Original Notice.

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

     Title of Rule: Amend Regulation I, Section 7.07.

     Purpose: To adjust the operating permit fees to cover program costs.

     Other Identifying Information: Section 7.07 pertains to operating permit fees.

     Statutory Authority for Adoption: Chapter 70.94 RCW.

     Statute Being Implemented: RCW 70.94.141.

     Summary: This proposal will adjust the fees the agency charges for the operating permit program, which will help to cover the cost of the program.

     Reasons Supporting Proposal: The fees charged for the operating permit program need to cover the cost of the program.

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

     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 above.

     Proposal Changes the Following Existing Rules: See Purpose 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 May 22, 2003, at 9:15 a.m.

     Assistance for Persons with Disabilities: Contact Agency Receptionist, (206) 689-4010, by May 15, 2003, 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, fax (206) 343-7522, by May 12, 2003.

     Date of Intended Adoption: May 22, 2003.

April 1, 2003

James L. Nolan

Director - Compliance

REGULATION I SECTION 7.07 OPERATING PERMIT FEES

     (a) The Agency shall ((levy)) 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 ((30)) 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.

     (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 Standard Industrial Classification (SIC) codes)), or sources subsequently determined by the control officer to be assigned to ((either)) Section 7.07 (b)(1)(i), (ii), (iii), or (iv) ((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
336411	Aircraft Manufacturing
336413	Other Aircraft Parts and Auxiliary Equipment Manufacturing
. . . . . . . . . . . . $50,000

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

NAICS	((SIC))	NAICS Description	Fee
32411	((2911))	Petroleum Refineries
32731	((3241))	Cement Manufacturing
331111	((3312))	Iron and Steel Mills
221112		Fossil Fuel Electric Power Generation
((336411	3721	Aircraft Manufacturing
336413	3728	Other Aircraft Parts and Auxiliary Equipment Manufacturing))
92811	((9711))	National Security
. . . . . . . . . . . . $30,000

     (iii) Operating permit sources with the following NAICS((/SIC)) codes:

NAICS	((SIC))	NAICS Description	Fee
((23521	1721	Painting and Wall Covering Contractors))
311119		Other Animal Food Manufacturing
311812	((2051))	Commercial Bakeries
((321114	2491	Wood Preservation))
321113		Sawmills
32191	((2431))	Millwork
321911		Wood Window and Door Manufacturing
321918		Other Millwork (including Flooring)
321999	((2499))	All Other Miscellaneous Wood Product Manufacturing
322222	((2672))	Coated and Laminated Paper Manufacturing
32614	((3086))	Polystyrene Foam Product Manufacturing
((32615	3086	Urethane and Other Foam Product (except Polystyrene) Manufacturing))
327121	((3251))	Brick and Structural Clay Tile Manufacturing
((332313	3443	Plate Work Manufacturing))
332996	((3498))	Fabricated Pipe and Pipe Fitting Manufacturing
((333415	3585	Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
33711	2434	Wood Kitchen Cabinet and Countertop Manufacturing
81142	7641	Reupholstery and Furniture Repair))
. . . . . . . . . . . . $7,500

(((iii))) (iv)

Operating permit sources with NAICS((/SIC)) codes other than listed above . . . . . . . . . . . .

$15,000

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

     (($22)) $23 for each ton of CO reported in the previous calendar year, and

     (($44)) $46 for each ton of NOx reported in the previous calendar year, and

     (($44)) $46 for each ton of PM₁₀ reported in the previous calendar year, and

     (($44)) $46 for each ton of SOx reported in the previous calendar year, and

     (($44)) $46 for each ton of VOC reported in the previous calendar year, and

     (($44)) $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, ((levy)) 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 Chapter 246-247 WAC, and

     (6) for a significant modification [WAC 173-401-725(4)] initiated in response to a regulatory action by Ecology under the Prevention of Significant Deterioration regulations (40 CFR 52.21 and Ecology-EPA Delegation Agreement) for which the Agency has no corresponding review and approval authority, a fee of $5,000 in addition to the significant modification fee identified in Section 7.07 (c)(3).

     (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.

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