WSR 08-11-078

PROPOSED RULES

SPOKANE REGIONAL

CLEAN AIR AGENCY

[ Filed May 19, 2008, 11:44 a.m. ]

Original Notice.

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

Title of Rule and Other Identifying Information: Revise SRCAA Regulation I, Article X, Section 10.06 - Registration and Operating Permit Fees For Air Contaminant Sources and SRCAA Regulation I, Article X, Section 10.07 - Application and Permit Fees for Notice of Construction and Application for Approval and for Notice of Intent to Install and Operate a Temporary Stationary Source.

Hearing Location(s): Spokane County Public Works Building, Lower Level Hearing Room, 1206 West Broadway, Spokane, WA 99201, on July 3, 2008, at 9:30 a.m.

Date of Intended Adoption: July 3, 2008.

Submit Written Comments to: April Westby, 1101 West College, Suite 403, Spokane, WA 99201, e-mail awestby@spokanecleanair.org, fax (509) 477-6828, by July 2, 2008.

Assistance for Persons with Disabilities: Contact Barbara Nelson by July 2, 2008, (509) 477-4727 ext. 116.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Purpose: Revise SRCAA Regulation I, Article X, Sections 10.06 and 10.07 to allow for full cost recovery of SRCAA's air operating permit (AOP) program and to separate notice of construction (NOC) fees from AOP annual fees, as directed by SRCAA's board of directors on April 3, 2008.

Anticipated Effects: The proposed fee changes will allow SRCAA to reconcile any AOP program deficit or surplus during the next billing cycle and will separate NOC fees from AOP annual fees.

Changes to Existing Rules:

(1) Addition of "AOP Program Cost Correction" fee as a component to the annual AOP fee given in SRCAA Regulation I, Section 10.06 C.2, which will reconcile any AOP program deficit or surplus during the next billing cycle. The "AOP Program Cost Correction" fee would be divided among the AOP sources according to the percentage of the total AOP fees that each source's individual fees comprise; and

(2) Separation of NOC fees from Title V Air Operating Permit annual fees. SRCAA Regulation I, Section 10.06 C.2 will be revised to clarify that time spent on NOC application reviews is not included as part of the annual AOP fee. In addition, Section 10.07 will be revised so that the NOC fees will apply to AOP sources.

Reasons Supporting Proposal: AOP program is not currently at full cost recovery, as mandated by federal and state clean air acts.

Statutory Authority for Adoption: RCW 70.94.141 and 70.94.380(2)

Statute Being Implemented: Chapter 70.94 RCW, 42 U.S.C. 7401 et. seq. and 42 U.S.C. 7412.

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

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: SRCAA's AOP program, a federally mandated program delegated to SRCAA, commenced in 1994. Currently, the AOP program is not at full cost recovery. The proposed changes in the AOP fees will allow for full cost recovery. In addition, the proposed changes separate the NOC fees from the annual AOP sources, as required by EPA.

Name of Proponent: Spokane Regional Clean Air Agency (SRCAA), governmental.

Name of Agency Personnel Responsible for Drafting and Implementation: April Westby, 1101 West College, Suite 403, Spokane, WA 99201, (509) 477-4727; and Enforcement: Barbara Nelson, 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. Chapter 19.85 RCW does not apply to local air pollution control authority rule development/amendments.

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 amendment.

May 19, 2008

April L. Westby

Environmental Engineer

AMENDATORY SECTIONS


REGULATION I, ARTICLE VI, SECTION 10.06 & 10.07


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 below;


1. Registration Fee Categories Fee Fee Applicability
Facility Fee A Per the Fee Schedule Per Source
Emissions Fee B Per the Fee Schedule Per Ton
Emission Point Fee C Per the Fee Schedule Per Stack/Point
Burn Out Oven/Incinerator Fee D Per the Fee Schedule Per Source
Synthetic Minor Fee E Per the Fee Schedule Per Source
WEDS Fee F Per the Fee Schedule Per Hour

a. Each source is subject to the fee listed.

b. The additional fee listed applies to each ton (rounded to the nearest one-tenth of a ton) of each criteria and toxic air pollutant emitted.

c. The additional fee applies to each stack and other emission points. For gasoline stations, each gasoline tank vent is an emission point.

d. The additional fee listed applies to each source which operated at least one incinerator or burn out oven during the registration period.

e. The additional fee listed applies to each Synthetic Minor source as defined in SRCAA Regulation I, Article I, Section 1.04.

f. The additional fee listed applies to each source required by the Authority to submit an annual emissions inventory for entry into the Washington Emission Data System (WEDS). SRCAA staff time spent processing and reviewing WEDS will be tracked in 15 minute increments and charged at the hourly rates provided above.

2. The Board shall periodically 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 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.

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. SRCAA time fee, as determined by the following formula:


TFI = (HI + HG) x RPC
HT

Where,

TF1 is the SRCAA time fee for AOP source, I;

H1 is the total SRCAA staff hours spent on AOP source, not including time spent on Notice of Construction application reviews, I;

HG is the total general hours 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 SRCAA AOP program cost, calculated by subtracting the sum of the Section 10.06.C.2.a and b. fees from the total SRCAA AOP program costs; and

HT is the total number of hours SRCAA staff spent on the AOP program, including total time spent on the AOP sources and general hours spent on the AOP program.

Note: HI, HG, HT, and RPC are for the most recent SRCAA fiscal year.

Note: HI, HG, and HT are obtained from SRCAA time accounting records.

d. ((Program deficit recovery fee)) AOP Program Cost Correction, as determined by the following formula:


PDRFI y=2006->2015 = Remaining Program Deficity x EI(y - 1)
(2016 - y) ET(y - 1)
PCCI = AOP Program Cumulative Deficit or Surplus x FI
FT

Where,

PCCI is the AOP Program Cost Correction assessed ((PDRFI 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"));

AOP Program Cumulative Deficit or Surplus is the cumulative financial deficit or surplus for SRCAA's ((Remaining Program Deficity is the total cumulative funding deficit for SCAPCA's AOP program at the end of the most recent SRCAA fiscal year (("y"));

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

FI is the total individual fee assessed pursuant to Section 10.06.C.2.a., b., and c., of this Regulation; and

FT is the sum of all the individual fees assessed pursuant to Sections 10.06.C.2.a., b., and c. of this Regulation.

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

ET 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;

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

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

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

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

a. A fee of (($50)) $65 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;

FI is the total individual fee assessed pursuant to Section 10.06.C.3.a. of this Regulation;

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

FT is the sum of all the individual fees assessed pursuant to Sections 10.06.C.3.a. of this Regulation.

Reviser's note: The typographical errors in the above material occurred in the copy filed by the Spokane Regional Clean Air Agency and appear in the Register pursuant to the requirements of RCW 34.08.040.


SECTION 10.07 APPLICATION AND PERMIT FEES FOR NOTICE OF CONSTRUCTION AND APPLICATION FOR APPROVAL (NOC) AND FOR NOTICE OF INTENT TO INSTALL AND OPERATE A TEMPORARY STATIONARY SOURCE (NOI)


((The fees contained in Section 10.07 do not apply to air operating permit sources.))

A. NOC and NOI Fees

1. Base Fee

a. For each project required by Article V to file a NOC or a NOI, the applicant shall pay a base fee pursuant to the fee schedule. Base fee classes are listed below.

1) Class I - Notice of Intent Permit

Notice of Intent permits for portable stationary sources and temporary stationary sources include the following:


Source/Source Category Description Article IV,

Exhibit R

Category

(a) Asphalt plant 15
(b) Concrete batch plant / ready mix plant 22
(c) Rock crusher 36

2) Class II - Simple Notice of Construction Permit

Simple permits generally conform to a template and involve minimal off-site impact evaluation. They include the following:


Source/Source Category Description Article IV,

Exhibit R

Category

(a) Boiler and other fuel-burning equipment 27
(b) Coffee roaster 20
(c) Concrete batch plant / ready mix plant 22
(d) Dry cleaner 23
(e) Emergency generator 52
(f) Gasoline dispensing facility 28
(g) Lithographic printing / screen printing 9.e.5
(h) Material handling that exhausts ≥ 1,000 acfm 24
(i) Rock crusher 36
(j) Spray booth / surface coating operation 57
(k) Stationary internal combustion engine 53
(l) Sterilizer 9.e.8
(m) Stump / wood waste grinder 54

3) Class III - Standard Notice of Construction Permit

Standard permits generally include those that don't conform to a template and involve minimal off-site impact evaluation. They include the following:

Source/Source Category Description Article IV,

Exhibit R

Category

(a) Soil and groundwater remediation operation 9.e.7
(b) Burn out oven 43
(c) Chrome plating 35
(d) Incinerator / crematory 31

4) Class IV - Complex Notice of Construction Permit

Complex permits generally include those that don't conform to a template and involve more complex off-site impact evaluation. They include the following:


Source/Source Category Description Article IV,

Exhibit R

Category

(a) Asphalt plant 15
(b) Composting 21
(c) Refuse systems 48
(d) Rendering 49
(e) Sewerage systems 50

b. For sources / source categories not listed in Section 10.07.A.1.a, above, NOI and NOC application review will be assigned to Class I, II, II or IV by the Control Officer on a case-by-case basis.

c. For sources with one or more emission points under one NOC application, as allowed in Section 5.02.G, a separate base fee applies to each emissions unit, or each group of like-kind emissions units, being installed or modified. A group of emissions units shall be considered as like-kind if the same set of emission calculations can be used to characterize emissions from each of the emissions units.

2. Modification / Revision Fee

a. Equipment Modification Fee

Applicants of sources requesting a change in equipment (e.g., replacement or substantial alteration of emission control technology) pursuant to Section 5.10.C of this Regulation shall pay a fee pursuant to the fee schedule.

b. Permit Condition Revision Fee

Applicants of sources requesting a change in conditions pursuant to Section 5.10.C of this Regulation shall pay a fee pursuant to the fee schedule.

3. Additional Fees (for each application)

a. SEPA Review Fee

Where review of an Environmental Impact Statement (EIS), Environmental Checklist, or an Addendum to, or adoption of, an existing environmental document pursuant to the State Environmental Policy Act (SEPA) Chapter 197-11 WAC is required, in association with a NOC or a NOI, the applicant shall pay a SEPA or EIS review fee pursuant to the fee schedule.

b. Toxics Review Fee

For any new source of air pollution which requires review pursuant to Chapter 173-460 WAC, a toxic air pollutant review fee shall be paid. For sources with one or more emission points under one NOC application, as allowed in Section 5.02.G, a separate toxic air pollutant review fee applies to each emissions unit, or each group of like-kind emissions units, being installed or modified. A group of emissions units shall be considered as like-kind if the same set of emission calculations can be used to characterize emissions from each of the emissions units. The toxic air pollutant review fee shall be as follows:

1) Small Quantity Emission Rate (SQER)

For a new source using WAC 173-460-080 (2)(e), SQER, to demonstrate that ambient impacts are sufficiently low to protect human health and safety, as required WAC 173-460-070 & WAC 173-460, the applicant shall pay a SQER review fee pursuant to the fee schedule.

2) Dispersion Modeling

For a new source using dispersion screening models (e.g., EPA SCREEN or TSCREEN) under WAC 173-460-080 (2)(c) to demonstrate that ambient impacts are sufficiently low to protect human health and safety, as required WAC 173-460-070, the applicant shall pay a dispersion modeling review fee pursuant to the fee schedule.

3) Advanced Modeling

For a new source using more refined dispersion models (e.g., EPA ISC3) under WAC 173-460-080 (2)(c) to demonstrate that ambient impacts are sufficiently low to protect human health and safety, as required WAC 173-460-070; or for a new or modified source using a second tier analysis under WAC 173-460-090 or a risk management decision under WAC 173-460-100 to demonstrate that ambient impacts are sufficiently low to protect human health and safety, as required WAC 173-460-070, the applicant shall pay the advanced modeling review fee in the fee schedule.

c. New Source Performance Standards (NSPS) Review Fee

Applicants of any new air pollution source subject to WAC 173-400-115 (NSPS) and 40 CFR Parts 60 shall pay a NSPS review fee according to the fee schedule.

d. National Emission Standard for Hazardous Air Pollutants (NESHAP) Review Fee

Applicants of any new air pollution source subject to WAC 173-400-075 (NESHAP) and 40 CFR Parts 61 and 63 shall pay a NESHAP fee according to the fee schedule.

e. Best Available Control Technology (BACT) Review Fee

1) Generic BACT

Where no BACT review is required (e.g., the applicant demonstrates there is an established and/or recognized BACT standard for the source category type), a BACT review fee is not applicable.

2) Non-Generic BACT Review

A non-generic BACT review is one where a generic BACT standard is not applicable and a top-down BACT review is not required. Applicants of any new air pollution source subject to a non-generic BACT review shall pay a non-generic BACT review fee according to the fee schedule.

3) Top-Down BACT Review (as described in EPA's Draft New Source Review Workshop Manual from October 1990 and as summarized below)

A top-down BACT review is one that requires available control technologies be ranked in descending order of control effectiveness. The most stringent or "top" control technology is first examined. That control technology is established as BACT unless the applicant demonstrates, and the ((Authority)) Agency concurs, that technical considerations, energy, environmental, or economic impacts justify a conclusion that the most stringent technology is not achievable in for the project being proposed. If the most stringent control technology is eliminated in this fashion, the next most stringent control technology is considered, and so on. Applicants of any new air pollution source subject to a top-down BACT review shall pay a top-down BACT review fee according to the fee schedule.

B. Payment of Fees

1. At the Time of Application

The base fee shall be paid at the time of application. Review of the application will not commence until the applicable base fee is received.

2. After Application

a. Payment of Fees for Complete Applications

The Agency will invoice the owner, operator, or applicant for all other applicable fees without regard to whether the request(s) associated with this section are approved or denied.

b. Payment of Fees for Incomplete Applications

If an owner, operator, or applicant notifies SRCAA in writing that an incomplete application will not be completed or cancels the application (i.e., the application is neither approved or denied), applicable fees for review performed pursuant to A.2 and A.3 of this section shall be invoiced. If an application remains incomplete for more than 3 months, the owner, operator, or applicant shall be invoiced applicable fees for review performed pursuant to A.2 and A.3 of this section. If review of the application recommences, applicable review fees apply.

C. Incomplete Applications

Applications not accompanied by the base fee will be considered incomplete. In addition, if information requested by the Agency is not provided, the application will be considered incomplete and review of the application will be suspended. Review of the application will commence, or recommence when applicable, when all required fees and information requested by the Agency is received. An application will be cancelled if it remains incomplete for more than 18 months from initial receipt. For review of the cancelled application to resume, the applicant must pay all outstanding invoice fees, if applicable, and resubmit the applicable base fee.

D. Compliance Investigation Fee

Where a compliance investigation is conducted pursuant to Section 5.12 of this Regulation, the compliance investigation fee shall be assessed pursuant to the fee schedule. The fee shall be assessed for each emissions unit, or group of like-kind emissions units, being installed or modified. A group of emissions units shall be considered as like-kind if the same set of emission calculations can be used to characterize emissions from each of the emissions units.

E. Periodic Fee Review

The Board shall periodically review the fee schedule and determine if the total actual fee revenue collected and 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 project 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. In general, fees will be greater for permits that are typically more complex or take more time to review and process.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above material occurred in the copy filed by the Spokane Regional Clean Air Agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

Washington State Code Reviser's Office