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2004 SESSION


CHAPTER 249
An Act to amend and reenact §§ 10.1-1322, 10.1-1402, 10.1-1402.1, as it shall become effective July 1, 2004, and § 62.1-44.15:6, as it is currently effective until July 1, 2004, of the Code of Virginia, and to amend and reenact the third enactment of Chapter 822 of the Acts of Assembly of 2002 as it applies to § 62.1-44.15:6 of the Code of Virginia, and to amend the Code of Virginia by adding a section numbered 10.1-1402.1:1, relating to environmental permit fees.
[S 365]
Approved March 31, 2004

Be it enacted by the General Assembly of Virginia:

1. That §§ 10.1-1322, 10.1-1402, 10.1-1402.1, as it shall become effective July 1, 2004, and § 62.1-44.15:6, as it is currently effective until July 1, 2004, of the Code of Virginia are amended and reenacted and the Code of Virginia is amended by adding a section 10.1-1402.1:1 as follows:

§ 10.1-1322. Permits.

A. Pursuant to regulations adopted by the Board, permits may be issued, amended, revoked or terminated and reissued by the Department and may be enforced under the provisions of this chapter in the same manner as regulations and orders. Failure to comply with any condition of a permit shall be considered a violation of this chapter and investigations and enforcement actions may be pursued in the same manner as is done with regulations and orders of the Board under the provisions of this chapter.

B. The Board by regulation may prescribe and provide for the payment and collection of annual permit program fees for air pollution sources. Annual permit program fees shall not be collected until (i) the federal Environmental Protection Agency approves the Board's operating permit program established pursuant to Title V of the federal Clean Air Act or (ii) the Governor determines that such fees are needed earlier to maintain primacy over the program. The annual fees shall be based on the actual emissions (as calculated or estimated) of each regulated pollutant, as defined in § 502 of the federal Clean Air Act, in tons per year, not to exceed 4,000 tons per year of each pollutant for each source. The annual permit program fees shall not exceed a base year amount of twenty-five dollars $25 per ton using 1990 as the base year, and shall be adjusted annually by the Consumer Price Index as described in § 502 of the federal Clean Air Act. Permit program fees for air pollution sources who receive state operating permits in lieu of Title V operating permits shall be paid in the first year and thereafter shall be paid biennially. The fees shall approximate the direct and indirect costs of administering and enforcing the permit program, and of administering the small business stationary source technical and environmental compliance assistance program as required by the federal Clean Air Act. The Board shall also collect permit application fee amounts not to exceed $30,000 from applicants for a permit for a new major stationary source. The permit application fee amount paid shall be credited towards the amount of annual fees owed pursuant to this section during the first two years of the source's operation. The fees shall be exempt from statewide indirect costs charged and collected by the Department of Accounts.

C. When adopting regulations for permit program fees for air pollution sources, the Board shall take into account the permit fees charged in neighboring states and the importance of not placing existing or prospective industry in the Commonwealth at a competitive disadvantage.

D. On January 1, 1993, and December 1 of every even-numbered year thereafter, the Department shall make an evaluation of the implementation of the permit fee program and provide this evaluation in writing to the Senate Committee on Agriculture, Conservation and Natural Resources, the Senate Committee on Finance, the House Committee on Appropriations, the House Committee on Conservation Agriculture, Chesapeake and Natural Resources and the House Committee on Finance. This evaluation shall include a report on the total fees collected, the amount of general funds allocated to the Department, the Department's use of the fees and the general funds, the number of permit applications received, the number of permits issued, the progress in eliminating permit backlogs, and the timeliness of permit processing.

E. To the extent allowed by federal law and regulations, priority for utilization of permit fees shall be given to cover the costs of processing permit applications in order to more efficiently issue permits.

F. Fees collected pursuant to this section shall not supplant or reduce in any way the general fund appropriation to the Department.

G. The permit fees shall apply to permit programs in existence on July 1, 1992, any additional permit programs which that may be required by the federal government and administered by the Board, or any new permit program required by the Code of Virginia.

H. The permit program fee regulations promulgated pursuant to this section shall not become effective until July 1, 1993.

I. [Expired.]

§ 10.1-1402. Powers and duties of the Board.

The Board shall carry out the purposes and provisions of this chapter and compatible provisions of federal acts and is authorized to:

1. Supervise and control waste management activities in the Commonwealth.

2. Consult, advise and coordinate with the Governor, the Secretary, the General Assembly, and other state and federal agencies for the purpose of implementing this chapter and the federal acts.

3. Provide technical assistance and advice concerning all aspects of waste management.

4. Develop and keep current state waste management plans and provide technical assistance, advice and other aid for the development and implementation of local and regional waste management plans.

5. Promote the development of resource conservation and resource recovery systems and provide technical assistance and advice on resource conservation, resource recovery and resource recovery systems.

6. Collect data necessary to conduct the state waste programs, including data on the identification of and amounts of waste generated, transported, stored, treated or disposed, and resource recovery.

7. Require any person who generates, collects, transports, stores or provides treatment or disposal of a hazardous waste to maintain records, manifests and reporting systems required pursuant to federal statute or regulation.

8. Designate, in accordance with criteria and listings identified under federal statute or regulation, classes, types or lists of waste that it deems to be hazardous.

9. Consult and coordinate with the heads of appropriate state and federal agencies, independent regulatory agencies and other governmental instrumentalities for the purpose of achieving maximum effectiveness and enforcement of this chapter while imposing the least burden of duplicative requirements on those persons subject to the provisions of this chapter.

10. Apply for federal funds and transmit such funds to appropriate persons.

11. Promulgate and enforce regulations, and provide for reasonable variances and exemptions necessary to carry out its powers and duties and the intent of this chapter and the federal acts, except that a description of provisions of any proposed regulation which are more restrictive than applicable federal requirements, together with the reason why the more restrictive provisions are needed, shall be provided to the standing committee of each house of the General Assembly to which matters relating to the content of the regulation are most properly referable.

12. Subject to the approval of the Governor, acquire by purchase, exercise of the right of eminent domain as provided in Chapter 2 (§ 25.1-200 et seq.) of Title 25.1, grant, gift, devise or otherwise, the fee simple title to any lands, selected in the discretion of the Board as constituting necessary and appropriate sites to be used for the management of hazardous waste as defined in this chapter, including lands adjacent to the site as the Board may deem necessary or suitable for restricted areas. In all instances the Board shall dedicate lands so acquired in perpetuity to such purposes. In its selection of a site pursuant to this subdivision, the Board shall consider the appropriateness of any state-owned property for a disposal site in accordance with the criteria for selection of a hazardous waste management site.

13. Assume responsibility for the perpetual custody and maintenance of any hazardous waste management facilities.

14. Collect, from any person operating or using a hazardous waste management facility, fees sufficient to finance such perpetual custody and maintenance due to that facility as may be necessary. All fees received by the Board pursuant to this subdivision shall be used exclusively to satisfy the responsibilities assumed by the Board for the perpetual custody and maintenance of hazardous waste management facilities.

15a. Collect, from any person operating or proposing to operate a hazardous waste treatment, storage or disposal facility or any person transporting hazardous waste, permit application fees sufficient to defray only costs related to the issuance of permits as required in this chapter in accordance with Board regulations, but such fees shall not exceed costs necessary to implement this subdivision. All fees received by the Board pursuant to this subdivision shall be used exclusively for the hazardous waste management program set forth herein.

15b. Collect fees from large quantity generators of hazardous wastes.

16. Collect, from any person operating or proposing to operate a sanitary landfill or other facility for the disposal, treatment or storage of nonhazardous solid waste,: (i) permit application fees sufficient to defray only costs related to the issuance, reissuance, amendment or modification of permits as required in this chapter in accordance with Board regulations, but such fees shall not exceed costs necessary to issue, reissue, amend or modify such permits and (ii) annual fees established pursuant to § 10.1-1402.1:1. All such fees received by the Board shall be used exclusively for the solid waste management program set forth herein. The Board shall establish a schedule of fees by regulation as provided in §§ 10.1-1402.1, 10.1-1402.2 and 10.1-1402.3.

17. Issue, deny, amend and revoke certification of site suitability for hazardous waste facilities in accordance with this chapter.

18. Make separate orders and regulations it deems necessary to meet any emergency to protect public health, natural resources and the environment from the release or imminent threat of release of waste.

19. Take actions to contain or clean up sites or to issue orders to require cleanup of sites where solid or hazardous waste, or other substances within the jurisdiction of the Board, have been improperly managed and to institute legal proceedings to recover the costs of the containment or clean-up activities from the responsible parties.

20. Collect, hold, manage and disburse funds received for violations of solid and hazardous waste laws and regulations or court orders pertaining thereto pursuant to subdivision 19 of this section for the purpose of responding to solid or hazardous waste incidents and clean-up of sites that have been improperly managed, including sites eligible for a joint federal and state remedial project under the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, Public Law 96-510, as amended by the Superfund Amendments and Reauthorization Act of 1986, Public Law 99-499, and for investigations to identify parties responsible for such mismanagement.

21. Abate hazards and nuisances dangerous to public health, safety or the environment, both emergency and otherwise, created by the improper disposal, treatment, storage, transportation or management of substances within the jurisdiction of the Board.

22. Notwithstanding any other provision of law to the contrary, regulate the management of mixed radioactive waste.

§ 10.1-1402.1. (Effective July 1, 2004) Permit fee regulations.

Regulations promulgated by the Board which establish a permit fee assessment and collection system pursuant to subdivision subdivisions 15 and 16 of § 10.1-1402 shall be governed by the following:

1. Permit fees charged an applicant shall reflect the average time and complexity of processing a permit in each of the various categories of permits and permit actions. No fees shall be charged for minor modifications or minor amendments to such permits. For purposes of this subdivision, "minor permit modifications" or "minor amendments" means specific types of changes, defined by the Board, that are made to keep the permit current with routine changes to the facility or its operation and that do not require extensive review. A minor permit modification or amendment does not substantially alter permit conditions, increase the size of the operation, or reduce the capacity of the facility to protect human health or the environment.

2. When promulgating regulations establishing permit fees, the Board shall take into account the permit fees charged in neighboring states and the importance of not placing existing or prospective industries in the Commonwealth at a competitive disadvantage.

3. On January 1, 1993, and January 1 of every even-numbered year thereafter, the Board shall evaluate the implementation of the permit fee program and provide this evaluation in writing to the Senate Committees on Agriculture, Conservation and Natural Resources, and Finance; and the House Committees on Appropriations, Agriculture, Chesapeake and Natural Resources, and Finance. This evaluation shall include a report on the total fees collected, the amount of general funds allocated to the Department, the Department's use of the fees and the general funds, the number of permit applications received, the number of permits issued, the progress in eliminating permit backlogs, and the timeliness of permit processing.

4. Fees collected pursuant to subdivision subdivisions 15 or 16 of § 10.1-1402 shall not supplant or reduce in any way the general fund appropriation to the Board.

5. These permit fees shall be collected in order to recover a portion of the agency's costs associated with (i) the processing of an application to issue, reissue, amend or modify permits, which the Board has authority to issue for the purpose of more efficiently and expeditiously processing and maintaining permits and (ii) the inspections necessary to assure the compliance of large quantity generators of hazardous waste. The fees shall be exempt from statewide indirect costs charged and collected by the Department of Accounts.

§ 10.1-1402.1:1. Annual fees for nonhazardous solid waste management facilities.

A. In addition to the permit fees assessed and collected pursuant to § 10.1-1402.1, the Board shall collect an annual fee from any person operating a sanitary landfill or other facility permitted under this chapter for the disposal, storage, or treatment of nonhazardous solid waste. The fees shall be exempt from statewide indirect cost charged and assessed by the Department of Accounts. Annual fees shall reflect the time and complexity of inspecting and monitoring the different categories of facilities. Any annual fee that is based on volume shall be calculated using the tonnage reported by each facility pursuant to § 10.1-1413.2 for the preceding year. The annual fee shall be assessed as follows:

  1. Noncaptive industrial landfills               $8,000
  2. Construction and demolition debris landfills  $4,000
  3. Sanitary landfills shall be assessed a fee based on their annual
     tonnage as follows:
      Annual Tonnage            Base Fee         Fee per ton 
                                                 over base fee
          Up to 10,000          $ 1,000
     10,001 to 100,000          $ 1,000               $.09
    100,001 to 250,000          $10,000               $.09
    250,001 to 500,000          $23,500               $.075
  500,001 to 1,000,000          $42,250               $.06
1,000,001 to 1,500,000          $72,250               $.05
        Over 1,500,000          $97,250               $.04
  4. Incinerators and energy recovery facilities shall be assessed a fee
     based upon their annual tonnage as follows:  
      Annual Tonnage                Fee
        10,000 or less           $2,000
      10,001 to 50,000           $3,000
     50,001 to 100,000           $4,000
       100,001 or more           $5,000
  5. Other types of facilities shall be assessed an annual fee as follows:
     Composting                    $500
     Regulated medical waste     $1,000
     Materials recovery          $2,000
     Transfer station            $2,000
     Facilities in post-
     closure care                  $500

B. The Board shall by regulation prescribe the manner and schedule for remitting fees imposed by this section and may allow for the quarterly payment of any such fees. The payment of any annual fee amounts owed shall be deferred until January 1, 2005, if the person subject to those fees submits a written request to the Department prior to October 1, 2004. The selection of this deferred payment option shall not reduce the amount owed.

C. The regulation shall include provisions allowing the Director to waive or reduce fees assessed during a state of emergency or for waste resulting from emergency response actions.

D. The Board may promulgate regulations establishing a schedule of reduced permit fees for facilities that have established a record of compliance with the terms and requirements of their permits and shall establish criteria, by regulation, to provide for reductions in the annual fee amount assessed for facilities based upon acceptance into the Department's programs to recognize excellent environmental performance.

E. The operator of a facility owned by a private entity and subject to any fee imposed pursuant to this section shall collect such fee as a surcharge on any fee schedule established pursuant to law, ordinance, resolution or contract for solid waste processing or disposal operations at the facility.

§ 62.1-44.15:6. (Effective until July 1, 2004) Permit fee regulations.

A. The Board shall promulgate regulations establishing a fee assessment and collection system to recover a portion of the State Water Control Board's, the Department of Game and Inland Fisheries' and the Department of Conservation and Recreation's direct and indirect costs associated with the processing of an application to issue, reissue, amend or modify any permit or certificate, which the Board has authority to issue under this chapter and Chapters 24 (§ 62.1-242 et seq.) and 25 (§ 62.1-254 et seq.) of this title, from the applicant for such permit or certificate for the purpose of more efficiently and expeditiously processing permits. The fees shall be exempt from statewide indirect costs charged and collected by the Department of Accounts. The Board shall have no authority to charge such fees where the authority to issue such permits has been delegated to another agency that imposes permit fees.

B1. Permit fees charged an applicant for a Virginia Pollutant Discharge Elimination System permit or a Virginia Pollution Abatement permit shall reflect the average time and complexity of processing a permit in each of the various categories of permits and permit actions. However, notwithstanding any other provision of law, in no instance shall the Board charge a fee for a permit pertaining to a farming operation engaged in production for market or for a permit pertaining to maintenance dredging for federal navigation channels or other Corps of Engineers sponsored dredging projects, and in or for the regularly scheduled renewal of an individual permit for an existing facility. Fees shall be charged for a major modification or reissuance of a permit initiated by the permittee that occurs between permit issuance and the stated expiration date. No fees shall be charged for a modification or amendment made at the Board's initiative. In no instance shall the Board exceed the following amounts for the processing of each type of permit/certificate category:

Type of Permit/Certificate Category                 Maximum Amount
1.  Virginia Pollutant Discharge Elimination System
  Major Industrial                                     $24,000
  Major Municipal                                      $21,300
  Minor Industrial with nonstandard limits             $10,300
  Minor Industrial with standard limits                $10,500 $6,600
  Minor Municipal greater than 100,000 gallons per day  $7,500
  Minor Municipal 10,001-100,000 gallons per day        $6,000
  Minor Municipal 1,000-10,000 gallons per day          $5,400
  Minor Municipal less than 1,000 gallons per day       $2,000
  General-industrial stormwater management                $500
  General-stormwater management-phase I land clearing     $500
  General-stormwater management-phase II land clearing    $300
  General-other                                           $600
2.  Virginia Pollution Abatement
  Industrial/Wastewater 10 or more inches per year     $15,000
  Industrial/Wastewater less than 10 inches per year   $10,500
  Industrial/Sludge                                     $7,500
  Municipal/Wastewater                                 $15,000 $13,500
  Municipal/Sludge                                      $7,500
  General Permit                                          $600
  Other                                                   $750
3.  401 Certification/Virginia Water Protection 
  Individual                                            $9,000
  General                                               $1,200
4.  Ground Water Withdrawal                             $6,000
5.  Surface Water Withdrawal                           $12,000

When modifications in these permits or certificates have been initiated by the Board, the The fee for the modified major modification of a permit or certificate that occurs between the permit issuance and expiration dates shall not exceed seventy-five be 50 percent of the maximum amount established by this subsection. Payments for the costs of processing applications by the Department of Game and Inland Fisheries and the Department of Conservation and Recreation shall be limited to the lesser of twenty-five percent of the fees prescribed by regulation or $100 per permit or certificate and shall further be limited to those permits or certificates these agencies are required to review by the Code of Virginia No fees shall be charged for minor modifications or minor amendments to such permits. For the purpose of this subdivision, "minor modifications or "minor amendments" means specific types of changes defined by the Board that are made to keep the permit current with routine changes to the facility or its operation that do not require extensive review. A minor permit modification or amendment does not substantially alter permit conditions, increase the size of the operation, or reduce the capacity of the facility to protect human health or the environment.

B2. Each permitted facility shall pay a permit maintenance fee to the Board by October 1 of each year, not to exceed the following amounts:

  Type of Permit/Certificate Category                  Maximum Amount
  1.  Virginia Pollutant Discharge Elimination System
    Major Industrial                                        $4,800
    Major Municipal greater than 10 million gallons per day  $4,750
    Major Municipal 2-10 million gallons per day            $4,350
    Major Municipal less than 2 million gallons per day     $3,850
    Minor Industrial with nonstandard limits                $2,040
    Minor Industrial with standard limits                   $1,320
    Minor Industrial water treatment system                 $1,200
    Minor Municipal greater than 100,000 gallons per day    $1,500
    Minor Municipal 10,001-100,000 gallons per day          $1,200
    Minor Municipal 1,000-10,000 gallons per day            $1,080
    Minor Municipal less than 1,000 gallons per day           $400
  2.  Virginia Pollution Abatement 
    Industrial/Wastewater 10 or more inches per year        $3,000
    Industrial/Wastewater less than 10 inches per year      $2,100
    Industrial/Sludge                                       $3,000
    Municipal/Wastewater                                    $2,700
    Municipal/Sludge                                        $1,500

An additional permit maintenance fee of $1,000 shall be collected from facilities in a toxics management program and an additional permit maintenance fee shall be collected from facilities that have more than five process wastewater discharge outfalls. Permit maintenance fees shall be collected annually and shall be remitted by October 1 of each year. For a local government or public service authority with permits for multiple facilities in a single jurisdiction, the permit maintenance fees for permits held as of April 1, 2004, shall not exceed $20,000 per year. No permit maintenance fee shall be assessed for facilities operating under a general permit or for permits pertaining to a farming operation engaged in production for market.

B3. Permit application fees charged for Virginia Water Protection Permits, ground water withdrawal permits, and surface water withdrawal permits shall reflect the average time and complexity of processing a permit in each of the various categories of permits and permit actions and the size of the proposed impact. Only one permit fee shall be assessed for a water protection permit involving elements of more than one category of permit fees under this section. The fee shall be assessed based upon the primary purpose of the proposed activity. In no instance shall the Board charge a fee for a permit pertaining to maintenance dredging for federal navigation channels or other U.S. Army Corps of Engineers-sponsored dredging projects, and in no instance shall the Board exceed the following amounts for the processing of each type of permit/certificate category:

Type of Permit                                       Maximum Amount
1. Virginia Water Protection
  Individual-wetland impacts                   $2,400 plus $220 per
                                       1/10 acre of impact over two
                                       acres, not to exceed $60,000
  Individual-minimum 
    instream flow                                           $25,000
  Individual-reservoir                                      $35,000
  Individual-nonmetallic mineral mining                      $7,500
  General-less than 1/10 acre impact                             $0
  General-1/10 to 1/2 acre impact                              $600
  General-greater than 1/2 to one acre impact                $1,200
  General-greater than one acre 
    to two acres of impact                            $120 per 1/10
                                                     acre of impact
2. Ground Water Withdrawal                                   $6,000
3. Surface Water Withdrawal                                 $12,000

No fees shall be charged for minor modifications or minor amendments to such permits. For the purpose of this subdivision, "minor modifications” or "minor amendments" means specific types of changes defined by the Board that are made to keep the permit current with routine changes to the facility or its operation that do not require extensive review. A minor permit modification or amendment does not substantially alter permit conditions, increase the size of the operation, or reduce the capacity of the facility to protect human health or the environment.

C. When promulgating regulations establishing permit fees, the Board shall take into account the permit fees charged in neighboring states and the importance of not placing existing or prospective industries in the Commonwealth at a competitive disadvantage.

D. Beginning January 1, 1998, and January 1 of every even-numbered year thereafter, the Board shall make a report on the implementation of the water permit program to the Senate Committee on Agriculture, Conservation and Natural Resources, the Senate Committee on Finance, the House Committee on Appropriations, the House Committee on Agriculture, Chesapeake and Natural Resources and the House Committee on Finance. The report shall include the following: (i) the total costs, both direct and indirect, including the costs of overhead, water quality planning, water quality assessment, operations coordination, and surface water and ground water investigations, (ii) the total fees collected by permit category, (iii) the amount of general funds allocated to the Board, (iv) the amount of federal funds received, (v) the Board's use of the fees, the general funds, and the federal funds, (vi) the number of permit applications received by category, (vii) the number of permits issued by category, (viii) the progress in eliminating permit backlogs, (ix) the timeliness of permit processing, and (x) the direct and indirect costs to neighboring states of administering their water permit programs, including what activities each state categorizes as direct and indirect costs, and the fees charged to the permit holders and applicants.

E. Fees collected pursuant to this section shall not supplant or reduce in any way the general fund appropriation to the Board.

F. Permit fee schedules shall apply to permit programs in existence on July 1, 1992, any additional permits that may be required by the federal government and administered by the Board, or any new permit required pursuant to any law of the Commonwealth.

G. The Board is authorized to promulgate regulations establishing a schedule of reduced permit fees for facilities that have established a record of compliance with the terms and requirements of their permits and shall establish criteria by regulation to provide for reductions in the annual fee amount assessed for facilities accepted into the Department's programs to recognize excellent environmental performance.

2. That the third enactment of Chapter 822 of the Acts of Assembly of 2002 is amended and reenacted as follows:

3. That the provisions of this act § 10.1-1402.1 shall expire on July 1, 2004.

3. That the regulations adopted by the State Air Pollution Control Board, the Virginia Waste Management Board, and the State Water Control Board to initially implement the provisions of this act shall be exempt from Article 2 (§ 2.2-4006 et seq.) of Chapter 40 of Title 2.2 of the Code of Virginia and shall become effective upon filing with the Registrar of Regulations. Thereafter, any amendments to the fee schedule shall not be exempted from Article 2 (§ 2.2-4006 et seq.).

4. That it is the General Assembly's intent that the Department of Environmental Quality (DEQ) shall evaluate and implement measures to improve the long-term effectiveness and efficiency of its programs in ensuring the Commonwealth's air quality, water quality and land resources are protected and to ensure the maximum value from the funding provided for the Commonwealth's environmental programs. To assist DEQ in accomplishing such goals, a management efficiency peer review shall be conducted of the Virginia Pollutant Discharge Elimination System permit programs and the air permit program implemented by the agency. The review shall evaluate (i) operational changes that would improve the efficiency and effectiveness of the agency's operations, (ii) ways to reduce the costs of compliance, and (iii) the adequacy and appropriateness of staffing levels to meet state and federal requirements. The review shall be led by a consulting firm with expertise and previous experience in conducting similar reviews of state agencies and private firms and shall include a peer review team appointed by the Director of DEQ, consisting of individuals familiar with the permit program including, but not limited to, persons nominated by the Virginia Association of Counties, the Virginia Chemistry Council, the Virginia Manufacturers Association, the Virginia Municipal League, the Hampton Roads Planning District Commission, and the Virginia Association of Municipal Wastewater Agencies. All individuals serving on the peer review team shall have previous training and experience in preparing applications for permits issued under the Virginia Pollutant Discharge Elimination System Permit program or the air permitting program. The consulting firm shall be selected by agreement between the Director of DEQ and the peer review team members from the previously mentioned organizations and in accordance with the Virginia Procurement Act. The review shall be completed and a written report containing findings and recommendations for the implementation of any practices, procedures or other steps necessary to increase the efficiency of DEQ shall be forwarded to the members of the peer review team by September 15, 2006. The report shall include information, to the extent available, on whether or not the recommendations would change the level of environmental protection, the estimated savings to DEQ and the regulated community, and any barriers to implementation. The report and DEQ's responses and plans for implementation of such recommendations shall be forwarded to the Chairmen of the House Committee on Agriculture, Chesapeake and Natural Resources, the House Committee on Appropriations, the Senate Committee on Agriculture, Conservation and Natural Resources, and the Senate Committee on Finance by October 15, 2006.

5. That a review of DEQ's solid waste permitting and inspection programs shall be conducted in order to ensure that those programs provide maximum efficiency consistent with protection of the environment and public health. The review shall be conducted by DEQ with the active participation of persons qualified by training and experience in the management and operation of solid waste facilities, who shall be recommended by the Virginia Waste Industries Association, the Solid Waste Association of North America and the Southwest Virginia Solid Waste Management Association. The review shall be completed and a written report containing findings and recommendations for the implementation of any practices, procedures or other steps necessary to increase the efficiency of DEQ shall be forwarded to the members of the peer review team by September 15, 2006. The report shall include information, to the extent available, on whether or not the recommendations would change the level of environmental protection, the estimated savings to DEQ and the regulated community, and any barriers to implementation. The report and DEQ's responses and plans for implementation of such recommendations shall be forwarded to the Chairmen of the House Committee on Agriculture, Chesapeake and Natural Resources, the House Committee on Appropriations, the Senate Committee on Agriculture, Conservation and Natural Resources, and the Senate Committee on Finance by October 15, 2006.

6. That in order to accomplish the intent of the General Assembly, DEQ shall:

a. Implement a streamlined permit application to be used for renewals of previously granted environmental permits where there has been no significant change in the permitted activity or applicable statutory or regulatory requirements during the previous permit term. Such streamlined permit renewal application shall be designed, to the extent not prohibited by federal law or regulation, to avoid the submission and duplication of information that has previously been submitted by the applicant and achieve maximum efficiency and economy for both the permittee and DEQ, and DEQ shall work with the peer review team to develop these applications with the goal of minimizing the amount of duplicate, costly work on the part of the permit renewal applicants and DEQ;

b. Expeditiously implement electronic permitting, filing and reporting procedures so as to improve access to information, reduce the costs of compliance, and reduce costs to DEQ;

c. Explore ways to reduce compliance costs to the permittee and reduce DEQ's oversight costs for ensuring compliance. The options to be explored shall include, but not be limited to, increased utilization of certified evaluations (i.e., by professional engineers) as a method of ensuring compliance while reducing the need for physical inspections; and

d. Encourage efficient and effective environmental performance by deeming a facility's demonstration of a proven environmental management system, such as ISO 14001, along with a commitment to pollution prevention, annual progress reporting, and a record of sustained compliance as meeting the criteria for acceptance into DEQ's programs for environmental excellence.

7. That if general fund revenues in excess of $500,000 per year over the Governor's submitted budget for natural resources for the 2004-2006 biennium are appropriated by the 2004 Appropriation Act and are allocated for implementation of the water permit programs, the water permit fees set forth in or established pursuant to this act shall be reduced by a pro rata basis.