It is enacted by the General Assembly as follows:

SECTION 1. Sections 23-23-5 and 23-23-5.1 of the General Laws in Chapter 23-23 entitled "Air Pollution" are hereby amended to read as follows:

{ADD 23-23-5. Powers and duties of the director. -- ADD} In addition to the other powers and duties granted herein, the director shall have and may exercise the following powers and duties:

(1) To exercise general supervision of the administration and enforcement of this chapter and all rules and regulations and orders promulgated hereunder;

(2) To develop comprehensive programs, for the prevention, control, and abatement of new or existing pollution of the air resources of this state on the basis of air quality standards adopted by the environmental standards board;

(3) To advise, consult, and cooperate with the cities and towns and other agencies of the state, federal government, and other states and interstate agencies, and with effective groups in industries in furthering the purposes of this chapter;

(4) To promulgate standards of air quality adopted by the environmental standards board;

(5) To hold such hearings, to issue notices of hearings, and subpoenas requiring the attendance of such witnesses and the production of such evidence and to administer such oaths and to take such testimony as he or she may deem necessary;

(6) To encourage and conduct studies and research on air pollution and to collect and disseminate information thereon;

(7) To enter at all reasonable times in or upon any private or public property, except private residences, and to detain and inspect any motor vehicle for the purpose of inspecting or investigating any condition which the director shall believe to be either an air pollution source, or in violation of any of the rules or regulations or orders promulgated hereunder.

(8) To issue, modify, amend, or revoke such orders prohibiting or abating air pollution as are in accord with the purposes of this chapter and the rules and regulations promulgated hereunder. In making the orders hereunder authorized, the director shall consider all relevant factors including, but not limited to, population density, air pollution levels, and the character and degree of injury to health or physical property;

(9) To accept, receive, and administer grants or other funds or gifts for the purpose of carrying out any of the functions of this chapter including such moneys given under any federal law to the state for air pollution control activities, surveys, or programs;

(10) To require the prior submission and approval of plans, specifications, and other data relative to the construction, installation, and modification of air pollution control systems, devices, or any parts thereof, and to inspect such installations and modifications to insure compliance with the approved plans and to require approval to operate any such system;

(11) To require the prior submission and approval of plans, specifications, and other data relative to the construction, installation, or modification of any machine, equipment, device, article, or facility capable of becoming a source of air pollution, subject, however, to the promulgation of rules and regulations hereunder defining the classes and types of machines, equipment, devices, articles, or facilities subject to such approval;

(12) To make, issue, and amend rules and regulations consistent with this chapter for the prevention, control, abatement, and limitation of air pollution, and the enforcement of orders issued hereunder. Those rules and regulations for the control of pollution need not be uniform throughout the state. The director may prohibit emissions, discharges and/or releases and may require specific control technology. In addition, the director may regulate the emission characteristics of all fuels used by stationary and mobile sources of air contaminants, provided however, such specific control technology and emission characteristics of fuels shall not be more stringent than the mandatory standards established by federal law or regulation, unless it can be shown that such control technology and emission characteristics of fuels are needed for the attainment or maintenance of air quality standards. Variations thereof may be based on considerations of population density, meteorological conditions, contaminant emissions, air quality, land development plans, and such other factors which may be relevant to the protection of the air resources of the state;

(13) To consult the board on the policies and plans for the control and prevention of air pollution;

(14) To exercise all incidental powers necessary to carry out the purposes of this chapter;

(15) To require that an approval to operate be obtained for any machine, equipment, device, article, or facility, or any source which is emitting any extremely toxic air contaminant, subject, however, to the promulgation of rules and regulations hereunder defining the categories and capacities of machines, equipment, devices, articles, or facilities subject to such permission. Any approval issued may set forth inspection, monitoring, compliance certification and reporting requirements to assure compliance with approval terms and conditions.

(16) To require any person who owns or operates any machine, equipment, device, article, or facility which has the potential to emit any air contaminant, or which is emitting any extremely toxic air contaminant, to install, maintain, and use air pollution emission monitoring devices and to submit periodic reports on the nature and amounts of air contaminant emission from such machine, equipment, device, article, or facility;

(17) To require, as a condition, to the grant of any approval, license, or permit required by this chapter, that the person applying for such approval, license, or permit, first pay to the director a reasonable fee based on the costs of reviewing and acting upon such application and based on the costs of implementing and enforcing the terms of such approval, license, or permit.

(18) In addition, the director shall collect an annual operating fee from sources subject to the requirements of an approval to operate under this chapter {ADD and subject to the requirements of title V of the Clean Air Amendments of 1990 ADD} . Such a fee shall be calculated by the director on a weight basis for pollutants {DEL} potentially DEL} {ADD actually ADD} emitted {ADD , after controls ADD} . This {DEL} initial DEL} operating fee shall {ADD be determined by regulation and shall ADD} be consistent with the fee required under {DEL} section 502(B)(3)(B)(i) of the Clean Air Act amendments of 1990 [42 U.S.C. sections 7401 -- 7671q] DEL} , {ADD section 502(b)(3)(B). ADD} {ADD The operating fees collected shall not be in excess of the amount needed to cover all reasonable (direct and indirect) costs required to develop and administer an operating permit program pursuant to the requirements of title V, of the Clean Air Act amendments of 1990. ADD} {DEL} The above referenced initial operating fee shall be increased by operation of this statute on an annual basis commencing after the year of the enactment of the federal clean air act amendments of 1990 by the percentage, if any, by which the consumer price index for the most recent calendar year ending before the beginning of such year exceeds the consumer price index for the calendar year of 1989. DEL}

(19) No person shall operate any machine, facility or device which is subject to approval or permit by the department without an approval or permit of the department. No source may operate after an approval or permit has been denied. Any approval or permit issued under this section may be suspended, revoked or amended by the director at any time upon a showing, after notice and hearing, that the permittee has failed to comply with the provisions of this chapter, rules and regulations promulgated by the director pursuant to this chapter, or the terms and conditions of the approval or permit, or upon a showing, after notice and hearing, that the continued operation of the approved or permitted source constitutes a threat to the health and safety of the public or to the environment. In any proceeding for revocation, suspension, or amendment of an approval or permit pursuant to this subsection, the director will provide the affected party with the opportunity for an adequate hearing. No revocation, annulment, or withdrawal of any approval or permit is lawful unless, the agency sent notice by mail to the permittee or possessor of an approval of the facts or conduct or violation which warrant the action, and the permittee or possessor of an approval is given an opportunity at hearing to show compliance with all lawful requirements for the retention of the license. If the agency finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of approval or permit may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.

(20) No approval or permit required under this chapter shall be issued by the director if such approval or permit contains provisions that are determined by the administrator of the environmental protection agency not to be in compliance with the requirements of the federal clean air act (42 USC 7401 et seq. as amended). The administrator of the EPA shall provide a statement of the reasons for the objection to the director. A copy of the objection and statement shall be provided to the applicant. The director shall withhold such issuance of the approval or permit until the applicant has successfully satisfied the concerns of the administrator of EPA or his designee.

(21) The department may establish a small business stationary source technical and environmental compliance assistance program. The department may use the restricted receipt account established under section 23-23-5.1 to cover the cost of administering such a program. The department shall have the power to give grants, and conduct educational and/or outreach programs.

(22) To promulgate regulations to apply at the earliest to the 1993 model year and beyond, relating to emission standards for new motor vehicles and new motor vehicle engines, warranties for motor vehicles and motor vehicle parts, recall of motor vehicles, accreditation of motor vehicle parts, and any other matters relating to the enforcement of such regulations, provided however, any such regulations so promulgated shall not be more stringent than the mandatory standards established by federal law or regulation, unless such regulations are needed for the attainment or maintenance of air quality standards.

(23) Nothing herein shall allow the department to administer an inspection and maintenance program for automobiles without approval of the general assembly.

(24) In addition to the powers and duties enumerated in this section, the director shall have all appropriate power to adopt rules, regulations, procedures, programs, and standards as mandated by the authorization of the federal clean air act (42 USC 7401 et seq., as amended).

{DEL} 23-23-5.1. Fund created. -- DEL} {ADD 23-23-5.1. Funds created. -- ADD} {ADD (1) ADD} There is established a separate fund within the general fund to be called the state clean air fund which shall be administered by the general treasurer in accordance with the same laws and fiscal procedures as the general funds of the state. The funds shall consist of such sums as the director collects pursuant to the civil penalties, administrative penalties, criminal penalties, and all sums and fees collected pursuant to all aspects of the air pollution program {ADD except operating fees collected pursuant to section 23-23-5(18) ADD} . These funds are hereby appropriated to the director to be used exclusively to cover all direct and indirect costs associated with administering the air pollution program under the provisions of this chapter.

{ADD (2) There is established a separate fund within the general fund to be called the clean air operating permit fee fund which shall be administered by the general treasurer in accordance with the same laws and fiscal procedures as the general funds of the state. The funds shall consist of operating fees the director collects pursuant to section 23-23-5(18) of this chapter. These funds are hereby appropriated to the director to be used exclusively to cover all reasonable (direct and indirect) costs required to develop and administer an operating permit program pursuant to the requirements of title V, of the Clean Air Act amendments of 1990. Any surplus in the clean air operating permit fee fund shall remain in the fund and be considered in establishing the amount of the operating fee to be determined by regulation under section 23-23-5(18) of this chapter. ADD}

SECTION 2. Chapter 23-23 of the General Laws entitled "Air Pollution" is hereby amended by adding thereto the following section:

{ADD 23-23-5.3. Advisory commission created. -- ADD} {ADD There is hereby created an operating permits advisory commission. The advisory commission shall consist of the director of the department of environmental management, or his/her designee, and six (6) additional members who shall be appointed as follows: three (3) members by the governor, two (2) of whom shall be members of the regulated community, and one (1) of whom shall be a member of an environmental citizens group registered as a nonbusiness corporation in the state of Rhode Island; one (1) by the speaker of the house; one (1) by the senate majority leader; and one (1) jointly by the house minority leader and the senate minority leader, who shall be a member of the minority party. A chair and vice chair shall be elected by the members of the commission. The director of the department of environmental management shall be the secretary of the advisory commission.

The duties of the operating permits advisory commission shall be to review, advise and evaluate the collection of operating fees pursuant to section 23-23-5(18) and the development and administration of the operating permit program. The commission shall conduct or commission an annual program review. The annual program review shall, at a minimum, examine staffing and resource needs, permit program efficiency, and cost requirements. The cost of conducting the activities of the advisory commission, including the cost of the annual program review, shall be paid from the clean air operating permit fee fund. The commission shall meet quarterly. The advisory commission shall have the authority to request and obtain all information from the department necessary to perform its responsibilities. ADD}

SECTION 3. This act shall take effect upon passage.