Original Notice.

     Preproposal statement of inquiry was filed as WSR 12-11-133.

     Title of Rule and Other Identifying Information: Air quality fee regulation, chapter 173-455 WAC.

     Hearing Location(s): We are holding one public hearing using conference call and video conference in three locations. The formal public hearing will follow a presentation and question and answer session. You can participate in person at one of ecology's regional offices in Lacey, Spokane and Yakima or call in. If you have called in to the conference call, you may ask questions during the question and answer session and provide formal comments.

     Hearing on September 25, 2012, at 1:30 p.m.

     Comments: Ecology will accept oral testimony at the video conference locations and by phone by calling in to the conference call.

     Materials: Hearing materials are available at http://www.ecy.wa.gov/programs/air/rules/fee_rule.html.

     Primary Location: Ecology Headquarters Building, Auditorium, 300 Desmond Drive S.E., Lacey, WA 98503.

     Videoconference Locations: Ecology Central Regional Office, Conference Room 204-A Waterfall, 15 West Yakima Avenue, Suite 200, Yakima, WA 98902; and Ecology Eastern Regional Office, Conference Room NW-18, North 4601 Monroe, Spokane, WA 99205.

     Conference Call: Call (360) 407-3780, PIN Code 980708#, wait for the conference operator to connect you to the hearing if lines are full.

     Date of Intended Adoption: November 30, 2012.

     Submit Written Comments to: Elena Guilfoil, Department of Ecology, Air Quality Program, P.O. Box 47600, Olympia, WA 98504-7600, e-mail AQComments@ecy.wa.gov, fax (360) 407-7534, by October 2, 2012.

     Assistance for Persons with Disabilities: Contact Tami Weiler in the air quality program, (360) 407-6800, by September 16, 2012. Persons with hearing loss call 711 for Washington relay service. Persons with a speech disability call 877-833-6341.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The air quality fee regulation includes fees for a number of air quality activities. This rule making mainly focuses on adjusting fees for the existing registration program and gas stations. Specifically, the rule-making proposes to:

     1. Increase yearly registration program fees for businesses that report their emissions every three years (periodic sources) from $400 a year to $450, $700 or $1000 a year based on emission rates, including increasing late fees from $50 to $68. The legislature directed ecology to increase these fees. They have not been changed in seventeen years since they were adopted in April 1995.

     2. Reestablish air quality inspection fees for gasoline dispensing facilities in ecology's jurisdiction. This is most of central and eastern Washington and San Juan County (see agency comment section). A gasoline dispensing facility regulated by a local air agency is not covered under this rule making. A $130 fee per tank dispensing gasoline is proposed to begin on July 1, 2013. The department of revenue (DOR) will collect the fee as part of the yearly business license. Reestablishing the gasoline vapor recovery inspection program reduces the health risk from benzene exposure at and near gasoline dispensing facilities, and reduces the formation of ozone.

     3. Insert the rates used to calculate the 2012 annual registration fees and remove the existing process in the rule to calculate these fees. The 2012 rates are established following the existing method in the rule and then increased by thirty-six percent as directed by the legislature.

     4. Provides a new process for making future fee increases for most fees in chapter 173-455 WAC. This change will not result in any additional fee increases at this time. Ecology proposes to link fee increases to the Washington fiscal growth factor when possible based on the cost of running the program without going through rule making. This translates to smaller and more frequent increases compared to larger and infrequent increases.

     5. Makes house-keeping changes to increase the understanding of the rule and clarify the rules' intent. House-keeping changes include, but are not limited to, consolidating registration program fees in one location, correcting word use, clarifying that an applicant could use the existing $200 prevention of significant deterioration (PSD) applicability determination fee for preapplication assistance beyond ecology's standard practice of one preapplication meeting, and updating the general orders. Ecology is continuing our current practice of holding a preapplication meeting between applicants and staff.

     Reasons Supporting Proposal: As directed by the legislature, the proposal for increasing registration program fees shifts responsibility for funding the program away from tax dollars to users of the program. Establishing a three-tiered system for fees for periodic registration program sources more equitably reflects the workload associated with regulating these businesses. We are reestablishing the gasoline vapor recovery inspection program to reduce public health risk from exposure to benzene and other toxic pollutants at and near gasoline dispensing facilities. Controlling gasoline vapor emissions reduces ozone formation to protect public health and prevent a violation of federal standards. We are replacing the method for determining annual registration program sources with the 2012 fee rates to simplify the process and improve fee transparency. Establishing a method for increasing fees in the future ensures that the cost of administering the program remains covered by fees and minimizes tax dollar subsidy of the program. Linking fee increases to Washington's fiscal growth factor is likely to result in smaller, more frequent increases compared to infrequent and large increases. We are also making a number of housekeeping changes to improve the understanding of the rule and clarify the rule's intent.

     Statutory Authority for Adoption: RCW 70.95.151 and chapter 70.94 RCW.

     Statute Being Implemented: Chapter 70.94 RCW, Washington Clean Air Act.

     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: Ecology's air quality jurisdiction covers most of central and eastern Washington and San Juan County. Local air agencies are responsible for ensuring compliance with federal, state and local rules in the other counties. Ecology's counties include:

•	Eastern Regional Office: Adams, Asotin, Columbia, Ferry, Franklin, Garfield, Grant, Lincoln, Pend Oreille, Stevens, Walla Walls [Walla Walla], Whitman.
•	Central Regional Office: Chelan, Douglas, Kittitas, Klickitat, Okanogan.
•	Northwest Regional Office: San Juan.

     Clarifying the intent of the PSD preapplication discussion fee: Before submitting an application, ecology holds a preapplication meeting with an applicant to discuss their project and the permitting process. This fee provides a venue for applicants who are not ready to file an application but want ecology to continue scoping discussions about their project after ecology held its standard meeting. This change clarifies that the PSD applicability determination fee applies broadly to preapplication work.

     Consistent with the governor's directive to increase efficiencies and avoid duplicative activities, the existing underground storage tank inspectors will implement and enforce the inspections of the gasoline dispensing facilities. They currently inspect the gasoline vapor Stage 1 systems (underground storage tank systems) for compliance with other rules.

     Ecology intends to seek approval to begin rule making in early 2013 to update requirements in emission standards and controls for sources emitting gasoline vapors (chapter 173-491 WAC) for consistency with federal requirements.

     Name of Proponent: Department of ecology, governmental.

     Name of Agency Personnel Responsible for Drafting: Elena Guilfoil, Air Quality Program, 300 Desmond Drive, Lacey, WA, (360) 407-6855; Implementation and Enforcement: Greg Flibbert, Registration Program, Air Quality Program, North 4601 Monroe, Spokane, WA, (509) 329-3452; Mike Hibbler, Underground Storage Tank Program, North 4601 Monroe, Spokane, WA, (509) 329-3568; Sue Billings, Registration Program, Air Quality Program, 15 West Yakima Avenue, Yakima, WA, (509) 575-2486; and Valerie Bound, Underground Storage Tank Program, 15 West Yakima Avenue, Yakima, WA, (509) 454-7886.

     A small business economic impact statement has been prepared under chapter 19.85 RCW.

     Businesses that generate small and moderate amounts of air pollution must participate in the air quality source registration program. The registration program is necessary to ensure that sources of air pollution operate in a way that minimizes emissions to comply with the Clean Air Act and protect human health.

     Businesses generally report emissions either:

•	Yearly in the case of annual registration program sources.
•	Once every three years for periodic registration program sources.
•	Once every six years for exempt registration program sources.

     The proposed changes to the fee schedule include:

•	Increases to general registration program fees for periodic sources.
•	Reestablishing air quality registration fees for gasoline dispensing facilities.
•	Clarifying the process for calculating registration program fees.
•	Provide a method for making future fee increases.
•	Make housekeeping changes to facilitate clarity and compliance.

     Probable benefits include:

•	Decrease in public risk of benzene exposure.
•	Avoided decreases in program services.
•	Clarification and improved compliance.
•	Avoided decrease in program services.

     Probable quantified costs include:

•	$112,980 per year in total increased permit fees.

     Ecology calculated cost-to-employment ratios to examine the relative impacts of the proposed rule on small versus large businesses. Ecology also considered the impacts of the proposed rule on local governments and other small public entities, to reflect the requirements in the Governor's Executive Order 10-06.¹

     For periodic sources as well as gasoline dispensing facilities, the proposed fee increases result in roughly two hundred fifty times the impact on small businesses as opposed to large businesses on a per-employee basis. This means ecology must make reasonable effort to mitigate these disproportionate impacts.

     Ecology made decisions in the course of rule making intended to reduce disproportionate impacts on small businesses, including changing proposed fees that were likely to affect more small businesses. The proposed rule also includes text providing hardship and economic considerations for small businesses in altering their compliance costs.

     Based on the Washington state office of financial management's input-output model of the state economy, ecology calculated that the proposed rule may result in three to four jobs being lost in the economy permanently over the next twenty years.

     Chapter 1 Background: Based on research and analysis required by the Regulatory Fairness Act, RCW 19.85.070, ecology has determined the proposed rule amendments (chapter 173-455 WAC) likely have a disproportionate impact on small business. Therefore, ecology included cost-minimizing features in the rule where it is legal and feasible to do so.

     This document presents the:

•	Background for the analysis of impacts on small business relative to other businesses.
•	Results of the analysis.
•	Cost-mitigating action taken by ecology.

     It is intended to be read with the associated cost-benefit analysis (CBA) (Ecology Publication #12-02-011), which contains more in-depth discussion of the analyses.

     A small business is defined as having fifty or fewer employees. Estimated impacts are determined as compared to the existing regulatory environment - the way air quality fees would be regulated in the absence of the proposed rule amendments.

     The existing regulatory environment is called the "baseline" in this document. It includes only existing regulation through laws and rules at federal, state, and local levels. It does not include elements such as guidance or unofficial standard practices in industry or business.

     1.1 History: Air pollution control in Washington is based on federal, state and local laws and regulations. The federal Environmental Protection Agency (EPA), ecology, and local clean air agencies all regulate air quality. Ecology establishes rules, and implements and enforces air quality regulations in counties without a local clean air agency. Ecology also has statewide jurisdiction over primary aluminum plants, pulp mills, large commercial and industrial facilities subject to the federal PSD program, and emissions of specific toxic air pollutants that exceed specified levels.

     If you are located in one of the following counties, you have a local clean air agency: Benton, Clallam, Clark, Cowlitz, Grays Harbor, Island, Jefferson, King, Kitsap, Lewis, Mason, Pacific, Pierce, Skagit, Skamania, Snohomish, Spokane, Thurston, Wahkiakum, Whatcom, or Yakima. Local clean air agencies may implement and enforce most state regulations. All local clean air agencies have their own regulations that may be more restrictive than those of ecology, but not less.

     Ecology regulates businesses with air emissions that are located in certain areas:

•	Hanford Nuclear Reservation.
•	Central Region: Chelan, Douglas, Kittitas, Klickitat, and Okanogan Counties.
•	Eastern Region: Adams, Asotin, Columbia, Ferry, Franklin, Garfield, Grant, Lincoln, Pend Oreille, Stevens, Walla Walla, Whitman Counties.
•	Northwest Region: San Juan County.

     Ecology also regulates specific types of businesses, such as:

•	Kraft pulp and paper mills.
•	Primary aluminum mills.
•	Large industrial or commercial sources subject to the federal PSD program.
•	Emitters of specific toxic air emissions at rates higher than levels specified by rule.

     Businesses that generate small and moderate amounts of air pollution must participate in the air quality source registration program. The registration program is necessary to ensure that sources of air pollution operate in a way that minimizes emissions to comply with the Clean Air Act and protect human health.

     The registration information helps ecology to:

•	Maintain a current and accurate record of air pollution sources in Washington.
•	Provide businesses with technical assistance on how to comply with Clean Air Act requirements.
•	Verify that businesses are complying with air pollution control requirements.
•	Evaluate the effectiveness of air pollution control strategies.
•	Gather and verify emissions data.

     Businesses generally report emissions either:

•	Yearly in the case of annual registration program sources.
•	Once every three years for periodic registration program sources.
•	Once every six years for exempt registration program sources.

     1.2 Regulatory Baseline: In most cases, the regulatory baseline for the small business economic impact statement (SBEIS), just as for the CBA is the existing rule. Where there is no existing rule, federal and local regulations are the baseline. In the case of the proposed amendments to the air quality fees rule, the existing rule comprises the baseline. The regulatory baseline is the way air quality permit fees would be assigned if the proposed rule is not adopted - that is, based on existing laws and rules. The baseline does not include guidance and practices commonly used in existing permit fee determination and behavior if they are not required by a law, rule, permit, et cetera.

     1.3 Changes Under the Proposed Rule: Ecology analyzed the impacts of the following changes proposed to the air quality fees rule:

•	Increase general registration program fees for businesses that release small amounts of emissions and report those emissions every three years. These are periodic registration program sources.
•	Reestablish air quality registration fees for gasoline dispensing facilities (mainly gas stations).
•	Insert the 2012 fee rates used to calculate the annual registration fee and remove the existing process in the rule used to calculate these fees.
•	Provide a method for making future fee increases.
•	Address "housekeeping" changes necessary to improve the understanding and usability of the rule.

     For more information about these changes, see the associated cost-benefit and least burdensome alternatives analysis for the proposed rule amendments (Ecology Publication #12-02-011).

     Chapter 2 Analysis of Compliance Costs for Washington Businesses: Ecology estimated the expected costs associated with the proposed amendments to the air quality fee rule, as compared to the baseline as described in section 1.2. In this rule making, ecology is updating chapter 173-455 WAC, Air quality fee regulation. This rule action covers fees associated with periodic and annual sources.

     Businesses that generate small and moderate amounts of air pollution must participate in the air quality source registration program. The registration program is necessary to ensure that sources of air pollution operate in a way that minimizes emissions to comply with the Clean Air Act and protect human health.

     Businesses generally report emissions either:

•	Yearly in the case of annual registration program sources.
•	Once every three years for periodic registration program sources.
•	Once every six years for exempt registration program sources.

     The proposed changes to the fee schedule include:

•	Increases to general registration program fees for periodic sources.
•	Reestablishing air quality registration fees for gasoline dispensing facilities.
•	Clarifying the process for calculating registration program fees.
•	Provide a method for making future fee increases.
•	Make housekeeping changes to facilitate clarity and compliance.

     Probable benefits include:

•	Decrease in public risk of benzene exposure.
•	Avoided decreases in program services.
•	Clarification and improved compliance.
•	Avoided decrease in program services.

     Probable quantified costs include:

•	$112,980 per year in total increased permit fees.

     Ecology calculated cost-to-employment ratios to examine the relative impacts of the proposed rule on small versus large businesses. Ecology also considered the impacts of the proposed rule on local governments and other small public entities, to reflect the requirements in the Governor's Executive Order 10-06.

     For periodic sources as well as gasoline dispensing facilities, the proposed fee increases result in roughly two hundred fifty times the impact on small businesses as opposed to large businesses on a per-employee basis. This means ecology must make reasonable effort to mitigate these disproportionate impacts.

     Ecology made decisions in the course of rule making intended to reduce disproportionate impacts on small businesses, including changing proposed fees that were likely to affect more small businesses. The proposed rule also includes text providing hardship and economic considerations for small businesses in altering their compliance costs.

     Based on Washington state office of financial management's input-output model of the state economy, ecology calculated that the proposed rule may result in three to four jobs being lost in the economy permanently over the next twenty years.

     2.1 Quantification of Costs and Ratios: Ecology calculated the annual costs estimated to come from compliance with the proposed rule amendments. In this section, ecology summarizes compliance cost calculations (due to space constraints in this document, the full cost and benefit analyses are presented in the associated CBA, Ecology Publication #12-02-011).

     Ecology also discusses general qualities of businesses and compliance costs, as an additional illustration of the distribution of compliance costs across different business sizes.

     Proposed yearly source registration fees for periodic sources are based on the amount of annual emissions of various contaminants. However, there is strong correlation between business size and emissions. Table 1 summarizes this correlation (for example, eighty-one percent of small businesses are small emitters, ten percent are medium emitters and nine percent are large emitters).

     For gasoline dispensing facilities, proposed fees are based on the number of tanks. The average number of tanks per facility is two, for an average fee of $260. Currently, the fee is $100 per facility. Therefore, the cost attributable to the proposed rule amendments would be the difference between the current fee and the estimated fee, or $160 per facility.

     Chapter 3: Cost Per Employee: Three hundred twenty-three businesses that are currently periodic registration sources and four hundred sixteen gasoline dispensing facilities within ecology's jurisdiction would be impacted by this rule amendment.

     Periodic Sources: Of the periodic sources, nearly eighty percent are small businesses with less than fifty employees, averaging roughly twelve employees each.

     In accordance with SBEIS requirements in the Regulatory Fairness Act, ecology identified the largest ten percent of businesses that are impacted by the proposed rule amendments. The largest ten percent of affected businesses average four thousand four hundred forty-six employees each.

     Ecology is required to compare the costs per employee for small businesses (those employing fewer than fifty people) with the largest ten percent of all businesses complying. In comparing the per-employee costs of compliance with the proposed rule amendments, ecology found that the largest businesses experience the lowest per-employee costs, at roughly $0.04 per employee.

     The average number of employees for businesses with less than fifty employees is equal to approximately twelve employees. The smallest businesses experience greater per-employee costs (relative to the top ten percent of businesses), equal to $10.43 per employee.

     As a result, ecology believes the proposed rule imposes disproportionate costs on small businesses. Ecology must then include, in the proposed rule, elements mitigating costs to small businesses where legal and feasible. These are discussed in Chapter 4 Actions Taken to Reduce the Impact of the Rule on Small Business.

     Gasoline Dispensing Facilities: Nearly all of the gasoline dispensing facilities have less than fifty employees. There is no correlation between the number of tanks and the number of employees. Therefore, because the proposed fee increase averages $160 per facility, it is disproportional.

     Chapter 4 Actions Taken to Reduce the Impact of the Rule on Small Business: Ecology took a number of actions to reduce the disproportionate impacts on small business.

     Registration program:

•	While the proposed periodic source fee is a three-tiered fee structure based on the amount each business emits, as opposed to the size of the business, the strong correlation between emission level and business size acts to help mitigate the disproportionate impact on small businesses. This is because smaller business tends to have lower emissions and therefore they fall into the small source fee category.
•	To reduce the impact of the fee increase, a payment plan option is included in the rule. This allows a business to spread payments over several months.
•	The small business extreme hardship fee reduction is retained from the existing rule. A small business may reduce their fee in half if their net profit is $12,000 or less.
•	Routine compliance inspections of exempt sources (the smallest sources based on emissions) were discontinued. Ecology decided there was minimal value in inspecting this group on a routine basis. This saves the business the lost work time spent meeting with an inspector once every six years.

     Gasoline distribution:

•	Ecology shifted the implementation of the inspection program from the air quality program to existing underground storage tank inspectors, almost halving the fee.
•	Contracting with the DOR to collect the fee as part of the licensing renewal process reduces the fee.
•	Fee[s] are phased in beginning six months after the rule is adopted and will be collected on the renewal date of the owner's business license. This saves the business from being billed twice in one year.

     Chapter 5 Involvement of Small Business in the Development of the Proposed Rule Amendments: Ecology involved small business and local governments (as well as large businesses and other interested parties) in the proposed rule.

     Small business and local governments in most of central and eastern Washington and San Juan County are the stakeholders for this rule making. The stakeholders for this process were allowed to self-select to participate. We sent a postcard to all affected businesses in advance of each of the two meetings notifying them of our intent to increase or reestablish fees and inviting them to attend. To reduce barriers to participation, a conference line was available for each meeting. The registration meetings were held in Moses Lake. The gas station meetings were held as video conferences with locations at the ecology regional offices in Lacey, Spokane and Yakima.

•

For the first meeting about the registration program, ten business representatives that included several small businesses participated in person at the Moses Lake location. Another eight participated via the telephone. Everyone was encouraged to submit their comments via e-mail on the fee options discussed at the meeting, both ecology's and those suggested by participants. Fewer small businesses participated in the second meeting although that did not reduce the value of the comments.

•

For the first gas station meeting, two staff from one gas station attended in person at the Spokane office and five gasoline distributors participated by telephone. Several small business representatives participated, along with two representatives from trade associations that articulated small business owner concerns. Two stakeholders participated in person and six participated via the telephone in the second meeting. Several small businesses participated, along with representatives from Western Oil Marketers Association.

     Chapter 6 NAICS Codes of Impacted Industries: Table 2 lists North American Industry Classification System (NAICS) codes for industries ecology expects to be impacted by the proposed rule amendments. We derived these codes from our data set of currently registered sources.

     The model estimates between three and four jobs permanently lost in the state, over the next twenty years. This result does not account for where fee payments are re-spent by government, as it would on inter-industry transfer payments.

     ¹http://www.governor.wa.gov/news/Executive_Order_10-06.pdf

     ²Please see the Washington state office of financial management's site for more information on the input-output model: http://www.ofm.wa.gov/economy/io/2002/default.asp.

     A copy of the statement may be obtained by contacting Elena Guilfoil, P.O. Box 47600, Olympia, WA 98504-7600, phone(360) 407-6855, fax (360) 407-7534, e-mail elena.guilfoil@ecy.wa.gov.

     A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Elena Guilfoil, P.O. Box 47600, Olympia, WA 98504-7600, phone (360) 407-6855, fax (360) 407-7534, e-mail elena.guilfoil@ecy.wa.gov.

August 21, 2012

Polly Zehm

Deputy Director

OTS-4914.3

[Statutory Authority: RCW 70.94.181, [70.94.]152, [70.94.]331, [70.94.]650, [70.94.]745, [70.94.]892. 07-11-018 (Order 06-14), § 173-455-010, filed 5/3/07, effective 6/3/07.]

     (2) The solid fuel retail sales fee in WAC 173-455-060 and the weather modification fee in WAC 173-455-070 apply statewide. All other provisions of this chapter do not apply in counties regulated by a local air agency.

[Statutory Authority: RCW 70.94.181, [70.94.]152, [70.94.]331, [70.94.]650, [70.94.]745, [70.94.]892. 07-11-018 (Order 06-14), § 173-455-030, filed 5/3/07, effective 6/3/07.]

     (a) Air contaminant source registration fees in WAC 173-455-040;

     (b) Carbon dioxide mitigation program fees in WAC 173-455-050;

     (c) Weather modification fees in WAC 173-455-070;

     (d) Control technology fees in WAC 173-455-100;

     (e) New source review fees in WAC 173-455-120;

     (f) Air pollution standards variance fee in WAC 173-455-130; and

     (g) Nonroad engine permit fee in WAC 173-455-140.

     (2) Ecology may propose fee increases in even-numbered years for each year in the upcoming biennium. A workload analysis must support the fee increase. Prior to making any changes, ecology will post the new fees on the agency web site no later than November 30th of the year preceding the date on which the new fees will take place.

     (3) Ecology may adjust fees by the fiscal growth factor calculated under chapter 43.135 RCW as follows.

	New fee = Existing fee x (1 + FGF)
Where FGF means the annual fiscal growth factor calculated under chapter 43.135 RCW (expressed as a decimal)

[]

     (1) Air operating permit ((program)) - Fees can be found in chapter 173-401 WAC.

     (2) ((Ag)) Agricultural burning - Fees can be found in chapter 173-430 WAC.

     (3) Motor vehicle emission inspection - Fees can be found in chapter 173-422A WAC.

[Statutory Authority: RCW 70.94.181, [70.94.]152, [70.94.]331, [70.94.]650, [70.94.]745, [70.94.]892. 07-11-018 (Order 06-14), § 173-455-038, filed 5/3/07, effective 6/3/07.]

     (b) Sources requiring annual registration and inspections shall pay a registration fee comprised of the following three components:)) Ecology will charge a yearly registration fee to cover the cost of implementing the registration program.

     (2) Ecology will determine fee eligibility based on the most current emissions inventory information available for each source.

     (3) A registration program source that shut down during the previous year and is not operating in the current year is not subject to a fee for the current calendar year.

     (4) Periodic registration program source eligibility and fees are determined as follows:

     (a) A source is a periodic registration program source if all of these statements are true:

     (i) A source is included on the source classification list in WAC 173-400-100(1) or the equipment classification list in WAC 173-400-100(2);

     (ii) The source emits at least one pollutant in Table 173-455-040 (4)(c) within the rates in the table; and

     (iii) The source does not emit any pollutant at a rate higher than those in Table 173-455-040 (4)(c).

     (b) The registration fee category and fee for periodic registration program source are determined as follows:

     (i) Ecology will determine whether the periodic sources is in the small, medium, or large category based on the source's most current emissions inventory information.

     (ii) Ecology will determine whether the source's category based on the emission rate of the air contaminant that falls in the category with the highest fee.

     (c) A periodic registration program source must pay the applicable yearly registration fee on Table 173-455-040 (4)(c).

     (i) The source emits one or more air pollutants in Table 173-455-040 (5)(b) at rates greater than those in the table; or

     (c) Annual registration program sources must pay a yearly registration fee comprised of the following three components:

     (ii) Complexity component. Each source is assigned a complexity rating of 1, 3, or 5 which is based on the estimated amount of time needed by ecology to review and inspect the source. ((This portion of the fee is calculated by dividing forty percent of the budget amount allocated to annually registered sources by the total complexity of sources located in ecology's jurisdiction. The quotient is then multiplied by an individual source's complexity rating to determine that source's complexity portion of the fee.)) The source's complexity rating is multiplied by the complexity fee rate to determine the complexity portion of the yearly registration fee.

     (iii) Emissions component. ((This portion of a source's fee is calculated by dividing twenty-five percent of the budget amount allocated to annually registered sources by the total billable emissions from those sources. The quotient is then multiplied by an individual source's billable emissions to determine that source's emissions portion of the fee.)) Billable emissions ((include all air pollutants except carbon monoxide and total suspended particulate.

     (4) Regulatory orders. Owners or operators registering a source as a synthetic minor must obtain a regulatory order which limits the source's emissions. The owner will be required to pay a fee based on the amount of time required to research and write the order multiplied by an hourly rate of sixty dollars.

     (5) Fee reductions for pollution prevention initiatives. Ecology may reduce registration fees for an individual source if that source demonstrates the use of approved pollution prevention measures or best management practices beyond those required of the source.

     (6))) (in tons per year) include nitrogen oxides, sulfur dioxide, particulate matter (except total suspended particulate), and volatile organic compounds.

     The source's billable emissions are multiplied by the emissions fee rate to determine the emissions portion of the yearly registration fee.

     (6) Registration fees for gasoline dispensing facilities. Gasoline dispensing facilities must pay a yearly registration fee of one hundred thirty dollars for each storage tank dispensing gasoline.

     (7) Fee reductions for economic hardships. If a small business owner subject to a periodic registration program fee under subsection (4) of this section believes the registration fee results in an extreme economic hardship, the small business owner may request an extreme hardship fee reduction. The owner or operator must provide sufficient evidence to support a claim of an extreme hardship. ((The factors which ecology may consider in determining whether an owner or operator has special economic circumstances and in setting the extreme hardship fee include: Annual sales; labor force size; market conditions which affect the owner's or operator's ability to pass the cost of the registration fee through to customers; average annual profits; and cumulative effects of multiple site ownership. In no case will a registration fee be reduced below two hundred dollars.

     (7))) The registration fee may be reduced by no more than fifty percent.

     (8) Fee payments.

     (a) A source subject to fees ((specified)) in this section ((shall be paid)) must pay those fees within thirty days of receipt of ecology's billing statement.

     (b) All fees collected under this regulation ((shall)) must be made payable to the Washington department of ecology.

     (c) A late fee ((surcharge)) of ((fifty)) sixty-eight dollars or ten percent of the fee, whichever is more, may be assessed for any fee not received ((after)) within the thirty-day period.

     (((8) Dedicated account. All registration fees collected by ecology shall be deposited in the air pollution control account.

     (9) Tracking revenues, time, and expenditures. Ecology shall track revenues collected under this subsection on a source-specific basis. Ecology shall track time and expenditures on the basis of ecology budget functions.

     (10))) (d) A source may request to pay an ecology fee on a payment plan. A payment plan does not apply to fees collected by the department of revenue. A late fee will not apply for fees paid by a payment plan as long as the following two conditions are met:

     (i) The source requests a payment plan within thirty days of the receipt of ecology's billing statement.

     (ii) The source pays the fee on time as outlined in the payment plan.

     (9) Additional registration fee for fossil-fueled electric generating facilities. ((A)) Fossil-fueled electric generating ((facility subject to the provisions of chapter 80.70 RCW and RCW 70.94.892, is subject to additional fees pursuant to that chapter)) facilities must pay registration fees required in this section in addition to carbon dioxide mitigation program fees required in WAC 173-455-050.

[Statutory Authority: RCW 70.94.181, [70.94.]152, [70.94.]331, [70.94.]650, [70.94.]745, [70.94.]892. 07-11-018 (Order 06-14), § 173-455-040, filed 5/3/07, effective 6/3/07.]

     (2) Fee schedule for source-specific determinations where RACT analysis and determination are performed by ecology.

     (a) Basic RACT analysis and determination fee:

     (i) Low complexity (the analysis addresses one type of emission unit) - One thousand five hundred dollars;

     (ii) Moderate complexity (the analysis addresses two to five types of emissions units) - Seven thousand five hundred dollars;

     (iii) High complexity (the analysis addresses more than five types of emission units) - Fifteen thousand dollars.

     (b) Additional charges based on criteria pollutant emissions: In addition to those fees required under (a) of this subsection, a fee will be required for a RACT analysis and determination for an emission unit or multiple emission units of uniform design that, individually or in the aggregate, emit one hundred tons per year or more of any criteria pollutant - Two thousand dollars.

     (c) Additional charges based on toxic air pollutant emissions: In addition to those fees required under (a) and (b) of this subsection, the following fees will be required as applicable:

     (i) RACT analysis and determination for an emissions unit or multiple emissions units of uniform design that, individually or in the aggregate, emit more than two tons per year but not more than ten tons per year of any toxic air pollutant - One thousand dollars; or

     (ii) RACT analysis and determination for an emissions unit or multiple emissions units of uniform design that, individually or in the aggregate, emit more than ten tons per year of any toxic air pollutant - Two thousand dollars.

     (3) Fee schedule for source-specific determinations where RACT analysis is performed by the source and review and determination conducted by ecology.

     (a) Basic RACT review and determination fees:

     (i) Low complexity (the analysis addresses one type of emission unit) - One thousand dollars;

     (ii) Moderate complexity (the analysis addresses two to five types of emissions units) - Five thousand dollars;

     (iii) High complexity (the analysis addresses more than five types of emission units) - Ten thousand dollars.

     (b) Additional charges based on criteria pollutant emissions: In addition to those fees required under (a) of this subsection, a fee will be required for a RACT analysis and determination for an emission unit or multiple emissions units of uniform design that, individually or in the aggregate, emit one hundred tons per year or more of any criteria pollutant - One thousand dollars.

     (c) Additional charges based on toxic air pollutant emissions: In addition to those fees required under (a) and (b) of this subsection, the following fees will be required as applicable:

     (i) RACT analysis and determination for an emissions unit or multiple emissions units of uniform design that, individually or in the aggregate, emit more than two tons per year but not more than ten tons per year of any toxic air pollutant - Five hundred dollars; or

     (ii) RACT analysis and determination for an emissions unit or multiple emissions units of uniform design that, individually or in the aggregate, emit more than ten tons per year of any toxic air pollutant - One thousand dollars.

     (4) Fee schedule for reviews authorized under RCW 70.94.153 for the replacement or substantial alteration of control technology.

     (a) Notice of construction application. Review and approval of notice of construction application (NOCA) for replacement or substantial alteration of control technology - Three hundred fifty dollars.

     (b) RACT analysis and determination. Review and approval of a RACT analysis and determination for affected emission unit - Five hundred dollars.

     (5) Fee schedule for categorical RACT determinations. Fees for categorical RACT determinations (for categories with more than three sources) shall be assessed as shown below. The fees described in (a) of this subsection shall be based on the most complex source within a category. Except as provided in (b) and (d) of this subsection, fees for individual sources in the category will be determined by dividing the total source category fee by the number of sources within the category.

     (a) RACT analysis and determination (RACT analysis performed by ecology with assistance from sources):

     (i) Low complexity source category (average source emissions of individual criteria pollutants are all less than twenty tons per year, average source emissions of individual toxic air pollutants are all less than two tons per year, or the analysis addresses one type of emission unit) - Twenty-five thousand dollars;

     (ii) Moderate complexity source category (average source emissions of one or more individual criteria pollutants are greater than twenty tons per year and less than one hundred tons per year, average source emissions of one or more individual toxic air pollutants are greater than two tons per year and less than ten tons per year, or the analysis addresses two to five types of emissions units) - Fifty thousand dollars; or

     (iii) High complexity source category (average source emissions of one or more individual criteria pollutants exceed one hundred tons per year, average source emissions of one or more individual toxic air pollutants exceed ten tons per year, or the analysis addresses more than five types of emission units) - One hundred thousand dollars.

     (b) If an emission unit is being evaluated for more than one categorical RACT determination within a five-year period, ecology will charge the owner or operator of that emission unit one fee and the fee will reflect the higher complexity categorical RACT determination.

     (c) Ecology may adjust the fee to reflect workload savings from source involvement in source category RACT determination.

     (d) Ecology may approve alternate methods for allocating the fee among sources within the source category.

     (6) Small business fee reduction. The RACT analysis and determination fee identified in subsections (2) through (5) of this section may be reduced for a small business.

     (a) To qualify for the small business RACT fee reduction, a business must meet the requirements of "small business" as defined in RCW 43.31.025.

     (b) To receive a fee reduction, the owner or operator of a small business must include information in an application demonstrating that the conditions of (a) of this subsection have been met. The application must be signed:

     (i) By an authorized corporate officer in the case of a corporation;

     (ii) By an authorized partner in the case of a limited or general partnership; or

     (iii) By the proprietor in the case of a sole proprietorship.

     (c) Ecology may verify the application information and if the owner or operator has made false statements, deny the fee reduction request and revoke previously granted fee reductions.

     (d) For small businesses determined to be eligible under (a) of this subsection, the RACT analysis and determination fee shall be reduced to the greater of:

     (i) Fifty percent of the RACT analysis and determination fee; or

     (ii) Two hundred fifty dollars.

     (e) If due to special economic circumstances, the fee reduction determined under (d) of this subsection imposes an extreme hardship on a small business, the small business may request an extreme hardship fee reduction. The owner or operator must provide sufficient evidence to support a claim of an extreme hardship. The factors which ecology may consider in determining whether an owner or operator has special economic circumstances and in setting the extreme hardship fee include: Annual sales; labor force size; market conditions which affect the owner's or operator's ability to pass the cost of the RACT analysis and determination fees through to customers; and average annual profits. In no case will a RACT analysis and determination fee be reduced below one hundred dollars.

     (7) Fee reductions for pollution prevention initiatives. Ecology may reduce RACT analysis and determination fees for an individual source if that source is using approved pollution prevention measures.

     (8) Fee payments. Fees specified in subsection (4)(a) of this section shall be paid at the time a notice of construction applications is submitted to the department. Other fees specified in subsections (2) through (7) of this section shall be paid no later than thirty days after receipt of an ecology billing statement. For fees specified in subsection (5) of this section, a billing for one-half of the payment from each source will be mailed when the source category rule-making effort is commenced as noted by publication of the CR-101 form in the Washington State Register. A billing for the second half of the payment will be mailed when the proposed rule is published in the Washington State Register. No order of approval or other action approving or identifying a source to be at RACT will be issued by the department until all fees have been paid by the source. All fees collected under this regulation shall be made payable to the Washington department of ecology.

     (9) Dedicated account. All control technology fees collected by the department from permit program sources shall be deposited in the air operating permit account created under RCW 70.94.015. All control technology fees collected by the department from nonpermit program sources shall be deposited in the air pollution control account.

     (10) Tracking revenues, time, and expenditures. Ecology shall track revenues on a source-specific basis. For purposes of source-specific determinations under subsections (2) through (4) of this section, ecology shall track time and expenditures on the basis of source complexity categories. For purposes of categorical determinations under subsection (5) of this section, ecology shall track time and expenditures on a source-category basis.

     (11) Periodic review. Ecology shall review and, as appropriate, update this section at least once every two years.

[Statutory Authority: RCW 70.94.181, [70.94.]152, [70.94.]331, [70.94.]650, [70.94.]745, [70.94.]892. 07-11-018 (Order 06-14), § 173-455-100, filed 5/3/07, effective 6/3/07.]

     (a) The fees in this section apply to:

     (i) Permit applications received on or after July 1, 2011.

     (ii) Requests for ecology review of other actions covered by this section received by ecology on or after July 1, 2011.

     (b) Components of permitting fees. Permit fees include initial fees and may include an hourly fee. The initial fee covers up to the number of review hours specified in each fee in this section.

     (c) A project may be subject to multiple fees. For example, a project may be subject to both minor and major new source review permit fees and second or third tier review.

     (d) An applicant must submit initial fees with an application, notice, or request. An application, notice or request is incomplete until initial fees have been paid.

     (i) For purposes of WAC 173-400-111(1), initial fees are considered application fees.

     (ii) If ecology determines a project is complex after an applicant submitted the basic project initial fee, then the application is incomplete until the applicant pays the initial complex project fee.

     (iii) If ecology determines that a higher initial fee is due after an applicant submitted an application or request, the application or request is considered incomplete until the applicant pays the new initial fee.

     (e) If the initial fee paid by an applicant does not cover the cost of processing the application, notice or request, then ecology shall assess a fee based on the actual costs for review in excess of the hours specified in each fee. The assessed fee must be a rate of ninety-five dollars per hour of ecology staff time expended.

     (f) Ecology cannot finalize an action covered under this section until all fees are paid. (WAC 173-400-111(3).)

     (g) An applicant must pay fees that are due by invoice from ecology within thirty days from the date of the invoice. Ecology will cease processing all applications for which the required fees have not been received within thirty days of an invoice.

     (h) At the time of filing, an applicant must pay all delinquent air quality fees associated with the facility. This is in addition to the fees required by this section. Delinquent fees may include, but are not limited to, registration fees, civil penalties awarded to ecology, or other outstanding fees due under this section.

     (i) All fees collected under this rule must be made payable to the department of ecology.

     (j) Fees assessed under this section apply without regard to whether ecology approves or denies a request.

     Permit fees.

     Minor new source review.

     (2) Review of new source or modification of an existing source with an emissions increase. (WAC 173-400-110 and 173-400-110(3).)

     (a) Basic project: One thousand five hundred dollars plus an hourly rate of ninety-five dollars after sixteen hours.

     This fee covers up to sixteen hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above sixteen hours.

     (b) Complex project: Ten thousand dollars plus an hourly rate of ninety-five dollars after one hundred six hours.

     (i) This fee covers up to one hundred six hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above one hundred six hours.

     (ii) An application is considered complex if the emissions associated with the application include at least one pollutant for which emissions increases are greater than the levels in the following table:

     (A) Number and complexity of emission units;

     (B) Volume of emissions, including toxicity of emissions;

     (C) Amount and complexity of modeling; or

     (D) Number and kind of applicable state and federal requirements.

     (3) Change to an existing order of approval. (WAC 173-400-111(8).)

     (a) Ecology will not charge a fee for correcting a mistake by ecology in a permit.

     (b) Administrative or simple change: Two hundred dollars plus an hourly rate of ninety-five dollars after three hours.

     (i) This fee covers up to three hours of staff time to review the request and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the request above three hours.

     (ii) An administrative or simple change means:

     (A) An action not subject to a mandatory public comment period in WAC 173-400-171; and

     (B) The reissued approval order requires one hour or less of engineering evaluation and no physical modification of equipment; and

     (C) Changes in permit conditions are based on actual operating conditions and the operating conditions require one hour or less of engineering evaluation and the change does not cause a change in allowable emissions.

     (c) Complex changes: Eight hundred seventy-five dollars plus an hourly rate of ninety-five dollars after ten hours.

     (i) This fee covers up to ten hours of staff time to review the request and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the request above ten hours.

     (ii) This fee excludes an administrative or simple change and changes to an existing permit that result in an emissions increase.

     (iii) Examples of complex changes include, but are not limited to:

     (A) Changes requiring more than one hour of engineering review;

     (B) Consolidation of permits not allowed under simple change;

     (C) Request for review of a permit action that is exempt under WAC 173-400-110(5) (Table 110(5) emission-based exemption levels); or

     (D) Changes requiring mandatory public comment under WAC 173-400-171.

     (d) The fee for a permit modification (as defined in WAC 173-400-030) is located in subsection (2)(a) or (b) of this section.

     (4) Request to extend approval to construct or modify a stationary source issued under minor new source review that is set to expire (WAC 173-400-111(7)): One hundred dollars.

     An applicant may request an eighteen-month extension of an approval to construct.

     (5) Review of general order of approval (WAC 173-400-560).

     (a) Category A general order.

     (i) SEPA review complete: Five hundred dollars.

     (ii) SEPA review required: Seven hundred eighty-five dollars.

     (iii) Category A consists of the following general order of approval, including any subsequent updating or replacement:

     (A) Concrete batch plants (No. 08-AQG-002);

     (B) ((Diesel-powered emergency electrical generators (No. 06-AQG-006);

     (C))) Rich burn, spark ignition, gaseous fossil fuel-powered emergency electrical generators (No. 06-AQG-005);

     (((D))) (C) Perchloroethylene dry cleaners using less than 2100 gallons per year (No. 06-AQG-003);

     (((E))) (D) Stationary and portable rock crushers((, stationary (06-AQG-004))) (No. 11AQ-GO-001);

     (((F) Rock crusher, portable (07-AQG-001);

     (G))) (E) Small water heaters and steam generating boilers (No. ((08-AQG-003)) 08-AQ-G003); and

     (((H))) (F) Automobile body repair and refinishing shops (No. 08-AQG-001).

     (b) Category B general order.

     (i) SEPA review complete: Eight hundred seventy-five dollars.

     (ii) SEPA review required: One thousand one hundred sixty dollars.

     (iii) Category B includes a general order of approval developed on or after January 1, 2011. ((This)) Category B covers, but is not limited to, the following general order of approval, including any subsequent updating or replacement:

     (A) Portable and stationary asphalt plants (No. 10AQ-G0-01); and

     (B) Dairy manure anaerobic digesters (No. 12AQ-GO-01).

     (6) Review of relocation of portable source under WAC 173-400-036, 173-400-110 or 173-400-560.

     (a) This fee applies to a portable source who intends to relocate in ecology's jurisdiction with an approval order from another permitting authority.

     (i) SEPA review complete: One hundred fifty dollars.

     (ii) SEPA review required: Four hundred thirty-five dollars.

     (b) This fee applies to a portable source who intends to relocate in ecology's jurisdiction and has operated under an ecology issued approval order or is approved for coverage under an ecology issued general order of approval.

     (i) SEPA review complete: No fee.

     (ii) SEPA review required: Two hundred eighty-five dollars.

     (7) Request to establish a voluntary emission limit (WAC 173-400-091): Five hundred dollars plus an hourly rate of ninety-five dollars after six hours.

     (a) This fee covers up to six hours of staff time to review the request and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the request above six hours.

     (b) This fee applies to a regulatory order issued under WAC 173-400-091 that places a limit on emissions.

     (i) This fee applies to a request to establish the emission limit in a stand-alone regulatory order.

     (ii) This fee does not apply when an emission limit is included as a condition in an approval order for a notice of construction application.

     (8) Request to replace or substantially alter control technology: Refer to WAC 173-455-100(4) for fee schedule.

     Major new source review preapplication and permit fees.

     (9) Request for a written prevention of significant deterioration applicability determination (WAC 173-400-720) or preapplication assistance: Five hundred dollars plus an hourly rate of ninety-five dollars after six hours.

     This fee covers up to six hours of staff time to review the request and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the request above six hours.

     (10) Prevention of significant deterioration (PSD) (WAC 173-400-720 and 173-400-730).

     (a) PSD permit application: Fifteen thousand dollars plus an hourly rate of ninety-five dollars after one hundred fifty-eight hours.

     This fee covers one hundred fifty-eight hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above one hundred fifty-eight hours.

     (b) PSD permit application where greenhouse gases are the sole PSD pollutant being reviewed: Seven thousand five hundred dollars plus an hourly rate of ninety-five dollars after seventy-nine hours.

     This fee covers seventy-nine hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above seventy-nine hours.

     (11) Revision to a prevention of significant deterioration permit (WAC 173-400-750).

     (a) Administrative revision as defined in WAC 173-400-750(3): One thousand nine hundred dollars plus an hourly rate of ninety-five dollars after twenty hours.

     This fee covers twenty hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above twenty hours.

     (b) All other revisions (except major modification): Seven thousand five hundred dollars plus an hourly rate of ninety-five dollars after seventy-nine hours.

     This fee covers seventy-nine hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above seventy-nine hours.

     (c) The fee for a major modification of a PSD permit (as defined in WAC 173-400-720) is located in subsection (10)(a) of this section.

     (12) Request to extend the following major source approvals that are set to expire: Five hundred dollars. This provision applies to each of the following:

     (a) PSD permit, including a major modification;

     (b) PSD permit revision;

     (c) Approval order for major source nonattainment area permitting; and

     (d) A change to an approval order for major source nonattainment area permitting.

     (13) Nonattainment area major new source review.

     (a) A notice of construction application subject to WAC 173-400-830: Fifteen thousand dollars plus an hourly rate of ninety-five dollars after one hundred fifty-eight hours.

     This fee covers one hundred fifty-eight hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above one hundred fifty-eight hours.

     (b) Change to an approval order issued under WAC 173-400-830:

     (i) Request to change permit conditions under WAC 173-400-111(8) that is not subject to mandatory public comment in WAC 173-400-171: One thousand nine hundred dollars plus an hourly rate of ninety-five dollars after twenty hours.

     This fee covers twenty hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above twenty hours.

     (ii) All other permit changes (except major modification): Seven thousand five hundred dollars plus an hourly rate of ninety-five dollars after seventy-nine hours.

     This fee covers seventy-nine hours of staff time to review the application and issue a final decision. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the application above seventy-nine hours.

     (iii) The fee for a major modification (as defined in WAC 173-400-810) of an approval order is located in subsection (13)(a) of this section.

     (14) Plant-wide applicability limits (WAC 173-400-720).

     (a) Request to establish new plant-wide applicability limits: Fifteen thousand dollars plus an hourly rate of ninety-five dollars after one hundred fifty-eight hours.

     This fee covers up to one hundred fifty-eight hours of staff time to review the request and establish a plant-wide applicability limit. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the request above one hundred fifty-eight hours.

     (b) All other requests, such as increase or renew plant-wide applicability limits; or process an expired plant-wide applicability limit: Seven thousand five hundred dollars plus an hourly rate of ninety-five dollars after seventy-nine hours.

     This fee covers up to seventy-nine hours of staff time to increase, renew or process a retired plant-wide applicability limit. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the request above seventy-nine hours.

     Other fees.

     (15) Second tier review (WAC 173-460-090): Ten thousand dollars plus an hourly rate of ninety-five dollars after one hundred six hours.

     (a) This fee covers up to one hundred six hours of staff time to evaluate the health impact assessment protocol and second tier petition, and make a recommendation. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the second tier petition above one hundred six hours.

     (b) A second tier petition that becomes subject to third tier review during the course of evaluation continues as a second tier petition for billing purposes. Staff must sum the time spent on this petition and bill the applicant if the total hours exceed one hundred six hours.

     (16) Third tier review (WAC 173-460-100): Ten thousand dollars plus an hourly rate of ninety-five dollars after one hundred six hours.

     (a) This fee covers up to one hundred six hours of staff time to evaluate the health impact assessment protocol and third tier petition, and make a recommendation. Ecology will bill the applicant ninety-five dollars per hour for each additional hour spent on the second tier petition above one hundred six hours.

     (b) This fee does not apply to a second tier petition that becomes a third tier petition.

     (17) Ecology may enter into a written cost-reimbursement agreement with an applicant as provided in RCW 70.94.085. Ecology will be reimbursed at a rate of ninety-five dollars per hour.

     (18) Small business fee reduction. The new source review fee identified in subsections (2) through (7) of this section may be reduced for a small business.

     (a) To qualify for the small business new source review fee reduction, a business must meet the requirements of "small business" as defined in RCW 19.85.020. In RCW 19.85.020, "small business" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, that has the purpose of making a profit, and that has fifty or fewer employees.

     (b) To receive a fee reduction, the owner or operator of a small business must include information in the application demonstrating that the conditions of (a) of this subsection have been met. The application must be signed:

     (i) By an authorized corporate officer in the case of a corporation;

     (ii) By an authorized partner in the case of a limited or general partnership; or

     (iii) By the proprietor in the case of a sole proprietorship.

     (c) Ecology may verify the application information and, if the owner or operator has made false statements, deny the fee reduction request and revoke previously granted fee reductions.

     (d) For small businesses determined to be eligible under (a) of this subsection, the new source review fee shall be reduced to the greater of:

     (i) Fifty percent of the new source review fee; or

     (ii) Two hundred fifty dollars.

     (e) If, due to special economic circumstances, the fee reduction determined under (d) of this subsection imposes an extreme hardship on a small business, the small business may request an extreme hardship fee reduction. The owner or operator must provide sufficient evidence to support a claim of an extreme hardship. The factors which ecology may consider in determining whether an owner or operator has special economic circumstances and in setting the extreme hardship fee include: Annual sales; labor force size; market conditions which affect the owner's or operator's ability to pass the cost of the new source review fees through to customers; and average annual profits. In no case will a new source review fee be reduced below one hundred dollars.

     (19) Fee reductions for pollution prevention initiatives. Ecology may reduce the fees defined in subsections (2) through (7) of this section where the owner or operator of the proposed source demonstrates that approved pollution prevention measures will be used.

     (20) Tracking revenues, time, and expenditures. Ecology must track revenues collected under this subsection on a source-specific basis.

     (21) Periodic review. To ensure that fees cover the cost of processing the actions in this section, ecology shall review and update this section as necessary.

[Statutory Authority: RCW 70.94.152 and 2011 c 5 § 301(28). 11-12-077 (Order 10-04), § 173-455-120, filed 5/31/11, effective 7/1/11. Statutory Authority: RCW 70.94.181, [70.94.]152, [70.94.]331, [70.94.]650, [70.94.]745, [70.94.]892. 07-11-018 (Order 06-14), § 173-455-120, filed 5/3/07, effective 6/3/07.]

     The following section of the Washington Administrative Code is repealed:

WAC 173-455-110

Registration fees for sources emitting gas vapors.