Compliance
Program
Fees
Briefing
for
OMB
David
Rostker
and
Rob
Strickland
EPA
Office
of
Air
and
Radiation
Office
of
Transportation
and
Air
Quality
February
26,
2004
Slide
­
2
Briefing
Summary
 
Review
existing
fee
program
 
Review
need
to
revise
regulations
 
Features
of
fees
rulemaking
 
Changes
since
proposal
 
Fees
impact
 
Schedule
 
Budget
and
revenue
considerations
Slide
­
3
Fee
Program
Review
 
Independent
Offices
Appropriations
Act
­

IOAA
1982
 
Clean
Air
Act
1990
 
OMB
Circular
A­
25
 
Fees
final
rule
1992
 
Fees
modification
with
CAP
2000
in
1999
 
Fees
modification
in
2000
for
alt.
fueled
vehicles
 
Collected
$
115
million
to
date
­
$
11
million
annually
 
Propose
to
collect
$
18
m
annually
Slide
­
4
Need
to
Revise
Fees
Regulation
 
Light­
duty
changes
since
1992
­
New
compliance
programs
(
RDP,
NLEV,
SFTP,
tier
2)

 
Heavy­
duty
in­
use
program
(
Congressional
concern)

 
Several
new
non­
road
compliance
programs
 
Large
­
diesel
(
earthmovers,
generators,
tractors,
etc.)

 
Large
­
gas
(
forklifts,
air
ground
service
equipment,

compressors)

 
Utility
engines
handheld
(
chainsaws,
weed­
wackers,

leafblowers

 
Utility
engines
non­
handheld
(
lawnmowers,
generators,
garden
tractors,
tillers)

 
Marine
­
(
boat
motors,
tugs,
watercraft,
jet­
skis)

 
Locomotive
 
Recreational
vehicles
(
off­
road
motorcycles,
snowmobiles)
Slide
­
5
Need
to
Revise
Fees
Regulation
­­­
continued
 
Laboratory
upgrades
for
new
requirements
 
MY2004
­
Tier
2
 
MY2004
&
2007
­
diesel
stds
 
Laboratory
upgrades
necessary
to
ensure
compliance
with
existing
requirements
 
Increased
or
new
testing
capability
for
HD
&
NR
at
NVFEL
 
Fee
equity
between
onroad
and
nonroad
 
Nonroad
Slide
­
6
Features
in
Rulemaking
 
Fee
Equity
 
All
regulated
industries
now
pay
fees
 
Updated
labor
costs
 
Fees
adjust
for
fluctuation
in
CPI
and
in
number
of
certificates
 
Extended
alt­
fuel
converter
waiver
provisions
Slide
­
7
Changes
since
NPRM
 
HD
HW
and
NR
CI
fees
decreased
 
Amount
of
in­
use
testing
reevaluated
 
Test
cell
costs
prorated
 
Number
of
certificates
issued
recalculated
 
Annual
fees
adjustment
for
CPI
 
Annual
adjustment
for
number
of
certs
 
Implementation
schedule
 
Reduced
fees
provision
 
No
fees
for
marine
SI
inboard/
sterndrive
Slide
­
8
EPA
Revised
Costs
by
Category
 
Fee
category
current:
proposed:
average
sales:

cost
(#
units)

final:
per
unit:

 
Light­
duty
&
fuel
economy
$
9.7
m
$
13.4
m
13.4
m
$
0.85
15.0m
 
Heavy­
duty
highway
CI&
SI
$
1.7
m
$
4.0
m
3.2
m
$
1.98
1.6m
 
Motorcycles
$
0.2
m
$
0.5
m
0.5
m
$
1.21
0.4m
 
Nonroad
CI
$
0
$
1.3
m
1.2
m
$
1.37
0.9m
 
Nonroad
SI
$
0
$
0.5
m
0.5
m
$
0.02
29.7m
 
Locomotives
$
0
$
0.01m
0.01m
$
8.49
1k
 
Others*
$
$
0.4
0.4m
 
Total
fees:
$
11.6m
$
20.1m
$
19.2m
 
Estimated
Waivers:
$
1.5m
$
1.0
m
$
1.0m
 
Anticipated
Net
Collections**
$
10.1m
$
19.1
m
$
18.2m
 
*
Includes
marine
engines,
recreational,
California
only
HD
HW
engines
 
*
*
These
numbers
can
vary
by
plus
or
minus
$
1m
as
manufacturers
consolidate
or
expand
the
number
of
engine
families
Slide
­
9
Proposed
Fees
(
per
certificate)

Version
LD
LD
Cal
only
ICI
MC
HDHW
NR­
CI
All
Other
NR
HD­
HW
Cal
only
HD­
HW
Evap
Current
Fees
$
27,211
$
8,956
$
27,211
$
840
$
12,584
$
0
$
0
$
12,584
$
2,045
Published
in
NPRM
August
2002
$
33,911
$
16,958
$
8,394
$
2,416
$
30,437
$
2,156
$
827
$
827
$
827
Final
Fees
$
33,883
$
16,944
$
8,387
$
2,414
$
21,578
$
1,822
$
826
$
826
$
826
Slide
­
10
Schedule
 
Final
rule
signature
­­
April
1
 
New
fees
begin
FY04
­­
June
1
Slide
­
11
Budget
and
Revenue
Considerations
 
Current
costs
over
$
16m
 
Current
collection
$
11m
 
Future
costs
over
$
19m
 
$
8M
in
President's
budget
for
FY
2004
 
Estimate
$
14M
fees
in
2004
 
Estimate
$
18M
fees
in
2005
Slide
­
12
OMB
Support
Needed
 
Expedite
rule
 
Support
additional
compliance
budget
because
of
fees
