Enrolled Copy H.B. 85 1 Environmental Permitting Modifications 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Tyler Clancy Senate Sponsor: Ronald M. Winterton 2 3 LONG TITLE 4 General Description: 5 This bill addresses provisions related to environmental permitting. 6 Highlighted Provisions: 7 This bill: 8 ▸ requires the Division of Air Quality (division) to: 9 ● develop and publish guidance and rules related to federal plantwide applicability 10 limitations; 11 ● review the division's rules related to permit by rule registration; 12 ● include at least five new categories of sources in the division's permit by rule 13 program; and 14 ● report to the Natural Resources, Agriculture, and Environment Interim Committee the 15 results of the division's review of the permit by rule program; 16 ▸ adds a repeal date for the sections related to plantwide applicability limitations and permit 17 by rule registration; and 18 ▸ makes technical and conforming changes. 19 Money Appropriated in this Bill: 20 None 21 Other Special Clauses: 22 None 23 Utah Code Sections Affected: 24 AMENDS: 25 19-1-201, as last amended by Laws of Utah 2024, Chapter 178 26 19-2-102, as last amended by Laws of Utah 2015, Chapter 154 27 19-2-109.1, as last amended by Laws of Utah 2020, Chapter 256 28 63I-1-219, as last amended by Laws of Utah 2024, Third Special Session, Chapter 5 H.B. 85 Enrolled Copy 29 ENACTS: 30 19-2-109.6, Utah Code Annotated 1953 31 19-2-109.7, Utah Code Annotated 1953 32 33 Be it enacted by the Legislature of the state of Utah: 34 Section 1. Section 19-1-201 is amended to read: 35 19-1-201 . Powers and duties of department -- Rulemaking authority -- 36 Committee -- Monitoring environmental impacts of inland port. 37 (1) The department shall: 38 (a) enter into cooperative agreements with the Department of Health and Human 39 Services to delineate specific responsibilities to assure that assessment and 40 management of risk to human health from the environment are properly administered; 41 (b) consult with the Department of Health and Human Services and enter into 42 cooperative agreements, as needed, to ensure efficient use of resources and effective 43 response to potential health and safety threats from the environment, and to prevent 44 gaps in protection from potential risks from the environment to specific individuals 45 or population groups; 46 (c) coordinate implementation of environmental programs to maximize efficient use of 47 resources by developing, in consultation with local health departments, a 48 Comprehensive Environmental Service Delivery Plan that: 49 (i) recognizes that the department and local health departments are the foundation for 50 providing environmental health programs in the state; 51 (ii) delineates the responsibilities of the department and each local health department 52 for the efficient delivery of environmental programs using federal, state, and local 53 authorities, responsibilities, and resources; 54 (iii) provides for the delegation of authority and pass through of funding to local 55 health departments for environmental programs, to the extent allowed by 56 applicable law, identified in the plan, and requested by the local health 57 department; and 58 (iv) is reviewed and updated annually; 59 (d) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative 60 Rulemaking Act, as follows: 61 (i) for a board created in Section 19-1-106, rules regarding: 62 (A) board meeting attendance; and - 2 - Enrolled Copy H.B. 85 63 (B) conflicts of interest procedures; and 64 (ii) procedural rules that govern: 65 (A) an adjudicative proceeding, consistent with Section 19-1-301; and 66 (B) a special adjudicative proceeding, consistent with Section 19-1-301.5; 67 (e) ensure that training or certification required of a public official or public employee, 68 as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter 69 22, State Training and Certification Requirements, if the training or certification is 70 required: 71 (i) under this title; 72 (ii) by the department; or 73 (iii) by an agency or division within the department; and 74 (f) subject to Subsection (2), establish annual fees that conform with Title V of the Clean 75 Air Act for each regulated pollutant as defined in Section 19-2-109.1, applicable to a 76 source subject to the Title V program. 77 (2)(a) A fee established under Subsection (1)(f) is in addition to a fee assessed under 78 Subsection (6)(i) for issuance of an approval order. 79 (b) In establishing a fee under Subsection (1)(f), the department shall comply with 80 Section 63J-1-504 that requires a public hearing and requires the established fee to be 81 submitted to the Legislature for the Legislature's approval as part of the department's 82 annual appropriations request. 83 (c) A fee established under this section shall cover the reasonable direct and indirect 84 costs required to develop and administer the Title V program and the small business 85 assistance program established under Section 19-2-109.2. 86 (d) A fee established under Subsection (1)(f) shall be established for all sources subject 87 to the Title V program and for all regulated pollutants. 88 (e) An emission fee may not be assessed for a regulated pollutant if the emissions are 89 already accounted for within the emissions of another regulated pollutant. 90 (f) An emission fee may not be assessed for any amount of a regulated pollutant emitted 91 by any source in excess of 4,000 tons per year of that regulated pollutant. 92 (g) An emission fee shall be based on actual emissions for a regulated pollutant unless a 93 source elects, before the issuance or renewal of a permit, to base the fee during the 94 period of the permit on allowable emissions for that regulated pollutant. 95 (h) The fees collected by the department under Subsection (1)(f) and penalties collected 96 under Subsection [19-2-109.1(4)] 19-2-109.1(3) shall be deposited into the General - 3 - H.B. 85 Enrolled Copy 97 Fund as the Air Pollution Operating Permit Program dedicated credit to be used 98 solely to pay for the reasonable direct and indirect costs incurred by the department 99 in developing and administering the program and the small business assistance 100 program under Section 19-2-109.2. 101 (3) The department shall establish a committee that consists of: 102 (a) the executive director or the executive director's designee; 103 (b) two representatives of the department appointed by the executive director; and 104 (c) three representatives of local health departments appointed by a group of all the local 105 health departments in the state. 106 (4)(a) The committee established in Subsection (3) shall: 107 (i) review the allocation of environmental quality resources between the department 108 and the local health departments, including whether funds allocated by contract 109 were allocated in accordance with the formula described in Section 26A-1-116; 110 (ii) evaluate rules and department policies that affect local health departments in 111 accordance with Subsection (4)(b); 112 (iii) consider policy changes proposed by the department or by local health 113 departments; 114 (iv) coordinate the implementation of environmental quality programs to maximize 115 environmental quality resources; and 116 (v) review each department application for any grant from the federal government 117 that affects a local health department before the department submits the 118 application. 119 (b) When evaluating a policy or rule that affects a local health department, the 120 committee shall: 121 (i) compute an estimate of the cost a local health department will bear to comply with 122 the policy or rule; 123 (ii) specify whether there is any funding provided to a local health department to 124 implement the policy or rule; and 125 (iii) advise whether the policy or rule is still needed. 126 (c) Before November 1 of each year, the department shall provide a report to the Rules 127 Review and General Oversight Committee regarding the determinations made under 128 Subsection (4)(b). 129 (5) The committee shall create bylaws to govern the committee's operations. 130 (6) The department may: - 4 - Enrolled Copy H.B. 85 131 (a) investigate matters affecting the environment; 132 (b) investigate and control matters affecting the public health when caused by 133 environmental hazards; 134 (c) prepare, publish, and disseminate information to inform the public concerning issues 135 involving environmental quality; 136 (d) establish and operate programs, as authorized by this title, necessary for protection of 137 the environment and public health from environmental hazards; 138 (e) use local health departments in the delivery of environmental health programs to the 139 extent provided by law; 140 (f) enter into contracts with local health departments or others to meet responsibilities 141 established under this title; 142 (g) acquire real and personal property by purchase, gift, devise, and other lawful means; 143 (h) prepare and submit to the governor a proposed budget to be included in the budget 144 submitted by the governor to the Legislature; 145 (i) in accordance with Section 63J-1-504, establish a schedule of fees that may be 146 assessed for actions and services of the department that are reasonable, fair, and 147 reflect the cost of services provided; 148 (j) for an owner or operator of a source subject to a fee established by Subsection (6)(i) 149 who fails to timely pay that fee, assess a penalty of not more than 50% of the fee, in 150 addition to the fee, plus interest on the fee computed at 12% annually; 151 (k) prescribe by rule reasonable requirements not inconsistent with law relating to 152 environmental quality for local health departments; 153 (l) perform the administrative functions of the boards established by Section 19-1-106, 154 including the acceptance and administration of grants from the federal government 155 and from other sources, public or private, to carry out the board's functions; 156 (m) upon the request of a board or a division director, provide professional, technical, 157 and clerical staff and field and laboratory services, the extent of which are limited by 158 the money available to the department for the staff and services; and 159 (n) establish a supplementary fee, not subject to Section 63J-1-504, to provide service 160 that the person paying the fee agrees by contract to be charged for the service to 161 efficiently use department resources, protect department permitting processes, 162 address extraordinary or unanticipated stress on permitting processes, or make use of 163 specialized expertise. 164 (7) In providing service under Subsection (6)(n), the department may not provide service in - 5 - H.B. 85 Enrolled Copy 165 a manner that impairs another person's service from the department. 166 (8)(a) As used in this Subsection (8): 167 (i) "Environmental impacts" means: 168 (A) impacts on air quality, including impacts associated with air emissions; and 169 (B) impacts on water quality, including impacts associated with storm water 170 runoff. 171 (ii) "Inland port" means the same as that term is defined in Section 11-58-102. 172 (iii) "Inland port area" means the area in and around the inland port that bears the 173 environmental impacts of destruction, construction, development, and operational 174 activities within the inland port. 175 (iv) "Monitoring facilities" means: 176 (A) for monitoring air quality, a sensor system consisting of monitors to measure 177 levels of research-grade particulate matter, ozone, and oxides of nitrogen, and 178 data logging equipment with internal data storage that are interconnected at all 179 times to capture air quality readings and store data; and 180 (B) for monitoring water quality, facilities to collect groundwater samples, 181 including in existing conveyances and outfalls, to evaluate sediment, metals, 182 organics, and nutrients due to storm water. 183 (b) The department shall: 184 (i) develop and implement a sampling and analysis plan to: 185 (A) characterize the environmental baseline for air quality and water quality in the 186 inland port area; 187 (B) characterize the environmental baseline for only air quality for the Salt Lake 188 International Airport; and 189 (C) define the frequency, parameters, and locations for monitoring; 190 (ii) establish and maintain monitoring facilities to measure the environmental impacts 191 in the inland port area arising from destruction, construction, development, and 192 operational activities within the inland port; 193 (iii) publish the monitoring data on the department's website; and 194 (iv) provide at least annually before November 30 a written report summarizing the 195 monitoring data to: 196 (A) the Utah Inland Port Authority board, established under Title 11, Chapter 58, 197 Part 3, Port Authority Board; and 198 (B) the Legislative Management Committee. - 6 - Enrolled Copy H.B. 85 199 Section 2. Section 19-2-102 is amended to read: 200 19-2-102 . Definitions. 201 As used in this chapter: 202 (1) "1990 Clean Air Act" means the federal Clean Air Act as amended in 1990. 203 [(1)] (2) "Air pollutant" means a substance that qualifies as an air pollutant as defined in 42 204 U.S.C. Sec. 7602. 205 [(2)] (3) "Air pollutant source" means private and public sources of emissions of air 206 pollutants. 207 [(3)] (4) "Air pollution" means the presence of an air pollutant in the ambient air in the 208 quantities, for a duration, and under the conditions and circumstances that are injurious 209 to human health or welfare, animal or plant life, or property, or would unreasonably 210 interfere with the enjoyment of life or use of property, as determined by the rules 211 adopted by the board. 212 [(4)] (5) "Ambient air" means that portion of the atmosphere, external to buildings, to which 213 the general public has access. 214 [(5)] (6) "Asbestos" means the asbestiform varieties of serpentine (chrysotile), riebeckite 215 (crocidolite), cummingtonite-grunerite, anthophyllite, actinolite-tremolite, and libby 216 amphibole. 217 [(6)] (7) "Asbestos-containing material" means a material containing more than 1% 218 asbestos, as determined using the method adopted in 40 C.F.R. Part 61, Subpart M, 219 National Emission Standard for Asbestos. 220 [(7)] (8) "Asbestos inspection" means an activity undertaken to determine the presence or 221 location, or to assess the condition of, asbestos-containing material or suspected 222 asbestos-containing material, whether by visual or physical examination, or by taking 223 samples of the material. 224 [(8)] (9) "Board" means the Air Quality Board. 225 [(9)] (10) "Clean school bus" means the same as that term is defined in 42 U.S.C. Sec. 226 16091. 227 [(10)] (11) "Director" means the director of the Division of Air Quality. 228 [(11)] (12) "Division" means the Division of Air Quality created in Section 19-1-105. 229 (13) "EPA" means the federal Environmental Protection Agency. 230 [(12)] (14) "Friable asbestos-containing material" means a material containing more than 231 1% asbestos, as determined using the method adopted in 40 C.F.R. Part 61, Subpart M, 232 National Emission Standard for Asbestos, that hand pressure can crumble, pulverize, or - 7 - H.B. 85 Enrolled Copy 233 reduce to powder when dry. 234 [(13)] (15) "Indirect source" means a facility, building, structure, or installation which 235 attracts or may attract mobile source activity that results in emissions of a pollutant for 236 which there is a national standard. 237 (16) "Operating permit" means a permit issued by the director to sources of air pollution 238 that meet the requirements of Titles IV and V of the 1990 Clean Air Act. 239 (17) "Regulated pollutant" means the same as that term is defined in Title V of the 1990 240 Clean Air Act and implementing federal regulations. 241 Section 3. Section 19-2-109.1 is amended to read: 242 19-2-109.1 . Operating permit required -- Fees -- Implementation. 243 [(1) As used in this section and Sections 19-2-109.2 and 19-2-109.3:] 244 [(a) "1990 Clean Air Act" means the federal Clean Air Act as amended in 1990.] 245 [(b) "EPA" means the federal Environmental Protection Agency.] 246 [(c) "Operating permit" means a permit issued by the director to sources of air pollution 247 that meet the requirements of Titles IV and V of the 1990 Clean Air Act.] 248 [(d) "Program" means the air pollution operating permit program established under this 249 section to comply with Title V of the 1990 Clean Air Act.] 250 [(e) "Regulated pollutant" means the same as that term is defined in Title V of the 1990 251 Clean Air Act and implementing federal regulations.] 252 [(2)] (1) A person may not operate a source of air pollution required to have a permit under 253 Title V of the 1990 Clean Air Act without having obtained an operating permit from the 254 director under procedures the board establishes by rule. 255 [(3)] (2)(a) Operating permits issued under this section shall be for a period of five years 256 unless the director makes a written finding, after public comment and hearing, and 257 based on substantial evidence in the record, that an operating permit term of less than 258 five years is necessary to protect the public health and the environment of the state. 259 (b) The director may issue, modify, or renew an operating permit only after providing 260 public notice, an opportunity for public comment, and an opportunity for a public 261 hearing. 262 (c) The director shall, in conformity with the 1990 Clean Air Act and implementing 263 federal regulations, revise the conditions of issued operating permits to incorporate 264 applicable federal regulations in conformity with Section 502(b)(9) of the 1990 Clean 265 Air Act, if the remaining period of the permit is three or more years. 266 (d) The director may terminate, modify, revoke, or reissue an operating permit for cause. - 8 - Enrolled Copy H.B. 85 267 [(4)] (3) If the owner or operator of a source subject to this section fails to timely pay a fee 268 established under Subsection 19-1-201(1)(f), the director may: 269 (a) impose a penalty of not more than 50% of the fee, in addition to the fee, plus interest 270 on the fee computed at 12% annually; or 271 (b) revoke the operating permit. 272 [(5)] (4) The owner or operator of a source subject to this section may contest a fee 273 assessment or associated penalty in an adjudicative hearing under the Title 63G, Chapter 274 4, Administrative Procedures Act, and Section 19-1-301, as provided in this Subsection [ 275 (5)] (4). 276 (a) The owner or operator shall pay the fee under protest before being entitled to a 277 hearing. Payment of a fee or penalty under protest is not a waiver of the right to 278 contest the fee or penalty under this section. 279 (b) A request for a hearing under this Subsection [(5)] (4) shall be made after payment of 280 the fee and within six months after the fee was due. 281 [(6)] (5) To reinstate an operating permit revoked under Subsection [(4)] (3) the owner or 282 operator shall pay the outstanding fees, a penalty of not more than 50% of outstanding 283 fees, and interest on the outstanding fees computed at 12% annually. 284 [(7)] (6) Failure of the director to act on an operating permit application or renewal is a final 285 administrative action only for the purpose of obtaining judicial review by any of the 286 following persons to require the director to take action on the permit or the permit's 287 renewal without additional delay: 288 (a) the applicant; 289 (b) a person who participated in the public comment process; or 290 (c) a person who could obtain judicial review of that action under applicable law. 291 Section 4. Section 19-2-109.6 is enacted to read: 292 19-2-109.6 . Plantwide applicability limitation -- Publication of guidance 293 required -- Report to committee -- Rulemaking. 294 (1) As used in this section: 295 (a) "Facility" means any building, structure, or installation that emits or may emit an air 296 pollutant. 297 (b) "Plantwide applicability limitation" means the same as that term is defined in 40 298 C.F.R. Sec. 52.21. 299 (2) The director shall, in conformity with the 1990 Clean Air Act and implementing federal 300 regulations: - 9 - H.B. 85 Enrolled Copy 301 (a) develop written guidance on plantwide applicability limitations: 302 (i) consistent with the EPA's Guidance on Plantwide Applicability Limitation 303 Provisions Under the New Source Review Regulations Memorandum, dated 304 August 4, 2020; 305 (ii) describing the benefits and advantages for a facility that may qualify for a 306 plantwide applicability limitation; 307 (iii) considering examples of relevant guidance materials published in other states; 308 and 309 (iv) considering examples of relevant programs implemented in other states; 310 (b) make rules on plantwide applicability limitations in accordance with Title 63G, 311 Chapter 3, Utah Administrative Rulemaking Act: 312 (i) establishing an application procedure for obtaining a plantwide applicability 313 limitation; 314 (ii) establishing the circumstances under which a plantwide applicability limitation 315 may be reopened and adjusted; 316 (iii) ensuring the division receives input from a facility when the facility's plantwide 317 applicability limitation is modified or reopened; 318 (iv) requiring public participation when a facility subject to a plantwide applicability 319 limitation is reopened; and 320 (v) in contrast to 40 C.F.R. Sec. 51.166(w)(10)(iv)(b), requiring the director to renew 321 a plantwide applicability limitation at the same level if the emissions level 322 calculated upon renewal in accordance with 40 C.F.R. Sec. 51.166(w)(6) is equal 323 to or greater than 80% of the existing plantwide applicability limitation level; 324 (c) publish the guidance described in Subsection (2)(a) on the division's website in a 325 manner that is easily accessible to members of industry and the public; 326 (d) identify any facilities in the state that may benefit from a plantwide applicability 327 limitation and share with the facilities the guidance described in Subsection (2)(a); 328 and 329 (e) upon request by a facility, provide individual consultation on how to apply for a 330 plantwide applicability limitation. 331 (3) On or before November 30 of each year, the division shall submit a report to the Natural 332 Resources, Agriculture, and Environment Interim Committee: 333 (a) detailing the status of facilities adopting a plantwide applicability limitation in the 334 state, including the number of plantwide applicability limitation applications - 10 - Enrolled Copy H.B. 85 335 approved and rejected; and 336 (b) recommending improvements to the plantwide applicability limitation program. 337 (4) The division may make rules to implement the provisions of this section in accordance 338 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. 339 Section 5. Section 19-2-109.7 is enacted to read: 340 19-2-109.7 . Permit by rule registration expansion study. 341 (1) As used in this section: 342 (a) "Permit by rule" means a permitting or registration process in which a stationary 343 source submits a written registration notice to the director to exempt the stationary 344 source from the requirement to obtain an approval order. 345 (b) "Permit by rule" includes a permitting or registration process designed to exempt a 346 category of similar stationary sources from the requirement to obtain an approval 347 order. 348 (2) The division shall conduct a study on the feasibility of expanding the division's permit 349 by rule program by: 350 (a) reviewing successful permit by rule programs in other states; 351 (b) identifying potential categories of sources suitable for inclusion in the permit by rule 352 program, including: 353 (i) abrasive cleaning; 354 (ii) aggregate processing; 355 (iii) asphalt plants; 356 (iv) auto body refinishing shops; 357 (v) boilers and combustion devices; 358 (vi) concrete batch plants; 359 (vii) crushing and screening operations; 360 (viii) degreasing operations; 361 (ix) dry cleaning; 362 (x) dust control; 363 (xi) emergency generators, pumps, and compressors; 364 (xii) fuel dispensing; 365 (xiii) internal combustion engines; 366 (xiv) mineral processing; 367 (xv) natural gas-fired boilers and heaters; 368 (xvi) printing operations; - 11 - H.B. 85 Enrolled Copy 369 (xvii) sand and gravel operations; 370 (xviii) surface coating; 371 (xix) landfills; and 372 (xx) wood processing; and 373 (c) assessing the environmental and economic impacts of expanding the program. 374 (3) On or before November 30, 2025, the division shall: 375 (a) make rules to include at least five categories of sources listed in Subsection (2)(b) in 376 the division's permit by rule program in accordance with Title 63G, Chapter 3, Utah 377 Administrative Rulemaking Act; and 378 (b) report to the Natural Resources, Agriculture, and Environment Interim Committee: 379 (i) the division's recommendations for expanding the permit by rule program, 380 including: 381 (A) the addition of new categories of sources, if any, to the program; and 382 (B) changes to statute or rules necessary to implement the program; and 383 (ii) the estimated impacts of expanding the permit by rule program on: 384 (A) air quality; 385 (B) permitting efficiency; and 386 (C) regulated sources. 387 Section 6. Section 63I-1-219 is amended to read: 388 63I-1-219 . Repeal dates: Title 19. 389 (1) Title 19, Chapter 2, Air Conservation Act, is repealed July 1, 2029. 390 (2) Section 19-2-109.6, Plantwide applicability limitation -- Publication of guidance 391 required -- Report to committee -- Rulemaking, is repealed July 1, 2026. 392 (3) Section 19-2-109.7, Permit by rule registration expansion study, is repealed July 1, 2026. 393 [(2)] (4) Title 19, Chapter 4, Safe Drinking Water Act, is repealed July 1, 2029. 394 [(3)] (5) Section 19-4-115, Drinking water quality in schools and child care centers, is 395 repealed July 1, 2027. 396 [(4)] (6) Title 19, Chapter 5, Water Quality Act, is repealed July 1, 2029. 397 [(5)] (7) Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act, is repealed July 1, 398 2029. 399 [(6)] (8) Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation Act, is repealed July 400 1, 2030. 401 [(7)] (9) Title 19, Chapter 6, Part 4, Underground Storage Tank Act, is repealed July 1, 2028. 402 [(8)] (10) Title 19, Chapter 6, Part 6, Lead Acid Battery Disposal, is repealed July 1, 2026. - 12 - Enrolled Copy H.B. 85 403 [(9)] (11) Title 19, Chapter 6, Part 7, Used Oil Management Act, is repealed July 1, 2029. 404 [(10)] (12) Title 19, Chapter 6, Part 8, Waste Tire Recycling Act, is repealed July 1, 2030. 405 [(11)] (13) Title 19, Chapter 6, Part 10, Mercury Switch Removal Act, is repealed July 1, 406 2027. 407 Section 7. Effective Date. 408 This bill takes effect on May 7, 2025. - 13 -