The following amendments to Regulation 3 are proposed:

Schedule A: Hearing Board Fees for variance applications for large companies will increase from at least $70 up to $540. For small businesses, variance fees will increase from $115 to $150 per application, but most other fees will be reduced from $60 to $50. New Schedule A, Attachment 1: Excess Emission Fee will charge $1.00 per pound of air contaminants, $5.00 per pound of specified toxic air contaminants and $1.12 per percentage point of opacity over the applicable standard for the period of variance.

For permitted sources, the proposed amendments will add a cost of living increase and implement the 1998-1999 Cost Recovery Study recommendations, which will increase fees by the following amounts:

• Schedule B: Combustion of Fuel, minimum fees +15%, other fees +7%;
• Schedule C: Stationary Containers for the Storage of Organic Liquids, minimum fees +15%, other fees +5%;
• Schedule D: Gasoline Transfer at Gasoline Dispensing Facilities, Bulk Plants and Terminals, all fees +15%;
• Schedule E: Solvent Evaporating Sources, all fees +15%;
• Schedule F: Miscellaneous Sources, minimum fees +15%, Schedule G-1 +15%, Schedule G-2 +15%, Schedule G-3 +5%, Schedule G-4 +5%;
• Schedule H: Semiconductor and Related Operations, all fees +15%;
• Schedule I: Dry Cleaners, all fees +15%;
• Schedule K: Solid Waste Disposal Sites, all permit fees +15%, selected report fees +15%;
• Schedule M: Major Stationary Source Fees, all fees +15%; In addition, PM10 will be added to the pollutants subject to
• Schedule M and the threshold for Schedule M applicability will be reduced from 100 tons per year to 50 tons per year.
• Schedule P: Major Facility Review Fees, all fees +15%.

The proposed amendments will also increase filing fees for New and Modified Sources, filing and withdrawal fees for Banking, and fees for Alternate Compliance Plans by 15%. The proposed amendments will add certain types of sources to Schedules G-1, G-2 and G-3 (as indicated by italicized type in the proposed rule amendments), which may increase fees charged to these sources. In addition, the proposed amendments will change the definition of small business to mean only those businesses with 10 employees or less and $500,000 gross annual income or less.

For non-permitted sources, the proposed amendments add a cost of living increase of 4.3% to Schedules L: Asbestos Operations and Q: Aeration of Contaminated Soil and Removal of Underground Storage Tanks. These proposed amendments will be the subject of a second public hearing on July 19, 2000.

The District has determined that these amendments to Regulation 3 are exempt from provisions of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to State CEQA Guidelines, Sections 15061, subd. (b)(3), and 15273. The amendments are administrative in nature, and do not in themselves affect air emissions from any sources or operations subject to the rule. It can therefore be seen with certainty that there is no possibility that these proposed amendments will have a significant environmental impact and that the statutory CEQA exemption for the establishment and/or modification of District permit process fees applies to this rulemaking action. The District intends to file a Notice of Exemption pursuant to State CEQA Guidelines, Section 15062.

A copy of proposed changes to Regulation 3 with additions underlined and deletions stricken through, and a copy of the draft staff report is available for viewing on the District’s web site at www.baaqmd.gov, or by request. Requests for copies of the proposed rule changes or staff report should be directed to May Leung, Secretary, at (415) 749-4729. Questions and comments regarding this proposal should be directed to Bill de Boisblanc, Director of Permit Services, at (415) 749-4704, or sent electronically at wdeboisblanc@baaqmd.gov. Written comments must be received prior to 5:00 p.m. on Wednesday, May 24, 2000.