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 3.04 (Reasonably Available Control Technology (RACT)).

     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: Provide a wider range of options to conduct RACT analyses and allow for cost recovery on any RACT analysis and determination that more closely matches level of effort.

     Reasons Supporting Proposal: This proposal will provide greater flexibility to the agency to apply the right technical approach to any specific RACT analysis/determination effort.

     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 3.04 REASONABLY AVAILABLE CONTROL TECHNOLOGY

     (a) Reasonably Available Control Technology (RACT) is required for all existing sources.

     (b) RACT for each source category containing 3 or more sources shall be determined by rule by the Department of Ecology or the Agency, except as provided in Section 3.04(c) of this regulation.

     (c) Source-specific RACT determinations may be performed under any of the following circumstances:

     (1) For replacement of existing control equipment under Article 6 of this regulation;

     (2) When required by the federal Clean Air Act;

     (3) For sources in source categories containing fewer than 3 sources;

     (4) When an air quality problem, for which the source is a contributor, justifies a source-specific RACT determination prior to development of a categorical RACT rule; or

     (5) When a source-specific RACT determination is needed to address either specific air quality problems, for which the source is a significant contributor, or source-specific economic concerns.

     (d) ((Under any of the circumstances listed in Section 3.04(c) of this regulation, t))The Control Officer or a duly authorized representative shall have the authority to perform a ((source-specific)) RACT determination; ((analysis)) to hire a consultant to perform relevant RACT analyses in whole or in part; or to order the owner or operator to perform RACT analyses ((the analysis)) and submit the results to the Agency.

     (e) The Agency shall assess a fee to be paid by any source included or covered in a RACT determination to cover the direct and indirect costs of developing, establishing or reviewing categorical or source-specific RACT determinations. ((In the event that the Agency performs a source-specific RACT analysis of a source, the Agency shall assess a fee against that source to cover the cost of performing the analysis.)) The fee for RACT determinations ((an analysis performed by the Agency)) shall be $150 ((5,000.00)) an hour. For categorical RACT determinations, the amount of the fees to be paid by a source shall not exceed a source's pro rata portion as determined by the Agency. In addition, where the Agency hires a consultant to prepare RACT analyses, in whole or in part, pursuant to Section 3.04(d), the source shall be responsible for the consultant's fees. (((Replacement of control equipment under Section 3.04 (c)(1) shall be subject to the notice of construction review fees under Section 6.04, in lieu of a RACT fee under this section.) This f)) Fees shall be due and payable within 30 days of the date of the invoice and shall be deemed delinquent if not fully paid within 90 days of the invoice.

     (f) Where current controls are determined to be less than RACT, the Agency shall define RACT for that source or source category and issue a rule or a regulatory order under Section 3.03 of this regulation requiring the installation of RACT.

     (g) Emission standards and other requirements contained in rules or regulatory orders in effect at the time of operating permit issuance shall be considered RACT for purposes of permit issuance or renewal.

     (h) Replacement of control equipment under Section 3.04 (c)(1) shall be subject to the notice of construction review fees under Section 6.04, in lieu of RACT fees under this section.

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