AN ACT Relating to hazardous substances; amending RCW 67.70.040, 67.70.240, 82.16.020, 82.36.010, 82.36.020, 82.36.100, 82.36.410, 82.37.190, 82.42.020, 82.42.030, 82.42.090, 70.105A.010, and 70.105A.060; adding new sections to chapter 82.04 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 82.36 RCW; adding a new section to chapter 82.42 RCW; adding a new chapter to Title 70 RCW; adding a new chapter to Title 90 RCW; creating new sections; repealing RCW 70.105A.090; prescribing penalties; making appropriations; and declaring an emergency.

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

NEW SECTION. Sec. 1. (1) Washington state recognizes that its most basic obligations are to protect public health and safety and to preserve the most elemental supports of life and of the state's economy; its surface water, ground water, land, and air. Washington's surface waters, ground waters, and land are unique and delicately balanced resources. The state is the trustee of these natural resources on behalf of the public. The preservation of the quality of the state's water, land, and air is essential to the health and welfare of its citizens and to the maintenance and growth of its economy, including the tourism and recreation industry, the forest products industry, industries that produce food and drink, and fishing and shellfish harvesting.

(2) The legislature finds and declares that the improper, irresponsible, and illegal release of hazardous substances into the environment presents a real and substantial threat to the public health and welfare, the state's environment, and the enhancement of its economy; that the dangers posed by these releases of hazardous substances can be minimized only by their prompt identification and cleanup; and that existing funding sources are grossly inadequate to finance such cleanup. Therefore, the legislature concludes that it is in the best interests of all segments of the state's economy and of all its citizens to establish a mechanism to finance the cleanup of releases, and threatened releases, of hazardous substances.

(3) In order to achieve this objective, the legislature intends to provide a fund dedicated exclusively to financing an adequate and efficient program in the department of ecology for investigating, planning, rehabilitating, removing, remedying, and cleaning up releases of hazardous substances, wherever located and however released, or threatened to be released, by spill, industrial accident, disposal of hazardous wastes, air emission, leak from an underground storage tank, or other method of release into the environment. The legislature intends that this fund enable the state, whenever appropriate, to participate in and benefit fully from the federal comprehensive environmental response, compensation, and liability act of 1980 by providing matching state financing. The legislature also intends that the department of ecology be able to utilize the fund established by this act to fulfill the obligations of this act and other relevant state and federal laws by pursuing independent state actions when it appears such actions will provide a more efficient or effective method of achieving the goals and purposes of this act and other relevant state law.

(4) The legislature further finds and declares that in order to obtain adequate and timely financing, it is necessary and appropriate that this act provide for fund contributions from both (a) those businesses who, while engaged in commerce involving hazardous substances as commodities or as wastes, may have caused or contributed directly or indirectly to imposing hazardous chemical risks upon the state's citizens and their environment, and (b) those businesses and citizens who will benefit directly or indirectly from the cleanup of the state's surface waters, ground waters, and land by being able to continue to use and enjoy these threatened natural resources. Therefore, the legislature intends that financing for the remedy of these threats be provided by contributions jointly from dedicated business assessments and the general fund.

(5) Further, the legislature deems it necessary to provide broad powers to state government to respond to hazardous waste sites and to cleanup releases of hazardous substances, and to that end intends:

(a) To provide state government with the authority to obtain or perform remedial action in response to a release, or to the imminent threat of release, of a substance deemed a hazardous substance pursuant to this chapter, and to remove hazardous substances, where the release or the threat of release of a hazardous substance poses or could pose a threat of deleterious impact on the public health, public welfare, or the environment;

(b) To encourage private parties or public entities who caused or contributed to the release of any hazardous substance to remedy and remove said release consistent with procedures necessary to protect the public interest;

(c) To authorize state government to perform hazardous substance removal, and remedial action, and all planning, analysis, inspection, sampling, study, testing, administration, enforcement, and construction necessary or appropriate to obtain hazardous substance removal and remedial action and to provide funding for these activities; and

(d) To establish that public and private parties who owned, created, or contributed to a release of hazardous substances shall be liable for the state's costs of response and cleanup.

NEW SECTION. Sec. 2. Sections 3 through 11 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 3. The words and phrases defined in this section shall have the meanings indicated when used in this chapter unless the context clearly requires otherwise.

(1) "Department" means the department of ecology.

(2) "Director" means the director of the department of ecology or the director's designee.

(3) "Facility" means: (a) Any building, structure, installation, equipment, pipe or pipeline (including any pipe into a sewer or publicly owned treatment works), well, pit, pond, lagoon, impoundment, ditch, landfill, storage container, motor vehicle, rolling stock, or aircraft, or (b) any site or area where a hazardous substance has been deposited, stored, disposed of, or placed, or otherwise come to be located; but does not include any consumer product in household use.

(4) "Fund" means the hazardous substance response trust fund created by section 5 of this act.

(5) "Hazardous substances" means all "hazardous wastes" as defined above, and shall include all materials deemed "hazardous substances" according to section 101(14) of the federal comprehensive environmental response, compensation, and liability act of 1980 (42 U.S.C. Sec. 9601(14)) and shall include any substance or waste, other than those identified above, which is declared by the director of the department, by rule, to present a threat to public health, welfare, or the environment if subject to uncontrolled release into the environment.

(6) "Release" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, but excludes any release specifically excluded under 42 U.S.C. Sec. 9601(22) (A)through (D).

(7) "Remedy" or "remedial action" means those actions consistent with permanent remedy taken instead of or in addition to removal actions in the event of a release or threatened release of a hazardous substance into the environment, to prevent or minimize the release of hazardous substances so that they do not migrate to cause substantial danger to present or future public health or welfare or the environment. The term includes, but is not limited to, such actions at the location of the release as storage, confinement, perimeter protection using dikes, trenches, or ditches, clay cover, neutralization, cleanup of released hazardous substances or contaminated materials, recycling or reuse, diversion, destruction, segregation of reactive wastes, dredging or excavations, repair or replacement of leaking containers, collection of leachate and runoff, onsite treatment or incineration, provision of alternative water supplies, and any monitoring reasonably required to assure that such actions protect the public health and welfare and the environment.

(8) "Remove" or "removal" means the cleanup or removal of released hazardous substances from the environment, such actions as may be necessary taken in the event of the threat of release of hazardous substances into the environment, such actions as may be necessary to monitor, assess, and evaluate the release or threat of release of hazardous substances, the disposal of removed material, or the taking of such other actions as may be necessary to prevent, minimize, or mitigate damage to the public health or welfare or to the environment, which may otherwise result from a release or threat of release. The term includes, in addition, without being limited to, security fencing or other measures to limit access, provision of interim alternative water supplies, temporary evacuation and housing of threatened individuals not otherwise provided for.

(9) "Hazardous waste" means "dangerous waste" and "extremely hazardous waste," both as defined in RCW 70.105.010, and specifically includes those wastes designated as dangerous wastes or extremely hazardous wastes pursuant to rules adopted under chapter 70.105 RCW.

(10) "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.

(11) "Natural resources" means land, fish, wildlife, biota, air, water, ground water, drinking water supplies, and other such resources belonging to, managed by, or held in trust by the state of Washington.

(12) "Owner or operator" means (a) in the case of a vessel, any person owning, operating, or chartering by demise, such vessel, (b) in the case of an onshore facility or an offshore facility, any person owning or operating such facility, and (c) in the case of any abandoned facility, any person who owned, operated, or otherwise controlled activities at such facility immediately prior to such abandonment. Such term does not include a person, who, without participating in the management of a vessel or facility, holds indicia of ownership primarily to protect the person's security interest in the vessel or facility.

(13) "Disposal" means the discharge, deposit, injection, dumping, spilling, leaking, or placing of any solid waste or hazardous waste into or on any land or water such that such solid waste or hazardous waste or any constituent thereof may enter the environment or be emitted into the air or discharged into any waters, including ground waters.

NEW SECTION. Sec. 4. (1) The department is authorized, in relation or in addition to any other powers granted by law, to remove releases of hazardous substances and to conduct or implement remedial actions, in response to the release of a hazardous substance. In the exercise of the power granted in this chapter, the department may make contracts for professional services, for technical services, or for construction. The department is authorized to investigate, analyze, study, sample, test, review, remove, remedy, respond to, and to cleanup, releases of hazardous substances or threatened releases of hazardous substances.

(2) The director is authorized to declare in writing that a release of a hazardous substance, or a potential release of a hazardous substance, has been fully evaluated, and that any state or private removal or remedial action has been completed. The declaration of the director shall be made after reference to and compliance with published regulations adopted by the director which establish criteria to guide the evaluation of a release or threatened release of a hazardous substance, and to guide the determination of when a removal or remedial action should be deemed complete.

(3) The department is authorized to spend state funds, subject to legislative appropriation, in carrying out its authority granted under this chapter. The department is authorized to administer and enforce the laws granting it authority to act with reference to releases of hazardous substances. The department may apply to the federal government for funds to carry out the powers granted by this chapter and may receive and administer said funds. The department is authorized to participate in and is empowered to carry out all programs of the federal comprehensive environmental response, compensation, and liability act of 1980 contemplated for state administration or participation under that act. The power to participate in the programs under the federal act includes, but is not limited to, the power to agree to supply state matching funds, subject to legislative appropriation, for removal or remedial actions, to assure site maintenance, to assure the availability of a hazardous waste disposal facility, and to make such contracts or cooperative agreements with the federal government as may be necessary under the federal act.

NEW SECTION. Sec. 5. (1) Notwithstanding any other provision or rule of law and subject only to the defenses set forth in subsection (3) of this section:

(a) The owner or operator of a facility;

(b) Any person who at the time of disposal of any hazardous substance owned or operated any facility at which the hazardous substances were disposed of;

(c) Any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport for disposal or treatment, of hazardous substances owned or possessed by such person, by any other party or entity, at any facility owned or operated by another party or entity and containing such hazardous substances; and

(d) Any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities or sites selected by such person, from which there is a release, or a threatened release which causes the incurrence of response costs, of a hazardous substance;

shall be liable for all costs of removal, remedial action, or cleanup incurred by the state government, and for damages for injury to or destruction of any natural resources managed, owned, or held in trust by the state.

(2) The liability imposed under this section shall be strict liability imposed without regard to fault. The persons identified in subsection (1) of this section as potentially liable for costs of removal, remedial action, or cleanup or damage to natural resources shall be jointly and severally liable for such costs and damages. They shall have a right to contribution.

(3) There shall be no liability under subsection (1) of this section for a person otherwise liable who can establish by a preponderance of the evidence that the release of a hazardous substance and damages resulting therefrom were caused solely by:

(a) An act of God;

(b) An act of war;

(c) An act or omission of a third party (other than an employee or agent or any person with a contractual relationship with the person asserting this defense to liability) if all due care and caution is shown to have been exercised, considering the foreseeable acts or omissions of a third party, by the person asserting this defense; or

(d) The release of hazardous substances and damages resulted from a "federally permitted release" as that term is defined in the federal comprehensive environmental response, compensation, and liability act of 1980 at 42 U.S.C. Sec. 9601(10), or from the application of a pesticide product registered under the federal insecticide, fungicide and rodenticide act. Any recovery based on a release that is a federally permitted release or a registered pesticide product shall be pursuant to existing law.

(4) (a) Any person who is liable for a release of a hazardous substance and who fails, without sufficient cause, after a written demand from the director, to provide removal, remedial action in response to a release of a hazardous substance shall be liable to the state for punitive damages in an amount at least equal to the costs incurred by the state in providing removal or remedial action. Punitive damages shall not exceed three times the amount of the costs incurred by the state.

(b) The director is authorized to demand that a person who is liable for a release of a hazardous substance provide removal, remedial action, or cleanup of said release of a hazardous substance and to demand that said person take action by a given date. The director's authority to demand action under this subsection is limited to a release of a hazardous substance that the director finds presents an imminent and substantial endangerment to public health, welfare, or the environment. The director's finding must be made in writing, delivered to the person who may be liable, and accompanied by the director's demand for action. The director's finding and demand made pursuant to the authority granted in this section shall not be subject to appeal to or review by the pollution control hearings board established under chapter 43.21B RCW.

(c) The department is required to employ the procedure established in (a) and (b) of this subsection in order to recover punitive damages after a release of a hazardous substance. The department need not employ the procedure established in (a) and (b) of this subsection in order to recover damages or costs of response other than punitive damages.

NEW SECTION. Sec. 6. The department or its duly authorized employees, agents, or inspectors have the right to enter upon any property, public or private, for purposes of investigating the release or threatened release of a hazardous substance. The department's authorized representatives have the right under this section to sample, inspect, examine, study, or install test wells or other monitoring facilities on any property, public or private. If the director determines it to be necessary upon finding a release of a hazardous substance, the department, its employees, inspectors, authorized representatives, or contractors have the right to enter upon property, public or private, to conduct a removal or remedial action.

NEW SECTION. Sec. 7. The owner of property, whether public or private, upon which a release of a hazardous substance has been found by the department to have occurred and where a remedial action or removal has been conducted by the department, shall place a notice in the records of real property kept by the auditor of the county in which the property is located. The notice shall: Identify the property, identify the owner of the property and the person causing the notice to appear, state that a release of a hazardous substance occurred on the property, state the date the release occurred, identify the hazardous substance or substances released, briefly identify the remedial action taken, and direct further inquiries to the department. Any person injured by the failure of a property owner to comply with this section shall have a right to recover damages for said injury by filing an action in superior court.

NEW SECTION. Sec. 8. The attorney general is authorized to bring such actions as are necessary to effect the purposes of this chapter. Such actions include but are not limited to, actions: To recover state moneys spent on removal, remedial action, and cleanup; to recover damages and punitive damages; to compel access to property; and to seek such other monetary or injunctive relief as is necessary.

NEW SECTION. Sec. 9. The director is authorized to adopt rules necessary to the administration of this chapter pursuant to the administrative procedure act, chapter 34.04 RCW.

NEW SECTION. Sec. 10. (1) There is hereby created in the state treasury the hazardous substance response trust fund, which shall be administered by the department.

(2) In addition to any general fund revenues and other moneys appropriated by the legislature, the following amounts shall be deposited in the fund:

(a) All assessments collected pursuant to (i) section 12 of this act, (ii) section 13 of this act, (iii) RCW 82.16.020, (iv) section 16 of this act, (v) RCW 82.36.020 attributable to the rate calculated as provided by section 24 of this act, and (vi) RCW 82.42.020 attributable to the rate calculated as provided by section 29 of this act;

(b) Any earnings from the investment of the balance of the fund;

(c) Any proceeds from the sale of bonds that may be authorized to finance any of the activities in subsection (3) of this section and any earnings on investment of the unobligated principal of such bonds;

(d) Moneys received from the federal government pursuant to the comprehensive environmental response, compensation, and liability act of 1980, P.L. 96-510 (42 U.S.C. Sec. 9601 et seq.);

(e) Moneys received from the federal government pursuant to the federal solid waste disposal act, P.L. 89-272, as amended (42 U.S.C. Sec. 6901 et seq.), or other federal laws to finance any of the activities in subsection (3) of this section;

(f) Any moneys recovered or otherwise received from responsible parties for remedial action, removal, and cleanup at a specific site and other damages, but excluding funds from performance bonds and other forms of financial responsibility held in escrow pending satisfactory performance of a privately financed response action;

(g) Any funds borrowed pursuant to subsection (5) of this section; and

(h) Any fines, penalties, or damages recovered pursuant to this chapter or to any law establishing liability or other relief for damages or costs incurred by the state as a result of the release, or threatened release, of a hazardous substance.

(3) The department of ecology is authorized to exercise the powers enumerated in this subsection, in relation or in addition to any other powers granted by law.

(a) Subject to legislative appropriations, amounts in the fund shall be available to the department to:

(i) Remove and remedy releases, or threats of releases, of hazardous substances or otherwise cleanup such releases;

(ii) Undertake all training, planning, inspecting, sampling, testing, investigating, surveying, analyzing, engineering, constructing, operating, and maintaining necessary or appropriate to prepare for, obtain, and perform removal actions, remedial actions, cleanup actions, and enforcement actions involving releases, or threatened releases, of hazardous substances, and recover the costs thereof;

(iii) Administer and enforce the authorities granted under this chapter and other state and federal laws granting the department authority to enforce or respond to releases, or threatened releases, of hazardous substances;

(iv) Participate in and carry out all programs of the federal comprehensive environmental response, compensation, and liability act of 1980 contemplated for state administration or participation under that act;

(v) Participate in and carry out programs of the federal resource conservation and recovery act, as amended, and other federal laws contemplated for implementation by a state under such act and laws to the extent such efforts are appropriate to achieving the purposes of this chapter with respect to releases, or threatened releases, of hazardous substances;

(vi) Prepare or otherwise direct the completion of the reports referred to in section 10 of this act and such other reports as the legislature may require to fulfill the intent and purposes of this chapter;

(vii) Provide assistance to the department of revenue and the state treasurer as contemplated by this section, sections 11, 12, 16, and 20 of this act and RCW 82.16.020; and

(viii) Repay any bonded indebtedness that the state may authorize for financing removal, remedy, and cleanup of releases, or threatened releases, of hazardous substances.

(b) In the exercise of the powers granted in this subsection:

(i) The department may apply to the federal government for funds to carry out the powers granted by this subsection and may receive and administer said funds;

(ii) The department may make contracts for professional services, technical services, or for construction; notwithstanding any other provision of law, the department may expedite response to releases, or threatened releases, of hazardous substances by prequalifying contractors, provided such prequalification is pursuant to a uniform system of rating bidders which is established by regulation; and the department may enter into oral contracts for removal actions for ten thousand dollars or less, provided such oral contract is, in the judgment of the department, necessary to protect public health or safety from an immediate threat and is consistent with regulations to be adopted by the department within twelve months of the effective date of this act;

(iii) The department shall not make amounts in the fund available for remedy of facilities owned or operated by a governmental entity at the time of disposal, to the extent that such entity would otherwise be liable for such costs of remedy; and

(iv) The department shall not expend fund revenues in excess of the total amount of money in the fund at any one time, except as provided in subsection (5) of this section.

(c) Amounts spent from the fund shall not duplicate federal response costs to releases of hazardous substances to the extent that such costs are subject to section 114(c) of the federal comprehensive environmental response, compensation, and liability act of 1980 P.L. 96-510 (42 U.S.C. Sec. 9614 (C)).

(4) Amounts remaining in the fund at the end of any fiscal year or biennium shall remain available for expenditure in successive fiscal years or biennium.

(5) If the balance in the fund is insufficient to cover obligations authorized under subsection (3) of this section at any time during any fiscal year, the department, on behalf of the fund, may borrow from the unobligated proceeds of waste disposal facility bonds authorized by chapter 43.83A RCW and deposited in the state and local improvements revolving account pursuant to RCW 43.83A.030. If funds sufficient to cover the shortfall are not available in that account, the department, on behalf of the fund, may borrow from the unobligated proceeds of water pollution control facility bonds authorized and administered by chapter 90.50 RCW. If funds sufficient to cover the shortfall are not available from these sources, the department, on behalf of the fund, may borrow from the state general fund. Any interfund loan under this subsection shall be made by agreement with the state treasurer, with the consent of the state finance committee, pursuant to RCW 43.84.100. Repayment of any interfund loan agreed to shall be repaid, with appropriate interest, from the assessments listed in subsection (2)(a) of this section.

(6) A separate account in the fund shall be established for site monitoring, operation, and maintenance.

(a) All of the following amounts shall be deposited in the account: (i) Funds recovered or otherwise received from responsible parties for site monitoring, operation, and maintenance; (ii) funds received from the federal government pursuant to the comprehensive environmental response, compensation, and liability act of 1980, P.L. 96-510 (42 U.S.C. Sec. 9601 et seq.) or other federal laws for site monitoring, operation, and maintenance; (iii) funds received from cities, counties, or any other state or local government entity for site monitoring, operation, and maintenance; and (iv) any moneys transferred from the fund for site monitoring, operation, and maintenance.

(b) Moneys deposited in this account shall be available to the department for site monitoring, operation, and maintenance at sites where the fund has paid for some or all response costs. Any earnings from investment of the balance in this account shall be deposited in the account established by this subsection.

(c) Before July 1st of each year, the department shall determine the projected cost during the fiscal year beginning July 1st of monitoring, operation, and maintenance at all sites where response has been completed or is expected to be completed during the fiscal year. If the balance in the account established by this subsection is less than the projected cost, the difference shall be transferred into the account from the fund.

(d) The department, in consultation with the state investment board, may establish one or more annuities to pay for monitoring, operation, and maintenance costs from the uncommitted balance of the fund remaining in any fiscal year.

(e) The department may transfer funds from the account established by this subsection to the fund only to the extent that the balance in the account and any estimated future earnings on the balance are projected to be more than sufficient to pay for all future costs of monitoring, operation, and maintenance at all sites where the fund has or is projected at the time to pay for some or all response costs.

(7) The department may promulgate rules to implement this section and shall consult with the state treasurer with respect to all rules governing fund investment and accounting. The department shall develop procedures and adopt rules governing the expenditure of and accounting for moneys expended from the fund. The requirement to develop procedures and adopt rules shall in no way delay implementation of this chapter prior to the effective date of such procedures and rules.

(8) Any and all expenditures from the fund shall be made in accordance with the appropriation of moneys by the legislature to the fund.

NEW SECTION. Sec. 11. (1) The department, in consultation with the state treasurer, the department of revenue, and the department of licensing, shall prepare and submit to the governor and to the legislature by no later than January 31, 1987, a report and recommendations for changes in the methods of financing responses to releases of hazardous substances over at least the next ten years. The report and recommendations shall include:

(a) A projection of the annual and ten-year total cost of the fund uses specified in section 10(3) of this act. The projection shall include those portions of the anticipated expenditures projected to be paid by responsible parties, the federal government, and the fund;

(b) An evaluation of the adequacy of existing sources of fund receipts to provide, annually and over the next ten years, revenues sufficient to meet the costs projected in (a) of this subsection;

(c) An evaluation of any financing options which may better provide the revenues projected to be needed, and legislative recommendations concerning which, if any, of these options should be enacted. This evaluation shall consider the need for and desirability of at least the following financing options:

(i) Modifications to the assessments specified in section 10(2)(a) of this act;

(ii) Authorization of bonds to be repaid in equal shares from the general fund and the assessments specified in section 10(2)(a) of this act or other business assessments;

(iii) Appropriations from the general fund;

(iv) Continuing appropriations after 1987 from that portion of any lottery receipts that may otherwise be dedicated to the general fund; and

(v) Any other options that may be appropriate, including but not limited to, any other recommended assessments on business not established by this chapter.

In evaluating such financing options, the department shall consider their revenue adequacy, administrative feasibility, economic and fiscal implications, equity implications, incentive effects, and potential impact on the state's environmental protection programs. The department shall also evaluate the extent to which the recommended financing options provide for an equal distribution of the total funding burden of the response program between the general fund and assessments on business dedicated to the fund;

(d) A recommendation to amend the list of hazardous substances defined by section 12(7)(b) of this act to reflect any additions and deletions of such substances since the effective date of this act; and

(e) A recommendation to amend the list of hazardous substances found at a facility subject to a surcharge under section 12(2) of this act to reflect any additions or deletions in the list of hazardous substances and in the findings of hazardous substances at facilities.

(2) On or before October 1st of each fiscal year, the department shall provide a report to the legislature which contains the following information:

(a) The actual funds expended during the preceding fiscal year for each site listed as a state priority;

(b) The amount of federal funds obtained or committed to the state in the preceding fiscal year for implementing the purpose of this chapter; and

(c) The amount of money actually received by the fund in the preceding fiscal year from each of the sources of revenue identified in section 10(2) of this act.

NEW SECTION. Sec. 12. A new section is added to chapter 82.04 RCW to read as follows:

(1) Except as provided in subsections (3), (4), and (5) of this section, there is levied and shall be collected by the department of revenue from every person subject to a tax under RCW 82.04.230, 82.04.240, 82.04.250, and 82.04.270 engaging in business within the state who produces, uses, or imports hazardous substances within the state an annual assessment. The amount of the annual assessment shall be equal to the assessable gross receipts of the business multiplied by the rate of:

(a) Five one-hundredths of one percent for the period from April 1, 1986, through June 30, 1987. However, the total annual assessment under this subsection for any person shall not exceed two hundred thousand dollars; and

(b) Five one-hundredths of one percent multiplied by the rate adjustment factor determined by the department of revenue under section 32 of this act for the period from July 1, 1987, through June 30, 1988, and annually thereafter. However, the total annual assessment under this subsection for any person shall not exceed three hundred thousand dollars.

(2) There is in addition levied and shall be collected by the department of revenue from every person subject to an assessment under subsection (1) of this section who produces, uses, or imports within the state hazardous substances found at a facility, as defined by section 3 of this act, determined by the department to require remedy, a surcharge equal to twenty-five percent of the assessment imposed by subsection (1) of this section.

(3) The assessments imposed by this section do not apply to any person selling at retail any agricultural or horticultural produce or crop, including the raising for sale of any animal, bird, or insect, or the milk, eggs, wool, fur, meat, honey, or other substance obtained therefrom.

(4) The assessment imposed by subsection (1) of this section does not apply to any person who produces, uses, or imports within the state a total quantity of less than five hundred pounds of hazardous substances quarterly or two tons of hazardous substances annually. The surcharge imposed by subsection (2) of this section does not apply to any person who produces, uses, or imports within the state a total quantity of less than five hundred pounds of hazardous substances quarterly or two tons of hazardous substances annually found at a facility determined by the department to require remedy. For purposes of determining eligibility for this exemption:

(a) Each quantity of a hazardous substance produced, used, or imported by a person shall be counted only once by that person; and

(b) The cumulative total of all quantities of all hazardous substances shall be counted if a person produces, uses, or imports more than one hazardous substance in any quantity.

(5) The assessments imposed by this section do not apply to any person who receives gross receipts of less than seven hundred fifty thousand dollars in a year.

(6) The department of revenue shall deposit all moneys collected under this section into the hazardous substance response trust fund established by section 10 of this act.

(7) For the purposes of this section:

(a) "Assessable gross receipts" means the sum of the gross proceeds of sales, gross income of the business, and value of products taxable under RCW 82.04.230, 82.04.240, 82.04.250, and 82.04.270;

(b) "Hazardous substance" means any hazardous substance as defined by section 3 of this act, as of July 1, 1985, excluding lead, arsenic, barium, cadmium, chromium, copper, mercury, nickel, silver, sodium, and zinc imported into Washington state in a form other than as powder, ingots, or ingot blooms, billets, or slabs;

(c) "Import" means to transport or cause to be transported by any means of conveyance into the state hazardous substances for sale, use, or disposal (i.e., discarding or abandoning of hazardous substances or the treatment, decontamination, or recycling of such substances once they have been discarded or abandoned);

(d) "Produce" means to create hazardous substances from new or raw materials, or from scrap, waste, recycled, or recovered materials;

(e) "Ton" means two thousand pounds. In the case of any substance which is a gas, the term "ton" means the amount of such gas in cubic feet which is the equivalent of two thousand pounds on a molecular weight basis. In the case of a substance which is a waste, the measurement will be based on the total volume of waste;

(f) "Use" means to consume all or a portion of a hazardous substance (including consumption by its producer), to alter the composition of a hazardous substance, to cause the occurrence of a chemical reaction that could not have taken place without a hazardous substance (i.e., the use of a hazardous substance as a catalyst), or to dispose of a hazardous substance (i.e., to discard or abandon a hazardous substance or to treat, decontaminate, or recycle such substances once they have been discarded or abandoned).

(8) The department of ecology shall provide technical assistance to the department of revenue in identifying persons subject to the assessments imposed by this section.

(9) This section shall take effect on April 1, 1986.

NEW SECTION. Sec. 13. A new section is added to chapter 82.04 RCW to read as follows:

(1) There is levied and shall be collected by the department of revenue from every person subject to a tax under RCW 82.04.260 engaging in the business of disposing of low-level radioactive waste, as defined by RCW 43.145.010, an annual assessment. The amount of the annual assessment shall be equal to the annual gross income of the business, excluding any fees imposed under chapter 43.21F RCW, multiplied by the rate of:

(a) Fifteen percent for the period from January 1, 1986, through June 30, 1987; and

(b) Fifteen percent multiplied by the rate adjustment factor determined by the department of revenue under section 32 of this act for the period from July 1, 1987, through June 30, 1988, and annually thereafter.

(2) The department of revenue shall deposit all moneys collected under this section into the hazardous substance response trust fund established by section 10 of this act.

(3) This section shall take effect on January 1, 1986.

Sec. 14. Section 82.16.020, chapter 15, Laws of 1961 as last amended by section 13, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.16.020 are each amended to read as follows:

(1) There is levied and there shall be collected from every person a tax for the act or privilege of engaging within this state in any one or more of the businesses herein mentioned. The tax shall be equal to the gross income of the business, multiplied by the rate set out after the business, as follows:

(a) Railroad, express, railroad car, water distribution, light and power, and telegraph businesses: Three and six-tenths percent;

(b) Gas distribution business: Three and six-tenths percent;

(d) Vessels under sixty-five feet in length, except tugboats, operating upon the waters within the state: Six-tenths of one percent;

(e) Motor transportation and tugboat businesses, and all public service businesses other than ones mentioned above: One and eight-tenths of one percent.

(2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.

(3) There is levied and shall be collected by the department of revenue from every person engaging within this state in the business of water distribution an additional annual assessment. The amount of the assessment shall be equal to the taxable income of the business, as determined for the purpose of the tax payable under subsection (1) of this section, multiplied by the rate of:

(a) One-half of one percent for the period from October 1, 1985, through June 30, 1987; and

(b) One-half of one percent multiplied by the rate adjustment factor determined by the department of revenue under section 32 of this 1985 act for the period from July 1, 1987, through June 30, 1988, and annually thereafter.

(4) There is levied and shall be collected from the customers of those persons engaged in the business of water distribution in this state the following assessments:

(a) For the period from April 1, 1986, through June 30, 1987:

(i) From every such customer who produces, uses, or imports hazardous substances and obtains more than eighty-one thousand two hundred fifty gallons of water per quarter but less than eight hundred twelve thousand five hundred gallons of water per quarter from such water distribution business an assessment of two hundred fifty dollars per quarter;

(ii) From every such customer who produces, uses, or imports hazardous substances and obtains eight hundred twelve thousand five hundred or more gallons of water per quarter but less than sixty-one million one hundred thousand gallons of water per quarter from such water distribution business an assessment of one thousand two hundred fifty dollars per quarter;

(iii) From every such customer who produces, uses, or imports hazardous substances and obtains sixty-one million one hundred thousand or more gallons of water per year but less than one hundred sixty-two million nine hundred twenty-five thousand gallons of water per quarter from such water distribution business an assessment of six thousand two hundred fifty dollars per quarter; and

(iv) From every such customer who produces, uses, or imports hazardous substances and obtains one hundred sixty-two million nine hundred twenty-five thousand gallons of water per quarter or more from such water distribution business an assessment of twelve thousand five hundred dollars per quarter.

(b) The assessments established in (a) of this subsection shall be adjusted as follows:

(i) The assessments established by subsection (4)(a) of this section shall be adjusted by the rate adjustment factor determined by the department of revenue under section 32 of this 1985 act, and such adjusted assessments shall be effective July 1, 1987.

(ii) The assessments established by subsection (4)(b)(i) of this section shall be increased or decreased by the department of revenue biennially beginning July 1, 1989, by the percentage change in the national consumer price index for the previous two-year period ending March 31st.

(c) The assessments imposed by subsection (4) of this section do not apply to any person who produces, uses, or imports within the state a total quantity of less than five hundred pounds of hazardous substances quarterly or two tons of hazardous substances annually.

(d) No person subject to the assessments levied by this subsection shall be required to pay more than one-tenth of one percent of the person's annual gross revenues as such assessment per annum.

(5) The assessments imposed by subsection (4) of this section shall be paid by each customer of a water distribution business who produces, uses, or imports hazardous substances to the water distribution business, and each water distribution business shall collect, on behalf of the state, from each of its customers required to pay the assessment the full amount of the assessment payable in respect to the amount of water purchased by that customer from the water distribution business. The department of revenue may promulgate such rules concerning the identification of customers of water distribution businesses who produce, use, or import hazardous substances and the frequency and form of payment of such assessments as may be required. The department of ecology shall provide technical assistance to the department of revenue in identifying persons subject to the assessments imposed by this section.

A water distribution business receiving such assessments shall be required to pay the assessments to the department of revenue within thirty days of receipt. Every assessment collected by a water distribution business shall be deemed to be held in trust until paid to the department, and no person engaged in the business of water distribution shall appropriate or convert any assessment collected to the person's own use or to any use other than the payment of the assessment, except that a water distribution business receiving the assessment shall be entitled to retain one and one-half percent of the assessment as compensation for the costs of collection.

If any person engaged in a water distribution business fails to collect the assessment imposed by subsection (4) of this section or, having collected the assessment, fails to pay it to the department of revenue in the manner prescribed in this section, whether such failure is the result of the person's own acts or the result of acts or conditions beyond the person's control, the person shall, nevertheless, be liable to the state for the amount of the assessment.

If a customer has failed to pay to the water distribution business the assessment imposed by this section and the water distribution business has not paid the amount of the assessment to the department of revenue, the department may, in its discretion, proceed directly against the customer for payment of the assessment, in which case a penalty of ten percent may be added to the amount of the assessment for such failure, regardless of when the assessment is collected by the department of revenue.

(6) For the purpose of the assessments levied by subsection (4) of this section, the meanings attributed to the words and phrases "hazardous substance," "import," "produce," and "use" by section 12 of this 1985 act shall apply equally to subsection (4) of this section.

(7) The department of revenue shall pay quarterly all moneys collected or received by the department pursuant to subsections (3) and (4) of this section into the hazardous substance response trust fund established by section 10 of this 1985 act.

NEW SECTION. Sec. 15. Sections 16 through 21 of this act shall constitute a new chapter in Title 90 RCW.

NEW SECTION. Sec. 16. (1) There is levied and shall be collected by the department of revenue an assessment from every person in possession of a claim to withdraw or divert water from the surface or ground waters of the state for industrial or commercial use. Such claims shall include all claims based on any appropriation authorized by enactments of the legislature prior to enactment of chapter 117, Laws of 1917; or on custom; or on any general adjudication; or on ownership of land abutting a stream, lake, or watercourse; or on an appropriation authorized under RCW 90.03.330, 90.44.080, or 90.44.090; or on a claim filed under chapter 90.14 RCW; or on an appropriation of water under chapter 90.16 RCW. The amount of the assessment shall be determined according to subsections (2) and (3) of this section.

(2) There shall be collected from every person in possession of a claim to withdraw or divert water for industrial or commercial use who in addition is engaged in business within this state and who produces, uses, or imports a hazardous substance, the following assessments:

(a) For the period from April 1, 1986, through June 30, 1987:

(i) From those persons claiming one or more acre-feet of water per year but less than one hundred acre-feet per year, two hundred fifty dollars per quarter;

(ii) From those persons claiming one hundred or more acre-feet of water per year but less than seven hundred fifty acre-feet per year, one thousand two hundred fifty dollars per quarter;

(iii) From those persons claiming seven hundred fifty or more acre-feet of water per year but less than two thousand acre-feet per year, six thousand two hundred fifty dollars per quarter; and

(iv) From those persons claiming two thousand or more acre-feet of water per year, twelve thousand five hundred dollars per quarter.

(b) The assessments established in (a) of this subsection shall be adjusted as follows:

(i) The assessments established by (a) of this subsection shall be adjusted by the rate adjustment factor determined by the department of revenue under section 32 of this act, and such adjusted assessments shall be effective July 1, 1987.

(ii) The assessments established by (b)(i) of this subsection shall be increased or decreased by the department of revenue biennially beginning July 1, 1989, by the percentage change in the national consumer price index for the previous two-year period ending March 31st.

(c) The assessments imposed by subsection (2) of this section do not apply to any person who produces, uses, or imports within the state a total of quantity of less than five hundred pounds of hazardous substances quarterly or two tons of hazardous substances annually.

(d) No person subject to the assessments levied by this section shall be required to pay more than one-tenth of one percent of the person's annual gross revenues as such assessment per annum.

(3) There is levied and shall be collected by the department of revenue from every person in possession of a claim to withdraw or divert water for industrial or commercial use who is not required to pay an assessment under subsection (2) of this section an assessment of seven hundred fifty dollars per year, except that no person shall be required to pay an assessment under this subsection who receives annual gross revenues less than seven hundred fifty thousand dollars from business within this state.

(4) The department of revenue shall pay quarterly all moneys collected or received by the department pursuant to subsections (2) and (3) of this section into the hazardous substance response trust fund established by section 10 of this act.

NEW SECTION. Sec. 17. For the purposes of this chapter:

(1) The meaning attributed in chapters 82.01 through 82.98 RCW to the words and phrases "department of revenue," "water distribution business," "person," "business," "engaging in business," "in this state," and "within this state," apply equally to this chapter.

(2) The meanings attributed in section 12 of this act to "hazardous substance," "import," "produce," and "use" apply equally to this chapter.

(3) "Commercial use" means the utilization of water by wholesale and retail businesses not involved in manufacturing, minerals development, or electric power generation.

(4) "Cropland" means land used for agriculture but not in permanent pasture, native hayland, rangeland, or woodland.

(5) "Industrial use" means the utilization of water by businesses involved in manufacturing, minerals development, or electric power generation.

(6) "Irrigation" means the application of water to cropland or pasture, the utilization of water for routine watering of stock, and the utilization of water for soil salinity control, plant germination, frost protection, and for cooling crops.

(7) "Pasture" means land used to produce forage plants for the feeding or grazing of domestic livestock.

(8) "In possession of a claim" means ownership or rental of property, including ownership or rental of a claim or a right to withdraw or divert water from the surface or ground waters of the state, sufficient to vest control over water use pursuant to such claim in the owner or lessee of the property.

(9) For the purposes of this chapter, the following shall be legally established units of measure:

(a) One acre-foot of water is equal to three hundred twenty-five thousand eight hundred fifty gallons; and

(b) One cubic foot of water per second is equal to one hundred forty-six million two hundred sixty thousand gallons per year.

NEW SECTION. Sec. 18. Persons engaged within this state in the business of water distribution shall be exempt from the assessment levied pursuant to this chapter to the extent that such persons are required to pay a tax on such business assessed under RCW 82.16.020(4).

NEW SECTION. Sec. 19. For the purposes of this chapter, a claim to withdraw or divert water for irrigation use shall not be considered a claim for commercial or industrial use.

NEW SECTION. Sec. 20. The department of ecology shall provide technical assistance to the department of revenue in identifying persons subject to the assessments imposed by this chapter. The department of revenue, after consultation with the department of ecology, shall determine the eligibility of individual claimants for exemption under sections 17 and 18 of this act.

NEW SECTION. Sec. 21. All of the provisions of chapter 82.32 RCW, such as they apply, are incorporated herein. The department of revenue by rule adopted pursuant to chapter 34.04 RCW may, if required, establish such administrative provisions as may be necessary for the purpose of administering this chapter, except that the department of revenue shall not in any way alter or revise any rules established under any other chapter of Title 90 RCW.

Sec. 22. Section 82.36.010, chapter 15, Laws of 1961 as last amended by section 25, chapter 49, Laws of 1983 1st ex. sess. and RCW 82.36.010 are each amended to read as follows:

For the purposes of this chapter:

(1) "Motor vehicle" means every vehicle that is in itself a self-propelled unit, equipped with solid rubber, hollow-cushion rubber, or pneumatic rubber tires and capable of being moved or operated upon a public highway, except motor vehicles used as motive power for or in conjunction with farm implements and machines or implements of husbandry;

(2) "Motor vehicle fuel" means gasoline or any other inflammable gas or liquid, by whatsoever name such gasoline, gas, or liquid may be known or sold, the chief use of which is as fuel for the propulsion of motor vehicles or motorboats;

(3) "Distributor" means every person who refines, manufactures, produces, or compounds motor vehicle fuel and sells, distributes, or in any manner uses it in this state; also every person engaged in business as a bona fide wholesale merchant dealing in motor vehicle fuel who either acquires it within the state from any person refining it within or importing it into the state, on which the tax has not been paid, or imports it into this state and sells, distributes, or in any manner uses it in this state;

(4) "Service station" means a place operated for the purpose of delivering motor vehicle fuel into the fuel tanks of motor vehicles;

(5) "Department" means the department of licensing;

(6) "Director" means the director of licensing;

(7) "Dealer" means any person engaged in the retail sale of liquid motor vehicle fuels;

(8) "Person" means every natural person, firm, partnership, association, or private or public corporation;

(9) "Highway" means every way or place open to the use of the public, as a matter of right, for purposes of vehicular travel;

(10) "Broker" means every person, other than a distributor, engaged in business as a broker, jobber, or wholesale merchant dealing in motor vehicle fuel or other petroleum products used or usable in propelling motor vehicles, or in other petroleum products which may be used in blending, compounding, or manufacturing of motor vehicle fuel;

(11) "Producer" means every person, other than a distributor, engaged in the business of producing motor vehicle fuel or other petroleum products used in, or which may be used in, the blending, compounding, or manufacturing of motor vehicle fuel;

(12) "Distribution" means all withdrawals of motor vehicle fuel for delivery to others, to retail service stations, or to unlicensed bulk storage plants;

(13) "Bulk storage plant" means, pursuant to the licensing provisions of RCW 82.36.070, any plant, under the control of the distributor, used for the storage of motor vehicle fuel to which no retail outlets are directly connected by pipe lines;

(14) "Marine fuel dealer" means any person engaged in the retail sale of liquid motor vehicle fuel whose place of business and or sale outlet is located upon a navigable waterway;

(15) "Aggregate motor vehicle fuel tax revenues" means the amount of excise taxes to be paid by distributors, retailers, and users pursuant to chapters 82.36, 82.37, and 82.38 RCW for any designated fiscal period, whether or not such amounts are actually received by the department of licensing. The phrase does not include fines or penalties assessed for violations;

(16) "Fiscal year" means a twelve-month period ending June 30th;

(17) "State personal income" means the dollar amount published as total personal income of persons in the state for the calendar year by the United States department of commerce or its successor agency;

(18) "State personal income ratio" for any calendar year means that ratio expressed in percentage terms that is the sum of one hundred percent, plus seventy percent of the percentage increase or decrease in state personal income for the calendar year under consideration as compared to state personal income for the immediately preceding calendar year;

(19) "Motor vehicle fund revenue" means all state taxes, fees, and penalties deposited in the motor vehicle fund and all other state revenue required by statute to be deposited in the motor vehicle fund, but does not include (a) moneys derived from nonfuel tax sources which are deposited directly in the several accounts, (b) interest deposited directly in the several accounts within the motor vehicle fund, (c) federal funds, (d) proceeds from the sale of bonds, ((or)) (e) reimbursements to the motor vehicle fund for services performed by the department of transportation for others((.)), or (f) moneys derived from the special assessment rate established by section 24 of this 1985 act;

(20) "Alcohol" means alcohol that is produced from renewable resources and is produced in this state or in a state that extends a tax exemption or credit for the sale of alcohol produced in this state for use in motor vehicle fuel that is at least equal to a tax exemption or credit for the sale of alcohol produced in the other state for use in motor vehicle fuel;

(21) "Motor vehicle fuel excise tax" means the assessment imposed by RCW 82.36.020 at the rate of the sum of the motor fuel tax rate calculated under RCW 82.36.025 and the petroleum fuel special assessment rate calculated under section 24 of this 1985 act.

Sec. 23. Section 1, chapter 28, Laws of 1974 ex. sess. as last amended by section 26, chapter 49, Laws of 1983 1st ex. sess. and RCW 82.36.020 are each amended to read as follows:

(1) Every distributor shall pay, in addition to any other taxes provided by law, an excise tax to the director at a rate computed in the manner provided in RCW 82.36.025 and section 24 of this 1985 act for each gallon of motor vehicle fuel sold, distributed, or used by him in the state as well as on each gallon upon which he has assumed liability for payment of the tax under the provisions of RCW 82.36.100: PROVIDED, That under such regulations as the director may prescribe sales or distribution of motor vehicle fuel may be made by one licensed distributor to another licensed distributor free of the tax. In the computation of the tax, one-quarter of one percent of the net gallonage otherwise taxable shall be deducted by the distributor before computing the tax due, on account of the losses sustained through handling. The tax imposed hereunder shall be in addition to any other tax required by law, and shall not be imposed under circumstances in which the tax is prohibited by the Constitution or laws of the United States. The tax herein imposed shall be collected and paid to the state but once in respect to any motor vehicle fuel. An invoice shall be rendered by a distributor to a purchaser for each distribution of motor vehicle fuel.

(2) The portion of the proceeds of the motor vehicle fuel excise tax derived from the rate computed in the manner provided by RCW 82.36.025 collected on the net gallonage after the deduction provided for herein and after the deductions for payments and expenditures as provided in RCW 46.68.090, shall be distributed as provided in RCW 46.68.100.

(3) The portion of the proceeds of the motor vehicle fuel excise tax derived from the rate computed in the manner provided by section 24 of this 1985 act collected on the net gallonage after the deductions provided for in this section shall be deposited in the hazardous substance response trust fund established by section 10 of this 1985 act.

NEW SECTION. Sec. 24. A new section is added to chapter 82.36 RCW to read as follows:

(1) The petroleum fuel special assessment rate shall be computed as follows:

(a) For the period from January 1, 1986, through June 30, 1987, a rate of two-tenths of one cent per gallon shall apply to the sale, distribution, and use of motor vehicle fuel.

(b) Beginning July 1, 1987, a rate of two-tenths of one cent per gallon multiplied by the rate adjustment factor determined under section 32 of this act shall apply to the sale, distribution, and use of motor vehicle fuel.

(c) The rate established by (b) of this subsection shall be increased or decreased by the department of licensing biennially beginning July 1, 1989, by the percentage change in the national consumer price index for the previous two-year period ending March 31st.

(2) The motor vehicle fuel excise tax exemption and refund provisions of RCW 82.36.275, 82.36.280, 82.36.285, 82.36.290, 82.36.300, 82.36.305, 82.36.370, and 82.37.140 do not apply with respect to the portion of the motor vehicle fuel excise tax attributable to the rates provided for in subsection (1) of this section.

(3) This section shall take effect on January 1, 1986.

Sec. 25. Section 82.36.100, chapter 15, Laws of 1961 as last amended by section 28, chapter 49, Laws of 1983 1st ex. sess. and RCW 82.36.100 are each amended to read as follows:

Every person other than a distributor who acquires any motor vehicle fuel within this state upon which payment of tax is required under the provisions of this chapter, or imports such motor vehicle fuel into this state and sells, distributes, or in any manner uses it in this state shall, if the tax has not been paid, apply for a license to carry on such activities, file bond, make reports, comply with all regulations the director may prescribe in respect thereto, and pay an excise tax at the rate computed in the manner provided in RCW 82.36.025 and section 24 of this 1985 act for each gallon thereof so sold, distributed, or used during the fiscal year for which such rate is applicable in the manner provided for distributors, and the director shall issue a license to such person in the manner provided for issuance of licenses to distributors. The proceeds of the tax imposed by this section shall be distributed in the manner provided for the distribution of the motor vehicle fuel excise tax in RCW 82.36.020. However, a distributor licensed under this chapter may deliver motor vehicle fuel to an importer in individual quantities of five hundred gallons or less and assume the liability for payment of the tax to this state. Under such conditions, the importer is exempt from the requirements of this section. For failure to comply with this chapter such person is subject to the same penalties imposed upon distributors. The director shall pursue against such persons the same procedure and remedies for audits, adjustments, collection, and enforcement of this chapter as is provided with respect to distributors. Nothing in this section may be construed as classifying such persons as distributors.

Sec. 26. Section 82.36.410, chapter 15, Laws of 1961 as amended by section 5, chapter 95, Laws of 1973 and RCW 82.36.410 are each amended to read as follows:

All moneys collected by the director shall be transmitted forthwith to the state treasurer, together with a statement showing whence the moneys were derived, and shall be by him credited to the motor vehicle fund and to the hazardous substance response trust fund established by section 10 of this 1985 act.

Sec. 27. Section 2, chapter 28, Laws of 1974 ex. sess. and RCW 82.37.190 are each amended to read as follows:

All moneys collected by the director shall be transmitted forthwith to the state treasurer, together with a statement showing whence the moneys were derived, and shall be by him credited to the motor vehicle fund and the hazardous substance response trust fund established by section 10 of this 1985 act.

The proceeds of the motor vehicle fuel importer use tax imposed by chapter 82.37 RCW shall be distributed in the manner provided for the distribution of the motor vehicle fuel tax in RCW 82.36.020, as amended in section 2 of chapter 124, Laws of 1973 first extraordinary session.

Sec. 28. Section 2, chapter 10, Laws of 1967 ex. sess. as last amended by section 2, chapter 25, Laws of 1982 1st ex. sess. and RCW 82.42.020 are each amended to read as follows:

There is hereby levied, and there shall be collected by every distributor of aircraft fuel, an excise tax at the sum of the aircraft fuel rate computed under RCW 82.42.025 and the aircraft fuel special assessment rate computed in the manner provided by section 29 of this 1985 act on each gallon of aircraft fuel sold, delivered or used in this state: PROVIDED HOWEVER, That such aircraft fuel excise tax attributable to the rate computed in the manner provided by RCW 82.42.025 shall not apply to fuel for aircraft that both operate from a private, non-state-funded airfield during at least ninety-five percent of the aircraft's normal use and are used principally for the application of pesticides, herbicides, or other agricultural chemicals: PROVIDED FURTHER, That there shall be collected from every consumer or user of aircraft fuel either the use tax imposed by RCW 82.12.020, as amended, or the retail sales tax imposed by RCW 82.08.020, as amended, collection procedure to be as prescribed by law and/or rule or regulation of the department of revenue. The taxes imposed by this chapter shall be collected and paid to the state but once in respect to any aircraft fuel.

NEW SECTION. Sec. 29. A new section is added to chapter 82.42 RCW to read as follows:

(1) The aircraft fuel special assessment rate shall be computed as in section 24(1) of this act.

(2) This section shall take effect on January 1, 1986.

Sec. 30. Section 3, chapter 10, Laws of 1967 ex. sess. as amended by section 4, chapter 25, Laws of 1982 1st ex. sess. and RCW 82.42.030 are each amended to read as follows:

The provision of RCW 82.42.020 imposing the payment of an excise tax on each gallon of aircraft fuel sold, delivered or used in this state shall not apply to aircraft fuel used for the following purposes: (1) The operation of aircraft when such use is by any air carrier or supplemental air carrier operating under a certificate of public convenience and necessity under the provisions of the Federal Aviation Act of 1958, Public Law 85-726, as amended; (2) the operation of aircraft for testing or experimental purposes; (3) the operation of aircraft when such operation is for the training of crews in Washington state for purchasers of aircraft who are certified air carriers; and (4) the operation of aircraft in the operations of a local service commuter: PROVIDED, That the director's determination as to a particular activity for which aircraft fuel is used as being an exemption under this section, or otherwise, shall be final: PROVIDED FURTHER, That these exemptions do not apply with respect to that portion of the tax attributable to the rate calculated in the manner provided by section 29 of this 1985 act, unless otherwise required by federal law.

Sec. 31. Section 9, chapter 10, Laws of 1967 ex. sess. as amended by section 8, chapter 25, Laws of 1982 1st ex. sess. and RCW 82.42.090 are each amended to read as follows:

All moneys collected by the director from the aircraft fuel excise tax as provided in RCW 82.42.020 and attributable to the rate calculated in the manner provided by RCW 82.42.025 shall be transmitted to the state treasurer and shall be credited to the aeronautics account of the state general fund, hereby created. All moneys collected by the director from the aircraft fuel excise tax as provided in RCW 82.42.020 and attributable to the special assessment rate computed in the manner provided by section 29 of this 1985 act shall be transmitted to the state treasurer and shall be credited to the hazardous substance response trust fund established by section 10 of this 1985 act. Moneys collected from the consumer or user of aircraft fuel from either the use tax imposed by RCW 82.12.020 or the retail sales tax imposed by RCW 82.08.020 shall be transmitted to the state treasurer and credited to the state general fund.

NEW SECTION. Sec. 32. A new section is added to chapter 82.32 RCW to read as follows:

For the purposes of sections 12, 13, 16, 24, and 29 of this act and RCW 82.16.020, the rate adjustment factor shall be determined by the department of revenue to be equal to:

@lb!tn6 !tj1!tl$30,000,000!tj1!tlx!sc ,001(100 Percent + CPI)

!tl!ss1!tl!w-!tl!w-!tl

!w !tl!sc ,003Fund assessment revenue

@la !ixwhere the fund assessment revenue is the revenue deposited in the hazardous substance response trust fund pursuant to section 10(2)(a) of this act for the period from April 1, 1986, through March 31, 1987, and the CPI is the percentage change in the national consumer price index for the period from July 1, 1985, through March 31, 1987.

Sec. 33. Section 1, chapter 65, Laws of 1983 1st ex. sess. and RCW 70.105A.010 are each amended to read as follows:

(1) It is the policy of the state of Washington to protect the public health and welfare of all its citizens against the dangers arising from the generation, transport, treatment, storage, and disposal of hazardous wastes and from releases of hazardous substances. In order to reach that policy objective, it is not only necessary to provide state government with broad powers of regulation, control, and removal of these hazardous wastes and substances, including the power to fashion and effectuate remedial directives, but it is imperative that adequate funds are also provided to carry out these powers in a vigorous manner. In the implementation of the provisions of this chapter, the state shall, when appropriate, cooperate with and support federal agencies in their implementation of counterpart federal hazardous waste and substances programs, while pursuing independent state actions whenever it appears they will provide more efficient or effective alternative programs to achieve the policies and purposes of this chapter.

(2) The purposes of this chapter are, among others: (a) To supplement the powers already vested in the department of ecology relating to hazardous wastes and to releases of substances which are hazardous to the environment or public health, (b) to provide moneys necessary for the full, sufficient, and efficient implementation of the hazardous waste and substances regulation control and removal program of the state, and (c) to encourage reduction of hazardous wastes through recycling and improvement of manufacturing processes((, (d) to provide for the cleanup and restoration of those sites within the state at which improper disposal of hazardous waste has occurred, resulting in the potential for deleterious impacts on the health and welfare of the citizens of the state, as well as on the state's natural, environmental, and biological systems, (e) to provide for funding to study, plan, and undertake the rehabilitation, removal, and cleanup of hazardous waste deposited improperly at sites located within the state, and (f) to provide funds for matching purposes for participation in the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980)).

Sec. 34. Section 6, chapter 65, Laws of 1983 1st ex. sess. and RCW 70.105A.060 are each amended to read as follows:

(1) The department of ecology may use funds in the hazardous waste control and elimination account in the implementation of the powers vested under RCW 70.105.020, 70.105.030, 70.105.080, 70.105.100, 70.105.120, and 70.105.130, 70.105.160 and 70.105.170 and subsections (3) and (4) of this section as well as the administrative costs relating to the implementation of subsection (2) of this section.

(2) The department is authorized to participate in and is empowered to carry out all programs of the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 contemplated for state participation or administration under that act.

(3) In relation or addition to the powers set forth in this section and any other provisions of this code, the department is empowered, with regard to the regulation, control, or removal of hazardous substances and wastes, as follows:

(a) To coordinate responses to hazardous substances accident and spill incidents;

(b) To respond to, direct, or initiate cleanup of ((~~hazardous substances,~~)) accidents and spills((~~, and hazardous waste sites~~)) of hazardous substances; and

(d) To conduct or contract for the removal of hazardous substances and wastes where there has been or is a potential for release, regardless of quantity or concentration, which could pose a threat to public health or the environment)).

(4) The department is empowered to participate in and carry out all programs of the federal Resource Conservation and Recovery Act, as amended, contemplated for implementation by a state under that act and may use funds in the hazardous waste control and elimination account in the implementation thereof.

(5) The attorney general, at the request of the department, is empowered to recover moneys expended by the department from the hazardous waste control and elimination account under authority of this section when these funds were utilized to respond to an unpermitted spill or discharge or to control the release or threatened release of hazardous substances or wastes. Recovery authorized by this section shall be from any person owning or controlling the material spilled or discharged. Actions to recover moneys may be initiated in the superior court of Thurston county or any county in which the hazardous waste site or activity is located. Moneys recovered under this section which are less than or equal to amounts actually expended in response to the particular incident in accordance with the purposes of RCW 70.105A.010(2) shall be paid into the hazardous waste control and elimination account. Any other moneys recovered under this section shall be deposited in the general fund.

NEW SECTION. Sec. 35. Section 13, chapter 65, Laws of 1983 1st ex. sess. and RCW 70.105A.090 are each repealed.

NEW SECTION. Sec. 36. (1) For the purposes of this act, there is hereby appropriated for the biennium ending June 30, 1987, from the general fund--state to the hazardous substance response trust fund, the sum of forty-five million six hundred thousand dollars, and from the general fund--federal to the hazardous substance response trust fund, the sum of one hundred fifty million dollars.

(2) For the purposes of this act, there is hereby appropriated for the biennium ending June 30, 1987, from the hazardous substance response trust fund the sum of two hundred million dollars to the department of ecology.

NEW SECTION. Sec. 37. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 38. This act is exempted from the rule of strict construction, and shall be liberally construed to give full effect to the objectives and purposes for which it was enacted.

NEW SECTION. Sec. 39. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.