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

     Citation of Existing Rules Affected by this Order: Amending Regulation I, Sections 7.03 and 7.07.

     Statutory Authority for Adoption: Chapter 70.94 RCW.

      Adopted under notice filed as WSR 04-14-087 on July 6, 2004.

     Changes Other than Editing from Proposed to Adopted Version: The fees were changed as follows: 7.07(b)(1)(i) to $40,000 (original proposal was $50,000); 7.07(b)(1)(iii) to $20,000 (original proposal was $25,000). In Section 7.07(c), subsections (1), (2), and (3) were retained (original proposal was to delete them).

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: July 22, 2004.

James Nolan

Director - Compliance

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)) 40,000

     (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)) 20,000

     (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) 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 ((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.

     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.

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