 | Vol. 3 No. 1 June 1995 |
| A Newsletter About New Jersey's Water Quality Programs |
The Division of Water Quality proposed amendments to the New Jersey Pollutant Discharge Elimination System (NJPDES) permit fee assessment methodology on March 20, 1995 (Cite 27 N.J.R. 1028). The proposal was the result of recommendations provided to the division by the NJPDES Fee Task Force, a group comprised of members from industry, municipal governments, NJPDES permittees, and environmental groups (see New Jersey Discharger - August 1993). The task force found some permittees were paying excessive fees, while others were paying significantly less than the cost of administering their permit.
To help provide more equity, the division and the task force developed a new minimum fee schedule based upon the actual costs associated with permit issuance, annual inspections, and data management. The new minimum fees range from the current $500 level to $6,700, depending on the complexity of the permit.
The new fee schedule is being phased in over the next three years to allow businesses sufficient time to adapt. The department will assess 60 percent of the new minimum fee in FY1995, 80 percent in FY1996 and the full minimum fee in FY1997. Minimum fees will provide approximately 25 percent of the total fees assessed, or $2.7 million, in FY1995. The remaining $8.5 million will be collected through a new simplified environmental impact formula. For municipal dischargers, this formula deletes the former complex bioassay and stream factors and replaces it with a factor based on an effluent's oxygen depleting properties. For industrial dischargers, the environmental impact formula will continue to include all limited pollutants and their associated risk factors, while several discharge categories, such as general permits, will no longer have a calculated environmental impact added to the minimum fee.
The division plans to adopt the new fee assessment methodology by June 1995, after which NJPDES permit fees for FY1995 will be assessed. Although the total amount to be assessed is the same as last year's amount, $11.2 million, permittees paying less than $1,000 last year (60 percent of all permittees) can expect higher fees due to the change in the minimum fee schedule. Despite this increase, it is important to note that the modified formula redistributes fees to provide more equity among dischargers, and does not increase the overall NJPDES budget.
The department is now in the process of further simplifying the environmental impact formula for industrial facilities, significant indirect users and ground water dischargers. If you have any suggestions regarding this, or have any questions about the new fee structure, please contact Debra Hammond at (609) 984-4428.