Original Notice.

     Exempt from preproposal statement of inquiry under RCW 70.94.1419(1).

     Title of Rule: Amend Regulation I, Sections 7.03 and 7.07.

     Purpose: To amend the agency's operating permit fee structure; and to remove an obsolete effective date.

     Other Identifying Information: 7.03 pertains to Applicability and 7.07 pertains to Fees.

     Statutory Authority for Adoption: Chapter 70.94 RCW.

     Statute Being Implemented: RCW 70.94.141 and 70.94.161.

     Summary: Fees for operating permits will increase, but individual permit fees related to amendments, modifications, original issuance, reopening, and renewals will be deleted. Increases also reflect adjustments based on experienced level of effort and anticipated increases in effort related to implementing recently-issued permits. Two source category changes reflect equity adjustments based on staff time necessary to administer these permits. Also, an obsolete effective date is being removed.

     Reasons Supporting Proposal: The fees need to cover program costs. The obsolete effective date needs to be deleted.

     Name of Agency Personnel Responsible for Drafting: Steve Van Slyke, 110 Union Street, #500, Seattle, WA 98101, (206) 689-4052; Implementation: Dave Kircher, 110 Union Street, #500, Seattle, WA 98101, (206) 689-4050; and Enforcement: Jim Nolan, 110 Union Street, #500, Seattle, WA 98101, (206) 689-4053.

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

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

     Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose and Summary above.

     Proposal Changes the Following Existing Rules: See Purpose and Summary above.

     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.

     RCW 34.05.328 does not apply to this rule adoption. Pursuant to RCW 70.94.141(1), RCW 34.05.328 does not apply to this rule adoption.

     Hearing Location: Puget Sound Clean Air Agency, 110 Union Street, Suite 500, Seattle, WA 98101, on June 24, 2004, at 9:15 a.m.

     Assistance for Persons with Disabilities: Contact Agency Receptionist, (206) 689-4010, by June 17, 2004, TDD (800) 833-6388 or (800) 833-6385 (Braille).

     Submit Written Comments to: Dennis McLerran, Puget Sound Clean Air Agency, 110 Union Street, Suite 500, Seattle, WA 98101, (206) 343-7522, by June 24, 2004.

     Date of Intended Adoption: June 24, 2004.

May 17, 2004

Steve M. Van Slyke

Supervisory Engineer

REGULATION I SECTION 7.03 APPLICABILITY

     The provisions of this article apply to all Chapter 401 sources subject to the requirements of chapter 173-401 WAC ((WAC 173-401 and shall become effective 90 days after the EPA authorizes Puget Sound Clean Air Agency to issue operating permits under the federal Clean Air Act)).

AMENDATORY SECTION

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 $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
	. . . . . . . . . . . .	$((30,000)) 50,000

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

NAICS	NAICS Description	Fee
311119	Other Animal Food Manufacturing
311812	Commercial Bakeries
321113	Sawmills
((321911	Wood Window and Door Manufacturing))
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
	. . . . . . . . . . . .	$((7,500)) 10,000
(iii)	Operating permit sources with NAICS codes other than listed above . . . . . . . . . . . .	$((15,000)) 25,000

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

     $23 for each ton of CO reported in the previous calendar year, and

     $46 for each ton of NOx reported in the previous calendar year, and

     $46 for each ton of PM₁₀ reported in the previous calendar year, and

     $46 for each ton of SOx reported in the previous calendar year, and

     $46 for each ton of VOC reported in the previous calendar year, and

     $46 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) $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 $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 $10,000, and))

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

     (((5))) (2) ((to cover the)) costs incurred by the Washington State Department of Health in enforcing 40 CFR Part 61, Subpart I and ((C))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 ((C))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.

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