BILL REQ. #:  H-3900.2 



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SUBSTITUTE HOUSE BILL 2277
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State of Washington62nd Legislature2012 Regular Session

By House Environment (originally sponsored by Representatives Upthegrove, Tharinger, Jinkins, Moscoso, Hudgins, and Fitzgibbon)

READ FIRST TIME 01/31/12.   



     AN ACT Relating to updating the statutes controlling the Puget Sound partnership to reflect the transition from developing the action agenda to implementing the action agenda; amending RCW 90.71.010, 90.71.230, 90.71.250, 90.71.260, 90.71.270, 90.71.280, 90.71.290, 90.71.300, 90.71.310, 90.71.370, 90.71.340, 90.71.360, 43.155.070, 70.146.070, 77.85.130, 79.105.150, 79A.15.040, and 89.08.520; reenacting and amending RCW 70.105D.070; and repealing RCW 43.155.110, 70.105D.120, 70.146.110, 77.85.240, 79.105.610, 79A.15.140, 89.08.580, and 90.50A.080.

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

Sec. 1   RCW 90.71.010 and 2007 c 341 s 2 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Action agenda" means the comprehensive schedule of projects, programs, and other activities designed to achieve a healthy Puget Sound ecosystem that ((is authorized and further described in RCW 90.71.300 and 90.71.310)) was developed under RCW 90.71.300 and 90.71.310 by the Puget Sound partnership, approved by the leadership council, and delivered to the legislature in December 2008, along with any subsequent updates.
     (2) "Action area" means the geographic areas delineated as provided in RCW 90.71.260.
     (3) "Benchmarks" means measurable interim milestones or achievements established to demonstrate progress towards a goal, objective, target, or outcome expressed as a near-term action.
     (4) "Board" means the ecosystem coordination board.
     (5) "Council" means the leadership council.
     (6) "Environmental indicator" means a physical, biological, or chemical measurement, statistic, or value that provides a proximate gauge, or evidence of, the state or condition of Puget Sound.
     (7) "Implementation strategies" means the strategies incorporated on a biennial basis in the action agenda ((developed under)) pursuant to RCW 90.71.310.
     (8) "Nearshore" means the area beginning at the crest of coastal bluffs and extending seaward through the marine photics zone, and to the head of tide in coastal rivers and streams. "Nearshore" also means both shoreline and estuaries.
     (9) "Panel" means the Puget Sound science panel.
     (10) "Partnership" means the Puget Sound partnership.
     (11) "Puget Sound" means Puget Sound and related inland marine waters, including all salt waters of the state of Washington inside the international boundary line between Washington and British Columbia, and lying east of the junction of the Pacific Ocean and the Strait of Juan de Fuca, and the rivers and streams draining to Puget Sound as mapped by water resource inventory areas 1 through 19 in WAC 173-500-040 as it exists on July 1, 2007.
     (12) (("Puget Sound partner" means an entity that has been recognized by the partnership, as provided in RCW 90.71.340, as having consistently achieved outstanding progress in implementing the 2020 action agenda.
     (13)
)) "Watershed groups" means all groups sponsoring or administering watershed programs, including but not limited to local governments, private sector entities, watershed planning units, watershed councils, shellfish protection areas, regional fishery enhancement groups, marine ((resource[s])) resources committees including those working with the Northwest straits commission, nearshore groups, and watershed lead entities.
     (((14))) (13) "Watershed programs" means and includes all watershed-level plans, programs, projects, and activities that relate to or may contribute to the protection or restoration of Puget Sound waters. Such programs include jurisdiction-wide programs regardless of whether more than one watershed is addressed.
     (14) "Near-term action" means the compilation and prioritization of both current ongoing activities, as identified in RCW 90.71.260(4), as well as identified benchmarks.
     (15) "Targets" means regional recovery goals designed to guide the work of organizations and people living in the Puget Sound region. Consistent with RCW 90.71.200(2)(c), targets are not intended to be used for regulatory purposes or recommendations related to grant eligibility under RCW 90.71.340 or 90.71.350(3).

Sec. 2   RCW 90.71.230 and 2007 c 341 s 5 are each amended to read as follows:
     (1) The leadership council shall have the power and duty to:
     (a) Provide leadership and have responsibility for the functions of the partnership, including adopting, revising, and guiding the implementation of the action agenda, allocating funds for Puget Sound recovery, providing progress and other reports, setting strategic priorities and benchmarks, adopting and applying accountability measures, and making appointments to the board and panel;
     (b) Adopt rules, in accordance with chapter 34.05 RCW;
     (c) Create subcommittees and advisory committees as appropriate to assist the council;
     (d) Enter into, amend, and terminate contracts with individuals, corporations, or research institutions to effectuate the purposes of this chapter;
     (e) Make grants to governmental and nongovernmental entities to effectuate the purposes of this chapter;
     (f) Receive such gifts, grants, and endowments, in trust or otherwise, for the use and benefit of the partnership to effectuate the purposes of this chapter;
     (g) Promote extensive public awareness, education, and participation in Puget Sound protection and recovery;
     (h) Work collaboratively with the Hood Canal coordinating council established in chapter 90.88 RCW on Hood Canal-specific issues;
     (i) Maintain complete and consolidated financial information to ensure that all funds received and expended to implement the action agenda have been accounted for; and
     (j) ((Such)) Perform other powers and duties as are necessary and appropriate to carry out the provisions of this chapter.
     (2) The council may delegate functions to the chair and to the executive director, however the council may not delegate its decisional authority regarding ((developing or)) amending the action agenda.
     (3) The council shall work closely with existing organizations and all levels of government to ensure that the action agenda and its implementation are scientifically sound, efficient, and achieve necessary results to accomplish recovery of Puget Sound to health by 2020.
     (4) The council shall support, engage, and foster collaboration among watershed groups to assist in the recovery of Puget Sound.
     (5) When working with federally recognized Indian tribes to ((develop)) update and implement the action agenda, the council shall conform to the procedures and standards required in a government-to-governmental relationship with tribes under the 1989 Centennial Accord between the state of Washington and the sovereign tribal governments in the state of Washington.
     (6) Members of the council shall be compensated in accordance with RCW 43.03.220 and be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

Sec. 3   RCW 90.71.250 and 2007 c 341 s 7 are each amended to read as follows:
     (1) The ((council shall convene the)) ecosystem coordination board ((not later than October 1, 2007.
     (2) The board
)) shall consist of the following:
     (a) One representative from the geographic area of each of the action areas specified in RCW 90.71.260, appointed by the council. The council shall solicit nominations from, at a minimum, counties, cities, and watershed groups;
     (b) Two members representing general business interests, one of whom shall represent in-state general small business interests, both appointed by the council;
     (c) Two members representing environmental interests, appointed by the council;
     (d) Three representatives of tribal governments located in Puget Sound, invited by the governor to participate as members of the board;
     (e) One representative each from counties, cities, and port districts, appointed by the council from nominations submitted by statewide associations representing such local governments;
     (f) Three representatives of state agencies with environmental management responsibilities in Puget Sound, representing the interests of all state agencies, one of whom shall be the commissioner of public lands or his or her designee; and
     (g) Three representatives of federal agencies with environmental management responsibilities in Puget Sound, representing the interests of all federal agencies and invited by the governor to participate as members of the board.
     (((3))) (2) The president of the senate shall appoint two senators, one from each major caucus, as legislative liaisons to the board. The speaker of the house of representatives shall appoint two representatives, one from each major caucus, as legislative liaisons to the board.
     (((4))) (3) The board shall elect one of its members as chair, and one of its members as vice-chair.
     (((5))) (4) The board shall advise and assist the council in carrying out its responsibilities in implementing this chapter, including ((development and)) the implementation and updating of the action agenda. The board's duties also include:
     (a) Assisting cities, counties, ports, tribes, watershed groups, and other governmental and private organizations in the compilation of local programs for consideration for inclusion in revised versions of the action agenda as provided in RCW 90.71.260;
     (b) Upon request of the council, reviewing and making recommendations regarding activities, projects, and programs proposed for inclusion in revised versions of the action agenda, including assessing existing ecosystem scale management, restoration and protection plan elements, activities, projects, and programs for inclusion in revised versions of the action agenda;
     (c) In revised versions of the action agenda, stating whether it has considered or included existing, ongoing projects related to Puget Sound restoration as part of its prioritization process. If the board has not included specific existing, ongoing projects related to Puget Sound restoration in its prioritization process, it must explain why;
     (d) As part of the prioritization process for projects to be included in revised versions of the action agenda, including an assessment of how the Puget Sound partnership's current expenditures related to Puget Sound restoration fit into the prioritization process. In addition, in revised versions of the action agenda, the board shall include an accounting of how the Puget Sound partnership has allocated all federal and state funding to date, as well as how these expenditures relate back to the most recent version of the action agenda;
     (e)
Seeking public and private funding and the commitment of other resources for ((plan)) action agenda implementation;
     (((d))) (f) Assisting the council in conducting public education activities regarding threats to Puget Sound and about local implementation strategies to support the action agenda; and
     (((e))) (g) Recruiting the active involvement of and encouraging the collaboration and communication among governmental and nongovernmental entities, the private sector, and citizens working to achieve the recovery of Puget Sound.
     (((6))) (5) Members of the board, except for federal and state employees, shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

Sec. 4   RCW 90.71.260 and 2007 c 341 s 8 are each amended to read as follows:
     (1) The partnership shall ((develop)) pursue the implementation of the action agenda in part upon the foundation of existing watershed programs that address or contribute to the health of Puget Sound. To ensure full consideration of these watershed programs ((in a timely manner to meet the required date for adoption of the action agenda)), the partnership shall rely largely upon local watershed groups, tribes, cities, counties, special purpose districts, and the private sector, who are engaged in developing and implementing these programs.
     (2) The partnership shall organize ((this work)) the implementation of the action agenda by working with these groups in the following geographic action areas of Puget Sound, which collectively encompass all of the Puget Sound basin and include the areas draining to the marine waters in these action areas:
     (a) Strait of Juan de Fuca;
     (b) The San Juan Islands;
     (c) Whidbey Island;
     (d) North central Puget Sound;
     (e) South central Puget Sound;
     (f) South Puget Sound; and
     (g) Hood Canal.
     (3) The council shall define the geographic delineations of these action areas based upon the common issues and interests of the entities in these action areas, and upon the characteristics of the Sound's physical structure, and the water flows into and within the Sound.
     (4) Prior to implementing updated versions of the action agenda, the executive director, working with the board representatives from each action area, shall invite appropriate tribes, local governments, and watershed groups to convene for the purpose of compiling the existing watershed programs relating or contributing to the health of Puget Sound. The participating groups should work to identify the applicable local plan elements, projects, and programs, together with estimated budget, timelines, and proposed funding sources, that are suitable for adoption into revised versions of the action agenda. This may include a prioritization among plan elements, projects, and programs.
     (5) The partnership may provide assistance to watershed groups in those action areas that are developing and implementing programs included within the action agenda, and to improve coordination among the groups to improve and accelerate the implementation of the action agenda.
     (6) The executive director, working with the board, shall also compile and assess ecosystem scale management, restoration, and protection plans for the Puget Sound basin.
     (a) At a minimum, the compilation shall include the Puget Sound nearshore estuary project, clean-up plans for contaminated aquatic lands and shorelands, aquatic land management plans, state resource management plans, habitat conservation plans, and recovery plans for salmon, orca, and other species in Puget Sound that are listed under the federal endangered species act.
     (b) The board should work to identify and assess applicable ecosystem scale plan elements, projects, and programs, together with estimated budget, timelines, and proposed funding sources((, that are suitable for adoption into the action agenda)).
     (c) When the board identifies conflicts or disputes among ecosystem scale projects or programs, the board may convene the agency managers in an attempt to reconcile the conflicts with the objective of advancing the protection and recovery of Puget Sound.
     (d) If it determines that doing so will increase the likelihood of restoring Puget Sound by 2020, the partnership may explore the utility of federal assurances under the endangered species act, 16 U.S.C. Sec. 1531 et seq., and shall confer with the federal services administering that act.
     (((7) The executive director shall integrate and present the proposed elements from watershed programs and ecosystem-level plans to the council for consideration for inclusion in the action agenda not later than July 1, 2008.))

Sec. 5   RCW 90.71.270 and 2007 c 341 s 9 are each amended to read as follows:
     (1) The council shall appoint a nine-member Puget Sound science panel to provide independent, nonrepresentational scientific advice to the council ((and expertise in identifying environmental indicators and benchmarks for incorporation into the action agenda)).
     (2) ((In establishing the panel,)) The council shall request the Washington academy of sciences, created in chapter 70.220 RCW, ((to nominate fifteen scientists with)) review credentials of nominated scientists to ensure recognized expertise in fields of science essential to the recovery of Puget Sound. Nominees should reflect the full range of scientific and engineering disciplines involved in Puget Sound recovery. ((At a minimum, the Washington academy of sciences shall consider making nominations from scientists associated with federal, state, and local agencies, tribes, the business and environmental communities, members of the K-12, college, and university communities, and members of the board.)) The solicitation should be to all sectors, and candidates may be from all public and private sectors, including scientists associated with federal, state, and local agencies, tribes, the business and environmental communities, members of the K-12, college, and university committees, and members of the board. ((Persons nominated by the Washington academy of sciences)) Nominees and panel members must disclose any potential conflicts of interest, and any financial relationship with any leadership councilmember, and disclose sources of current financial support and contracts relating to Puget Sound recovery.
     (3) The panel shall select a chair and a vice chair. Panel members shall serve four-year terms, except that the council shall determine initial terms of two, three, and four years to provide for staggered terms. The council shall determine reappointments and select replacements or additional members of the panel. No panel member may serve longer than twelve years.
     (4) The executive director shall designate a lead staff scientist to coordinate panel actions, and administrative staff to support panel activities. The legislature intends to provide ongoing funding for staffing of the panel to ensure that it has sufficient capacity to provide independent scientific advice.
     (5) The executive director of the partnership and the science panel shall explore a shared state and federal responsibility for the staffing and administration of the panel. In the event that a federally sponsored Puget Sound recovery office is created, the council may propose that such office provide for staffing and administration of the panel.
     (6) The panel shall assist the council in ((developing and)) revising the action agenda, making recommendations to the action agenda, and making recommendations to the council for updates or revisions.
     (7) Members of the panel shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060, and based upon the availability of funds, the council may contract with members of the panel for compensation for their services under chapter 39.29 RCW. If appointees to the panel are employed by the federal, state, tribal, or local governments, the council may enter into interagency personnel agreements.

Sec. 6   RCW 90.71.280 and 2009 c 99 s 2 are each amended to read as follows:
     (1) The panel shall:
     (a) Assist the council, board, and executive director in carrying out the obligations of the partnership, including ((preparing and)) updating the action agenda;
     (b) As provided in RCW 90.71.290, assist the partnership in ((developing)) maintaining an ecosystem level strategic science program that:
     (i) Addresses monitoring, modeling, data management, and research; and
     (ii) Identifies science gaps and recommends research priorities;
     (c) ((Develop and)) Provide oversight of a competitive peer-reviewed process for soliciting, strategically prioritizing, and funding research and modeling projects;
     (d) ((Develop and)) Implement an appropriate process for peer review of monitoring, research, and modeling conducted as part of the strategic science program;
     (e) Provide input to the executive director in developing biennial implementation strategies; and
     (f) Offer an ecosystem-wide perspective on the science work being conducted in Puget Sound and by the partnership.
     (2) The panel should collaborate with other scientific groups and consult other scientists in conducting its work. To the maximum extent possible, the panel should seek to integrate the state-sponsored Puget Sound science program with the Puget Sound science activities of federal agencies, including working toward an integrated research agenda and Puget Sound science work plan.
     (3) ((By July 31, 2008,)) The panel shall identify environmental indicators measuring the health of Puget Sound, and recommend environmental benchmarks that need to be achieved to meet the goals of the action agenda. The council shall confer with the panel on incorporating the indicators and benchmarks, as necessary, into any updates of the action agenda.

Sec. 7   RCW 90.71.290 and 2007 c 341 s 11 are each amended to read as follows:
     (1) The strategic science program shall be developed by the panel with assistance and staff support provided by the executive director. The science program may include:
     (a) Continuation of the Puget Sound assessment and monitoring program, as provided in RCW 90.71.060, as well as other monitoring or modeling programs deemed appropriate by the executive director;
     (b) Development of a monitoring program, in addition to the provisions of RCW 90.71.060, including baselines, protocols, guidelines, and quantifiable performance measures, to be recommended as ((an)) elements of and updates to the action agenda;
     (c) Recommendations regarding data collection and management to facilitate easy access and use of data by all participating agencies and the public; and
     (d) A list of critical research needs.
     (2) The strategic science program may not become an official document until a majority of the members of the council votes for its adoption.
     (3) A Puget Sound science update shall be developed by the panel with assistance and staff support provided by the executive director. The panel ((shall submit the initial update to the executive director by April 2010, and subsequent)) may submit updates as necessary to reflect new scientific understandings. The update shall:
     (a) Describe the current scientific understanding of various physical attributes of Puget Sound;
     (b) Serve as the scientific basis for the selection of environmental indicators measuring the health of Puget Sound; and
     (c) Serve as the scientific basis for the status and trends of those environmental indicators.
     (4) The executive director shall provide the Puget Sound science update to the Washington academy of sciences, the governor, and appropriate legislative committees, and include:
     (a) A summary of information in existing updates; and
     (b) Changes adopted in subsequent updates and in the state of the Sound reports produced pursuant to RCW 90.71.370.
     (5) A biennial science work plan shall be developed by the panel, with assistance and staff support provided by the executive director, and approved by the council. The biennial science work plan shall include, at a minimum:
     (a) Identification of recommendations from scientific and technical reports relating to Puget Sound;
     (b) A description of the Puget Sound science-related activities being conducted by various entities in the region, including studies, models, monitoring, research, and other appropriate activities;
     (c) A description of whether the ongoing work addresses the recommendations and, if not, identification of necessary actions to fill gaps;
     (d) Identification of specific biennial science work actions to be done over the course of the work plan, and how these actions address science needs in Puget Sound; and
     (e) Recommendations for improvements to the ongoing science work in Puget Sound.

Sec. 8   RCW 90.71.300 and 2007 c 341 s 12 are each amended to read as follows:
     (1) The action agenda shall consist of the goals and objectives in this section, implementation strategies to meet measurable outcomes, benchmarks, and identification of responsible entities. By 2020, the action agenda shall strive to achieve the following goals:
     (a) A healthy human population supported by a healthy Puget Sound that is not threatened by changes in the ecosystem;
     (b) A quality of human life that is sustained by a functioning Puget Sound ecosystem;
     (c) Healthy and sustaining populations of native species in Puget Sound, including a robust food web;
     (d) A healthy Puget Sound where freshwater, estuary, nearshore, marine, and upland habitats are protected, restored, and sustained;
     (e) An ecosystem that is supported by groundwater levels as well as river and stream flow levels sufficient to sustain people, fish, and wildlife, and the natural functions of the environment;
     (f) Fresh and marine waters and sediments of a sufficient quality so that the waters in the region are safe for drinking, swimming, shellfish harvest and consumption, and other human uses and enjoyment, and are not harmful to the native marine mammals, fish, birds, and shellfish of the region.
     (2) The action agenda shall be ((developed)) updated and implemented to achieve the following objectives:
     (a) Protect existing habitat and prevent further losses;
     (b) Restore habitat functions and values;
     (c) Significantly reduce toxics entering Puget Sound fresh and marine waters;
     (d) Significantly reduce nutrients and pathogens entering Puget Sound fresh and marine waters;
     (e) Improve water quality and habitat by managing storm water runoff;
     (f) Provide water for people, fish and wildlife, and the environment;
     (g) Protect ecosystem biodiversity and recover imperiled species; and
     (h) Build and sustain the capacity for action.

Sec. 9   RCW 90.71.310 and 2008 c 329 s 926 are each amended to read as follows:
     (1) The council shall ((develop)) maintain, and update as necessary, a science-based action agenda that leads to the recovery of Puget Sound by 2020 and achievement of the goals and objectives established in RCW 90.71.300. The action agenda shall:
     (a) Address all geographic areas of Puget Sound including upland areas and tributary rivers and streams that affect Puget Sound;
     (b) Describe the problems affecting Puget Sound's health using supporting scientific data, and provide a summary of the historical environmental health conditions of Puget Sound so as to determine past levels of pollution and restorative actions that have established the current health conditions of Puget Sound;
     (c) Meet the goals and objectives described in RCW 90.71.300, including measurable outcomes for each goal and objective specifically describing what will be achieved, how it will be quantified, and how progress towards outcomes will be measured. The action agenda shall include near-term and long-term benchmarks designed to ensure continuous progress needed to reach the goals, objectives, and designated outcomes by 2020. The council shall consult with the panel in developing these elements of the plan;
     (d) Identify and prioritize the strategies and actions necessary to restore and protect Puget Sound and to achieve the goals and objectives described in RCW 90.71.300;
     (e) Identify the agency, entity, or person responsible for completing the necessary strategies and actions, and potential sources of funding;      
     (f) Include prioritized actions ((identified through the assembled proposals from)) for each of the seven action areas and the identification and assessment of ecosystem scale programs as provided in RCW 90.71.260;
     (g) Include specific actions to address aquatic rehabilitation zone one, as defined in RCW 90.88.010;
     (h) Incorporate any additional goals adopted by the council; and
     (i) Incorporate appropriate actions to carry out the biennial science work plan created in RCW 90.71.290.
     (2) In ((developing)) revising the action agenda ((and any subsequent revisions)), the council shall, when appropriate, incorporate the following:
     (a) Water quality, water quantity, sediment quality, watershed, marine resource, and habitat restoration plans created by governmental agencies, watershed groups, and marine and shoreline groups. The council shall consult with the board in incorporating these plans;
     (b) Recovery plans for salmon, orca, and other species in Puget Sound listed under the federal endangered species act;
     (c) Existing plans and agreements signed by the governor, the commissioner of public lands, other state officials, or by federal agencies((;
     (d) Appropriate portions of the Puget Sound water quality management plan existing on July 1, 2007
)).
     (3) ((Until the action agenda is adopted, the existing Puget Sound management plan and the 2007-09 Puget Sound biennial plan shall remain in effect. The existing Puget Sound management plan shall also continue to serve as the comprehensive conservation and management plan for the purposes of the national estuary program described in section 320 of the federal clean water act, until replaced by the action agenda and approved by the United States environmental protection agency as the new comprehensive conservation and management plan.
     (4) The council shall adopt the action agenda by December 1, 2008.
)) The council shall revise the action agenda ((as needed,)) and ((revise)) the implementation strategies every two years, in odd-numbered years, using an adaptive management process informed by tracking actions and monitoring results in Puget Sound. In revising the action agenda and the implementation strategies, the council shall consult the panel and the board and provide opportunity for public review and comment. Biennial updates shall:
     (a) Contain a detailed description of prioritized actions necessary in the biennium to achieve the goals, objectives, outcomes, and benchmarks of progress identified in the action agenda;
     (b) Identify the agency, entity, or person responsible for completing the necessary action; and
     (c) Establish biennial benchmarks for near-term actions.
     (((5))) (4) The action agenda shall be ((organized and)) maintained in a single document to facilitate public accessibility to the plan.
     (5) The joint legislative audit and review committee shall review and provide an update on the extent to which the partnership's 2012 action agenda, state of the sound report, and other activities implement the recommendations of the committee's 2011 audit entitled "Processes required to measure Puget Sound restoration are not yet in place." The update must be provided to the relevant policy committee of the senate and house of representatives by January 1, 2013.

Sec. 10   RCW 90.71.370 and 2011 1st sp.s. c 50 s 977 are each amended to read as follows:
     (1) By ((December 1, 2008, and by)) September 1st of each even-numbered year beginning in 2010, the council shall provide to the governor and the appropriate fiscal committees of the senate and house of representatives its recommendations for the funding necessary to implement the action agenda in the succeeding biennium. The recommendations shall:
     (a) Identify the funding needed by action agenda element;
     (b) Address funding responsibilities among local, state, and federal governments, as well as nongovernmental funding; and
     (c) Address funding needed to support the work of the partnership, the panel, the ecosystem work group, and entities assisting in coordinating local efforts to implement the plan.
     (2) ((In the 2008 report required under subsection (1) of this section, the council shall include recommendations for projected funding needed through 2020 to implement the action agenda; funding needs for science panel staff; identify methods to secure stable and sufficient funding to meet these needs; and include proposals for new sources of funding to be dedicated to Puget Sound protection and recovery. In preparing the science panel staffing proposal, the council shall consult with the panel.
     (3)
)) By November 1st of each ((odd-numbered)) even-numbered year beginning in ((2009)) 2012, the council shall produce a state of the Sound report that includes, at a minimum:
     (a) An assessment of progress by state and nonstate entities in implementing the action agenda, including accomplishments in the use of state funds for action agenda implementation;
     (b) A description of actions by implementing entities that are inconsistent with the action agenda and steps taken to remedy the inconsistency;
     (c) The comments by the panel on progress in implementing the plan, as well as findings arising from the assessment and monitoring program;
     (d) A review of citizen concerns provided to the partnership and the disposition of those concerns;
     (e) A review of the expenditures of funds to state agencies for the implementation of programs affecting the protection and recovery of Puget Sound, and an assessment of whether the use of the funds is consistent with the action agenda; and
     (f) An identification of all funds provided to the partnership, and recommendations as to how future state expenditures for all entities, including the partnership, could better match the priorities of the action agenda.
     (((4))) (3)(a) The council shall review state programs that fund facilities and activities that may contribute to action agenda implementation. By November 1, 2009, the council shall provide initial recommendations regarding program changes to the governor and appropriate fiscal and policy committees of the senate and house of representatives. By November 1, 2010, the council shall provide final recommendations regarding program changes, including proposed legislation to implement the recommendation, to the governor and appropriate fiscal and policy committees of the senate and house of representatives.
     (b) The review in this subsection shall be conducted with the active assistance and collaboration of the agencies administering these programs, and in consultation with local governments and other entities receiving funding from these programs:
     (i) Water pollution control facilities financing, chapter 70.146 RCW;
     (ii) The water pollution control revolving fund, chapter 90.50A RCW;
     (iii) The public works assistance account, chapter 43.155 RCW;
     (iv) The aquatic lands enhancement account, RCW 79.105.150;
     (v) The state toxics control account and local toxics control account and clean-up program, chapter 70.105D RCW;
     (vi) The acquisition of habitat conservation and outdoor recreation land, chapter 79A.15 RCW;
     (vii) The salmon recovery funding board, RCW 77.85.110 through 77.85.150;
     (viii) The community economic revitalization board, chapter 43.160 RCW;
     (ix) Other state financial assistance to water quality-related projects and activities; and
     (x) Water quality financial assistance from federal programs administered through state programs or provided directly to local governments in the Puget Sound basin.
     (c) The council's review shall include but not be limited to:
     (i) Determining the level of funding and types of projects and activities funded through the programs that contribute to implementation of the action agenda;
     (ii) Evaluating the procedures and criteria in each program for determining which projects and activities to fund, and their relationship to the goals and priorities of the action agenda;
     (iii) Assessing methods for ensuring that the goals and priorities of the action agenda are given priority when program funding decisions are made regarding water quality-related projects and activities in the Puget Sound basin and habitat-related projects and activities in the Puget Sound basin;
     (iv) Modifying funding criteria so that projects, programs, and activities that are inconsistent with the action agenda are ineligible for funding;
     (v) Assessing ways to incorporate a strategic funding approach for the action agenda within the outcome-focused performance measures required by RCW 43.41.270 in administering natural resource-related and environmentally based grant and loan programs.
     (((5) During the 2009-2011 fiscal biennium, the council's review must result in a ranking of projects affecting the protection and recovery of the Puget Sound basin that are proposed in the governor's capital budget submitted under RCW 43.88.060. The ranking shall include recommendations for reallocation of total requested funds for Puget Sound basin projects to achieve the greatest positive outcomes for protection and recovery of Puget Sound and shall be submitted to the appropriate fiscal committees of the legislature no later than February 1, 2011.
     (6)
)) (4) During the 2011-2013 fiscal biennium, the council shall by November 1, 2012, produce the state of the Sound report as defined in subsection (((3))) (2) of this section.

Sec. 11   RCW 90.71.340 and 2007 c 341 s 16 are each amended to read as follows:
     (1) The legislature intends that fiscal incentives and disincentives be used as accountability measures designed to achieve consistency with the action agenda by:
     (a) Ensuring that projects and activities in conflict with the action agenda are not funded;
     (b) Aligning environmental investments with strategic priorities of the action agenda; and
     (c) Using state grant and loan programs to encourage consistency with the action agenda.
     (2) The council shall adopt measures to ensure that funds appropriated for implementation of the action agenda and identified by proviso or specifically referenced in the omnibus appropriations act pursuant to RCW 43.88.030(1)(g) are expended in a manner that will achieve the intended results. In developing such performance measures, the council shall establish criteria for the expenditure of the funds consistent with the responsibilities and timelines under the action agenda, and require reporting and tracking of funds expended. The council may adopt other measures, such as requiring interagency agreements regarding the expenditure of provisoed or specifically referenced Puget Sound funds.
     (3) The partnership shall work with other state agencies providing grant and loan funds or other financial assistance for projects and activities that impact the health of the Puget Sound ecosystem under chapters 43.155, 70.105D, 70.146, 77.85, 79.105, 79A.15, 89.08, and 90.50A RCW to, within the authorities of the programs, develop consistent funding criteria that prohibits funding projects and activities that are in conflict with the action agenda.
     (4) ((The partnership shall develop a process and criteria by which entities that consistently achieve outstanding progress in implementing the action agenda are designated as Puget Sound partners. State agencies shall work with the partnership to revise their grant, loan, or other financial assistance allocation criteria to create a preference for entities designated as Puget Sound partners for funds allocated to the Puget Sound basin, pursuant to RCW 43.155.070, 70.105D.070, 70.146.070, 77.85.130, 79.105.150, 79A.15.040, 89.08.520, and 90.50A.040. This process shall be developed on a timeline that takes into consideration state grant and loan funding cycles.
     (5)
)) Any entity that receives state funds to implement actions required in the action agenda shall report biennially to the council on progress in completing the action and whether expected results have been achieved within the time frames specified in the action agenda.

Sec. 12   RCW 90.71.360 and 2007 c 341 s 18 are each amended to read as follows:
     (1) The partnership shall not have regulatory authority nor authority to transfer the responsibility for, or implementation of, any state regulatory program, unless otherwise specifically authorized by the legislature.
     (2) The action agenda ((may)) does not create a legally enforceable duty to review or approve permits, or to adopt plans or regulations. The action agenda ((may)) does not authorize the adoption of rules under chapter 34.05 RCW creating a legally enforceable duty applicable to the review or approval of permits or to the adoption of plans or regulations. No action of the partnership may alter the forest practices rules adopted pursuant to chapter 76.09 RCW, or any associated habitat conservation plan. Any changes in forest practices identified by the processes established in this chapter as necessary to fully recover the health of Puget Sound by 2020 may only be realized through the processes established in RCW 76.09.370 and other designated processes established in Title 76 RCW. Nothing in this subsection or subsection (1) of this section limits the accountability provisions of this chapter.
     (3) Nothing in this chapter limits or alters the existing legal authority of local governments, nor does it create a legally enforceable duty upon local governments. When a local government proposes to take an action inconsistent with the action agenda, it shall inform the council and identify the reasons for taking the action. If a local government chooses to take an action inconsistent with the action agenda or chooses not to take action required by the action agenda, it will be subject to the accountability measures in this chapter which can be used at the discretion of the council.

Sec. 13   RCW 43.155.070 and 2009 c 518 s 16 are each amended to read as follows:
     (1) To qualify for loans or pledges under this chapter the board must determine that a local government meets all of the following conditions:
     (a) The city or county must be imposing a tax under chapter 82.46 RCW at a rate of at least one-quarter of one percent;
     (b) The local government must have developed a capital facility plan; and
     (c) The local government must be using all local revenue sources which are reasonably available for funding public works, taking into consideration local employment and economic factors.
     (2) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town planning under RCW 36.70A.040 must have adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040. This subsection does not require any county, city, or town planning under RCW 36.70A.040 to adopt a comprehensive plan or development regulations before requesting or receiving a loan or loan guarantee under this chapter if such request is made before the expiration of the time periods specified in RCW 36.70A.040. A county, city, or town planning under RCW 36.70A.040 which has not adopted a comprehensive plan and development regulations within the time periods specified in RCW 36.70A.040 is not prohibited from receiving a loan or loan guarantee under this chapter if the comprehensive plan and development regulations are adopted as required by RCW 36.70A.040 before submitting a request for a loan or loan guarantee.
     (3) In considering awarding loans for public facilities to special districts requesting funding for a proposed facility located in a county, city, or town planning under RCW 36.70A.040, the board shall consider whether the county, city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.
     (4) The board shall develop a priority process for public works projects as provided in this section. The intent of the priority process is to maximize the value of public works projects accomplished with assistance under this chapter. The board shall attempt to assure a geographical balance in assigning priorities to projects. The board shall consider at least the following factors in assigning a priority to a project:
     (a) Whether the local government receiving assistance has experienced severe fiscal distress resulting from natural disaster or emergency public works needs;
     (b) ((Except as otherwise conditioned by RCW 43.155.110, whether the entity receiving assistance is a Puget Sound partner, as defined in RCW 90.71.010;
     (c)
)) Whether the project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310;
     (((d))) (c) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;
     (((e))) (d) Whether the applicant has developed and adhered to guidelines regarding its permitting process for those applying for development permits consistent with section 1(2), chapter 231, Laws of 2007;
     (((f))) (e) The cost of the project compared to the size of the local government and amount of loan money available;
     (((g))) (f) The number of communities served by or funding the project;
     (((h))) (g) Whether the project is located in an area of high unemployment, compared to the average state unemployment;
     (((i))) (h) Whether the project is the acquisition, expansion, improvement, or renovation by a local government of a public water system that is in violation of health and safety standards, including the cost of extending existing service to such a system;
     (((j))) (i) Except as otherwise conditioned by RCW 43.155.120, and effective one calendar year following the development of model evergreen community management plans and ordinances under RCW 35.105.050, whether the entity receiving assistance has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030;
     (((k))) (j) The relative benefit of the project to the community, considering the present level of economic activity in the community and the existing local capacity to increase local economic activity in communities that have low economic growth; and
     (((l))) (k) Other criteria that the board considers advisable.
     (5) Existing debt or financial obligations of local governments shall not be refinanced under this chapter. Each local government applicant shall provide documentation of attempts to secure additional local or other sources of funding for each public works project for which financial assistance is sought under this chapter.
     (6) Before November 1st of each even-numbered year, the board shall develop and submit to the appropriate fiscal committees of the senate and house of representatives a description of the loans made under RCW 43.155.065, 43.155.068, and subsection (9) of this section during the preceding fiscal year and a prioritized list of projects which are recommended for funding by the legislature, including one copy to the staff of each of the committees. The list shall include, but not be limited to, a description of each project and recommended financing, the terms and conditions of the loan or financial guarantee, the local government jurisdiction and unemployment rate, demonstration of the jurisdiction's critical need for the project and documentation of local funds being used to finance the public works project. The list shall also include measures of fiscal capacity for each jurisdiction recommended for financial assistance, compared to authorized limits and state averages, including local government sales taxes; real estate excise taxes; property taxes; and charges for or taxes on sewerage, water, garbage, and other utilities.
     (7) The board shall not sign contracts or otherwise financially obligate funds from the public works assistance account before the legislature has appropriated funds for a specific list of public works projects. The legislature may remove projects from the list recommended by the board. The legislature shall not change the order of the priorities recommended for funding by the board.
     (8) Subsection (7) of this section does not apply to loans made under RCW 43.155.065, 43.155.068, and subsection (9) of this section.
     (9) Loans made for the purpose of capital facilities plans shall be exempted from subsection (7) of this section.
     (10) To qualify for loans or pledges for solid waste or recycling facilities under this chapter, a city or county must demonstrate that the solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70.95 RCW.
     (11) After January 1, 2010, any project designed to address the effects of storm water or wastewater on Puget Sound may be funded under this section only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.

Sec. 14   RCW 70.105D.070 and 2011 1st sp.s. c 50 s 964 are each reenacted and amended to read as follows:
     (1) The state toxics control account and the local toxics control account are hereby created in the state treasury.
     (2) The following moneys shall be deposited into the state toxics control account: (a) Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-three one-hundredths of one percent; (b) the costs of remedial actions recovered under this chapter or chapter 70.105A RCW; (c) penalties collected or recovered under this chapter; and (d) any other money appropriated or transferred to the account by the legislature. Moneys in the account may be used only to carry out the purposes of this chapter, including but not limited to the following activities:
     (i) The state's responsibility for hazardous waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.105 RCW;
     (ii) The state's responsibility for solid waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.95 RCW;
     (iii) The hazardous waste cleanup program required under this chapter;
     (iv) State matching funds required under the federal cleanup law;
     (v) Financial assistance for local programs in accordance with chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;
     (vi) State government programs for the safe reduction, recycling, or disposal of hazardous wastes from households, small businesses, and agriculture;
     (vii) Hazardous materials emergency response training;
     (viii) Water and environmental health protection and monitoring programs;
     (ix) Programs authorized under chapter 70.146 RCW;
     (x) A public participation program, including regional citizen advisory committees;
     (xi) Public funding to assist potentially liable persons to pay for the costs of remedial action in compliance with cleanup standards under RCW 70.105D.030(2)(e) but only when the amount and terms of such funding are established under a settlement agreement under RCW 70.105D.040(4) and when the director has found that the funding will achieve both (A) a substantially more expeditious or enhanced cleanup than would otherwise occur, and (B) the prevention or mitigation of unfair economic hardship;
     (xii) Development and demonstration of alternative management technologies designed to carry out the hazardous waste management priorities of RCW 70.105.150;
     (xiii) During the 2009-2011 and 2011-2013 fiscal biennia, shoreline update technical assistance;
     (xiv) During the 2009-2011 fiscal biennium, multijurisdictional permitting teams; and
     (xv) During the 2011-2013 fiscal biennium, actions for reducing public exposure to toxic air pollution.
     (3) The following moneys shall be deposited into the local toxics control account: Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-seven one-hundredths of one percent.
     (a) Moneys deposited in the local toxics control account shall be used by the department for grants or loans to local governments for the following purposes in descending order of priority:
     (i) Remedial actions;
     (ii) Hazardous waste plans and programs under chapter 70.105 RCW;
     (iii) Solid waste plans and programs under chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;
     (iv) Funds for a program to assist in the assessment and cleanup of sites of methamphetamine production, but not to be used for the initial containment of such sites, consistent with the responsibilities and intent of RCW 69.50.511; and
     (v) Cleanup and disposal of hazardous substances from abandoned or derelict vessels, defined for the purposes of this section as vessels that have little or no value and either have no identified owner or have an identified owner lacking financial resources to clean up and dispose of the vessel, that pose a threat to human health or the environment.
     (b) Funds for plans and programs shall be allocated consistent with the priorities and matching requirements established in chapters 70.105, 70.95C, 70.95I, and 70.95 RCW, except that ((any applicant that is a Puget Sound partner, as defined in RCW 90.71.010, along with)) any project that is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310, shall((, except as conditioned by RCW 70.105D.120,)) receive priority for any available funding for any grant or funding programs or sources that use a competitive bidding process. During the 2007-2009 fiscal biennium, moneys in the account may also be used for grants to local governments to retrofit public sector diesel equipment and for storm water planning and implementation activities.
     (c) To expedite cleanups throughout the state, the department shall partner with local communities and liable parties for cleanups. The department is authorized to use the following additional strategies in order to ensure a healthful environment for future generations:
     (i) The director may alter grant-matching requirements to create incentives for local governments to expedite cleanups when one of the following conditions exists:
     (A) Funding would prevent or mitigate unfair economic hardship imposed by the clean-up liability;
     (B) Funding would create new substantial economic development, public recreational, or habitat restoration opportunities that would not otherwise occur; or
     (C) Funding would create an opportunity for acquisition and redevelopment of vacant, orphaned, or abandoned property under RCW 70.105D.040(5) that would not otherwise occur;
     (ii) The use of outside contracts to conduct necessary studies;
     (iii) The purchase of remedial action cost-cap insurance, when necessary to expedite multiparty clean-up efforts.
     (d) To facilitate and expedite cleanups using funds from the local toxics control account, during the 2009-2011 fiscal biennium the director may establish grant-funded accounts to hold and disperse local toxics control account funds and funds from local governments to be used for remedial actions.
     (4) Except for unanticipated receipts under RCW 43.79.260 through 43.79.282, moneys in the state and local toxics control accounts may be spent only after appropriation by statute.
     (5) Except during the 2009-2011 fiscal biennium, one percent of the moneys deposited into the state and local toxics control accounts shall be allocated only for public participation grants to persons who may be adversely affected by a release or threatened release of a hazardous substance and to not-for-profit public interest organizations. The primary purpose of these grants is to facilitate the participation by persons and organizations in the investigation and remedying of releases or threatened releases of hazardous substances and to implement the state's solid and hazardous waste management priorities. No grant may exceed sixty thousand dollars. Grants may be renewed annually. Moneys appropriated for public participation from either account which are not expended at the close of any biennium shall revert to the state toxics control account.
     (6) No moneys deposited into either the state or local toxics control account may be used for solid waste incinerator feasibility studies, construction, maintenance, or operation, or, after January 1, 2010, for projects designed to address the restoration of Puget Sound, funded in a competitive grant process, that are in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (7) The department shall adopt rules for grant or loan issuance and performance.
     (8) During the 2007-2009 and 2009-2011 fiscal biennia, the legislature may transfer from the local toxics control account to either the state general fund or the oil spill prevention account, or both such amounts as reflect excess fund balance in the account.
     (9) During the 2009-2011 fiscal biennium, the local toxics control account may also be used for a standby rescue tug at Neah Bay, local government shoreline update grants, private and public sector diesel equipment retrofit, and oil spill prevention, preparedness, and response activities.
     (10) During the 2009-2011 fiscal biennium, the legislature may transfer from the state toxics control account to the state general fund such amounts as reflect the excess fund balance in the account.
     (11) During the 2011-2013 fiscal biennium, the local toxics control account may also be used for local government shoreline update grants and actions for reducing public exposure to toxic air pollution.

Sec. 15   RCW 70.146.070 and 2008 c 299 s 26 are each amended to read as follows:
     (1) When making grants or loans for water pollution control facilities, the department shall consider the following:
     (a) The protection of water quality and public health;
     (b) The cost to residential ratepayers if they had to finance water pollution control facilities without state assistance;
     (c) Actions required under federal and state permits and compliance orders;
     (d) The level of local fiscal effort by residential ratepayers since 1972 in financing water pollution control facilities;
     (e) ((Except as otherwise conditioned by RCW 70.146.110, whether the entity receiving assistance is a Puget Sound partner, as defined in RCW 90.71.010;
     (f)
)) Whether the project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310;
     (((g))) (f) Except as otherwise provided in RCW 70.146.120, and effective one calendar year following the development and statewide availability of model evergreen community management plans and ordinances under RCW 35.105.050, whether the project is sponsored by an entity that has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030;
     (((h))) (g) The extent to which the applicant county or city, or if the applicant is another public body, the extent to which the county or city in which the applicant public body is located, has established programs to mitigate nonpoint pollution of the surface or subterranean water sought to be protected by the water pollution control facility named in the application for state assistance; and
     (((i))) (h) The recommendations of the Puget Sound partnership, created in RCW 90.71.210, and any other board, council, commission, or group established by the legislature or a state agency to study water pollution control issues in the state.
     (2) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town planning under RCW 36.70A.040 may not receive a grant or loan for water pollution control facilities unless it has adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040. This subsection does not require any county, city, or town planning under RCW 36.70A.040 to adopt a comprehensive plan or development regulations before requesting or receiving a grant or loan under this chapter if such request is made before the expiration of the time periods specified in RCW 36.70A.040. A county, city, or town planning under RCW 36.70A.040 which has not adopted a comprehensive plan and development regulations within the time periods specified in RCW 36.70A.040 is not prohibited from receiving a grant or loan under this chapter if the comprehensive plan and development regulations are adopted as required by RCW 36.70A.040 before submitting a request for a grant or loan.
     (3) Whenever the department is considering awarding grants or loans for public facilities to special districts requesting funding for a proposed facility located in a county, city, or town planning under RCW 36.70A.040, it shall consider whether the county, city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.
     (4) After January 1, 2010, any project designed to address the effects of water pollution on Puget Sound may be funded under this chapter only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.

Sec. 16   RCW 77.85.130 and 2011 c 20 s 16 are each amended to read as follows:
     (1) The salmon recovery funding board shall develop procedures and criteria for allocation of funds for salmon habitat projects and salmon recovery activities on a statewide basis to address the highest priorities for salmon habitat protection and restoration. To the extent practicable the board shall adopt an annual allocation of funding. The allocation should address both protection and restoration of habitat, and should recognize the varying needs in each area of the state on an equitable basis. The board has the discretion to partially fund, or to fund in phases, salmon habitat projects. The board may annually establish a maximum amount of funding available for any individual project, subject to available funding. No projects required solely as a mitigation or a condition of permitting are eligible for funding.
     (2)(a) In evaluating, ranking, and awarding funds for projects and activities the board shall give preference to projects that:
     (i) Are based upon the limiting factors analysis identified under RCW 77.85.060;
     (ii) Provide a greater benefit to salmon recovery based upon the stock status information contained in the department of fish and wildlife salmonid stock inventory (SASSI), the salmon and steelhead habitat inventory and assessment project (SSHIAP), and any comparable science-based assessment when available;
     (iii) Will benefit listed species and other fish species;
     (iv) Will preserve high quality salmonid habitat;
     (v) Are included in a regional or watershed-based salmon recovery plan that accords the project, action, or area a high priority for funding; and
     (vi) ((Are, except as provided in RCW 77.85.240, sponsored by an entity that is a Puget Sound partner, as defined in RCW 90.71.010; and
     (vii)
)) Are projects referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (b) In evaluating, ranking, and awarding funds for projects and activities the board shall also give consideration to projects that:
     (i) Are the most cost-effective;
     (ii) Have the greatest matched or in-kind funding;
     (iii) Will be implemented by a sponsor with a successful record of project implementation;
     (iv) Involve members of the Washington conservation corps established in chapter 43.220 RCW or the veterans conservation corps established in RCW 43.60A.150; and
     (v) Are part of a regionwide list developed by lead entities.
     (3) The board may reject, but not add, projects from a habitat project list submitted by a lead entity for funding.
     (4) The board shall establish criteria for determining when block grants may be made to a lead entity. The board may provide block grants to the lead entity to implement habitat project lists developed under RCW 77.85.050, subject to available funding. The board shall determine an equitable minimum amount of project funds for each recovery region, and shall distribute the remainder of funds on a competitive basis. The board may also provide block grants to the lead entity or regional recovery organization to assist in carrying out functions described under this chapter. Block grants must be expended consistent with the priorities established for the board in subsection (2) of this section. Lead entities or regional recovery organizations receiving block grants under this subsection shall provide an annual report to the board summarizing how funds were expended for activities consistent with this chapter, including the types of projects funded, project outcomes, monitoring results, and administrative costs.
     (5) The board may waive or modify portions of the allocation procedures and standards adopted under this section in the award of grants or loans to conform to legislative appropriations directing an alternative award procedure or when the funds to be awarded are from federal or other sources requiring other allocation procedures or standards as a condition of the board's receipt of the funds. The board shall develop an integrated process to manage the allocation of funding from federal and state sources to minimize delays in the award of funding while recognizing the differences in state and legislative appropriation timing.
     (6) The board may award a grant or loan for a salmon recovery project on private or public land when the landowner has a legal obligation under local, state, or federal law to perform the project, when expedited action provides a clear benefit to salmon recovery, and there will be harm to salmon recovery if the project is delayed. For purposes of this subsection, a legal obligation does not include a project required solely as a mitigation or a condition of permitting.
     (7) Property acquired or improved by a project sponsor may be conveyed to a federal agency if: (a) The agency agrees to comply with all terms of the grant or loan to which the project sponsor was obligated; or (b) the board approves: (i) Changes in the terms of the grant or loan, and the revision or removal of binding deed of right instruments; and (ii) a memorandum of understanding or similar document ensuring that the facility or property will retain, to the extent feasible, adequate habitat protections; and (c) the appropriate legislative authority of the county or city with jurisdiction over the project area approves the transfer and provides notification to the board.
     (8) Any project sponsor receiving funding from the salmon recovery funding board that is not subject to disclosure under chapter 42.56 RCW must, as a mandatory contractual prerequisite to receiving the funding, agree to disclose any information in regards to the expenditure of that funding as if the project sponsor was subject to the requirements of chapter 42.56 RCW.
     (9) After January 1, 2010, any project designed to address the restoration of Puget Sound may be funded under this chapter only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.

Sec. 17   RCW 79.105.150 and 2011 2nd sp.s. c 9 s 911 are each amended to read as follows:
     (1) After deduction for management costs as provided in RCW 79.64.040 and payments to towns under RCW 79.115.150(2), all moneys received by the state from the sale or lease of state-owned aquatic lands and from the sale of valuable material from state-owned aquatic lands shall be deposited in the aquatic lands enhancement account which is hereby created in the state treasury. After appropriation, these funds shall be used solely for aquatic lands enhancement projects; for the purchase, improvement, or protection of aquatic lands for public purposes; for providing and improving access to the lands; and for volunteer cooperative fish and game projects. During the 2009-2011 and 2011-2013 fiscal biennia, the aquatic lands enhancement account may also be used for scientific research as part of the adaptive management process and for developing a planning report for McNeil Island. During the 2009-2011 and 2011-2013 fiscal biennia, the legislature may transfer from the aquatic lands enhancement account to the state general fund such amounts as reflect excess fund balance of the account. During the 2011-2013 fiscal biennium, the aquatic lands enhancement account may be used to support the shellfish program, the ballast water program, and the Puget Sound toxic sampling program at the department of fish and wildlife, and the knotweed program at the department of agriculture.
     (2) In providing grants for aquatic lands enhancement projects, the recreation and conservation funding board shall:
     (a) Require grant recipients to incorporate the environmental benefits of the project into their grant applications;
     (b) Utilize the statement of environmental benefits, consideration((, except as provided in RCW 79.105.610, of whether the applicant is a Puget Sound partner, as defined in RCW 90.71.010,)) of whether a project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310, and except as otherwise provided in RCW 79.105.630, and effective one calendar year following the development and statewide availability of model evergreen community management plans and ordinances under RCW 35.105.050, whether the applicant is an entity that has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030 in its prioritization and selection process; and
     (c) Develop appropriate outcome-focused performance measures to be used both for management and performance assessment of the grants.
     (3) To the extent possible, the department should coordinate its performance measure system with other natural resource-related agencies as defined in RCW 43.41.270.
     (4) The department shall consult with affected interest groups in implementing this section.
     (5) After January 1, 2010, any project designed to address the restoration of Puget Sound may be funded under this chapter only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.

Sec. 18   RCW 79A.15.040 and 2008 c 299 s 29 are each amended to read as follows:
     (1) Moneys appropriated for this chapter to the habitat conservation account shall be distributed in the following way:
     (a) Not less than forty percent through June 30, 2011, at which time the amount shall become forty-five percent, for the acquisition and development of critical habitat;
     (b) Not less than thirty percent for the acquisition and development of natural areas;
     (c) Not less than twenty percent for the acquisition and development of urban wildlife habitat; and
     (d) Not less than ten percent through June 30, 2011, at which time the amount shall become five percent, shall be used by the board to fund restoration and enhancement projects on state lands. Only the department of natural resources and the department of fish and wildlife may apply for these funds to be used on existing habitat and natural area lands.
     (2)(a) In distributing these funds, the board retains discretion to meet the most pressing needs for critical habitat, natural areas, and urban wildlife habitat, and is not required to meet the percentages described in subsection (1) of this section in any one biennium.
     (b) If not enough project applications are submitted in a category within the habitat conservation account to meet the percentages described in subsection (1) of this section in any biennium, the board retains discretion to distribute any remaining funds to the other categories within the account.
     (3) Only state agencies may apply for acquisition and development funds for natural areas projects under subsection (1)(b) of this section.
     (4) State and local agencies may apply for acquisition and development funds for critical habitat and urban wildlife habitat projects under subsection (1)(a) and (c) of this section.
     (5)(a) Any lands that have been acquired with grants under this section by the department of fish and wildlife are subject to an amount in lieu of real property taxes and an additional amount for control of noxious weeds as determined by RCW 77.12.203.
     (b) Any lands that have been acquired with grants under this section by the department of natural resources are subject to payments in the amounts required under the provisions of RCW 79.70.130 and 79.71.130.
     (6) Except as otherwise conditioned by RCW ((79A.15.140 or)) 79A.15.150, the board in its evaluating process shall consider the following in determining distribution priority:
     (a) ((Whether the entity applying for funding is a Puget Sound partner, as defined in RCW 90.71.010;
     (b)
)) Effective one calendar year following the development and statewide availability of model evergreen community management plans and ordinances under RCW 35.105.050, whether the entity receiving assistance has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030; and
     (((c))) (b) Whether the project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (7) After January 1, 2010, any project designed to address the restoration of Puget Sound may be funded under this chapter only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.

Sec. 19   RCW 89.08.520 and 2008 c 299 s 27 are each amended to read as follows:
     (1) In administering grant programs to improve water quality and protect habitat, the commission shall:
     (a) Require grant recipients to incorporate the environmental benefits of the project into their grant applications;
     (b) In its grant prioritization and selection process, consider:
     (i) The statement of environmental benefits;
     (ii) Whether, except as ((conditioned by RCW 89.08.580, the applicant is a Puget Sound partner, as defined in RCW 90.71.010, and except as)) otherwise provided in RCW 89.08.590, and effective one calendar year following the development and statewide availability of model evergreen community management plans and ordinances under RCW 35.105.050, ((whether)) the applicant is an entity that has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030; and
     (iii) Whether the project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310; and
     (c) Not provide funding, after January 1, 2010, for projects designed to address the restoration of Puget Sound that are in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (2)(a) The commission shall also develop appropriate outcome-focused performance measures to be used both for management and performance assessment of the grant program.
     (b) The commission shall work with the districts to develop uniform performance measures across participating districts and, to the extent possible, the commission should coordinate its performance measure system with other natural resource-related agencies as defined in RCW 43.41.270. The commission shall consult with affected interest groups in implementing this section.

NEW SECTION.  Sec. 20   The following acts or parts of acts are each repealed:
     (1) RCW 43.155.110 (Puget Sound partners) and 2007 c 341 s 25;
     (2) RCW 70.105D.120 (Puget Sound partners) and 2007 c 341 s 31;
     (3) RCW 70.146.110 (Puget Sound partners) and 2007 c 341 s 27;
     (4) RCW 77.85.240 (Puget Sound partners) and 2007 c 341 s 37;
     (5) RCW 79.105.610 (Puget Sound partners) and 2007 c 341 s 33;
     (6) RCW 79A.15.140 (Puget Sound partners) and 2007 c 341 s 35;
     (7) RCW 89.08.580 (Puget Sound partners) and 2007 c 341 s 29; and
     (8) RCW 90.50A.080 (Puget Sound partners) and 2007 c 341 s 40.

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