SENATE BILL REPORT

SB 6700

BYSenators Patterson, Metcalf, DeJarnatt, Amondson, Benitz, Newhouse, Sellar, Hansen, Conner and Madsen

Exempting recyclable materials from trucking regulation.

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)

                February 1, 1990

AS REPORTED BY COMMITTEE ON TRANSPORTATION, JANUARY 31, 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 entry and rate regulation.  "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.

EFFECT OF PROPOSED SUBSTITUTE:

In lieu of exempting motor freight carriers transporting recovered materials from UTC entry and rate regulation, these carriers are regulated under the Fit, Willing and Able entry standard.  The exempt registration requirement is removed.  As in the original version, rate regulation is not required.

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.