PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 06-20-126.
Title of Rule and Other Identifying Information: This proposal will consolidate air quality program fees into a new chapter, chapter 173-455 WAC, Air quality fee rule, as well as add two new fees. The two new fees will be for air pollution standards variance and portable/temporary source permits. Ecology is proposing to move fee sections, without change, from the following existing chapters: Chapter 173-400 WAC, General regulations for air pollution sources; chapter 173-407 WAC, Carbon dioxide mitigation program for fossil-fueled thermal electric generating facilities; chapter 173-433 WAC, Solid fuel burning devices; chapter 173-491 WAC, Emission standards and controls for sources emitting gasoline vapors; and chapter 173-495 WAC, Weather modification.
Hearing Location(s): Department of Ecology Eastern Regional Office, 2nd Floor Large Conference Room, 4601 North Monroe Street, Spokane, WA 99205, on January 8, 2007, at 7:00 p.m.
Date of Intended Adoption: February 15, 2007.
Submit Written Comments to: Leigh Fiedler, P.O. Box 47600, Olympia, WA 98504-7600, e-mail lfie461@ecy.wa.gov, fax (360) 407-7534, received by 5:00 p.m. January 15, 2007.
Assistance for Persons with Disabilities: Contact Tami Dahlgren at (360) 407-6800, by December 29, 2006, TTY 1-800-833-6388 or 711.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Propose a new chapter 173-455 WAC, Air quality fee rule that will include air quality program fees (from existing chapters as well as some new fees). The new fees will be for the following activities: Air pollution standards variance; portable/temporary source permits; and move fees from existing WAC 173-400-045, 173-400-104, 173-400-116, 173-407-040, 173-433-170, 173-491-030, 173-495-060, 173-495-065, and 173-495-070, to incorporate those fees into the new chapter without change.
Statutory Authority for Adoption: Chapter 70.94 RCW.
Statute Being Implemented: Chapter 70.94 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of ecology, governmental.
Name of Agency Personnel Responsible for Drafting and Implementation: Leigh Fiedler, department of ecology, (360) 407-7530; and Enforcement: Sarah Rees, department of ecology, (360) 407-6823.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule meets the exemptions "rules that set or adjust fees or rates pursuant to legislative standards," pursuant to chapter 19.85 RCW.
A cost-benefit analysis is not required under RCW 34.05.328. This rule meets the exemption "rules that set or adjust fees or rates pursuant to legislative standards" pursuant to RCW 34.05.328 (5)(b)(vi).
November 9, 2006
Polly Zehm
Deputy Director
OTS-8477.3
AIR QUALITY FEE REGULATION
[]
(1) "Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material to produce heat for the generation of electricity.
(2) "Solid fuel burning device" (same as solid fuel heating device) means a device that burns wood, coal, or any other nongaseous or nonliquid fuels, and includes any device burning any solid fuel except those prohibited by WAC 173-433-120. This also includes devices used for aesthetic or space-heating purposes in a private residence or commercial establishment, which has a heat input less than one million British thermal units per hour.
(3) "Weather modification and control" means changing or attempting to change or control by artificial methods, the natural development of any or all atmospheric cloud forms or precipitation forms which occur in the troposphere.
[]
[]
[]
(1) Air operating permit program - fees can be found in chapter 173-401 WAC.
(2) Ag burning - fees can be found in chapter 173-430 WAC.
(3) Motor vehicle emission inspection - fees can be found in chapter 173-422 WAC.
[]
(2) Budget preparation. Ecology shall conduct a workload analysis projecting resource requirements for administering the registration program. Workload estimates shall be prepared on a biennial basis and shall estimate the resources required to perform registration program activities listed in WAC 173-400-099(2). Ecology shall prepare a budget for administering the registration program using workload estimates identified in the workload analysis for the biennium.
(3) Registration fee schedule. Ecology's registration program budget shall be distributed to sources located in its jurisdiction according to the following:
(a) Sources requiring periodic registration and inspections shall pay an annual registration fee of four hundred dollars.
(b) Sources requiring annual registration and inspections shall pay a registration fee comprised of the following three components:
(i) Flat component. This portion of a source's fee shall be calculated by the equal division of thirty-five percent of the budget amount allocated to annual registration sources by the total number of sources requiring annual registration.
(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 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.
(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) Fee reductions for economic hardships. If a small business owner 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) Fee payments. Fees specified in this section shall be paid within thirty days of receipt of ecology's billing statement. All fees collected under this regulation shall be made payable to the Washington department of ecology. A late fee surcharge of fifty dollars or ten percent of the fee, whichever is more, may be assessed for any fee not received after 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) 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.
[]
(2) Fees. The fees for the carbon dioxide mitigation program are described in this section and listed in the table below. The fees listed are added to the fees established in chapters 173-400 and 173-401 WAC, when the carbon dioxide mitigation plan requirements are triggered.
Activity | Fee | |
a. Application review | $65.00/hr. not to exceed $500.00 | |
b. Mitigation plan approval | ||
i. Payment to third party | $100.00 | |
ii. Purchase of CO2 credits | $65.00/hr. | |
iii. Direct investment | $65.00/hr. | |
c. Routine compliance monitoring | ||
i. Payment to third party | $100.00 annually until full amount paid | |
ii. Purchase of CO2 credits | $65.00/hr. | |
iii. Applicant controlled project | $65.00/hr. |
[]
(2) The fee shall be:
(a) Set at a minimum of thirty dollars on January 1, 1992. Thereafter, ecology may annually adjust the fee to account for inflation as determined by the office of the state economic and revenue forecast council. Adjustments in the fee should be rounded down to the nearest dollar.
(b) Applicable to all new and used solid fuel burning devices.
(c) Procedures for masonry fireplaces. Generally, contractors will collect, pay, and report the fee to the department of revenue on the combined excise tax return for the tax reporting period during which the retail sales tax is billed to the customer for the construction of the masonry fireplace. (See WAC 458-20-170 for a detailed explanation.) Collection and payment of the fee by contractors shall be in accordance with the following:
(i) A masonry contractor or other subcontractor who builds a masonry fireplace. The retail sale occurs at the time the general or prime contractor or customer is billed for the work. The masonry contractor or other subcontractor must collect the fee and pay it to the department of revenue, unless the masonry contractor or other subcontractor has received a resale certificate from the general or prime contractor. The fee shall be reported on the combined excise tax return.
(ii) A general or prime contractor building a custom building. The retail sale occurs at the time the customer is billed for the construction. The fee is charged and reported with the first progress payment after the masonry fireplace has been substantially completed. If a general or prime contractor subcontracts the work on a custom building to a masonry or other contractor, the general or prime contractor may give the masonry or other subcontractor a resale certificate. The general or prime contractor is responsible to collect the fee and pay it to the department of revenue. The fee is reported on the combined excise tax return.
(iii) A general or prime contractor building a speculation building. The fee is required to be paid at the time the fireplace is complete. The fee must be reported to the department of revenue on a combined excise tax return and paid to the department of revenue. If the prime or general contractor subcontracts the building of the masonry fireplace to a masonry contractor or other subcontractor, the general or prime contractor may not give a resale certificate to the masonry or other subcontractor. The masonry or other subcontractor must collect and pay the fee to the department of revenue as provided in (c)(i) of this subsection.
(d) Procedures for all other solid fuel burning devices. Collected by the retailer at the time of sale and remitted to the department of revenue in conjunction with the retail sales tax under chapter 82.08 RCW.
(3) If the retailer or contractor fails to collect and remit the fee to the department of revenue as prescribed in chapter 82.08 RCW, the retailer or contractor shall be personally liable to the state for the amount of the fee, with subsequent actions taken in accordance with the collection provisions of chapter 82.32 RCW.
(4) Beginning July 1, 1990, and each calendar quarter thereafter, the funds collected under RCW 70.94.483 shall be used solely for the purposes of public education and enforcement of the solid fuel burning device program. The department shall distribute the funds from the woodstove education and enforcement account as follows:
(a) Sixty-six percent of the funds shall be distributed to those local air authorities with enforcement programs, based upon the fraction of the total state population residing in the counties within their respective jurisdictions. Population figures used to establish this fraction shall be determined by the office of financial management. Where an activated local air authority does not exist or does not implement an enforcement program, or elects not to receive the funds, ecology shall retain the funds that would otherwise be distributed under this subsection; and
(b) Thirty-four percent of the funds shall be distributed to ecology for the purposes of enforcement and educating the public about:
(i) The effects of solid fuel burning device emissions upon health and air quality; and
(ii) Methods of achieving better efficiency and emission performance from solid fuel burning devices.
[]
[]
[]
[]
(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.
[]
[]
(2) Basic review fees. All owners or operators of proposed new sources are required to pay a basic review fee. The basic review fee covers the costs associated with preapplication assistance, completeness determination, BACT determination, technical review, public involvement and approval/denial orders. Complexity determination shall be based on the project described in the notice of construction application. The basic review fees are either (a) or (b) of this subsection:
(a) Basic new source review fees.
Source type | Clarifying criteria | Fee |
Basic Review Fees | ||
Low complexity source | Emissions increase of individual pollutants are all less than one-half of the levels established in the definition of "emission threshold" in WAC 173-400-030, or emissions increase of individual toxic air pollutants are all less than 2.0 tons/year | $1250 |
Moderate complexity | Emissions increase of one or more individual pollutants are greater than one-half of, and less than, the levels established in the definition of "emission threshold" in WAC 173-400-030, or emissions increase of one or more toxic air pollutants are greater than 2.0 tons/year and less than 10.0 tons/year | $8000 |
High complexity | Emissions increase of one or more pollutants are greater than the levels established in the definition of "emission threshold" in WAC 173-400-030, or emissions increase of one or more toxic air pollutants are greater than 10.0 tons/year | $18,000 |
Source type | Clarifying criteria | Fee | |
Dry cleaners | $250 | ||
Gasoline stations | $250 | ||
Storage tanks | |||
< 20,000 gallons | $250 | ||
20,000 - 100,000 gallons | $650 | ||
> 100,000 gallons | $900 | ||
Chromic acid plating and anodizing identified in WAC 173-460-060 | $250 | ||
Solvent metal cleaners identified in WAC 173-460-060 | $250 | ||
Abrasive blasting identified in WAC 173-460-060 | $250 | ||
New emission units or activities that qualify as insignificant emission units under WAC 173-401-530 whether located at a chapter 173-401 WAC source or nonchapter 173-401 WAC source | $250 | ||
Application for coverage under a general order of approval | WAC 173-400-560 and criteria included in a specific general order of approval | $500 | |
Nonroad engines | |||
Less than a total of 500 installed horsepower | $500 | ||
More than 500 horsepower and less than a total of 2000 installed horsepower | $900 | ||
More than 2000 horsepower and less than a total of 5000 installed horsepower | $2000 | ||
More than 5000 horsepower and less than a total of 10,000 installed horsepower | $4000 | ||
More than a total of 10,000 installed horsepower | $7500 |
(3) Additional charges. In addition to those fees required under subsection (2)(a) through (c) of this section, the following fees will be required as applicable:
(a) Major NSR actions under WAC 173-400-720 and 173-400-112.
Activity | Clarifying criteria | Fee |
Prevention of significant deterioration review or increase in a PAL limitation | WAC 173-400-720 | $15,000 |
Establishing LAER and offset requirements | WAC 173-400-112 | $10,000 |
Establishing or renewal of clean unit status | Per 40 CFR 52.21(y) | $1500 |
Pollution control project approval | Per 40 CFR 52.21(z) | $1500 |
Establishment of a PAL | Per 40 CFR 52.21(aa) | $4000 |
Renewal of a PAL | Per 40 CFR 52.21(aa) | $4000 |
Expiration of a PAL | Per 40 CFR 52.21(aa) | $12,000 |
PSD permit revisions | ||
All except administrative | WAC 173-400-750 | $10,000 |
Administrative revisions | WAC 173-400-750 | $1500 |
Activity | Clarifying criteria | Fee |
Tier II toxic air pollutant impact review | $10,000 | |
Tier III toxic air pollutant impact review | $10,000 | |
Case-by-case MACT determinations | $12,500 | |
Fossil-fueled electric generating unit | Applicability criteria found in chapter 80.70 RCW | Fees listed in rule implementing RCW 70.94.892 and chapter 80.70 RCW |
Changes to existing orders of approval, Tier I review, Tier II review, or other action identified above. | ||
Activity | Fee | |
Modification to order of approval | 50% of the fee charged in WAC 173-400-116 (2)(a) | |
Modification of Tier II approval | 50% of the fee charged in WAC 173-400-116 (2)(b) |
(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.
(5) Fee reductions for pollution prevention initiatives. Ecology may reduce the fees defined in subsections (2) and (3) of this section where the owner or operator of the proposed source demonstrates that approved pollution prevention measures will be used.
(6) Fee payments. Fees specified in subsections (2) through (5) of this section shall be paid at the time a notice of construction application is submitted to the department. A notice of construction application is considered incomplete until ecology has received the appropriate new source review payment. Additional charges assessed pursuant to subsection (3) of this section shall be due thirty days after receipt of an ecology billing statement. All fees collected under this regulation shall be made payable to the Washington department of ecology.
(7) Dedicated account. All new source review fees collected by the department shall be deposited in the air pollution control account.
(8) 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 complexity categories.
(9) Periodic review. Ecology shall review and, as appropriate, update this section at least once every two years.
[]
[]
[]