Original Notice.

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

     Title of Rule and Other Identifying Information: Amend Regulation II, Sections 2.01 (Definitions) and 2.06 (Bulk Gasoline Plants).

     Hearing Location(s): Puget Sound Clean Air Agency, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, on December 20, 2012, at 8:45 a.m.

     Date of Intended Adoption: December 20, 2012.

     Submit Written Comments to: Rob Switalski, Puget Sound Clean Air Agency, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, e-mail robs@pscleanair.org, fax (206) 343-7522, by December 19, 2012.

     Assistance for Persons with Disabilities: Contact agency receptionist, (206) 689-4010, by December 13, 2012, 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 is proposing a regulation revision to eliminate the potential conflict between an EPA regulatory requirement and the practical technical feasibility of actually complying with that requirement.

     The proposal would amend Sections 2.01 and 2.06 of Regulation II to establish an enforceable limitation on the daily gasoline throughput of bulk gasoline plants in order to clarify that the agency will regulate these facilities as bulk gasoline plants and not as gasoline loading terminals.

     Reasons Supporting Proposal: The benefits are that the six bulk gasoline plants in the agency's jurisdiction can follow the requirements for bulk gasoline plants under the Gasoline Distribution Generally Available Control Technology (GACT) standard as we believe the EPA intended.

     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: Gerry Pade, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, (206) 689-4065; Implementation and Enforcement: Laurie Halvorson, 1904 3rd Avenue, Suite 105, Seattle, WA 98101, (206) 689-4030.

     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, and the agency is not a school district.

     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.

November 7, 2012

Craig Kenworthy

Executive Director

REGULATION II, SECTION 2.01 DEFINITIONS

     When used in this Article:

     (a) GASOLINE means any petroleum distillate or petroleum distillate/alcohol blend with a Reid vapor pressure of 4 pounds per square inch (27.6 kPa) or greater, which is used as a fuel for motor vehicles, marine vessels, or aircraft.

     (b) GASOLINE STATION means any site that dispenses gasoline from stationary storage tanks into fuel tanks of motor vehicles, marine vessels, or aircraft.

     (c) PETROLEUM REFINERY means a facility engaged in producing gasoline, aromatics, kerosene, distillate fuel oils, residual fuel oils, lubricants, asphalt, or other products by distilling crude oils or redistilling, cracking, extracting, or reforming unfinished petroleum derivatives. Not included are facilities re-refining used motor oils or waste chemicals, processing finished petroleum products, separating blended products, or air blowing asphalt.

     (d) SUBMERGED FILL LINE means any discharge pipe or nozzle that meets either of the following conditions:

     (1) Where the tank is filled from the top, the end of the discharge pipe or nozzle must be totally submerged when the liquid level is 6 inches (15 cm) from the bottom of the tank; or

     (2) Where the tank is filled from the side, the discharge pipe or nozzle must be totally submerged when the liquid level is 18 inches (46 cm) from the bottom of the tank.

     (e) TRANSPORT TANK means a container with a capacity greater than 264 gallons (1000 liters) used for shipping gasoline over roadways.

     (f) VAPOR RECOVERY SYSTEM means a process that prevents the emission to the atmosphere of volatile organic compounds released by the operation of any transfer, storage, or process equipment.

     (g) BULK GASOLINE PLANT means a gasoline storage and transfer facility that receives more than 90% of its annual gasoline throughput by transport tank, and reloads gasoline into transport tanks.

AMENDATORY SECTION

REGULATION II, SECTION 2.06 BULK GASOLINE PLANTS

     (a) ((Section 2.06)) It shall be unlawful for any person to cause or allow the transfer of 20,000 gallons or more of gasoline at a gasoline bulk plant on any day.

     (b) The following provisions in Sections 2.06(c) and 2.06(d) of this regulation shall apply to all bulk gasoline plants with an annual average daily gasoline throughput greater than 15,140 liters (4,000 gallons).

     (((b))) (c) It shall be unlawful for any person to cause or allow the transfer of gasoline from any transport tank into any stationary storage tank with a capacity greater than 3,785 liters (1,000 gallons) unless the following conditions are met:

     (1) Such stationary storage tank is equipped with a permanent submerged fill pipe and "CARB-certified" vapor recovery system; and

     (2) Such transport tank is equipped to balance vapors and is maintained in a leak-tight condition in accordance with Section 2.08 of Regulation II; and

     (3) All vapor return lines are connected between the transport tank and the stationary storage tank, and the vapor recovery system is operating.

     (((c))) (d) It shall be unlawful for any person to cause or allow transfer of gasoline between a stationary storage tank and a transport tank except under the following conditions:

     (1) All transport tanks shall be bottom loaded;

     (2) The loading of all transport tanks, shall be performed such that 90% by volume of the gasoline vapors displaced during filling are prevented from being released into the ambient air;

     (3) Such transport tanks shall be equipped to balance vapors; and

     (4) All vapor return lines are connected between the transport tank and the stationary storage tank, and the vapor recovery system is operating.