HOUSE BILL REPORT

 

 

                                   ESSB 6700

 

 

BYSenate Committee on Transportation (originally sponsored by Senators Patterson, Metcalf, DeJarnatt, Amondson, Benitz, Newhouse, Sellar, Hansen, Conner and Madsen)

 

 

Regulating trucking of recovered materials.

 

 

House Committe on Environmental Affairs

 

Majority Report:  Do pass as amended.  (11)

      Signed by Representatives Rust, Chair; Valle, Vice Chair; Brekke, G. Fisher, Fraser, Phillips, Pruitt, Schoon, Sprenkle, Van Luven and Walker.

 

      House Staff:Rick Anderson (786-7114)

 

 

                         AS PASSED HOUSE MARCH 1, 1990

 

BACKGROUND:

 

Trucking companies transporting recycled commodities are regulated by the Utilities and Transportation Commission, if the transportation occurs solely within the state.  Trucking companies transporting commodities across state lines are regulated under federal law.  Federal regulations consist only of insurance and registration requirements.

 

The commission regulates trucking companies transporting recycled commodities in three ways.  First, the commission regulates the rates charged by the trucking company by establishing fixed fees or tariffs for each commodity transported.  Second, the commission requires an applicant to demonstrate that there is a need for the transportation service and that the proposed service will not negatively impact existing carriers providing similar services. This "public convenience and necessity" entry requirement acts to limit the number of truck operators transporting a given commodity on a given route.  Third, the commission requires truck operators to insure and register their vehicles.

 

Arguably, the higher level of state regulation makes it cheaper to transport commodities across state lines rather than within the state.  Given the low value of many recycled commodities, the cost of transporting these commodities within the state may limit the extent to which they can be profitably recycled.

 

SUMMARY:

 

Motor vehicle operators are exempt from rate regulation and the public convenience and necessity entry requirement imposed by the Utilities and Transportation Commission if the operator transports:  1) recycled materials from a site that generates more than 10,000 tons per year to a recycling facility or to a manufacturing site that uses recycled materials in its production process; 2) recycled materials from a recycling facility to a manufacturing site using recycled materials; or 3) low value grades of recycled paper from a recycling facility to an energy recovery facility.

 

Motor vehicle operators transporting recycled commodities must meet certain safety requirements in addition to insurance and registration requirements.

 

Recycled materials include paper, glass, plastics, wood, metals, yard waste, used oil, and tires that are collected for recycling.  Recycled materials do not include wood waste originating from a logging, chipping, or milling activity.  Energy recovery facilities do not include mass burn incinerators.

 

The Department of Trade and Economic Development, the Utilities and Transportation Commission, and the Department of Ecology must determine if the exemptions from the commission's regulations result in a greater volume of recycled materials being transported within the state.  The agencies must also evaluate if the exemptions increase safety violations or traffic accidents.  The agencies are to submit the results of their study to the Legislature by October 1, 1993.  The commission must adopt rules requiring motor vehicle operators to submit information necessary to conduct the study.

 

Solid waste that incidentally contains recyclable materials may only be collected by:  1) a solid waste collection company operating under the authority of the commission, a city, or a town; and 2) a city or town operating its own collection system.

 

Fiscal Note:      Not Requested.

 

Effective Date:The bill contains an emergency clause and takes effect immediately.

 

House Committee ‑ Testified For:    David Dougherty, Washington Committee for Recycling Markets; John Ficker, Weyerhaeuser; Kathleen Collins, Association of Washington Cities; Greg Wright, Washington State Recycling Association; John Paul Jones, Washington Waste Management Association; Greg Matheson, Fibres International; Nancy Pearson, Washington Citizens for Recycling; and Jan Gee, Washington Retail Association.

 

House Committee - Testified Against:      Mark Sangster, Washington Trucking Associations.

 

House Committee - Testimony For:    The bill is necessary to lower transportation costs for recycled commodities.  On a per mile basis, recyclers can often ship to other states more cheaply than they can ship to areas within the state.  Transportation rates cannot be economically or practically reduced using the current administrative process.

 

House Committee - Testimony Against:      The bill is not necessary because transportation costs are routinely lowered administratively.