WSR 13-17-086
PROPOSED RULES
SPOKANE REGIONAL
CLEAN AIR AGENCY
[Filed August 19, 2013, 1:38 p.m.]
Original Notice.
Proposal is exempt 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.
Hearing Location(s): Spokane Regional Clean Air Agency (SRCAA), 3104 East Augusta, Spokane, WA 99207, on October 3, 2013, at 9:30 a.m.
Date of Intended Adoption: October 3, 2013.
Submit Written Comments to: Joe Southwell, 3104 East Augusta, Spokane, WA 99207, e-mail jsouthwell@spokanecleanair.org, fax (509) 477-6828, by October 2, 2013.
Assistance for Persons with Disabilities: Contact Barbara Nelson by October 2, 2013, (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, Section 10.06 to move SRCAA's air operating permit (AOP) fee into SRCAA's consolidated fee schedule program, and raise the emission fee component of the AOP fee from $31.11/ton to $58/ton. Additionally, remove references to Washington emission data system fees in Section 10.06.B, as these fees are no longer assessed.
Anticipated Effects: The proposed regulation fee changes will allow SRCAA to address and/or reconcile any required AOP fee changes on an annual basis, pending public notice and comment, and with board approval. As AOP program fees must be not exceed program costs, the effect of raising the emission fee component will be to reduce the amount of time fee component of SRCAA's AOP fee.
Changes to Existing Rules:
1. Replace the specific AOP fee component costs and determination formulas, given in SRCAA Regulation I, Section 10.06 C. with reference to SRCAA's consolidated fee schedule, and placing the AOP fee component costs and determination formulas in SRCAA's consolidated fee schedule.
2. Remove references to WEDS fees in Section 10.06.B.
Reasons Supporting Proposal: The intent of the proposal is to give a greater weighting of emissions in determining annual AOP fees.
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. The AOP program is mandated to be at full cost recovery. The proposed changes in the AOP regulation will not change the total amount of fees assessed, but rather will revised [revise] how individual source AOP fees will be determined, with a greater weighting on emissions from the individual source (i.e., increase in $/ton emission fee), and corresponding decrease in the weighting of agency time spent on the individual source (i.e., decrease in the time fee component of the fee).
Name of Proponent: SRCAA, governmental.
Name of Agency Personnel Responsible for Drafting: Joe Southwell, 3104 East Augusta, Spokane, WA 99207, (509) 477-4727; Implementation: April Westby, 3104 East Augusta, Spokane, WA 99207, (509) 477-4727; and Enforcement: Barbara Nelson, 3104 East Augusta, Spokane, WA 99207, (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.
August 19, 2013
Joe R. Southwell
Environmental Engineer
 
AMENDATORY SECTION
REGULATION I, ARTICLE X, SECTION 10.06
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 FeeA
Per the Fee Schedule
Per Source
 
Emissions FeeB
Per the Fee Schedule
Per Ton
 
Emission Point FeeC
Per the Fee Schedule
Per Stack/Point
 
Synthetic Minor FeeD
Per the Fee Schedule
Per Source
 
((WEDS FeeE
Per the Fee Schedule
Per Hour))
A
Each source is subject to the fee listed in the fee schedule.
B
The additional fee applies to each ton (rounded to the nearest one-tenth of a ton) of each criteria pollutant, volatile organic compound (VOC), and non-VOC toxic air pollutant emitted.
C
The additional fee applies to each stack and other emission points, including sources of fugitive emissions (e.g., fugitive dust emissions from crushing operations; storage piles; mixing and clean-up associated with surface coating). For gasoline stations, each gasoline tank vent is an emission point.
D
The additional fee applies to each Synthetic Minor.
((E
The additional fee applies to each source required by theAgency 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 in the fee schedule.))
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 may 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, the annual fee shall be determined by adding all of the applicable fees described below
a. Annual base fee per the Fee Schedule.
b. Emission fee per the Fee Schedule.
c. SRCAA time fee, as determined per the Fee Schedule.
d. AOP Program Cost Correction, as determined per the Fee Schedule.
e. A share of the assessment by Ecology pursuant to RCW 70.94.162(3), as determined per the Fee Schedule.
((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,
TFI is the SRCAA time fee for AOP source, I;
HI 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. AOP Program Cost Correction, as determined by the following formula:
PCCI = AOP Program Cumulative Deficit or Surplus x FI
FT
Where,
PCCI is the AOP Program Cost Correction assessed to each AOP source, I;
AOP Program Cumulative Deficit or Surplus is the cumulative financial deficit or surplus for SRCAA's AOP program at the end of the most recent SRCAA fiscal year;
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.
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. 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. of this Regulation.
3. For affected units under Section 404 (Acid Deposition Standards) of the Federal Clean Air Act (42 USC 7401 et seq):
a. For time expended in carrying out the fee eligible activities specified in RCW 70.94, an hourly fee will be assessed pursuant to the fee schedule; 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.))
3. For affected units under Section 404 (Acid Deposition Standards) of the Federal Clean Air Act (42 USC 7401 et seq), the air operating permit fee shall be determined by adding all of the applicable fees described below:
:a. For time expended in carrying out the fee eligible activities specified in RCW 70.94, an hourly fee will be assessed pursuant to the fee schedule; and
b. A share of the assessment by Ecology pursuant to RCW 70.94.162(3), as determined per the Fee Schedule.
((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 error in the above material occurred in the copy filed by the Spokane Regional Clean Air Authority and appears in the Register pursuant to the requirements of RCW 34.08.040.