Consumer Price Index Percentage Adjustments to Air Contaminant Emission Fees, and Base Fee Tables and Supplemental Fee Schedules (N.J.A.C 7:27-8.6 and 22.31)

In accordance with N.J.A.C. 7:27-22.31(j), the New Jersey Department of Environmental Protection (Department) has published a notice in the New Jersey Register of November 16, 2009 regarding the annual percentage increase in the Consumer Price Index (CPI) and the resultant per-ton emission fee for fiscal year (FY) 2010. 

The Department is also providing notice of the change in accordance with N.J.A.C. 7:27-8.6(l) of the fees in the Base Fee Tables and Supplementary Fee Schedule at N.J.A.C. 7:27-8.6; and in accordance with N.J.A.C. 7:27-22.31(u) of the fees in the Base Fee Schedule and Supplementary Fee Schedule at N.J.A.C. 7:27-22.31, for the five year period January 1, 2010 through December 31, 2014.

CPI Percentage Increase
The CPI percentage increase is used to calculate the annual emission fee. The CPI percentage increase is calculated each year using the procedure at N.J.A.C. 7:27-22.31(i). For FY 2010 (July 1, 2009 through June 30, 2010), N.J.A.C. 7:27-22.31(i) calculates the average monthly CPI (CPI-U) for the 12 month period beginning September 2008 through August 2009. Monthly CPI-U data is published by the U.S. Department of Labor. Following the procedures at N.J.A.C. 7:27-22.31(i), the CPI percentage increase for FY 2010 is 0.19 percent, and the CPI has been calculated as 175.20 percent relative to the 1989 CPI.

Air Contaminant Emission Fee
An annual emission fee must be paid by each major facility subject to N.J.A.C. 7:27-22. The annual emission fee is calculated each year according to N.J.A.C. 7:27-22.31(b), which applies the CPI adjustment to the base amount per ton of emissions.  This base amount is $60.00 per ton (N.J.S.A. 26:2C-9.5d(1)(a)). Applying the CPI adjustment since 1989 to the base amount of $60.00 per ton results in an annual emission fee for FY 2010 of $105.12. Therefore, a facility subject to this fee must multiply $105.12 times the quantity of regulated air contaminant emissions emitted in tons during calendar year 2008 (January 1, 2008 through December 31, 2008). The result is the fee the facility must submit to the Department by January 31, 2010 for FY 2010.

Invoices will be mailed to major facilities based on emissions reported in the Emission Statement submitted for calendar year 2008. Even if a major facility has not submitted an Emission Statement or received an invoice, it is obliged to pay emission fees by January 31, 2010.

Base Fees and Supplementary Fees
For the five-year period January 1, 2010 through December 31, 2014, the base and the supplementary fee schedules are adjusted according to an inflation factor based on the CPI change over the preceding five-year period and according to the procedures described in N.J.A.C. 7:27-8.6(l) and 22.31(u).  Following these procedures, the inflation factor is 16.9 percent.  Each of the fees set forth in N.J.A.C. 7:27-8.6 and 22.31(r) through (t) is multiplied by the inflation factor to determine the preliminary increase in the fee.  The preliminary increase is added to the fee, and the total is rounded up to the next five dollars to determine the final adjusted fee.  The fees are set forth at N.J.A.C. 7:27-8.6 and N.J.A.C. 7:27-22.31(v) through (x).