Original Notice.

     Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

     Title of Rule and Other Identifying Information: SCAPCA Regulation I, Article X, Section 10.06 - Registration and Operating Permit Fees for Air Contaminant Sources and SCAPCA Regulation I, Article X, Section 10.09 - Asbestos Fees.

     Hearing Location(s): Spokane Regional Health Building, 1101 West College, Rooms 320-321, Spokane, WA 99201, on July 12, 2007, at 9:00 a.m.

     Date of Intended Adoption: July 12, 2007.

     Submit Written Comments to: Brenda Smits, 1101 West College, Suite 403, Spokane, WA 99201, e-mail bmsmits@scapca.org, fax (509) 477-6828, by 4:30 p.m. on June 26, 2007.

     Assistance for Persons with Disabilities: Contact Barbara Nelson by 4:30 p.m. on June 26, 2007, (509) 477-4727.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Section 10.09 - Asbestos Fees will be moved to a fee schedule. Currently, rates for asbestos fees are set through the formal rule-making process of the Administrative Procedure Act. By board direction, the program is subject to fee-based cost recovery. Fees will be based on actual and/or projected direct and indirect costs associated with the program. Fees will be established to recover total program costs. The revised regulation outlines the fee structure. Fee rates will be established in a fee schedule. The fee rates will be periodically reviewed to ensure that full cost recovery is being achieved. If full cost recovery is not achieved, adjustments to the fees either upward or downward may be made by the board. Adjustments to the fees would be preceded by public notice, a public comment period and a public hearing. The anticipated effect of the rule change is to maintain improved correlation between fee-based revenue and actual program costs.

     Section 10.06 - Operating Permit Fees will be revised to reflect the agency's name change and to add reference to periodic fee reviews.

     Reasons Supporting Proposal: Section 10.09, reorganizes fees into a fee schedule to streamline fee amendments, if necessary.

     Section 10.06, clarifies intent for periodic fee reviews.

     Also, refer above.

     Statutory Authority for Adoption: RCW 70.94.141(1).

     Statute Being Implemented: Chapter 70.94 RCW.

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

     Name of Proponent: Spokane County Air Pollution Control Authority (SCAPCA), governmental.

     Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Matt Holmquist, SCAPCA, 1101 West College, Suite 403, Spokane, WA 99201, (509) 477-4727.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. This is a local air pollution control authority rule and as such, chapter 19.85 RCW does not apply.

     A cost-benefit analysis is not required under RCW 34.05.328. This is a local agency rule and pursuant to RCW 70.94.141(1), RCW 34.05.328 does not apply to this rule.

May 10, 2007

Matt Holmquist

Compliance Administrator

((SCAPCA)) SRCAA REGULATION I, ARTICLE X, SECTION 10.06 REGISTRATION AND OPERATING PERMIT FEES FOR AIR CONTAMINANT SOURCES

     A. Each source required by Article IV, Section 4.01 to be registered, each air operating permit source, and each source required by Article V, Section 5.02 to obtain an approved Notice of Construction and Application for Approval is subject to an annual fee for each calendar year, or portion of each calendar year, during which it operates. The owner or operator shall pay the fee, pursuant to the requirements in Section 10.02. Fees received pursuant to the registration program or the operating permit program shall not exceed the actual costs of program administration.

     B. The annual fee for each source required by Article IV, Section 4.01 to be registered and that is not subject to Section 10.06.C. of this Regulation shall be determined by adding all of the applicable fees in the current fee schedule.

     1. The Board shall periodically ((annually)) review the fee schedule for registered sources and determine if the total projected fee revenue to be collected pursuant to this Section is sufficient to fully recover program costs. Any proposed fee revisions shall include opportunity for public review and comment. Accordingly, the ((Authority)) Agency shall account for program costs, including employee costs and overhead. If the Board determines that the total projected fee revenue is either significantly excessive or deficient for this purpose, then the Board shall amend the fee schedule to more accurately recover program costs.

     C. The annual fee for each air operating permit source shall be determined as follows:

     1. The Board shall periodically review the fees for air operating permit sources and determine if the total projected fee revenue to be collected pursuant to this Section is sufficient to fully recover program costs. Any proposed fee revisions shall include opportunity for public review and comment. Accordingly, the Agency shall account for program costs, including employee costs and overhead. If the Board determines that the total projected fee revenue is either significantly excessive or deficient for this purpose, then the Board shall amend the fees to more accurately recover program costs.

     ((1)) 2. For sources that are subject to the air operating permit (AOP) program during any portion of the calendar year:

     a. Annual base fee of $3,000;

     b. Emission fee of $31.11 per ton of actual emissions from the previous calendar year;

     c. ((SCAPCA)) SRCAA time fee, as determined by the following formula:

    

TFI

=

(HI + HG) x RPC HT

     Where,

    
     TF_I is the ((SCAPCA)) SRCAA time fee for AOP source, I;

     H_I is the total ((SCAPCA)) SRCAA staff hours spent on AOP source, I;

     H_G is the total general hours ((SCAPCA)) SRCAA staff spent on the AOP program divided by the total number of sources subject to the AOP program during any portion of the calendar year;

     RPC is the remaining ((SCAPCA)) SRCAA AOP program cost, calculated by subtracting the sum of the Section 10.06.((B.4)) C.2.a and b. fees from the total ((SCAPCA)) SRCAA AOP program costs; and

     H_T is the total number of hours ((SCAPCA)) SRCAA staff spent on the AOP program, including total time spent on the AOP sources and general hours spent on the AOP program.

     Note: H_I, H_G, H_T, and RPC are for the most recent ((SCAPCA)) SRCAA fiscal year.

     Note: H_I, H_G, and H_T are obtained from ((SCAPCA)) SRCAA time accounting records.

     d. Program deficit recovery fee, as determined by the following formula:

	PDRFI		=	Remaining Program Deficity	x	EI (y - 1)
		y=2006->2015		(2016 - y)		ET (y - 1)

     Where,

     PDRF_I is the program deficit recovery fee assessed during year "y" (from 2006-2015) to each AOP source, I, that operated during any portion of the calendar year "y";

     Remaining Program Deficit_y is the total cumulative funding deficit for SCAPCA's AOP program at the end of year "y";

     "y" is the year, beginning in year 2006 and ending in year 2015;

     E_I is the total (in tons) of actual emissions from AOP source, I, during the calendar year prior to year "y" (y-1); and

     E_T is the sum (in tons) of the actual emissions from all AOP sources during the calendar year prior to year "y" (y-1).

     Note: The program deficit recovery fee will expire in 2016 when the AOP program deficit will be zero.

     e. A share of the assessment by Ecology pursuant to RCW 70.94.162(3), as determined by the following formula:

I =	FIxAE
	FT

     Where,

     I is the individual share of the assessment;

     F_I is the total individual fee assessed pursuant to Section 10.06.C.((1))2.a., b., c., and d. of this Regulation;

     A_E is the total Ecology assessment pursuant to RCW 70.94.162(3); and

     F_T is the sum of all the individual fees assessed pursuant to Sections 10.06.C.((1))2.a., b., c., and d. of this Regulation.

     ((2)) 3. For affected units under Section 404 of the Federal Clean Air Act (42 USC 7401 et seq):

     a. A fee of $50 per hour of time expended in carrying out the fee eligible activities specified in RCW 70.94.; and

     b. A share of the assessment by Ecology pursuant to RCW 70.94.162(3), as determined by the following formula:

I =	FIxAE
	FT

     Where,

     I is the individual share of the assessment;

     F_I is the total individual fee assessed pursuant to Section 10.06.C.((2))3.a. of this Regulation;

     A_E is the total Ecology assessment pursuant to RCW 70.94.162(3); and

     F_T is the sum of all the individual fees assessed pursuant to Sections 10.06.C.((2))3.a. of this Regulation.

AMENDATORY SECTION

((SCAPCA)) SRCAA REGULATION I, ARTICLE X, SECTION 10.09 ASBESTOS NOTIFICATION PERIOD AND FEES

     A. Written notification, as required in Article IX, Section 9.04, shall be accompanied by the appropriate nonrefundable fee, as follows: ((according to Section 10.09.A)).

     ((A. Notification Period and Fees))

	Project	Size or Type	Notification Period	Fee
	Owner-Occupied, Single-Family Residence Asbestos Project (excluding demolition)	Notification Not Required	None	None
	Owner-Occupied, Single-Family Residence Demolition	All	Prior Notice	(($30)) Per the Fee Schedule
	All Other Demolitions with no asbestos project	All	10 Days	(($250)) Per the Fee Schedule
	Asbestos Project includes demolition fee*	10-259 linear ft 48-159 square ft	3 Days	(($250)) Per the Fee Schedule
	Asbestos Project includes demolition fee	260-999 linear ft 160-4,999 square ft	10 Days	(($500)) Per the Fee Schedule
	Asbestos Project includes demolition fee	≥ 1,000 linear ft ≥ 5,000 square ft	10 Days	(($1250)) Per the Fee Schedule
	Emergency	9.04.C	Prior Notice**	Additional      fee equal to      project fee
	Amendment***	9.04.B	Prior Notice	(($0)) Per the Fee Schedule
	Alternate Means of Compliance (demolitions or friable asbestos-containing material)	9.07.A or C	10 Days	Additional fee equal to project fee
	Alternate Means of Compliance (non-friable asbestos-containing material)	9.07.B	10 Days	Additional fee equal to project fee
	Exception for Hazardous Conditions	9.05.B	Concurrent with Project	Regular Project fee
	((Annual	9.04.A.8	Prior Notice	$1,000))
*	Demolitions with asbestos projects involving less than 10 linear feet or less than 48 square feet may submit an asbestos project notification under this project category and will be eligible for the 3-day notification period.
**	Except in the case where advance notice is not required pursuant to Section 9.04.C.2.
***	For an amendment where the project type or job size category is associated with a higher fee, a fee equal to the difference between the fee associated with the most recently submitted notification and the fee associated with the increased project type or job size category shall be submitted.

     1. The Board shall periodically review the fee schedule for notifications submitted pursuant to Section 9.04 and determine if the total projected fee revenue to be collected pursuant to this Section is sufficient to fully recover program costs. Any proposed fee revisions shall include opportunity for public review and comment. Accordingly, the Agency shall account for program costs, including employee costs and overhead. If the Board determines that the total projected fee revenue is either significantly excessive or deficient for this purpose, then the Board shall amend the fee schedule to more accurately recover program costs.

     B. The Control Officer may waive the asbestos project fee and notification period, by written authorization, for disposal of unused and intact or abandoned (without the knowledge or consent of the property owner) asbestos-containing materials. All other asbestos project and demolition requirements remain in effect.

     C. Where a compliance investigation is conducted pursuant to Section 9.04 of this Regulation, the compliance investigation fee shall be equal to $50 per hour of compliance investigation.

     D. The asbestos project fee in Section 10.09.a is waived for any demolition performed in accordance with RCW 52.12.150(6), where the good faith inspection is an asbestos survey, as defined in Section 9.02.G, performed by an AHERA Building Inspector, as defined in Section 9.02.A.

     E. Fees shall be paid without regard to whether the request(s) associated with this Section are approved or denied.

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