WSR 08-08-093

PROPOSED RULES

PUGET SOUND

CLEAN AIR AGENCY

[ Filed April 1, 2008, 4:56 p.m. ]

     Original Notice.

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

     Title of Rule and Other Identifying Information: Amend Regulation I, Sections 5.07 (Annual Registration Fees); 6.04 (Notice of Construction Fees); 7.07 (Operating Permit Fees); and Regulation III, Section 4.03 (Asbestos Notification Requirements).

     Hearing Location(s): Puget Sound Clean Air Agency, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, on May 22, 2008, at 9:15 a.m.

     Date of Intended Adoption: May 22, 2008.

     Submit Written Comments to: Lynn Sykes, Puget Sound Clean Air Agency, 1904 3rd Avenue, #105, Seattle, WA 98101, e-mail lynns@pscleanair.org, fax (206) 343-7522, by May 21, 2008.

     Assistance for Persons with Disabilities: Contact agency receptionist, (206) 689-4010, by May 15, 2008, TTY (800) 833-6388 or (800) 833-6385 (Braille).

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The agency annually reviews the fee structure for the registration, notice of construction, operating permit, and asbestos programs to determine if fees collected cover the costs incurred by the programs. Fee increases are proposed for each of the programs due to an increase in the cost-of-living, and inflationary impacts to other operational costs.

     In addition, technical changes/clarifying edits are proposed as follows:

     In Regulation I, Section 5.07 (c)(6): Add a fee category for large commercial composting operations (with compost processing capacity of >100,000 tons per year) to reflect the amount of staff time required.

     In Regulation I, Section 6.04(a) Electric Generation Project: Remove the MW ratings paired with the combined heat input capacity, and rely solely on the heat input capacity to set the fee category because there is not always a one MMBtu to MW ratio.

     In Regulation I, Section 7.07 (b)(1)(ii): Remove sawmills from fee category (ii) to reflect an equity adjustment based on the amount of staff time required.

     Reasons Supporting Proposal: The proposal aligns each of the four programs with their projected operating expenses.

     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: Jim Nolan, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, (206) 689-4053.

     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 1, 2008

Dennis J. McLerran

Executive Director

AMENDATORY SECTION


REGULATION I SECTION 5.07 ANNUAL REGISTRATION FEES


     (a) The Agency shall assess annual fees as set forth in Section 5.07(c) of this regulation for services provided in administering the registration program. Fees received under the registration program shall not exceed the cost of administering the program, which shall be defined as initial registration and annual or other periodic reports from the source owner providing information directly related to air pollution registration, on-site inspections necessary to verify compliance with registration requirements, data storage and retrieval systems necessary for support of the registration program, emission inventory reports and emission reduction credits computed from information provided by sources pursuant to registration program requirements, staff review, including engineering analysis for accuracy and currentness, of information provided by sources pursuant to registration program requirements, clerical and other office support provided in direct furtherance of the registration program, and administrative support provided in directly carrying out the registration program. Payment of these fees by the owner or operator of a source shall maintain its active registration status (even if it is not actively operating).

     (b) Upon assessment by the Agency, registration fees are due and payable within 45 days of the date of the invoice. They shall be deemed delinquent if not fully paid within 45 days of the date of the invoice and shall be subject to an additional delinquent fee equal to 25% of the original fee, not to exceed $1,000. 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).

     (c) Except as specified in Section 5.07 (d) and (e) of this regulation, registered sources shall be assessed a fee of (($935)) $1,000, plus the following fees:

     (1) Sources subject to a federal emission standard as specified in Section 5.03 (a)(1) of this regulation shall be assessed $1,750 per subpart of 40 CFR Parts 60-63;

     (2) Sources subject to a federally enforceable emission limitation as specified in Section 5.03 (a)(2) or meeting the emission thresholds specified in Section 5.03 (a)(3) of this regulation shall be assessed $2,000;

     (3) Sources subject to the emission reporting requirements under Section 5.05(b) of this regulation shall be assessed (($23)) $25 for each ton of CO and (($46)) $50 for each ton of NOx, PM10, SOx, HAP, and VOC, based on the emissions reported during the previous calendar year;

     (4) Sources with more than one coffee roaster installed on-site that are approved under a Notice of Construction Order of Approval shall be assessed $2,000; ((and))

     (5) Sources of commercial composting with raw materials from off-site and with an installed processing capacity of <100,000 tons per year shall be assessed $5,000; and((.))

     (6) Sources of commercial composting with raw materials from off-site and with an installed processing capacity of ≥100,000 tons per year shall be assessed $10,000.

     (d) Gasoline dispensing facilities shall be assessed the following fees based on their gasoline throughput during the previous calendar year (as certified at the time of payment):

     (1) More than 6,000,000 gallons . . . . . . . . . . . . (($3,300)) $3,550;

     (2) 3,600,001 to 6,000,000 gallons . . . . . . . . . . . . (($1,650)) $1,765;

     (3) 1,200,001 to 3,600,000 gallons . . . . . . . . . . . . (($1,100)) $1,175;

     (4) 840,001 to 1,200,000 gallons . . . . . . . . . . . . (($550)) $590;

     (5) 200,001 to 840,000 gallons . . . . . . . . . . . . (($275)) $295.

     (e) The following registered sources shall be assessed an annual registration fee of (($110)) $120, provided that they meet no other criteria listed in Section 5.03(a) of this regulation:

     (1) Sources with spray-coating operations subject to Section 9.16 of this regulation that use no more than 4,000 gallons per year of total coatings and solvents;

     (2) Gasoline dispensing facilities subject to Section 2.07 of Regulation II with gasoline annual throughput during the previous calendar year (as certified at the time of payment) of no more than 200,000 gallons;

     (3) Motor vehicle and mobile equipment coating operations subject to Section 3.04 of Regulation II;

     (4) Unvented dry cleaners subject to Section 3.03 of Regulation III; and

     (5) Batch coffee roasters subject to notification under Section 6.03 (b)(11) of this regulation.


AMENDATORY SECTION


REGULATION I SECTION 6.04 NOTICE OF CONSTRUCTION FEES


     (a) A Notice of Construction application is incomplete until the Agency has received fees as shown below:

     Filing Fee (for each application, to be paid prior to any review) . . . . . . . . . . . . (($750)) $1,000

     ((Spray-Coating Booth (commercially manufactured) . . . . . . . . . . . . $250))

     Coffee Roaster (less than 40 pounds/batch, with thermal oxidizer) . . . . . . . . . . . . $500

     Hot Mix Asphalt Batch Plant . . . . . . . . . . . . $7,000

     Soil Thermal Desorption Unit . . . . . . . . . . . . $5,000


     Electric Generation Project: (combined heat input capacity)

     10 - 100 million Btu/hr (((2.9 - 29 MW))) . . . . . . . . . . . . $5,000

     101 - 250 million Btu/hr (((29 - 73 MW))) . . . . . . . . . . . . $10,000

     >250 million Btu/hr (((>73 MW))) . . . . . . . . . . . . $25,000

     Composting Facility . . . . . . . . . . . . $10,000

     Commercial Solid Waste Handling Facility . . . . . . . . . . . . $10,000

     Landfill Gas System . . . . . . . . . . . . $2,500

     Refuse Burning Equipment: (rated charging capacity)

     <12 tons per day . . . . . . . . . . . . $5,000

     >12 tons and <250 tons per day . . . . . . . . . . . . $20,000

     >250 tons per day . . . . . . . . . . . . $50,000


     Other (not listed above) for each Piece of Equipment and Control Equipment . . . . . . . . . . . . $500


     Additional Charges (for each application):

     SEPA Threshold Determination . . . . . . . . . . . . (($500)) $700

     (DNS, under Regulation I, Section 2.04)


     SEPA Threshold Determination . . . . . . . . . . . . $1,500

     (MDNS, under Regulation I, Section 2.07)


     Public Notice . . . . . . . . . . . . $500

     (under WAC 173-400-171)     (+ publication costs)

     Public Hearing . . . . . . . . . . . . $500

     (under WAC 173-400-171)     (+ publication costs, if

     separate public notice)


     NSPS or NESHAP . . . . . . . . . . . . $1,000

     (per subpart of 40 CFR Parts 60, 61, and 63)


     Refined Dispersion Modeling Analysis . . . . . . . . . . . . (($500)) $700

     (under Regulation III, Section 2.07 (c)(2))


     Major Source, Major Modification, or

     Emission Increases Greater than Prevention of Significant Deterioration (PSD) Thresholds . . . . . . . . . . . . $5,000

     (under WAC 173-400-112 or WAC 173-400-113)     (+ Ecology fees)


     An Agency request for an Inapplicability

     Determination for PSD Program Requiring

     Written Applicability Determination from Ecology . . . . . . . . . . . . $5,000


     Construction or Reconstruction of a

     Major Source of Hazardous Air Pollutants

     (see 40 CFR 63.2) . . . . . . . . . . . . $2,500


     Tier II Air Toxics Review . . . . . . . . . . . . $5,000

     (under WAC 173-460-090)     (+ Ecology fees)


     Opacity/Grain Loading Correlation . . . . . . . . . . . . $5,000


     (b) A notification under Section 6.03 (b)(1) through Section 6.03 (b)(9) and 6.03 (b)(11) of this regulation is incomplete until the Agency has received a fee of $100. An application processed as a Notice of Construction exemption under Section 6.03 (b)(10) requires payment of the Notice of Construction filing fee only. An application for coverage under a general order of approval issued by this Agency is not subject to the fees in Section 6.04(a) and instead requires payment of a $500 fee, which is due prior to any review of the application.

     (c) The Control Officer is authorized to enter into a written cost-reimbursement agreement with an applicant as provided in RCW 70.94.085.

     (d) Additional Fee for Service - Second Incomplete Application

     Upon receipt of a second incomplete Notice of Construction application from the same applicant for the same project, the Control Officer may cease review of the application and provide written notification of that determination. The Control Officer may resume review of the application if, within 30 days of the date of the notification describing the Agency's receipt of the second incomplete Notice of Construction application, the applicant has deposited $1,000 with the Agency, and executed a fee-for-service agreement with the Agency that allows the Agency to recover the reasonable direct and indirect costs that arise from processing the Notice of Construction application, including the requirements of other relevant laws such as the Washington State Environmental Policy Act (SEPA).

     The agreement shall require that the applicant assume full responsibility for paying the Agency for the costs incurred under the fee-for-service agreement. The Agency shall credit the $1,000 deposit made by the applicant towards the costs required by a fee-for-service agreement. The fee-for-service agreement may require the applicant to make progress payments during the application review period. The $1,000 deposit referred to in this section and the costs provided for in a fee-for-service agreement are in addition to the fees required in Section 6.04(a).

     If the applicant has not made a $1,000 deposit and executed such a fee-for-service agreement within 30 days of the date of the notification from the Agency describing its receipt of a second incomplete application, the Agency may issue an Intent to Disapprove an Application.

     The $1,000 deposit required under this section is not refundable. In addition, any payments made to the Agency under a fee-for-service agreement are not refundable.

     (e) Additional Fee - Revised Application

     The Control Officer may assess an additional fee for processing a Notice of Construction application when a subsequent significantly revised application is submitted after the original application was determined to be complete and prior to the Agency issuing an Order of Approval or Intent to Disapprove an Application regarding the original application. The revision fee shall be the amount of the fee that was charged for the original Notice of Construction application, including the filing fee. The resulting total fee is the fee for the original Notice of Construction application plus the revision fee.


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
. . . . . . . . . . . . (($40,000)) $44,000

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


NAICS NAICS Description Fee
311119 Other Animal Food Manufacturing
311812 Commercial Bakeries
((321113 Sawmills))
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
. . . . . . . . . . . . (($10,000)) $11,000

     (iii) Operating permit sources with NAICS codes other than listed above . . . . . . . . . . . . (($20,000)) $22,000

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

     (($23)) $25 for each ton of CO reported in the previous calendar year, and

     (($46)) $50 for each ton of NOx reported in the previous calendar year, and

     (($46)) $50 for each ton of PM10 reported in the previous calendar year, and

     (($46)) $50 for each ton of SOx reported in the previous calendar year, and

     (($46)) $50 for each ton of VOC reported in the previous calendar year, and

     (($46)) $50 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 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 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.

AMENDATORY SECTION


REGULATION III SECTION 4.03 ASBESTOS NOTIFICATION REQUIREMENTS


     (a) General Requirements

     It shall be unlawful for any person to cause or allow any work on an asbestos project or demolition unless a complete notification, including the appropriate nonrefundable fee and any additional information requested by the Control Officer, has been submitted to the Agency in accordance with the waiting period and fee requirements in Section 4.03(d) of this regulation. Except for the annual notification requirements in Section 4.03 (a)(8) of this regulation, the notification must be submitted on approved forms through the Agency website.

     (1) The duration of an asbestos project shall be commensurate with the amount of work involved.

     (2) Notification is not required for asbestos projects involving less than 10 linear feet of friable, asbestos-containing material on pipes and/or 48 square feet of friable, asbestos-containing material on other components (per structure, building, or vessel, per calendar year).

     (3) Notification is not required for removal and disposal of nonfriable, asbestos-containing material.

     (4) Notification is required for all demolitions involving structures with a projected roof area greater than 120 square feet, even if no asbestos-containing material is present.

     (5) All demolitions require a 10-day waiting period unless waived under Section 4.03 (c)(1) of this regulation.

     (6) A printout of the notification, all amendments to the notification, and the asbestos survey shall be available for inspection at all times at the asbestos project or demolition site.

     (7) A notification for multiple asbestos projects or demolitions may be submitted on one form if the structures are located in a contiguous area.

     (8) Annual Notification

     A property owner may file one annual notification for asbestos projects to be conducted on one or more structures, vessels, or buildings during each calendar year if all of the following conditions are met:

     (A) The annual notification shall be filed with the Agency before commencing work on any asbestos project included in an annual notification;

     (B) The total amount of asbestos-containing material for all asbestos projects from each structure, vessel, or building in a calendar year under this section is less than 260 linear feet on pipes and/or less than 160 square feet on other components; and

     (C) The property owner submits quarterly written reports to the Control Officer on Agency-approved forms within 15 days after the end of each calendar quarter.

     (b) Amendments

     (1) An amendment shall be submitted to the Control Officer in a notification through the Agency website for the following changes and shall be accompanied by the appropriate nonrefundable fee as set forth in Section 4.03(d) of this regulation:

     (A) Changes between asbestos and demolition project types;

     (B) Increases in the job size category that increase the fee;

     (C) Changes in the start date; or

     (D) Changes in the completion date.

     (2) Amendments may not be used to add or change project site addresses listed on a previously submitted notification.

     (c) Emergencies

     (1) The waiting period may be waived if an asbestos project or demolition must be conducted immediately because of any of the following:

     (A) There was a sudden, unexpected event that resulted in a public health or safety hazard;

     (B) The project must proceed immediately to protect equipment, ensure continuous vital utilities, or minimize property damage;

     (C) Asbestos-containing materials were encountered that were not identified during the asbestos survey; or

     (D) The project must proceed to avoid imposing an unreasonable burden.

     (2) The waiting period and fees may be waived for disposal of abandoned, (without the knowledge or consent of the property owner) friable, asbestos-containing material by written approval of the Control Officer.

     (d) Waiting Period and Fees

Project Waiting Period Asbestos Fee Demolition Fee
Single-Family Residence:
• Asbestos Project prior written notification (($25)) $30
• Demolition (with or without

asbestos project)

10 days $0 (($50)) $75
Other than Single-Family Residence:
• less than 10 linear ft and/or

• less than 48 square ft

10 days for demolition $0 (($50)) $75
• 10 - 259 linear ft and/or

48 - 159 square ft

prior written notification for asbestos (($50)) $75
10 days for demolition (($50)) $75
• 260 - 999 linear ft and/or

160 - 4,999 square ft

10 days (($200)) $250 (($50)) $75
• 1,000+ linear ft and/or

5,000+ square ft

10 days (($600)) $750 (($50)) $100
Emergency - 4.03(c)* prior written notification applicable fees+ $50
Amendment - 4.03(b) prior written notification applicable fees+ $25
Annual Notice of Intent - 4.03 (a)(8) prior written notification $1,000

*Single-family residences are exempt from the emergency fee.

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