Fee Calculations

Contact: See Below
Agency: Environment, Great Lakes, and Energy

The Clean Air Act requires each state to develop a Title V, Renewable Operating Permit (ROP) Program 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. The fee program was reauthorized by Governor Whitmer on November 14, 2019.

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

A facility charge is used in the fee formula is and based on the classification, or Category, of the facility. The categories were revised during the fee reauthorization and are as follows:

  • Category A: 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) and are also Electric Providers, not including municipally-owned electric generators.

  • Category B: 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) and are not Electric Providers, with the exception of municipally-owned electric generators with emissions over 646 tons per year.

  • Category C: 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 hazardous air pollutants).

  • Category D: Facilities that are subject to a federal New Source Performance Standard.

  • Category E: Facilities that have a Title V Opt-Out Permit.

  • Category F: Facilities which are subject to a federal Maximum Available Control Technology (MACT) standard but are not "major" under Title I or Title III. Category F facilities are assessed a $250 facility charge with no emissions charge.

 

ANNUAL FEE = FACILITY CHARGE + EMISSIONS CHARGE

Category
Type
Emissions Range
(tons)
Facility
Charge
Emissions
Charge / Ton
A ≥ 6100 $45,000.00 $53.00
A ≥ 1000 $30,000.00 $53.00
A ≥ 100 $15,750.00 $53.00
A ≥ 60 $12,500.00 $53.00
A ≥ 6 $10,500.00 $53.00
A ≥ 0 $5,250.00 $53.00
       
B ≥ 2000 $21,000.00 $53.00
B ≥ 200 $15,750.00 $53.00
B ≥ 60 $10,500.00 $53.00
B ≥ 6 $7,500.00 $53.00
B ≥ 0 $5,250.00 $53.00
B - Municipal
Utility Only
≥ 646 $50,000 N/A
       
C ≥ 60 $4,500.00 $53.00
C ≥ 6 $3,500.00 $53.00
C ≥ 0 $2,500.00 $53.00
       
D ≥ 60 $2,500.00 $53.00
D ≥ 6 $2,000.00 $53.00
D ≥ 0 $1,795.00 $53.00
       
E ≥ 60 $1,795.00 $0.00
E ≥ 6 $250.00 $0.00
E ≥ 0 $250.00 $0.00
       
F N/A $250.00 $0.00

 

Please note the facility charge may vary from one year to the next depending on the actual emissions reported, even within the same fee category.

In addition to the facility charge, an emissions charge is calculated per ton of emissions reported for Category A through D facilities. This emissions charge is calculated at $53.00 per ton of actual emissions.

For Category A and B facilities, the following caps limit the quantity of individual and total pollutants which are charged for:

  • Category A - Electric Providers is 1,500 tons per pollutant or 6,100 tons total
  • Category B - Major Criteria Pollutants is 1,250 tons per pollutant or 4,500 tons total

Contacts

  • Questions concerning specific invoices should be directed to the District Office in which the facility is located.
  • General questions concerning the air quality fee program may be directed to Dennis McGeen, 517-284-6757, 517-241-7499 fax.