Each sewage sludge generator shall pay the Department an annual sewage sludge generator fee for each wet ton of sewage sludge generated by the sewage sludge generator during the previous calendar year as reported on the Sewage Sludge Generator Report Form provided by the Department. The sewage sludge generator fee shall be determined based on: The amount of sewage sludge generated; and A per ton fee rate that may vary depending on the sewage sludge utilization option, whether the source of the sewage sludge is in-State or out-of-State, and the Department’s anticipated costs of monitoring and regulating sewage sludge utilization activities and anticipated costs for program implementation. Annual Generator Fee Schedule. Base Fee Rate. The base fee rate to be used in calculating the annual generator fee for a sewage sludge generator shall be $1.00 for each wet ton of sewage sludge generated. The Department may modify the base fee rate on an annual basis for the next applicable State fiscal year to provide adequate revenue to cover the Department’s anticipated costs of monitoring and regulating sewage sludge utilization activities and anticipated costs for program implementation. Base Fee Rate Adjustment Factors. In-State Sources of Sewage Sludge. For in-State sources of sewage sludge, the base fee rate shall be adjusted depending on how the sewage sludge is utilized by using the appropriate base fee rate adjustment factor in Table 1 of §C(2)(a)(ii) of this regulation, as explained in §C(3) of this regulation. Table 1 – Base Fee Rate Adjustment Factors. For out-of-State sources of sewage sludge, the base fee rate adjustment factor shall be 2.0. Fee Calculation — In-State Sources of Sewage Sludge. To determine the annual generator fee for a sewage sludge generator located in Maryland, the following process shall be followed: Calculate a utilization option fee for each utilization option applicable to the generator by: Identifying the base fee rate adjustment factor for a given utilization option from Table 1 of §C(2)(a)(ii) of this regulation; and Calculating the utilization option fee as (the number of wet tons of sewage sludge generated during the reporting period) x (the base fee rate for the reporting period as determined by the Department) x (the base fee rate adjustment factor for the utilization option); Determine a tentative annual sewage sludge generator fee by adding together the utilization option fees determined in accordance with §C(3)(a) of this regulation; and Set the annual sewage sludge generator fee at either the tentative annual sewage sludge generator fee determined in accordance with §C(3)(b) of this regulation or $50, whichever is greater. Fee Calculation — Out-of-State Sources of Sewage Sludge. To determine the annual sewage sludge generator fee for a sewage sludge generator whose source or sources of sewage sludge is located outside of Maryland, the following process shall be followed: Calculate the tentative annual sewage sludge generator fee as (the number of wet tons of sewage sludge utilized during the reporting period) x (the base fee rate for the reporting period as determined by the Department) x ( the base fee rate adjustment factor for out-of-State sources of sewage sludge); and Set the annual sewage sludge generator fee at either the tentative annual generator fee determined in accordance with §C(4)(a) of this regulation or $50, whichever is greater. Annual Billing. Billing for the annual generator fee shall be based on the generation of sewage sludge by a generator during the previous calendar year as reported on the generator’s Sewage Sludge Generator Report as required in Regulation .07 of this chapter. Failure to pay the annual generator fee may constitute grounds for revocation or modification of any Sewage Sludge Utilization Permit, authorization, or approval issued by the Department for the utilization of that generator’s sewage sludge, and denial of any new, modification, or renewal application for a Sewage Sludge Utilization Permit, authorization, or approval for the generator for the utilization of that generator’s sewage sludge. The Department may inspect and audit all records or files associated with the annual generator fee required in §C of this regulation. If an audit reveals that any amount of money was improperly withheld from the Department: A generator shall remit that amount to the Department within 30 days of notification of the error by the Department; and A generator may be subject to other penalties as provided by law or regulation.