based on 2017 hazardous waste generator invoicing of 196 LQGs and 291 SQGs.

** Percent increase is over previous year.

 

 

2. Annual hazardous waste generation fee

This fee applies to large- and small-quantity generators reporting hazardous waste generation and management during a calendar year. One portion of this calculation is the management method factors, which this rulemaking is addressing. The management method factors reflect Oregon’s environmental hierarchy of preferred management methods and offer financial incentives to responsibly manage and reduce hazardous waste.

 

a. Current Management Method Fee Factors:

Management Method

Fee Factor

Metals recovery (for reuse)

0.50

Solvents recovery

0.50

Other recovery

0.50

Hazardous wastewater not managed immediately upon generation, only in on-site elementary neutralization unit(s) or wastewater treatment unit(s)

0.50

Incineration

1.00

Energy recovery (reuse as fuel)

0.75

Fuel blending

0.75

Aqueous inorganic treatment

1.00

Aqueous organic treatment

1.00

Aqueous organic and inorganic treatment combined

1.00

Sludge treatment

1.00

Other treatment

1.00

Stabilization

1.00

Neutralization offsite

0.75

Land disposal

1.50

Management method unknown or not reported

2.00

RCRA-exempt management elementary neutralization unit(s) on-site [includes only corrosive characteristic hazardous waste managed immediately upon generation only in an on-site elementary neutralization unit(s)]

0.00

Permitted discharge under the federal Clean Water Act Section 402 or 307b (includes only hazardous wastewater managed immediately upon generation only in an on-site wastewater treatment unit(s))

0.00

 

 

b. Proposed Management Method Factors:

A six-year phase-in will increase the management method factors as defined in OAR 340-102-0065(3)(c). This will increase by 70 percent to better align with the Consumer Price Index (1992-2021: 94 percent) using this schedule:

 

Proposed Management Method Factor Increase

Effective in Calendar

year

Recovery & Wastewater

Energy Recovery & Neutralization (off site)

Incineration & Treatment

Land Disposal

Unknown

& Not Reported

Potential Revenue*

by year

Potential Additional Annual Revenue

Current-2018

0.50

0.75

1.00

1.50

2.00

$1,390,457

$0

2019 (12%)+

0.56

0.84

1.12

1.68

2.24

$1,557,457

~$166,999

2020 (17%)+

0.66

0.98

1.31

1.97

2.62

$1,822,224

~$264,768

2021 (5%)+

0.69

1.03

1.38

2.06

2.75

$1,913,336

~ $91,111

2022 (8%)+

0.74

1.11

1.49

2.23

2.97

$2,066,403

~$153,067

2023 (7%)+

0.80

1.19

1.59

2.39

3.18

$2,211,051

~$144,648

2024 (7%)+ & After

0.85

1.28

1.70

2.55

3.40

$2,365,824

~$154,774

*Revenue based on 2017 hazardous waste generator invoicing.

+ Calculated by percent multiplied by current revenue and subsequently over previous year

 

 

c. Proposed New Management Method Factor

The proposed rule would add a new management method factor to encourage brownfield or orphaned industrial property site cleanups receiving grant funding. DEQ identified two sites in the last six years that would meet this criteria. Each of those sites had ~$30,000 in disposal costs.

New Management Method Factor

Effective in Calendar year

Grant-funded environmental cleanup of a brownfield or orphaned industrial property involving waste residues for off-site treatment and/or landfill disposal

2019

0.00

 

 

Permitting Fees

DEQ’s current permitting fees include two components addressed in this rulemaking:

1.  Annual permit compliance determination fee

2.  Permit modification fee

 

Permitted hazardous waste TSD facilities with active operating hazardous waste unit(s) are subject to 40 C.F.R. 264, 265, 270 and OAR 340, and subject to the annual compliance determination fee.

 

DEQ will assess permittees a permit modification fee. This excludes modification related to corrective action.

1. Annual Compliance Determination Fee

a. This increases permitted TSD annual compliance determination fees in Oregon Administrative Rule 340-105-0113(3). The fee increases by 31 percent to better align with the Consumer Price Index (1997-2021: 72percent) using this schedule:

 

Permitted Treatment, Storage and Disposal Compliance Determination Fee

Facility Activity Type

Current

2018

Effective in Calendar Year

2019

Proposed Annual

Revenue

Storage

$18,750

$24,500

$49,000

Treatment: Single Technology

$37,500

$49,500

$0

Treatment: Multiple Technology

$75,000

$98,500

$98,500

Disposal Facility: Single Disposal Unit

$75,000

$98,500

$0

Disposal Facility: Multiple Disposal Units

$150,000

$196,500

$196,500

Post-Closure Facility

$18,750

$24,500

$0

Revenue Effect

Annual Permit Fee Revenue*

$262,500

 

~$344,000

Additional Annual Revenue

  

~$81,500

*Revenue based on 2018 TSD reporting data of 2 Storage, 1 Multi-Treatment, 1 Multi-Disposal

 

Where more than one hazardous waste management activity takes place at a single facility, DEQ will assess all of the applicable category Annual Compliance Determination Fees.

 

b. New Permitted Operating Hazardous Waste Disposal Administrative Fee

 

This introduces a new administrative fee of $5.50 per metric ton of waste disposed into a permitted Subtitle C land unit, by operating Oregon permitted hazardous waste disposal facilities. DEQ expects approximately 80 to 90 percent of the metric ton volume will be from out-of-state generators. The rulemaking adds the new annual administrative fee using this schedule:

 

New Permit Administration Fee

Type

Current

2018

Effective in

Calendar Year 2019

Permitted Operating Disposal Fee

$0

$5.50 per metric ton

Revenue Change

Annual fee revenue*

$0

 

Potential additional revenue

 

~$495,000

*Revenue based on ~90,000 metric tons hazardous waste disposed in Oregon annually

 

 

 

2. Permit Modification Fee

 

This increases the permit modification OAR 340-105-0113(4) fees 59 percent. This better aligns with the Consumer Price Index (1992-2021: 94 percent) and streamlines the modification types to remove low and medium workloads using this schedule:

 

Permit Modification Fee

Modification Type

Current

2018

Effective in

Calendar Year 2019

Potential

Variable Revenue*

Class 1 Low Workload

$425

$0

 

Class 1 Medium Workload

$1,500

$0

 

Class 1 High Workload

$2,800

$4,500

$9,000

Class 2 Low Workload

$5,000

$0

 

Class 2 Medium Workload

$10,000

$0

 

Class 2 High Workload

$20,000

$31,800

$31,800

Class 2 Processed as Class 3

$31,000

$0

 

Class 3 Low Workload

$7,500

$0

 

Class 3 Medium Workload

$15,000

$0

 

Class 3 High Workload

$31,000

$49,300

Revenue Effect

Revenue*

~$7,350

 

~$40,800

Potential Additional Revenue

  

~$33,450

*Revenue based on 20-year average of 2-Class 1 and 1-Class 2

 

 

DEQ only receives permit modification fees when permittees request a modification. These fees are not a reliable source of annual revenue.

 

 

Statement of Fiscal and Economic Impact

 

 

 

Fiscal and Economic Impact

For Generators

The proposed generator rules will increase the annual hazardous waste reporting fees for businesses generating more than 220 pounds of hazardous waste per calendar month, generating 2.2 pounds of acutely hazardous waste per calendar month, or accumulating more than 2,200 pounds at any one time. The rulemaking will not affect conditionally exempt generators generating less than the above amounts of hazardous waste.

 

DEQ reviewed its hazardous waste registered businesses and found this rule will affect 487 active businesses that report their hazardous wastes. A small number of Oregon businesses may report periodically as they conduct a chemical clean out or one-time hazardous waste cleanup event that would move them from the conditionally exempt category to a small or large quantity generator of hazardous waste.

 

For Permitting

The proposed permitting rules will increase the annual hazardous waste compliance determination fees, add a new annual permitted operating disposal administrative fee, and amend the permit modification fees for businesses permitted to operate TSD facilities.

DEQ reviewed its hazardous waste permitted TSD facilities and found this rule would affect two active operating TSD facilities that report their hazardous wastes.

 

Statement of Cost of Compliance  

DEQ anticipates this rule adoption will cause small economic impacts on its own expenditures. DEQ will make administrative changes on the annual reporting and accounting systems. We expect this impact to be minimal.

 

Any rule change requires staff training and outreach to the regulated community. DEQ expects this impact to be minimal, as DEQ currently performs outreach through the hazardous waste annual reporting notifications and through the hazardous waste technical assistance program to regulated facilities.

 

State, federal and local governments  

Direct Impacts

For state, federal and local governments annually reporting their hazardous waste generation and management activity, compliance costs associated with the proposed rules is identical to costs described under “Large Businesses.”

 

Indirect Impacts

The proposed rules would have the same indirect costs as “Large Businesses” indirect impacts.

 

Public

Direct Impacts  

DEQ anticipates there will be no fiscal impact on the public, as fees and a federal grant fund the program. DEQ does not use any Oregon General Funds to support the Hazardous Waste Program.

 

Large businesses - businesses with more than 50 employees

Hazardous Waste Generator Direct Impacts

DEQ anticipates there will be a fiscal impact to businesses generating and managing hazardous wastes who report. The tables below provide summaries of the proposed direct financial impact of each total fee increase proposal for generators and permitted facilities, respectively.

 

Generator - Large Business Fiscal Impact by 2024

Annual Activity Verification Generator Fees

SQG

LQG

$240 increase (200 businesses)

$420 increase (133 large businesses)

Management Method Fee factors

(this analysis does not includes spills, cleanup sites, remediation sites or closed facilities, to provide the most accurate representation of future impacts)

SQG

LQG

$467 average increase

(200 businesses)

$4,457 (average increase, including cap*)

(133 businesses)

*This increase would result in 13 additional LQGs reaching the cap.

 

 

Management Method Fee factors

Large Business Impacts Estimated Breakdown

SQG

LQG

Increase

# Generators

Increase

# Generators

$2,001 - $4,000

5

$15,001 - $21,000

11 (4*)

$1,001 - $2,000

23

$10,001 - $15,000

12 (4*)

$500 - $1,000

21

$5,000 - $10,000

18 (4*)

< $500

151

< $5,000

92 (1*)

Total

200

Total

133

*Denotes facilities that will reach the cap based on the increase.

Permitted Facility – Large Business Fiscal Impact by 2019

Proposed - Fee type

Fiscal Impact

Permitting Annual Compliance Determination fees

Two permitted operating TSD facilities will be subject to fee increases of $75,750 and $5,750 respectively for an increase of 31%.

New Operating TSD Disposal Administrative Fee

One permitted operating hazardous waste disposal facility will be subject to an annual $5.50 per metric ton disposal administrative fee. This may result in potentially $495,000 in additional revenue based on ~ 90,000 tons annually disposed in a permitted Subtitle C land disposal unit. Approximately 10-20% is in-state disposal.

 

If the $5.50 per metric ton is passed through directly to Oregon’s hazardous waste large business generators, the estimated impacts of this fee is as follows, based on 2017 disposal data:

 Average annual increase to the 23 reporting CEGs $5.83

 Average annual increase to the 14 SQGs $12.14

 Average annual increase to the 32 LQGs $451.34

Permitting Modification Fee

Permitted TSD facilities will be subject to the applicable hazardous waste permit modification fee when requesting permit modifications. The impact depends on the classification of work needed. A 20-year average identified submission of three permit modifications per year, or roughly ~$40,800 under the amended fee. This proposal would result in an increase in potential revenue of ~$33,450.

 

 

Hazardous Waste Generator Indirect Impacts

There may be a fiscal impact in addition to the new operating TSD disposal administrative fee. The proposed rules include an increase in permitted hazardous waste TSD permitting fees that may affect generators. Because of increased fees, Oregon’s two operating facilities may decide to pass the costs on to businesses utilizing their services. DEQ is not responsible for these types of business decisions and cannot quantify what those potential costs might be.

 

Permitted Treatment, Storage and Disposal Facility Direct Impacts

DEQ anticipates there will be a fiscal impact to two operating permitted hazardous waste TSD facilities generating and managing hazardous wastes who report. The impact to those businesses would be a direct cost increase of 31 percent to their annual compliance determination fees. In addition, if the facility seeks a modification to its current permit, the business would have a direct cost increase of 59 percent. The proposed fee table above shows a detailed breakdown of the estimated financial impact.

 

Permitted Treatment, Storage and Disposal Facility Indirect Impacts

DEQ anticipates adopting the rules will have no indirect fiscal impacts to permitted TSD businesses. The businesses already report annually, and the proposed rules do not add facilities.

 

Small businesses – businesses with 50 or fewer employees

For the purpose of this discussion, a small business has 50 or fewer employees.

 

Direct Impacts

The proposed rule changes will not affect most small business in Oregon. This is because the rules only affect businesses generating more than 220 pounds a month of hazardous waste or more than 2.2 pounds of acutely hazardous waste. DEQ identified 131 small businesses the rules will affect.

 

DEQ determined the proposed rules would have direct economic impact on all small businesses that report generated hazardous wastes.

 

DEQ determined the economic impacts on these small businesses will not likely pose a significant impact due to the phased-in multi-year stepped increases. The direct impacts are outlined in the tables below for small business generators and permittees.

 

Proposed Fee type

Generator - Small Business Fiscal Impact by 2024

Annual Activity Verification Generator

SQG: $240 increase (80 small businesses)

LQG: $425 increase (51 small businesses)

 

 

 

 

Management Method Fee Factors

 

SQG: $695 average increase (80 small businesses)

(This increase would result in three (3) additional LQGs reaching the cap.)

 

LQG: $3,726 average increase (51 small businesses) (To provide the most accurate representation of future impacts, this analysis does not include spills, cleanup, remediation or closed facilities.)

Management Method Fee factors

Small Business Impacts Estimated Breakdown

SQG

LQG

 

Increase

# Generators

Increase

# Generators

 

$1,001 - $4,000

18

$10,001 - $20,000

6

 

$501 - $1,000

14

$5,001 - $10,000

7 (1*)

 

$100 - $500

36

$1,000 - $5,000

20 (1*)

 

< $100

12

< $1,000

18 (1*)

 

Total

80

Total

51

*Denotes facilities that will reach the cap based on the increase.

 

 

Proposed Fee type

Permitted Facility - Small Business Fiscal Impact by 2019

Permitting fees

Oregon’s two permitted TSD sites are national companies with more than 50 employees, and are not small businesses.

 

 

The following presents a comparison of generator pre-rule and post-rule implementation invoices for five facilities. The facilities chosen represent the 25th, 50th, 75th, 90th and 95th percentile based on the volume of hazardous waste generated for calendar year 2017, as reported in 2018.

 

Estimated Invoices for Small (1) and Large (2) Quantity Generators

Cost

Percentile

25th (1)

50th (1)

75th (2)

90th (2)

95th (2)

 

2018

2024

2018

2024

2018

2024

2018

2024

2018

2024

Verification Fee

$300

$540

$300

$540

$525

$945

$525

$945

$525

$945

Mgt. Method Factor

$104

$289

$226

$629

$1,004

$2,792

$3,166

$8,808

$21,799

$32,500

Projected Increase

$425

$643

$2,213

$6,067

$11,126

 

 

 

Proposed Fee type

Permitted Facility - Small Business Fiscal Impact by 2019

Permitting Annual Compliance Determination fees

This increase is unlikely to directly affect small businesses. Oregon’s two permitted TSD facilities are national companies with more than 50 employees nationwide.

New Operating TSD Disposal Administrative Fee

If the $5.50 per metric ton is passed directly to small businesses, the estimated impacts will be as follows, based on DEQ 2017 reported hazardous waste disposal data:

 Average annual increase to the 29 CEGs $21.45

 Average annual increase to the 24 SQGs $10.29

 Average annual increase to the 17 LQGs $109.71

 

 

Indirect Impacts

The proposed rules would have the same indirect costs as “Large Businesses.”

 

a. Estimated number of small businesses and types of businesses and industries with small businesses subject to proposed rules.

 

Using recent employment data, DEQ compared the 487 businesses registered with the Hazardous Waste Program to current self-reported employment data to determine how many businesses employ 50 or fewer employees. One hundred and thirty-one are small businesses. Of those 131 businesses, 51 are large quantity hazardous waste generators, and 80 are small quantity hazardous waste generators. One is a conditionally exempt generator and thus not subject to the proposed rules.

 

b. Projected reporting, recordkeeping and other administrative activities, including costs of professional services, required for small businesses to comply with the proposed rules.

 

No additional activities are required to comply with the proposed rules. Registered hazardous waste generators already pay hazardous waste fees.

 

c. Projected equipment, supplies, labor and increased administration required for small businesses to comply with the proposed rules.

 

No additional resources are required for compliance with the proposed rules. Registered hazardous waste generators already pay hazardous waste fees.

 

d. Describe how DEQ involved small businesses in developing this proposed rules.

 

DEQ included small business representatives and delegates from Oregon Business and Industry who represent small businesses in Oregon on the Hazardous Waste Fee Advisory Committee. The Committee advised DEQ on the cost of compliance for small businesses. DEQ will also provide the rulemaking notice to all hazardous waste businesses registered and who reported as fee-payers within the last three years with Oregon DEQ. These groups included small businesses. Small businesses also had the opportunity to comment though the public comment and public hearing.

 

Documents relied on for fiscal economic impact

 

Document title

Document location

Oregon Department of Environmental Quality Annual Hazardous Waste Reporting for disposal in 2016 as reported in 2017

Oregon DEQ

Hazardous Waste Program

700 NE Multnomah St, Ste. 600

Portland, OR 97232-1400

Oregon Department of Environmental Quality Annual Hazardous Waste Reporting for disposal in 2017 as reported in 2018

Oregon DEQ

Hazardous Waste Program

700 NE Multnomah St, Ste. 600

Portland, OR 97232-1400

Oregon Department of Employment

2016 data

Employment Department

875 Union Street NE

Salem OR 97311

 

 

 

Advisory committee fiscal review

DEQ convened a nine-member advisory committee that also served as the fiscal advisors in the fee-setting process. The committee consisted of statewide, geographic representation, directly and indirectly affected regulated parties for large and small businesses, business advocates and environmental interests.

 

During the last committee meeting, DEQ asked the committee to review the draft and consider the fiscal impacts of the proposed rules, as OAR 183.333 requires. DEQ specifically asked the committee:

a. Will the rule have a fiscal impact?

b. If so, what is the extent of the fiscal impact?

c. Will the rule have a significant adverse impact on small businesses (<50 employees)?

d. If so, how can DEQ reduce the economic impact of the rule on small businesses?

 

Committee Findings

The committee determined the proposed rules will have economic impacts to all hazardous waste fee payers. The proposed rules will affect all hazardous waste annual reporters, including some businesses that may intermittently generate and report hazardous waste due to a one-time cleanout or other infrequent activity. The impact will be different for each business.

 

The committee did not identify significant adverse impact on small businesses in Oregon. Without additional information, such as business revenues, the full impact to small businesses is difficult to determine. To help minimize the impacts to businesses, the proposed generator fee increases will be phased-in over multiple years.

 

The committee meeting notes are posted to DEQ’s Hazardous Waste Fees 2019 Rulemaking web page: Advisory Committee Webpage.

 

Housing cost

ORS 183.534 requires DEQ to evaluate whether the proposed rules would affect the development cost of a 6,000-square-foot parcel and construction of a 1,200-square-foot detached, single-family dwelling on that parcel. DEQ determined the proposed rules would have no effect on the development costs because the proposed rules only affect regulated businesses under the hazardous waste regulations.

 

Federal Relationship

 

 

Relationship to federal requirements

ORS 183.332, 468A.327 and OAR 340-011-0029 require DEQ to attempt to adopt rules that correspond with existing equivalent federal laws and rules unless there are reasons not to do so.

 

The proposed rules are not different from or in addition to federal requirements in 40 Code of Federal Regulations 260-268, 270, 273, and Subpart A and Subpart B of part 124.

 

 

Land Use

 

 

Land-use considerations

In adopting new or amended rules, ORS 197.180 and OAR 340-018-0070 require DEQ to determine whether the proposed rules significantly affect land use. If so, DEQ must explain how the proposed rules comply with statewide land-use planning goals and local acknowledged comprehensive plans.

 

Under OAR 660-030-0005 and OAR 340 Division 18, DEQ considers rules affect land use if:

 The statewide land use planning goals specifically refer to the rule or program

 The rule or program is reasonably expected to have significant effects on:

◦  Resources, objectives or areas identified in the statewide planning goals

◦  Present or future land uses identified in acknowledged comprehensive plans

DEQ determined whether the proposed rules involve programs or actions that affect land use by reviewing its Statewide Agency Coordination plan. The plan describes the programs that DEQ determined significantly affect land use. DEQ considers that its programs specifically relate to the following statewide goals:

Goal

Title

5

Open Spaces, Scenic and Historic Areas, and Natural Resources

6

Air, Water and Land Resources Quality

9

Ocean Resources

11

Public Facilities and Services

16

Estuarial Resources

 

 

Statewide goals also specifically reference the following DEQ programs:

 Nonpoint source discharge water quality program – Goal 16

 Water quality and sewage disposal systems – Goal 16

 Water quality permits and oil spill regulations – Goal 19

 

Determination

DEQ determined these proposed rules do not affect land use under OAR 340-018-0030 or DEQ’s State Agency Coordination Program.

EQC Prior Involvement

 

 

 

On Jan. 24, 2019, DEQ did present to the EQC general program information as a pre-inform for these proposed rule revisions.

 

 

Advisory Committee

 

 

 

Background

DEQ’s nine-member advisory committee, serving as the fiscal advisors in the fee-setting process, met three times in 2018: Aug. 8, Sept. 13 and Oct. 18. Supporting documents are located on the committee’s webpage at: Hazardous Waste Fees 2019 Rulemaking.

 

The Committee members were:

 

Hazardous Waste Fees Rulemaking Advisory Committee

Name

Representing

Keri Bishop

Large Quantity Generator, Northwest

Jim Denson, Jr.

Hazardous Waste Permittee, Large Quantity Generator, Eastern

Michael Doherty

Small Business, Small Quantity Generator, Northwest

Lori Grant

Environment, Statewide

Bruce Johnson

Large Quantity Generator, Eastern

Marjorie MartzEmerson

Environment, Small Businesses Statewide, Eastern

Matthew Sauvageau

Hazardous Waste Permittee, Large Quantity Generator, Northwest

Mike Standen

Small Quantity Generator, Small Business, Western

Geoffrey B. Tichenor

Oregon Business & Industry, Small Businesses, Statewide

Kim Kaminski (Alternate)

Hazardous Waste Permittee, Large Quantity Generator, Northwest

Amber Petersen (Alternate)

Large Quantity Generator, Eastern

Leah Shannon (Alternate)

Hazardous Waste Permittee, Large Quantity Generator, Eastern

Sheila Smith (Alternate)

Hazardous Waste Permittee, Large Quantity Generator, Northwest

 

Meeting notifications

To notify people about the advisory committee’s activities, DEQ:

 Notified 23,744 people about the Advisory Committee’s activities by:

 Sent GovDelivery bulletins, a free email subscription service to 13,347 recipients subscribed on July 25, 2018, Sept. 4, 2018 and Oct. 10, 2018 to the following lists:

 Hazardous Waste  - 3,009

 Hazardous Waste Training - 6,599

 Toxics Use and Hazardous Waste Reduction Program - 2,783

 Rulemaking - 8,316

 DEQ Public Notices - 3,037

 Sent on the same dates, notices to the above GovDelivery subscribers describing how to sign up for committee meeting notices.

 

Committee discussions

In addition to the recommendations described in the Statement of Fiscal and Economic Impact section, the committee provided input and discussion on the proposed draft rules. Agendas, meeting summaries and presentation slides are available on the committee’s webpage at: Hazardous Waste Fees 2019 Rulemaking.

 

 

Public Engagement

 

 

 

To notify people about the proposed rulemaking and Jan. 17, 2019 rulemaking hearing, DEQ:

 Filed notice with the Oregon Secretary of State on Dec. 14, 2018, for publication in the January 2019 “Oregon Bulletin”

 Notified Region 10 EPA by email

 Posted the Notice, Invitation to Comment and Draft Rules on the webpage for this rulemaking

 Emailed 23,744 interested parties on the following DEQ lists through GovDelivery:

 Hazardous Waste  - 3,009

 Hazardous Waste Training - 6,599

 Toxics Use and Hazardous Waste Reduction Program - 2,783

 Rulemaking - 8,316

 DEQ Public Notices - 3,037

 hazardous waste generator reporters for the last three years in DEQ’s reporting database

 Emailed the following key legislators, required under ORS 183.335:

 Senator Michael Dembrow, chair, Senate Interim Committee on Environment and Natural Resources

 Senator Alan Olsen, vice-chair, Senate Interim Committee on Environment and Natural Resources

 Representative Ken Helm, chair, House Interim Committee on Energy and Environment

 Representative Karin Power, vice-chair, House Interim Committee on Energy and Environment

 Emailed Advisory Committee members

 Added announcements to the DEQ public calendar

 Provided notice of public meetings and links to information through postings on Twitter and Facebook

 

 

Public Hearing

 

 

 

DEQ held public hearing, and received no comments at the hearing nor during the public comment period.

 

Presiding Officers’ Record

 

Hearing

 

  
 

 

 

 

 
  
  
  

 

The presiding officer convened the hearing, summarized procedures for the hearing and explained that DEQ was recording. She asked people who wanted to present verbal comments to sign the registration list, or if attending by phone, to indicate their intent to present comments. The presiding officer advised all attending parties interested in receiving future information about the rulemaking to sign up for GovDelivery email notices.

 

As Oregon Administrative Rule 137-001-0030 requires, the presiding officer summarized the content of the rulemaking notice.

 

Two people attended the hearing in person and one person attended by teleconference or webinar. No person presented any oral testimony or written comments.

 

 

Summary of Public Comments and DEQ Responses

 

 

  

Public comment period

 

DEQ accepted public comment on the proposed rulemaking, from Friday, Dec. 14, 2018 until 4 p.m. on Tuesday, Jan. 22, 2019.

 

DEQ did not receive public comment or testimony on the proposed rules, and therefore did not make changes in response to comments.

 

 

Implementation

 

 

  

Notification

The proposed rules if approved by the Commission, would be filing on approximately May 16-17, 2019, and be effective July 1, 2019.

DEQ would notify affected parties by:

 Filing notice with the Oregon Secretary of State in May 2019 for publication in the July 2019 “Oregon Bulletin”

 Notifying Region 10 EPA by email

 Posting the announcement on the Hazardous Waste Fees 2019 Rulemaking webpage for this rulemaking, as well as on the Hazardous Waste Reporting and Oregon Hazardous Waste Rules webpages

 Emailing 23,744 interested parties on the following DEQ lists through GovDelivery:

 Hazardous Waste  - 3,009

 Hazardous Waste Training - 6,599

 Toxics Use and Hazardous Waste Reduction Program - 2,783

 Rulemaking - 8,316

 DEQ Public Notices - 3,037

 Emailing Advisory Committee members

 Adding announcement to the DEQ public calendar

 Providing notice and links to information through postings on Twitter and Facebook

 

Compliance, enforcement and reporting

 Affected parties –hazardous waste generator reporters for last three years in DEQ’s reporting database;

 DEQ staff – Email hazardous waste staff

 

Systems

 Website - Post fees fact sheet on DEQ’s program websites

 Database – Amend database for new fees

 Invoicing – Send invoices to hazardous waste reporters with new fees

 

Training

 Affected parties – Make information available through webinar trainings

 DEQ staff – Train staff and make the information readily available

 

 

Five-year review – ORS 183.405

 

 

Requirement  

Oregon law requires DEQ to review new rules within five years after EQC adopts them. The law also exempts some rules from review. DEQ determined whether the rules described in this report are subject to the five-year review. DEQ based its analysis on the law in effect when EQC adopted these rules.

Exemption from five-year rule review

 

DELETE THIS PARAGRAPH IF NO RULES ARE EXEMPT FROM REVIEW:

 

The Administrative Procedures Act exempts CHOOSE ONE: SOME … ALL of the proposed rules from the five-year review because the proposed rules would:

 

DELETE ANY THAT DON’T APPLY:

 

  Amend or repeal an existing rule. ORS 183.405(4).

  Implement a court order or a civil proceeding settlement. ORS 183.405(5)(a).

  Adopt a federal law or rule by reference. ORS 183.405((5)(b).

  Implement legislatively approved fee changes. ORS 183.405(5)(c).

  Correct errors or omissions in the existing rules. ORS 183.405(d).

 

DELETE THIS PARAGRAPH IF ANY OF THE RULES ARE EXEMPT FROM REVIEW:

 

None of these proposed rules are exempt from the five-year review under ORS 183.405(4) and 183.405 (5) of the Administrative Procedures Act.

 

 

Five-year rule review required

No later than DATE FIVE YEARS FROM ADOPTION DEQ will review the newly adopted rules for which ORS 183.405 (1) requires review to determine whether:

 The rule has had the intended effect

 The anticipated fiscal impact of the rule was underestimated or overestimated

 Subsequent changes in the law require that the rule be repealed or amended

 There is continued need for the rule.

DEQ will use “available information” to comply with the review requirement allowed under ORS 183.405 (2).

DEQ will provide the five-year rule review report to the advisory committee to comply with ORS 183.405 (3)

Draft Rules – With Edits Highlighted

LEAVE BLANK – AGENCY RULES COORDINATOR WILL ADD

 

 

 

 

Draft Rules – With Edits Included

LEAVE BLANK – AGENCY RULES COORDINATOR WILL ADD