BILL REQ. #:  H-1078.2 



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HOUSE BILL 1718
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State of Washington61st Legislature2009 Regular Session

By Representatives Upthegrove, Williams, Hudgins, McCoy, Dickerson, Hunt, Dunshee, and Nelson

Read first time 01/27/09.   Referred to Committee on Ecology & Parks.



     AN ACT Relating to reducing greenhouse gases in Washington; amending RCW 19.27A.020, 35.92.360, 54.16.280, 36.94.460, 70.164.020, 70.164.040, 70.164.050, 70.164.060, 36.70A.108, 36.70A.030, 84.14.020, 84.14.100, 47.66.030, 36.120.180, 43.185A.110, 43.185A.120, 43.185.050, 39.92.040, 43.82.010, 39.33.010, 47.12.063, 53.08.090, 70.44.300, 28A.335.120, 35.61.132, 35.94.040, 47.80.030, 47.80.050, 47.01.440, 47.56.830, 47.56.820, 47.56.785, 82.08.813, 70.95.010, 70.95.020, 70.95.030, 70.95.080, 70.95.090, 70.95.092, 70.95.100, 70.95.110, 70.95.167, 70.95.212, 70.95.260, 70.95.263, 70.95.285, 81.77.185, 42.56.270, 43.19A.020, 36.70A.020, 36.70A.070, 36.70A.100, 36.70A.190, 36.70A.210, 36.70A.490, 36.70A.500, 43.21C.240, 81.104.015, and 82.14.0455; amending 2005 c 296 s 6 (uncodified); reenacting and amending RCW 84.14.010; adding a new section to chapter 35.92 RCW; adding new sections to chapter 19.27A RCW; adding new sections to chapter 36.70A RCW; adding new sections to chapter 47.01 RCW; adding new sections to chapter 43.31 RCW; adding a new section to chapter 39.92 RCW; adding a new section to chapter 47.80 RCW; adding a new section to chapter 19.112 RCW; adding new sections to chapter 70.95 RCW; adding a new section to chapter 43.21C RCW; adding a new section to chapter 81.112 RCW; adding a new chapter to Title 47 RCW; adding new chapters to Title 70 RCW; creating new sections; prescribing penalties; providing effective dates; providing expiration dates; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

PART 1
Energy Efficiency and Green Building Recommendations

NEW SECTION.  Sec. 101   The legislature finds that:
     (1) Buildings have a lifespan of fifty to one hundred years during which they continually consume energy and produce carbon dioxide emissions. Existing homes, commercial buildings, and public institutions consume seventy percent of the electricity load in Washington state and account for more than thirty percent of the state's carbon dioxide emissions. Those emissions need to decline in order to meet our state's climate pollution reduction requirements in RCW 70.235.020.
     (2) Energy use in buildings is responsible for more than thirty percent of Washington's global-warming emissions. Existing buildings are far and away the region's greatest energy wasters, and thus our greatest savings opportunity.
     (3) State government can lead Washington into the clean energy economy by making public buildings models of energy efficiency, while saving public dollars.
     (4) Energy efficiency is the cheapest and fastest way to meet Washington's growing demand for electricity. A kilowatt saved is a kilowatt earned. Put another way, saving a kilowatt-hour through efficiency improvements frees up a kilowatt-hour to be used to meet our growing demand for electricity. Energy efficiency typically costs about three cents per kilowatt-hour saved compared with seven to twelve cents per kilowatt-hour for electricity generated by new power plants.
     (5) The United States population and economy are projected to grow significantly over the coming decades, increasing the desire for new buildings to meet this demand, with approximately fifteen million new buildings projected to be constructed by 2015 nationwide.
     (6) Making Washington homes and businesses more energy efficient reduces the load on our electricity grid, the energy interstate we all depend on and pay for. Washington's energy needs will grow along with predicted population growth. Everyone who pays an electricity bill broadly shares the cost of new power plants and power lines. Energy efficiency can defer and even replace the need for expensive new energy infrastructure helping to keep everyone's energy costs down and to meet projected energy demand growth.
     (7) Energy efficiency investments also create good local jobs, so when utilities, businesses, or families invest in energy efficiency, they are investing in the local community and the regional economy.
     (8) The Washington state energy code is updated every three years and reductions in energy use can be achieved by strengthening building codes for new buildings and major retrofits.
     (9) Funding for the state building code, responsible for developing, evaluating, monitoring, and adopting fire, safety, public health, and energy codes, is limited to building permit fees of four dollars and fifty cents per permit collected by local governments. The building permit fee has not changed in twenty-seven years.
     (10) Facilitating a benchmarking system that provides energy performance information for existing commercial and public buildings in the state would enable building owners and operators to better manage energy use and costs associated with those buildings.
     (11) Up-front financing for energy efficiency improvements can be a barrier to investments in energy efficiency upgrades and needs to be addressed to rapidly increase energy efficiency, to reduce energy use, and to meet our state's climate goals.
     (12) Low-income households pay a higher percentage of their income on energy bills than other households. Policies and programs should focus on increasing home weatherization and energy-conserving services to reduce energy bills.
     (13) According to the American council for an energy-efficient economy, improving buildings' energy efficiency by twenty percent by 2030 could create an estimated eight hundred thousand net jobs nationwide, and by thirty percent could create up to one million three hundred thousand net jobs.

NEW SECTION.  Sec. 102   The definitions in this section apply to sections 101 through 103 and 105 through 108 of this act and RCW 19.27A.020 unless the context clearly requires otherwise.
     (1) "Benchmark" means the energy used by a facility as recorded monthly for at least one year and the facility characteristics information inputs required for a portfolio manager.
     (2) "Conditioned space" means conditioned space, as defined in the Washington state energy code.
     (3) "Consumer-owned utility" includes a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative formed under chapter 23.86 RCW, a mutual corporation or association formed under chapter 24.06 RCW, a port district formed under Title 53 RCW, or a water-sewer district formed under Title 57 RCW, that is engaged in the business of distributing electricity to one or more retail electric customers in the state.
     (4) "Cost-effectiveness" means energy conservation measures that the investment grade audit concludes will generate savings sufficient to finance a portfolio of energy savings projects for not more than ten years.
     (5) "Council" means the state building code council.
     (6) "Department" means the department of community, trade, and economic development.
     (7) "Energy service company" has the same meaning as in RCW 43.19.670.
     (8) "General administration" means the department of general administration.
     (9) "Greenhouse gas" and "greenhouse gases" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
     (10) "Investment grade energy audit" means an intensive engineering analysis of energy conservation and management measures for the facility, net energy savings, and a cost-effectiveness determination.      (11) "Investor-owned utility" means a corporation owned by investors that meets the definition of "corporation" as defined in RCW 80.04.010 and is engaged in distributing either electricity or natural gas, or both, to more than one retail electric customer in the state.
     (12) "Major facility" means any publicly owned or leased building, or a group of such buildings at a single site, having ten thousand square feet or more of conditioned floor space.
     (13) "National energy performance rating" means the score provided by the energy star program, to indicate the energy efficiency performance of the building compared to similar buildings in that climate as defined in the United States environmental protection agency "ENERGY STAR® Performance Ratings Technical Methodology."
     (14) "Net zero energy use" means a building with net energy consumption of zero over a typical year as measured at utility. This is done in part by maximizing energy efficiency.
     (15) "Portfolio manager" means the United States environmental protection agency's energy star portfolio manager or an equivalent tool adopted by the department.
     (16) "Preliminary energy audit" means a quick evaluation by an energy service company of the energy savings potential of a building.
     (17) "Qualifying public agency" includes all state agencies, colleges, universities, and school districts.
     (18) "Qualifying utility" means a consumer-owned or investor-owned gas or electric utility that serves more than twenty-five thousand customers in the state of Washington.
     (19) "Reporting public facility" means any of the following:
     (a) A building or structure, or a group of buildings or structures at a single site, owned by a qualifying public agency, that exceed ten thousand square feet of conditioned space;
     (b) Buildings, structures, or spaces leased by a qualifying public agency that exceeds ten thousand square feet of conditioned space, where the qualifying public agency purchases energy directly from the energy provider;
     (c) A wastewater treatment facility owned by a qualifying public agency; or
     (d) Other facilities selected by the qualifying public agency.
     (20) "State portfolio manager master account" means a portfolio manager account established to provide a single shared portfolio that includes reports for all the reporting public facilities.

NEW SECTION.  Sec. 103   (1) The department shall develop and implement a strategic plan for enhancing energy efficiency in and reducing greenhouse gas emissions from homes, buildings, districts, and neighborhoods. Primarily, the strategic plan must be used to direct the future code increases in RCW 19.27A.020, with targets for new buildings similar to the architecture 2030 challenge schedule. The strategic plan will identify barriers to achieving net zero energy use in homes and buildings and identify how to overcome these barriers in updated energy codes and through complementary policies.
     (2) The department must complete and release the strategic plan to the legislature and the council by December 31, 2010, and update the plan every three years.
     (3) The strategic plan must include recommendations to the council on energy code upgrades. At a minimum, the strategic plan must:
     (a) Consider development of aspirational codes separate from the state energy code that contain economically and technically feasible optional standards that could achieve higher energy efficiency for those builders that elected to follow the optional standards in lieu of or in addition to complying with the standards set forth in the state energy code;
     (b) Determine the appropriate methodology to measure achievement of state energy code targets using the United States environmental protection agency's target finder program or equivalent methodology;
     (c) Address the need for enhanced code enforcement;
     (d) Include state strategies to support research, demonstration, and education programs designed to achieve the targets in section 105 of this act and enhance energy efficiency and on-site renewable energy production in buildings;
     (e) Develop incentives, education, training programs and certifications, particularly state-approved training or certification programs, joint apprenticeship programs, or labor-management partnership programs that train workers for energy-efficiency projects to ensure proposed programs are designed to increase building professionals' ability to design, construct, and operate buildings that meet the energy efficiency targets in section 105 of this act;
     (f) Address barriers for utilities to serve net zero energy homes and buildings and policies to overcome those barriers;
     (g) Address the limits of a prescriptive code in achieving net zero energy use homes and buildings and propose a transition to performance-based codes;
     (h) Create tax incentives, rebates, innovative or discounted financing, and nonfinancial support in motivating energy consumers to take action to increase energy efficiency and their use of on-site renewable energy. Such incentives, rebates, or financing options may consider the role of government programs as well as utility-sponsored programs;
     (i) Address the adequacy of education and technical assistance, including school curricula, technical training, and peer-to-peer exchanges for professional and trade audiences;
     (j) Develop strategies to develop and install district and neighborhood-wide energy systems that help meet net zero energy use in homes and buildings; and
     (k) Address barriers to one hundred percent carbon free energy consumption in all buildings.
     (4) The department and the council shall convene a work group to inform the initial development of the strategic plan. Membership of the work group may include, but is not limited to, representatives from:
     (a) A municipal code enforcement officer employed by a municipality;
     (b) A residential builder;
     (c) A commercial builder;
     (d) An architect licensed in the state who is accredited by a nationally recognized organization that administers credentialing programs related to environmentally sound building practices and standards, recommended by the American institute of architects Washington chapter;
     (e) A professional engineer licensed in Washington state, recommended by a statewide association of structural engineers;
     (f) A historic preservation representative, recommended by the Washington historic preservation commission, with experience implementing the state's standards for the treatment of historic properties;
     (g) A conservation group working in energy efficiency;
     (h) The Northwest power planning and conservation council;
     (i) An investor-owned utility providing electricity service;
     (j) An investor-owned utility providing natural gas service;
     (k) A public utility district;
     (l) A municipal electric utility;
     (m) An electric cooperative;
     (n) A representative of the energy services companies industry;
     (o) A representative from the legal profession;
     (p) A representative from a financial institution or entity familiar with municipal bonds;
     (q) An electrical engineer licensed in Washington state, recommended by a statewide association of electrical engineers;
     (r) A consulting design firm working on building renewable energy solutions;
     (s) A representative from a labor union representing workers in energy or building and construction industries or labor affiliates administering state-approved, joint apprenticeship programs or labor-management partnership programs that train workers for these industries;
     (t) A representative of an equipment manufacturer; and
     (u) A mechanical HVAC engineer licensed in Washington state, recommended by a statewide association of mechanical HVAC engineers.

Sec. 104   RCW 19.27A.020 and 1998 c 245 s 8 are each amended to read as follows:
     (1) ((No later than January 1, 1991,)) The state building code council shall adopt rules to be known as the Washington state energy code as part of the state building code.
     (2) The council shall follow the legislature's standards set forth in this section to adopt rules to be known as the Washington state energy code. The ((Washington)) state energy code shall be designed to:
     (a) Accelerate construction of increasingly energy efficient homes and buildings that help achieve the broader goal of building zero fossil-fuel greenhouse gas emission homes and buildings by the year 2031;
     (b) R
equire new buildings to meet a certain level of energy efficiency, but allow flexibility in building design, construction, and heating equipment efficiencies within that framework((. The Washington state energy code shall be designed to)); and
     (c) A
llow space heating equipment efficiency to offset or substitute for building envelope thermal performance.
     (3) The Washington state energy code shall take into account regional climatic conditions. Climate zone 1 shall include all counties not included in climate zone 2. Climate zone 2 includes: Adams, Chelan, Douglas, Ferry, Grant, Kittitas, Lincoln, Okanogan, Pend Oreille, Spokane, Stevens, and Whitman counties.
     (4) The Washington state energy code for residential buildings shall ((require:
     (a) New residential buildings that are space heated with electric resistance heating systems to achieve energy use equivalent to that used in typical buildings constructed with:
     (i) Ceilings insulated to a level of R-38. The code shall contain an exception which permits single rafter or joist vaulted ceilings insulated to a level of R-30 (R value includes insulation only);
     (ii) In zone 1, walls insulated to a level of R-19 (R value includes insulation only), or constructed with two by four members, R-13 insulation batts, R-3.2 insulated sheathing, and other normal assembly components; in zone 2 walls insulated to a level of R-24 (R value includes insulation only), or constructed with two by six members, R-22 insulation batts, R-3.2 insulated sheathing, and other normal construction assembly components; for the purpose of determining equivalent thermal performance, the wall U-value shall be 0.058 in zone 1 and 0.044 in zone 2;
     (iii) Below grade walls, insulated on the interior side, to a level of R-19 or, if insulated on the exterior side, to a level of R-10 in zone 1 and R-12 in zone 2 (R value includes insulation only);
     (iv) Floors over unheated spaces insulated to a level of R-30 (R value includes insulation only);
     (v) Slab on grade floors insulated to a level of R-10 at the perimeter;
     (vi) Double glazed windows with values not more than U-0.4;
     (vii) In zone 1 the glazing area may be up to twenty-one percent of floor area and in zone 2 the glazing area may be up to seventeen percent of floor area where consideration of the thermal resistance values for other building components and solar heat gains through the glazing result in thermal performance equivalent to that achieved with thermal resistance values for other components determined in accordance with the equivalent thermal performance criteria of (a) of this subsection and glazing area equal to fifteen percent of the floor area. Throughout the state for the purposes of determining equivalent thermal performance, the maximum glazing area shall be fifteen percent of the floor area; and
     (viii) Exterior doors insulated to a level of R-5; or an exterior wood door with a thermal resistance value of less than R-5 and values for other components determined in accordance with the equivalent thermal performance criteria of (a) of this subsection.
     (b) New residential buildings which are space-heated with all other forms of space heating to achieve energy use equivalent to that used in typical buildings constructed with:
     (i) Ceilings insulated to a level of R-30 in zone 1 and R-38 in zone 2 the code shall contain an exception which permits single rafter or joist vaulted ceilings insulated to a level of R-30 (R value includes insulation only);
     (ii) Walls insulated to a level of R-19 (R value includes insulation only), or constructed with two by four members, R-13 insulation batts, R-3.2 insulated sheathing, and other normal assembly components;
     (iii) Below grade walls, insulated on the interior side, to a level of R-19 or, if insulated on the exterior side, to a level of R-10 in zone 1 and R-12 in zone 2 (R value includes insulation only);
     (iv) Floors over unheated spaces insulated to a level of R-19 in zone 1 and R-30 in zone 2 (R value includes insulation only);
     (v) Slab on grade floors insulated to a level of R-10 at the perimeter;
     (vi) Heat pumps with a minimum heating season performance factor (HSPF) of 6.8 or with all other energy sources with a minimum annual fuel utilization efficiency (AFUE) of seventy-eight percent;
     (vii) Double glazed windows with values not more than U-0.65 in zone 1 and U-0.60 in zone 2. The state building code council, in consultation with the department of community, trade, and economic development, shall review these U-values, and, if economically justified for consumers, shall amend the Washington state energy code to improve the U-values by December 1, 1993. The amendment shall not take effect until July 1, 1994; and
     (viii) In zone 1, the maximum glazing area shall be twenty-one percent of the floor area. In zone 2 the maximum glazing area shall be seventeen percent of the floor area. Throughout the state for the purposes of determining equivalent thermal performance, the maximum glazing area shall be fifteen percent of the floor area.
     (c) The requirements of (b)(ii) of this subsection do not apply to residences with log or solid timber walls with a minimum average thickness of three and one-half inches and with space heat other than electric resistance.
     (d) The state building code council may approve an energy code for pilot projects of residential construction that use innovative energy efficiency technologies intended to result in savings that are greater than those realized in the levels specified in this section.
     (5) U-values for glazing shall be determined using the area weighted average of all glazing in the building. U-values for vertical glazing shall be determined, certified, and labeled in accordance with the appropriate national fenestration rating council (NFRC) standard, as determined and adopted by the state building code council. Certification of U-values shall be conducted by a certified, independent agency licensed by the NFRC. The state building code council may develop and adopt alternative methods of determining, certifying, and labeling U-values for vertical glazing that may be used by fenestration manufacturers if determined to be appropriate by the council. The state building code council shall review and consider the adoption of the NFRC standards for determining, certifying, and labeling U-values for doors and skylights when developed and published by the NFRC. The state building code council may develop and adopt appropriate alternative methods for determining, certifying, and labeling U-values for doors and skylights. U-values for doors and skylights determined, certified, and labeled in accordance with the appropriate NFRC standard shall be acceptable for compliance with the state energy code. Sealed insulation glass, where used, shall conform to, or be in the process of being tested for, ASTM E-774-81 class A or better
)) be the 2006 edition of the Washington state energy code, as amended by rule by the council.
     (((6))) (5) The minimum state energy code for new nonresidential buildings shall be the Washington state energy code, ((1986)) 2006 edition, as amended by the council by rule.
     (((7))) (6)(a) Except as provided in (b) of this subsection, the Washington state energy code for residential structures shall preempt the residential energy code of each city, town, and county in the state of Washington.
     (b) The state energy code for residential structures does not preempt a city, town, or county's energy code for residential structures which exceeds the requirements of the state energy code and which was adopted by the city, town, or county prior to March 1, 1990. Such cities, towns, or counties may not subsequently amend their energy code for residential structures to exceed the requirements adopted prior to March 1, 1990.
     (((8))) (7) The state building code council shall consult with the department of community, trade, and economic development as provided in RCW 34.05.310 prior to publication of proposed rules. ((The department of community, trade, and economic development shall review the proposed rules for consistency with the guidelines adopted in subsection (4) of this section.)) The director of the department of community, trade, and economic development shall recommend to the state building code council any changes necessary to conform the proposed rules to the requirements of this section.
     (8) The definitions in section 102 of this act apply throughout this section.

NEW SECTION.  Sec. 105   (1) The council shall adopt state energy codes that require homes and buildings constructed from 2016 through 2031 to meet the following energy efficiency targets, using the adopted 2006 Washington state energy code as a baseline:
     (a) By 2013, new homes and buildings must be designed and constructed to achieve a forty percent reduction in energy use for that building type;
     (b) By 2016, new homes and buildings must be designed and constructed to achieve a forty-five percent reduction in energy use for that building type;
     (c) By 2019, new homes and buildings must be designed and constructed to achieve a fifty percent reduction in energy use for that building type;
     (d) By 2022, new homes and buildings must be designed and constructed to achieve a fifty-five percent reduction in energy use for that building type;
     (e) By 2025, new homes and buildings must be designed and constructed to achieve a sixty percent reduction in energy use for that building type;
     (f) By 2028, new homes and buildings must be designed and constructed to achieve a sixty-five percent reduction in energy use for that building type; and
     (g) By 2031, new homes and buildings must be designed and constructed to achieve a seventy percent reduction in energy use for that building type.
     (2) If the council determines that economic, technological, or process factors would significantly impede adoption of or compliance with state energy codes incorporating the energy efficiency targets in subsection (1) of this section, the council shall report its findings to the legislature by December 31st of the year prior to the year in which those codes would otherwise be enacted under its proposed action plan.

NEW SECTION.  Sec. 106   (1) On and after January 1, 2010, qualifying utilities shall maintain records of the energy consumption data of all nonresidential and qualifying public agency buildings to which they provide service. This data must be maintained for at least the most recent twelve months in a format compatible for uploading to the portfolio manager.
     (2) On and after January 1, 2010, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, a qualifying utility shall upload all of the energy consumption data for the accounts specified for a building to the portfolio manager in a manner that preserves the confidentiality of the customers.
     (3) In carrying out the requirements of this section, a qualifying utility shall use any method for providing the specified data in order to maximize efficiency and minimize overall program cost. Qualifying utilities are encouraged to consult with the United States environmental protection agency and their customers in developing reasonable reporting options.
     (4) Disclosure of nonpublic nonresidential building performance data will be phased in as follows:
     (a) By January 1, 2011, for buildings greater than fifty thousand square feet; and
     (b) By January 1, 2012, for buildings greater than ten thousand square feet.
     (5) Based on the size guidelines in subsection (4) of this section, a property owner or operator, or their agent, of a nonresidential building shall complete and disclose the portfolio manager data and ratings for the most recent continuously occupied twelve-month period to a prospective buyer, lessee, or lender. If the data is delivered to a prospective buyer, lessee, or lender, a property owner, operator, or their agent is not required to provide additional information regarding energy consumption, and the information is deemed to be adequate to inform the prospective buyer, lessee, or lender regarding the portfolio manager data and ratings for the most recent twelve-month period for the building that is being sold, leased, financed, or refinanced.
     (6) Notwithstanding subsections (4) and (5) of this section, nothing in this section increases or decreases the duties, if any, of a property owner, operator, or their agent under this chapter or alters the duty of a seller, agent, or broker to disclose the existence of a material fact affecting the real property.

NEW SECTION.  Sec. 107   By December 31, 2009, the department shall recommend to the legislature a methodology to determine an energy performance score for residential buildings and an implementation strategy to ensure disclosure of that score at the time of sale.

NEW SECTION.  Sec. 108   (1) By July 1, 2010, each qualifying public agency shall:
     (a) Create an energy benchmark for each reporting public facility using a portfolio manager;
     (b) Report the environmental protection agency national energy performance rating for each reporting public facility included in the technical requirements for this rating; and
     (c) Link all portfolio manager accounts to the state portfolio manager master account to facilitate public reporting.
     (2) By January 1, 2010, general administration shall establish a state portfolio manager master account. The account must be designed to provide shared reporting for all reporting public facilities.
     (3) By July 1, 2010, general administration shall select a standardized portfolio manager report for reporting public facilities. General administration, in collaboration with the United States environmental protection agency, shall make the standard report of each reporting public facility available to the public through the portfolio manager web site.
     (4) General administration shall prepare a biennial report summarizing the statewide portfolio manager master account reporting data. The first report must be completed by December 1, 2012. Subsequent reporting shall be completed every two years thereafter.
     (5) By July 1, 2010, general administration shall develop a technical assistance program to facilitate the implementation of a preliminary audit and the investment grade energy audit. General administration shall design the technical assistance program to utilize no-cost audit services provided by utilities or energy services contracting companies when possible.
     (6) For each reporting public facility with a national energy performance rating score below fifty, the qualifying public agency, in consultation with general administration, shall undertake a preliminary energy audit by July 1, 2011. If potential cost-effective energy savings are identified, an investment grade energy audit must be completed by July 1, 2012. Implementation of cost-effective energy conservation measures are required by July 1, 2015. For a major facility that is leased by a state agency, college, university, or school district, energy audits and implementation of cost-effective energy conservation measures are required only for that portion of the facility that is leased by the state agency, college, university, or school district.
     (7) The state may not renew leases with buildings that have a portfolio manager score below fifty.
     (8) By July 1, 2011, general administration shall conduct a review of facilities not covered by the national energy performance rating. Based on this review, general administration shall develop a portfolio of additional facilities that require preliminary energy audits. For these facilities, the qualifying public agency, in consultation with general administration, shall undertake a preliminary energy audit by July 1, 2012. If potential cost-effective energy savings are identified, an investment grade energy audit must be completed by July 1, 2013.

NEW SECTION.  Sec. 109   A new section is added to chapter 35.92 RCW to read as follows:
     (1) A municipality may construct, purchase, acquire, add to, extend, maintain, and operate a system of conservation facilities, equipment, and programs for the conservation of energy, within or without its limits, for the purpose of providing to its inhabitants and other persons, services that lead to the more efficient consumption of energy resources, from whatever source generated, with full power to regulate and control the use, distribution, and price of such efficiency measures, and to enter into agreements for the maintenance and operation of conservation facilities under terms and conditions determined by the legislative authority of the municipality. A conservation utility may be operated as a separate utility or may be combined with an existing electric, water, wastewater, solid waste, heating or other utility operated by the municipality.
     (2) For the purposes of meeting the state's goals relating to greenhouse gas emissions in RCW 70.235.020 and reducing the state's dependence on foreign oil, the provision of conservation services and the establishment and operation of conservation utilities by a municipality under this section are declared to be a public use and a public and municipal purpose. A municipality that forms a conservation utility under this section is declared to be engaged in the sale or distribution of energy services for purposes of Article VIII, section 10 of the state Constitution, and is authorized to operate the loan programs authorized in RCW 35.92.360 or 54.16.280, as applicable.
     (3)(a) The legislative authority of the municipality has full authority to control the use, distribution, and rates or charges for energy conservation services and facilities provided to customers of the system if the rates charged are uniform for the same class of customer or service.
     (b) In classifying customers served or service furnished, the legislative authority may consider:
     (i) The difference in cost of service to the various customers;
     (ii) The location of the various customers within or without the municipality;
     (iii) The difference in cost of maintenance, operation, repair, and replacement of the various parts of the system;
     (iv) The different character of the service furnished various customers;
     (v) The quantity and quality of the conservation services furnished; and
     (vi) Any other matters that present a reasonable difference as a ground for distinction.
     (4) The legislative authority of the municipality has full authority to regulate and control the conservation services delivered, together with the right to handle and sell or lease any meters, lamps, motors, transformers, and conservation equipment or accessories of any kind, necessary and convenient for the use, distribution, and sale thereof.
     (5) The associated reductions in greenhouse gas emissions from any energy conservation services and facilities provided by the conservation utility are owned by the conservation utility unless otherwise expressly provided in the rates and charges or contracts for energy conservation.
     (6) The associated reductions in greenhouse gas emissions from any energy conservation services and facilities provided by the conservation utility may be sold by the conservation utility to:
     (a) Cities, counties, and public utility districts to mitigate the greenhouse gas emissions of those jurisdictions pursuant to the authority to purchase offsets provided in RCW 35.92.430, 36.01.250, and 54.16.390; or
     (b) Electric utilities as renewable energy credits under chapter 19.285 RCW to the extent that the reductions in greenhouse gas emissions result from a reduction in electric energy usage.
     (7) This authority is in addition to any authority granted in other law and does not limit the ability to provide conservation services through an existing electric, water, wastewater, or heating utility. The election procedures under RCW 35.92.070 and 54.08.070 and chapter 80.52 RCW or other law have no application to the formation of a conservation utility formed under this section. Nothing in this section authorizes any municipality to generate, transmit, distribute, or sell electricity. Nothing in this section may be construed to restrain or limit the authority of any individual, partnership, corporation, or private utility from establishing and providing conservation services.
     (8) For purposes of this section, "municipality" means any city, town, county, or public utility district.

Sec. 110   RCW 35.92.360 and 2002 c 276 s 2 are each amended to read as follows:
     (1) Any city or town engaged in the generation, sale, or distribution of energy is hereby authorized, within limits established by the Constitution of the state of Washington, to assist the owners of structures or equipment in financing the acquisition and installation of materials and equipment, for compensation or otherwise, for the conservation or more efficient use of energy in such structures or equipment pursuant to an energy conservation plan adopted by the city or town if the cost per unit of energy saved or produced by the use of such materials and equipment is less than the cost per unit of energy produced by the next least costly new energy resource which the city or town could acquire to meet future demand. Any financing authorized under this chapter shall only be used for conservation purposes in existing structures, and such financing shall not be used for any purpose which results in a conversion from one energy source to another.
     (2) For the purposes of this section, "conservation purposes in existing structures" may include projects to allow a municipal electric utility's customers to generate all or a portion of their own electricity through the on-site installation of a distributed electricity generation system that uses as its fuel solar, wind, geothermal, or hydropower, or other renewable resource that is available on-site and not from a commercial source. Such projects shall not be considered "a conversion from one energy source to another" which is limited to the change or substitution of one commercial energy supplier for another commercial energy supplier.
     (3) Except where otherwise authorized, such assistance shall be limited to:
     (((1))) (a) Providing an inspection of the structure or equipment, either directly or through one or more inspectors under contract, to determine and inform the owner of the estimated cost of purchasing and installing conservation materials and equipment for which financial assistance will be approved and the estimated life cycle savings in energy costs that are likely to result from the installation of such materials or equipment;
     (((2))) (b) Providing a list of businesses who sell and install such materials and equipment within or in close proximity to the service area of the city or town, each of which businesses shall have requested to be included and shall have the ability to provide the products in a workmanlike manner and to utilize such materials in accordance with the prevailing national standards((.));
     (((3))) (c) Arranging to have approved conservation materials and equipment installed by a private contractor whose bid is acceptable to the owner of the residential structure and verifying such installation; and
     (((4))) (d) Arranging or providing financing for the purchase and installation of approved conservation materials and equipment. Such materials and equipment shall be purchased from a private business and shall be installed by a private business or the owner.
     (((5))) (4) Pay back shall be in the form of incremental additions to the utility bill, billed either together with use charge or separately. Loans shall not exceed one hundred twenty months in length. The city or town may make assistance available in the form of grants made under this section for conservation improvements to existing structures owned or occupied by persons qualifying as poor or infirm consistent with the state Constitution.
     (5) The legislative authority of the city or town shall approve the aggregate amount of such loans and repayment terms by ordinance and may, by ordinance, delegate to staff to approve individual loans consistent with the terms set forth in the ordinance. The city or town and the property owner shall enter into a loan agreement setting forth the terms of the loan, which agreement may provide for acceleration in the event a loan installment is delinquent. In order to secure loans, the city or town must have a statutory lien on the property on which conservation improvements so financed are installed or constructed. The lien is paramount and superior to any other lien or encumbrance theretofore or thereafter created, except a lien for general taxes and special assessment district assessments. The loan is a lien upon property from the time the loan agreement is executed. If the legislative authority of the city or town has acted in good faith and without fraud in granting a loan, the loan is valid and enforceable as such and the lien upon the property is valid.
     (6) The city or town may foreclose a lien in an action in the superior court. All or any of the tracts subject to such a lien may be proceeded against in a single action, and all parties appearing of record as owning or claiming to own or having an interest in or lien upon the tracts involved must be impleaded in the action as parties defendant. An action to foreclose a lien must be commenced within two years after the date the loan first becomes subject to acceleration under the loan documents. Liens to secure loans may be foreclosed in the manner provided by RCW 35.67.250, 35.67.260, and 35.67.270.
     (7) Loans may be used to secure and repay general obligation or revenue bonds, notes, or other forms of indebtedness issued by or on behalf of the city or town. For the purpose of securing the payment of the principal of and interest on any bonds or notes, the city or town may create a reserve fund. The principal amount of any loan may include a proportionate share of the costs of issuing the bonds, notes, or other indebtedness, and may include up to an additional ten percent of the loan amount to fund a reserve fund.
     (8) The amendments to this section made by this act apply prospectively and do not affect the validity of any loan issued under this section prior to the effective date of this section.

Sec. 111   RCW 54.16.280 and 2002 c 276 s 3 are each amended to read as follows:
     (1) Any district is hereby authorized, within limits established by the Constitution of the state of Washington, to assist the owners of structures or equipment in financing the acquisition and installation of materials and equipment, for compensation or otherwise, for the conservation or more efficient use of energy in such structures or equipment pursuant to an energy conservation plan adopted by the district if the cost per unit of energy saved or produced by the use of such materials and equipment is less than the cost per unit of energy produced by the next least costly new energy resource which the district could acquire to meet future demand. Any financing authorized under this chapter shall only be used for conservation purposes in existing structures, and such financing shall not be used for any purpose which results in a conversion from one energy source to another.
     (2) For the purposes of this section, "conservation purposes in existing structures" may include projects to allow a district's customers to generate all or a portion of their own electricity through the on-site installation of a distributed electricity generation system that uses as its fuel solar, wind, geothermal, or hydropower, or other renewable resource that is available on-site and not from a commercial source. Such projects shall not be considered "a conversion from one energy source to another" which is limited to the change or substitution of one commercial energy supplier for another commercial energy supplier.
     (3) Except where otherwise authorized, such assistance shall be limited to:
     (((1))) (a) Providing an inspection of the structure or equipment, either directly or through one or more inspectors under contract, to determine and inform the owner of the estimated cost of purchasing and installing conservation materials and equipment for which financial assistance will be approved and the estimated life cycle savings in energy costs that are likely to result from the installation of such materials or equipment;
     (((2))) (b) Providing a list of businesses who sell and install such materials and equipment within or in close proximity to the service area of the district, each of which businesses shall have requested to be included and shall have the ability to provide the products in a workmanlike manner and to utilize such materials in accordance with the prevailing national standards((.));
     (((3))) (c) Arranging to have approved conservation materials and equipment installed by a private contractor whose bid is acceptable to the owner of the residential structure and verifying such installation; and
     (((4))) (d) Arranging or providing financing for the purchase and installation of approved conservation materials and equipment. Such materials and equipment shall be purchased from a private business and shall be installed by a private business or the owner.
     (((5))) (4) Pay back shall be in the form of incremental additions to the utility bill, billed either together with use charge or separately. Loans shall not exceed one hundred twenty months in length. The district may make assistance available in the form of grants made under this section for conservation improvements to existing structures owned or occupied by persons qualifying as poor or infirm consistent with the state Constitution.
     (5) The legislative authority of the district shall approve the aggregate amount of such loans and repayment terms by ordinance and may, by ordinance, delegate to staff to approve individual loans consistent with the terms set forth in the ordinance. The district and the property owner shall enter into a loan agreement setting forth the terms of the loan, which agreement may provide for acceleration in the event a loan installment is delinquent. In order to secure loans, the district must have a statutory lien on the property on which conservation improvements so financed are installed or constructed. The lien is paramount and superior to any other lien or encumbrance theretofore or thereafter created, except a lien for general taxes and special assessment district assessments. The loan is a lien upon property from the time the loan agreement is executed. If the legislative authority of the district has acted in good faith and without fraud in granting a loan, the loan is valid and enforceable as such and the lien upon the property is valid.
     (6) The district may foreclose a lien in an action in the superior court. All or any of the tracts subject to such a lien may be proceeded against in a single action, and all parties appearing of record as owning or claiming to own or having an interest in or lien upon the tracts involved must be impleaded in the action as parties defendant. An action to foreclose a lien must be commenced within two years after the date the loan first becomes subject to acceleration under the loan documents. Liens to secure loans may be foreclosed in the manner provided by RCW 35.67.250, 35.67.260, and 35.67.270.
     (7) Loans may be used to secure and repay general obligation or revenue bonds, notes, or other forms of indebtedness issued by or on behalf of the city or town. For the purpose of securing the payment of the principal of and interest on any bonds or notes, the district may create a reserve fund. The principal amount of any loan may include a proportionate share of the costs of issuing the bonds, notes, or other indebtedness, and may include up to an additional ten percent of the loan amount to fund a reserve fund.
     (8) The amendments to this section made by this act apply prospectively and do not affect the validity of any loan issued under this section prior to the effective date of this section.

Sec. 112   RCW 36.94.460 and 1992 c 25 s 3 are each amended to read as follows:
     (1) Any county engaged in the sale or distribution of water or in the sale and distribution of energy services through an energy conservation utility formed under section 109 of this act, is hereby authorized, within limits established by the Constitution of the state of Washington, to assist the owners of structures that are provided water or energy conservation services by the county in financing the acquisition and installation of fixtures, systems, and equipment, for compensation or otherwise, for the conservation or more efficient use of water or energy in the structures under a water or energy conservation plan adopted by the county if the cost per unit of water saved or conserved by the use of the fixtures, systems, and equipment is less than the cost per unit of water supplied by the next least costly new water source available to the county to meet future demand.
     (2) Except where otherwise authorized, assistance shall be limited to:
     (((1))) (a) Providing an inspection of the structure, either directly or through one or more inspectors under contract, to determine and inform the owner of the estimated cost of purchasing and installing conservation fixtures, systems, and equipment for which financial assistance will be approved and the estimated life cycle savings to the water system and the consumer that are likely to result from the installation of the fixtures, systems, or equipment;
     (((2))) (b) Providing a list of businesses that sell and install the fixtures, systems, and equipment within or in close proximity to the service area of the county, each of which businesses shall have requested to be included and shall have the ability to provide the products in a workmanlike manner and to utilize the fixtures, systems, and equipment in accordance with the prevailing national standards;
     (((3))) (c) Arranging to have approved conservation fixtures, systems, and equipment installed by a private contractor whose bid is acceptable to the owner of the structure and verifying the installation; and
     (((4))) (d) Arranging or providing financing for the purchase and installation of approved conservation fixtures, systems, and equipment. The fixtures, systems, and equipment shall be purchased or installed by a private business, the owner, or the utility.
     (3) Pay back shall be in the form of incremental additions to the utility bill, billed either together with (([the])) the use charge or separately. Loans shall not exceed one hundred twenty months in length. The county may make assistance available in the form of grants made under this section for conservation improvements to existing structures owned or occupied by persons qualifying as poor or infirm consistent with the state Constitution.
     (4) The legislative authority of the county shall approve the aggregate amount of such loans and repayment terms by ordinance and may, by ordinance, delegate to staff to approve individual loans consistent with the terms set forth in the ordinance. The county and the property owner shall enter into a loan agreement setting forth the terms of the loan, which agreement may provide for acceleration in the event a loan installment is delinquent. In order to secure loans, the county must have a statutory lien on the property on which conservation improvements so financed are installed or constructed. The lien is paramount and superior to any other lien or encumbrance theretofore or thereafter created, except a lien for general taxes and special assessment district assessments. The loan is a lien upon property from the time the loan agreement is executed. If the legislative authority of the county has acted in good faith and without fraud in granting a loan, the loan is valid and enforceable as such and the lien upon the property is valid.
     (5) The county may foreclose a lien in an action in the superior court. All or any of the tracts subject to such a lien may be proceeded against in a single action, and all parties appearing of record as owning or claiming to own or having an interest in or lien upon the tracts involved must be impleaded in the action as parties defendant. An action to foreclose a lien must be commenced within two years after the date the loan first becomes subject to acceleration under the loan documents. Liens to secure loans may be foreclosed in the manner provided by RCW 35.67.250, 35.67.260, and 35.67.270.
     (6) Loans may be used to secure and repay general obligation or revenue bonds, notes, or other forms of indebtedness issued by or on behalf of the city or town. For the purpose of securing the payment of the principal of and interest on any bonds or notes, the county may create a reserve fund. The principal amount of any loan may include a proportionate share of the costs of issuing the bonds, notes, or other indebtedness, and may include up to an additional ten percent of the loan amount to fund a reserve fund.
     (7) The amendments made to this section by this act apply prospectively and do not affect the validity of any loan issued under this section prior to the effective date of this section.

Sec. 113   RCW 70.164.020 and 1995 c 399 s 199 are each amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Department" means the department of community, trade, and economic development.
     (2) "Energy ((assessment)) audit" means an analysis of a dwelling unit to determine the need for cost-effective energy conservation measures as determined by the department.
     (3) "Household" means an individual or group of individuals living in a dwelling unit as defined by the department.
     (4) "Low income" means household income ((that is at or below one hundred twenty-five percent of the federally established poverty level)) as defined by the department.
     (5) "Nonutility sponsor" means any sponsor other than a public service company, municipality, public utility district, mutual or cooperative, furnishing gas or electricity used to heat low-income residences.
     (6) "Residence" means a dwelling unit as defined by the department.
     (7) "Sponsor" means any entity that submits a proposal under RCW 70.164.040, including but not limited to any local community action agency, tribal nation, community service agency, or any other participating agency or any public service company, municipality, public utility district, mutual or cooperative, or any combination of such entities that jointly submits a proposal.
     (8) "Sponsor match" means the share((, if any,)) of the cost of weatherization to be paid by the sponsor.
     (9) "Sustainable residential weatherization" or "weatherization" means ((materials or measures, and their installation, that are used to improve the thermal efficiency of a residence)) using funds administered by the department to preserve a dwelling unit occupied by a low-income household for activities and materials that result in energy and resource conservation and energy efficiency improvements; repair, indoor air quality, and health and safety investments; and client education. To the extent feasible, funds must be used to support and advance sustainable technologies.
     (10) "Weatherizing agency" means any approved department grantee, tribal nation, or any public service company, municipality, public utility district, mutual or cooperative, or other entity that bears the responsibility for ensuring the performance of weatherization of residences under this chapter and has been approved by the department.

Sec. 114   RCW 70.164.040 and 1987 c 36 s 4 are each amended to read as follows:
     (1) The department shall solicit proposals for low-income weatherization programs from potential sponsors. A proposal shall state the amount of the sponsor match, the amount requested ((from the low-income weatherization assistance account)), the name of the weatherizing agency, and any other information required by the department.
     (2)(a) A sponsor may use its own moneys, including corporate or ratepayer moneys, or moneys provided by landlords, charitable groups, government programs, the Bonneville Power Administration, or other sources to pay the sponsor match.
     (b) Moneys provided by a sponsor pursuant to requirements in this section shall be in addition to and shall not supplant any funding for low-income weatherization that would otherwise have been provided by the sponsor or any other entity enumerated in (a) of this subsection.
     (c) No proposal may require any contribution as a condition of weatherization from any household whose residence is weatherized under the proposal.
     (d) Proposals shall provide that full levels of all cost-effective, structurally feasible, sustainable residential weatherization materials, measures, and practices, as determined by the department, shall be installed when a low-income residence is weatherized.
     (3)(a) The department may in its discretion accept, accept in part, or reject proposals submitted. The department shall allocate funds appropriated from the low-income weatherization assistance account among proposals accepted or accepted in part so as to:
     (i) A
chieve the greatest possible expected monetary and energy savings by low-income households and other energy consumers ((and)) over the longest period of time;
     (ii) Identify and correct, to the extent practical, health and safety problems for residents of low-income households; and
     (iii) Leverage, to the extent feasible, environmentally friendly sustainable technologies, practices, and designs.
     (b) The department
shall, to the extent feasible, ensure a balance of participation in proportion to population among low-income households for: (((a))) (i) Geographic regions in the state; (((b))) (ii) types of fuel used for heating, except that the department shall encourage the use of energy efficient sustainable technologies; (((c))) (iii) owner-occupied and rental residences; and (((d))) (iv) single-family and multifamily dwellings.
     (c) The department may allocate funds to a nonutility sponsor without requiring a sponsor match if the department determines that such an allocation is necessary to provide the greatest benefits to low-income residents of the state.
     (4)(a) A sponsor may elect to: (i) Pay a sponsor match as a lump sum at the time of weatherization, or (ii) make yearly payments to the low-income weatherization assistance account over a period not to exceed ten years. If a sponsor elects to make yearly payments, the value of the payments shall not be less than the value of the lump sum payment that would have been made under (a)(i) of this subsection.
     (b) The department may permit a sponsor to meet its match requirement in whole or in part through providing labor, materials, or other in-kind expenditures.
     (5) The department shall adopt rules to carry out this section.

Sec. 115   RCW 70.164.050 and 1987 c 36 s 5 are each amended to read as follows:
     (1) The department is responsible for ensuring that sponsors and weatherizing agencies comply with the state laws, the department's rules, and the sponsor's proposal in carrying out proposals.
     (2) Before a residence is weatherized, the department shall require that an energy ((assessment)) audit be conducted.

Sec. 116   RCW 70.164.060 and 1987 c 36 s 6 are each amended to read as follows:
     Before a leased or rented residence is weatherized, written permission shall be obtained from the owner of the residence for the weatherization. The department shall adopt rules to ensure that: (1) The benefits of weatherization assistance ((in connection with a leased or rented residence)), including utility bill reduction, and preservation of affordable housing stock, accrue primarily to low-income tenants occupying a leased or rented residence; (2) as a result of weatherization provided under this chapter, the rent on the residence is not increased and the tenant is not evicted; and (3) as a result of weatherization provided under this chapter, no undue or excessive enhancement occurs in the value of the residence. This section is in the public interest and any violation by a landlord of the rules adopted under this section shall be an act in trade or commerce violating chapter 19.86 RCW, the consumer protection act.

NEW SECTION.  Sec. 117   Sections 102, 103, and 105 through 108 of this act are each added to chapter 19.27A RCW.

PART 2
Transportation Recommendations

Sec. 201   RCW 36.70A.108 and 2005 c 328 s 1 are each amended to read as follows:
     (1) The transportation element required by RCW 36.70A.070 may include, in addition to improvements or strategies to accommodate the impacts of development authorized under RCW 36.70A.070(6)(b), multimodal transportation improvements or strategies that are made concurrent with the development. These transportation improvements or strategies may include, but are not limited to, measures implementing or evaluating:
     (a) Multiple modes of transportation with peak and nonpeak hour capacity performance standards for locally owned transportation facilities; ((and))
     (b) Modal performance standards meeting the peak and nonpeak hour capacity performance standards; and
     (c) Transit-oriented development or other compact development strategies. For purposes of this subsection (1)(c) the following definitions apply:
     (i) "Compact development" means an area designated for mixed-use, higher density development patterns that encourage walking, bicycling, and plans for a multimodal network that may include transit services and facilities; and
     (ii) "Transit-oriented development" means a type of compact development that provides compact, walkable communities with densities that support transit service and have convenient access to transit systems with frequent peak travel period service
.
     (2) The transportation element required by RCW 36.70A.070 must include, in addition to improvements or strategies to accommodate the impacts of development authorized under RCW 36.70A.070(6)(b), a plan to promote compact and transit-oriented development as provided in section 202 of this act.
     (3)
Nothing in this section or RCW 36.70A.070(6)(b) shall be construed as prohibiting a county or city planning under RCW 36.70A.040 from exercising existing authority to develop multimodal improvements or strategies to satisfy the concurrency requirements of this chapter.
     (((3))) (4) Nothing in this section is intended to affect or otherwise modify the authority of jurisdictions planning under RCW 36.70A.040.

NEW SECTION.  Sec. 202   A new section is added to chapter 36.70A RCW to read as follows:
     (1) In order to satisfy the transportation element requirements of RCW 36.70A.070 and the requirement to promote compact and transit-oriented development in RCW 36.70A.108, the applicable city or county must satisfy the criteria of compact and transit-oriented development outlined in this section.
     (2) A satisfactory compact and transit-oriented development plan must include at least the following features:
     (a) Street facilities for walking and bicycling, such as sidewalks and bike lanes;
     (b) High employment and residential densities, no less than eight units per acre, sited within a ten minute walking circle around the center of the compact and transit-oriented development, which has, or is planned to have, a transit station or transit access;
     (c) Transit access and transit facilities designed with transit headways of fifteen minutes or less;
     (d) Street connectivity and traffic calming features designed to control vehicle speeds, including average block perimeters of no greater than one thousand three hundred fifty feet;
     (e) Mixed-use development that includes retail, commercial, office, and residential, with different types and affordability levels, in a design that encourages walking or biking;
     (f) Parking management efforts designed to reduce the land devoted to parking and that charges full market rates for parking privileges;
     (g) Plans to provide subsidized housing within the compact and transit-oriented development for low-income residents who are displaced during the transition to compact and transit-oriented development;
     (h) Facilitation of bike and car-sharing programs;
     (i) Building, street, and amenity designs that encourage biking and walking; and
     (j) When appropriate, the identification of urban brownfields that may be utilized as a component of a compact and transit-oriented development.

Sec. 203   RCW 36.70A.030 and 2005 c 423 s 2 are each amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.
     (2) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish in upland hatcheries, or livestock, and that has long-term commercial significance for agricultural production.
     (3) "City" means any city or town, including a code city.
     (4) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.
     (5) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas.
     (6) "Department" means the department of community, trade, and economic development.
     (7) "Development regulations" or "regulation" means the controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances together with any amendments thereto. A development regulation does not include a decision to approve a project permit application, as defined in RCW 36.70B.020, even though the decision may be expressed in a resolution or ordinance of the legislative body of the county or city.
     (8) "Forest land" means land primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, and that has long-term commercial significance. In determining whether forest land is primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, the following factors shall be considered: (a) The proximity of the land to urban, suburban, and rural settlements; (b) surrounding parcel size and the compatibility and intensity of adjacent and nearby land uses; (c) long-term local economic conditions that affect the ability to manage for timber production; and (d) the availability of public facilities and services conducive to conversion of forest land to other uses.
     (9) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.
     (10) "Headway" means the time between two vehicles passing the same point traveling in the same direction on a given route.
     (11)
"Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.
     (((11))) (12) "Minerals" include gravel, sand, and valuable metallic substances.
     (((12))) (13) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.
     (((13))) (14) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.
     (((14))) (15) "Recreational land" means land so designated under RCW 36.70A.1701 and that, immediately prior to this designation, was designated as agricultural land of long-term commercial significance under RCW 36.70A.170. Recreational land must have playing fields and supporting facilities existing before July 1, 2004, for sports played on grass playing fields.
     (((15))) (16) "Rural character" refers to the patterns of land use and development established by a county in the rural element of its comprehensive plan:
     (a) In which open space, the natural landscape, and vegetation predominate over the built environment;
     (b) That foster traditional rural lifestyles, rural-based economies, and opportunities to both live and work in rural areas;
     (c) That provide visual landscapes that are traditionally found in rural areas and communities;
     (d) That are compatible with the use of the land by wildlife and for fish and wildlife habitat;
     (e) That reduce the inappropriate conversion of undeveloped land into sprawling, low-density development;
     (f) That generally do not require the extension of urban governmental services; and
     (g) That are consistent with the protection of natural surface water flows and groundwater and surface water recharge and discharge areas.
     (((16))) (17) "Rural development" refers to development outside the urban growth area and outside agricultural, forest, and mineral resource lands designated pursuant to RCW 36.70A.170. Rural development can consist of a variety of uses and residential densities, including clustered residential development, at levels that are consistent with the preservation of rural character and the requirements of the rural element. Rural development does not refer to agriculture or forestry activities that may be conducted in rural areas.
     (((17))) (18) "Rural governmental services" or "rural services" include those public services and public facilities historically and typically delivered at an intensity usually found in rural areas, and may include domestic water systems, fire and police protection services, transportation and public transit services, and other public utilities associated with rural development and normally not associated with urban areas. Rural services do not include storm or sanitary sewers, except as otherwise authorized by RCW 36.70A.110(4).
     (((18))) (19) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural uses, rural development, and natural resource lands designated pursuant to RCW 36.70A.170. A pattern of more intensive rural development, as provided in RCW 36.70A.070(5)(d), is not urban growth. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.
     (((19))) (20) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.
     (((20))) (21) "Urban governmental services" or "urban services" include those public services and public facilities at an intensity historically and typically provided in cities, specifically including storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with rural areas.
     (((21))) (22) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities, or those wetlands created after July 1, 1990, that were unintentionally created as a result of the construction of a road, street, or highway. Wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands.

NEW SECTION.  Sec. 204   A new section is added to chapter 36.70A RCW to read as follows:
     The department shall have the responsibility to clarify land aggregation tools and concurrency options for use in compact and transit-oriented developments outlined in section 202 of this act. The department shall also offer resources that support community discussions regarding the role of compact and transit-oriented developments in sustainable communities.

Sec. 205   RCW 84.14.010 and 2007 c 430 s 3 and 2007 c 185 s 1 are each reenacted and amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Campus facilities master plan" means the area that is defined by the University of Washington as necessary for the future growth and development of its campus facilities for branch campuses authorized under RCW 28B.45.020.
     (2) "City" means either (a) a city or town with a population of at least fifteen thousand, (b) the largest city or town, if there is no city or town with a population of at least fifteen thousand, located in a county planning under the growth management act, or (c) a city or town with a population of at least five thousand located in a county subject to the provisions of RCW 36.70A.215, or, only when relating to compact and transit-oriented development, a city or town of any size.
     (3) "Affordable housing" means residential housing that is rented by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income. For the purposes of housing intended for owner occupancy, "affordable housing" means residential housing that is within the means of low or moderate-income households.
     (4) "Compact and transit-oriented development" means a land use development that satisfies the criteria provided in section 202 of this act.
     (5)
"Household" means a single person, family, or unrelated persons living together.
     (((5))) (6) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below eighty percent of the median family income adjusted for family size, for the county where the project is located, as reported by the United States department of housing and urban development. For cities located in high-cost areas, "low-income household" means a household that has an income at or below one hundred percent of the median family income adjusted for family size, for the county where the project is located.
     (((6))) (7) "Moderate-income household" means a single person, family, or unrelated persons living together whose adjusted income is more than eighty percent but is at or below one hundred fifteen percent of the median family income adjusted for family size, for the county where the project is located, as reported by the United States department of housing and urban development. For cities located in high-cost areas, "moderate-income household" means a household that has an income that is more than one hundred percent, but at or below one hundred fifty percent, of the median family income adjusted for family size, for the county where the project is located.
     (((7))) (8) "High cost area" means a county where the third quarter median house price for the previous year as reported by the Washington center for real estate research at Washington State University is equal to or greater than one hundred thirty percent of the statewide median house price published during the same time period.
     (((8))) (9) "Governing authority" means the local legislative authority of a city having jurisdiction over the property for which an exemption may be applied for under this chapter.
     (((9))) (10) "Growth management act" means chapter 36.70A RCW.
     (((10))) (11) "Multiple-unit housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing.
     (((11))) (12) "Owner" means the property owner of record.
     (((12))) (13) "Permanent residential occupancy" means multiunit housing that provides either rental or owner occupancy on a nontransient basis. This includes owner-occupied or rental accommodation that is leased for a period of at least one month. This excludes hotels and motels that predominately offer rental accommodation on a daily or weekly basis.
     (((13))) (14) "Rehabilitation improvements" means modifications to existing structures, that are vacant for twelve months or longer, that are made to achieve a condition of substantial compliance with existing building codes or modification to existing occupied structures which increase the number of multifamily housing units.
     (((14))) (15) "Residential targeted area" means an area within an urban center that has been designated by the governing authority as a residential targeted area in accordance with this chapter. With respect to designations after July 1, 2007, "residential targeted area" may not include a campus facilities master plan.
     (((15))) (16) "Substantial compliance" means compliance with local building or housing code requirements that are typically required for rehabilitation as opposed to new construction.
     (((16))) (17) "Urban center" means a compact identifiable district where urban residents may obtain a variety of products and services. An urban center must contain:
     (a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies;
     (b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and
     (c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use.

Sec. 206   RCW 84.14.020 and 2007 c 430 s 4 are each amended to read as follows:
     (1)(a) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows:
     (i) For properties for which applications for certificates of tax exemption eligibility are submitted under this chapter ((84.14 RCW)) before July 22, 2007, the value is exempt for ten successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate; and
     (ii) For properties for which applications for certificates of tax exemption eligibility are submitted under this chapter ((84.14 RCW)) on or after July 22, 2007, the value is exempt:
     (A) For eight successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate; or
     (B) For twelve successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter ((84.14 RCW)) and meets the conditions in this subsection (1)(a)(ii)(B). For the property to qualify for the twelve-year exemption under this subsection, the applicant must commit to building a compact and transit-oriented development or renting or selling at least twenty percent of the multifamily housing units as affordable housing units to low and moderate-income households, and the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the local government under this chapter. In the case of projects intended exclusively for owner occupancy, the minimum requirement of this subsection (1)(a)(ii)(B) may be satisfied solely through housing affordable to moderate-income households.
     (b) The exemptions provided in (a)(i) and (ii) of this subsection do not include the value of land or, except for compact and transit-oriented development, nonhousing-related improvements not qualifying under this chapter.
     (2) When a local government adopts guidelines pursuant to RCW 84.14.030(2) and includes conditions that must be satisfied with respect to individual dwelling units, rather than with respect to the multiple-unit housing as a whole or some minimum portion thereof, the exemption may, at the local government's discretion, be limited to the value of the qualifying improvements allocable to those dwelling units that meet the local guidelines.
     (3) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter. The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.
     (4) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.
     (5) At the conclusion of the exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purposes of chapter 84.55 RCW.

Sec. 207   RCW 84.14.100 and 2007 c 430 s 10 are each amended to read as follows:
     (1) Thirty days after the anniversary of the date of the certificate of tax exemption and each year for the tax exemption period, the owner of the rehabilitated or newly constructed property shall file with a designated authorized representative of the city an annual report indicating the following:
     (a) A statement of occupancy and vacancy of the rehabilitated or newly constructed property during the twelve months ending with the anniversary date;
     (b) A certification by the owner that the property has not changed use and, if applicable, that the property has been in compliance with the affordable housing requirements as described in RCW 84.14.020 since the date of the certificate approved by the city;
     (c) A description of changes or improvements constructed after issuance of the certificate of tax exemption; and
     (d) Any additional information requested by the city in regards to the units receiving a tax exemption.
     (2) All cities, which issue certificates of tax exemption for multiunit housing or compact and transit-oriented development that conform to the requirements of this chapter, shall report annually by December 31st of each year, beginning in 2007, to the department of community, trade, and economic development. The report must include the following information, when applicable:
     (a) The number of tax exemption certificates granted;
     (b) The total number and type of units produced or to be produced;
     (c) The number and type of units produced or to be produced meeting affordable housing requirements;
     (d) The actual development cost of each unit produced;
     (e) The total monthly rent or total sale amount of each unit produced;
     (f) The income of each renter household at the time of initial occupancy and the income of each initial purchaser of owner-occupied
units at the time of purchase for each of the units receiving a tax exemption and a summary of these figures for the city; and
     (g) The value of the tax exemption for each project receiving a tax exemption and the total value of tax exemptions granted.

NEW SECTION.  Sec. 208   A new section is added to chapter 47.01 RCW to read as follows:
     Unless otherwise constricted by a more specific state or federal law, the department shall give priority consideration to any applicant or project that forwards the criteria of compact and transit-oriented development provided in section 202 of this act in any grant program or other program that directs or permits the department to provide funding to local governments.

Sec. 209   RCW 47.66.030 and 2005 c 318 s 4 are each amended to read as follows:
     (1) The department shall establish a regional mobility grant program. The purpose of the grant program is to aid local governments in funding projects such as intercounty connectivity service, park and ride lots, rush hour transit service, and capital projects that improve the connectivity and efficiency of our transportation system. The department shall identify cost-effective projects that reduce delay for people and goods and improve connectivity between counties and regional population centers, with a preference given to projects that forward the criteria of compact and transit-oriented development provided in section 202 of this act. The department shall submit a prioritized list of all projects requesting funding to the legislature by December 1st of each year.
     (2) The department may establish an advisory committee to carry out the mandates of this chapter.
     (3) The department must report annually to the transportation committees of the legislature on the status of any grants projects funded by the program created under this section.

Sec. 210   RCW 36.120.180 and 2002 c 56 s 118 are each amended to read as follows:
     The legislature finds that regional solutions to the state's transportation needs are of paramount concern. The legislature further recognizes that different areas of the state will need the flexibility to fashion local solutions to their transportation problems, and that regional transportation systems may evolve over time. Areas of the state outside of King, Snohomish, and Pierce counties are eligible for grants from the state of no more than two hundred thousand dollars each to study and develop regional transportation models. Regions receiving these grants shall:
     (1) Develop a model that can be used within their region to select, fund, and administer regional transportation solutions that include an element that forwards the criteria of compact and transit-oriented development provided in section 202 of this act;
     (2) Adopt a county resolution approving the model proposed;
     (3) Form interlocal agreements among counties as appropriate;
     (4) Report to the transportation committees in the senate and house of representatives, petitioning the legislature to grant them authority to implement their proposed model.

NEW SECTION.  Sec. 211   A new section is added to chapter 43.31 RCW to read as follows:
     Unless otherwise constricted by a more specific state or federal law, the department shall give priority consideration to any applicant or project that forwards the criteria of compact and transit-oriented development provided in section 202 of this act in any grant program or other program that directs or permits the department to provide funding.

Sec. 212   RCW 43.185A.110 and 2008 c 112 s 1 are each amended to read as follows:
     (1) The affordable housing land acquisition revolving loan fund program is created in the department to assist eligible organizations, described under RCW 43.185A.040, to purchase land for affordable housing development. The department shall contract with the Washington state housing finance commission to administer the affordable housing land acquisition revolving loan fund program. Within this program, the Washington state housing finance commission shall establish and administer the Washington state housing finance commission land acquisition revolving loan fund.
     (2) As used in this chapter, "market rate" means the current average market interest rate that is determined at the time any individual loan is closed upon using a widely recognized current market interest rate measurement to be selected for use by the Washington state housing finance commission with the department's approval. This interest rate must be noted in an attachment to the closing documents for each loan.
     (3) Under the affordable housing land acquisition revolving loan fund program:
     (a) Loans may be made to purchase land on which to develop affordable housing. In addition to affordable housing, facilities intended to provide supportive services to affordable housing residents and low-income households in the nearby community may be developed on the land.
     (b) Eligible organizations applying for a loan must include in the loan application a proposed affordable housing development plan indicating the number of affordable housing units planned, a description of any other facilities being considered for the property, and an estimated timeline for completion of the development. The Washington state housing finance commission may require additional information from loan applicants and may consider the efficient use of land, project readiness, organizational capacity, and other factors as criteria in awarding loans.
     (c) Forty percent of the loans shall go to eligible applicants operating homeownership programs for low-income households in which the households participate in the construction of their homes. Sixty percent of loans shall go to other eligible organizations. If the entire forty percent for applicants operating self-help homeownership programs cannot be lent to these types of applicants, the remainder shall be lent to other eligible organizations.
     (d) Within five years of receiving a loan, a loan recipient must present the Washington state housing finance commission with an updated development plan, including a proposed development design, committed and anticipated additional financial resources to be dedicated to the development, and an estimated development schedule, which indicates completion of the development within eight years of loan receipt. This updated development plan must be substantially consistent with the development plan submitted as part of the original loan application as required in (b) of this subsection.
     (e) Within eight years of receiving a loan, a loan recipient must develop affordable housing on the property for which the loan was made and place the affordable housing into service.
     (f) A loan recipient must preserve the affordable rental housing developed on the property acquired under this section as affordable housing for a minimum of thirty years.
     (4) If a loan recipient does not place affordable housing into service on a property for which a loan has been received under this section within the eight-year period specified in subsection (3)(e) of this section, or if a loan recipient fails to use the property for the intended affordable housing purpose consistent with the loan recipient's original affordable housing development plan, then the loan recipient must pay to the Washington state housing finance commission an amount consisting of the principal of the original loan plus compounded interest calculated at the current market rate. The Washington state housing finance commission shall develop guidelines for the time period in which this repayment must take place, which must be noted in the original loan agreement. The Washington state housing finance commission may grant a partial or total exemption from this repayment requirement if it determines that a development is substantially complete or that the property has been substantially used in keeping with the original affordable housing purpose of the loan. Any repayment funds received as a result of noncompliance with loan requirements shall be deposited into the Washington state housing finance commission land acquisition revolving loan fund for the purposes of the affordable housing land acquisition revolving loan fund program.
     (5) The Washington state housing finance commission, with approval from the department, may adopt guidelines and requirements that are necessary to administer the affordable housing land acquisition revolving loan fund program. In adopting guidelines, preferences in awards must be provided to applicants with proposals that forward the criteria of compact and transit-oriented development provided in section 202 of this act.
     (6) Interest rates on property loans granted under this section may not exceed one percent. All loan repayment moneys received shall be deposited into the Washington state housing finance commission affordable housing land acquisition revolving loan fund for the purposes of the affordable housing land acquisition revolving loan fund program.
     (7) The Washington state housing finance commission must develop performance measures for the program, which must be approved by the department, including, at a minimum, measures related to:
     (a) The ability of eligible organizations to access land for affordable housing development;
     (b) The total number of dwelling units by housing type and the total number of low-income households and persons served; and
     (c) The financial efficiency of the program as demonstrated by factors, including the cost per unit developed for affordable housing units in different areas of the state and a measure of the effective use of funds to produce the greatest number of units for low-income households.
     (8) By December 1st of each year, beginning in 2007, the Washington state housing finance commission shall report to the department and the appropriate committees of the legislature using, at a minimum, the performance measures developed under subsection (7) of this section.

Sec. 213   RCW 43.185A.120 and 2008 c 112 s 2 are each amended to read as follows:
     (1) The affordable housing and community facilities rapid response loan program is created in the department to assist eligible organizations, described under RCW 43.185A.040, to purchase land or real property for affordable housing and community facilities preservation or development in rapidly gentrifying neighborhoods or communities with a significant low-income population that is threatened with displacement by such gentrification. The department shall contract with the Washington state housing finance commission to establish and administer the program.
     (2) Loans or grants may be made through the affordable housing and community facilities rapid response loan program to purchase land or real property for the preservation or development of affordable housing or community facilities, including reasonable costs and fees.
     (3) The Washington state housing finance commission, with approval from the department, may adopt guidelines and requirements that are necessary to administer the affordable housing and community facilities rapid response loan program. In adopting guidelines, preferences in awards must be provided to applicants with proposals that forward the criteria of compact and transit-oriented development provided in section 202 of this act.
     (4) A loan or grant recipient must preserve affordable rental housing acquired or developed under this section as affordable housing for a minimum of thirty years.
     (5) Interest rates on loans made under this section may be as low as zero percent but may not exceed three percent. All loan repayment moneys received must be deposited into a program account established by the Washington state housing finance commission for the purpose of making new loans and grants under this section.
     (6) By December 1st of each year, beginning in 2008, the Washington state housing finance commission shall report to the department and the appropriate committees of the legislature: The number of loans and grants that were made in the program; for what purposes the loans and grants were made; to whom the loans and grants were made; and when the loans are expected to be paid back.

Sec. 214   RCW 43.185.050 and 2006 c 371 s 236 are each amended to read as follows:
     (1) The department shall use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loans or grant projects that will provide housing for persons and families with special housing needs and with incomes at or below fifty percent of the median family income for the county or standard metropolitan statistical area where the project is located, with preferences in awards provided to applicants with proposals that forward the criteria of compact and transit-oriented development provided in section 202 of this act. At least thirty percent of these moneys used in any given funding cycle shall be for the benefit of projects located in rural areas of the state as defined by the department. If the department determines that it has not received an adequate number of suitable applications for rural projects during any given funding cycle, the department may allocate unused moneys for projects in nonrural areas of the state.
     (2) Activities eligible for assistance from the housing trust fund and other legislative appropriations include, but are not limited to:
     (a) New construction, rehabilitation, or acquisition of low and very low-income housing units;
     (b) Rent subsidies;
     (c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;
     (d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;
     (e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;
     (f) Shelters and related services for the homeless, including emergency shelters and overnight youth shelters;
     (g) Mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;
     (h) Mortgage insurance guarantee or payments for eligible projects;
     (i) Down payment or closing cost assistance for eligible first-time home buyers;
     (j) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing;
     (k) Projects making housing more accessible to families with members who have disabilities; and
     (l) During the 2005-2007 fiscal biennium, a manufactured/mobile home landlord-tenant ombudsman conflict resolution and park registration program.
     (3) During the 2005-2007 fiscal biennium, revenues generated under RCW 36.22.178 may be used for the development of affordable housing projects and other activities funded in section 108, chapter 371, Laws of 2006.
     (4) Legislative appropriations from capital bond proceeds may be used only for the costs of projects authorized under subsection (2)(a), (i), and (j) of this section, and not for the administrative costs of the department.
     (5) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the housing assistance program except for activities authorized under subsection (2)(b) and (c) of this section.
     (6) Administrative costs of the department shall not exceed five percent of the annual funds available for the housing assistance program.

Sec. 215   RCW 39.92.040 and 1989 c 296 s 1 are each amended to read as follows:
     (1) The program shall describe the formula or method for calculating the amount of the transportation impact fees to be imposed on new development within the plan area. The program may require developers to pay a transportation impact fee for off-site transportation improvements not yet constructed and for those jointly-funded improvements constructed since the commencement of the program. The program must assess an additional transportation impact fee on any development that does not satisfy the criteria of compact and transit-oriented development provided in section 202 of this act.
     (2)
The program shall define the event in the development approval process that triggers a determination of the amount of the transportation impact fees and the event that triggers the obligation to make actual payment of the fees. However, the payment obligation shall not commence before the date the developer has obtained a building permit for the new development or, in the case of residential subdivisions or short plats, at the time of final plat approval, at the developer's option. If the developer of a residential subdivision or short plat elects to pay the fee at the date a building permit has been obtained, the option to pay the transportation impact fee by installments as authorized by this section is deemed to have been waived by the developer. The developer shall be given the option to pay the transportation impact fee in a lump sum, without interest, or by installment with reasonable interest over a period of five years or more as specified by the local government.
     (3) The local government shall require security for the obligation to pay the transportation impact fee, in the form of a recorded agreement, deed of trust, letter of credit, or other instrument determined satisfactory by the local government. The developer shall also be given credit against its obligations for the transportation impact fee, for the fair market value of off-site land and/or the cost of constructing off-site transportation improvements dedicated to the local government. If the value of the dedication exceeds the amount of transportation impact fee obligation, the developer is entitled to reimbursement from transportation impact fees attributable to the dedicated improvements and paid by subsequent developers within the plan area.
     (4) Payment of the transportation impact fee entitles the developer and its successors and assigns to credit against any other fee, local improvement district assessment, or other monetary imposition made specifically for the designated off-site transportation improvements intended to be covered by the transportation impact fee imposed pursuant to this program. The program shall also define the criteria for establishing periodic fee increases attributable to construction and related cost increases for the improvements designated in the program.

NEW SECTION.  Sec. 216   A new section is added to chapter 39.92 RCW to read as follows:
     Any revenue collected under RCW 39.92.040 on development that does not satisfy the criteria of compact and transit-oriented development provided in section 202 of this act must be used by the local government on programs that support the development and enhancement of compact and transit-oriented developments and multimodal transportation improvements.

NEW SECTION.  Sec. 217   A new section is added to chapter 43.31 RCW to read as follows:
     The department shall coordinate with any applicable statewide associations representing the interests of counties to publicize opportunities for using public land in urbanized areas for private development that contributes density, necessary uses, or other factors that contribute to the successful implementation of the criteria of compact and transit-oriented developments provided in section 202 of this act.

NEW SECTION.  Sec. 218   (1) By January 31, 2010, the department of community, trade, and economic development shall coordinate with applicable local governments to develop model ordinances that outline housing choices that address both the demands of housing consumers and that satisfies the density objectives in multiple settings.
     (2) By June 30, 2010, the department of community, trade, and economic development shall coordinate with applicable local governments to develop educational and technical tools and models demonstrating how to market developable properties.

Sec. 219   RCW 43.82.010 and 2007 c 506 s 8 are each amended to read as follows:
     (1) The director of general administration, on behalf of the agency involved and after consultation with the office of financial management, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate. When possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act. This section does not transfer financial liability for the acquired property to the department of general administration.
     (2) Except for real estate occupied by federal agencies, the director shall determine the location, size, and design of any real estate or improvements thereon acquired or held pursuant to subsection (1) of this section. Facilities acquired or held pursuant to this chapter, and any improvements thereon, shall conform to standards adopted by the director and approved by the office of financial management governing facility efficiency unless a specific exemption from such standards is provided by the director of general administration. The director of general administration shall report to the office of financial management and the appropriate committees of the legislature annually on any exemptions granted pursuant to this subsection.
     (3) The director of general administration may fix the terms and conditions of each lease entered into under this chapter, except that no lease shall extend greater than twenty years in duration. The director of general administration may enter into a long-term lease greater than ten years in duration upon a determination by the director of the office of financial management that the long-term lease provides a more favorable rate than would otherwise be available, it appears to a substantial certainty that the facility is necessary for use by the state for the full length of the lease term, and the facility meets the standards adopted pursuant to subsection (2) of this section. The director of general administration may enter into a long-term lease greater than ten years in duration if an analysis shows that the life- cycle cost of leasing the facility is less than the life-cycle cost of purchasing or constructing a facility in lieu of leasing the facility.      (4) Except as permitted under chapter 39.94 RCW, no lease for or on behalf of any state agency may be used or referred to as collateral or security for the payment of securities offered for sale through a public offering. Except as permitted under chapter 39.94 RCW, no lease for or on behalf of any state agency may be used or referred to as collateral or security for the payment of securities offered for sale through a private placement without the prior written approval of the state treasurer. However, this limitation shall not prevent a lessor from assigning or encumbering its interest in a lease as security for the repayment of a promissory note provided that the transaction would otherwise be an exempt transaction under RCW 21.20.320. The state treasurer shall adopt rules that establish the criteria under which any such approval may be granted. In establishing such criteria the state treasurer shall give primary consideration to the protection of the state's credit rating and the integrity of the state's debt management program. If it appears to the state treasurer that any lease has been used or referred to in violation of this subsection or rules adopted under this subsection, then he or she may recommend that the governor cause such lease to be terminated. The department of general administration shall promptly notify the state treasurer whenever it may appear to the department that any lease has been used or referred to in violation of this subsection or rules adopted under this subsection.
     (5) It is the policy of the state to encourage the colocation and consolidation of state services into single or adjacent facilities, whenever appropriate, to improve public service delivery, minimize duplication of facilities, increase efficiency of operations, and promote sound growth management planning.
     (6) The director of general administration shall provide coordinated long-range planning services to identify and evaluate opportunities for colocating and consolidating state facilities. Upon the renewal of any lease, the inception of a new lease, or the purchase of a facility, the director of general administration shall determine whether an opportunity exists for colocating the agency or agencies in a single facility with other agencies located in the same geographic area. If a colocation opportunity exists, the director of general administration shall consult with the affected state agencies and the office of financial management to evaluate the impact colocation would have on the cost and delivery of agency programs, including whether program delivery would be enhanced due to the centralization of services. The director of general administration, in consultation with the office of financial management, shall develop procedures for implementing colocation and consolidation of state facilities.
     (7) The director of general administration is authorized to purchase, lease, rent, or otherwise acquire improved or unimproved real estate as owner or lessee and to lease or sublet all or a part of such real estate to state or federal agencies. The director of general administration shall charge each using agency its proportionate rental which shall include an amount sufficient to pay all costs, including, but not limited to, those for utilities, janitorial and accounting services, and sufficient to provide for contingencies; which shall not exceed five percent of the average annual rental, to meet unforeseen expenses incident to management of the real estate.
     (8) If the director of general administration determines that it is necessary or advisable to undertake any work, construction, alteration, repair, or improvement on any real estate acquired pursuant to subsection (1) or (7) of this section, the director shall cause plans and specifications thereof and an estimate of the cost of such work to be made and filed in his or her office and the state agency benefiting thereby is hereby authorized to pay for such work out of any available funds: PROVIDED, That the cost of executing such work shall not exceed the sum of twenty-five thousand dollars. Work, construction, alteration, repair, or improvement in excess of twenty-five thousand dollars, other than that done by the owner of the property if other than the state, shall be performed in accordance with the public works law of this state.
     (9) In order to obtain maximum utilization of space, the director of general administration shall make space utilization studies, and shall establish standards for use of space by state agencies. Such studies shall include the identification of opportunities for colocation and consolidation of state agency office and support facilities.
     (10) The director of general administration may construct new buildings on, or improve existing facilities, and furnish and equip, all real estate under his or her management. Prior to the construction of new buildings or major improvements to existing facilities or acquisition of facilities using a lease purchase contract, the director of general administration shall conduct an evaluation of the facility design and budget using life-cycle cost analysis, value-engineering, and other techniques to maximize the long-term effectiveness and efficiency of the facility or improvement.
     (11) All conveyances and contracts to purchase, lease, rent, transfer, exchange, or sell real estate and to grant and accept easements shall be approved as to form by the attorney general, signed by the director of general administration or the director's designee, and recorded with the county auditor of the county in which the property is located.
     (12) The director of general administration may delegate any or all of the functions specified in this section to any agency upon such terms and conditions as the director deems advisable. By January 1st of each year, beginning January 1, 2008, the department shall submit an annual report to the office of financial management and the appropriate committees of the legislature on all delegated leases.
     (13) This section does not apply to the acquisition of real estate by:
     (a) The state college and universities for research or experimental purposes;
     (b) The state liquor control board for liquor stores and warehouses; and
     (c) The department of natural resources, the department of fish and wildlife, the department of transportation, and the state parks and recreation commission for purposes other than the leasing of offices, warehouses, and real estate for similar purposes.
     (14) Notwithstanding any provision in this chapter to the contrary, the department of general administration may negotiate ground leases for public lands on which property is to be acquired under a financing contract pursuant to chapter 39.94 RCW under terms approved by the state finance committee.
     (15) The department of general administration shall report annually to the office of financial management and the appropriate fiscal committees of the legislature on facility leases executed for all state agencies for the preceding year, lease terms, and annual lease costs. The report must include leases executed under RCW 43.82.045 and subsection (12) of this section.

Sec. 220   RCW 39.33.010 and 2003 c 303 s 1 are each amended to read as follows:
     (1) The state or any municipality or any political subdivision ((thereof)) of the state, may sell, transfer, exchange, lease, or otherwise dispose of any property, real or personal, or property rights, including but not limited to the title to real property, to the state or any municipality or any political subdivision ((thereof)) of the state, or the federal government, on such terms and conditions as may be mutually agreed upon by the proper authorities of the state and/or the subdivisions concerned. In addition, the state, or any municipality or any political subdivision ((thereof)) of the state, may sell, transfer, exchange, lease, or otherwise dispose of personal property, except weapons, to a foreign entity.
     (2) This section shall be deemed to provide an alternative method for the doing of the things authorized herein, and shall not be construed as imposing any additional condition upon the exercise of any other powers vested in the state, municipalities or political subdivisions.
     (3) No intergovernmental transfer, lease, or other disposition of property made pursuant to any other provision of law prior to May 23, 1972, shall be construed to be invalid solely because the parties thereto did not comply with the procedures of this section.
     (4) When possible, intergovernmental transfers should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.

Sec. 221   RCW 47.12.063 and 2006 c 17 s 2 are each amended to read as follows:
     (1) It is the intent of the legislature to continue the department's policy giving priority consideration to abutting property owners in agricultural areas when disposing of property through its surplus property program under this section. In addition, when possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.
     (2) Whenever the department determines that any real property owned by the state of Washington and under the jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so, the department may sell the property or exchange it in full or part consideration for land or improvements or for construction of improvements at fair market value to any of the following governmental entities or persons:
     (a) Any other state agency;
     (b) The city or county in which the property is situated;
     (c) Any other municipal corporation;
     (d) Regional transit authorities created under chapter 81.112 RCW;
     (e) The former owner of the property from whom the state acquired title;
     (f) In the case of residentially improved property, a tenant of the department who has resided thereon for not less than six months and who is not delinquent in paying rent to the state;
     (g) Any abutting private owner but only after each other abutting private owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in RCW 47.12.283;
     (h) To any person through the solicitation of written bids through public advertising in the manner prescribed by RCW 47.28.050;
     (i) To any other owner of real property required for transportation purposes;
     (j) In the case of property suitable for residential use, any nonprofit organization dedicated to providing affordable housing to very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510 and is eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW; or
     (k) A federally recognized Indian tribe within whose reservation boundary the property is located.
     (3) Sales to purchasers may at the department's option be for cash, by real estate contract, or exchange of land or improvements. Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW or Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.
     (4) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.
     (5) Unless otherwise provided, all moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund.

Sec. 222   RCW 53.08.090 and 1994 c 26 s 1 are each amended to read as follows:
     (1) A port commission may, by resolution, authorize the managing official of a port district to sell and convey port district property of ten thousand dollars or less in value. The authority shall be in force for not more than one calendar year from the date of resolution and may be renewed from year to year. Prior to any such sale or conveyance the managing official shall itemize and list the property to be sold and make written certification to the commission that the listed property is no longer needed for district purposes. Any large block of the property having a value in excess of ten thousand dollars shall not be broken down into components of ten thousand dollars or less value and sold in the smaller components unless the smaller components be sold by public competitive bid. A port district may sell and convey any of its real or personal property valued at more than ten thousand dollars when the port commission has, by resolution, declared the property to be no longer needed for district purposes, but no property which is a part of the comprehensive plan of improvement or modification thereof shall be disposed of until the comprehensive plan has been modified to find the property surplus to port needs. The comprehensive plan shall be modified only after public notice and hearing provided by RCW 53.20.010.
     (2) Nothing in this section shall be deemed to repeal or modify procedures for property sales within industrial development districts as set forth in chapter 53.25 RCW.
     (((2))) (3) When possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.
     (4)
The ten thousand dollar figures in subsection (1) of this section shall be adjusted annually based upon the governmental price index established by the department of revenue under RCW 82.14.200.

Sec. 223   RCW 70.44.300 and 1997 c 332 s 17 are each amended to read as follows:
     (1) The board of commissioners of any public hospital district may sell and convey at public or private sale real property of the district if the board determines by resolution that the property is no longer required for public hospital district purposes or determines by resolution that the sale of the property will further the purposes of the public hospital district. When possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.
     (2) Any sale of district real property authorized pursuant to this section shall be preceded, not more than one year prior to the date of sale, by market value appraisals by three licensed real estate brokers or professionally designated real estate appraisers as defined in RCW 74.46.020 or three independent experts in valuing health care property, selected by the board of commissioners, and no sale shall take place if the sale price would be less than ninety percent of the average of such appraisals.
     (3) When the board of commissioners of any public hospital district proposes a sale of district real property pursuant to this section and the value of the property exceeds one hundred thousand dollars, the board shall publish a notice of its intention to sell the property. The notice shall be published at least once each week during two consecutive weeks in a legal newspaper of general circulation within the public hospital district. The notice shall describe the property to be sold and designate the place where and the day and hour when a hearing will be held. The board shall hold a public hearing upon the proposal to dispose of the public hospital district property at the place and the day and hour fixed in the notice and consider evidence offered for and against the propriety and advisability of the proposed sale.
     (4) If in the judgment of the board of commissioners of any district the sale of any district real property not needed for public hospital district purposes would be facilitated and greater value realized through use of the services of licensed real estate brokers, a contract for such services may be negotiated and concluded. The fee or commissions charged for any broker service shall not exceed seven percent of the resulting sale price for a single parcel. No licensed real estate broker or professionally designated real estate appraisers as defined in RCW 74.46.020 or independent expert in valuing health care property selected by the board to appraise the market value of a parcel of property to be sold may be a party to any contract with the public hospital district to sell such property for a period of three years after the appraisal.

Sec. 224   RCW 28A.335.120 and 2006 c 263 s 913 are each amended to read as follows:
     (1) The board of directors of any school district of this state may:
     (a) Sell for cash, at public or private sale, and convey by deed all interest of the district in or to any of the real property of the district which is no longer required for school purposes; and
     (b) Purchase real property for the purpose of locating thereon and affixing thereto any house or houses and appurtenant buildings removed from school sites owned by the district and sell for cash, at public or private sale, and convey by deed all interest of the district in or to such acquired and improved real property.
     (2) When the board of directors of any school district proposes a sale of school district real property pursuant to this section and the value of the property exceeds seventy thousand dollars, the board shall publish a notice of its intention to sell the property. The notice shall be published at least once each week during two consecutive weeks in a legal newspaper with a general circulation in the area in which the school district is located. The notice shall describe the property to be sold and designate the place where and the day and hour when a hearing will be held. The board shall hold a public hearing upon the proposal to dispose of the school district property at the place and the day and hour fixed in the notice and admit evidence offered for and against the propriety and advisability of the proposed sale.
     (3) The board of directors of any school district desiring to sell surplus real property shall publish a notice in a newspaper of general circulation in the school district. School districts shall not sell the property for at least forty-five days following the publication of the newspaper notice.
     (4) Private schools shall have the same rights as any other person or entity to submit bids for the purchase of surplus real property and to have such bids considered along with all other bids.
     (5) Any sale of school district real property authorized pursuant to this section shall be preceded by a market value appraisal by a professionally designated real estate appraiser as defined in RCW 74.46.020 or a general real estate appraiser certified under chapter 18.140 RCW selected by the board of directors and no sale shall take place if the sale price would be less than ninety percent of the appraisal made by the real estate appraiser: PROVIDED, That if the property has been on the market for one year or more the property may be reappraised and sold for not less than seventy-five percent of the reappraised value with the unanimous consent of the board.
     (6) If in the judgment of the board of directors of any district the sale of real property of the district not needed for school purposes would be facilitated and greater value realized through use of the services of licensed real estate brokers, a contract for such services may be negotiated and concluded: PROVIDED, That the use of a licensed real estate broker will not eliminate the obligation of the board of directors to provide the notice described in this section: PROVIDED FURTHER, That the fee or commissions charged for any broker services shall not exceed seven percent of the resulting sale value for a single parcel: PROVIDED FURTHER, That any professionally designated real estate appraiser as defined in RCW 74.46.020 or a general real estate appraiser certified under chapter 18.140 RCW selected by the board to appraise the market value of a parcel of property to be sold may not be a party to any contract with the school district to sell such parcel of property for a period of three years after the appraisal.
     (7) If in the judgment of the board of directors of any district the sale of real property of the district not needed for school purposes would be facilitated and greater value realized through sale on contract terms, a real estate sales contract may be executed between the district and buyer.
     (8) When possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.

Sec. 225   RCW 35.61.132 and 1989 c 319 s 4 are each amended to read as follows:
     Every metropolitan park district may, by unanimous decision of its board of park commissioners, sell, exchange, or otherwise dispose of any real or personal property acquired for park or recreational purposes when such property is declared surplus for park or other recreational purposes: PROVIDED, That where the property is acquired by donation or dedication for park or recreational purposes, the consent of the donor or dedicator, his or her heirs, successors, or assigns is first obtained if the consent of the donor is required in the instrument conveying the property to the metropolitan park district. In the event the donor or dedicator, his or her heirs, successors, or assigns cannot be located after a reasonable search, the metropolitan park district may petition the superior court in the county where the property is located for approval of the sale. If sold, all sales shall be by public bids and sale made only to the highest and best bidder, except that, when possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.

Sec. 226   RCW 35.94.040 and 1973 1st ex.s. c 95 s 1 are each amended to read as follows:
     (1) Whenever a city shall determine, by resolution of its legislative authority, that any lands, property, or equipment originally acquired for public utility purposes is surplus to the city's needs and is not required for providing continued public utility service, then such legislative authority by resolution and after a public hearing may cause such lands, property, or equipment to be leased, sold, or conveyed. Such resolution shall state the fair market value or the rent or consideration to be paid and such other terms and conditions for such disposition as the legislative authority deems to be in the best public interest.
     (2) When possible, property disposals should be prioritized to further future land uses that advance increased housing densities, mixed land uses, and the criteria of compact and transit-oriented development provided in section 202 of this act.
     (3)
The provisions of RCW 35.94.020 and 35.94.030 shall not apply to dispositions authorized by this section.

NEW SECTION.  Sec. 227   A new section is added to chapter 47.01 RCW to read as follows:
     It is the intent of the legislature for the department to work with local transit agencies in an effort to coordinate increased housing density around park and ride lots, including the utilization of airspace over park and ride lots for commercial and residential uses.

NEW SECTION.  Sec. 228   A new section is added to chapter 47.80 RCW to read as follows:
     The department of transportation shall coordinate with regional transportation planning organizations in the development of measures that reduce the per capita vehicle miles traveled. Once developed and subjected to a public review, the measures must be considered in the updating of regional transportation plans.

NEW SECTION.  Sec. 229   A new section is added to chapter 47.01 RCW to read as follows:
     (1) The department of transportation, in collaboration with the department of community, trade, and economic development and statewide associations representing the interest of counties, shall develop educational programs and assistance relating to parking assistance, incentives, and management.
     (2) The materials developed under this section must:
     (a) Include illustrations of case studies with successful implementation of parking management that advances low-carbon emissions goals;
     (b) Include assistance for compact and transit-oriented developers in forming transportation management associations that are designed to advance self-sustaining parking management and commute trip reduction organizations;
     (c) Describe the role of car sharing in parking management in dense areas;
     (d) Educate developers, and inform the public, regarding the cost of parking policies that do not charge money to the car driver.

Sec. 230   RCW 47.80.030 and 2005 c 328 s 2 are each amended to read as follows:
     (1) Each regional transportation planning organization shall develop in cooperation with the department of transportation, providers of public transportation and high capacity transportation, ports, and local governments within the region, adopt, and periodically update a regional transportation plan that:
     (a) Is based on a least cost planning methodology that identifies the most cost-effective facilities, services, and programs;
     (b) Identifies existing or planned transportation facilities, services, and programs, including but not limited to major roadways including state highways and regional arterials, transit and nonmotorized services and facilities, multimodal and intermodal facilities, marine ports and airports, railroads, and noncapital programs including transportation demand management that should function as an integrated regional transportation system, giving emphasis to those facilities, services, and programs that exhibit one or more of the following characteristics:
     (i) Crosses member county lines;
     (ii) Is or will be used by a significant number of people who live or work outside the county in which the facility, service, or project is located;
     (iii) Significant impacts are expected to be felt in more than one county;
     (iv) Potentially adverse impacts of the facility, service, program, or project can be better avoided or mitigated through adherence to regional policies;
     (v) Transportation needs addressed by a project have been identified by the regional transportation planning process and the remedy is deemed to have regional significance; and
     (vi) Provides for system continuity;
     (c) Establishes level of service standards for state highways and state ferry routes, with the exception of transportation facilities of statewide significance as defined in RCW 47.06.140. These regionally established level of service standards for state highways and state ferries shall be developed jointly with the department of transportation, to encourage consistency across jurisdictions. In establishing level of service standards for state highways and state ferries, consideration shall be given for the necessary balance between providing for the free interjurisdictional movement of people and goods and the needs of local commuters using state facilities;
     (d) Includes a financial plan demonstrating how the regional transportation plan can be implemented, indicating resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommending any innovative financing techniques to finance needed facilities, services, and programs;
     (e) Assesses regional development patterns, capital investment and other measures necessary to:
     (i) Ensure the preservation of the existing regional transportation system, including requirements for operational improvements, resurfacing, restoration, and rehabilitation of existing and future major roadways, as well as operations, maintenance, modernization, and rehabilitation of existing and future transit, railroad systems and corridors, and nonmotorized facilities; and
     (ii) Make the most efficient use of existing transportation facilities to relieve vehicular congestion and maximize the mobility of people and goods;
     (f) Sets forth a proposed regional transportation approach, including capital investments, service improvements, programs, and transportation demand management measures to guide the development of the integrated, multimodal regional transportation system. For regional growth centers, the approach must address transportation concurrency strategies required under RCW 36.70A.070 and include a measurement of vehicle level of service for off-peak periods and total multimodal capacity for peak periods; ((and))
     (g) Where appropriate, sets forth the relationship of high capacity transportation providers and other public transit providers with regard to responsibility for, and the coordination between, services and facilities;
     (h) Includes maximum regional parking levels designed to address parking thresholds at the state and regional level, and works toward prohibiting the construction of principle-use long-term parking in favor of shared parking; and
     (i) Includes provisions that provide regional transportation funding for transit and multimodal infrastructure facilities in return for commitments from developers to maximize development densities and minimize project parking
.
     (2) Regional transportation planning organizations encompassing: (a) One county planning under RCW 36.70A.040 with one hundred thousand or more residents; or (b) two or more counties planning under RCW 36.70A.040, one of which has one hundred thousand or more residents, must ensure that the regional transportation plan for those counties implements the goals to reduce annual per capita vehicle miles traveled adopted under RCW 47.01.440.
     (3)
The organization shall review the regional transportation plan biennially for currency and forward the adopted plan along with documentation of the biennial review to the state department of transportation. In satisfying the requirements of this subsection, the organization shall provide notice reasonably calculated to inform the public of the review, and opportunities for the public to comment on the review and plan adoption.
     (((3))) (4) All transportation projects, programs, and transportation demand management measures within the region that have an impact upon regional facilities or services must be consistent with the plan and with the adopted regional growth and transportation strategies.

Sec. 231   RCW 47.80.050 and 1990 1st ex.s. c 17 s 57 are each amended to read as follows:
     Biennial appropriations to the department of transportation to carry out the regional transportation planning program shall set forth the amounts to be allocated as follows:
     (1) A base amount per county for each county within each regional transportation planning organization, to be distributed to the lead planning agency;
     (2) An amount to be distributed to each lead planning agency on a per capita basis; ((and))
     (3) An amount to be administered by the department of transportation as a discretionary grant program for special regional planning projects, including grants to allow counties which have significant transportation interests in common with an adjoining region to also participate in that region's planning efforts;
     (4) An amount that can be distributed when appropriate, with support from the department of community, trade, and economic development, for focused trip reduction programs in compact and transit-oriented developments that satisfy the criteria of section 202 of this act. When possible, these amounts should be modeled after the growth and transportation efficiency centers outlined in RCW 70.94.528
.

NEW SECTION.  Sec. 232   By January 1, 2010, the department of transportation shall prepare a report to the appropriate committees of the legislature that:
     (1) Outlines parking-related revenue and funding options, including parking taxes in dense urban areas, for projects and programs located in compact and transit-oriented developments that satisfy the criteria of section 202 of this act and funding for tax credits for lower parking ratios; and
     (2) Identifies, with the assistance of the department of community, trade, and economic development, which of the following parking management strategies best forward the goals of compact and transit-oriented development identified in the criteria set forth in section 202 of this act, including an analysis of the impact each strategy would have on businesses and housing projects and on the different size compact and transit-oriented developments either already existing or currently planned:
     (a) Changes in state law regarding the commercial parking tax authorizing monthly reserved parking to be taxed, with the revenues dedicated to developing alternatives to driving;
     (b) Creation of the ability to charge higher parking taxes for monthly, long-term, or commuter parking than for short-term parking;
     (c) Development and implementation of variable parking pricing for different areas and times of the day;
     (d) Development and implementation of congestion pricing for special events parking;
     (e) Consideration of charging at high use park and ride lots as a way to manage demand and raise revenue;
     (f) Identify opportunities for funding incentives to developers who develop housing facilities that reduce or intercept traffic impacts on already overburdened major roadways;
     (g) Increases in density and a reduction in parking requirements for valet parking;
     (h) Reduction in parking rates or the provision of priority parking for rideshare vehicles and other high occupancy vehicles;
     (i) Provision of incentives to employees and employers for parking management, such as employer-provided mini-fleets for employees and the option for employees to cash out their free parking privileges;
     (j) Restrictions on special parking rates that reward early morning parking in congested downtown areas;
     (k) Reconfiguration of street parking for bicycles and scooters and to consider the benefits of angled or parallel parking.

NEW SECTION.  Sec. 233   The legislature finds that walking and bicycling for transportation purposes offers many benefits to individuals, their communities, and the state. These benefits include improved health and a reduction in the emissions of carbon and other harmful pollutants. When incorporated into a balanced transportation system, walking and bicycling can reduce the amount of car trips made, and thereby reduce the greenhouse gas emissions caused by motor vehicles.

NEW SECTION.  Sec. 234   (1) Except as otherwise provided in this chapter, transportation decisions made by state, regional, and local entities must give recognition, consideration, and prioritization to the complete street principles provided in this section.
     (2) Complete streets are roads that are designed and operated to enable safe access for all users, including pedestrians, bicyclists, motorists, and bus riders of all ages and abilities. The principles of complete streets are as follows:
     (a) Specification that the infrastructure is designed for all users, including pedestrians, bicyclists, transit vehicles and users, and motorists of all ages and abilities;
     (b) Aiming to create a comprehensive, integrated, connected network;      
     (c) Recognition of the need for flexibility and the idea that all streets are different and user needs will be balanced;
     (d) The ability to be adopted by all agencies to cover all roads;      (e) Applicability to both new and retrofit projects, including design, planning, maintenance, and operations for the entire right-of-way;
     (f) Making any exceptions to these principles specific with a clear procedure that requires high-level approval of exceptions;     
     (g) Direction for the use of the latest and best design standards;
     (h) Direction that complete streets solutions fit in with the context of the community;
     (i) Establishment of performance standards with measurable outcomes.

NEW SECTION.  Sec. 235   The implementation of the complete streets principles identified in section 234 of this act must be prioritized and implemented in the following order:
     (1) By September 1, 2009, the superintendent of public instruction shall work with local communities and school districts to develop an investment strategy that ensures:
     (a) All elementary and middle schools in urban areas are connected to pedestrian routes within a one and one-half mile circumference of the school entrance; and
     (b) All high schools in urban areas are connected to pedestrian routes within a two-mile circumference of the school entrance.
     (2) By December 15, 2009, the superintendent of public instruction shall review school-siting policies and practices and deliver a report to the appropriate committees of the legislature recommending practices and changes that can reduce total vehicle miles traveled to and from schools.
     (3) By December 31, 2009, the department of transportation shall:
     (a) Deliver to the appropriate committees of the legislature the identification of a funding strategy to fulfill all elements of the adopted 2008 Washington state bicycle facilities and pedestrian walkways plan, including funding for training and facilities; and
     (b) Work with cities and counties to begin training all traffic engineers and planners on the design and engineering elements that promote walking and bicycling.
     (4) By December 31, 2010, all state transportation funds and state public works transportation funding must include the complete streets criteria identified in section 234 of this act when completing state projects or awarding state funding for local projects.
     (5) By December 31, 2011, all cities must adopt rules or ordinances modeled on the complete streets criteria identified in section 234 of this act. Compliance with this section is a necessary prerequisite for receiving state transportation grant and loan funding. Cities not in compliance with this section may only apply for state transportation grant and loan funding if the city can justify their noncompliance by the provision of alternative plans for reducing total vehicle miles traveled.
     (6) By December 31, 2012, all school districts must develop transportation plans that identify strategies to encourage nonsingle-occupancy vehicle driving to school.
     (7) By December 31, 2013, the secretary shall require all planners and engineers employed by the department to have completed an approved course on walking and bicycling.
     (8) By December 31, 2014, all urban areas required to have a growth management plan under chapter 36.70A RCW must produce a bicycle and walking master plan, either as two separate plans or as a unified document, and identify funding strategies to complete the execution of the plan or plans within their six-year capital facilities plans.
     (9) By December 31, 2018, all urban areas required to take action under subsection (8) of this section must be able to demonstrate progress towards completing projects identified in their bicycle and walking master plans.

NEW SECTION.  Sec. 236   Requirements of this chapter related to the complete streets principles outlined in section 234 of this act do not apply if:
     (1) Conformance to the complete streets principles would represent more than twenty percent of an overall project's cost;
     (2) There is no identified need for compliance with complete streets principles; or
     (3) The secretary expressly exempts a project from compliance with this chapter.

NEW SECTION.  Sec. 237   By September 1, 2010, the department of community, trade, and economic development, together with the department of ecology, shall prepare for the appropriate committees of the legislature a report recommending funding sources for the encouragement of the redevelopment of brownfields. In addition, the report must outline the mechanisms of a grants component that augments the state's brownfields revolving loan. Recommendations must advance opportunities for land aggregation, promoting town centers, and promoting compact development.

Sec. 238   RCW 47.01.440 and 2008 c 14 s 8 are each amended to read as follows:
     To support the implementation of RCW 47.04.280 and 47.01.078(4), the department shall adopt broad statewide goals to reduce annual per capita vehicle miles traveled by 2050 consistent with the stated goals of executive order 07-02. Consistent with these goals, the department shall:
     (1) Establish the following benchmarks using a statewide baseline of seventy-five billion vehicle miles traveled less the vehicle miles traveled attributable to vehicles licensed under RCW 46.16.070 and weighing ten thousand pounds or more, which are exempt from this section:
     (a) Decrease the annual per capita vehicle miles traveled by eighteen percent by 2020;
     (b) Decrease the annual per capita vehicle miles traveled by thirty percent by 2035; and
     (c) Decrease the annual per capita vehicle miles traveled by fifty percent by 2050;
     (2) By July 1, 2008, establish and convene a collaborative process to develop a set of tools and best practices to assist state, regional, and local entities in making progress towards the benchmarks established in subsection (1) of this section. The collaborative process must provide an opportunity for public review and comment and must:
     (a) Be jointly facilitated by the department, the department of ecology, and the department of community, trade, and economic development;
     (b) Provide for participation from regional transportation planning organizations, the Washington state transit association, the Puget Sound clean air agency, a statewide business organization representing the sale of motor vehicles, at least one major private employer that participates in the commute trip reduction program, and other interested parties, including but not limited to parties representing diverse perspectives on issues relating to growth, development, and transportation;
     (c) Identify current strategies to reduce vehicle miles traveled in the state as well as successful strategies in other jurisdictions that may be applicable in the state;
     (d) Identify potential new revenue options for local and regional governments to authorize to finance vehicle miles traveled reduction efforts;
     (e) Provide for the development of measurement tools that can, with a high level of confidence, measure annual progress toward the benchmarks at the local, regional, and state levels, measure the effects of strategies implemented to reduce vehicle miles traveled and adequately distinguish between common travel purposes, such as moving freight or commuting to work, and measure trends of vehicle miles traveled per capita on a five-year basis;
     (f) Establish a process for the department to periodically evaluate progress toward the vehicle miles traveled benchmarks, measure achieved and projected emissions reductions, and recommend whether the benchmarks should be adjusted to meet the state's overall goals for the reduction of greenhouse gas emissions;
     (g) Estimate the projected reductions in greenhouse gas emissions if the benchmarks are achieved, taking into account the expected implementation of existing state and federal mandates for vehicle technology and fuels, as well as expected growth in population and vehicle travel;
     (h) Examine access to public transportation for people living in areas with affordable housing to and from employment centers, and make recommendations for steps necessary to ensure that areas with affordable housing are served by adequate levels of public transportation; and
     (i) By December 1, 2008, provide a report to the transportation committees of the legislature on the collaborative process and resulting recommended tools and best practices to achieve the reduction in annual per capita vehicle miles traveled goals.
     (3) Included in the December 1, 2008, report to the transportation committees of the legislature, the department shall identify strategies to reduce vehicle miles traveled in the state as well as successful strategies in other jurisdictions that may be applicable in the state that recognize the differing urban and rural transportation requirements.
     (4) Prior to implementation of the goals in this section, the department, in consultation with the department of community, trade, and economic development, cities, counties, local economic development organizations, and local and regional chambers of commerce, shall provide a report to the appropriate committees of the legislature on the anticipated impacts of the goals established in this section on the following:
     (a) The economic hardship on small businesses as it relates to the ability to hire and retain workers who do not reside in the county in which they are employed;
     (b) Impacts on low-income residents;
     (c) Impacts on agricultural employers and their employees, especially on the migrant farmworker community;
     (d) Impacts on distressed rural counties; and
     (e) Impacts in counties with more than fifty percent of the land base of the county in public or tribal lands.
     (5)(a) Subsequent to the completion of the 2008 report required by this section, the department shall reconvene the original stakeholders and identify options for aligning state, regional, and local transportation investments with the vehicle miles traveled benchmarks presented in this section. This process must include the reexamination of existing investments to ensure that greenhouse gas emissions and vehicle miles traveled reduction goals, as well as the traditional goals of transportation spending, are reflected in the state's transportation spending.
     (b) The report required by this subsection must be delivered to the appropriate committees of the legislature by December 31, 2010.

Sec. 239   RCW 47.56.830 and 2008 c 122 s 5 are each amended to read as follows:
     Any proposal for the establishment of eligible toll facilities shall consider the following policy guidelines:
     (1) Overall direction. Washington should use tolling to encourage effective use of the transportation system ((and)), provide a source of transportation funding, and reduce per capita vehicle miles traveled and greenhouse gas emissions.
     (2) When to use tolling. Tolling should be used when it can be demonstrated to contribute a significant portion of the cost of a project that cannot be funded solely with existing sources or optimize the performance of the transportation system. Such tolling should, in all cases, be fairly and equitably applied in the context of the statewide transportation system and not have significant adverse impacts through the diversion of traffic to other routes that cannot otherwise be reasonably mitigated. Such tolling should also consider relevant social equity, environmental, and economic issues, and should be directed at making progress toward the state's greenhouse gas reduction goals. When using tolling, strategies should be incorporated to reduce per capita vehicle miles traveled and greenhouse gas emissions by developing toll rate policies that encourage drivers to make shorter and fewer trips, use less polluting vehicles, and consider alternative modes other than single-occupancy use driving.
     (3) Use of toll revenue. All revenue from an eligible toll facility must be used only to improve, preserve, manage, or operate the eligible toll facility on or in which the revenue is collected. Additionally, toll revenue should provide for and encourage the inclusion of recycled and reclaimed construction materials.
     (4) Setting toll rates. Toll rates, which may include variable pricing, must be set to meet anticipated funding obligations. To the extent possible, the toll rates should be set to optimize system performance, recognizing necessary trade-offs to generate revenue.
     (5) Duration of toll collection. Because transportation infrastructure projects have costs and benefits that extend well beyond those paid for by initial construction funding, tolls on future toll facilities may remain in place to fund additional capacity, capital rehabilitation, maintenance, management, and operations, and to optimize performance of the system.

Sec. 240   RCW 47.56.820 and 2008 c 122 s 4 are each amended to read as follows:
     (1) Unless otherwise delegated, only the legislature may authorize the imposition of tolls on eligible toll facilities.
     (2) All revenue from an eligible toll facility must be used only to construct, improve, preserve, maintain, manage, or operate the eligible toll facility on or in which the revenue is collected or to support sustainable travel options, such as transit and ridesharing, or to increase freight mobility. Expenditures of toll revenues are subject to appropriation and must be made only:
     (a) To cover the operating costs of the eligible toll facility, sustainable travel option, or increased freight mobility, including necessary maintenance, preservation, administration, and toll enforcement by public law enforcement within the boundaries of the facility;
     (b) To meet obligations for the repayment of debt and interest on the eligible toll facilities, sustainable travel option, or increased freight mobility, and any other associated financing costs including, but not limited to, required reserves and insurance;
     (c) To meet any other obligations to provide funding contributions for any projects or operations on the eligible toll facilities, sustainable travel option, or increased freight mobility;
     (d) To provide for the operations of conveyances of people or goods; or
     (e) For any other improvements to the eligible toll facilities, sustainable travel option, or increased freight mobility.

NEW SECTION.  Sec. 241   (1) By December 31, 2010, the department of transportation shall assemble a task force of interested and appropriate stakeholders to review state and local transportation funding and to propose tolls and other pricing mechanisms that could fund transportation and transit needs and create price incentives to reduce per capita vehicle miles traveled and greenhouse gas emissions in the transportation sector.
     (2) Pricing mechanisms considered by the task force should give priority to transit and freight operations and be fair and consistent.
     (3) The task force shall also review the state's tolling authority and explore how a move towards a system-wide application of tolling, rather than a project-by-project approach, can reduce per capita vehicle miles traveled and greenhouse gas emissions in the transportation sector.
     (4) Results of the task force must be delivered to the appropriate committees of the legislature by December 31, 2011.
     (5) This section expires June 30, 2012.

Sec. 242   RCW 47.56.785 and 2008 c 270 s 4 are each amended to read as follows:
     (1) Following the submission of the report required in section 6, chapter 270, Laws of 2008, the department may seek authorization from the legislature to collect tolls on the existing ((state route number 520)) bridge or on a replacement ((state route number 520)) bridge for state route number 520 or Interstate 90. Any tolls established for Interstate 90 must be designed to implement a system-wide application of tolling that has the potential to reduce per capita vehicle miles traveled and greenhouse gas emissions in the transportation sector.
     (2) The schedule of toll charges must be established by the transportation commission and collected in a manner determined by the department.

NEW SECTION.  Sec. 243   (1) By December 31, 2010, the department of transportation shall deliver to the appropriate committees of the legislature a report that estimates the costs of investments in rail improvements that are necessary to reduce the usage of trucks and passenger vehicles, and thus lower greenhouse gas emissions.
     (2) The report required by this section must have the following components:
     (a) The costs of the following improvements to freight and passenger rail service:
     (i) Establishing a triple track on the mainline between Seattle and Tacoma;
     (ii) Improving West Vancouver freight access;
     (iii) Developing a Point Defiance bypass;
     (iv) Improving Blakeslee Junction;
     (v) Developing a third mainline for Martin's Bluff;
     (vi) Developing Green river industrial leads;
     (vii) Improving access to the port of Seattle and the port of Tacoma; and
     (viii) Improving east/west service;
     (b) The costs of developing and maintaining a joint operation and tracking agreement with private rail carriers to allow equal access to mainline infrastructure;
     (c) The cost of improving the Stampede Pass line to allow for double-stack service;
     (d) The cost of working with class 1 railroads to improve operations to lines along the Columbia river as directional running corridors;
     (e) The cost of maintaining a substantive program for improving and maintaining short line railroads that have sufficient projected freight to make a difference in air quality;
     (f) The costs of needed work to facilitate links to other rail forms and nonsingle-occupancy vehicle travel;
     (g) The cost of reactivating the old Milwaukee road line between Ellensburg and Lind;
     (h) The minimum useful funding level for a state grant or loan program targeted at helping smaller class 1 railroads invest in technologies that reduce fuel consumption and air emissions; and
     (i) Identify a methodology for determining when rail electrification might become a viable option in Washington, including strategies for leveraging federal grants and loans for rail electrification projects.

NEW SECTION.  Sec. 244   By December 31, 2010, the department of licensing, together with the department of revenue, shall develop options that would decrease the up-front cost of purchasing plug-in electric vehicles and other high mileage vehicles relative to the cost of purchasing less efficient vehicles.

Sec. 245   RCW 82.08.813 and 2005 c 296 s 2 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of new passenger cars, light and heavy duty trucks, and medium duty passenger vehicles, which utilize hybrid technology and have a United States environmental protection agency estimated highway gasoline mileage rating of at least forty miles per gallon.
     (2) The seller must keep records necessary for the department to verify eligibility under this section.
     (3) As used in this section, "hybrid technology" means propulsion units powered by both electricity and gasoline.

Sec. 246   2005 c 296 s 6 (uncodified) is amended to read as follows:
     This act expires January 1, ((2011)) 2020.

NEW SECTION.  Sec. 247   By December 31, 2009, the department of transportation shall deliver to the appropriate committees of the legislature a report that:
     (1) Reviews the relevancy of the current exclusions of higher weight battery electric vehicles. If practical, the report must recommend amending the gross vehicle weight limit for medium speed electric vehicles; and
     (2) Studies possible financial incentives that may stimulate the production of six-plus-passenger vans for vanshare or shuttle programs and the initiation of electric vehicle demonstration projects.

NEW SECTION.  Sec. 248   A new section is added to chapter 19.112 RCW to read as follows:
     By December 31, 2011, the departments of agriculture, ecology, transportation, and community, trade, and economic development shall evaluate and implement low-carbon fuel standard requirements that are appropriate for Washington. Initiation of this requirement may not commence until California has implemented a low-carbon fuel standard and lessons can be learned from California's experience.

NEW SECTION.  Sec. 249   Section 245 of this act expires January 1, 2020.

NEW SECTION.  Sec. 250   Sections 233 through 236 of this act constitute a new chapter in Title 47 RCW.

PART 3
Beyond Waste Recommendations

Sec. 301   RCW 70.95.010 and 2002 c 299 s 3 are each amended to read as follows:
     The legislature finds:
     (1) Continuing technological changes in methods of manufacture, packaging, and marketing of consumer products, together with the economic and population growth of this state, the rising affluence of its citizens, and its expanding industrial activity have created new and ever-mounting problems involving disposal of garbage, refuse, and solid waste materials resulting from domestic, agricultural, and industrial activities.
     (2) Traditional methods of disposing of solid wastes in this state are no longer adequate to meet the ever-increasing problem. Improper methods and practices of handling and disposal of solid wastes pollute our land, air and water resources, blight our countryside, adversely affect land values, and damage the overall quality of our environment.
     (3) Considerations of natural resource limitations, energy shortages, economics and the environment make necessary the development and implementation of solid waste recovery and/or recycling plans and programs.
     (4) Waste reduction must become a fundamental strategy of solid waste management. It is therefore necessary to change manufacturing and purchasing practices and waste generation behaviors to reduce the amount of waste that becomes a governmental responsibility.
     (5) Source ((separation of waste must become a fundamental strategy of solid waste management. Collection and handling strategies should have, as an ultimate goal, the source)) separation of all materials with resource value or environmental hazard is necessary to protect human health and the environment.
     (6)(a) It should be the goal of every person and business to minimize their production of wastes and to separate recyclable or hazardous materials from mixed waste.
     (b) It is the responsibility of state, county, and city governments to provide for a waste management infrastructure to fully implement waste reduction and source separation strategies and to process and dispose of remaining wastes in a manner that is environmentally safe and economically sound. It is further the responsibility of state, county, and city governments to monitor the cost-effectiveness and environmental safety of combusting separated waste, processing mixed municipal solid waste, and recycling programs.
     (c) It is the responsibility of county and city governments to assume primary responsibility for solid waste management and to develop and implement aggressive and effective waste reduction and source separation strategies.
     (d) It is the responsibility of state government to ensure that local governments are providing adequate source reduction and separation opportunities and incentives to all, including persons in both rural and urban areas, and nonresidential waste generators such as commercial, industrial, and institutional entities, recognizing the need to provide flexibility to accommodate differing population densities, distances to and availability of recycling markets, and collection and disposal costs in each community; and to provide county and city governments with adequate technical resources to accomplish this responsibility.
     (7) Environmental and economic considerations in solving the state's solid waste management problems requires strong consideration by local governments of regional solutions and intergovernmental cooperation.
     (8) The following priorities for the collection, handling, and management of solid waste are necessary and should be followed in descending order as applicable:
     (a) Waste reduction;
     (b) Recycling, with source separation of recyclable materials as the preferred method;
     (c) Energy recovery, incineration, or landfill of separated waste;
     (d) Energy recovery, incineration, or landfill of mixed municipal solid wastes.
     (9) It is the state's goal to achieve a fifty percent recycling rate by 2007.
     (10) It is the state's goal that programs be established to eliminate residential or commercial yard debris in landfills by 2012 in those areas where alternatives to disposal are readily available and effective.
     (11) Steps should be taken to make recycling at least as affordable and convenient to the ratepayer as mixed waste disposal.
     (12) It is necessary to compile and maintain adequate data on the types and quantities of solid waste that are being generated and to monitor how the various types of solid waste are being managed.
     (13) Vehicle batteries should be recycled and the disposal of vehicle batteries into landfills or incinerators should be discontinued.
     (14) Excessive and nonrecyclable packaging of products should be avoided.
     (15) Comprehensive education should be conducted throughout the state so that people are informed of the need to reduce, source separate, and recycle solid waste.
     (16) All governmental entities in the state should set an example by implementing aggressive waste reduction and recycling programs at their workplaces and by purchasing products that are made from recycled materials and are recyclable.
     (17) To ensure the safe and efficient operations of solid waste disposal facilities, it is necessary for operators and regulators of landfills and incinerators to receive training and certification.
     (18) It is necessary to provide adequate funding to all levels of government so that successful waste reduction and recycling programs can be implemented.
     (19) The development of stable and expanding markets for recyclable materials is critical to the long-term success of the state's recycling goals. Market development must be encouraged on a state, regional, and national basis to maximize its effectiveness. The state shall assume primary responsibility for the development of a multifaceted market development program to carry out the purposes of this act.
     (20) There is an imperative need to anticipate, plan for, and accomplish effective storage, control, recovery, and recycling of discarded tires and other problem wastes with the subsequent conservation of resources and energy.

NEW SECTION.  Sec. 302   A new section is added to chapter 70.95 RCW to read as follows:
     (1) It is the responsibility of every person and business to minimize their production of wastes, to separate recyclable or hazardous materials from mixed waste, and to participate in available materials collection programs.
     (2) It is the responsibility of state, county, and city governments to provide for a waste management infrastructure to fully implement waste reduction and source separation strategies and to process and dispose of remaining wastes in a manner that is environmentally safe and economically sound. It is further the responsibility of state, county, and city governments to monitor the cost-effectiveness and environmental safety of combusting separated waste, processing mixed municipal solid waste, and recycling programs.
     (3) It is the responsibility of county and city governments to assume primary responsibility for solid waste management and to develop and implement aggressive and effective waste reduction and source separation strategies.
     (4) It is the responsibility of state government: To ensure that local governments are providing adequate source reduction and separation opportunities and incentives to all, including persons in both rural and urban areas, and nonresidential waste generators such as commercial, industrial, and institutional entities, recognizing the need to provide flexibility to accommodate differing population densities, distances to and availability of recycling markets, and collection and disposal costs in each community; and to provide county and city governments with adequate technical resources to accomplish this responsibility.
     (5) Environmental and economic considerations in solving the state's solid waste management problems require strong consideration by local governments of regional solutions and intergovernmental cooperation.

NEW SECTION.  Sec. 303   A new section is added to chapter 70.95 RCW to read as follows:
     The following priorities are established for the collection, handling, and management of solid waste to be followed in descending order as applicable:
     (1) Waste reduction;
     (2) Recycling, with source separation of recyclable materials as the preferred method;
     (3) Energy recovery, incineration, or landfill of separated waste;
     (4) Energy recovery, incineration, or landfill of mixed municipal solid wastes.

NEW SECTION.  Sec. 304   A new section is added to chapter 70.95 RCW to read as follows:
     (1) It is the state's goal to achieve an eighty percent recycling rate by 2020.
     (2) To accomplish this goal, it is the solid waste management strategy of the state that source separation of recyclable materials and products, organic material, and wastes be practiced by all persons and collection services be provided to all residents to eliminate disposal of recyclable, compostable, and disgestable materials and ensure their reutilization.
     (3) It is the state's goal that programs be established to eliminate residential or commercial yard debris in landfills by 2012 in those areas where alternatives to disposal are readily available and effective.
     (4) Steps should be taken to make recycling at least as affordable and convenient to the ratepayer as mixed waste disposal.
     (5) It is necessary to compile and maintain adequate data on the types and quantities of solid waste that are being generated and to monitor the effectiveness of these goals and strategies.
     (6) Vehicle batteries must be recycled and the disposal of vehicle batteries into landfills or incinerators must be discontinued.
     (7) Excessive and nonrecyclable packaging of products should be avoided.
     (8) Comprehensive education must be conducted throughout the state so that people are informed of the requirements to reduce, source separate, and recycle solid waste.
     (9) Governmental entities in the state shall participate in source reduction, source separation, and recycling programs in the various communities where they are located, unless governmental entities have already established waste reduction and recycling programs that achieve equal or greater rates of material diversion.
     (10) All governmental entities shall purchase products that are made from recycled materials and are recyclable.
     (11) To ensure the safe and efficient operations of solid waste disposal facilities, it is necessary for operators and regulators of landfills and incinerators to receive training and certification.
     (12) It is necessary to provide adequate funding to all levels of government so that successful waste reduction and recycling programs can be implemented.
     (13) The development of stable and expanding markets for recyclable materials is critical to the long-term success of the state's recycling goals. Market development must be encouraged on a state, regional, and national basis to maximize its effectiveness. The state shall assume primary responsibility for the development of a multifaceted market development program to carry out the purposes of this act.
     (14) There is an imperative need to anticipate, plan for, and accomplish effective storage, control, recovery, and recycling of discarded tires and other problem wastes with the subsequent conservation of resources and energy.

Sec. 305   RCW 70.95.020 and 2005 c 394 s 2 are each amended to read as follows:
     The purpose of this chapter is to establish a comprehensive statewide program ((for)) to manage solid waste ((handling, and solid waste recovery and/or recycling)), which will prevent land, air, and water pollution and conserve the natural, economic, and energy resources of this state. To this end it is the purpose of this chapter:
     (1) To assign primary responsibility for adequate solid waste handling to local government, reserving to the state, however, those functions necessary to assure effective programs throughout the state;
     (2) To provide for adequate planning for solid waste handling by local government;
     (3) To provide for the adoption and enforcement of basic minimum performance standards for solid waste handling, including that all sites where recyclable materials are generated and transported from shall provide a separate container for solid waste;
     (4) To encourage the development and operation of waste recycling facilities needed to accomplish the management priority of waste recycling, to promote consistency in the requirements for such facilities throughout the state, and to ensure that recyclable materials diverted from the waste stream for recycling are routed to facilities in which recycling occurs;
     (5) To provide technical and financial assistance to local governments in the planning, development, and conduct of solid waste handling programs;
     (6) To encourage storage, proper disposal, and recycling of discarded vehicle tires and to stimulate private recycling programs throughout the state; ((and))
     (7) To encourage the development and operation of waste recycling facilities and activities needed to accomplish the management priority of waste recycling and to promote consistency in the permitting requirements for such facilities and activities throughout the state((.
     It is the intent of the legislature that
)); and
     (8) To encourage
local governments ((be encouraged)) to use the expertise of private industry and to contract with private industry to the fullest extent possible to carry out solid waste recovery and/or recycling programs.

Sec. 306   RCW 70.95.030 and 2004 c 101 s 1 are each amended to read as follows:
     ((As used in)) The definitions in this section apply throughout this chapter((,)) unless the context ((indicates)) clearly requires otherwise((:)).
     (1) "Anaerobic digestion" means a process in which microorganisms break down biodegradable material in the absence of oxygen, resulting in the production of methane and carbon dioxide rich biogas suitable for energy production or use as fuel and nutrients in the effluent that can be used as fertilizer.
     (2)
"City" means every incorporated city and town.
     (((2))) (3) "Collection services" means services provided as universal residential collection and comprehensive commercial collection.
     (4)
"Commission" means the utilities and transportation commission.
     (((3))) (5) "Committee" means the state solid waste advisory committee.
     (((4))) (6) "Composted material" means organic solid waste that has been subjected to controlled aerobic degradation at a solid waste facility in compliance with the requirements of this chapter. Natural decay of organic solid waste under uncontrolled conditions does not result in composted material.
     (((5))) (7) "Comprehensive commercial collection" means the services provided to commercial generators in the state to collect source separated recyclable materials and products, organic materials, and wastes separately. Commercial generators may transport recyclable materials or organic materials themselves or may secure recycling services from any transporter of recyclable materials or recycling business in the state registered under this chapter.
     (8)
"Department" means the department of ecology.
     (((6))) (9) "Director" means the director of the department of ecology.
     (((7))) (10) "Disposal site" means the location where any final treatment, utilization, processing, or deposit of solid waste occurs.
     (((8))) (11) "Energy recovery" means a process operating under federal and state environmental laws and regulations for converting solid waste into usable energy and for reducing the volume of solid waste.
     (((9))) (12) "Functional standards" means criteria for solid waste handling expressed in terms of expected performance or solid waste handling functions.
     (((10))) (13) "Incineration" means a process of reducing the volume of solid waste operating under federal and state environmental laws and regulations by use of an enclosed device using controlled flame combustion.
     (((11))) (14) "Inert waste landfill" means a landfill that receives only inert waste, as determined under RCW 70.95.065, and includes facilities that use inert wastes as a component of fill.
     (((12))) (15) "Jurisdictional health department" means city, county, city-county, or district public health department.
     (((13))) (16) "Landfill" means a disposal facility or part of a facility at which solid waste is placed in or on land and which is not a land treatment facility.
     (((14))) (17) "Local government" means a city, town, or county.
     (((15))) (18) "Modify" means to substantially change the design or operational plans including, but not limited to, removal of a design element previously set forth in a permit application or the addition of a disposal or processing activity that is not approved in the permit.
     (((16))) (19) "Multiple family residence" means any structure housing two or more dwelling units.
     (((17))) (20) "Person" means individual, firm, association, copartnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever.
     (((18))) (21) "Recyclable materials" means those solid wastes that are separated for recycling or reuse((, such as papers, metals, and glass, that are identified as recyclable material pursuant to)) within a local comprehensive solid waste plan according to RCW 70.95.080. Prior to the adoption of the local comprehensive solid waste plan, adopted pursuant to RCW 70.95.110(2), local governments may identify additional recyclable materials by ordinance ((from July 23, 1989)).
     (((19))) (22) "Recycling" means transforming or remanufacturing waste materials into usable or marketable materials for use other than landfill disposal or incineration.
     (((20))) (23) "Residence" means the regular dwelling place of an individual or individuals.
     (((21))) (24) "Sewage sludge" means a semisolid substance consisting of settled sewage solids combined with varying amounts of water and dissolved materials, generated from a wastewater treatment system, that does not meet the requirements of chapter 70.95J RCW.
     (((22))) (25) "Soil amendment" means any substance that is intended to improve the physical characteristics of the soil, except composted material, commercial fertilizers, agricultural liming agents, unmanipulated animal manures, unmanipulated vegetable manures, food wastes, food processing wastes, and materials exempted by rule of the department, such as biosolids as defined in chapter 70.95J RCW and wastewater as regulated in chapter 90.48 RCW.
     (((23))) (26) "Solid waste" or "wastes" means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction wastes, abandoned vehicles or parts thereof, and recyclable materials.
     (((24))) (27) "Solid waste handling" means the management, storage, collection, transportation, treatment, utilization, processing, and final disposal of solid wastes, including the recovery and recycling of materials from solid wastes, the recovery of energy resources from solid wastes or the conversion of the energy in solid wastes to more useful forms or combinations thereof.
     (((25))) (28) "Source separation" means the separation of ((different kinds of solid waste at the place where the waste originates)) recyclable materials and products and organic materials from mixed solid waste at the place where those materials are generated.
     (((26))) (29) "Universal residential collection" means the services required to be provided throughout the state to collect source separated recyclable materials and products, organic materials, and wastes separately. These services must be provided at all single family and multifamily dwellings through collection companies as required under chapter 81.77 RCW and municipal collection services provided under RCW 35.21.152 and chapter 35.67 RCW except in those areas of the state that are excluded in RCW 70.95.110(3).
     (30)
"Vehicle" includes every device physically capable of being moved upon a public or private highway, road, street, or watercourse and in, upon, or by which any person or property is or may be transported or drawn upon a public or private highway, road, street, or watercourse, except devices moved by human or animal power or used exclusively upon stationary rails or tracks.
     (((27))) (31) "Waste-derived soil amendment" means any soil amendment as defined in this chapter that is derived from solid waste as defined in ((RCW 70.95.030)) this section, but does not include biosolids or biosolids products regulated under chapter 70.95J RCW or wastewaters regulated under chapter 90.48 RCW.
     (((28))) (32) "Waste reduction" means reducing the amount or toxicity of waste generated or reusing materials or products without processing.
     (((29))) (33) "Yard debris" means plant material commonly created in the course of maintaining yards and gardens, and through horticulture, gardening, landscaping, or similar activities. Yard debris includes but is not limited to grass clippings, leaves, branches, brush, weeds, flowers, roots, windfall fruit, vegetable garden debris, holiday trees, and tree prunings ((four)) six inches or less in diameter.

Sec. 307   RCW 70.95.080 and 1985 c 448 s 17 are each amended to read as follows:
     (1) Each county within the state, in cooperation with the various cities located within such county, shall prepare a coordinated, comprehensive solid waste management plan. Such plan may cover two or more counties. The purpose is to plan for solid waste and materials reduction, collection, handling and management services, and programs throughout the state, as designed to meet the unique needs of each county and city in the state. The objective of local comprehensive plans is to ensure the following required handling methods or services occur:
     (a) Source separation of recyclable materials and products, organic materials, and wastes by generators;
     (b) Collection of source separated materials;
     (c) Handling and proper preparation of materials for reuse or recycling;
     (d) Handling and proper preparation of organic materials for composting or anaerobic digestion; and
     (e) Handling and proper disposal of nonrecyclable wastes.
     (2) At a minimum, each plan must identify methods used to address the following:
     (a) Construction and demolition waste for recycling or reuse;
     (b) Organic material, including yard debris, food waste, and food contaminated paper products, for composting or anaerobic digestion;
     (c) Recoverable paper products for recycling;
     (d) Container metals, container glass, and plastics for recycling; and
     (e) Waste reduction strategies.
     (3)
Each city shall:
     (((1))) (a) Prepare and deliver to the county auditor of the county in which it is located its plan for its own solid waste management for integration into the comprehensive county plan; or
     (((2))) (b) Enter into an agreement with the county pursuant to which the city shall participate in preparing a joint city-county plan for solid waste management; or
     (((3))) (c) Authorize the county to prepare a plan for the city's solid waste management for inclusion in the comprehensive county plan.
     (4) Two or more cities may prepare a plan for inclusion in the county plan. With prior notification of its home county of its intent, a city in one county may enter into an agreement with a city in an adjoining county, or with an adjoining county, or both, to prepare a joint plan for solid waste management to become part of the comprehensive plan of both counties.
     (5) After consultation with representatives of the cities and counties, the department shall establish a schedule for the development of the comprehensive plans for solid waste management. In preparing such a schedule, the department shall take into account the probable cost of such plans to the cities and counties.
     (6) Local governments shall not be required to include a hazardous waste element in their solid waste management plans.

Sec. 308   RCW 70.95.090 and 1991 c 298 s 3 are each amended to read as follows:
     Each county and city comprehensive solid waste management plan shall include the following:
     (1) A detailed inventory and description of all existing solid waste handling facilities including an inventory of any deficiencies in meeting current solid waste handling needs.
     (2) The estimated long-range needs for solid waste handling facilities projected twenty years into the future.
     (3) A program for the orderly development of solid waste handling facilities in a manner consistent with the plans for the entire county which shall:
     (a) Meet the minimum functional standards for solid waste handling adopted by the department and all laws and regulations relating to air and water pollution, fire prevention, flood control, and protection of public health;
     (b) Take into account the comprehensive land use plan of each jurisdiction;
     (c) Contain a six year construction and capital acquisition program for solid waste handling facilities; and
     (d) Contain a plan for financing both capital costs and operational expenditures of the proposed solid waste management system.
     (4) A program for surveillance and control.
     (5) A current inventory and description of solid waste collection needs and operations within each respective jurisdiction which shall include:
     (a) Any franchise for solid waste collection granted by the utilities and transportation commission in the respective jurisdictions including the name of the holder of the franchise and the address of his or her place of business and the area covered by the franchise;
     (b) Any city solid waste operation within the county and the boundaries of such operation;
     (c) The population density of each area serviced by a city operation or by a franchised operation within the respective jurisdictions;
     (d) The projected solid waste collection needs for the respective jurisdictions for the next six years.
     (6) A comprehensive waste reduction and recycling element that, in accordance with the priorities established in ((RCW 70.95.010)) section 303 of this act, provides programs that (a) reduce the amount of waste generated, (b) ((provide incentives and mechanisms for)) require source separation, and (c) establish reuse and recycling opportunities for the source separated ((waste)) recyclable materials and products and organic materials.
     (7) The waste reduction and recycling element shall include the following:
     (a) Waste reduction strategies;
     (b) Source separation strategies, including:
     (i) In counties identified under RCW 70.95.110(2), programs for the collection of source separated materials from residences in urban and rural areas. In urban areas, these programs shall include collection of source separated recyclable materials and products, organic materials, and wastes from single and multiple family residences((, unless the department approves an alternative program, according to the criteria in the planning guidelines. Such criteria shall include: Anticipated recovery rates and levels of public participation, availability of environmentally sound disposal capacity, access to markets for recyclable materials, unreasonable cost impacts on the ratepayer over the six-year planning period, utilization of environmentally sound waste reduction and recycling technologies, and other factors as appropriate)). In rural areas, these programs shall include but not be limited to drop-off boxes, buy-back centers, or a combination of both, at each solid waste transfer, processing, or disposal site, or at locations convenient to the residents of the county. The drop-off boxes and buy-back centers may be owned or operated by public, nonprofit, or private persons;
     (ii) Programs to monitor the collection of source separated ((waste at nonresidential sites where there is sufficient density to sustain a program)) recyclable materials and products, organic materials, and wastes; and
     (iii) ((Programs to collect yard waste, if the county or city submitting the plan finds that there are adequate markets or capacity for composted yard waste within or near the service area to consume the majority of the material collected; and
     (iv)
)) Programs to educate ((and promote the concepts of)) rate payers and other generators about waste reduction and recycling and the collection programs available within the jurisdiction;
     (c) ((Recycling strategies, including a description of markets for recyclables,)) A review of waste generation trends((,)) and a description of waste composition((,));
     (d) A
discussion and description of existing programs and any additional programs needed to assist public and private sector ((recycling, and)) participation in source separation and collection programs and services;
     (e) A description of the comprehensive commercial collection services available to commercial generators and new services that will be needed in order to provide those services to those without services available;
     (f) A plan to direct construction and demolition recyclable materials to recycling facilities for materials recovery to the extent achievable;
     (g) A
n implementation schedule for the ((designation of specific materials to be collected for recycling, and for the provision of recycling)) provision of collection services; and
     (((d))) (h) Other information the county or city submitting the plan determines is necessary.
     (8) ((An assessment of the plan's impact on the costs of solid waste collection. The assessment shall be prepared in conformance with guidelines established by the utilities and transportation commission. The commission shall cooperate with the Washington state association of counties and the association of Washington cities in establishing such guidelines.
     (9)
)) A review of potential areas that meet the criteria as outlined in RCW 70.95.165.

Sec. 309   RCW 70.95.092 and 1989 c 431 s 4 are each amended to read as follows:
     Levels of collection service shall be defined in the waste reduction and recycling element of each local comprehensive solid waste management plan and shall include the services set forth in RCW 70.95.090 and service areas as required in RCW 70.95.110. ((In determining which service level is provided to residential and nonresidential waste generators in each community, counties and cities shall develop clear criteria for designating areas as urban or rural. In designating urban areas, local governments shall consider the planning guidelines adopted by the department, total population, population density, and any applicable land use or utility service plans.))

Sec. 310   RCW 70.95.100 and 1989 c 431 s 6 are each amended to read as follows:
     (1) The department or the commission, as appropriate, shall provide to counties and cities technical assistance including, but not limited to, planning guidelines, in the preparation, review, and revision of local comprehensive solid waste management plans required by this chapter. Guidelines prepared under this section shall be consistent with the provisions of this chapter. Guidelines for the preparation of the waste reduction and recycling element of the comprehensive solid waste management plan shall be completed by the department by ((March 15, 1990)) July 1, 2010. ((These guidelines shall provide recommendations to local government on materials to be considered for designation as recyclable materials.)) The state solid waste management plan prepared pursuant to RCW 70.95.260 shall be consistent with these guidelines.
     (2) The department shall be responsible for development and implementation of a comprehensive statewide public information program designed to ((encourage waste reduction, source separation, and recycling by the public)) inform the public about the waste reduction, source separation, recycling, and universal collection requirements of this chapter. The department shall operate a toll free hot line to provide the public information on waste reduction and recycling.
     (3) The department shall provide technical assistance to local governments in the development and dissemination of informational materials and related activities to assure recognition of unique local waste reduction and recycling programs.
     (4) Local governments shall make all materials and information developed with the assistance grants provided under RCW 70.95.130 available to the department for potential use in other areas of the state.
     (5) The department shall provide model ordinances to local governments to address construction and demolition waste and recyclable materials.

Sec. 311   RCW 70.95.110 and 1991 c 298 s 4 are each amended to read as follows:
     (1)(a) The local comprehensive ((county)) solid waste management plans ((and any comprehensive city solid waste management plans)) prepared in accordance with RCW 70.95.080 shall be maintained in a current condition and reviewed and revised periodically by counties and cities as may be required by the department. Upon each review such plans shall be extended to show long-range needs for solid waste handling facilities for twenty years in the future, and a revised construction and capital acquisition program for six years in the future. Each revised solid waste management plan shall be submitted to the department.
     (b) Each plan shall be reviewed and revised within five years of July 1, ((1984)) 2010, and thereafter shall be reviewed every five years, and revised if necessary according to the schedule provided in subsection (2) of this section.
     (2) ((Cities and counties preparing solid waste management plans shall submit the waste reduction and recycling element required in RCW 70.95.090 and any revisions to other elements of its comprehensive solid waste management plan to the department no later than:
     (a) July 1, 1991, for class one areas: PROVIDED, That portions relating to multiple family residences shall be submitted no later than July 1, 1992;
     (b) July 1, 1992, for class two areas; and
     (c) July 1, 1994, for class three areas.
     Thereafter, each plan shall be reviewed and revised, if necessary, at least every five years. Nothing in chapter 431, Laws of 1989 shall prohibit local governments from submitting a plan prior to the dates listed in this subsection
)) The updated plans are due according to the planning schedule in this subsection and must include a description of collection services for all contiguous incorporated and unincorporated areas with a population density of three hundred thirty-three persons per square mile:
     (a) July 1, 2011, for the counties of Clark, King, Kitsap, Pierce, Snohomish, and Spokane and all the cities therein;
     (b) July 1, 2012, for the counties of Benton, Franklin, Walla Walla, and Yakima and all the cities therein;
     (c) July 1, 2013, for the counties of Cowlitz, Grays Harbor, Island, Lewis, Mason, Skagit, Thurston, and Whatcom and all the cities therein; and
     (d) July 1, 2014, for the counties of Chelan, Clallam, and Grant and all the cities therein
.
     (3) ((The classes of areas are defined as follows:
     (a) Class one areas are the counties of Spokane, Snohomish, King, Pierce, and Kitsap and all the cities therein.
     (b) Class two areas are all other counties located west of the crest of the Cascade mountains and all the cities therein.
     (c) Class three areas are the counties east of the crest of the Cascade mountains and all the cities therein, except for Spokane county
)) (a) Participation in source separation and collection services as required by this chapter is optional for:
     (i) The counties of Adams, Asotin, Douglas, Ferry, Garfield, Jefferson, Kittitas, Klickitat, Whitman, Lincoln, Pacific, Pend Oreille, Okanogan, Columbia, San Juan, Skamania, Stevens, and Wahkiakum. This does not exempt these planning jurisdictions from reviewing and updating as necessary their plans at least every five years; and
     (ii) Any city with a population of one thousand five hundred or less that is only bordered by an unincorporated area of a county within the counties required to write plan updates.
     (b) If these jurisdictional areas do choose to participate, their plans are due by July 1, 2016
.
     (4) Cities and counties shall begin implementing the programs to collect source separated materials no later than one year following the adoption and approval of the waste reduction and recycling element and these programs shall be fully implemented within two years of approval.

Sec. 312   RCW 70.95.167 and 1991 c 319 s 402 are each amended to read as follows:
     (1) Each local solid waste advisory committee shall conduct one or more meetings for the purpose of determining how local private recycling and solid waste collection businesses may participate in the development and implementation of programs to collect source separated materials from residences, and to process and market materials collected for recycling. The meetings shall include local private recycling businesses, private solid waste collection companies operating within the jurisdiction, and the local solid waste planning agencies. The meetings shall be held during the development of the waste reduction and recycling element or no later than one year prior to the date that a jurisdiction is required (([to])) to submit the element under RCW 70.95.110(2).
     (2) The meeting requirement under subsection (1) of this section shall apply whenever a city or county develops or amends the waste reduction and recycling element required under this chapter. Jurisdictions having approved waste reduction and recycling elements or having initiated a process for the selection of a service provider as of May 21, 1991, do not have to comply with the requirements of subsection (1) of this section until the next revisions to the waste reduction and recycling element are made or required.
     (3) After the waste reduction and recycling element is approved by the local legislative authority but before it is submitted to the department for approval, the local solid waste advisory committee shall hold at least one additional meeting to review the element.
     (4) For the purpose of this section, "private recycling business" means any private for-profit or private not-for-profit business that engages in the processing and marketing of recyclable materials or reclaiming materials and usable products for reuse.

Sec. 313   RCW 70.95.212 and 1993 c 300 s 3 are each amended to read as follows:
     To provide solid waste collection companies with sufficient time to prepare and submit tariffs and rate filings for public comment and commission approval, the owner or operator of a materials recovery facility, transfer station, landfill, or facility used to burn solid waste shall provide seventy-five days' notice to solid waste collection companies of any change in tipping fees and disposal rate schedules. The notice period shall begin on the date individual notice to a collection company is delivered to the company or is postmarked.
     A collection company may agree to a shorter notice period: PROVIDED, That such agreement by a company shall not affect the notice requirements for rate filings under RCW 81.28.050.
     The owner of a materials recovery facility, transfer station, landfill, or facility used to burn solid waste may agree to provide companies with a longer notice period.
     "Solid waste collection companies" as used in this section means the companies regulated by the commission pursuant to chapter 81.77 RCW.

Sec. 314   RCW 70.95.260 and 1995 c 399 s 189 are each amended to read as follows:
     The department shall in addition to its other powers and duties:
     (1) Cooperate with the appropriate federal, state, interstate and local units of government and with appropriate private organizations in carrying out the provisions of this chapter.
     (2) Coordinate the development of a solid waste management plan for all areas of the state in cooperation with local government, the department of community, trade, and economic development, and other appropriate state and regional agencies. The plan shall relate to solid waste management for twenty years in the future and shall be reviewed biennially, revised as necessary, and extended so that perpetually the plan shall look to the future for twenty years as a guide in carrying out a state coordinated solid waste management program. The plan shall be developed into a single integrated document and shall be adopted no later than ((October 1990)) July 1, 2010. The plan shall be revised ((regularly)) at least every five years after its initial completion so that local governments revising local comprehensive solid waste management plans can take advantage of the data and analysis in the state plan.
     (3) Provide technical assistance to any person as well as to cities, counties, and industries.
     (4) Initiate, conduct, and support research, demonstration projects, and investigations, and coordinate research programs pertaining to solid waste management systems.
     (5) Develop statewide programs to increase public awareness of and participation in tire recycling, and to stimulate and encourage local private tire recycling centers and public participation in tire recycling.
     (6) May, under the provisions of the administrative procedure act, chapter 34.05 RCW, as now or hereafter amended, from time to time promulgate such rules and regulations as are necessary to carry out the purposes of this chapter.

Sec. 315   RCW 70.95.263 and 1998 c 245 s 131 are each amended to read as follows:
     The department shall in addition to its other duties and powers under this chapter:
     (1) Prepare the following:
     (a) ((A management system for recycling waste paper generated by state offices and institutions in cooperation with such offices and institutions;
     (b)
)) An evaluation of existing and potential systems for recovery of energy and materials from solid waste with recommendations to affected governmental agencies as to those systems which would be the most appropriate for implementation;
     (((c))) (b) A data management system to evaluate and assist the progress of state and local jurisdictions and private industry in ((resource recovery)) meeting the goals and objectives of section 304 of this act;
     (((d))) (c) Identification of potential markets, in cooperation with private industry, for recovered resources and the impact of the distribution of such resources on existing markets;
     (((e))) (d) Studies on methods of transportation, collection, reduction, separation, and packaging which will encourage more efficient utilization of existing ((waste recovery)) management and materials reuse and recycling facilities;
     (((f))) (e) Recommendations on incentives, including state grants, loans, and other assistance, to local governments which will ((encourage the recovery)) increase the reduction, reuse, and recycling of solid wastes.
     (2) Provide technical information and assistance to state and local jurisdictions, the public, and private industry on source separation, solid waste ((recovery and/or)) reduction, management, and materials recycling.
     (3) Procure and expend funds available from federal agencies and other sources to assist the implementation by local governments of solid waste recovery and/or recycling programs, and projects.
     (4) Conduct necessary research and studies to carry out the purposes of this chapter.
     (5) ((Encourage and assist local governments and private industry to develop pilot solid waste recovery and/or recycling projects.
     (6)
)) Monitor, assist with research, and collect data for use in assessing feasibility for others to develop solid waste ((recovery and/or)) reduction, management, reuse, and recycling projects.

Sec. 316   RCW 70.95.285 and 1988 c 184 s 2 are each amended to read as follows:
     The comprehensive, statewide solid waste stream analysis under RCW 70.95.280 shall be based on representative solid waste generation areas and solid waste generation sources within the state. The following information and evaluations shall be included:
     (1) Solid waste generation rates for each category;
     (2) The rate of recycling being achieved within the state for each category of solid waste;
     (3) The current and potential rates of solid waste reduction within the state;
     (4) Greenhouse gas reductions potentially available and greenhouse gas reductions realized through reduction, reuse, and recycling of solid wastes;
     (5)
A technological assessment of current solid waste reduction and recycling methods and systems, including cost/benefit analyses;
     (((5) An assessment of the feasibility of segregating solid waste at: (a) The original source, (b) transfer stations, and (c) the point of final disposal;))
     (6) A review of methods that will increase the rate of solid waste reduction; and
     (7) An assessment of new and existing technologies that are available for solid waste management including an analysis of the associated environmental risks and costs.
     The data required by the analysis under this section shall be ((kept current)) updated at least every four years and shall be available to local governments and the waste management industry.

Sec. 317   RCW 81.77.185 and 2002 c 299 s 6 are each amended to read as follows:
     (1) The commission shall allow solid waste collection companies collecting recyclable materials to retain up to thirty percent of the revenue paid to the companies for the material if the companies submit a plan to the commission that is certified by the appropriate local government authority as being consistent with the local government solid waste plan and that demonstrates how the revenues will be used to increase recycling. The remaining revenue shall be passed to residential customers.
     (2) By December 2, ((2005)) 2013, the commission shall provide a report to the legislature that evaluates:
     (a) The effectiveness of revenue sharing as an incentive to increase recycling in the state; and
     (b) The effect of revenue sharing on costs to customers.

NEW SECTION.  Sec. 318   The legislature finds that:
     (1) Convenient and environmentally sound product stewardship programs that include collecting, transporting, and recycling of unwanted products will help protect Washington's environment and the health of state residents;
     (2) Product producers should finance and provide these programs. The programs are intended to encourage producers to design products that have a lower carbon footprint, are less toxic and energy and material intensive, and are more reusable or recyclable than other products; and
     (3) It is appropriate to designate the products specified in section 333 of this act as covered products that are subject to product stewardship programs.

NEW SECTION.  Sec. 319   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Brand" means a name, symbol, word, or mark that identifies a product, rather than its components, and attributes the covered product to the owner of the brand as the producer.
     (2) "Covered entity" means an entity, such as a resident or small business, that can use a product stewardship program to discard an unwanted product.
     (3) "Covered product" means a product designated by the department as covered by this chapter under section 335 of this act, either individually or as an item within a covered product category. "Covered product" includes all materials that make up a covered product.
     (4) "Covered product category" means a group of similar products designated by the department as covered by this chapter under section 335 of this act.
     (5) "Department" means the department of ecology.
     (6) "Final disposition" means the point beyond which no further action takes place and materials from an unwanted product are either in a form capable of direct use as a feedstock in producing new products or disposed of or managed in permitted facilities.
     (7) "Hazardous substances" or "hazardous materials" means those substances or materials identified under rules adopted under the state hazardous waste management act, chapter 70.105 RCW.
     (8) "Organization" includes a sole proprietorship, partnership, corporation, nonprofit corporation or organization, limited liability company, firm, association, cooperative, or other legal entity located within or outside Washington state.
     (9) "Orphan product" means a covered product that lacks a producer's brand, or for which the producer is no longer in business and has no successor in interest, or that bears a brand for which the department cannot identify an owner.
     (10) "Processing" means recovering materials from unwanted products for use as feedstock in new products.
     (11) "Producer" means a person who:
     (a) Has legal ownership of the brand, brand name, or cobrand of a covered product sold in or into Washington state;
     (b) Imports a covered product branded by a producer that meets (a) of this subsection and where that producer has no physical presence in the United States;
     (c) If (a) and (b) of this subsection do not apply, makes an unbranded product that is sold in or into Washington state; or
     (d) Sells at wholesale or retail a covered product, does not have legal ownership of the brand, and elects to fulfill the responsibilities of the producer for that product.
     (12) "Product stewardship" means a requirement for a producer of a covered product to manage and reduce adverse safety, health, and environmental impacts of the covered product throughout its life cycle.
     (13) "Product stewardship plan" or "plan" means a detailed plan describing the manner in which a product stewardship program will be implemented.
     (14) "Product stewardship program" or "program" means a program financed and provided by producers of covered products that addresses product stewardship and includes collecting, transporting, reuse processing, and final disposition of unwanted products, including a fair share of orphan products.
     (15) "Recycling" means transforming or remanufacturing unwanted products into usable or marketable materials for use other than landfill disposal or incineration. Recycling does not include energy recovery or energy generation by means of combusting unwanted products with or without other waste.
     (16) "Reporting period" means the period commencing January 1st and ending December 31st in the same calendar year.
     (17) "Residuals" means nonrecyclable materials left over from processing an unwanted product.
     (18) "Reuse" means a change in ownership of a covered product or its components and parts for use in the same manner and purpose for which it was originally purchased.
     (19) "Stakeholder" means a person who may have an interest in or be affected by a product stewardship program.
     (20) "Stewardship organization" means an organization designated by a producer to act as an agent on behalf of the producer to operate a product stewardship program.
     (21) "Unwanted product" means a covered product no longer wanted by its owner or that has been abandoned, discarded, or is intended to be discarded by its owner.

NEW SECTION.  Sec. 320   (1) Every producer of a covered product sold in or into Washington state must participate in a product stewardship program for that product. Every producer must:
     (a) Operate, either individually or collectively with other producers, a product stewardship program approved by the department; or
     (b) Enter into an agreement with a stewardship organization to operate, on the producer's behalf, a product stewardship program approved by the department.
     (2) Product stewardship programs shall collect, free of charge, unwanted products from covered entities for reuse or final disposition.      (3) A producer, group of producers, or stewardship organization operating a product stewardship program shall:
     (a) Comply with a product stewardship plan approved by the department and this chapter, any rules adopted by the department to implement this chapter, and all other applicable laws and rules; and
     (b) Pay all administrative and operational costs associated with their program.
     (4) No product stewardship program required under this chapter may use federal or state prison labor for processing unwanted products.

NEW SECTION.  Sec. 321   (1) Except as provided in this section, all unwanted products that have been collected by a product stewardship program must be reused or recycled.
     (2) The department shall determine whether covered products designated by the department pursuant to the process specified in section 334 of this act are reusable or recyclable pursuant to the procedure specified in that section. In either case, if the department determines that an unwanted product is not reusable or recyclable, the product stewardship program must include a waste reduction strategy pertaining to that product. If reuse or recycling options for an unwanted product thereafter change, the department must adopt rules requiring reuse or recycling of the unwanted product.
     (3) Unwanted products that cannot be reused or recycled and residuals must be disposed of or managed in permitted facilities, including disposal or management of hazardous substances and hazardous materials in permitted hazardous waste facilities.

NEW SECTION.  Sec. 322   As of the implementation date established for a covered product designated under section 334 of this act, no producer, wholesaler, retailer, or other person may sell or offer for sale that product to any person in this state unless the producer is participating in a product stewardship program approved by the department. A person selling or offering for sale a covered product in the state shall consult the department's web site for a list of producers of that product participating in approved programs prior to selling the product in or into the state. A person is considered to have complied with this section if, on the date the person ordered a covered product from a producer or its agent, the producer was listed as having an approved program on the department's web site.

NEW SECTION.  Sec. 323   (1) A producer, group of producers, or stewardship organization operating or intending to operate a product stewardship program must, at least sixty days prior to submitting a product stewardship plan to the department under subsection (2) of this section, provide public notice of the plan it is considering for submittal. The producer, group of producers, or stewardship organization must consult with stakeholders during development of the plan, solicit stakeholder comments, and attempt to address any stakeholder concerns regarding the plan prior to submittal.
     (2) A producer, group of producers, or stewardship organization operating or intending to operate a product stewardship program must submit a product stewardship plan to the department specifying:
     (a) Information, including contact information, regarding:
     (i) The organization submitting the plan;
     (ii) A list of all participating producers; and
     (iii) If the program is to be operated by a stewardship organization, a description of management, administration, and tasks to be performed by the stewardship organization;
     (b) Recovery goals, including:
     (i) Recovery goals for the first, second, and third years of the program, expressed as pounds per capita, and an explanation of how these goals reflect a significant percentage of an unwanted product relative to the quantity of the unwanted product that may be available for reuse or recycling; and
     (ii) Plans to maximize recycling of packaging that may be collected;
     (c) A collection system, including:
     (i) Location of collection sites and other collection services to be used by the program;
     (ii) A description of the consideration given as to whether the existing curbside collection infrastructure is an appropriate collection mechanism. If the curbside collection infrastructure is not utilized by the plan, a written explanation must be provided citing the reasons that curbside collection services are not included in the plan;
     (iii) How unwanted products from all covered entities will be collected for all cities in the state with populations greater than ten thousand and in all counties of the state;
     (iv) How the collection system will be convenient and adequate to serve the needs of all covered entities in both urban and rural areas; and
     (v) How collected unwanted products will be transported to processing facilities;
     (d) A processing and disposal system, including:
     (i) Locations, permit status, and records of any penalties, violations, or regulatory orders received in the previous five years by processing and disposal facilities proposed to be used by the program;
     (ii) A third-party audit of each processing and disposal facility proposed to be used by the program for any unwanted product or residuals containing hazardous substances or hazardous materials, documenting compliance with all applicable laws, regulations, and rules;
     (iii) Policies and procedures to be followed by persons collecting, transporting, processing, and disposing of unwanted products, including how the program will ensure compliance with all applicable laws, regulations, and rules;
     (iv) A description of how unwanted products will be processed at each processing facility;
     (v) How all residuals will be disposed of or managed in permitted facilities, including disposal or management of all hazardous substances and hazardous materials in permitted hazardous waste facilities;
     (vi) How hazardous substances and hazardous materials will be safely and securely tracked and handled from collection to final disposition in compliance with this chapter, any rules adopted by the department to implement this chapter, and all other applicable laws and rules; and
     (vii) Best management practices that will be used by first processors and their downstream vendors to ensure that hazardous substances and hazardous materials are not released into the environment and will not adversely impact human health;
     (e) How the program will seek to use businesses within the state, including retailers, processing facilities, and collection and transportation services;
     (f) Greenhouse gas reductions anticipated from implementing the collection, transportation, and recycling system;
     (g) A financing system, including:
     (i) How the entire product stewardship program will be financed, including how costs will be apportioned among and assessed upon producers participating in the program;
     (ii) Financial incentives to reward product design that result in improved reuse or recycling and less toxicity where feasible;
     (iii) A plan to withhold a percentage of funds to be managed by the product stewardship program to increase markets for recyclable materials or other financial incentives to encourage market development for recyclable materials contained in covered products; and
     (iv) How those providing services for the collection, transportation, and processing systems will be fairly compensated for their services;
     (h) Strategies to manage and reduce life cycle impacts of products and packaging, from product design to end-of-life management, including ways to improve designing, packaging, and distributing products to:
     (i) Reduce waste, energy, toxicity, carbon footprints, and other environmental and health impacts;
     (ii) Increase recycled content and product longevity; and
     (iii) Make products more easily reusable or recyclable;
     (i) How the producers participating in the program will communicate with processors used by the program to encourage sustainable design of products and packaging;
     (j) Education and outreach activities, including:
     (i) An educational campaign promoting the use of the program to covered entities that includes a toll-free telephone number and web site and that is sufficient to meet required recovery rates;
     (ii) A plan for working with and providing information about the program to retailers, wholesalers, collectors, and other interested parties to disseminate to covered entities; and
     (iii) The methodology for determining how the effectiveness of the outreach activities will be measured; and
     (k) Pursuant to subsection (1) of this section, the consultation process, including:
     (i) A description of the process used to consult with stakeholders during development of the plan; and
     (ii) A summary of stakeholder comments and how any stakeholder concerns were addressed.
     (3) The department shall approve the product stewardship plan when all requirements have been met in compliance with this chapter and any rules adopted by the department to implement this chapter.
     (4) All plans submitted to the department must be made available to the public on the department's web site. Proprietary information submitted to the department under this chapter is exempt from public disclosure under RCW 42.56.270.

NEW SECTION.  Sec. 324   (1) A producer of a covered product, a group of producers, or a stewardship organization must submit a proposed product stewardship plan to the department at least one year prior to a covered product's implementation date.
     (2) Within ninety days after receiving a proposed product stewardship plan, the department shall determine whether the plan complies with this chapter and any rules adopted to implement this chapter. If it approves a plan, the department shall notify the applicant of its approval. If it rejects a plan, the department shall notify the applicant of its decision and its reasons for rejecting the plan. An applicant whose plan has been rejected by the department may submit a revised plan to the department within sixty days after receiving notice of the rejection.
     (3) At least once every four years, a producer, group of producers, or stewardship organization operating a product stewardship program must update its product stewardship plan and submit the updated plan to the department for review. The department must determine the status of an updated plan within ninety days of its submittal. If the department rejects an updated plan, the producer of a covered product participating in the product stewardship program described in the plan will be deemed to be out of compliance with this chapter.

NEW SECTION.  Sec. 325   (1) Except as provided in subsections (2) and (3) of this section, the department must grant prior approval, in writing, to any proposed change to a product stewardship plan.
     (2) Additions or changes to collection locations for unwanted products may be made without the department's prior written approval. The product stewardship program must inform the department of the additions or changes within fifteen days of the occurrence.
     (3) Additional producers may join a product stewardship program approved by the department without the department's prior written approval. The product stewardship program must inform the department of the additions within fifteen days of the occurrence.

NEW SECTION.  Sec. 326   (1) If the department determines that a product stewardship program is not being operated in compliance with the requirements of this chapter, any rules adopted by the department to implement this chapter, or any other applicable laws, regulations, or rules, or if the department determines that there is an imminent danger to the public, the department may:
     (a) Amend its approval of the program's product stewardship plan by clarifying terms or conditions to ensure full implementation of the plan; or
     (b) Suspend or cancel its approval of the plan.
     (2) At least thirty days prior to amending, suspending, or canceling its approval of a product stewardship plan, the department shall inform the producer, group of producers, or stewardship organization operating the product stewardship program of its intended action and provide them an opportunity to respond. The department may extend this period for good cause.
     (3) Notwithstanding subsection (2) of this section, if the department determines that it is necessary to protect the public from imminent danger, it may immediately amend, suspend, or cancel approval of a product stewardship program's product stewardship plan without giving the producer, group of producers, or stewardship organization operating the program an opportunity to be heard. However, the department shall give the operator an opportunity to be heard through proceedings consistent with the administrative procedure act, chapter 34.05 RCW, within fifteen days after the date on which the department takes any of those actions.

NEW SECTION.  Sec. 327   (1) On or before June 30th of each year, every producer, group of producers, or stewardship organization operating a product stewardship program must prepare and submit to the department an annual report describing the program's activities during the previous reporting period, specifying:
     (a) Information, including contact information, regarding:
     (i) The organization submitting the report; and
     (ii) A list of all participating producers;
     (b) Recovery rates, including:
     (i) The amount, by weight, of unwanted products collected from covered entities in each county in the state, including documented collection and reuse, recycling, or disposal of that material;
     (ii) How the program attained recovery rates established in the product stewardship plan or set by the department and, if the program did not attain those recovery rates, what actions it will take during the next reporting period to do so, including how it will increase and improve effective, measurable outreach and education efforts;
     (c) The collection system, including collection locations and services provided for all cities in the state with populations greater than ten thousand and in all counties in the state;
     (d) The processing and disposal system, including:
     (i) A list of processing and disposal facilities used and locations of those facilities, the weight of unwanted products processed at each processing facility and disposed at each disposal facility, and a description of the methods used at each processing facility;
     (ii) A list of subcontractors used through final disposition that processed or disposed of unwanted products containing hazardous substances or hazardous materials, and subcontractor facility locations;
     (iii) Documentation and summary results of annual third-party audits conducted on each processing facility and disposal facility as required in section 323 of this act;
     (iv) If an unwanted product is exempted from the reuse or recycling requirement in section 321 of this act, how the unwanted product was disposed of or managed in appropriate, properly permitted facilities, including disposal or management of hazardous substances or hazardous materials in appropriate, properly permitted hazardous waste facilities;
     (v) Final disposition of residuals;
     (vi) Any penalties, violations, or regulatory orders received during the reporting period by each processing facility or disposal facility that was used;
     (vii) Whether policies and procedures in the product stewardship plan for collecting, transporting, processing, and final disposition of unwanted products were followed during the reporting period, and a description of any noncompliance;
     (e) The financing system, including a description of how the system met the requirements in section 323 of this act;
     (f) The education and outreach activities implemented during the reporting period, including the effectiveness of the education and outreach activities;
     (g) Results of any actions taken to manage and reduce life cycle impacts of products and packaging, as described in section 323(2)(h) of this act;
     (h) How the product stewardship program complied with any other elements in the plan approved by the department; and
     (i) Any other information that the department may reasonably require.
     (2) A producer, group of producers, or stewardship organization operating a product stewardship program meeting the following conditions is only required to report to the department information specified in subsection (1)(a), (b), (c), (g), and (i) of this section:
     (a) All unwanted products collected by the product stewardship program neither contained hazardous substances nor hazardous materials nor used hazardous substances or hazardous materials in the production process;
     (b) The product stewardship program attained a ninety percent recovery rate of all unwanted products that were produced by producers participating in the program and a reuse or recycling rate of eighty percent of materials contained in such products; and
     (c) All unwanted products collected by the product stewardship program were carbon neutral in production and use.
     (3) All reports submitted to the department must be made available to the public on the department's web site. Proprietary information submitted to the department under this chapter is exempt from public disclosure under RCW 42.56.270.

NEW SECTION.  Sec. 328   (1) The department shall provide on its web site a list of all producers participating in product stewardship programs it has approved and a list of all producers it has identified as noncompliant with this chapter and any rules adopted to implement this chapter.
     (2) Wholesalers, retailers, and other persons shall check the department's web site to determine if producers of covered products they are selling in or into the state are compliant with this chapter and any rules adopted to implement this chapter. If a wholesaler, retailer, or other person is unsure of the status of a producer or believes that a producer is not compliant, they shall contact the department to determine the producer's status.
     (3) The department shall send a written warning and copies of this chapter and any rules adopted to implement this chapter to a producer who is not participating in a product stewardship program approved by the department and whose covered product is being sold in or into the state. The department shall also send a written warning and a copy of this chapter and any rules adopted to implement this chapter to a wholesaler, retailer, or other person known to be selling the covered product in or into the state.
     (4) A producer not participating in a product stewardship program approved by the department whose covered product continues to be sold in or into the state sixty days after receiving a written warning from the department, and a wholesaler, retailer, or other person who continues to sell a covered product from a producer not participating in an approved product stewardship program sixty days after receiving a written warning from the department, must be assessed a ten thousand dollar penalty. The department may waive or reduce the penalty if the producer, wholesaler, retailer, or other person complies with this chapter and any rules adopted to implement this chapter, or for any other reason the department determines to be justified.
     (5) The department shall send a written warning to a producer, group of producers, or stewardship organization operating a product stewardship program that fails to submit a product stewardship plan, updated plan, proposed change to a plan, or annual report as required in this chapter. The written warning must include compliance requirements and notification that the requirements must be met within sixty days. If compliance requirements are not met within sixty days, the producer, group of producers, or stewardship organization must be assessed a ten thousand dollar penalty. The department may waive or reduce the penalty if the producer, group of producers, or stewardship organization complies with this chapter and any rules adopted to implement this chapter, or for any other reason the department determines to be justified.
     (6) Each calendar day of a violation is a separate and distinct offense.

NEW SECTION.  Sec. 329   (1) By June of the third program year for each product or product category, the department shall establish required recovery rates for the fourth and subsequent program operating years, and must establish a system of penalties for producers and product stewardship programs that do not attain the required recovery rates.
     (2) By December 31, 2014, the department shall report to appropriate committees of the legislature concerning the status of the program administered under this chapter and, if necessary, recommend legislation.
     (3) The department, or its designee, may inspect, audit, or review audits of processing and disposal facilities used to fulfill the requirements of a product stewardship program.
     (4) The department shall annually invite comments from local governments, communities, and citizens to report their satisfaction with services provided by product stewardship programs. This information must be used by the department in reviewing proposed updates or changes to product stewardship plans.

NEW SECTION.  Sec. 330   The department may establish fees for administering this chapter. Fees may be charged to the producers and must be paid annually by January 1st of each year. Fees may be established in amounts to fully recover and not to exceed expenses incurred by the department in administering this chapter.

NEW SECTION.  Sec. 331   The product stewardship programs account is created in the custody of the state treasurer. All receipts from fees and penalties collected under this chapter must be deposited in the account. Expenditures from the account may be used only for administering this chapter. Only the director of the department or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 332   (1) The department shall adopt rules under the administrative procedure act, chapter 34.05 RCW, to implement this chapter including, at a minimum:
     (a) Program operating rules;
     (b) A process for designating covered products and covered product categories and for determining whether these products or product categories are reusable or recyclable;
     (c) A process for determining whether reduced reporting requirements in section 327 of this act apply;
     (d) A process for setting recovery rates for the fourth and subsequent operating years of a program and for adjusting recovery rates; and
     (e) An enforcement process.
     (2) The department shall designate covered products and covered product categories under section 334 of this act by rule. The department must provide notice to appropriate standing committees of the legislature prior to designating a covered product or covered product category.

NEW SECTION.  Sec. 333   (1) Covered product and covered product categories designated under this chapter as initial priority products include:
     (a) Carpet.
     (i) For the purposes of this section, "carpet" means fabric or textile floor covering and padding beneath the fabric and textile floor covering.
     (ii) Covered entities include all sources of postconsumer carpet including residents, businesses, governments, charities, and institutions.
     (iii) Carpet that has been collected by product stewardship programs must be reused or recycled, unless otherwise determined by the department by rule.
     (iv) Product stewardship programs for carpet must be fully implemented by July 1, 2011.
     (b) Mercury-containing lights.
     (i) For the purposes of this section, "mercury-containing lights" means lamps, bulbs, tubes, or other devices that contain mercury and provide functional illumination in homes, offices, and outdoors.
     (ii) Covered entities include residents and small businesses.
     (iii) Mercury-containing lights that have been collected by product stewardship programs must be recycled unless otherwise determined by the department by rule. Mercury and mercury-bearing residuals from recycling of general purpose lights must be retorted in properly permitted facilities. Mercury recovered from retorting must be recycled or placed in a properly permitted, monitored hazardous waste landfill, storage, or disposal repository to avoid reintroduction into the marketplace. When available, mercury recovered from retorting must be placed in a properly permitted, monitored permanent mercury repository to avoid reintroduction into the marketplace and it shall not be recycled.
     (iv) Product stewardship programs for mercury-containing lights must be fully implemented by January 1, 2011.
     (c) Out-of-service mercury-added thermostats.
     (i) For the purposes of this section, "mercury-added thermostat" means a product or device that uses a mercury switch to sense and control room temperature through communication with heating, ventilating, or air conditioning equipment. A mercury-added thermostat includes thermostats used to sense and control room temperature in residential, commercial, industrial, and other buildings but does not include a thermostat used to sense and control temperature as part of a manufacturing process. For the purposes of this section, "out-of-service mercury-added thermostat" means a mercury-added thermostat that is removed from a building or facility in this state and is intended to be discarded.
     (ii) Covered entities include all sources of out-of-service mercury-added thermostats including residents, businesses, governments, charities, and institutions.
     (iii) Out-of-service mercury-added thermostats that have been collected by product stewardship programs must be reused or recycled, unless otherwise determined by the department by rule. Mercury and mercury-bearing residuals from recycling of mercury-added thermostats must be retorted in properly permitted facilities. Mercury recovered from retorting must be recycled or placed in a properly permitted, monitored hazardous waste landfill, storage, or disposal repository to avoid reintroduction into the marketplace. When available, mercury recovered from retorting must be placed in a properly permitted, monitored permanent mercury repository to avoid reintroduction into the marketplace and it shall not be recycled.
     (iv) Product stewardship programs for out-of-service mercury-added thermostats must be fully implemented by January 1, 2011.
     (d) Paint, including the plastic and metal containers containing the paint that is collected.
     (i) For the purposes of this section, "paint" means interior and exterior architectural coatings including: Paints, enamels, clear finishes, sealers, undercoatings, primers, tinting bases, and stains purchased for commercial and homeowner use, but not including coatings purchased for industrial and original equipment manufacturer use.
     (ii) Covered entities include residents, small governments, small businesses, and charities.
     (iii) Paint, including the related plastic and metal containers, that has been collected by product stewardship programs must be reused or recycled unless otherwise determined by the department by rule.
     (iv) Product stewardship programs for paint, including the plastic and metal containers containing the paint, must be fully implemented by January 1, 2011.
     (e) Rechargeable batteries.
     (i) For the purposes of this section "rechargeable battery" includes:
     (A) One or more nickel cadmium, nickel metal hydride, sealed lead acid, lithium ion, lithium polymer, or nickel zinc voltaic or galvanic cells electrically connected to produce electric energy, that weighs less than one kilogram, is easily removable, and is designed to be recharged for repeated uses; and
     (B) Any type of enclosed device or sealed container weighing less than one kilogram consisting of one or more such cells, including what is commonly called a battery pack.
     (ii) For the purposes of this section, "rechargeable battery" does not include:
     (A) A battery used as the principal electric power source for a vehicle such as, but not limited to, an automobile, boat, truck, tractor, golf cart, or wheelchair;
     (B) A lead-acid battery weighing more than two pounds;
     (C) A battery used for load leveling or for storage of electricity generated by an alternative energy source, such as a solar cell or wind-driven generator that weighs more than one kilogram consisting of one or more such cells; or
     (D) A battery used as a backup power source for memory or program instruction storage, timekeeping, or any similar purpose that requires uninterrupted electrical power in order to function if the primary energy supply fails or fluctuates momentarily.
     (iii) Covered entities include all sources of rechargeable batteries including residents, businesses, governments, charities, and institutions.
     (iv) Rechargeable batteries that have been collected by product stewardship programs must be reused or recycled. Mercury and mercury-bearing residuals from recycling of rechargeable batteries must be retorted in properly permitted facilities. Mercury recovered from retorting must be recycled or placed in a properly permitted, monitored hazardous waste landfill, storage, or disposal repository to avoid reintroduction into the marketplace. When available, mercury recovered from retorting must be placed in a properly permitted, monitored permanent mercury repository to avoid reintroduction into the marketplace and it shall not be recycled.
     (v) Product stewardship programs for rechargeable batteries must be fully implemented by January 1, 2011.
     (2) The department may adopt rules to implement this section and to determine:
     (a) Any unique management requirements including, without limitation, special collection, processing, and final disposition requirements for an unwanted product containing hazardous substances or hazardous materials;
     (b) Labeling requirements for producers, if any, such as brand, toxicity, or carbon footprint; and
     (c) Any other issues the department deems necessary for implementing this section.

NEW SECTION.  Sec. 334   (1) At least every two years, commencing on the effective date of this section, the department shall consider and evaluate products and product categories to designate as covered products or covered product categories under this chapter.
     (2) The public, including producers, may petition the department to consider products and product categories to designate as covered products or covered product categories under this chapter. The department shall establish a procedure for review of these petitions during the process specified in subsection (3) of this section.
     (3) In designating covered products or covered product categories, the department must consider:
     (a) Environmental and health impacts, including:
     (i) Climate change impacts and benefits;
     (ii) Potential energy conservation;
     (iii) Public and environmental health and safety;
     (iv) Potential resource recovery and material conservation;
     (v) Product toxicity;
     (vi) Opportunities for reducing waste and toxicity;
     (vii) Opportunities for increasing reuse or recycling, recycled content, and design for reuse or recycling;
     (viii) A product's potential to act as a contaminant in recycling programs;
     (ix) Concerns about disposing of a product in the waste stream; and
     (x) Success in addressing similar products and product categories in other product stewardship programs in the United States and internationally.
     (b) Public and business benefits and interest, including:
     (i) Management costs to local governments, taxpayers, and solid waste ratepayers in the absence of product stewardship programs;
     (ii) Difficulty in managing traditional curbside collection and other standard government solid waste management systems;
     (iii) Opportunities for existing and new businesses and infrastructure to manage products or product categories proposed for designation and to use or increase markets for materials recovered from these products or product categories with a preference for in-state opportunities;
     (iv) Public demand; and
     (v) Recommendations of the product stewardship advisory committee established in section 335 of this act.
     (4) Through the designation process, the department must determine:
     (a) Covered entities for a product or product category;
     (b) Implementation dates;
     (c) Whether a product or product category is reusable or recyclable;
     (d) Any unique management requirements including, without limitation, special collection, processing, and final disposition requirements for an unwanted product containing hazardous substances or hazardous materials;
     (e) Labeling requirements for producers, if any, such as brand, toxicity, or carbon footprint; and
     (f) Whether a covered product or covered product category's packaging should also be designated as a covered product.

NEW SECTION.  Sec. 335   (1) The department must appoint a product stewardship advisory committee consisting of up to fifteen members that includes representatives of local governments, consumer advocacy groups, environmental groups, businesses, and four legislative members, one from each major caucus of the house of representatives and senate. House of representatives members must be designated by the speaker of the house of representatives and senate members must be designated by the president of the senate.
     (2) The department must consult the advisory committee regarding designation of new covered products and covered product categories, covered entities, implementation dates, reusability or recyclability of the product, management requirements, labeling requirements, and other matters requested by the department.
     (3) The advisory committee shall review and provide comment on the department's recommendations regarding designation of new covered products and covered product categories.

NEW SECTION.  Sec. 336   Nothing in this chapter changes or limits the authority of the Washington utilities and transportation commission to regulate collection of solid waste, including curbside collection of residential recyclable materials, nor does this chapter change or limit the authority of a city or town to provide such service itself or by contract under RCW 81.77.020.

NEW SECTION.  Sec. 337   A producer, group of producers, or stewardship organization and its officers, members, employees, and agents that organize a product stewardship program required under this chapter are authorized to engage in anticompetitive conduct to the extent necessary to plan and implement a program, and are immune from liability under state laws regarding antitrust, restraint of trade, unfair trade practices, and other regulation of trade and commerce.

NEW SECTION.  Sec. 338   This chapter must be liberally construed to carry out its purposes and objectives.

Sec. 339   RCW 42.56.270 and 2008 c 306 s 1 are each amended to read as follows:
     The following financial, commercial, and proprietary information is exempt from disclosure under this chapter:
     (1) Valuable formulae, designs, drawings, computer source code or object code, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss;
     (2) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070;
     (3) Financial and commercial information and records supplied by private persons pertaining to export services provided under chapters 43.163 and 53.31 RCW, and by persons pertaining to export projects under RCW 43.23.035;
     (4) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.325, 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency;
     (5) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW;
     (6) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information;
     (7) Financial and valuable trade information under RCW 51.36.120;
     (8) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW;
     (9) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010;
     (10)(a) Financial information, including but not limited to account numbers and values, and other identification numbers supplied by or on behalf of a person, firm, corporation, limited liability company, partnership, or other entity related to an application for a horse racing license submitted pursuant to RCW 67.16.260(1)(b), liquor license, gambling license, or lottery retail license;
     (b) Internal control documents, independent auditors' reports and financial statements, and supporting documents: (i) Of house-banked social card game licensees required by the gambling commission pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted by tribes with an approved tribal/state compact for class III gaming;
     (11) Proprietary data, trade secrets, or other information that relates to: (a) A vendor's unique methods of conducting business; (b) data unique to the product or services of the vendor; or (c) determining prices or rates to be charged for services, submitted by any vendor to the department of social and health services for purposes of the development, acquisition, or implementation of state purchased health care as defined in RCW 41.05.011;
     (12)(a) When supplied to and in the records of the department of community, trade, and economic development:
     (i) Financial and proprietary information collected from any person and provided to the department of community, trade, and economic development pursuant to RCW 43.330.050(8); and
     (ii) Financial or proprietary information collected from any person and provided to the department of community, trade, and economic development or the office of the governor in connection with the siting, recruitment, expansion, retention, or relocation of that person's business and until a siting decision is made, identifying information of any person supplying information under this subsection and the locations being considered for siting, relocation, or expansion of a business;
     (b) When developed by the department of community, trade, and economic development based on information as described in (a)(i) of this subsection, any work product is not exempt from disclosure;
     (c) For the purposes of this subsection, "siting decision" means the decision to acquire or not to acquire a site;
     (d) If there is no written contact for a period of sixty days to the department of community, trade, and economic development from a person connected with siting, recruitment, expansion, retention, or relocation of that person's business, information described in (a)(ii) of this subsection will be available to the public under this chapter;
     (13) Financial and proprietary information submitted to or obtained by the department of ecology or the authority created under chapter 70.95N RCW to implement chapter 70.95N RCW;
     (14) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the life sciences discovery fund authority in applications for, or delivery of, grants under chapter 43.350 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information;
     (15) Financial and commercial information provided as evidence to the department of licensing as required by RCW 19.112.110 or 19.112.120, except information disclosed in aggregate form that does not permit the identification of information related to individual fuel licensees;
     (16) Any production records, mineral assessments, and trade secrets submitted by a permit holder, mine operator, or landowner to the department of natural resources under RCW 78.44.085;
     (17)(a) Farm plans developed by conservation districts, unless permission to release the farm plan is granted by the landowner or operator who requested the plan, or the farm plan is used for the application or issuance of a permit;
     (b) Farm plans developed under chapter 90.48 RCW and not under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject to RCW 42.56.610 and 90.64.190;
     (18) Financial, commercial, operations, and technical and research information and data submitted to or obtained by a health sciences and services authority in applications for, or delivery of, grants under RCW 35.104.010 through 35.104.060, to the extent that such information, if revealed, would reasonably be expected to result in private loss to providers of this information; ((and))
     (19) Information gathered under chapter 19.85 RCW or RCW 34.05.328 that can be identified to a particular business; and
     (20) Proprietary information required to be submitted to the department of ecology under sections 323, 327, 347, and 351 of this act
.

NEW SECTION.  Sec. 340   Sections 318 through 338 of this act constitute a new chapter in Title 70 RCW.

Sec. 341   RCW 43.19A.020 and 2001 c 77 s 1 are each amended to read as follows:
     (1) The federal product standards, adopted under 42 U.S.C. Sec. 6962(e) as it exists on July 1, 2001, are adopted as the minimum standards for the state of Washington. These standards shall be implemented for at least the products listed in this subsection, unless the director finds that a different standard would significantly increase recycled product availability or competition.
     (a) Paper and paper products;
     (b) Organic recovered materials;
     (c) Latex paint products;
     (d) Products for lower value uses containing recycled plastics;
     (e) Retread and remanufactured tires;
     (f) Lubricating oils;
     (g) Automotive batteries;
     (h) Building products and materials;
     (i) Panelboard; ((and))
     (j) Compost products made from recovered organic materials; and
     (k) Fertilizers made from recovered organic materials
.
     (2) By July 1, 2001, the director shall adopt product standards for strawboard manufactured using as an ingredient straw that is produced as a by-product in the production of cereal grain or turf or grass seed and product standards for products made from strawboard.
     (3) The standards required by this section shall be applied to recycled product purchasing by the department, other state agencies, and state postsecondary educational institutions. The standards may be adopted or applied by any other local government in product procurement. The standards shall provide for exceptions under appropriate circumstances to allow purchases of recycled products that do not meet the minimum content requirements of the standards.

NEW SECTION.  Sec. 342   The legislature finds that:
     (1) Convenient and environmentally sound product stewardship programs that include collecting, transporting, and reusing or recycling of unwanted products will help protect Washington's environment and the health of state residents;
     (2) Product producers should finance and provide these programs. The programs are intended to encourage producers to design products that have a lower carbon footprint, are less toxic and energy and material intensive, and are easier to recycle.

NEW SECTION.  Sec. 343   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Brand" means a name, symbol, word, or mark that identifies a product, rather than its components, and attributes the product to the owner of the brand as the producer.
     (2) "Covered entity" means an entity, such as a resident or small business, that can use a product stewardship program to discard an unwanted product.
     (3) "Covered product" means a product designated by this chapter, either individually or as an item within a covered product category. "Covered product" includes all materials that make up a covered product.
     (4) "Covered product category" means a group of similar products covered by this chapter.
     (5) "Department" means the department of ecology.
     (6) "Final disposition" means the point beyond which no further processing takes place and materials from an unwanted product are either in a form capable of direct use as a feedstock in producing new products or disposed of or managed in permitted facilities.
     (7) "Hazardous substances" or "hazardous materials" means those substances or materials identified under rules adopted under the state hazardous waste management act, chapter 70.105 RCW.
     (8) "Mercury-containing lights" means lamps, bulbs, tubes, or other devices that contain mercury that provide functional illumination in homes, offices, and outdoors.
     (9) "Organization" includes a sole proprietorship, partnership, corporation, nonprofit corporation or organization, limited liability company, firm, association, cooperative, or other legal entity located within or outside Washington state.
     (10) "Orphan product" means a covered product that lacks a producer's brand, or for which the producer is no longer in business and has no successor in interest, or that bears a brand for which the department cannot identify an owner.
     (11) "Processing" means recovering materials from unwanted products for use as feedstock in new products.
     (12) "Producer" means a person who:
     (a) Has legal ownership of the brand, brand name, or cobrand of a covered product sold in or into Washington state;
     (b) Imports a covered product branded by a producer that meets (a) of this subsection and where that producer has no physical presence in the United States;
     (c) If (a) and (b) of this subsection do not apply, makes an unbranded product that is sold in or into Washington state; or
     (d) Sells at wholesale or retail a covered product, does not have legal ownership of the brand, and elects to fulfill the responsibilities of the producer for that product.
     (13) "Product stewardship" means a requirement for a producer of a covered product to manage and reduce adverse safety, health, and environmental impacts of the covered product throughout its life cycle.
     (14) "Product stewardship plan" or "plan" means a detailed plan describing the manner in which a product stewardship program will be implemented.
     (15) "Product stewardship program" or "program" means a program financed and provided by producers of covered products that addresses product stewardship and includes collecting, transporting, reuse processing, and final disposition of unwanted products, including a fair share of orphan products.
     (16) "Recycling" means transforming or remanufacturing unwanted products into usable or marketable materials for use other than landfill disposal or incineration. Recycling does not include energy recovery or energy generation by means of combusting unwanted products with or without other waste.
     (17) "Reporting period" means the period commencing January 1st and ending December 31st in the same calendar year.
     (18) "Residuals" means nonrecyclable materials left over from processing an unwanted product.
     (19) "Reuse" means a change in ownership of a covered product or its components and parts for use in the same manner and purpose for which it was originally purchased.
     (20) "Stakeholder" means a person who may have an interest in or be affected by a product stewardship program.
     (21) "Stewardship organization" means an organization designated by a producer to act as an agent on behalf of the producer to operate a product stewardship program.
     (22) "Unwanted product" means a covered product no longer wanted by its owner or that has been abandoned, discarded, or is intended to be discarded by its owner.

NEW SECTION.  Sec. 344   (1) Covered product and product categories designated under this chapter include mercury-containing lights.
     (a) "Mercury-containing lights" means lamps, bulbs, tubes, or other devices that contain mercury and that provide functional illumination in homes, offices, and outdoors.
     (b) Covered entities include residents and small businesses.
     (c) Mercury-containing lights that have been collected by product stewardship programs must be recycled. Mercury and mercury-bearing residuals from recycling of mercury-containing lights must be retorted in properly permitted facilities. Mercury recovered from retorting must be recycled or placed in a properly permitted, monitored hazardous waste landfill, storage repository, or disposal repository to avoid reintroduction into the marketplace. When available, mercury recovered from retorting must be placed in a properly permitted, monitored permanent mercury repository to avoid reintroduction into the marketplace. The mercury may not be recycled.
     (d) Product stewardship programs for mercury-containing lights must be fully implemented by January 1, 2011.
     (2) The department may adopt rules to implement this section and to determine:
     (a) Any unique management requirements including, without limitation, special collection, processing, and final disposition requirements for general purpose lights containing hazardous materials;
     (b) Labeling requirements for producers, if any, such as brand, toxicity, or carbon footprint; and
     (c) Other issues the department deems necessary for implementing this section.

NEW SECTION.  Sec. 345   (1) Every producer of a covered product sold in or into Washington state must participate in a product stewardship program for that product. Every producer must:
     (a) Operate, either individually or collectively with other producers, a product stewardship program approved by the department; or
     (b) Enter into an agreement with a stewardship organization to operate, on the producer's behalf, a product stewardship program approved by the department.
     (2) Product stewardship programs shall collect, free of charge, unwanted products from covered entities for reuse or final disposition as appropriate.
     (3) A producer, group of producers, or stewardship organization operating a product stewardship program shall:
     (a) Comply with a product stewardship plan approved by the department and this chapter, any rules adopted by the department to implement this chapter, and all other applicable laws and rules; and
     (b) Pay all administrative and operational costs associated with their program.

NEW SECTION.  Sec. 346   As of the implementation date established for the covered product, no producer, wholesaler, retailer, or other person may sell or offer for sale that product to any person in this state unless the producer is participating in a product stewardship program approved by the department. A person selling or offering for sale a covered product in the state shall consult the department's web site for a list of producers of that product participating in approved programs prior to selling the product in or into the state. A person is considered to have complied with this section if, on the date the person ordered a covered product from a producer or its agent, the producer was listed as having an approved program on the department's web site.

NEW SECTION.  Sec. 347   (1) A producer, group of producers, or stewardship organization operating or intending to operate a product stewardship program must, at least sixty days prior to submitting a product stewardship plan to the department under subsection (2) of this section, provide public notice of the plan it is considering for submittal. The producer, group of producers, or stewardship organization must consult with stakeholders during development of the plan, solicit stakeholder comments, and attempt to address any stakeholder concerns regarding the plan prior to submittal.
     (2) A producer, group of producers, or stewardship organization operating or intending to operate a product stewardship program must submit a product stewardship plan to the department specifying:
     (a) Information, including contact information, regarding:
     (i) The organization submitting the plan;
     (ii) A list of all participating producers; and
     (iii) If the program is to be operated by a stewardship organization, a description of management, administration, and tasks to be performed by the stewardship organization;
     (b) Recovery goals, including:
     (i) Recovery goals for the first, second, and third years of the program, expressed as pounds per capita, and an explanation of how these goals reflect a significant percentage of an unwanted product relative to the quantity of the unwanted product that may be available for reuse or recycling; and
     (ii) Plans to maximize recycling of packaging that may be collected;
     (c) A collection system, including:
     (i) Location of collection sites and other collection services to be used by the program;
     (ii) How unwanted products from all covered entities will be collected for all cities in the state with populations greater than ten thousand and in all counties of the state;
     (iii) How the collection system will be convenient and adequate to serve the needs of all covered entities in both urban and rural areas; and
     (iv) How collected unwanted products will be transported to processing facilities;
     (d) A processing and disposal system, including:
     (i) Locations, permit status, and records of any penalties, violations, or regulatory orders received in the previous five years by processing and disposal facilities proposed to be used by the program;
     (ii) A third-party audit of each processing and disposal facility proposed to be used by the program for any unwanted product or residuals containing hazardous substances or hazardous materials, documenting compliance with all applicable laws, regulations, and rules;
     (iii) Policies and procedures to be followed by persons collecting, transporting, processing, and disposing of unwanted products, including how the program will ensure compliance with all applicable laws, regulations, and rules;
     (iv) A description of how unwanted products will be processed at each processing facility;
     (v) How all residuals will be disposed of or managed in permitted facilities, including disposal or management of all hazardous substances and hazardous materials in permitted hazardous waste facilities;
     (vi) How hazardous substances and hazardous materials will be safely and securely tracked and handled from collection to final disposition in compliance with this chapter, any rules adopted by the department to implement this chapter, and all other applicable laws and rules; and
     (vii) Best management practices that will be used by first processors and their downstream vendors to ensure that hazardous substances and hazardous materials are not released into the environment and will not adversely impact human health;
     (e) How the program will seek to use businesses within the state, including retailers, processing facilities, and collection and transportation services;
     (f) Greenhouse gas reductions anticipated from implementing the collection, transportation, and recycling system;
     (g) A financing system, including:
     (i) How the entire product stewardship program will be financed, including how costs will be apportioned among and assessed upon producers participating in the program;
     (ii) Financial incentives to reward product design that result in improved reuse or recycling and less toxicity where feasible;
     (iii) A plan to withhold a percentage of funds to be managed by the product stewardship program to increase markets for recyclable materials or other financial incentives to encourage market development for recyclable materials contained in covered products;
     (iv) How those providing services for the collection, transportation, and processing systems will be fairly compensated for their services;
     (h) Strategies to manage and reduce life cycle impacts of products and packaging, from product design to end-of-life management, including ways to improve designing, packaging, and distributing products to:
     (i) Reduce waste, energy, toxicity, carbon footprints, and other environmental and health impacts;
     (ii) Increase recycled content and product longevity; and
     (iii) Make products more easily reusable or recyclable;
     (i) How the producers participating in the program will communicate with processors used by the program to encourage sustainable design of products and packaging;
     (j) Education and outreach activities, including:
     (i) An educational campaign promoting the use of the program to covered entities that includes a toll-free telephone number and web site and that is sufficient to meet required recovery rates;
     (ii) A plan for working with and providing information about the program to retailers, wholesalers, collectors, and other interested parties to disseminate to covered entities; and
     (iii) The methodology for determining how the effectiveness of the outreach activities will be measured; and
     (k) Pursuant to subsection (1) of this section, the consultation process, including:
     (i) A description of the process used to consult with stakeholders during development of the plan; and
     (ii) A summary of stakeholder comments and how any stakeholder concerns were addressed.
     (3) The department shall approve the product stewardship plan when all requirements have been met in compliance with this chapter and any rules adopted by the department to implement this chapter.
     (4) All plans submitted to the department must be made available to the public on the department's web site. Proprietary information submitted to the department under this chapter is exempt from public disclosure under RCW 42.56.270.

NEW SECTION.  Sec. 348   (1) A producer of a covered product, a group of producers, or a stewardship organization must submit a proposed product stewardship plan to the department at least one year prior to a covered product's implementation date.
     (2) Within ninety days after receiving a proposed product stewardship plan, the department shall determine whether the plan complies with this chapter and any rules adopted to implement this chapter. If it approves a plan, the department shall notify the applicant of its approval. If it rejects a plan, the department shall notify the applicant of its decision and its reasons for rejecting the plan. An applicant whose plan has been rejected by the department may submit a revised plan to the department within sixty days after receiving notice of the rejection.
     (3) At least once every four years, a producer, group of producers, or stewardship organization operating a product stewardship program must update its product stewardship plan and submit the updated plan to the department for review. The department must determine the status of an updated plan within ninety days of its submittal. If the department rejects an updated plan, the producer of a covered product participating in the product stewardship program described in the plan will be deemed to be out of compliance with this chapter.

NEW SECTION.  Sec. 349   (1) Except as provided in subsections (2) and (3) of this section, the department must grant prior approval, in writing, to any proposed change to a product stewardship plan.
     (2) Additions or changes to collection locations for unwanted products may be made without the department's prior written approval. The product stewardship program must inform the department of the additions or changes within fifteen days of the occurrence.
     (3) Additional producers may join a product stewardship program approved by the department without the department's prior written approval. The product stewardship program must inform the department of the additions within fifteen days of the occurrence.

NEW SECTION.  Sec. 350   (1) If the department determines that a product stewardship program is not being operated in compliance with the requirements of this chapter, any rules adopted by the department to implement this chapter, or any other applicable laws, regulations, or rules, or if the department determines that there is an imminent danger to the public, the department may:
     (a) Amend its approval of the program's product stewardship plan by clarifying terms or conditions to ensure full implementation of the plan; or
     (b) Suspend or cancel its approval of the plan.
     (2) At least thirty days prior to amending, suspending, or canceling its approval of a product stewardship plan, the department shall inform the producer, group of producers, or stewardship organization operating the product stewardship program of its intended action and provide them an opportunity to respond. The department may extend this period for good cause.
     (3) Notwithstanding subsection (2) of this section, if the department determines that it is necessary to protect the public from imminent danger, it may immediately amend, suspend, or cancel approval of a product stewardship program's product stewardship plan without giving the producer, group of producers, or stewardship organization operating the program an opportunity to be heard. However, the department shall give the operator an opportunity to be heard through proceedings consistent with the administrative procedure act, chapter 34.05 RCW, within fifteen days after the date on which the department takes any of those actions.

NEW SECTION.  Sec. 351   (1) On or before June 30th of each year, every producer, group of producers, or stewardship organization operating a product stewardship program must prepare and submit to the department an annual report describing:
     (a) Information, including contact information, regarding:
     (i) The organization submitting the report; and
     (ii) A list of all participating producers;
     (b) Recovery rates, including:
     (i) The amount, by weight, of unwanted products collected from covered entities in each county in the state, including documented collection and recycling or disposal of that material;
     (ii) How the program attained recovery rates established in the product stewardship plan or set by the department and, if the program did not attain those recovery rates, what actions it will take during the next reporting period to do so, including how it will increase and improve effective, measurable outreach and education efforts;
     (c) The collection system, including collection locations and services provided for all cities in the state with populations greater than ten thousand and in all counties in the state;
     (d) The processing and disposal system, including:
     (i) A list of processing and disposal facilities used and locations of those facilities, the weight of unwanted products processed at each processing facility and disposed at each disposal facility, and a description of the methods used at each processing facility;
     (ii) A list of subcontractors used through final disposition that processed or disposed of unwanted products containing hazardous substances or hazardous materials, and subcontractor facility locations;
     (iii) Documentation and summary results of annual third-party audits conducted on each processing facility and disposal facility as required in section 347 of this act;
     (iv) Final disposition of residuals;
     (v) Any penalties, violations, or regulatory orders received during the reporting period by each processing facility or disposal facility that was used;
     (vi) Whether policies and procedures in the product stewardship plan for collecting, transporting, processing, and final disposition of unwanted products were followed during the reporting period, and a description of any noncompliance;
     (e) The financing system, including a description of how the system met the requirements in section 347 of this act;
     (f) The education and outreach activities implemented during the reporting period, including an analysis of the effectiveness of the education and outreach activities;
     (g) Results of any actions taken to manage and reduce life cycle impacts of products and packaging, as described in section 347(2)(h) of this act;
     (h) How the product stewardship program complied with any other elements in the plan approved by the department; and
     (i) Any other information that the department may reasonably require.
     (2) A producer, group of producers, or stewardship organization operating a product stewardship program meeting the following conditions is only required to report to the department information specified in subsection (1)(a), (b), (c), (g), and (i) of this section:
     (a) The product stewardship program attained a ninety percent recovery rate of all unwanted products that were produced by producers participating in the program and a recycling rate of eighty percent of materials contained in such products; and
     (b) All unwanted products collected by the product stewardship program were carbon neutral in production and use.
     (3) All reports submitted to the department must be made available to the public on the department's web site. Proprietary information submitted to the department under this chapter is exempt from public disclosure under RCW 42.56.270.

NEW SECTION.  Sec. 352   (1) The department shall provide on its web site a list of all producers participating in product stewardship programs it has approved and a list of all producers it has identified as noncompliant with this chapter and any rules adopted to implement this chapter.
     (2) Wholesalers, retailers, and other persons shall check the department's web site to determine if producers of covered products they are selling in or into the state are compliant with this chapter and any rules adopted to implement this chapter. If a wholesaler, retailer, or other person is unsure of the status of a producer or believes that a producer is not compliant, they shall contact the department to determine the producer's status.
     (3) The department shall send a written warning and copies of this chapter and any rules adopted to implement this chapter to a producer who is not participating in a product stewardship program approved by the department and whose covered product is being sold in or into the state. The department shall also send a written warning and a copy of this chapter and any rules adopted to implement this chapter to a wholesaler, retailer, or other person known to be selling the covered product in or into the state.
     (4) A producer not participating in a product stewardship program approved by the department whose covered product continues to be sold in or into the state sixty days after receiving a written warning from the department, and a wholesaler, retailer, or other person who continues to sell a covered product from a producer not participating in an approved product stewardship program sixty days after receiving a written warning from the department, must be assessed a ten thousand dollar penalty. The department may waive or reduce the penalty if the producer, wholesaler, retailer, or other person complies with this chapter and any rules adopted to implement this chapter, or for any other reason the department determines to be justified.
     (5) The department shall send a written warning to a producer, group of producers, or stewardship organization operating a product stewardship program that fails to submit a product stewardship plan, updated plan, proposed change to a plan, or annual report as required in this chapter. The written warning must include compliance requirements and notification that the requirements must be met within sixty days. If compliance requirements are not met within sixty days, the producer, group of producers, or stewardship organization must be assessed a ten thousand dollar penalty. The department may waive or reduce the penalty if the producer, group of producers, or stewardship organization complies with this chapter and any rules adopted to implement this chapter, or for any other reason the department determines to be justified.
     (6) Each calendar day of a violation is a separate and distinct offense.

NEW SECTION.  Sec. 353   (1) By June of the third program year for each product or product category, the department shall establish required recovery rates for the fourth and subsequent program operating years, and must establish a system of penalties for producers and product stewardship programs that do not attain the required recovery rates.
     (2) By December 31, 2014, the department shall report to appropriate committees of the legislature concerning the status of the program administered under this chapter and, if necessary, recommend legislation.
     (3) The department, or its designee, may inspect, audit, or review audits of processing and disposal facilities used to fulfill the requirements of a product stewardship program.
     (4) No product stewardship program required under this chapter may use federal or state prison labor for processing unwanted products.
     (5) The department shall annually invite comments from local governments, communities, and citizens to report their satisfaction with services provided by product stewardship programs. This information must be used by the department in reviewing proposed updates or changes to product stewardship plans.

NEW SECTION.  Sec. 354   The department may establish fees for administering this chapter. Fees may be charged to the producers and must be paid annually by January 1st of each year. Fees may be established in amounts to fully recover and not to exceed expenses incurred by the department in administering this chapter.

NEW SECTION.  Sec. 355   The product stewardship programs account is created in the custody of the state treasurer. All receipts from fees and penalties collected under this chapter must be deposited in the account. Expenditures from the account may be used only for administering this chapter. Only the director of the department or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 356   The department shall adopt rules under the administrative procedure act, chapter 34.05 RCW, to implement this chapter including, at a minimum:
     (1) Program operating rules;
     (2) A process for determining whether reduced reporting requirements in section 351 of this act apply;
     (3) A process for setting recovery rates for the fourth and subsequent operating years of a program and for adjusting recovery rates; and
     (4) An enforcement process.

NEW SECTION.  Sec. 357   Nothing in this chapter changes or limits the authority of the Washington utilities and transportation commission to regulate collection of solid waste, including curbside collection of residential recyclable materials, nor does this chapter change or limit the authority of a city or town to provide such service itself or by contract under RCW 81.77.020.

NEW SECTION.  Sec. 358   A producer, group of producers, or stewardship organization and its officers, members, employees, and agents that organize a product stewardship program required under this chapter are authorized to engage in anticompetitive conduct to the extent necessary to plan and implement a program, and are immune from liability under state laws regarding antitrust, restraint of trade, unfair trade practices, and other regulation of trade and commerce.

NEW SECTION.  Sec. 359   This chapter must be liberally construed to carry out its purposes and objectives.

NEW SECTION.  Sec. 360   A new section is added to chapter 70.95 RCW to read as follows:
     (1) The department shall participate in national and global mercury forums to advocate reduction of global emissions and permanent isolation of elemental mercury.
     (2) By July 1, 2011, the department, in consultation with the United States environmental protection agency, shall study the feasibility of the development of a national permanent repository for mercury. The department shall develop recommendations and provide its findings to the appropriate committees of the legislature by December 1, 2011.

NEW SECTION.  Sec. 361   Sections 342 through 359 and 362 of this act constitute a new chapter in Title 70 RCW.

NEW SECTION.  Sec. 362   Sections 342 through 361 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2009.

PART 4
Comprehensive Land Use Requirements

Sec. 401   RCW 36.70A.020 and 2002 c 154 s 1 are each amended to read as follows:
     The following goals are adopted to guide the development and adoption of comprehensive plans and development regulations of those counties and cities that are required or choose to plan under RCW 36.70A.040. The following goals are not listed in order of priority and shall be used exclusively for the purpose of guiding the development of comprehensive plans and development regulations:
     (1) Urban growth. Encourage development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner.
     (2) Reduce sprawl. Reduce the inappropriate conversion of undeveloped land into sprawling, low-density development.
     (3) Transportation. Encourage efficient multimodal transportation systems that are based on regional priorities and coordinated with county and city comprehensive plans.
     (4) Housing. Encourage the availability of affordable housing to all economic segments of the population of this state, promote a variety of residential densities and housing types, and encourage preservation of existing housing stock.
     (5) Economic development. Encourage economic development throughout the state that is consistent with adopted comprehensive plans, promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons, promote the retention and expansion of existing businesses and recruitment of new businesses, recognize regional differences impacting economic development opportunities, and encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.
     (6) Property rights. Private property shall not be taken for public use without just compensation having been made. The property rights of landowners shall be protected from arbitrary and discriminatory actions.
     (7) Permits. Applications for both state and local government permits should be processed in a timely and fair manner to ensure predictability.
     (8) Natural resource industries. Maintain and enhance natural resource-based industries, including productive timber, agricultural, and fisheries industries. Encourage the conservation of productive forest lands and productive agricultural lands, and discourage incompatible uses.
     (9) Open space and recreation. Retain open space, enhance recreational opportunities, conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks and recreation facilities.
     (10) Environment. Protect the environment and enhance the state's high quality of life, including air and water quality, and the availability of water. Establish land use and transportation patterns that, at a minimum, achieve and support state and federal greenhouse gas emissions reduction requirements.
     (11) Citizen participation and coordination. Encourage the involvement of citizens in the planning process and ensure coordination between communities and jurisdictions to reconcile conflicts.
     (12) Public facilities and services. Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards.
     (13) Historic preservation. Identify and encourage the preservation of lands, sites, and structures, that have historical or archaeological significance.

Sec. 402   RCW 36.70A.070 and 2005 c 360 s 2 are each amended to read as follows:
     The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan. The plan shall be an internally consistent document and all elements shall be consistent with the future land use map. A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.
     Each comprehensive plan shall include a plan, scheme, or design for each of the following:
     (1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, general aviation airports, public utilities, public facilities, and other land uses. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall provide for protection of the quality and quantity of groundwater used for public water supplies. Wherever possible, the land use element should consider utilizing urban planning approaches that promote physical activity. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound.
     (2) A housing element ensuring the vitality and character of established residential neighborhoods that: (a) Includes an inventory and analysis of existing and projected housing needs that identifies the number of housing units necessary to manage projected growth; (b) includes a statement of goals, policies, objectives, and mandatory provisions for the preservation, improvement, and development of housing, including single-family residences; (c) includes incentives and requirements to provide housing required by this subsection (2); (d) identifies sufficient land for housing, including, but not limited to, government-assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities; ((and (d))) (e) makes adequate provisions for existing and projected needs of all economic segments of the community; and (f) designates sufficient land for and encourages housing within walking, bicycling, or transit distance of employment concentrations that is affordable to persons employed within such concentrations. Land designated for housing under this subsection (2)(f) must be designated at densities that support transit services.
     (3) A capital facilities plan element consisting of: (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent. Park and recreation facilities shall be included in the capital facilities plan element.
     (4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.
     (5) Rural element. Counties shall include a rural element including lands that are not designated for urban growth, agriculture, forest, or mineral resources. The following provisions shall apply to the rural element:
     (a) Growth management act goals and local circumstances. Because circumstances vary from county to county, in establishing patterns of rural densities and uses, a county may consider local circumstances, but shall develop a written record explaining how the rural element harmonizes the planning goals in RCW 36.70A.020 and meets the requirements of this chapter.
     (b) Rural development. The rural element shall permit rural development, forestry, and agriculture in rural areas. The rural element shall provide for a variety of rural densities, uses, essential public facilities, and rural governmental services needed to serve the permitted densities and uses. To achieve a variety of rural densities and uses, counties may provide for clustering, density transfer, design guidelines, conservation easements, and other innovative techniques that will accommodate appropriate rural densities and uses that are not characterized by urban growth and that are consistent with rural character.
     (c) Measures governing rural development. The rural element shall include measures that apply to rural development and protect the rural character of the area, as established by the county, by:
     (i) Containing or otherwise controlling rural development;
     (ii) Assuring visual compatibility of rural development with the surrounding rural area;
     (iii) Reducing the inappropriate conversion of undeveloped land into sprawling, low-density development in the rural area;
     (iv) Protecting critical areas, as provided in RCW 36.70A.060, and surface water and groundwater resources; and
     (v) Protecting against conflicts with the use of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170.
     (d) Limited areas of more intensive rural development. Subject to the requirements of this subsection and except as otherwise specifically provided in this subsection (5)(d), the rural element may allow for limited areas of more intensive rural development, including necessary public facilities and public services to serve the limited area as follows:
     (i) Rural development consisting of the infill, development, or redevelopment of existing commercial, industrial, residential, or mixed-use areas, whether characterized as shoreline development, villages, hamlets, rural activity centers, or crossroads developments.
     (A) A commercial, industrial, residential, shoreline, or mixed-use area shall be subject to the requirements of (d)(iv) of this subsection, but shall not be subject to the requirements of (c)(ii) and (iii) of this subsection.
     (B) Any development or redevelopment other than an industrial area or an industrial use within a mixed-use area or an industrial area under this subsection (5)(d)(i) must be principally designed to serve the existing and projected rural population.
     (C) Any development or redevelopment in terms of building size, scale, use, or intensity shall be consistent with the character of the existing areas. Development and redevelopment may include changes in use from vacant land or a previously existing use so long as the new use conforms to the requirements of this subsection (5);
     (ii) The intensification of development on lots containing, or new development of, small-scale recreational or tourist uses, including commercial facilities to serve those recreational or tourist uses, that rely on a rural location and setting, but that do not include new residential development. A small-scale recreation or tourist use is not required to be principally designed to serve the existing and projected rural population. Public services and public facilities shall be limited to those necessary to serve the recreation or tourist use and shall be provided in a manner that does not permit low-density sprawl;
     (iii) The intensification of development on lots containing isolated nonresidential uses or new development of isolated cottage industries and isolated small-scale businesses that are not principally designed to serve the existing and projected rural population and nonresidential uses, but do provide job opportunities for rural residents. Rural counties may allow the expansion of small-scale businesses as long as those small-scale businesses conform with the rural character of the area as defined by the local government according to RCW 36.70A.030(((14))) (16). Rural counties may also allow new small-scale businesses to utilize a site previously occupied by an existing business as long as the new small-scale business conforms to the rural character of the area as defined by the local government according to RCW 36.70A.030(((14))) (16). Public services and public facilities shall be limited to those necessary to serve the isolated nonresidential use and shall be provided in a manner that does not permit low-density sprawl;
     (iv) A county shall adopt measures to minimize and contain the existing areas or uses of more intensive rural development, as appropriate, authorized under this subsection. Lands included in such existing areas or uses shall not extend beyond the logical outer boundary of the existing area or use, thereby allowing a new pattern of low-density sprawl. Existing areas are those that are clearly identifiable and contained and where there is a logical boundary delineated predominately by the built environment, but that may also include undeveloped lands if limited as provided in this subsection. The county shall establish the logical outer boundary of an area of more intensive rural development. In establishing the logical outer boundary the county shall address (A) the need to preserve the character of existing natural neighborhoods and communities, (B) physical boundaries such as bodies of water, streets and highways, and land forms and contours, (C) the prevention of abnormally irregular boundaries, and (D) the ability to provide public facilities and public services in a manner that does not permit low-density sprawl;
     (v) For purposes of (d) of this subsection, an existing area or existing use is one that was in existence:
     (A) On July 1, 1990, in a county that was initially required to plan under all of the provisions of this chapter;
     (B) On the date the county adopted a resolution under RCW 36.70A.040(2), in a county that is planning under all of the provisions of this chapter under RCW 36.70A.040(2); or
     (C) On the date the office of financial management certifies the county's population as provided in RCW 36.70A.040(5), in a county that is planning under all of the provisions of this chapter pursuant to RCW 36.70A.040(5).
     (e) Exception. This subsection shall not be interpreted to permit in the rural area a major industrial development or a master planned resort unless otherwise specifically permitted under RCW 36.70A.360 and 36.70A.365.
     (6) A transportation element that implements, and is consistent with, the land use element.
     (a) The transportation element shall include the following subelements:
     (i) Land use assumptions used in estimating travel;
     (ii) Estimated traffic impacts to state-owned transportation facilities resulting from land use assumptions to assist the department of transportation in monitoring the performance of state facilities, to plan improvements for the facilities, and to assess the impact of land-use decisions on state-owned transportation facilities;
     (iii) Facilities and services needs, including:
     (A) An inventory of air, water, and ground transportation facilities and services, including transit alignments and general aviation airport facilities, to define existing capital facilities and travel levels as a basis for future planning. This inventory must include state-owned transportation facilities within the city or county's jurisdictional boundaries;
     (B) Level of service standards for all locally owned arterials and transit routes to serve as a gauge to judge performance of the system. These standards should be regionally coordinated and must consider all transportation modes in meeting regional transportation demands. In adopting level of service standards required under this subsection (6)(a)(iii)(B), jurisdictions must also consider adopting level of service standards for bicycle and pedestrian routes;
     (C) For state-owned transportation facilities, level of service standards for highways, as prescribed in chapters 47.06 and 47.80 RCW, to gauge the performance of the system. The purposes of reflecting level of service standards for state highways in the local comprehensive plan are to monitor the performance of the system, to evaluate improvement strategies, and to facilitate coordination between the county's or city's six-year street, road, or transit program and the ((department of transportation's six-year)) office of financial management's ten-year investment program((. The concurrency requirements of (b) of this subsection do not apply to transportation facilities and services of statewide significance except for counties consisting of islands whose only connection to the mainland are state highways or ferry routes. In these island counties, state highways and ferry route capacity must be a factor in meeting the concurrency requirements in (b) of this subsection));
     (D) Specific actions and requirements for bringing into compliance locally owned transportation facilities or services that are below an established level of service standard;
     (E) Forecasts of ((traffic)) travel demand for at least ten years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;
     (F) Identification of state and local system needs to meet current and future demands. Identified needs on state-owned transportation facilities must be consistent with the statewide multimodal transportation plan required under chapter 47.06 RCW;
     (iv) Finance, including:
     (A) An analysis of funding capability to judge needs against probable funding resources;
     (B) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems. The multiyear financing plan should be coordinated with the ((six-year improvement)) ten-year investment program developed by the ((department of transportation)) office of financial management as required by RCW 47.05.030;
     (C) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;
     (v) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;
     (vi) Demand-management strategies;
     (vii) Pedestrian and bicycle components to include collaborative efforts to identify and designate planned improvements for pedestrian and bicycle facilities and corridors that address and encourage enhanced community access ((and promote)), connections between land uses and transportation modes, and the promotion of healthy lifestyles.
     (b)(i) After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a locally owned transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies. Ordinances adopted under this subsection (6)(b)(i) must consider multimodal improvements or strategies.
     (ii)
For the purposes of this subsection (6), "concurrent with the development" ((shall mean)) means that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.
     (iii) The concurrency requirements of this subsection (6)(b) do not apply to transportation facilities and services of statewide significance except for counties consisting of islands whose only connection to the mainland are state highways or ferry routes. In these island counties, state highway and ferry route capacity must be a factor in meeting the concurrency requirements of this subsection (6)(b).
     (c) The transportation element described in this subsection (6), and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, and the ten-year investment program required by RCW 47.05.030 for the state, must be consistent.
     (7) An economic development element establishing local goals, policies, objectives, and provisions for economic growth and vitality and a high quality of life. The element shall include: (a) A summary of the local economy such as population, employment, payroll, sectors, businesses, sales, and other information as appropriate; (b) a summary of the strengths and weaknesses of the local economy defined as the commercial and industrial sectors and supporting factors such as land use, transportation, utilities, education, workforce, housing, and natural/cultural resources; and (c) an identification of policies, programs, and projects to foster economic growth and development and to address future needs. A city that has chosen to be a residential community is exempt from the economic development element requirement of this subsection.
     (8) A park and recreation element that implements, and is consistent with, the capital facilities plan element as it relates to park and recreation facilities. The element shall include: (a) Estimates of park and recreation demand for at least a ten-year period; (b) an evaluation of facilities and service needs; and (c) an evaluation of intergovernmental coordination opportunities to provide regional approaches for meeting park and recreational demand.
     (9) It is the intent that new or amended elements required after January 1, 2002, be adopted concurrent with the scheduled update provided in RCW 36.70A.130. Requirements to incorporate any such new or amended elements shall be null and void until funds sufficient to cover applicable local government costs are appropriated and distributed by the state at least two years before local government must update comprehensive plans as required in RCW 36.70A.130.

Sec. 403   RCW 36.70A.100 and 1990 1st ex.s. c 17 s 10 are each amended to read as follows:
     The comprehensive plan of each county or city ((that is)) adopted pursuant to RCW 36.70A.040 shall be:
     (1) C
oordinated with, and consistent with, the comprehensive plans adopted pursuant to RCW 36.70A.040 of other counties or cities with which the county or city has, in part, common borders or related regional issues; and
     (2) Consistent with the regional transportation plans required under RCW 47.80.030 for the region within which the county or city is located
.

Sec. 404   RCW 36.70A.190 and 1991 sp.s. c 32 s 3 are each amended to read as follows:
     (1) The department shall establish a program of technical and financial assistance and incentives to counties and cities to encourage and facilitate the adoption and implementation of comprehensive plans and development regulations throughout the state.
     (2) The department shall develop a priority list and establish funding levels for planning and technical assistance grants both for counties and cities that plan under RCW 36.70A.040. Priority for assistance shall be based on a county's or city's population growth rates, commercial and industrial development rates, the existence and quality of a comprehensive plan and development regulations, and other relevant factors.
     (3) The department shall develop and administer a grant program to provide direct financial assistance to counties and cities for the preparation of comprehensive plans under this chapter. The department may establish provisions for county and city matching funds to conduct activities under this subsection. Grants may be expended for any purpose directly related to the preparation of a county or city comprehensive plan as the county or city and the department may agree, including, without limitation, the conducting of surveys, inventories and other data gathering and management activities, the retention of planning consultants, contracts with regional councils for planning and related services, and other related purposes.
     (4) The department shall establish a program of technical assistance:
     (a)(i) Utilizing department staff, the staff of other state agencies, and the technical resources of counties and cities to help in the development of comprehensive plans required under this chapter. The technical assistance may include, but not be limited to, model land use ordinances, regional education and training programs, and information for local and regional inventories. The technical assistance shall include guidance that may be used by counties and cities for developing and implementing: (A) Multimodal transportation concurrency improvements and strategies; and (B) programs that encourage, through developer incentives and other means, compact development in urban growth areas.
     (ii) Technical assistance required by (a)(i)(A) of this subsection shall be developed by the department in cooperation with the department of transportation, regional transportation planning organizations authorized under chapter 47.80 RCW, regional transit authorities and agencies, and local transportation entities.
     (iii) Technical assistance required by (a)(i)(B) of this subsection shall be developed by the department in cooperation with other state agencies with relevant expertise, and may include an examination of employed local government incentives, an assessment of applicable advantages and disadvantages, and the development of model incentive language
; and
     (b) Adopting by rule procedural criteria to assist counties and cities in adopting comprehensive plans and development regulations that meet the goals and requirements of this chapter. These criteria shall reflect regional and local variations and the diversity that exists among different counties and cities that plan under this chapter.
     (5) The department shall provide mediation services to resolve disputes between counties and cities regarding, among other things, coordination of regional issues and designation of urban growth areas.
     (6) The department shall provide planning grants to enhance citizen participation under RCW 36.70A.140.

Sec. 405   RCW 36.70A.210 and 1998 c 171 s 4 are each amended to read as follows:
     (1) The legislature recognizes that counties are regional governments within their boundaries, and cities are primary providers of urban governmental services within urban growth areas. For the purposes of this section, a "county-wide planning policy" is a written policy statement or statements used solely for establishing a county- wide framework from which county and city comprehensive plans are developed and adopted pursuant to this chapter. This framework shall ensure that city and county comprehensive plans are consistent as required in RCW 36.70A.100. Nothing in this section shall be construed to alter the land-use powers of cities.
     (2) The legislative authority of a county that plans under RCW 36.70A.040 shall adopt a county-wide planning policy in cooperation with the cities located in whole or in part within the county as follows:
     (a) No later than sixty calendar days from July 16, 1991, the legislative authority of each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040 shall convene a meeting with representatives of each city located within the county for the purpose of establishing a collaborative process that will provide a framework for the adoption of a county-wide planning policy. In other counties that are required or choose to plan under RCW 36.70A.040, this meeting shall be convened no later than sixty days after the date the county adopts its resolution of intention or was certified by the office of financial management.
     (b) The process and framework for adoption of a county-wide planning policy specified in (a) of this subsection shall determine the manner in which the county and the cities agree to all procedures and provisions including but not limited to desired planning policies, deadlines, ratification of final agreements and demonstration thereof, and financing, if any, of all activities associated therewith.
     (c) If a county fails for any reason to convene a meeting with representatives of cities as required in (a) of this subsection, the governor may immediately impose any appropriate sanction or sanctions on the county from those specified under RCW 36.70A.340.
     (d) If there is no agreement by October 1, 1991, in a county that was required or chose to plan under RCW 36.70A.040 as of June 1, 1991, or if there is no agreement within one hundred twenty days of the date the county adopted its resolution of intention or was certified by the office of financial management in any other county that is required or chooses to plan under RCW 36.70A.040, the governor shall first inquire of the jurisdictions as to the reason or reasons for failure to reach an agreement. If the governor deems it appropriate, the governor may immediately request the assistance of the department of community, trade, and economic development to mediate any disputes that preclude agreement. If mediation is unsuccessful in resolving all disputes that will lead to agreement, the governor may impose appropriate sanctions from those specified under RCW 36.70A.340 on the county, city, or cities for failure to reach an agreement as provided in this section. The governor shall specify the reason or reasons for the imposition of any sanction.
     (e) No later than July 1, 1992, the legislative authority of each county that was required or chose to plan under RCW 36.70A.040 as of June 1, 1991, or no later than fourteen months after the date the county adopted its resolution of intention or was certified by the office of financial management the county legislative authority of any other county that is required or chooses to plan under RCW 36.70A.040, shall adopt a county-wide planning policy according to the process provided under this section and that is consistent with the agreement pursuant to (b) of this subsection, and after holding a public hearing or hearings on the proposed county-wide planning policy.
     (3) A county-wide planning policy shall at a minimum, address the following:
     (a) Policies to implement RCW 36.70A.110;
     (b) Policies for promotion of contiguous and orderly development and provision of urban services to such development;
     (c) Policies for siting public capital facilities of a county-wide or statewide nature, including transportation facilities of statewide significance as defined in RCW 47.06.140;
     (d) Policies for county-wide transportation facilities and strategies;
     (e) Policies that consider the need for affordable housing, such as housing for all economic segments of the population and parameters for its distribution;
     (f) Policies for joint county and city planning within urban growth areas;
     (g) Policies for county-wide economic development and employment; ((and))
     (h) Policies for reducing greenhouse gas emissions that, at a minimum, support and achieve: (i) State emission reduction requirements adopted under RCW 70.235.020; (ii) per capita vehicle miles traveled reductions in accordance with RCW 47.01.440; and (iii) applicable federal emission reduction requirements;
     (i) Policies for reducing dependence on foreign oil; and
     (j)
An analysis of the fiscal impact.
     (4) Federal agencies and Indian tribes may participate in and cooperate with the county-wide planning policy adoption process. Adopted county-wide planning policies shall be adhered to by state agencies.
     (5) Failure to adopt a county-wide planning policy that meets the requirements of this section may result in the imposition of a sanction or sanctions on a county or city within the county, as specified in RCW 36.70A.340. In imposing a sanction or sanctions, the governor shall specify the reasons for failure to adopt a county-wide planning policy in order that any imposed sanction or sanctions are fairly and equitably related to the failure to adopt a county-wide planning policy.
     (6) Cities and the governor may appeal an adopted county-wide planning policy to the growth management hearings board within sixty days of the adoption of the county-wide planning policy.
     (7) Multicounty planning policies shall be adopted by two or more counties, each with a population of four hundred fifty thousand or more, with contiguous urban areas and may be adopted by other counties, according to the process established under this section or other processes agreed to among the counties and cities within the affected counties throughout the multicounty region.

Sec. 406   RCW 36.70A.490 and 1995 c 347 s 115 are each amended to read as follows:
     The growth management planning and environmental review fund is hereby established in the state treasury. Moneys may be placed in the fund from the proceeds of bond sales, tax revenues, budget transfers, federal appropriations, gifts, or any other lawful source. Moneys in the fund may be spent only after appropriation. Moneys in the fund shall be used to make grants and loans to local governments for the purposes set forth in RCW 43.21C.240, 43.21C.031, or 36.70A.500.

Sec. 407   RCW 36.70A.500 and 1997 c 429 s 28 are each amended to read as follows:
     (1) The department ((of community, trade, and economic development)) shall provide management services for the fund created by RCW 36.70A.490. The department shall establish procedures for fund management. The department shall encourage participation in the ((grant)) program by other public agencies. The department shall develop ((the)) grant and loan criteria, monitor the ((grant)) program, and select ((grant)) recipients in consultation with state agencies participating in the ((grant)) program through the provision of ((grant)) funds or technical assistance.
     (2) A grant or loan may be awarded to a county or city that is required to or has chosen to plan under RCW 36.70A.040 and that is qualified pursuant to this section. The grant or loan shall be provided to assist a county or city in paying for the cost of preparing an environmental analysis under chapter 43.21C RCW, that is integrated with a comprehensive plan, subarea plan, plan element, county-wide planning policy, development regulation, monitoring program, or other planning activity adopted under or implementing this chapter that:
     (a) Improves the process for project permit review while maintaining environmental quality; or
     (b) Encourages use of plans and information developed for purposes of complying with this chapter to satisfy requirements of other state programs.
     (3) In order to qualify for a grant or loan, a county or city shall:
     (a) Demonstrate that it will prepare an environmental analysis pursuant to chapter 43.21C RCW and subsection (2) of this section that is integrated with a comprehensive plan, subarea plan, plan element, county-wide planning policy, development regulations, monitoring program, or other planning activity adopted under or implementing this chapter;
     (b) Address environmental impacts and consequences, alternatives, and mitigation measures in sufficient detail to allow the analysis to be adopted in whole or in part by applicants for development permits within the geographic area analyzed in the plan;
     (c) Demonstrate that procedures for review of development permit applications will be based on the integrated plans and environmental analysis;
     (d) Include mechanisms to monitor the consequences of growth as it occurs in the plan area and to use the resulting data to update the plan, policy, or implementing mechanisms and associated environmental analysis;
     (e) Demonstrate substantial progress towards compliance with the requirements of this chapter. A county or city that is more than six months out of compliance with a requirement of this chapter is deemed not to be making substantial progress towards compliance; and
     (f) Provide local funding, which may include financial participation by the private sector.
     (4) In awarding grants and loans, the department shall give preference to proposals that include one or more of the following elements:
     (a) Furtherance of greenhouse gas emissions reduction requirements;
     (b)
Financial participation by the private sector, or a public/private partnering approach;
     (((b))) (c) Identification and monitoring of system capacities for elements of the built environment, and to the extent appropriate, of the natural environment;
     (((c))) (d) Coordination with state, federal, and tribal governments in project review;
     (((d))) (e) Furtherance of important state objectives related to economic development, protection of areas of statewide significance, and siting of essential public facilities;
     (((e))) (f) Programs to improve the efficiency and effectiveness of the permitting process by greater reliance on integrated plans and prospective environmental analysis;
     (((f))) (g) Programs for effective citizen and neighborhood involvement that contribute to greater likelihood that planning decisions can be implemented with community support; and
     (((g))) (h) Programs to identify environmental impacts and establish mitigation measures that provide effective means to satisfy concurrency requirements and establish project consistency with the plans.
     (5) If the local funding includes funding provided by other state functional planning programs, including open space planning and watershed or basin planning, the functional plan shall be integrated into and be consistent with the comprehensive plan.
     (6) State agencies shall work with grant and loan recipients to facilitate state and local project review processes that will implement the projects receiving ((grants)) financial assistance under this section.

NEW SECTION.  Sec. 408   A new section is added to chapter 36.70A RCW to read as follows:
     (1) Except as provided in subsections (6) and (7) of this section, comprehensive plans and development regulations adopted under this chapter must authorize transit-oriented development within one-half mile of a major transit station. The allowed net density for these transit-oriented development areas must be fifty dwelling units per acre. The adopted plans and regulations also must:
     (a) Include standards for streets, sidewalks, and buildings that encourage walking and bicycling, and a process to ensure that these standards are met;
     (b) Prioritize for safe walking and bicycling connections to proximate major transit stations and transit centers;
     (c) Provide for a net gain in housing units that are affordable to low and moderate-income households;
     (d) Require one-for-one replacement of demolished or converted housing units that are affordable to the income level of the displaced residents. The replacement units are in addition to other affordable units required by this section. This subsection (1)(d) applies if the following are demolished or converted: (i) Rental housing units that are affordable to households earning sixty percent or less of the adjusted county median income; and (ii) ownership housing that is affordable to households earning eighty percent of the adjusted county median income;
     (e) Require that all new housing or mixed-use developments provide housing that is affordable to the income groups in (f) of this subsection and receive density bonuses equal to the number of housing units produced under this subsection (1)(e), or provide for master planned zoning that identifies locations and incentives sufficient to provide housing that is affordable to the income groups in (f) of this subsection. The housing units required by this subsection must be constructed within one-half mile of a major transit station and must be comparable to the associated market rate development. Affordable units required by this subsection (1)(e) must be affordable for a minimum of fifty years, but counties and cities should consider employing tools to permanently maintain affordability;
     (f) Require that: (i) Twenty-five percent of rental units be affordable to people earning less than eighty percent of the adjusted county median income, with ten percent of the rental units being affordable to people earning less than sixty percent of the adjusted county median income; and (ii) Twenty-five percent of ownership units be affordable to people earning less than one hundred twenty percent of the adjusted county median income, with ten percent of the ownership units being affordable to people earning less than one hundred percent of the adjusted county median income. Affordable units required by this subsection (1)(f) must be affordable for a minimum of fifty years, but counties and cities should consider employing tools to permanently maintain affordability;
     (g) Authorize the waiving of minimum parking space requirements for any land use; and
     (h) Require developers to provide the following to renters earning less than eighty percent of the adjusted median income who will be displaced by development: (i) No fewer than ninety days notice of an order to vacate the affected premises; and (ii) relocation assistance in an amount determined by the applicable county or city. Relocation assistance provided under this subsection (1)(h)(ii) may not exceed an amount equaling three months rent for an affected tenant.
     (2) A major transit station includes any of the following within an urban growth area:
     (a) Stations on a high capacity transportation service approved by the voters and funded or expanded under chapter 81.104 RCW. For purposes of this subsection (2), streetcars are not considered a high capacity transportation service;
     (b) Commuter rail stations;
     (c) Stops on rail or fixed guideway systems, including transitways, but excluding stops in a streetcar system; and
     (d) Stations on bus rapid transit routes that operate on designated rights-of-way for sixty-five percent or more of a route.
     (3) For purposes of this section, "transit-oriented development" has the same meaning as defined in RCW 36.70A.108.
     (4) Density determinations made in accordance with this section must be calculated by dividing the number of allowed dwelling units by the net acreage of the applicable area.
     (5) Counties and cities must report the number of affordable housing units created in accordance with subsection (1) of this section to the department and the appropriate committees of the legislature by January 1, 2015. Subsequent reports to the department and the legislature must be completed according to the schedule established in RCW 36.70A.130(4).
     (6) Nothing in this section modifies or otherwise affects planning or regulatory requirements for airports.
     (7) This section does not apply to lands: (a) Designated for industrial or manufacturing uses in comprehensive plans or zoning regulations; or (b) upon which stadiums that seat twenty-five thousand or more persons are located.

Sec. 409   RCW 43.21C.240 and 2003 c 298 s 2 are each amended to read as follows:
     (1) If the requirements of subsection (2) of this section are satisfied, a county, city, or town reviewing a project action shall determine that the requirements for environmental analysis, protection, and mitigation measures in the county, city, or town's development regulations and comprehensive plans adopted under chapter 36.70A RCW, and in other applicable local, state, or federal laws and rules provide adequate analysis of and mitigation for the specific adverse environmental impacts of the project action to which the requirements apply. Rules adopted by the department according to RCW 43.21C.110 regarding project specific impacts that may not have been adequately addressed apply to any determination made under this section. In these situations, in which all adverse environmental impacts will be mitigated below the level of significance as a result of mitigation measures included by changing, clarifying, or conditioning of the proposed action and/or regulatory requirements of development regulations adopted under chapter 36.70A RCW or other local, state, or federal laws, a determination of nonsignificance or a mitigated determination of nonsignificance is the proper threshold determination.
     (2) A county, city, or town shall make the determination provided for in subsection (1) of this section if:
     (a) In the course of project review, including any required environmental analysis, the local government considers the specific probable adverse environmental impacts of the proposed action and determines that these specific impacts are adequately addressed by the development regulations or other applicable requirements of the comprehensive plan, subarea plan element of the comprehensive plan, or other local, state, or federal rules or laws; and
     (b) The local government bases or conditions its approval on compliance with these requirements or mitigation measures.
     (3) If a county, city, or town's comprehensive plans, subarea plans, and development regulations adequately address a project's probable specific adverse environmental impacts, as determined under subsections (1) and (2) of this section, the county, city, or town shall not impose additional mitigation under this chapter during project review. Project review shall be integrated with environmental analysis under this chapter.
     (4) A comprehensive plan, subarea plan, or development regulation shall be considered to adequately address an impact if the county, city, or town, through the planning and environmental review process under chapter 36.70A RCW and this chapter, has identified the specific adverse environmental impacts and:
     (a) The impacts have been avoided or otherwise mitigated; or
     (b) The legislative body of the county, city, or town has designated as acceptable certain levels of service, land use designations, development standards, or other land use planning required or allowed by chapter 36.70A RCW.
     (5) In deciding whether a specific adverse environmental impact has been addressed by an existing rule or law of another agency with jurisdiction with environmental expertise with regard to a specific environmental impact, the county, city, or town shall consult orally or in writing with that agency and may expressly defer to that agency. In making this deferral, the county, city, or town shall base or condition its project approval on compliance with these other existing rules or laws.
     (6) Nothing in this section limits the authority of an agency in its review or mitigation of a project to adopt or otherwise rely on environmental analyses and requirements under other laws, as provided by this chapter.
     (7) A project action that is consistent with the applicable comprehensive plan and development regulations may not be challenged for noncompliance under this chapter with greenhouse gas emissions requirements if:
     (a) The county, city, or town in which the project action is located has prepared an environmental impact statement under RCW 43.21C.030 for the area covered by the comprehensive plan or subarea plan that includes a greenhouse gas emissions analysis;
     (b) The county, city, or town in which the project action is located has adopted a comprehensive plan or subarea plan and development regulations that comply with subsections (3) and (4) of this section;
     (c) The comprehensive plan and development regulations will reduce greenhouse gas emissions in accordance with RCW 70.235.020, and per capita vehicle miles traveled in accordance with RCW 47.01.440;
     (d) The project action complies with the definition of compact development in RCW 36.70A.108; and
     (e) The project action is located in an urban growth area and a center designated by the county, city, or town comprehensive plan.
     (8)
This section shall apply only to a county, city, or town planning under RCW 36.70A.040.

NEW SECTION.  Sec. 410   A new section is added to chapter 43.21C RCW to read as follows:
     Cities and towns authorizing compact development in designated centers or participating in a regional transfer of development rights program under chapter 43.362 RCW may impose environmental fees on development activity as part of the financing for environmental review under this chapter. Environmental fees imposed under this section:
     (1) May only be for: (a) A subarea plan for which the impacts of compact development have been addressed by the applicable city or town; or (b) a regional transfer of development rights program receiving area for which the impacts of development within the receiving area have been addressed by the applicable city or town;
     (2) May only be for environmental review costs that have been identified as reasonably related to the new development;
     (3) May not exceed a proportionate share of the environmental review costs financed under RCW 36.70A.500, if any, or the costs of environmental review and holding costs that would have been borne by the development if no environmental review had occurred; and
     (4) Must be used to repay a loan authorized under RCW 36.70A.500, if applicable.

Sec. 411   RCW 81.104.015 and 1999 c 202 s 9 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "High capacity transportation system" means a system of public transportation services within an urbanized region operating principally on exclusive rights-of-way, and the supporting services and facilities necessary to implement such a system, including regional transit systems and interim express services and high occupancy vehicle lanes, which taken as a whole, provides a substantially higher level of passenger capacity, speed, and service frequency than traditional public transportation systems operating principally in general purpose roadways.
     (2) "Rail fixed guideway system" means a light, heavy, or rapid rail system, monorail, inclined plane, funicular, trolley, or other fixed rail guideway component of a high capacity transportation system that is not regulated by the Federal Railroad Administration, or its successor. "Rail fixed guideway system" does not mean elevators, moving sidewalks or stairs, and vehicles suspended from aerial cables, unless they are an integral component of a station served by a rail fixed guideway system.
     (3) "Regional transit system" means a high capacity transportation system under the jurisdiction of one or more transit agencies except where a regional transit authority created under chapter 81.112 RCW exists, in which case "regional transit system" means the high capacity transportation system under the jurisdiction of a regional transit authority.
     (4) "Transit agency" means city-owned transit systems, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas.

NEW SECTION.  Sec. 412   A new section is added to chapter 81.112 RCW to read as follows:
     (1) An authority that owns surplus land located within one-half mile of a major transit station must provide qualifying public or nonprofit entities an opportunity of first offer to develop the land. For purposes of this section, a "qualifying public or nonprofit entity" is an entity that: (a) Is eligible for assistance from the housing trust fund established in chapter 43.185 RCW; (b) will seek assistance from the housing trust fund for development of the land; and (c) meets other financial and development requirements of the authority.
     (2) Nothing in this section is intended to conflict with federal requirements or to require an authority to forego federal funding or incentives to develop property around transit stations.

Sec. 413   RCW 82.14.0455 and 2006 c 311 s 16 are each amended to read as follows:
     (1) Subject to the provisions in RCW 36.73.065, a transportation benefit district under chapter 36.73 RCW may fix and impose a sales and use tax in accordance with the terms of this chapter. The tax authorized in this section is in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the boundaries of the district. The rate of tax shall not exceed two-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax. ((The tax may not be imposed for a period exceeding ten years. This tax may be extended for a period not exceeding ten years with an affirmative vote of the voters voting at the election.))
     (2) Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.

NEW SECTION.  Sec. 414   Sections 401 through 413 of this act take effect December 1, 2011.

NEW SECTION.  Sec. 415   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 416   Part headings used in this act are not any part of the law.

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