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Protect Michigan's Air Quality

The Renewable Operating Permit (ROP) Program regulates air emissions from existing sources for the protection of public health and the environment.  The 1990 amendments to the federal Clean Air Act (CAA) established the ROP Program and require states to implement an air emissions fee system to provide sufficient revenue for the program.

  • What are the ROP Program funding sources- Air Emission Fees.  The federal CAA prohibits the funding of the ROP Program in any manner other than air emissions fees.
  • Who is subject to the ROP Program and pays fees-  Approximately 830 larger Michigan facilities are subject to the annual fee.  These facilities include electric generating plants, mining, oil and gas operations, food products industry, cement plants, chemical manufacturing, landfills, and asphalt plants.  In addition, about 740 other smaller facilities (mostly dry cleaners) pay a small fee ($250). 
  • What services are provided-  The Department of Environmental Quality (DEQ) staff complete inspections to assure compliance with state and federal requirements, review and act on any application for a permit or permit renewal, respond to citizen complaints, evaluate compliance plans, and provide direct and indirect support to facilities.  An ROP combines all federal and state requirements into one document for the regulated companies. 
  •  What level of funding does the Clean Air Act specify is the minimum amount necessary to implement Michigan’s ROP Program in FY10-  $10,630,400
  • How are the Michigan Fees calculated- The Fees are based upon the air emissions (tons per year) from the facility, the formula fee rate ($ per ton) and a facility fee ($).  The formula includes caps on the amount of emissions used in the calculation.  Placing a cap on emissions limits the fees for the higher emitting facilities. 
  • What would be the level of funding for FY10 under the current formula-  $9,381,000
  • When was the last Fee increase- October 2001. 
  • What will happen if the Fees are not increased- 10 FTEs (12.5 percent) would be cut in November.  Any delay in this staff reduction to later in the fiscal year will require additional reductions in program staff. The impacts would be felt by the citizens of Michigan.  DEQ staff would be unable to complete 66 percent of the on-site facility inspections required by the U.S. Environmental Protection Agency (EPA).  Staff would respond to only a fraction of the 1200 citizen complaints received each year.  Unchecked, facilities would emit pollutants above a safe level, jeopardizing public health and the environment.  Senior citizens, children, and individuals with respiratory ailments will disproportionately bear increased health risks, such as asthma and increased mortality.  Facilities would also be impacted as DEQ staff would provide significantly less individualized compliance assistance; all escalated enforcement (settlement negotiations, consent orders, penalties) for ROP-subject sources would be turned over to the EPA; and permitting times would increase dramatically. 
  • DEQ Proposed Fee Structure for FYs 2010 – 2013—$10.6 million- At this level of fee revenue, DEQ will lose funding support for 14.5 positions and will manage this staff reduction by not filling vacancies, attrition, or layoffs.