HOUSE BILL REPORT

                 2SSB 5591

             As Reported By House Committee on:

                    Environmental Affairs

                           Revenue

Title:  An act relating to the reduction of solid waste through recycling.

Brief Description:  Adopting comprehensive recycling programs.

Sponsor(s):  Senate Committee on Ways and Means (originally sponsored by Senators Metcalf, Amondson, A. Smith and Roach).

Brief History:

  Reported by House Committee on:

Environmental Affairs, April 2, 1991, DPA;

Revenue, April 6, 1991, DPA (REV w/o ENA).

HOUSE COMMITTEE ON

ENVIRONMENTAL AFFAIRS

Majority Report: Do pass as amended.  Signed by 12 members:  Representatives Rust, Chair; Valle, Vice Chair; Horn, Ranking Minority Member; Edmondson, Assistant Ranking Minority Member; Bray; Brekke; G. Fisher; Neher; Phillips; Pruitt; D. Sommers; and Sprenkle.

Minority Report: Do not pass.  Signed by 1 member:  Representative Van Luven.

Staff:  Rick Anderson (786-7110).

Background:  The 1989 Legislature enacted comprehensive recycling legislation to increase recycling collection programs and established a goal of recycling 50 percent of Washington's waste by 1995.

The legislation also created the Washington Committee for Recycling Markets within the Department of Trade and Economic Development (DTED) for the purpose of making recommendations to develop markets for recyclable materials. The committee's final report stated that an estimated 4.6 million tons of recyclable materials will be collected annually by the year 2010, an increase of three million tons over 1988 recycling levels.  The committee found that in addition to the increase in supply, much of the material recycled will consist of lower value recyclables, further affecting efforts to find stable markets.

The committee's major recommendation is the creation of a center within DTED to provide market research and development; business assistance; information and education; and manage public policy issues related to market development.

The 1989 Legislature also created a packaging task force within the Department of Ecology to recommend methods to reduce the toxicity of packaging, reduce the reliance on single use packaging, and to increase the recyclability of packaging.  While a consensus of the task force was not reached on all issues, general support was expressed for measures including reducing heavy metal content in packaging, conducting a public education program, and coding of rigid plastic containers to facilitate source separation and recycling. 

The 1989 Legislature also established a mandatory five dollar "core" deposit on automotive batteries to encourage consumers to return old batteries.  These core deposits are subject to the business and occupation tax.

Summary of Amended Bill:

Packaging.

Plastic bottles must have a label depicting the type of plastic resin used in its manufacture.  The amount of certain toxic metals in packaging is reduced over a six-year period.  In 1995, the state solid waste advisory committee must report to the Legislature on the need to restrict other metals from packaging materials.

The number of awards for school recycling programs is increased from three to 15.  A $5,000 award is created for the school with the best waste reduction program.

A task force on recycling funding is created.  The task force is to consist of 14 persons including legislative, agency, local government, business, and environmental representatives.  The task force must report its findings on long-term funding mechanisms for recycling programs to the Legislature by December 1991.  The task force terminates in January, 1992.

Center for Recycling Markets Development.

The Center for Recycling Markets Development is created within the Department of Trade and Economic Development.  The center is to provide targeted business assistance to recycling processors and manufacturers, conduct market research, assist with access to financing, negotiate voluntary agreements with manufacturers, conduct a  comprehensive education and demonstration program to promote recycled products, and develop an annual work plan.

The center must place a high priority upon specified commodities comprising a large part of the waste stream.  The center must solicit private contributions to support its activities.  A policy committee is created to include legislative, business, and state and local government representatives to assist in the center's activities.

Miscellaneous.

Membership of the state solid waste advisory committee is expanded.  The value of core deposits charged by a retailer on certain recyclable materials, automotive parts, and packaging is not subject to the business and occupation tax.

Amended Bill Compared to Second Substitute Bill:  The amended bill adds a legislative task force to identify a long-term funding strategy for recycling programs, deletes the sunset clause for the market development center, and limits the materials exempt from the business and occupation tax.

Fiscal Note:  Available.

Effective Date of Amended Bill:  The bill contains an emergency clause and takes effect immediately. However, the bill is null and void unless funded in the budget.

Testimony For:  Markets for recyclable materials are desperately needed.  The center will coordinate and expedite public and private efforts to develop recyclable material markets.

Testimony Against:  None.

Witnesses:  Senator Jack Metcalf (pro); Greg Wright, Washington State Recycling Center (pro); Kathleen Collins, Association of Washington Cities (pro); Jan Glick and Mike Todd, Washington Citizens for Recycling (pro); Jan Gee, Washington Retail Association (pro); Becky Bogard, Diaper Manufacturers Group (pro); Larry Stevens, Washington Automotive Wholesalers (pro); Paul Parker, Washington State Association of Counties (pro); and Robert Taylor, Aluminum Company of America.

HOUSE COMMITTEE ON

REVENUE

Majority Report: Do pass as amended by Committee on Revenue and without amendment by Committee on Environmental Affairs.  Signed by 12 members:  Representatives Wang, Chair; Fraser, Vice Chair; Holland, Ranking Minority Member; Wynne, Assistant Ranking Minority Member; Belcher; Brumsickle; Day; Leonard; Morris; Phillips; Rust; and Van Luven.

Minority Report: Without recommendation.  Signed by 2 members:  Representatives Morton and Silver.

Staff:  Robin Appleford (786-7093).

Summary of Recommendation of Committee on Revenue Compared to Recommendation of Committee on Environmental Affairs:  The striking amendment adopted by the Revenue Committee incorporates the amendment adopted by the Environmental Affairs Committee with the following changes:  The name of market development center created within the Department of Trade and Economic Development is changed to the "Clean Washington Center;" the Center is terminated on June 30, 1997; a representative of the recycling industry is added to the task force on recycling funding and the policy board of the Clean Washington Center; provisions are added requiring local governments to provide collection sites to encourage public recycling of used motor oil; and the exemption from the business and occupation tax for the value of deposits charged by retailers on recyclable materials is restricted to only those deposits required by state law.

Fiscal Note:  Available.

Effective Date of Amended Bill:  The bill contains an emergency clause and takes effect immediately. However, the bill is null and void unless funded in the budget.

Testimony For:  Exempting the core deposit on automotive batteries from the business and occupation tax is helpful; the retail industry will likely seek to expand this exemption to all products with a core deposit next year.

Testimony Against:  None.

Witnesses:  Jan Gee, Washington Retail Association (in favor).