SENATE BILL REPORT

SHB 2956

BYHouse Committee on Energy & Utilities (originally sponsored by Representatives Nelson, Miller, Jesernig, Sprenkle, May, Grant, Cooper, Hankins, Dellwo, Baugher, R. Meyers, Rust, Brooks, Holland, Appelwick, Moyer, Ballard, Prince, Bennett, Dorn, Jacobsen, Valle, Crane, Brumsickle, Ebersole, Fuhrman, Van Luven, Horn, Rector and Silver; by request of Office of Financial Management)

Revising provisions for the management of low-level radioactive waste.

House Committe on Energy & Utilities

Rereferred House Committee on Revenue

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 15, 1990; February 16, 1990

Majority Report:  Do pass.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Nelson, Owen, Patrick, Stratton, Sutherland, Williams.

Senate Staff:Phil Moeller (786-7455)

                  February 16, 1990

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 16, 1990

BACKGROUND:

Federal law states that low-level radioactive waste, the less hazardous kind, is to be managed by states or groups of states formed into interstate compacts.  Washington is in the seven state northwest compact and is the host state for the disposal site (located on the Hanford Reservation near Richland).

In order to prompt states to set up their own or regional disposal arrangements, the same federal law allows host states to levy an out-of-state (or out-of-region) surcharge on waste received from other states (or states outside the northwest compact) for disposal.  All out-of-region surcharge receipts retained by the state are deposited into the general fund.

Perpetual care and closure accounts have been established as insurance against the state having expenses for site closure or post-closure surveillance.  The care account is approximately sufficient, but the closure account is below estimated closure cost.  One dollar and seventy-five cents per cubic foot of waste disposed is charged and directed into the fund containing both of these accounts.  Current law requires that inputs to the fund now go to the closure account until December 31, 1992.

The Department of Health regulates the disposal site operator.  A surveillance fee, keyed to waste disposed, is charged to pay the cost of regulation.  As these moneys are keyed to a declining volume of waste disposed, the amount will become progressively more inadequate to support the cost of regulation.

The site operator has for a number of years sought reduction of the business and occupation tax for the disposal operation, which is uniquely high at 30 percent.

SUMMARY:

On the effective date of the act, the business and occupation tax is reduced to 15 percent.  If prescribed conditions are met the rate is later reduced to 10 and still later to 5 percent.

The first $10 per cubic foot of the out-of-region surcharge shall be directed to the closure account.

After 1992, out-of-region waste may be accepted for disposal only from the Rocky Mountain Compact states -- Wyoming, Colorado, New Mexico and Nevada, and from the states of North Dakota and South Dakota.

It is clarified from earlier state legislation that it is intended that interest generated by both accounts in the perpetual maintenance fund shall be directed into the closure account until December 31, 1992.  (Thereafter, the interest, as well as any other moneys bound for the fund, may be routed to either of the accounts, as determined by the Department of Ecology.)

Beginning January 1, 1993, the Department of Ecology may impose a site closure fee if necessary to bring the closure account to a sufficient balance.

The surveillance fee to pay regulation costs is raised from 4 percent in three annual steps to 7 percent in 1992.

The Utilities and Transportation Commission and the site operator, assisted by other state agencies and parties, shall study whether the disposal price should be regulated.  Results shall be reported to the Legislature by December 1, 1990.  Regulated prices may not be placed in effect before January 31, 1993.

Appropriation:    $30,000 is appropriated from the general fund to the commission for conduct of the study.

Revenue:    none

Fiscal Note:      available

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

Senate Committee - Testified: PRO:  Representative Dick Nelson, prime sponsor; Peter Berney, Ray Isaacson, Benton County; Claude Oliver, Benton County; Dan Silver, Governor's Office; Terry Husseman, Ecology; Eric Slagle, Dept. of Health; Barry Bede, US Ecology