Original Notice.

     Exempt from preproposal statement of inquiry under RCW 70.94.141(1).

     Title of Rule and Other Identifying Information: Amend Regulation I, Section 7.07 (Operating Permit Fees).

     Hearing Location(s): Puget Sound Clean Air Agency, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, on May 24, 2012, at 8:45 a.m.

     Date of Intended Adoption: May 24, 2012.

     Submit Written Comments to: Rob Switalski, Puget Sound Clean Air Agency, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, e-mail robs@pscleanair.org, fax (206) 343-7522, by May 23, 2011 [2012].

     Assistance for Persons with Disabilities: Contact agency

receptionist, (206) 689-4010, by May 17, 2012, TTY (800) 833-6388 or (800) 833-6385 (braille).

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Increase the base fees and emission fees for all operating permit sources, and increase permit transaction fees.

     Reasons Supporting Proposal: The fee increases will help ensure that the operating permit program is self-sufficient using fees collected from operating permit sources.

     Statutory Authority for Adoption: Chapter 70.94 RCW.

     Statute Being Implemented: RCW 70.94.141.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Puget Sound Clean Air Agency, governmental.

     Name of Agency Personnel Responsible for Drafting: Steve Van Slyke, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, (206) 689-4052; Implementation and Enforcement: Laurie Halvorson, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, (206) 689-4030.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. This agency is not subject to the small business economic impact provision of the Administrative Procedure Act.

     A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 does not apply to local air agencies, per RCW 70.94.141.

April 17, 2012

Craig Kenworthy

Executive Director

REGULATION I, SECTION 7.07 OPERATING PERMIT FEES

     (a) The Agency shall assess annual operating permit fees as set forth in Section 7.07(b) below to cover the cost of administering the operating permit program.

     (b) Upon assessment by the Agency, the following annual operating permit fees are due and payable within 45 days of the invoice date. They shall be deemed delinquent if not fully paid within 90 days of the date of the invoice and will be subject to an additional delinquent fee equal to 25% of the original fee, not to exceed $6,500 ((5,000)). In addition, persons knowingly under-reporting emissions or other information used to set fees, or persons required to pay emission or permit fees who are more than 90 days late with such payments may be subject to a penalty equal to 3 times the amount of the original fee owed (in addition to other penalties provided by chapter 70.94 RCW).

     (1) Sources in the following North American Industry Classification System (NAICS) codes (North American Industry Classification System Manual, U.S. Executive Office of the President, Office of Management and Budget, 1997), or sources subsequently determined by the control officer to be assigned to either Section 7.07 (b)(1)(i) or 7.07 (b)(1)(ii) shall be subject to the following facility fees:

     (i) Operating permit sources with the following NAICS codes:

	NAICS	NAICS Description	Fee
	221112	Fossil Fuel Electric Power Generation
	324110	Petroleum Refineries
	327213	Glass Container Manufacturing
	327310	Cement Manufacturing
	331111	Iron and Steel Mills
	336411	Aircraft Manufacturing
	336413	Other Aircraft Parts and Auxiliary Equipment Manufacturing
	928110	National Security
		. . . . . . . . . . . . $57,200 ((44,000))

     (ii) Operating permit sources with the following NAICS codes:

	NAICS	NAICS Description	Fee
	311119	Other Animal Food Manufacturing
	311812	Commercial Bakeries
	321912	Cut Stock, Resawing Lumber, and Planing
	321918	Other Millwork (including Flooring)
	321999	All Other Miscellaneous Wood Product Manufacturing
	322222	Coated and Laminated Paper Manufacturing
	326140	Polystyrene Foam Product Manufacturing
	327121	Brick and Structural Clay Tile Manufacturing
	332996	Fabricated Pipe and Pipe Fitting Manufacturing
		. . . . . . . . . . . . $14,300 ((11,000))

     (iii) Operating permit sources with NAICS codes other than listed above . . . . . . . . . . . . $28,600 ((22,000))

     (2) Additional emission rate fees shall be paid in addition to the annual operating permit fees of Section 7.07 (b)(1):

     $30 ((25)) for each ton of CO reported in the previous calendar year, and

     $60 ((50)) for each ton of NOx reported in the previous calendar year, and

     $60 ((50)) for each ton of PM10 reported in the previous calendar year, and

     $60 ((50)) for each ton of SOx reported in the previous calendar year, and

     $60 ((50)) for each ton of VOC reported in the previous calendar year, and

     $60 ((50)) for each ton of HAP reported in the previous calendar year.

     (c) In addition to the fees under Sections 7.07 (b)(1) and (b)(2) above, the Agency shall, on a source-by-source basis, assess the following fees:

     (1) $500 ((250)) for administrative permit amendments [WAC 173-401-720], and

     (2) for minor permit modifications [WAC 173-401-725(2) and (3)], a fee equal to 10% of the annual operating permit fee, not to exceed $6,500 ((5,000)), and

     (3) for the original issuance [WAC 173-401-700], significant modification [WAC 173-401-725(4)], reopening for cause [WAC 173-401-730], or renewal [WAC 173-401-710] of an operating permit, a fee equal to 20% of the annual operating permit fee, not to exceed $13,000 ((10,000)), and

     (4) to cover the costs of public involvement under WAC 173-401-800, and

     (5) to cover the costs incurred by the Washington State Department of Health in enforcing 40 CFR Part 61, Subpart I and chapter 246-247 WAC.

     (d) In addition to the fees described under Sections 7.07 (b) and (c) above, the Agency shall collect and transfer to the Washington State Department of Ecology a surcharge established by the Department of Ecology under chapter 173-401 WAC to cover the Department of Ecology's program development and oversight costs.

     (e) Continued payment to the Agency of the annual operating permit fee maintains the operating permit and the status of the source as an operating facility.

     Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

© Washington State Code Reviser's Office