Effective Date of Rule: Thirty-one days after filing.

     Purpose: Items 1-2: Amend permitting regulations to exempt coffee roasters with less than or equal to ten pound maximum batch capacity from permitting requirements.

     Item 3: Amend annual registration fees to achieve full program cost recovery.

     Citation of Existing Rules Affected by this Order: Amending 1-2: SCAPCA Regulation I, Article IV, Section 4.02 and Article V, Section 5.02; 3: SCAPCA Regulation I, Article X, Section 10.06.

     Statutory Authority for Adoption: 1-2: RCW 70.94.380(2), 1-3: RCW 70.94.141(1).

     Other Authority: 1-3: RCW 70.94.151 (1) and (2).

      Adopted under notice filed as WSR 06-20-111 on October 4, 2006.

     A final cost-benefit analysis is available by contacting Matt Holmquist, 1101 West College, Suite 403, Spokane, WA 99201, phone (509) 477-4727, fax (509) 477-6828, e-mail mgholmquist@scapca.org.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 3, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: December 7, 2006.

Matt Holmquist

Compliance Administrator

REGULATION I, ARTICLE V, SECTION 5.02

ARTICLE V

SECTION 5.02 NOTICE OF CONSTRUCTION (NOC) - WHEN REQUIRED

     A. A Notice of Construction application must be filed by the owner or operator and an order of approval issued by the permitting agency prior to the establishment of any new source or source categories. For purposes of this section "establishment" shall mean to "begin actual construction", as that term is defined in Article I, Section 1.04, and "new source" shall include any modification to an existing stationary source or source category, as defined in Article I, Section 1.04. Stationary sources or source categories subject to this Section include, but are not limited to, the following:

     1. Stationary sources or source categories listed in Exhibit "R" of Article IV of this Regulation, except for those that are below emission thresholds listed therein or are exempted as provided in Section 5.02.P of this Regulation; or

     2. Any modification to an existing stationary source or source category which results in an increase in actual emissions, except for stationary sources or source categories with actual emission increases below emission thresholds listed in Exhibit "R" of Article IV of this Regulation; or

     3. Regardless of any other subsection of this section, a notice of construction application must be filed and an order of approval issued by the Authority prior to establishment of any of the stationary sources listed in Items 7 and 8 of Article IV, Exhibit "R"; or

     4. a. Establishment of a new major stationary source or source category;

     b. Major modifications to an existing stationary source or source category;

     c. Establishment of a new major temporary stationary source or source category;

     d. Major modification of a temporary stationary source or source category that is located at an existing stationary source or source category; or

     5. Any modifications that require an increase either in a facility-wide emission limitation or a unit specific emission limit; or

     6. Replacement of existing emissions unit(s) with new or used emissions unit(s); or

     7. Restart of a stationary source or source category after "closure or shutdown", as defined in Article I, Section 1.04;

     8. Relocation of an existing stationary source or source category, except as provided for in Section 5.02.H and as specified in Section 5.02.I; or

     9. Location for the first time of a portable, (or temporary, if applicable) stationary source or source category operates in Spokane County.

     10. Determination by the Authority that a Notice of Construction application is necessary in order to reduce the potential impact from any stationary source or source category's air emissions on: the health, safety, and/or welfare of the public, or unreasonable interference with any other property owner's use and enjoyment of his property, or damage to other property owner's property or business.

     B. Stationary sources or source categories not subject to Section 5.02.A include those stationary sources or source categories listed in Sections 5.02.H, 5.02.I, 5.02.M and 5.02.N.1 of this Article.

     C. The owner, operator, or their agent shall use Authority prepared and furnished application and information request forms when applying for a Notice of Construction and Application for Approval.

     D. New source review of a modification shall be limited to the emissions unit or units proposed to be added to an existing or modified stationary source or source category and the air contaminants whose actual emissions would increase as a result of the modification. NOTE: Modification, as defined in Article I, Section 1.04 of this Regulation, does not have the same meaning as a Major Modification, defined in WAC 173-400-112 and WAC 173-400-113.

     E. New stationary sources' or source categories' emission calculations shall be based on a stationary source or source categories' "potential-to-emit", as defined in Article I, Section 1.04 of this Regulation. Modified stationary source or source category emission calculations shall be based on the increase in "actual emissions", as defined in Article I Section 1.04 of this Regulation.

     F. The Authority implements and enforces the requirements of WAC 173-400-114 for replacement or substantial alteration of emission control technology at an existing stationary source.

     G. A separate Notice of Construction and Application for Approval shall be filed for each new or modified stationary source, source category, or emissions control system, unless identical units are to be constructed, installed, or established and operated in an identical manner at the same facility, except that the owner or operator has the option to file one application for an entire facility, with a detailed inventory of stationary sources or source categories and their emissions related to that facility.

     H. A Notice of Construction and Application for Approval is not required for construction, installation, establishment, modification, or alteration of stationary sources or source categories, comprised of equipment utilized exclusively in connection with any structure, which is designed for, and used exclusively as, a residence with not more than four dwelling units.

     I. A Notice of Construction and Application for Approval is required for portable, (or temporary, if applicable) stationary sources or source categories, operating in accordance with Section 5.08 - the first time that it operates in Spokane County. Thereafter, each time that the portable or temporary stationary source or source category relocates and operates at a new site in Spokane County, it must apply for and obtain an approved Notice of Intent to Install and Operate a Temporary Stationary Source pursuant to Section 5.08.

     J. A person seeking approval to construct or modify an air operating permit source, may elect to integrate review of the air operating permit application or amendment, required under RCW 70.94.161, and the Notice of Construction and Application for Approval required by this Article. A Notice of Construction and Application for Approval designated for integrated review shall be processed in accordance with the provisions in Chapter 173-401 WAC.

     K. A Notice of Construction and Application for Approval for a major modification in a nonattainment area, or for a major stationary source in a nonattainment area, is subject to the public notice requirements of Section 5.05.

     L. An applicant filing a Notice of Construction and Application for Approval for a project described in WAC 173-400-117(2) (Special protection requirements for Class I areas) must send a copy of the application to the responsible federal land manager.

     M. De minimis emission levels (based on Potential-To-Emit), below which a new source or stationary source category, is not subject to a Notice of Construction and Application for Approval, are listed in Exhibit "R" of Article IV of this Regulation. De minimis emission levels (based on actual emissions increase), below which a modification of an existing stationary source or source category, is not subject to a Notice of Construction and Application for Approval, are listed in Exhibit "R" of Article IV of this Regulation. The owner or operator shall maintain sufficient documentation, as required by the Authority, to verify that the new or existing stationary source or source category is entitled to continued exemption under this section.

     N. Transfer of Ownership

     1. If an existing stationary source or stationary source category, with a valid Order of Approval, is transferred to new ownership per Article IV, Section 4.02.D and the stationary source category or stationary source category is unchanged by the transfer, then the existing Order of Approval is transferable to the new ownership, as written.

     2. An existing Order of Approval is not transferable to a stationary source or stationary source category that is installed or established at a site where a stationary source category or stationary source category was previously located and the business nature of the new source is different from the previous stationary source.

     3. In either of the above cases, if the stationary source or stationary source category did not have a valid Order of Approval under the prior ownership, then the owner or operator of the new source or stationary source category shall apply for, and receive approval of, a Notice of Construction prior to commencing operation.

     O. Except where Ecology is the permitting agency pursuant to WAC 173-400-141 (PSD) or Ecology's Industrial Sector has retained specific air pollution stationary sources or source categories exclusively under their jurisdiction, pursuant to RCW 70.94.422, the Authority permits, implements and enforces WAC 173-400-112 (Requirements for new sources in nonattainment areas) and WAC 173-400-113 (Requirements for new sources in attainment areas), in Spokane County.

     P. The following new sources are exempt from the requirement to file A Notice of Construction and Application for Approval, provided that the source has registered with the Authority (as required per Regulation I, Article IV) prior to placing the source in operation:

     1. Batch coffee roasters with a maximum rated capacity of 10 lbs per batch or less, unless air pollution controls are required because of documented nuisance odors or emissions.

AMENDATORY SECTION

SCAPCA 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 in the current fee schedule.

     1. The Board shall annually 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 Authority 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.

     ((The annual fee for each source shall be determined as follows:

     1. For sources that are not subject to Section 10.06.B.3, 4, or 5. of this Regulation and which emit less than 5 tons per year of criteria and toxic air pollutants:

     a. a flat fee of $160; and

     b. a $30 fee for each stack and other emission point, not to exceed $600; and

     c. an emission fee of $20 per ton of each criteria and toxic air pollutant; and

     d. an additional fee of $150 for each source which operated at least one incinerator or burn out oven during the registration period; and

     e. an additional fee of $100 if the source is required by the Authority to submit an annual emissions inventory to the Washington Emission Data System (WEDS).

     2. For sources that are not subject to Section 10.06.B.3, 4, or 5. of this Regulation and which emit 5 tons or more per year of criteria and toxic air pollutants, but less than 100 tons per year of any one criteria pollutant:

     a. a flat fee of $215; and

     b. a $30 fee for each stack and other emission point, not to exceed $600; and

     c. an emission fee of $20 per ton of each criteria and toxic air pollutant; and

     d. an additional fee of $150 for each source which operated at least one incinerator or burn out oven during the registration period; and

     e. an additional fee of $100 if the source is required by the Authority to submit an annual emissions inventory to the Washington Emission Data System (WEDS).

     3. For facilities, where the dispensing of gasoline is the only registered emission point, and which are not subject to Section 10.06.B.4 of this Regulation, a flat fee of $165.))

     C. The annual fee for each air operating permit source shall be determined as follows:

     ((4)) 1. 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. SCAPCA time fee, as determined by the following formula:

TFI =	(HI+ HG) x RPC
	HT

     Where,

     TF_I is the SCAPCA time fee for AOP source, I;

     H_I is the total SCAPCA staff hours spent on AOP source, I;

     H_G is the total general hours SCAPCA 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 SCAPCA AOP program cost, calculated by subtracting the sum of the Section 10.06.B.4.a and b. fees from the total SCAPCA AOP program costs; and

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

     Note: H_I, H_G, H_T, and RPC are for the most recent SCAPCA fiscal year.

     Note: H_I, H_G, and H_T are obtained from SCAPCA time accounting records.

     d. Program deficit recovery fee, as determined by the following formula:

	PDRFI		=	Remaining Program Deficity	x	EI (y - 1)
		y=2006->2015		(2016 - y)		ET (y - 1)

     Where,

     PDRF_I 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";

     Remaining Program Deficit_y is the total cumulative funding deficit for SCAPCA's AOP program at the end of year "y";

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

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

     E_T 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;

     F_I is the total individual fee assessed pursuant to Section 10.06.((B.4))C.1.a., b., c., and d. of this Regulation;

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

     F_T is the sum of all the individual fees assessed pursuant to Sections 10.06.((B.4))C.1.a., b., c., and d. of this Regulation.

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

     a. A fee of $50 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;

     F_I is the total individual fee assessed pursuant to Section 10.06..((B.5))C.2.a. of this Regulation;

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

     F_T is the sum of all the individual fees assessed pursuant to Sections 10.06..((B.5))C.2.a. of this Regulation.

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

AMENDATORY SECTION

REGULATION I, ARTICLE IV, SECTION 4.02

ARTICLE IV

SECTION 4.02 GENERAL REQUIREMENTS FOR REGISTRATION

     A. Registration Responsibility. The owner, operator, or a designated agent of a stationary source, shall register said stationary source, except those stationary sources exempted under Section 4.03 of this Article, using forms furnished by the Authority. The owner and operator of the stationary source are responsible for registration and for submitting accurate information.

     B. Registration Information. The owner, operator, or designated agent shall register each emissions unit, including quantifiable fugitive air emissions, located at the stationary source. The owner, operator, or designated agent shall provide information to the Authority, as may be required by the Authority, concerning location, size, and height of air contaminant outlets, processes employed, nature of the air contaminant emission, and such other information, as is relevant to air pollution. The owner, operator, or designated agent shall update registration information annually, using forms provided by the Authority.

     C. Signature. The owner, operator, or the designated agent for such owner or operator shall sign each registration form verifying that the information on the form is to his or her knowledge, complete and accurate.

     D. Reporting requirements for transfer or change of ownership of registered stationary sources.

     1. The new owner or operator, that assumes ownership and/or operational control of a registered stationary source, shall report any change of ownership or change of operator to the Authority, within ninety (90) days of completing transfer of ownership and/or assuming operational control. The new owner or operator shall report the change on "Change of Ownership Forms" provided by the Authority. The report shall contain the following information:

     a. Legal name of the company prior to transfer;

     b. Site address;

     c. Previous owner's name;

     d. New legal name of company (if different)

     e. New owner's name;

     f. New owner's mailing address;

     g. New owner's phone number;

     h. Effective date of the transfer;

     i. Description of the affected emission units; and

     j. New owner's or responsible agent's signature.

     2. Any liability for fee payment, including payment of delinquent fees and other penalties shall survive any transfer of ownership of a stationary source.

     E. Reporting requirements for permanent shutdown of registered stationary sources.

     1. The owner or operator shall file a "Source Closure Notification Form" with the Authority within ninety (90) days after the owner or operator determines that operations, producing air contaminant emissions, have permanently ceased. The report shall contain the following information:

     a. Legal name of the company prior to closure or shutdown;

     b. Stationary source address;

     c. Effective date of the stationary source closure or emissions unit shutdown;

     d. Description of the affected emission units; and

     e. Owner's or responsible agent's signature.

     2. In the event of a permanent closure, process and pollution control equipment may remain in place and on site, but shall be configured such that the equipment or processes are incapable of generating emissions to the atmosphere (e.g. disconnection of power to equipment, mechanical positioning that inhibits processing; placing of padlocks on equipment to prevent operation).

     F. New Sources.

     1. The owner or operator of an stationary source shall file a Notice of Construction and Application for Approval, in accordance with Article V of this Regulation, prior to establishing any new or modified stationary source. An approved Notice of Construction and Application for Approval suffices to meet the initial requirement to register the stationary source. Registration information shall be updated annually thereafter.

     2. Prior to re-opening a closed stationary source, or establishing a new source at a site for which the Authority has received a "Source Closure Notification Form", the proponent shall contact the Authority for a determination as to whether a Notice of Construction and Application for Approval must be filed with, and approved by, the Control Officer, per the requirements of Article V of this Regulation, prior to operation.

     3. An exemption from new source review under Article V of this Regulation shall not be construed as an exemption from registration under this Article. In addition, an exemption from registration under this Article shall not be construed as an exemption from any other provision of this Regulation.

     Reviser's note: The typographical error in the above material occurred in the copy filed by the SCAPCA and appears in the Register pursuant to the requirements of RCW 34.08.040.

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