HS HCS HB 1927 -- WATER POLLUTION (Wiggins)

Water pollution permit fees will expire on December 31, 2000.
This substitute restructures the fees and extends the sunset
date to December 31, 2007.

Under current law, owners of facilities that treat human sewage
pay annual operating fees ranging from $15 to $3,000, depending
on the design flow capacity of the facility.  The substitute
exempts municipalities, sewer districts, and other publicly--
owned facilities and restructures the fees to range from $100 to
$3,500, depending on the design flow capacity.  Additional fees
for pretreatment programs are repealed.  The annual operating
fee for a class IA concentrated animal feeding operation is set
at $5,000.

Operators of public sewer systems will collect service
connection fees from customers.  The annual fees will range from
$0.40 to $0.80 for residential customers, depending on the
number of customers served by the sewer system, and from $3 to
$700 for other customers, depending on the size and number of
the customer's drinking water service connections.  Customers of
the Metropolitan St. Louis Sewer District will pay 50% of the
fees until October 1, 2001, and full fees thereafter.  The fees
may be collected in monthly, quarterly, or annual increments and
will be transferred to the Department of Natural Resources at
least annually, less 5% for collection expenses.  The Clean
Water Commission may adjust the fees by rule.

New annual permit fees are established for site-specific
industrial stormwater discharges of less than one million
gallons per day ($1,350) and of more than one million gallons
per day ($2,350).  New fees are also established for federal
water quality certifications ($75), permit modifications for
operators that collect service connection fees ($200), and
permit modifications for other operators (25% of the appropriate
annual fee).  Fees will be waived for water quality
certifications issued for general and nationwide federal
permits.  Fees may also be waived for operating permit
modifications if the modification was initiated by the
department.

General permit fees for new facilities with minimal impacts are
set at $300 for the discharge of stormwater from a land
disturbance site, $50 annually for operation of a chemical
fertilizer or pesticide facility, $150 for the management of an
animal feeding operation, and $150 annually for the discharge of
process water or stormwater from other activities.  Fees for
existing facilities and renewed permits are $60 annually.

The substitute also gives the Clean Water Commission the
authority to issue permits by rule to facilities that have
minimal impacts and are in compliance with applicable rules.
The filing fee is $25.  Filing fees for variances are increased
from $25 to $250.  The commission may grant variances to reduce
operating fees for facilities that use technology to reduce
discharges substantially below requirements.

Further, the substitute establishes new fees for operator's
certificates for wastewater and concentrated animal feeding
operation facilities.  These include fees for initial
certificate of competency exams and certificates ($45),
subsequent certificate of competency exams ($20), certificate
renewals ($45), applications for reciprocity with other
certificate programs ($40), and reciprocated certificates ($25).

Construction permit fees are increased from $500 to $750 for
small wastewater treatment plants; from $1,500 to $2,200 for
large wastewater treatment plants; from $50 to $75 for sewer
extensions less than 1,000 feet; from $200 to $300 for sewer
extensions of 1,000 feet or more; and from $200 to $300 for
sewage pumping stations.  The commission may issue general
construction permits with fees no greater than those for site--
specific construction permits.

After January 1, 2001, the department must act within 180 days
on applications for construction and site-specific operating
permits and act within 60 days on applications for general
construction and operating permits that do not require a public
participation process.  Fees are refunded if these deadlines are
not met.  By December 31, 2001, the commission must promulgate
rules defining activity time frames for different classes of
permits that are equal to or shorter than the above deadlines.

In other provisions, the substitute:

(1)  Prohibits water pollution permit fee revenue from being
used for studies of total maximum daily loads or for restoration
plans for the Missouri or Mississippi Rivers;

(2)  Removes obsolete references to the executive secretary of
the Clean Water Commission;

(3)  Exempts manholes and PVC pipe less than 27 inches in
diameter used in gravity sewers from leakage tests; and

(4)  Authorizes the Board of Fund Commissioners to issue bonds
for grants and loans pursuant to several sections of Article III
of the Missouri Constitution.  The authorizations are for an
additional:

(a)  $10 million of bonds for water pollution control, drinking
water system improvements, and stormwater control pursuant to
Section 37(e);

(b)  $20 million of bonds for rural water and sewer projects
pursuant to Section 37(g); and

(c)  $40 million of bonds for stormwater control plans, studies,
and projects in first classification counties and the City of
St. Louis pursuant to Section 37(h).

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$4,023,434 in FY 2001, $5,162,890 in FY 2002, and $5,832,525 in
FY 2003.  Estimated Net Income to Natural Resources Protection
Fund of $2,663,796 in FY 2001, $4,064,126 in FY 2002, and
$4,103,486 in FY 2003.  During FY 2001, fee increases and permit
credits are prorated and could vary depending on timing of
collections and date of credit, respectively.  Cost to Road Fund
of $12,210 in FY 2001, $12,577 in FY 2002, and $12,954 in FY
2003.

HCS HB 1927 -- WATER POLLUTION PERMIT FEES

SPONSOR:  Wiggins

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Environment and Energy by a vote of 16 to 1 with 1 present.

Water pollution permit fees will expire on December 31, 2000.
This substitute restructures the fees and extends the sunset
date to December 31, 2007.

Under current law, owners of facilities that treat human sewage
pay annual operating fees ranging from $15 to $3,000, depending
on the design flow capacity of the facility.  The substitute
exempts municipalities, sewer districts, and other publicly--
owned facilities and restructures the fees to range from $100 to
$3,500, depending on the design flow capacity.  Additional fees
for pretreatment programs are repealed.  The annual operating
fee for a class IA concentrated animal feeding operation is set
at $5,000.

Beginning October 1, 2000, operators of public sewer systems
will collect service connection fees from customers.  The annual
fees will be $0.50 for residential customers and will range from
$3 to $700 for commercial and industrial customers, depending on
the size and number of the customer's drinking water service
connections.  The fees may be collected in monthly, quarterly,
or annual increments and will be transferred to the Department
of Natural Resources at least annually, less 5% for collection
expenses.  The Clean Water Commission may adjust the fees by
rule.

Effective October 1, 2000, new annual permit fees are
established for site-specific industrial stormwater discharges
($1,000), as are new fees for federal water quality
certifications ($75), minor operating permit modifications
($50), and major operating permit modifications ($200).  Fees
will be waived for water quality certifications issued for
general and nationwide federal permits.  Fees may also be waived
for operating permit modifications if the modification was
initiated by the department.

Also effective October 1, 2000, general permit fees for
facilities with minimal impacts are set at $200 annually for the
discharge of stormwater from a land disturbance site, $50
annually for operation of a chemical fertilizer or pesticide
facility, $150 for the management of an animal feeding
operation, and $150 annually for the discharge of process water
or stormwater from other activities.

The substitute also gives the Clean Water Commission the
authority to issue permits by rule to facilities that have
minimal impacts and are in compliance with applicable rules.
The filing fee is $25.  Filing fees for variances are increased
from $25 to $250.  The commission may grant variances to reduce
operating fees for facilities that use technology to reduce
discharges substantially below requirements.

Further, the substitute establishes new fees for operator's
certificates for wastewater and concentrated animal feeding
operation facilities.  These include fees for initial
certificate of competency exams and certificates ($45),
subsequent certificate of competency exams ($20), certificate
renewals ($45), applications for reciprocity with other
certificate programs ($40), and reciprocated certificates ($25).

Construction permit fees are increased from $500 to $750 for
small wastewater treatment plants; from $1,500 to $2,200 for
large wastewater treatment plants; from $50 to $75 for sewer
extensions less than 1,000 feet; from $200 to $300 for sewer
extensions of 1,000 feet or more; and from $200 to $300 for
sewage pumping stations.  The commission may issue general
construction permits with fees no greater than those for site--
specific construction permits.  The fee for approvals to use on--
site systems for residential housing developments is set at
$300, but the fee is waived for developments in areas where a
local authority enforces standards that are at least as
stringent as state standards.

The fee for any water pollution permit is waived if there is no
change in the status of the permit application for more than 240
days.  The fee is reduced by an amount ranging from 25% to 75%
if there is no change in application status for various periods
between 60 and 240 days.

Finally, the substitute repeals provisions that require
unexpended balances in the Natural Resource Protection Fund to
revert biennially to general revenue and removes obsolete
references to the executive secretary of the Clean Water
Commission.

FISCAL NOTE:  Estimated Net Income to Natural Resources
Protection Fund of $2,789,161 in FY 2001 (Fee increases
prorated, could vary depending on timing of collections.),
$4,149,590 in FY 2002, and $4,200,950 in FY 2003.  Cost to Road
Fund of $12,110 in FY 2001, $12,474 in FY 2002, and $12,848 in
FY 2003.

PROPONENTS:  Supporters say that there has been a funding
shortfall in the water pollution permit program since 1994, and
the department's authority to collect permit fees will expire at
the end of this year.  As the number of permit applications
continues to increase, more funds are needed to ensure prompt
response to permit applications and to continue progress in
protecting and improving water quality.

Testifying for the bill were Representative Wiggins; Missouri
Department of Natural Resources; Sierra Club; and Conservation
Federation of Missouri.

OPPONENTS:  Those who oppose the bill say that the proposed fees
are excessive, not based on associated costs, and create
collection problems for some sewer service providers.  Further,
there should be statutory requirements for the department to act
on permit applications within reasonable time periods.

Testifying against the bill were Recycle Missouri; Golden Valley
Sewer District; Missouri Chamber of Commerce; St. Louis
Metropolitan Sewer District; St. Louis Home Builders
Association; St. Louis Regional Commerce and Growth Association;
Home Builders Association of Greater Kansas City; Home Builders
Association of Missouri; and Associated Industries of Missouri.

Terry Finger, Senior Legislative Analyst

HB 1927 -- Water Pollution Permit Fees

Sponsor:  Wiggins

Water pollution permit fees will expire on December 31, 2000.
This bill restructures the fees and extends the sunset date to
December 31, 2007.

Under current law, owners of facilities that treat human sewage
pay annual operating fees ranging from $15 to $3,000, depending
on the design flow capacity of the facility.  The bill exempts
municipalities, sewer districts, and other publicly-owned
facilities and restructures the fees to range from $100 to
$3,500, depending on the design flow capacity of the facility.
Additional fees for pretreatment programs are repealed.  The
annual operating fee for a class IA concentrated animal feeding
operation is set at $5,000.

Beginning October 1, 2000, operators of public sewer systems
will collect service connection fees from customers.  The annual
fees will be $0.50 for residential customers and will range from
$3 to $700 for commercial and industrial customers, depending on
the size and number of the customer's drinking water service
connections.  The fees may be collected in monthly, quarterly,
or annual increments and will be transferred to the Department
of Natural Resources at least annually, less 5% for collection
expenses.  The Clean Water Commission may adjust the fees by
rule.

Effective October 1, 2000, new annual permit fees are
established for site-specific industrial stormwater discharges
($1,000), as are new fees for federal water quality
certifications ($75), minor operating permit modifications
($50), and major operating permit modifications ($200).  Fees
will be waived for water quality certifications issued for
general and nationwide federal permits.  Fees may also be waived
for operating permit modifications if the modification was
initiated by the department.

Also effective October 1, 2000, general permit fees for
facilities with minimal impacts are set at $200 annually for the
discharge of stormwater from a land disturbance site, $50
annually for operation of a chemical fertilizer or pesticide
facility, $150 for the management of an animal feeding
operation, and $150 annually for the discharge of process water
or stormwater from other activities.

The bill also gives the Clean Water Commission the authority to
issue permits by rule to facilities that have minimal impacts
and are in compliance with applicable rules.  The filing fee is
$25.  Filing fees for variances are increased from $25 to $250.
The commission may grant variances to reduce operating fees for
facilities that use technology to reduce discharges
substantially below requirements.

Further, the bill establishes new fees for operator's
certificates for wastewater and concentrated animal feeding
operation facilities.  These include fees for initial
certificate of competency exams and certificates ($45),
subsequent certificate of competency exams ($20), certificate
renewals ($45), applications for reciprocity with other
certificate programs ($40), and reciprocated certificates ($25).

Construction permit fees are increased from $500 to $750 for
small wastewater treatment plants; from $1,500 to $2,200 for
large wastewater treatment plants; from $50 to $75 for sewer
extensions less than 1,000 feet; from $200 to $300 for sewer
extensions of 1,000 feet or more; and from $200 to $300 for
sewage pumping stations.  The commission may issue general
construction permits with fees no greater than those for site--
specific construction permits.  The fee for approvals to use on--
site systems for residential housing developments is set at $300.

Finally, the bill repeals provisions that require unexpended
balances in the Natural Resource Protection Fund to revert
biennially to general revenue, and removes obsolete references
to the executive secretary of the Clean Water Commission.