HOUSE BILL REPORT

HB 447

BYRepresentatives Rust, Unsoeld, Todd and Allen; by request of Governor Gardner

Changing provisions relating to water quality discharge permits.

House Committe on Environmental Affairs

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (9)

     Signed by Representatives Rust, Chair; Valle, Vice Chair; Allen, Brekke, Lux, May, Pruitt, Sprenkle and Unsoeld.

Minority Report:     Do not pass.  (4)

     Signed by Representatives Ferguson, Schoon, D. Sommers and Walker.

House Staff:Susan Gulick (786-7116)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     The substitute bill by Committee on Environmental Affairs be substituted therefor and the substitute bill do pass.  (13)

     Signed by Representatives Locke, Chair; Allen, Belcher, Brekke, Ebersole, Grimm, Hine, McMullen, Niemi, Peery, Sayan, H. Sommers and Sprenkle.

Minority Report:     Do not pass.  (6)

     Signed by Representatives Fuhrman, Holland, McLean, Nealey, Silver and B. Williams.

House Staff:    Nancy Stevenson (786-7137)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 7, 1987

BACKGROUND:

The Puget Sound Water Quality Authority recently completed a water quality management plan for Puget Sound.  One of the major problem areas identified was municipal and industrial discharges of pollutants.

Although control of conventional pollutants has greatly improved, toxic pollutants remain a problem in Puget Sound.  The concentration of toxicants found in recent sediment samples from Puget Sound's urban bays is up to 100 times the levels in the cleanest rural bays.  High concentrations of toxic contaminants have been associated with high incidences of diseased fish, and may pose health risks to consumers of Puget Sound seafood.

The Puget Sound Water Quality Authority attributes part of this problem to the Department of Ecology's lack of adequate resources to effectively carry out its functions under state and federal permit programs.  Currently, Ecology charges permit applicants administrative expenses for processing permits, but these are limited to the total actual costs incurred by Ecology in processing permit applications.

SUMMARY:

SUBSTITUTE BILL:  The Department of Ecology (Ecology) is directed to collect administrative expenses from anyone receiving a water quality discharge permit.  These expenses are expanded to include the costs of processing permit applications, monitoring, inspections, laboratory analysis, review of plans and other documents, and overhead expenses related to these costs.  The administrative expenses may not include the costs of enforcement or of monitoring anything other than compliance.  The total amount of fees collected may not exceed specified amounts.

By March 1, 1988, Ecology must develop a fee schedule by rule to implement the fees. The schedule may not be adjusted more than once every two years. All fees are deposited into the water quality permit account which is established to be used for administering permits.

Ecology is required to provide annual reports to the legislature on the administrative efficiency of the permit fee system.

Ecology must ensure that permit holders do not pay the fee twice if they are also required to receive local permits for discharge into a sewage system. In establishing fees, Ecology will make adjustments for the economic impacts on small dischargers. Failure to pay a required permit fee will result in termination of the permit.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill 1) clarifies that the fee schedule will be adopted by rule; 2) clarifies which expenses can be recovered by the Department of Ecology and which cannot; 3) places caps on the total amount of fees that can be collected; and 4) requires a detailed report to the legislature on how the fees are spent.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  None.

Fiscal Note:    Requested March 6, 1987.

House Committee ‑ Testified For:     (Environment Affairs)  Governor's Office; Metro; Puget Sound Water Quality Authority; Puget Sound Alliance; Department of Ecology.

(Ways & Means/Appropriations)  Dave McCraney, Governor's Office; Jim Krull, Department of Ecology; Kathy Fletcher, Puget Sound Water Quality Authority; Bruce Wishart, Sierra Club; Shelly Stewart, Greenpeace.

House Committee - Testified Against: (Environmental Affairs)  Reynolds Metals; Washington Food Processors Council.

(Ways & Means/Appropriations)  Randy Ray, Todd Shipyard.

House Committee - Testimony For:     (Environmental Affairs)  The bill provides an extremely important funding source for the Department of Ecology.  Lack of resources to ensure compliance with existing water quality standards is one of the biggest water quality problems in the state.

(Ways & Means/Appropriations)  This bill is the key to implementing the Puget Sound Water Quality plan.  Expanded efforts to insure compliance with existing water quality standards will be funded by this bill as well as a majority of the existing efforts.

House Committee - Testimony Against: (Environmental Affairs)  The fees place an unfair burden on industry without providing any environmental benefits.  Ecology should not be given a blank check.  Some of the costs should be borne by the general fund.

(Ways & Means/Appropriations)  Believe the Department needs more money, but the present bill does not cap the individual permit fees nor does it put any limitation on the additional in-house monitoring required by the state.