The New Mexico Environmental Department’s (NMED) Air Quality Bureau (AQB) has petitioned the Environmental Improvement Board (EIB) to update the fees and fee structure for air quality permits in the New Mexico Administrative Code (NMAC). The AQB petition looks to properly administer and implement the requirements under the Clean Air Act 502(b)(3), 40 CFR 70.9, and to meet the EIB’s statutory obligation under NMSA 1978, Section 74-7(B)(6) to sufficiently cover the costs of the AQB’s Title V permitting program and the construction permit program.

Sources affected by potential changes in Air Quality permitting fees include facilities with the following permits:

• New Source Review (NSR)
• General Construction Permit- Oil and Gas (GCP- O&G)
• Notice of Intent (NOI)
• Title V Program

The AQB petition states that objectives of the updated costs will help decrease the time it takes for NMED to process complex permit applications, project more transparency and accountability during future permitting processes, allow for improved technical assistance for applicants, and assist in compliance assurance efforts.

The following proposed fee updates to 20.2.71 NMAC – Operating Permit Fees are as follows:

• Title V fee pollutants annual cost per ton increased to $81/ton;
• Title V Hazardous Air Pollutants (HAPs) annual cost per ton increased to $250/ton;

Additional proposed updates to 20.2.71 NMAC include an amendment to the current physical address of the AQB’s main office, the removal of requirements for and the cost per ton fee of mercury emissions, the replacement of total suspended particulate matter (TSP) with particulate matter less than PM₁₀ and PM_2.5 from the “Fee Pollutant” definition, and the establishment of language such that permittees will not be double charged for PM₁₀ and PM_2.5 emission limits with the fee being for whichever of the two emissions are higher.

The following proposed fee updates to 20.2.75 NMAC—Construction Permit Fees are as follows:

• NSR Air dispersion modeling fee increased to $15,300;
• GCP – O&G application fee increased to $25,500;
• Notice of Intent application filing fee increased to $2,000; and
• Other General Construction Permit fees remain unchanged;

The point-based fee schedule under 20.2.75.11 will be increased for air dispersion modeling reviews to 30 points and a new increased point system for reviewing GCP-O&G Permits worth 50 points will be added. Reviews for other GCPs remain unchanged. Small business fee reduction continues to be based on total emissions and average number of employees with no updates or amendments proposed in this petition.

Additional proposed updates include an amendment to the current physical address of the AQB’s main office, the identification of the accelerated review criterion including for the use of qualified outside firms, and amendments to the methods of electronic billing and payment methods.

The public hearing for this petition will commence on June 27, 2024, and will continue day-to day until completed. NMED’s public comment forum is open for comment through the conclusion of the Environmental Improvement Board Meeting.

The proposed effective date of the amendments to 20.2.71 NMAC and 20.2.75 NMAC is July 15, 2024.

If you would like to discuss the proposed updates to New Mexico’s Air Quality Permitting Fees and how they may impact your facility, please email Adam Erenstein in Trinity’s Albuquerque office or call 505.266.6611.