FINAL BILL REPORT

SHB 2390

                                  C 114 L 90

BYHouse Committee on Environmental Affairs (originally sponsored by Representatives Rust, Phillips, Jacobsen, Nelson, Valle, Pruitt, Sprenkle, P. King, Heavey, Hine, R. Fisher, Rector, Dellwo, Basich, O'Brien, Spanel, Brekke and Crane; by request of Governor Gardner)

Regulating hazardous substances and waste.

House Committe on Environmental Affairs

Rereferred House Committee on Revenue

Senate Committee on Environment & Natural Resources

SYNOPSIS AS ENACTED

BACKGROUND:

Waste Reduction.  In 1983, the Legislature enacted a law establishing priorities for the management and regulation of hazardous wastes.  The first priority is waste reduction followed by waste recycling, treatment, incineration, solidification or stabilization, and landfill.  The Department of Ecology was given responsibility for conducting a study on the best management practices for different categories of waste.

In 1988, the Legislature enacted a law establishing the Office of Waste Reduction within the Department of Ecology.  Under this law, the office provides waste reduction assistance to generators of both hazardous and solid waste and advice to waste generators on waste reduction techniques.  It is also required to maintain an information and referral service, coordinate public education programs, and recommend appropriate courses and curricula for the state's colleges and universities.

In providing advice to a waste generator, the office may visit the generator's facilities.  The person providing the advice may not have any enforcement authority.  Proprietary information obtained during the course of the visit may not become part of the information data base maintained by the office.

In the last year, at least three states have enacted measures to encourage reduction in the use of hazardous substances and the generation of hazardous waste.  Oregon has adopted a program requiring hazardous waste generators, required to report under federal statutes, to develop plans for reducing hazardous substance use and waste generation and to establish specific performance goals for the reduction or hazardous substance use and waste generation.  Oregon does not impose any specific performance requirements and does not impose penalties for failing to satisfy the goals established in the plans. California has enacted a measure similar to Oregon's, requiring waste generators to prepare plans on methods to reduce the use of hazardous substances and the generation of hazardous waste.  As with the Oregon statute, California does not impose specific performance requirements.  However, if a generator fails to implement measures identified in the generator's plan without reason, California may impose penalties on the generator until those measures are implemented.  Massachusetts has enacted a measure that provides for plans to reduce the use of toxic substances.  The Massachusetts statute establishes a state-wide goal to reduce by 50 percent the use of toxic substances by 1997.  There is legislation pending in Congress that would encourage states to adopt measures similar to those adopted by Oregon, California, and Massachusetts.

The governors of Washington, Oregon, Idaho, and Alaska, together with the Environmental Protection Agency, have formed the Pacific Northwest Hazardous Waste Advisory Council to support waste reduction efforts and to advise the states on the need for treatment, storage, and disposal facilities.  The council has made a number of recommendations, including a recommendation that the Pacific Northwest establish a goal to reduce the generation of hazardous waste by 50 percent by 1995.  The council has stated that this should be a matter of policy, not a regulatory requirement.

Hazardous Waste Fee.  In 1983, the Legislature enacted a law establishing fees on the generation of hazardous waste.  These fees were assessed against generators of hazardous waste and based on a generator's gross income.  The maximum fee was $7,500. A similar fee was imposed against treatment, storage, and disposal facilities.  In 1987, the Legislature repealed these fees when it enacted the legislative alternative to Initiative 97. Initiative 97, approved by the voters in the 1988 general election, repealed the repealer of the hazardous waste fees and directed the Department of Ecology to propose to the Legislature a fee structure that will be an incentive to waste reduction and recycling.  A Thurston County Superior Court decision has found that Initiative 97 could not revive the statutes that had been repealed by the Legislature.

Most businesses in the state are required to pay a tax on gross income, the business and occupation tax.  A business that has sales or income of less than $1,000 a month is exempt from the tax.

SUMMARY:

Waste Reduction.  The Legislature recognizes that business, individuals, and government contribute to hazardous waste generation. The Legislature adopts the Pacific Northwest Hazardous Waste Advisory Council recommendation that hazardous waste generation should be reduced by 50 percent by 1995.  The Legislature recognizes that many individual businesses may already have made substantial reductions in hazardous waste generation, and that some processes may not be capable of being modified to reduce hazardous waste.  The 50 percent goal may not be applied as a regulatory requirement.

The Office of Waste Reduction's duties to provide assistance are modified to specifically include assistance in hazardous substance use reduction efforts and in the completion of plans for the reduction of hazardous waste.  The office is also directed to establish an intern program in cooperation with colleges and universities to provide technical assistance to business.

An employee of the department providing advisory services during a visit to a business may not exercise any enforcement authority. The department may include proprietary information in its data base on waste reduction techniques with the written permission of the business.

Hazardous waste generators who generate more than 2,640 pounds of hazardous waste each year and hazardous substance users required to report under federal law are required to prepare plans designed to reduce the generation of hazardous wastes and the use of hazardous substances.  A single plan may cover more than one facility.  Hazardous waste generated for beneficial use does not count in determining whether a plan must be prepared.  A person who, because of unique circumstances, generates sufficient waste to be required to complete a plan, may petition the department for an exclusion.

The Department of Ecology is directed to adopt rules by April 1, 1991, for the preparation of the plans.  The plans contain provisions dealing with substance use reduction, waste reduction, recycling, and treatment in descending order.  The plans must also contain specific performance goals for the anticipated reduction of hazardous waste and in the use of hazardous substances, and for recycling and treatment.  Plans are to be designed on a five year implementation schedule and must be updated every five years.

An executive summary of the plan must also be prepared and must include a summary of the hazardous substances used and wastes generated, a description of the options chosen to reduce substances used or waste generated, and the specific performance goals.  The executive summary must be submitted to the department.

Generators of more than 50,000 pounds of hazardous waste and hazardous substance users must complete their plans and executive summaries by September 1, 1992.  By September 1, 1993, generators of between 7,000 and 50,000 pounds of hazardous waste must complete their plans and executive summaries.  By September 1, 1994, all other covered generators must complete their plans.  In subsequent years, newly covered generators and users must submit their plans and executive summaries by September 1 of the year following the year they became subject to the planning requirements.

Hazardous waste generators and hazardous substance users must prepare annual reports.  The reports must be submitted to the department and include a description of the progress made towards the specific performance goals included in the generator's plan.

The department shall determine whether a plan, executive summary, or progress report is adequate based on whether the document is complete and complies with the planning process required by the act.

The department may require a hazardous substance user or waste generator to prepare a plan, executive summary, or annual report or to correct an inadequate plan, summary, or progress report.  Failure to comply will subject the user or generator to a civil penalty equal to the greater of $1,000 or three times the generator's annual fee.  Continued failure will subject the user or the generator to a surcharge of three times the disposal fee for any waste disposed of by the user or generator in this state.  The decision of the department to impose a penalty may be appealed to the Pollution Control Hearings Board.

The executive summary and annual progress reports submitted to the department are available for public inspection.  The plan is retained at the user's or generator's facility and is not available for public inspection.  Persons living within the vicinity of a facility may ask the department to review the plan of a facility.  If at least 10 persons make such a request, the department must review the plan and report its conclusions to those individuals and to the facility.

A person submitting an executive summary or progress report may request the department to keep certain information confidential if disclosure would adversely affect the person's competitive position.  While the department is reviewing that request, the executive summary or progress report is not available for public inspection.

Hazardous Waste Fees.  A fee of $35 is imposed on every person doing business in the state who generates hazardous waste or is in a type of business that might generate hazardous waste.  A business exempt from paying business and occupation tax because the business does not meet the income threshold is exempt from the $35 annual fee.  The revenue generated from the fee is subject to appropriation by the Legislature and may only be used to support the activities of the Office of Waste Reduction.  The Department of Ecology will adopt rules defining the businesses that will be required to pay the annual fee.

The Department of Ecology is directed to establish a fee structure to be imposed on those required to prepare plans.  A facility that generates less than 2,640 pounds of hazardous waste is not required to pay this fee.  The maximum annual fee that may be imposed against a facility that generates 4,000 pounds or less of hazardous waste is $50. The maximum fee that may be assessed in other instances is $10,000 for each plan.  A hazardous waste generator will pay the fee beginning with the year the generator is first required to submit a plan.

Hazardous waste fees and any penalties imposed as a result of a failure to prepare an adequate plan are to be deposited in the hazardous waste assistance account.  Money in the account may be used to provide technical assistance and compliance education and to make grants to local governments for the purpose of providing assistance to small quantity generators under local government moderate risk waste plans.

The previously enacted hazardous waste fees are repealed.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    48     0 (Senate amended)

      House 92   0 (House concurred)

EFFECTIVE:March 21, 1990