SENATE BILL REPORT

SB 6242

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Environment, Water & Energy, February 5, 2010

Title: An act relating to updating hazardous waste fee provisions.

Brief Description: Updating hazardous waste fee provisions. [Revised for 1st Substitute: Updating existing hazardous waste fees to reflect a specific price deflator.]

Sponsors: Senators Pridemore, Delvin and Hatfield; by request of Department of Ecology.

Brief History:

Committee Activity: Environment, Water & Energy: 1/15/10, 2/05/10 [DPS, DNP].

SENATE COMMITTEE ON ENVIRONMENT, WATER & ENERGY

Majority Report: That Substitute Senate Bill No. 6242 be substituted therefor, and the substitute bill do pass.

Signed by Senators Rockefeller, Chair; Pridemore, Vice Chair; Honeyford, Ranking Minority Member; Delvin, Fraser, Marr, Ranker and Sheldon.

Minority Report: Do not pass.

Signed by Senators Morton and Oemig.

Staff: Sam Thompson (786-7413)

Background: Hazardous waste generators must pay an annual Hazardous Waste Generation Fee to the Department of Ecology (Ecology). The fee is set in statute at $35. Ecology must annually adjust the fee for inflation in November. The current adjusted fee is $46.

Businesses generating hazardous waste are exempt from paying the fee if the value of their products, gross proceeds of sales, or gross income is less than $12,000 per year. This threshold was established in 1990 and is not adjusted for inflation.

Ecology must annually (in November) adjust hazardous waste and pollution prevention planning fees using the the U.S. Department of Commerce Implicit Price Deflator for Gross National Product for state and local government.

Summary of Bill (Recommended Substitute): The threshold for the exemption from annual payment of the Hazardous Waste Generation Fee is increased. Businesses generating hazardous waste are exempt from paying the fee if the value of their products, gross proceeds of sales, or gross income is less than $19,500 per year. Ecology must annually adjust the threshold for inflation in March.

Ecology must annually adjust hazardous waste and pollution prevention planning fees in March, rather than November.

The inflation benchmark will be U.S. Department of Commerce Implicit Price Deflator for Gross Domestic Product data for state and local government if available or, alternatively, data applicable to general government.

The title is changed to “an act relating to updating existing hazardous waste fees to reflect a specific price deflator” (from “an act elating to updating hazardous waste fee provisions”).

EFFECT OF CHANGES MADE BY ENVIRONMENT, WATER & ENERGY COMMITTEE (Recommended Substitute): The title is changed to “an act relating to updating existing hazardous waste fees to reflect a specific price deflator” (from “an act elating to updating hazardous waste fee provisions”). A technical change clarifies that the legislation does not reset a $35 benchmark for the Hazardous Waste Generation fee, set in 1990, from which the fee has subsequently been adjusted for inflation.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Original Bill: PRO: The threshold for requiring payment of the Hazardous Waste Generation Fee has not changed in many years. It should be raised to exempt small businesses, and Ecology should be able to update the threshold based on inflation.

Persons Testifying: PRO: K Seiler, Department of Ecology; Grant Nelson, Association of Washington Business.