AN ACT Relating to hazardous waste fees; amending RCW 70.105A.020, 70.105A.030, and 70.105A.040; and creating a new section.

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

Sec. 1. Section 2, chapter 65, Laws of 1983 1st ex. sess. and RCW 70.105A.020 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Dangerous waste" shall have the same definition as set forth in RCW 70.105.010(5) and shall specifically include those wastes designated as dangerous by rules adopted pursuant to chapter 70.105 RCW;

(2) "Department" means the department of ecology;

(3) "Extremely hazardous waste" shall have the same definition as set forth in RCW 70.105.010(6) and shall specifically include those wastes designated as extremely hazardous by rules adopted pursuant to chapter 70.105 RCW;

(4) "Hazardous waste" means and includes all dangerous and extremely hazardous wastes;

(5) "Person" means an individual, trust, firm, joint stock company, partnership, association, state, public or private or municipal corporation, commission, political subdivision of a state, interstate body, the federal government including any agency or officer thereof, and any Indian tribe or authorized tribal organization;

(6) "Identified site" means the same or geographically contiguous property, at which hazardous wastes are generated during a calendar year. An identified site may be divided by a public or private right of way, provided that access between the properties occurs at an intersection and crosses, as opposed to goes along, the right of way. Noncontiguous properties owned by the same person but connected by a right of way will be considered a single identified site if the person controls the right of way and can prevent public access;

(7) "Fee" means the annual hazardous waste control and elimination assessment fee imposed under RCW 70.105A.030 and the fee for treatment, storage, and disposal facilities imposed under RCW 70.105A.040;

(8) "Annual gross income" of a business means the value proceeding or accruing during a calendar year by reason of the transaction of the business or service engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses; and

(9) "Generate" means any act or process which produces hazardous waste or first causes a hazardous waste to become subject to regulation.

Sec. 2. Section 3, chapter 65, Laws of 1983 1st ex. sess. as amended by section 129, chapter 7, Laws of 1985 and RCW 70.105A.030 are each amended to read as follows:

(1) In addition to all other fees and taxes, there is hereby imposed and the department of revenue shall collect an annual fee from every person identified by the department of ecology for the privilege of utilizing or operating an identified site, other than as described in RCW 70.105A.040(1), in connection with any of the following business activities within this state:

(a) Exploring for, extracting, beneficiating, processing, or selling metallic or nonmetallic minerals;

(b) Exploring for, extracting, processing, or selling coal;

(d) Industrial or nonresidential contracting or heavy construction;

(e) Painting or sandblasting;

(f) Producing, processing, or selling rubber or plastics;

(g) Producing, processing, or selling glass, cement, or concrete;

(h) Cutting, milling, producing, preparing, or selling lumber or wood products, including wooden furniture or fixtures;

(i) Producing, preparing, or selling paper or allied products;

(j) Printing or publishing;

(k) Synthesizing, producing, processing, preparing, or selling chemicals or allied products;

(l) Exploring for, extracting, producing, processing, distributing, or selling petroleum or gas;

(m) Fabricating rubber or plastic products;

(n) Beneficiating, processing, or selling primary or secondary metals;

(o) Fabricating metal products, including metal furniture or fixtures;

(p) Fabricating, constructing, preparing, installing, or selling machinery or supplies;

(q) Fabricating, constructing, installing, preparing, or selling electrical or electronic equipment, machinery, or supplies;

(r) Fabricating, producing, preparing, or selling transportation equipment;

(s) Transporting by railroad, motor vehicle, or water vessel;

(t) Telephone communication;

(u) Drycleaning, photofinishing, or furniture refinishing;

(v) Transferring, treating, storing, or disposing of solid, dangerous, or extremely hazardous wastes; ((~~and~~))

(w) Repairing or servicing motor vehicles, railroad equipment, or water vessels; and

(x) Federal, state, and local agency operations, including but not limited to operations by the United States departments of defense, energy, transportation, and agriculture, and the coast guard.

When determining the particular business activity at an identified site, the department of ecology shall consider the major purpose of the activity or activities occurring at the identified site. Under this section, each identified site shall be required to pay only one fee annually, but no fee shall be assessed on any person at an identified site engaged solely in making retail sales as defined in RCW 82.04.050, except for those identified sites which generate hazardous waste.

(2) The fee imposed by this section shall be due and payable on June 30 of the year next succeeding the calendar year in which a person has engaged at any time in the business activities listed in subsection (1) of this section. The amount of the fee for an identified site shall be graduated by reference to the annual gross income of the business apportioned to the site as provided in subsection (3) of this section ((~~in accordance with the following schedule~~)), and shall not exceed the following limits:

(a) For annual gross income not in excess of ((~~one million~~)) fifty thousand dollars, a fee of not more than ((~~one~~)) eight hundred fifty dollars;

(b) For annual gross income in excess of ((~~one million~~)) fifty thousand dollars but not exceeding ((~~ten million~~)) one hundred thousand dollars, a fee of not more than ((~~seven hundred fifty~~)) one thousand five hundred dollars;

(c) For annual gross income in excess of ((~~ten million~~)) one hundred thousand dollars but not exceeding five hundred thousand dollars, a fee of not more than ((~~seven thousand~~)) five ((~~hundred~~)) thousand dollars;

(d) For an annual gross income in excess of five hundred thousand dollars but not exceeding one million dollars, a fee of not more than seven thousand dollars;

(e) For an annual gross income in excess of one million dollars but not exceeding five million dollars, a fee of not more than twenty thousand dollars;

(f) For an annual gross income in excess of five million dollars but not exceeding ten million dollars, a fee of not more than twenty-five thousand dollars;

(g) For an annual gross income in excess of ten million dollars, a fee of not more than thirty thousand dollars.

For any identified site that is operated by a federal, state, or local authority, the department of ecology shall use in lieu of annual gross income the annual operating budget for the identified site. In those cases where the federal, state, or local authority cannot or will not provide the annual operating budget for the identified site, the department of ecology shall assign an annual operating budget of one billion dollars to federal sites, one hundred million dollars to state sites, and ten million dollars to local sites. If an identified site is jointly operated by more than one authority and the department of ecology must assign an annual operating budget to the site, then the department shall assign the highest of the possible annual operating budgets that could be assigned.

The department of ecology shall further graduate the fees set forth in (a)((~~, (b), and~~)) through (c) of this subsection in accordance with criteria including but not limited to the quantity of hazardous waste generated and the health and environmental risks associated with the waste: PROVIDED, That the minimum fee assessed to any identified site shall be not less than seventy-five dollars. The department of ecology shall publish by rule a schedule of these graduated fees.

(3) For purposes of this section, annual gross income of the business shall mean gross proceeds of sales as defined in RCW 82.04.070 or gross income of the business as defined in RCW 82.04.080; and shall mean gross income, as defined in RCW 82.16.010 (12). Annual gross income of the business of a person rendering services taxable under RCW 82.04.290 and maintaining places of business within and without this state shall be apportioned in accordance with the provisions of RCW 82.04.460. The total annual gross income of the business taxable in this state under chapters 82.04 and 82.16 RCW shall be apportioned equally by the department of ecology among the identified sites utilized by such business in this state without regard to the amount or nature of the use: PROVIDED, That the person subject to the fee may request, and the department of ecology shall grant, apportionment among identified sites utilized in this state according to each site's share of annual gross income of the business apportioned to this state. The person subject to the fee shall bear the burden of supporting the allocation among sites with appropriate data as reasonably requested by the department of ecology.

(4) If an identified site does not generate hazardous wastes regulated by chapter 70.105 RCW, the person owning or controlling the site is exempt from the fee imposed by this section.

(5) Notwithstanding subsection (1) or (2) of this section or RCW 70.105A.040, no person who owns or operates a combined identified site and hazardous waste treatment, storage or disposal site shall be required to pay more than ((~~seven~~)) thirty-five thousand ((~~five hundred~~)) dollars annually to the hazardous waste control and elimination account.

(6) The department of ecology is authorized to adjust the fees imposed by this section ((~~and the limitation on total payment of subsection (5) of this section shall be adjusted~~)) by five percent whenever the consumer price index of the United States department of labor increases or decreases by a five percent increment from the index figure in existence on January 1, ((~~1983~~)) 1986, and such fee and limitation adjustments shall be published in rules by the department of ecology.

(7) Fees shall not be required under this section for solid wastes generated primarily from the combustion of coal or other fossil fuels, until at least six months after the date of submission of the study required by section 8002 of the federal resource conservation and recovery act.

(8) For purposes of this section "manufacturer," "wholesaler," "retailer," and "person engaging in service activities" shall have the meaning attributed to such terms in chapter 82.04 RCW. "Business activities" shall mean activities of any person subject to the fees imposed in subsection (1) of this section engaging in business as defined in chapters 82.04 and 82.16 RCW.

(9) In the administration of this section and in addition to other provisions in this chapter for the enforcement and collection of fees due and owing under this section, the department of revenue is authorized to apply the provisions of chapter 82.32 RCW, provided that the provisions of RCW 82.32.050 and 82.32.090 shall not be applied. If the annual gross income of the business of any person subject to the fee imposed under this section is finally determined to be greater or less than that reported to the department of revenue for the year in question, the department of revenue shall, if necessary, recompute the fee due and shall refund or assess the outstanding balance, as the case may be.

Sec. 3. Section 4, chapter 65, Laws of 1983 1st ex. sess. and RCW 70.105A.040 are each amended to read as follows:

(1) Every person who operates a facility for the purpose of treating, storing, or disposing of hazardous wastes, that is subject to a permit issued under authority of RCW 70.105.130 or 70.105A.060(4) (including a permit issued in satisfaction of the requirements of 42 U.S.C. section 6925 of the federal Resource Conservation and Recovery Act, as amended) shall((~~, on or before September 1, 1984, and on or before May 15 of each year thereafter,~~)) pay to the state ((a)) an annual fee relating to the operation of such treatment, storage, or disposal facilities. This fee shall be due and payable on June 30 of the year next succeeding the calendar year in which a person has operated a facility for the purpose of treating, storing, or disposing of hazardous wastes.

In relation to these annual fees, the department is empowered to adopt rules relating to: (a) Establishment of classes of facilities subject to fees, taking into account the size and type of facility and the risks of detrimental impacts associated therewith; and (b) the setting of a fee schedule pertaining to these classes with those classes presenting a greater risk having a higher dollar amount than those classes presenting a lesser risk: PROVIDED, That the annual fee for any class shall not be greater than ((~~seven thousand five hundred~~)) thirty thousand dollars.

The department shall prepare a list of all such hazardous waste facilities and the fee for each such facility or type of facility and shall provide a statement to each operator of a facility specifying the fee that is owed and the basis for the fee.

(2) ((Notwithstanding the provisions of RCW 70.105A.030 (1) through (5) or this section, no person who operates a combined identified site and hazardous waste treatment, storage, or disposal site shall be required to pay more than seven thousand five hundred dollars annually to the hazardous waste control and elimination account)) (a) For the purposes of this subsection, a new facility is any facility which has not been treating, storing, or disposing of hazardous wastes before June 30, 1986, and which must be issued a permit under RCW 70.105.130 or 70.105A.060(4) before it can treat, store, or dispose of hazardous wastes in compliance with chapter 70.105 RCW.

(b) Any person who applies to the department to issue a permit for a new facility shall pay to the department, on a schedule to be determined by the department, a fee of:

(i) One hundred fifty thousand dollars if the permit application is for a landfill, land treatment, waste pile, or surface impoundment facility;

(ii) Fifty thousand dollars if the permit application is for an incinerator facility; or

(iii) Ten thousand dollars if the permit application is for any other type of facility.

(c) For any new facility permit application that includes more than one type of hazardous waste management, the permit application fee shall be the highest of the applicable fees required by (b) of this subsection.

(d) Any person who has submitted a permit application for a new facility to the department between January 1, 1985, and the effective date of this 1986 act shall pay to the department, by January 1, 1987, one-half of the applicable fee required by (b) of this subsection.

(e) The department is authorized to not work on any new facility permit application until the fee required under (b) of this subsection has been paid.

(3) The department of ecology is ((~~required~~)) authorized to increase or decrease the fees of subsections (1) ((~~of this section~~)) and ((~~the limitation on total payment of subsection~~)) (2) of this section((,)) by five percent on each occasion when the consumer price index of the United States department of labor increases or decreases by a five percent increment from the index figure as it existed on January 1, ((~~1983~~)) 1986. Each such fee and limitation increase or decrease shall be set forth in rules adopted by the department of ecology.

NEW SECTION. Sec. 4. (1) A joint legislative committee on the regulation of hazardous wastes is created. The committee will consist of seven members. Two members of the house of representatives, one from each of the two largest caucuses, will be appointed by the speaker of the house of representatives. Two members of the senate, one from each of the two largest caucuses, will be appointed by the president of the senate. One member will be appointed by the director of the department of ecology, one member will be selected by the Washington environmental council, and one member will be selected by the association of Washington business. The most senior legislative member of the committee will serve as chair of the committee.

(2) The committee shall review the department's hazardous waste regulatory program, including permit approval processes, inspections and monitoring, and will evaluate the need for any changes in the level of these activities. The committee shall recommend cost-effective improvements in the efficiency of the program. The committee shall report its conclusions to the appropriate standing committees of the legislature by January 1, 1987.