NOTICE OF PUBLIC HEARING BAY AREA AIR QUALITY MANAGEMENT DISTRICT PROPOSED AMENDMENTS TO DISTRICT REGULATION 3: FEES AND APPROVAL OF THE FILING OF A NOTICE OF EXEMPTION FROM CEQA Notice is hereby given that the Board of Directors of the Bay Area Air Quality Management District (Air District) conducted a hybrid public hearing on May 4, 2022 via Zoom and in-person, at 8:30 a.m. to receive testimony on proposed amendments to District Regulation 3: Fees. Notice is also given that the Board of Directors will conduct a second public hearing on June 15, 2022, or as soon thereafter as the matter may be heard, to consider adoption of the proposed amendments to Regulation 3: Fees and to approve the filing of a Notice of Exemption from the California Environmental Quality Act (CEQA). California Health and Safety Code Section 41512.5 requires a district board, prior to adopting or revising fees applicable to emission sources that are not permitted, to hold a public hearing at least 30 days prior to the meeting of the district board at which the amendments are adopted or revised. Fee Schedules L, Q, R, S, U, and V pertain to fees from these sources. The proposed amendments to the Air District's fee regulation would be effective on July 1, 2022 and would increase fee revenue to allow the Air District to meet budgetary needs for the upcoming fiscal year ending (FYE) 2023. The fee rates in the following Fee Schedules would be increased 15%: Schedule A: Hearing Board Fees Schedule B: Combustion of Fuel Schedule C: Stationary Containers for the Storage of Organic Liquids – Base fee in calculation for the Risk Assessment Fee only Schedule D.A: Gasoline Dispensing Facilities (GDFs) – Risk Assessment Fee only for existing facilities Schedule E: Solvent Evaporating Sources Schedule F: Misc. Sources (e.g., storage silos, abrasive blasting) Schedule G-1: Misc. Sources (e.g., glass manufacturing, soil remediation) Schedule G-2: Misc. Sources (e.g., asphaltic concrete manufacturing, furnaces) Schedule G-3: Misc. Sources (e.g., metal melting, cracking units) Schedule G-4: Misc. Sources (e.g., cement kilns, sulfur removal & coking units) Schedule H: Semiconductor and Related Operations Schedule K: Solid Waste Disposal Sites Schedule M: Major Stationary Source Fees Schedule N: Toxic Inventory Fees Schedule P: Major Facility Review Fees Schedule S: Naturally Occurring Asbestos Operations Schedule T: Greenhouse Gas Fees Schedule V: Open Burning Schedule W: Petroleum Refining Emissions Tracking Fees The following specific fees in Regulation 3 would be increased by 15%: Fees for New and Modified Sources, Emission Banking Fees, Emission Caps and Alternative Compliance Plans: Regulation 2, Rule 9 or Regulation 9, Rule 10 Alternative Compliance Plan fee, Toxic Inventory maximum fee, Permit to Operate renewal processing fees, Assembly Bill 617 Community Health Impact Fee maximum fee, Criteria Pollutant and Toxic Emissions Reporting maximum fee, Exemption Fee, Fee for Risk Reduction Plan, Fee for Facility-Wide Health Risk Assessment, and Fees for Air Dispersion Modeling. To implement the requirements of the December 2021 adopted amendments to Regulation 2 (Permits), Rules 1 (General Requirements) and Regulation 2, Rule 5 (New Source Review for Toxic Air Contaminants), the following additional amendments are proposed: (1) Add Section 3-302.7, Fees for New and Modified Sources which is a $1,000 application fee for applications requiring a health risk assessment in an overburdened community; (2) Amend Section 3-318 to apply to any public notice requirement (3) Add Section 3-327.4, Overburdened Community renewal fee which adds a fee equal to 15% of the annual total permit renewal fee, capped at $250,000 per year. Other changes: (1) To recover costs for work not previously charged a fee, amend Schedule S: Naturally Occurring Asbestos, when a Geologic evaluation is required. An evaluation fee of $3,200 and a $179 per hour inspection fee are proposed, (2) Add Section 3-344 to consolidate fee rounding language, and (3) Clean up formatting and text. The Air 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 increase Air District fees that are used to meet Air District operating expenses. The amendments are administrative in nature, do not affect air emissions from any sources, and have no possibility of causing significant environmental effects. The Air District intends to file a Notice of Exemption pursuant to State CEQA Guidelines, Section 15062. A copy of the proposed amendments may be viewed on the Air District's website at http://www.baaqmd.gov/reg3. Copies are also available by calling the Engineering Division at (415) 749-4990. Staff will accept written comments on the proposed amendments until May 25, 2022. Please direct comments or questions to Barry G. Young, Senior Advanced Projects Advisor, at (415) 749-4721, or electronically at byoung@baaqmd.gov (preferred). Alexander "Sandy" Crockett (he/him) Interim Acting Executive Officer/APCO Bay Area Air Quality Management District 5/16/22 CNS-3585198#