WAC 173-401-920   Accountability -- Ecology and delegated local authorities.  (1) Public participation during fee determination process. Ecology shall provide for public participation in the fee determination process described under WAC 173-401-900, which provision shall include but not be limited to the following:

     (a) Ecology shall provide opportunity for public review of and comment on each biennial workload analysis and budget.

     (b) Ecology shall publish in the Permit Register notice of issuance of its draft biennial workload analysis and draft biennial budget and issuance of its annual fee schedule.

     (c) Ecology shall make available for public review, on or before February 28 of each even-numbered year, copies of its draft biennial workload analysis and draft biennial budget. Ecology shall make available for public review, on or before October 31 of each year, copies of its annual fee schedule. Ecology shall maintain a mailing list of persons requesting opportunity for review under this subsection or under WAC 173-401-925(1). Ecology may, from time to time, inform the public of the opportunity to be placed on the mailing list and may delete from the list persons who fail to respond to an inquiry regarding continued interest in receiving materials.

     (d) Ecology shall provide at least sixty days for public comment on the draft biennial workload analysis and draft biennial budget. Such sixty-day period for comment shall run from the date ecology mails the draft workload analysis and draft budget as provided in (c) of this subsection.

     (2) Tracking of revenues, time and expenditures.

     (a) Revenues. Ecology shall track revenues on a source-specific basis.

     (b) Time and expenditures. Ecology shall track time and expenditures on the basis of source categories and functional categories, except that, as part of a demonstration project undertaken pursuant to RCW 70.94.162, ecology will track time and expenditures on a source-specific basis for at least three but no more than five sources.

     (i) Sources will be grouped into five categories, as follows:

     (A) Kraft pulping mills;

     (B) Sulfite pulping mills;

     (C) Metal processing and related industries;

     (D) Sources located on the Hanford Reservation; and

     (E) Other sources, including those sources under the jurisdiction of ecology's central and eastern regional offices.

     (ii) Functions will be grouped into several categories and subcategories, as follows:

     (A) Program management and support;

     (B) Program development;

     (C) Permit processing;

     (I) Application assistance and review;

     (II) Preparing draft and final permits;

     (D) Permit management and compliance activities;

     (E) Technical assistance; and

     (F) Outreach and education.

     (c) Use of information obtained from tracking revenues, time and expenditures.

     (i) Ecology shall use the information obtained from tracking revenues, time and expenditures to modify its workload analysis during the biennial review provided for under WAC 173-401-900.

     (ii) The information obtained from tracking revenues, time and expenditures shall not provide a basis for challenge to the amount of an individual source's fee.

     (3) Periodic fiscal audits, reports and performance audits. A system of regular, periodic fiscal audits, reports and performance audits shall be conducted in order to evaluate the implementation of the operating permit program by ecology and delegated local authorities. Ecology and each delegated local authority shall gather baseline data, where appropriate, to which the various evaluation criteria will be compared.

     (a) Fiscal audits. Ecology and each delegated local authority shall contract with the state auditor to have the auditor perform a standard fiscal audit of ecology's and each delegated local authority's operating permit program every other year.

     (b) Annual routine performance audits. Ecology and each local authority shall be subject to annual routine performance audits, except that the routine performance audit shall be incorporated into the extensive performance audit, conducted pursuant to subsection (3)(d) of this section, in each year during which an extensive performance audit is conducted. Ecology shall conduct the audits of each of the delegated local authorities. An individual from another state's environmental agency shall conduct the audit of ecology. In the event that no such individual is able to serve in this capacity, an independent contractor shall conduct the audit of ecology; the contractor is to be free of any conflicts of interest, to the extent possible, and is to be agreed upon by a committee comprised of one representative each from the environmental and regulated communities, and one representative of a delegated local authority. Any contractor applying to conduct the audit of ecology shall be required to disclose in its application any potential conflicts of interest. The annual routine performance audits shall incorporate by reference information contained in the relevant annual report and, every other year, in the relevant fiscal audit. The annual routine performance audits shall address the following questions and measures of performance:

     (i) How many permits lapsed?

     (A) Explanation of lapse;

     (B) Comments;

     (ii) What is the total number of permit applications or applications for permit modifications?

     (A) Average application processing time;

     (B) Number of disapproved applications and reason for disapproval;

     (C) Number of permit applications regarding which permitting authority had to return to source to request additional information. Number of times permitting authority had to return to source before permit deemed complete;

     (iii) To how many permits did the EPA object? To what percentage of permits did EPA object (including objection upon petition from public)?

     (A) Grounds for objection;

     (B) Agency response;

     (I) Deficiency remedied;

     (II) Timeliness (that is to say, within ninety days? Did administrator issue permit?)

     (iv) How many permits were subject to legal/administrative challenge? What percentage of permits were subject to legal/administrative challenge?

     (A) Challenging party;

     (B) Grounds for challenge;

     (I) Substantive;

     (II) Procedural;

     (C) Outcome of challenge/prevailing party;

     (D) Agency response;

     (v) How many administrative enforcement actions were taken for failure to meet permit requirements? How many notices of violation were issued?

     (A) Date issued; time elapsed since violation discovered;

     (B) Reason;

     (C) Result (that is to say, penalties? Orders of agreement? Legal challenge?)

     (D) Source returned to compliance; date; (if not, explain);

     (vi) What was the frequency of inspections at each facility?

     (A) Announced;

     (B) Unannounced;

     (C) Comparison with baseline data;

     (vii) How many accidental releases, as defined in Section 112(r) of the Federal Clean Air Act, occurred?

     (A) Reason identified;

     (B) Agency response;

     (C) Resulting changes to terms of permit, if any;

     (D) Comparison with baseline data;

     (viii) What was the amount of the expenditures per permit issuance?

     (A) Average for program;

     (B) Average for source category;

     (c) Annual random individual permit review. Five percent of the permits issued by each permitting authority, or if five percent of the permits issued by a permitting authority is equal to or less than one, at least one permit issued by the permitting authority shall be subject to review each year in conjunction with the annual routine performance audit. The permit to be reviewed shall be selected at random. Ecology shall conduct the review in the case of each of the delegated local authorities. An individual from another state's environmental agency shall conduct the audit of ecology. In the event that no such individual is able to serve in this capacity, an independent contractor shall conduct the audit of ecology; the contractor is to be free of any conflicts of interest, to the extent possible and is to be agreed upon by a committee comprised of one representative each from the environmental and regulated communities, and one representative of a delegated local authority. Any contractor applying to conduct the audit of ecology shall be required to disclose in its application any potential conflicts of interest. The annual random individual permit review shall address the following questions and measures of performance:

     (i) Can reviewer, from information available in permit, determine all requirements to which the source is subject?

     (ii) Does permit include all applicable requirements?

     (iii) Can reviewer, from information available in file, determine compliance status for each emission point? For facility?

     (iv) Does the file include technical reviews, source tests, CEM performance specification tests, permit applications, record of citizen complaints, correspondence with facility and other supporting documentation?

     (v) Are all major emissions points identified in permit?

     (vi) Are all pieces of control equipment identified in permit?

     (vii) Does the permit specify operation and maintenance requirements?

     (viii) Does the permit specify all monitoring, recording, reporting and certification requirements to which source is subject?

     (ix) Are alternative operating scenarios specified in permit? Are the conditions adequately specified?

     (x) Is the permit expiration date noted?

     (xi) Does the permit indicate which requirements are enforceable by federal/state mechanisms? Does the permit state the existence of opportunity for PCHB and other judicial review and opportunity to petition EPA?

     (xii) Were all procedural requirements, including notice to public and affected states, satisfied in issuing/modifying permit?

     (xiii) Did permit writer work with source to identify and consider opportunities for pollution prevention? Were any pollution prevention measures implemented?

     (xiv) Evaluation of overall performance:

     (A) Is permit complete and understandable? Assess completeness, clarity, etc.;

     (B) Assess procedural adequacy of permit issuance process.

     (d) Periodic extensive performance audits. Ecology and each local authority shall be subject to extensive performance audits every five years. In addition, ecology or a delegated local authority may be subject to an extensive performance audit more frequently under the conditions of WAC 173-401-920 (3)(e). Ecology shall conduct the audits of each of the delegated local authorities. An individual from another state's environmental agency shall conduct the audit of ecology. In the event that no such individual is able to serve in this capacity, an independent contractor shall conduct the audit of ecology; the contractor is to be free of any conflicts of interest, to the extent possible and is to be agreed upon by a committee comprised of one representative each from the environmental and regulated communities, and one representative of a delegated local authority. Any contractor applying to conduct the audit of ecology shall be required to disclose in its application any potential conflicts of interest. The extensive performance audits shall incorporate by reference the information contained in the annual reports and the routine performance audits for the relevant period and shall take the place of the routine performance audit every fifth year (that is to say, they gather the routine performance audit information in addition to the information indicated below). The extensive performance audits shall address the following questions and measures of performance:

     (i) What was the number of modifications?

     (A) Comparison with projection;

     (B) Applicable to how many sources;

     (ii) Did the permitting authority have personnel adequate to complete workload in timely fashion?

     (iii) Were the total fees assessed adequate to fund program?

     (A) Amount of shortfall or overcharge;

     (B) Explanation;

     (iv) Were the total fees collected equal to total fees assessed?

     (A) Amount/percentage of shortfall;

     (B) Reason for shortfall;

     (v) Was there a program budget increase or decrease over period?

     (A) Percentage increase or decrease;

     (B) Explanation (for example, sources no longer part of operating permit program; new federal requirements implemented through permit program);

     (vi) What was the number of instances of late fee payment?

     (A) Agency response;

     (B) Result (that is to say, was the fee paid? Penalty assessed? Time interval between payment and date fee amount due?)

     (vii) How many sources were in compliance with all applicable requirements? What percentage of sources were in compliance with all applicable requirements? How do the number and percentage of sources in compliance with all applicable requirements compare with baseline compliance data?

     (viii) What was the number of businesses availing themselves of services offered by state or local business assistance programs? What level of effort was required to provide assistance?

     (ix) Were inspection results adequately documented?

     (x) Were the methods used to ascertain compliance and the frequency of required reporting and related activities appropriate for each facility?

     (A) Frequency of inspections appropriate for relevant facility;

     (B) Monitoring requirements appropriate for relevant facility;

     (xi) Were the operation and maintenance plans adequate?

     (xii) Were public information efforts adequate?

     (A) Public notice for actions relating to permitted sources meets/exceeds statutory requirements;

     (B) Agency/permit writers accessible to regulated community, to environmental community, and to stakeholders and general public;

     (C) Other outreach efforts;

     (xiii) Evaluation of overall performance:

     (A) Is permitting authority issuing quality permits?

     (B) Is permitting authority issuing/renewing permits in timely fashion?

     (C) Is permitting authority ensuring that sources are in compliance with terms and conditions of permit?

     (D) Is permitting authority effectively using operating permit as a tool for securing environmental improvements?

     (E) Is permitting authority efficiently administering program (includes, in the case of ecology, statewide program)? Indicate inefficiencies, where these exist;

     (F) Evaluation of particular questions identified in annual report/routine performance audit for further examination;

     (e) Finding of inadequate administration or need for further evaluation. If, in the process of conducting a fiscal audit, annual routine performance audit, or annual random individual permit review, the entity conducting the audit finds that ecology or a delegated local authority is inadequately administering the operating permit program or finds that further evaluation is immediately warranted, an extensive performance audit shall be conducted, as provided in WAC 173-401-920 (4)(d).

     (f) Preaudit public meeting with auditor. Ecology and each delegated local authority shall provide the opportunity for interested individuals to provide comment to the entity conducting an annual routine performance audit, annual random permit review or extensive performance audit prior to the audit. Such opportunity shall consist of a single, informal meeting at which at least one representative from the regulated community and at least one representative of the environmental community are present. Ecology and each delegated local authority shall provide notice of the preaudit meeting in the Permit Register.

     (g) Annual reports. Ecology and each delegated local authority shall prepare an annual report evaluating its operating permit program administration. Such report shall include any findings resulting from the relevant fiscal audits, annual routine performance audits, annual random individual permit reviews or periodic extensive performance audits. Ecology shall submit its annual report to the appropriate standing committees of the legislature. Each delegated local authority shall submit its report to its board of directors and to ecology.



[Statutory Authority: Chapter 70.94 RCW. 94-02-041 (Order 93-19), § 173-401-920, filed 12/30/93, effective 1/30/94.]