CORRECTION: Environment Department petitions Environmental Improvement Board to update air quality permitting fees
An earlier version of this release incorrectly listed qualifying gross receipts as a criterion for a small entity exemption. The exemption is based on total emissions , not qualifying gross receipts. We apologize for the error.
NEWS RELEASE
For Immediate Release
March 8, 2024
Contact: Matthew Maez, Communications Director
New Mexico Environment Department
505.670.8911 | matthew.maez@env.nm.gov
Environment Department petitions Environmental Improvement Board to update air quality permitting fees
Revised fee structure will improve air quality permitting and compliance efforts
SANTA FE —The New Mexico Environment Department (NMED) petitioned the Environmental Improvement Board (EIB) yesterday to update the fees and fee structure for air quality permits last updated nearly 20 years ago.
According to the U.S. Bureau of Economic Analysis , New Mexico’s economy is the 13 th fastest growing in the nation with agriculture, construction, and mining among its fastest growing sectors. With such economic growth, NMED’s proposed fee adjustments will improve permitting timelines, technical assistance, and compliance assurance efforts.
“Air permit fees are insufficient to hire and retain staff given New Mexico’s growing economy,” said Environment Department Cabinet Secretary James Kenney . “This proposal will allow us to decrease permit timeframes, increase our compliance efforts, and overall improve air quality.”
With such growth, NMED has experienced an unprecedented increase in the number and complexity of air quality permit applications. At the same time, assuring compliance with state and federal air quality standards has also expanded significantly in the past 20 years. For example, the number of permitted oil and gas industry facilities has grown by over 2,235% from 34 permits in 2012 to 794 permits in 2023. On average, New Mexico receives 84 new oil and gas construction permit applications annually. During this period, NMED’s permit fees remained constant and staffing levels remained flat.
“There is a lot of excitement about new business coming to New Mexico,” stated Environmental Protection Division Director Michelle Miano . “These fee structure updates provide the resources we need to serve applicants effectively and provide a level playing field for businesses throughout the state.”
The petition proposes the following changes:
An increase to annual criteria pollutant emission fees from $38.47 per ton to $81 per ton (Title V Operating Permit Emissions, 20.2.71 NMAC).
An increase to filing fees for newly constructed facilities from $500 to $2,000.
Anchoring permit fees to the Consumer Price Index.
Authority to include electronic billing and electronic payment methods.
The proposal will continue to provide exemptions for small businesses (see 20.2.75.11(C) NMAC). The small entity exemption allows reduced fees based on total emissions and average number of employees.
If adopted, and based on NMED modeling, the proposed updates will bring in approximately $35.8 million to the Air Quality Bureau to support the long overdue expansion of Bureau staffing to fulfill its mission. This is compared to the approximately $8.8 million that the Air Quality Bureau receives from the existing outdated fees. The Air Quality Bureau also intends to utilize additional funding for needed technology advancements, including an electronic billing and payment service to complement its existing ePermitting Portal.
NMED will hold a virtual public informational meeting from 4 to 6 p.m. on March 20, 2024, to review and discuss the proposed updates.
NMED has requested the EIB consider the Air Quality Bureau’s petition on March 22, 2024, with the request for a hearing in June 2024. Once the EIB agrees to hear the petition, NMED will launch the Public Comment Portal to receive written public comments on the petition that will continue through the conclusion of the EIB hearing.
A copy of the petition is available here .
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NMED does not discriminate on the basis of race, color, national origin, disability, age or sex in the administration of its programs or activities, as required by applicable laws and regulations. NMED is responsible for coordination of compliance efforts and receipt of inquiries concerning non-discrimination requirements implemented by 40 C.F.R. Parts 5 and 7, including Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975, Title IX of the Education Amendments of 1972, and Section 13 of the Federal Water Pollution Control Act Amendments of 1972. If you have any questions about this notice or any of NMED’s non-discrimination programs, policies or procedures, you may contact: Kate Cardenas , Non-Discrimination Coordinator | NMED |1190 St. Francis Dr., Suite N4050 | P.O. Box 5469 | Santa Fe, NM 87502 or (505) 827-2855 or nd.coordinator@env.nm.gov . If you believe that you have been discriminated against with respect to a NMED program or activity, you may contact the Non-Discrimination Coordinator.
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