NJDEP Major Facility Annual Emission Fees and Reconstruction Threshold Amounts

The New Jersey Department of Environmental Protection (NJDEP) is providing advance notification to affected facilities regarding upcoming changes to the major facility annual emission fees and the reconstruction threshold amount for fiscal year (FY) 2019.

In accordance with N.J.A.C. 7:27-22.31(j), the NJDEP has published a notice of the annual percentage increase in the Consumer Price Index (CPI) relative to the 1989 CPI and the resultant per-ton emission fee for FY 2019 in the November 19, 2018 New Jersey Register. In addition, consistent with N.J.A.C. 7:27-8.23(a)2, the NJDEP has published the CPI adjusted threshold dollar amount for FY 2019 for reconstruction of a significant source operation.

CPI Percentage Increase for Annual Emission Fee

The annual emission fee, paid by each major facility subject to N.J.A.C. 7:27-22, is calculated each year according to N.J.A.C. 7:27-22.31(b), which applies the CPI percentage increase to a base amount per ton of emissions. For FY 2019, the NJDEP calculated the CPI percentage increase as 2.42 percent, resulting in an annual emission fee of $122.45 per ton of regulated emissions.

NOTE: A facility subject to this fee must multiply $122.45 times the quantity of regulated air contaminant emissions (VOC, NOx, CO, SO2, highest TPY of TSP, PM10, or PM 2.5) emitted in tons during calendar year 2017 (January 1 through December 31, 2017). The result is the fee the facility must submit to the Department by January 31, 2019. Invoices are being mailed to major facilities based on emissions reported in the Emission Statement submitted for calendar year 2017.

CPI Percentage Increase for Threshold Dollar Amount for Reconstruction 

A reconstruction is a replacement of part(s) of a significant source included in a process unit, or the replacement of part(s) of a control apparatus, if the fixed capital cost of replacing the part(s) exceeds amounts specified in N.J.A.C. 7:27-8.23 and N.J.A.C. 7:27-22.1.

The CPI percentage increase for reconstruction of a significant source operation is calculated each year consistent with N.J.A.C. 7:27-8.23(a)2. Applying the CPI adjustment of 65.00 percent, relative to the 1995 CPI, to the base amount of $80,000 results in the threshold dollar amount of $132,000.00 for FY 2019. A facility must use this dollar amount when calculating reconstruction thresholds relative to fixed capital cost.