S-1080

AN ACT Relating to the reduction of solid waste through recycling; amending RCW 70.95C.120, 43.155.020, 70.93.020, 70.93.030, 70.93.130, 70.93.150, and 70.93.180; adding new sections to chapter 43.131 RCW; adding new sections to chapter 70.95C RCW; adding a new section to chapter 43.168 RCW; adding a new section to chapter 70.93 RCW; adding a new section to chapter 82.18 RCW; adding new chapters to Title 70 RCW; adding a new chapter to Title 82 RCW; creating new sections; repealing RCW 43.160.077; making appropriations; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

PART I

CENTER FOR RECYCLING MARKETS DEVELOPMENT

NEW SECTION. Sec. 101. (1) The legislature finds that:

(a) Recycling conserves energy and landfill space, provides jobs and valuable feedstock materials to industry, and promotes health and environmental protection;

(b) Seventy-eight percent of the citizens of the state actively participate in recycling programs and Washington currently has the highest recycling rate in the nation;

(d) Many local governments and private entities cumulatively affect, and are affected by, the market for recycled commodities but have limited jurisdiction and cannot adequately address the problems of market development that are complex, wide-ranging, and regional in nature; and

(e) The private sector has the greatest capacity for creating and expanding markets for recycled commodities, and the development of private markets for recycled commodities is in the public interest.

(2) It is therefore the policy of the state to create a single entity to be known as the center for recycling markets development to develop new, and expand existing, markets for recycled commodities.

NEW SECTION. Sec. 102. There is created the center for recycling markets development within the department of trade and economic development. As used in this chapter, "center" means the center for recycling markets development. The director of the department may choose to operate the center as a unit within the department's business assistance center.

NEW SECTION. Sec. 103. The purpose of the center is to provide or facilitate basic and applied research and development, business assistance, public education, and policy analysis in furthering the development of markets for recycled products. As used in this chapter, market development consists of public and private activities that are used to overcome impediments preventing full use of secondary materials diverted from the waste stream, and that encourage and expand use of those materials and subsequent products.

NEW SECTION. Sec. 104. The center shall:

(1) Provide targeted business assistance to recycling processors and manufacturers, including:

(a) Development of business plans;

(b) Market research and planning information;

(d) Referral and information on market conditions;

(e) Information of new technology and product development;

(2) Negotiate voluntary agreements with manufacturers to increase the use of recycled materials in product development;

(3) Support research and development to stimulate new technologies and products using recycled materials;

(4) Undertake an integrated, comprehensive education effort to promote processing, manufacturing, and purchase of recycled products, including:

(a) Providing information to end users on the availability and benefits of using recycled materials;

(b) Providing information and referral services on recycled material markets;

(d) Participating in projects to demonstrate new market uses or applications for recycled products;

(5) Assisting the departments of ecology and general administration in the development of consistent definitions and standards on recycled content, product performance, and availability; and

(6) Undertaking studies on the unmet capital needs of reprocessing and manufacturing firms using recycled materials.

NEW SECTION. Sec. 105. The center shall place a high priority upon commodities comprising a large proportion of the state's waste stream and for which further development of markets for recycled products are needed. Such commodities include but are not limited to mixed-waste paper, yard waste and other organic waste, plastics, tires, oil, and glass.

NEW SECTION. Sec. 106. In order to carry out its responsibilities under this chapter, the center may:

(1) Receive such gifts, grants, funds, fees, and endowments, in trust or otherwise, for the use and benefit of the purposes of the center. The center may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments;

(2) Initiate, conduct, or contract for studies and searches relating to market development for recyclable materials, including but not limited to applied research, technology transfer, and pilot demonstration projects;

(3) Obtain and disseminate information relating to market development for recyclable materials from other state and local agencies;

(4) Enter into, amend, and terminate contracts with individuals, corporations, or search institutions for the purposes of this chapter;

(5) Provide grants to local governments and nonprofit organizations;

(6) Provide business and marketing assistance to public and private sector entities within the state; and

(7) Evaluate, analyze, and make recommendations on state policies that may affect markets for recyclable materials.

NEW SECTION. Sec. 107. The center shall be administered by a manager appointed by the director of the department of trade and economic development.

NEW SECTION. Sec. 108. The center shall solicit financial contributions and support from manufacturing industries and other private sector sources, foundations, and grants from governmental sources to assist in conducting its activities. It may also use separately appropriated funds of the department of trade and economic development for the center's activities.

NEW SECTION. Sec. 109. The center's activities shall be conducted with the assistance of an advisory committee having members representing the private sector, recycling businesses, local government, and other state agencies. The center shall endeavor to include representatives on the committee having an involvement with the commodities chosen by the center for high priority activities.

NEW SECTION. Sec. 110. Sections 101 through 109 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 111. A new section is added to chapter 43.131 RCW to read as follows:

The center for recycling markets and its powers and duties shall be terminated June 30, 1996.

NEW SECTION. Sec. 112. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1997:

(1) RCW 70.--.--- and section 101, chapter ..., Laws of 1991 (section 101 of this act);

(2) RCW 70.--.--- and section 102, chapter ..., Laws of 1991 (section 102 of this act);

(3) RCW 70.--.--- and section 103, chapter ..., Laws of 1991 (section 103 of this act);

(4) RCW 70.--.--- and section 104, chapter ..., Laws of 1991 (section 104 of this act);

(5) RCW 70.--.--- and section 105, chapter ..., Laws of 1991 (section 105 of this act);

(6) RCW 70.--.--- and section 106, chapter ..., Laws of 1991 (section 106 of this act);

(7) RCW 70.--.--- and section 107, chapter ..., Laws of 1991 (section 107 of this act);

(8) RCW 70.--.--- and section 108, chapter ..., Laws of 1991 (section 108 of this act); and

(9) RCW 70.--.--- and section 109, chapter ..., Laws of 1991 (section 109 of this act).

PART II

PACKAGING

NEW SECTION. Sec. 201. It is the intent of the legislature to use the findings and recommendations of the study in section 203, chapter ___, Laws of 1991 (section 203 of this act) to enact packaging restrictions, taxes upon product packaging, or both, to achieve progressively greater reduction of product packaging and increased recyclability of packaging. It is further the intent to concurrently adopt provisions reserving exclusively to the state the ability to ban the sale of products or product packaging, or the taxing of such products, for purposes relating to solid waste disposal or recycling.

NEW SECTION. Sec. 202. (1) The center for recycling markets development, with the assistance of the department of ecology, shall develop packaging policy recommendations regarding:

(a) Increasing the institution of reusable packaging systems in which a package is used several times for the same or substantially similar purpose;

(b) Reducing the reliance on single-use, disposable packaging;

(d) Reducing the toxicity of product packaging;

(e) Increasing product packaging recycling; and

(f) Developing education strategies to increase public awareness of the contribution of packaging to solid waste problems.

(2) In conducting packaging policy activities, the center may form an advisory committee consisting of industry, public, and government agency representatives.

NEW SECTION. Sec. 203. (1) The center shall conduct a study of the costs of disposal of products and product packaging. The center shall seek the assistance of the department of ecology regarding disposal of products and packaging in this state, and existing levels of recycling of such material. The study shall include recommended target levels for recycling as well as postconsumer recovered material content in such products, and timelines to achieve such target levels.

(2) The center shall make recommendations in the study for methods of encouraging or requiring increased recycling and postconsumer recovered material content in products and product packaging, including proposals for taxation based upon the product or product packaging disposal cost.

(3) The study shall be submitted to the legislative committees on the environment by December 1, 1992.

NEW SECTION. Sec. 204. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Package" means a container providing a means of marketing, protecting, or handling a product and shall include a unit package, an intermediate package, and a shipping container as defined in ASTM D996. "Package" also means and includes unsealed receptacles such as carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping films, bags, and tubs.

(2) "Manufacturer" means a person, firm, or corporation who applies a package to a product for distribution or sale.

(3) "Packaging component" means an individual assembled part of a package such as, but not limited to, any interior or exterior blocking, bracing, cushioning, weatherproofing, exterior strapping, coatings, closures, inks, and labels.

NEW SECTION. Sec. 205. (1) As soon as feasible but not later than two years after the effective date of this section, no package or packaging component may be offered for sale or for promotional purposes by its manufacturer or distributor in the state of Washington, that includes, in the package itself or in any packaging component, inks, dyes, pigments, adhesives, stabilizers, or any other additives, any lead, cadmium, mercury, or hexavalent chromium that has been intentionally introduced as an element during manufacturing or distribution as opposed to the incidental presence of any of these elements.

(2) As soon as feasible but not later than two years after the effective date of this section, no product may be offered for sale or for promotional purposes by its manufacturer or distributor in the state of Washington in a package that includes, in the package itself or in any of its packaging components, inks, dyes, pigments, adhesives, stabilizers, or any other additives, any lead, cadmium, mercury, or hexavalent chromium that has been intentionally introduced as an element during manufacturing or distribution as opposed to the incidental presence of any of these elements.

(3) The sum of the concentration levels of lead, cadmium, mercury, and hexavalent chromium present in any package or packaging component shall not exceed the following:

(a) 600 parts per million by weight effective two years after the effective date of this section;

(b) 250 parts per million by weight effective three years after the effective date of this section; and

NEW SECTION. Sec. 206. All packages and packaging components shall be subject to this chapter except the following:

(1) Those packages or package components with a code indicating date of manufacture that were manufactured prior to the effective date of this section;

(2) Those packages or packaging components that have been purchased by, delivered to, or are possessed by a retailer on or before twenty-four months following the effective date of this section to permit opportunity to clear existing inventory of the proscribed packaging material;

(3) Those packages or packaging components to which lead, cadmium, mercury, or hexavalent chromium have been added in the manufacturing, forming, printing, or distribution process in order to comply with health or safety requirements of federal law or for which there is no feasible alternative; or

(4) Packages and packaging components that would not exceed the maximum contaminant levels set forth in section 205(3) of this act but for the addition of postconsumer materials; and provided that the exemption for this subsection shall expire six years after the effective date of this section.

NEW SECTION. Sec. 207. As soon as feasible but not later than two years after the effective date of this section, a certificate of compliance stating that a package or packaging component is in compliance with the requirements of this chapter shall be developed by its manufacturer, provided, however, where compliance is achieved under the exemption or exemptions provided in section 206 (3) or (4) of this act, the certificate shall state the specific basis upon which the exemption is claimed. The certificate of compliance shall be signed by an authorized official of the manufacturing company. The certificate of compliance shall be kept on file by the manufacturer for as long as the package or packaging component is in use, and for three years from the date of the last sale or distribution by the manufacturer. Certificates of compliance, or copies thereof, shall be furnished to the department of ecology upon request within sixty days. If manufacturers are required under any other state statute to provide a certificate of compliance, one certificate may be developed containing all required information.

If the manufacturer or supplier of the package or packaging component reformulates or creates a new package or packaging component, the manufacturer shall develop an amended or new certificate of compliance for the reformulated or new package or packaging component.

NEW SECTION. Sec. 208. Requests from a member of the public for any certificate of compliance shall be:

(1) Made in writing to the department of ecology;

(2) Made specific as to package or packaging component information requested; and

(3) Responded to by the department of ecology within ninety days.

NEW SECTION. Sec. 209. The department of ecology may suspend the sale of any package for which a manufacturer has failed to respond to a request by the department for a certificate of compliance within the allotted period of time pursuant to section 207 of this act.

NEW SECTION. Sec. 210. The center shall conduct a public education program aimed toward achieving voluntary changes in consumer, retailer, distributor, and manufacturer behavior regarding packaging waste reduction and recycling. The program should be coordinated with education programs administered by the department of ecology in order to avoid duplication. The program may include a variety of media and other strategies, such as in-store displays and signing, manufacturer logos, government awards programs, and participation of trade associations.

NEW SECTION. Sec. 211. The packaging subcommittee of the solid waste advisory committee shall review the effectiveness of this chapter in its third annual report to the legislature. The report shall contain recommendations to add other toxic substances contained in packaging to the list set forth in this chapter, including but not limited to mutagens, carcinogens, and teratogens, in order to further reduce the toxicity of packaging waste, and shall contain a recommendation regarding imposition of penalty for violation of section 205 of this act, and shall contain a recommendation whether to continue the recycling exemption as it is provided for in section 206 of this act.

Sec. 212. RCW 70.95C.120 and 1989 c 431 s 54 are each amended to read as follows:

The office of waste reduction shall develop, in consultation with the superintendent of public instruction, an awards program to ((~~achieve waste reduction and~~)) promote recycling in the public schools, grades kindergarten through high school. The office shall develop guidelines for program development and implementation. Each public school shall implement a ((~~waste reduction and~~)) recycling program conforming to guidelines developed by the office.

For the purpose of granting awards, the office may group schools into not more than three classes, based upon student population, distance to markets for recyclable materials, and other criteria, as deemed appropriate by the office. Except as otherwise provided, five or more awards shall be granted to each of the three classes. Each award shall be a sum of not less than two thousand dollars nor more than five thousand dollars. Awards shall be granted each year to the schools that achieve the greatest levels of ((~~waste reduction and~~)) recycling. ((~~Each~~)) A single award ((~~shall be of a sum~~)) of not less than ten thousand dollars shall be presented to the school having the best recycling program as determined by the office. ((The office shall also develop recommendations for an awards program for waste reduction in the public schools. The office shall submit these recommendations to the appropriate standing committees in the house of representatives and senate on or before November 30, 1989.))

The superintendent of public instruction shall distribute guidelines and other materials developed by the office to implement programs to reduce and recycle waste generated in administrative offices, classrooms, laboratories, cafeterias, and maintenance operations.

NEW SECTION. Sec. 213. Sections 201, 202, and 204 through 210 of this act shall constitute a new chapter in Title 70 RCW.

PART III

PLASTICS

NEW SECTION. Sec. 301. (1) The center for recycling markets development shall target its Washington business location promotional programs toward a goal of successfully siting a major mixed waste plastics recycling facility in the state by 1995. The desired facility is one capable of handling a range of low and high-grade plastics typically found in municipal solid waste. The center shall promote the tax incentives provided by sections 401 through 407 of this act, and the provisions for collection of plastics recyclables in sections 303 through 305 of this act.

(2) The center shall seek to enter a memorandum of agreement with a facility proponent setting forth a proposed date to begin facility operation and describing the facility's requirements for waste plastics, including volume, grade, and other information. Upon execution of such a memorandum, the center shall forward this information and request the department of ecology to institute rule making in accordance with section 302 of this act.

(3) The center shall encourage potential facility proponents to locate within the highly populated areas of the state to facilitate the economical operation of plastics recycling programs provided in section 302 of this act.

NEW SECTION. Sec. 302. (1) Using the criteria and standards of this section, the department of ecology shall consider the adoption of rules requiring certain counties and cities to revise their comprehensive solid waste management plans adopted under RCW 70.95.090. Upon receipt of a request by the center for recycling markets development to institute rule making, the department shall make preliminary determinations regarding the following, based upon information submitted by the center and other sources:

(a) Whether mandatory collection of source-separated plastics recyclables and other recycling programs are necessary for the proposed plastics recycling facility to be economically viable; and

(b) Whether the population density and other factors affecting the generation of solid waste and costs of collection and transportation of source-separated recyclables support plastics recycling programs.

(2) Where the department makes a positive preliminary finding on both elements of subsection (1) of this section, it shall institute proposed rule making pursuant to chapter 34.05 RCW requiring plastics recycling programs to be incorporated into the comprehensive solid waste management programs of such cities and counties covering such portion of the geographic area near the proposed facility as to provide an adequate potential source of supply of waste plastics for the facility. Nothing in this chapter or the department's rules shall require that plastics recyclables collected pursuant to requirements of local comprehensive plans be delivered, sold, or otherwise provided to any particular person or facility.

(3) The department may withdraw the proposed rules where the public comments provide information sufficient for the department to determine that the proposed recycling programs will not be adequate for the proposed recycling facility's needs. The department may also withdraw the proposed rules at any time the center advises it that the proposed facility will not be operational substantially within the timeframes indicated in the memorandum of agreement.

(4) The department's rules may limit required recycling programs to those grades or types of plastics that will be used by the proposed recycling facility.

(5) The rules shall require plastics recycling programs in the designated areas for the lesser period of four years or the life of the plastics recycling facility. Any local government may petition the department to amend or terminate the rules after four years based upon the adverse economic impacts of the recycling programs upon its participating residents.

NEW SECTION. Sec. 303. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 304 and 305 of this act.

(1) "Container," unless otherwise specified, refers to "rigid plastic container" or "plastic bottle" as those terms are defined in this section.

(2) "Distributors" means those persons engaged in the distribution of packaged goods for sale in the state of Washington, including manufacturers, wholesalers, and retailers.

(3) "Label" means a molded, imprinted, or raised symbol on or near the bottom of a plastic container or bottle.

(4) "Person" means an individual, sole proprietor, partnership, association, or other legal entity.

(5) "Plastic" means a material made of polymeric organic compounds and additives that can be shaped by flow.

(6) "Plastic bottle" means a plastic container intended for single use that has a neck that is smaller than the body of the container, accepts a screw-type, snap cap, or other closure and has a capacity of sixteen fluid ounces or more, but less than five gallons.

(7) "Rigid plastic container" means a formed or molded container, other than a bottle, intended for single use, composed predominantly of plastic resin, and having a relatively inflexible finite shape or form with a capacity of eight ounces or more but less than five gallons.

NEW SECTION. Sec. 304. (1) The provisions of this section and any rules adopted under it shall be interpreted to conform with nation-wide plastics industry standards.

(2) On or after January 1, 1992, no person may distribute, sell, or offer for sale in this state a plastic bottle or rigid plastic container unless the container is labeled with a code identifying the appropriate resin type used to produce the structure of the container. The code shall consist of a number placed within three triangulated arrows and letters placed below the triangle of arrows. The triangulated arrows shall be equilateral, formed by three arrows with the apex of each point of the triangle at the midpoint of each arrow, rounded with a short radius. The pointer (arrowhead) of each arrow shall be at the midpoint of each side of the triangle with a short gap separating the pointer from the base of the adjacent arrow. The triangle, formed by the three arrows curved at their midpoints shall depict a clockwise path around the code number. The numbers and letters used shall be as follows:

(a) 1. = PETE (polyethylene terephthalate)

(b) 2. = HDPE (high density polyethylene)

(d) 4. = LDPE (low density polyethylene)

(e) 5. = PP (polypropylene)

(f) 6. = PS (polystyrene)

(g) 7. = OTHER

NEW SECTION. Sec. 305. (1) After being notified that a plastic container does not comply with section 304 of this act, a person who violates section 304 of this act is subject to a civil penalty of fifty dollars for each violation up to a maximum of five hundred dollars and may be enjoined from continuing violations. Each distribution constitutes a separate offense.

(2) Distributors shall have two years from the effective date of this section to clear current inventory, delivered or received and held in their possession as of the effective date of this section. Distributors shall not be subject to subsection (1) of this section for sale of such inventory.

NEW SECTION. Sec. 306. Sections 301 through 305 of this act are each added to chapter 70.95C RCW.

PART IV

FINANCIAL INCENTIVES

NEW SECTION. Sec. 401. Unless a different meaning is plainly

required by the context, the definitions in this section apply throughout this chapter.

(1) "Certificate" means a recycling exemption and credit certificate issued by the department of revenue pursuant to section 405 of this act.

(2) "Department" means the department of revenue.

(3) "Facility" means the plant and equipment for the primary purpose of processing, sorting, or manufacturing of products from solid waste. "Facility" does not include fixed installations, vehicles, or equipment for the primary purpose of the transportation of solid waste or recyclable materials.

(4) "Person" has the meaning provided in RCW 1.16.080.

(5) "Solid waste" means garbage, refuse, sludge, or other materials or articles following consumer purchase or use, and includes materials or articles resulting as an end-product from industrial, commercial, mining, or agricultural operations.

NEW SECTION. Sec. 402. (1) The original acquisition of a facility by the holder of a certificate is exempt from sales tax imposed by chapter 82.08 RCW and use tax imposed by chapter 82.12 RCW if the due date for payment of such taxes is subsequent to the effective date of the certificate. The exemption from this section shall not apply to servicing, maintenance, repairs, and replacement of parts after a facility is complete and placed in operation.

(2) The exemption provided by this section shall be available for taxes otherwise due between the effective date of this section and December 31, 1995.

(3) The total of all exempt taxes allowed under this section shall not exceed five hundred thousand dollars for a taxable year. The department shall implement this limitation by requiring an estimate of the exemption proposed to be claimed in an application for a certification pursuant to section 405 of this act, and denying the issuance of a certificate that would result in exceeding this limitation.

(4) The total exemption that a person may claim in a taxable year under this section shall not exceed fifty thousand dollars. However, where the total value of all exemptions estimated in applications for certifications which are issued do not exceed five hundred thousand dollars for the taxable year, the department may increase the allowable exemptions among the certificates upon a proportional basis up to a total of five hundred thousand dollars. In such circumstances the allowable exemption shall be designated in the certificate.

NEW SECTION. Sec. 403. (1) The person holding a certificate shall be allowed a credit against the taxes pursuant to chapter 82.04 RCW in the amount allowed by this section and subject to the limitations of this section.

(2) The credit shall be ten percent of the purchase price paid during the taxable year for the facility covered by the certificate, but shall not exceed the lesser of the following: (a) Fifty thousand dollars; or (b) fifty percent of the total tax liability of the person under chapter 82.04 RCW.

(3) A tax credit not used for the taxable year in which the purchase price for a facility was paid may be carried over for credit against the tax liability under chapter 82.04 RCW in the five succeeding taxable years until the total credit amount is used.

(4) The credit allowed by this section may be claimed by taxable years beginning January 1, 1991, and ending December 31, 1995, except any carryover allowed by subsection (3) of this section.

(5) The total of credits allowed by this section shall be reduced by the total amount of a federal tax credit actually received by the certificate holder applicable to the facility, and shall be reduced by the amount of a credit claimed under RCW 82.04.435.

(6) The total of all credits allowed by this section shall not exceed five hundred thousand dollars for a taxable year. If the applications received by the department under section 405 of this act in a single taxable year exceed five hundred thousand dollars, the department shall determine the dollar amount certified for credits and the priority between applications for certification pursuant to the criteria provided in section 405 of this act.

(7) Not less than two hundred fifty thousand dollars of the five hundred thousand dollar annual credits limit shall be allocated to credits claimed where the total costs of acquisition for a qualifying facility are one hundred thousand dollars or less.

(8) A credit may not be claimed in a year in which the facility has not operated for a substantial portion of the year.

NEW SECTION. Sec. 404. If subsequent to the issuance of a certificate for a facility, a determination is made to modify or replace such facility, the holder of the certificate may file an application for a new certificate covering such modified or replacement facility in accordance with the procedures set forth in this chapter for original certificates. An application for a new certificate covering such modified or replacement facility must be filed with the department not later than November 30, 1995. After the issuance by the department of a new certificate, all subsequent tax exemptions and credits for the modified or replacement facility shall be based thereon.

NEW SECTION. Sec. 405. (1) For the purpose of implementing the tax exemptions and credits provided by sections 402 and 403 of this act, the department shall establish a certification system pursuant to this section.

(2) An application for a certificate shall be filed with the department not later than November 30, 1995, and in such manner and in such form as may be prescribed by the department by rule. The application shall contain estimated or actual costs, plans, and specifications of the facility, a list describing and showing the cost of all equipment acquired or to be acquired by the applicant as an integral part of the facility, a time schedule for the acquisition and installation or attachment of the facility, and such other information as the department deems necessary to apply the limitations upon tax exemptions and credits in sections 402 and 403 of this act.

(3) A certificate shall not be issued unless first approved by the department of ecology, which shall be given when the department of ecology determines that the facility is designed and is or will be operated primarily for the purpose of processing, sorting, or manufacturing of products from solid waste. The department of ecology shall notify the department of its findings within thirty days of the date on which the application was submitted to it for approval.

(4) The department shall issue a certificate when the department of ecology provides approval under subsection (3) of this section and the department finds that granting of the certificate will not exceed a limitation upon the individual exemption or credit to be claimed or upon the total exemptions or credits to be granted under sections 402 and 403 of this act. Where there are pending applications at any time which cumulatively would exceed a limitation upon the total exemptions or credits allowable in a taxable year, the department shall determine the certificates to issue from among the applications upon considering the following criteria: (a) The time the application was filed, providing greater consideration to earlier filed applications; (b) the origin of the solid waste to be used in the facility, providing greater consideration to solid waste generated in Washington; (c) the importance of the tax exemption or credit to the successful acquisition and operation of the facility; and (d) the impact of the facility upon solid waste management and the supply of recycled content products. In making this determination the department shall consult with and obtain the comments of the department of ecology.

NEW SECTION. Sec. 406. (1) The department may issue a certificate under the procedures and criteria of section 405 of this act for the acquisition of a facility for the primary purpose of the recycling of plastics. A qualified facility under this section must be for the primary purpose of producing plastic products for consumer use or modification of solid waste containing plastics to produce a feedstock for plastics manufacturing processes.

(2) The holder of a certificate under this section shall be eligible for the exemption under section 402 of this act and the credit under section 403 of this act. The limitation upon the total of exemptions and credits under such sections shall not be applicable to a certificate or certificates issued under this section.

(3) An application under this section must be made before November 30, 1993. The application shall include the information required under section 406 of this act and additionally shall include a description of the source of plastics solid waste to be used in the facility. Where more than one application is pending, the department, in consultation with the department of ecology, in determining whether to issue a certificate, shall determine whether the described source of plastics solid waste for the proposed facility will be adequate for successful operation of the facility.

(4) A certificate shall not be issued under this section if the total of exemptions or credits under this section would exceed the following limitations:

(a) One hundred thousand dollars in total exemptions under section 402 of this act; and

(b) One hundred thousand dollars in total credits under section 403 of this act.

NEW SECTION. Sec. 407. (1) The department may issue an order revoking a certificate issued under section 405 of this act where it determines that:

(a) The certification was obtained by fraud or misrepresentation; or

(b) The holder of the certificate has failed substantially to operate the facility primarily for the purpose of processing, sorting, or manufacturing of products from solid waste.

(2) The certificate holder may appeal the revocation of a certificate as an adjudicatory proceeding pursuant to chapter 34.05 RCW.

(3) Upon revocation of a certificate under subsection (1)(a) of this section, all prior tax exemptions or credits provided by virtue of the certificate shall be forfeited and the department shall proceed to collect those taxes not paid under sections 402 and 403 of this act, including interest and penalties prescribed by law. No statute of limitations shall operate in the event of fraud or misrepresentation.

(4) Upon revocation of a certificate under subsection (1)(b) of this section, the certificate holder shall be denied any further tax exemptions or credits under sections 402 and 403 of this act, from and after the date that the order of revocation becomes final.

NEW SECTION. Sec. 408. A new section is added to chapter 43.168 RCW to read as follows:

To the extent permitted by federal law, the committee shall place a priority for the provision of grants or loans to local governments for projects meeting the criteria of this chapter, and that additionally assist or provide directly for the recycling of solid waste. This section shall not apply to projects or portions of projects providing for programs, facilities, or systems for the collection of solid waste.

Sec. 409. RCW 43.155.020 and 1985 c 446 s 8 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section shall apply throughout this chapter.

(1) "Board" means the public works board created in RCW 43.155.030.

(2) "Department" means the department of community development.

(3) "Financing guarantees" means the pledge of money in the public works assistance account, or money to be received by the public works assistance account, to the repayment of all or a portion of the principal of or interest on obligations issued by local governments to finance public works projects.

(4) "Local governments" means cities, towns, counties, special purpose districts, and any other municipal corporations or quasi-municipal corporations in the state excluding school districts and port districts.

(5) "Public works project" means a project of a local government for the planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of streets and roads, bridges, water systems, ((or)) storm and sanitary sewage systems, and facilities for sorting, processing, or remanufacturing of recyclable materials, including the sale or disposition of recyclable materials to recycling businesses.

(6) "Technical assistance" means training and other services provided to local governments to: (a) Help such local governments plan, apply, and qualify for loans and financing guarantees from the board, and (b) help local governments improve their ability to plan for, finance, acquire, construct, repair, replace, rehabilitate, and maintain public facilities.

NEW SECTION. Sec. 410. The department of trade and economic development shall conduct a study of state tax, regulatory, and other laws that provide an unwarranted preference for the use of virgin materials over recyclable materials in product manufacturing. The department shall submit the report, including recommendations for statutory changes, to the governor and the legislature no later than December 1, 1991.

NEW SECTION. Sec. 411. RCW 43.160.077 and 1989 c 431 s 63 are each repealed.

NEW SECTION. Sec. 412. Sections 401 through 407 of this act shall constitute a new chapter in Title 82 RCW.

PART V

FUNDING

NEW SECTION. Sec. 501. There is created the recycling markets development account in the state treasury. All assessments and tax revenues collected or received pursuant to sections 504 and 508 of this act shall be used for the purposes of chapter 70.___ RCW (sections 101 through 109 of this act) and other recycling markets development activities. All funds in the account shall be subject to appropriation. All interest in the account shall accrue to the general fund.

Sec. 502. RCW 70.93.020 and 1979 c 94 s 2 are each amended to read as follows:

The purpose of this chapter is to accomplish litter control and stimulate private recycling programs throughout this state by delegating to the department of ecology the authority to: (1) Conduct a permanent and continuous program to control and remove litter from this state to the maximum practical extent possible; (2) recover and recycle waste materials related to litter and littering; (3) foster private recycling and markets for recyclable materials; and (4) increase public awareness of the need for recycling and litter control. It is further the intent and purpose of this chapter to create jobs for employment of youth in litter cleanup and related activities and to stimulate and encourage small, private recycling centers. This program shall include the compatible goal of recovery of recyclable materials to conserve energy and natural resources wherever practicable. Every other department of state government and all local governmental units and agencies of this state shall cooperate with the department of ecology in the administration and enforcement of this chapter. The intent of this chapter is to add to and to coordinate existing recycling and litter control and removal efforts and not terminate or supplant such efforts.

Sec. 503. RCW 70.93.030 and 1979 c 94 s 3 are each amended to read as follows:

As used in this chapter unless the context indicates otherwise:

(1) "Department" means the department of ecology;

(2) "Director" means the director of the department of ecology;

(3) "Disposable package or container" means all packages or containers defined as such by rules and regulations adopted by the department of ecology;

(4) "Litter" means all waste material including but not limited to disposable packages or containers thrown or deposited as herein prohibited but not including the wastes of the primary processes of mining, logging, sawmilling, farming, or manufacturing;

(5) "Litter bag" means a bag, sack, or other container made of any material which is large enough to serve as a receptacle for litter inside the vehicle or watercraft of any person. It is not necessarily limited to the state approved litter bag but must be similar in size and capacity;

(6) "Litter receptacle" means those containers adopted by the department of ecology and which may be standardized as to size, shape, capacity, and color and which shall bear the state anti-litter symbol, as well as any other receptacles suitable for the depositing of litter;

(7) "Person" means any political subdivision, government agency, municipality, industry, public or private corporation, copartnership, association, firm, individual, or other entity whatsoever;

(8) "Recycling" means ((~~the process of separating, cleansing, treating, and reconstituting used or discarded litter-related materials for the purpose of recovering and reusing the resources contained therein~~)) transforming or remanufacturing waste materials into usable or marketable materials for use other than landfill disposal or incineration;

(9) "Recycling center" means a central collection point for recyclable materials;

(10) "Vehicle" includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks;

(11) "Watercraft" means any boat, ship, vessel, barge, or other floating craft;

(12) "Public place" means any area that is used or held out for use by the public whether owned or operated by public or private interests.

NEW SECTION. Sec. 504. A new section is added to chapter 70.93 RCW to read as follows:

In addition to the assessment imposed in RCW 70.93.120, there is hereby levied and there shall be collected by the department of revenue from every person engaging within this state in business as a manufacturer and/or making sales at wholesale and/or making sales at retail, an annual litter assessment equal to the value of products manufactured and sold within this state, including by-products, multiplied by two and one-half thousandths of one percent in the case of manufacturers, and equal to the gross proceeds of the sales of the business within this state multiplied by two and one-half thousandths of one percent in the case of sales at wholesale and/or at retail.

Sec. 505. RCW 70.93.130 and 1971 ex.s. c 307 s 13 are each amended to read as follows:

Because it is the express purpose of this chapter to accomplish effective litter control within the state of Washington and because it is a further purpose of this chapter to allocate a portion of the cost of administering it to those industries whose products including the packages, wrappings, and containers thereof, are reasonably related to the litter problem, in arriving at the amount upon which the assessment under RCW 70.93.120 is to be calculated only the value of products or the gross proceeds of sales of products falling into the following categories shall be included:

(1) Food for human or pet consumption.

(2) Groceries.

(3) Cigarettes and tobacco products.

(4) Soft drinks and carbonated waters.

(5) Beer and other malt beverages.

(6) Wine.

(7) Newspapers and magazines.

(8) Household paper and paper products.

(9) Glass containers.

(10) Metal containers.

(11) Plastic or fiber containers made of synthetic material.

(12) Cleaning agents and toiletries.

(13) Nondrug drugstore sundry products.

Sec. 506. RCW 70.93.150 and 1971 ex.s. c 307 s 15 are each amended to read as follows:

"Sold within this state" or "sales of the business within this state" as used in RCW 70.93.120 and in section 504 of this 1991 act shall mean all sales of retailers engaged in business within this state and all sales of products for use or consumption within this state in the case of manufacturers and wholesalers.

Sec. 507. RCW 70.93.180 and 1985 c 57 s 68 are each amended to read as follows:

There is hereby created an account within the state treasury to be known as the "litter control account". All assessments, fines, bail forfeitures, and other funds collected or received pursuant to ((~~this chapter~~)) RCW 70.93.120 and 70.93.230 shall be deposited in the litter control account and used for the administration and implementation of this chapter except as required to be otherwise distributed under RCW 70.93.070. All earnings of investments of balances in the litter control account shall be credited to the general fund.

NEW SECTION. Sec. 508. A new section is added to chapter 82.18 RCW to read as follows:

(1) There is imposed on each person using the services of a solid waste collection business a solid waste collection tax of twenty-five one-hundredths of one percent of the consideration charged for the services. This tax shall be applied only to a service charge for actual solid waste collection services that are provided. For residential collection service only, the tax shall apply to the lesser of the consideration charged for the services or:

(a) For customers with less than two-can service, the first eight dollars of the monthly charge for the services;

(b) For customers with two-can service or more, the first twelve dollars of the monthly charge for the services.

(2) Money collected under this section shall be held in trust until paid to the state. Money received by the state shall be deposited in the recycling markets development account created by section 501 of this act.

(3) This section expires July 1, 1997.

NEW SECTION. Sec. 509. Part headings as used in this act constitute no part of the law.

NEW SECTION. Sec. 510. Section 508 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1991.

NEW SECTION. Sec. 511. The sum of ............ dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the recycling markets development account to the department of trade and economic development for the purposes of this act.

NEW SECTION. Sec. 512. The sum of ............ dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the recycling markets development account to the department of ecology for the purposes of this act.