Fee Overhaul Advances as Industry Pushes Air District on Permit Delays

The Bay Area Air Quality Management District's Finance and Administration Committee unanimously advanced a fee restructuring that cuts costs for small businesses while raising them for refineries — all while facing pointed industry criticism that years of rising fees have yet to fix a stubborn permitting backlog.

• Committee sends Regulation 3 fee amendments to full Board with a 5.7% weighted average increase, a 20% cut for small-business registration fees, and elimination of the delinquent payment penalty

• Industry groups challenge permitting progress, with California Council for Environmental and Economic Balance (CCEEB) reporting Schedule P fees up 101% in six years and Western States Petroleum Association (WSPA) projecting $87 million in refinery permit costs through 2030

• Permit backlog targets set for 2028–2029, with staff reporting a 17% processing increase and rolling out AI-powered dashboards

• Clean audit confirms $491.4 million net position for FY2025, but Vice Chair presses for faster audit turnaround

• New Permitting Efficiency Task Force set to co-convene with a Board Ad Hoc Committee on April 22

The committee voted 7-0 to recommend the Board of Directors adopt proposed amendments to Regulation 3, the Air District's fee regulation, setting up a June 3 adoption vote with changes taking effect July 1.