SENATE 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.

Senate Committee on Transportation

Senate Hearing Date(s):January 29, 1990; January 31, 1990

Majority Report:     That Substitute Senate Bill No. 6700 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; Barr, Conner, DeJarnatt, Hansen, McMullen, Murray, Nelson.

Senate Staff:Mary McLaughlin (786-7309)

                March 3, 1990

House Committe on Environmental Affairs

AS PASSED SENATE, FEBRUARY 12, 1990

BACKGROUND:

Trucking companies transporting only recyclables are regulated as common and contract carriers by the Utilities and Transportation Commission (UTC).  These carriers are regulated under the motor freight carrier statutes rather than the solid waste collection company statutes because the commodity has value and is recycled rather than being transported for disposal only.

The entry standard is Public Convenience & Necessity (PC&N).  The applicant must prove that there is a need for the service and that the proposed service will not negatively impact existing carriers providing similar services.  The carriers may file their own rates or use the UTC published hourly rates.

When a carrier co-mingles garbage and recyclable materials, the company is regulated as a solid waste collection company.  Solid waste carriers are subject to the PC&N entry standard and file their own rates.

SUMMARY:

The movement of "recovered materials" by motor freight carriers from a centralized collection point to a reprocessing facility or end-use manufacturing site is exempt from UTC rate regulation and qualifies under the more relaxed entry standard of fit, willing and able.  "Recovered materials" are materials collected for recycling or reuse, such as paper, glass, aluminum, plastics, metals, yard waste, used oil and tires that would otherwise be transported to a disposal or incineration site.

Recyclers are subject to a one-time $25 registration fee, payment of the annual regulatory fee and the UTC's safety and insurance requirements.

The UTC, Department of Ecology, and Recycling Markets Committee are required to jointly conduct a study on the impact transportation costs have on development and expansion of recycling markets, and if there is any appreciable increase in the volume of recovered materials collected as a result of the rate regulation exemption.  The study recommendations are to be presented to the Legislature by January 1, 1993.

The new rate and entry provisions for motor freight carriers hauling recovered materials expires June 30, 1993.

Appropriation:  none

Revenue:   none

Fiscal Note:    none

Senate Committee - Testified:   David Dougherty, Department of Trade; Don Kneass, Recycler Waste Mgmt.; Lew Holcomb, Recycling Assn.; Greg Wright, Recycling Assn.; Bill Fritz, Reynolds Metal Co. and Anheuser Busch; John Ficher, Weyerhaeuser; Martin Sangster, Washington Trucking Assn.; Mike Ryherd, Teamsters; J. P. Jones, Washington Waste Mgmt. Assn.; Gordon Walgren, Washington Waste Mgmt. Assn.

HOUSE AMENDMENT:

Certain movements of "recovered materials" by motor freight carriers (1) are exempt from rate regulation by the Utilities and Transportation Commission (UTC), and (2) qualify under the UTC's more relaxed entry standard of Fit, Willing and Able.  These provisions apply when transporting (1) recovered materials from a site generating a minimum of 10,000 tons of recovered materials per year to a reprocessing facility or end-use manufacturing site, (2) recovered materials from a reprocessing facility to another reprocessing facility or end-use manufacturing site, and (3) mixed waste paper from a reprocessing facility to an energy recovery facility.  Qualifying recyclers are subject to a one-time $25 registration fee, payment of the annual regulatory fee and the UTC's safety and insurance requirements.

"Recovered materials" are materials collected for recycling or reuse, such as paper, glass, aluminum, plastics, used wood, metals, yard waste, used oil and tires that would otherwise be transported to a disposal or incineration site.  Wood waste generated by a logging, chipping, or milling activity is not a recovered material.

Administrative rules are adopted by the UTC requiring carriers of recovered materials to submit information that may be necessary for waste stream management analysis.  The services that garbage companies and recyclers may provide are clarified.

The bill contains an emergency clause and takes effect immediately.