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Air permit fees aren't covering what it costs the Lane Regional Air Protection Agency to administer them, according to a memo. The board responded by approving 15% annual fee increases for businesses over three years.
To cover a budget shortfall at the Lane Regional Air Protection Agency, its board of directors voted Thursday, Sept. 10, to support an increase in the pollution fee that businesses pay.
Nearly 300 businesses monitor air quality through an Air Contaminant Discharge Permit, which carries a yearly fee. Those dollars go into LRAPA’s general fund, which largely pays for staff time needed to issue and enforce permits under state and federal law.
But the agency has been drawing down its financial reserves to cover the fund. Its balance stood at about $1.97 million in June, the end of the agency’s 2025-26 fiscal year, down about 26% from the same point the year before.
The general fund will essentially run out of money by fiscal year 2032 if nothing changes, executive director Travis Knudsen explained during Thursday’s board meeting.
That’s because, on average, it costs LRAPA about $3,850 per business to oversee a permit, while the agency collects only about $2,700 in fee revenue per business.
The agency attributes the gap to the rising costs of staff salaries and health insurance. Officials also noted higher costs of equipment, fleet and fuel.
LRAPA’s nine-member board — directors who are appointed by the Eugene and Springfield city councils and the Lane County Board of Commissioners — discussed how to move forward Thursday. Its chair is Eugene Councilor Matt Keating and vice chair is Lane County Commissioner David Loveall.
The board reviewed 10%, 15% and 20% fee increases over multiple years and how they would affect LRAPA’s budget, before voting for three consecutive 15% fee increases, phased in from fiscal year 2028 through 2030. After that the increase will be tied to a federal employment cost index and capped at 5%. The motion passed unanimously.
Lane County is the only county in Oregon to have its own air authority, with other counties regulated under the state Department of Environmental Quality. Even with the increase, LRAPA permit fees are projected to be about 8% lower than what DEQ will charge by 2035.
In the meeting, Knudsen said a more responsive approach to permitting is part of what LRAPA offers as a local air authority, noting that its permitting backlog is shorter than DEQ.
“There’s a lot of competitive reasons to come to Lane County for whatever the business’ project may be,” he said. “I think that we’re going to be much more ready to help [businesses] understand what their project is and what the most effective permitting route to get them there (is) while still ensuring that environmental compliance that we are looking for.”
LRAPA keeps two other funds separate from its general budget. One is for the Title V Operating Permit program, a federal permit for the region’s biggest polluters, which by federal law must pay for itself. The other is for competitive federal grants.
