BP BHEAD INT S

AN ACT Relating to investing in the creation of jobs to restore and enhance Washington's estuaries, waterways, and watersheds; amending RCW 82.16.020, 82.44.020, 82.44.110, 82.50.405, 70.94.015, 70.146.070, 43.131.369, and 43.131.370; adding a new section to chapter 82.36 RCW; adding a new section to chapter 70.118 RCW; adding a new chapter to Title 43 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS. (1) The legislature finds that the economy of Washington state depends on the health and sustainable management and development of its natural resources. These resources include the waters and associated habitats of Puget Sound, which has been designated an estuary of national significance under the federal clean water act. The resources of Washington's estuaries, waterways, and watersheds provide a livelihood for thousands of citizens of Washington state and millions of dollars of income and tax revenues every year from fisheries, shellfisheries, recreation, tourism, and other water-dependent industries.

(2) The legislature further finds that the livelihoods and revenues produced by Puget Sound and Washington's other estuaries, waterways, and watersheds are threatened by continuing water quality and habitat degradation and that immediate investments in clean water infrastructure and habitat restoration and enhancement are required to prevent the burdening of future generations with cleanup costs, poorly functioning ecosystems, and the collapse of economically important industries that rely on a healthy environment.

(3) The Puget Sound comprehensive conservation and management plan was adopted by the Puget Sound water quality authority in 1986, by the federal environmental protection agency in 1991, and serves as a national model for the watershed-based control of pollution and reversal of habitat destruction. Many agencies of the state and local governments have worked to implement the Puget Sound plan, but full, effective, coordinated, timely, and cost-efficient implementation of and compliance with this plan have been impeded by inadequate financial resources. In particular, an insufficiency in financial incentives for local governments has resulted in investments in clean water too low to ensure the long-term economic and environmental health of Puget Sound, especially in economically disadvantaged communities in the Puget Sound region.

NEW SECTION. Sec. 2. PURPOSE AND INTENT. (1) It is the intent of this chapter to provide adequate financial resources to local governments and other entities to achieve full implementation of and compliance with the Puget Sound plan and to keep and create environmentally sound, high wage, and stable employment in Washington state and in the Puget Sound region.

(2) It is the purpose of this chapter to:

(a) Enable the accomplishment of clean water and habitat restoration projects that will produce measurable improvements in water and habitat quality, prevent further degradation of water and habitat quality, and provide economic stability.

(b) Facilitate the coordination and consistency of state and local water and habitat protection and enhancement programs in the Puget Sound basin.

(d) Provide immediate funding to create jobs in communities that are economically stressed due to restructuring of natural resource-based industries.

NEW SECTION. Sec. 3. PUGET SOUND RESTORATION ACCOUNT. (1) The Puget Sound restoration account is hereby established in the state treasury. The Puget Sound water quality authority shall allocate funds deposited in the Puget Sound restoration account to make loans, grants, and payments for Puget Sound restoration projects approved by the authority and only in a manner consistent with this chapter and with the Puget Sound management plan. Money in this fund is not subject to legislative appropriation, except as specified in section 8 of this act. Federal, state, local, or tribal entities, and private nonprofit organizations are eligible for funds under this chapter. No more than three percent of a total project cost may be spent by the grant or loan administrator on administrative costs.

(2) The Puget Sound restoration account shall consist of tax receipts as provided in RCW 82.16.020 and sections 5 and 6 of this act, principal and interest from the repayment of loans granted under this chapter, investment earnings on money in the account, federal and other money received by the state for deposit in the account, and other money appropriated to the account by the legislature.

(3) At least five percent of the annual revenues to the Puget Sound restoration account shall be expended by the Washington conservation corps to employ high-risk youth on projects consistent with this chapter and to fund administrative support services required by the senior environmental corps.

(4) At least five percent of the account shall be grants and loans to nonprofit nongovernmental organizations to fund or finance projects, including loans to small businesses for investments in pollution prevention activities and equipment, that are consistent with the provisions of this section and section 7(1) of this act.

(5) No more than three percent of the annual revenues to the Puget Sound restoration account shall be expended for administrative purposes by the Puget Sound water quality authority.

(6) Any one project may not be allocated more than five percent of the total fund account in a given year.

Sec. 4. RCW 82.16.020 and 1989 c 302 s 204 are each amended to read as follows:

(1) There is levied and there shall be collected from every person a tax for the act or privilege of engaging within this state in any one or more of the businesses herein mentioned. The tax shall be equal to the gross income of the business, multiplied by the rate set out after the business, as follows:

(a) Railroad, express, railroad car, sewerage collection, and telegraph businesses: Three and six-tenths percent;

(b) Light and power business: Three and sixty-two one-hundredths percent;

(d) Urban transportation business: Six-tenths of one percent;

(e) Vessels under sixty-five feet in length, except tugboats, operating upon the waters within the state: Six-tenths of one percent;

(f) Motor transportation and tugboat businesses, and all public service businesses other than ones mentioned above: One and eight-tenths of one percent;

(g) Water distribution business: Four and seven-tenths percent.

(2) In addition to the tax levied in subsection (1) of this section, a surcharge on sewerage collection and a tax on storm and surface water drainage control of fifteen and one-tenth percent shall be levied annually on gross income. Fifty percent of the revenue from this surcharge shall be deposited in the Puget Sound restoration account and fifty percent shall be deposited in the water quality account created in chapter 70.146 RCW.

(3) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.

((~~(3)~~)) (4) Twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses shall be deposited in the public works assistance account created in RCW 43.155.050.

NEW SECTION. Sec. 5. A new section is added to chapter 82.36 RCW to read as follows:

TAX IMPOSED‑-RATE TO BE COMPUTED‑-ALLOCATION OF PROCEEDS. Every marine distributor shall pay, in addition to other taxes provided by law, an excise tax to the director at a rate of $0.05 per gallon for each gallon of motor vehicle fuel for marine use sold or distributed in the state as well as on each gallon upon which he or she has assumed liability for payment of the tax under the provisions of RCW 82.36.100.

Seventy-five percent of the proceeds of the motor vehicle fuel for marine use excise tax shall be deposited into the Puget Sound restoration account, with the remainder deposited in the water quality account created by chapter 70.146 RCW.

NEW SECTION. Sec. 6. MOTOR VEHICLE MANUFACTURER FEE. (1) Not later than thirty days after June 30 each year, the department of revenue shall send notice to each motor vehicle manufacturer having made delivery of motor vehicles for sale in Washington state the previous fiscal year that 0.37 percent of the total value of said manufacturer's sales in Washington state are due and payable to the state of Washington.

(2) Fifty percent of the receipts from the motor vehicle manufacturer fee shall be deposited in the Puget Sound restoration account. The remaining money shall be deposited in the water quality account created by chapter 70.146 RCW.

(3) Seven-tenths of one percent of the allocation to the water quality account under subsection (1) of this section shall be made available through grants by the department of ecology to local governments to implement approved plans for the collection and proper disposal of used oil. Grants shall be made to local governments on a per capita basis and shall pay for the cost of disposal of contaminated used oil. Payment to local governments shall be made within thirty days of receipt of a one-page form that shall be developed by the department.

NEW SECTION. Sec. 7. GRANTS OR LOANS FOR CLEAN WATER AND RESTORATION PROJECTS‑-CRITERIA. (1) In making grants, loans, or contracts for projects funded by the Puget Sound restoration account, the Puget Sound water quality authority shall employ the following criteria, among others the authority may deem appropriate:

(a) The project would produce measurable improvements in water and/or habitat quality in the Puget Sound basin;

(b) Project design is complete and cost-efficient;

(c) The project would assist counties, cities, tribes, conservation districts, and other local governments to implement source control practices and technologies identified in the national pollutant discharge elimination system (NPDES) storm water permits to prevent sediment and water quality contamination and habitat destruction through storm water runoff, including combined sewer overflows;

(d) The project would create high wage employment, especially for displaced workers and high-risk youth and especially in economically disadvantaged communities;

(e) The project contract can be administered from the community the project serves;

(f) The location of the project contributes to the need to achieve geographic equity among the jurisdictions receiving funds from the account; or

(g) The project will further the implementation of a septic maintenance district or utility, or will implement a septic system inspection program.

(2) The authority shall adopt an emergency rule no later than six months from the effective date of this act for early action watershed restoration projects that are consistent with the Puget Sound plan and that meet the following project criteria:

(a) Projects that employ dislocated timber workers and unemployed urban workers in high unemployment areas;

(b) Projects in the community and technical college system that train dislocated timber workers, urban workers, and others to carry out stream rehabilitation, watershed restoration, and other environmental enhancement and monitoring projects;

(c) Projects that implement adopted and approved watershed action plans developed pursuant to Puget Sound water quality authority rules adopted for local planning and management of nonpoint source pollution;

(d) Conservation district projects that provide water quality and habitat improvements;

(e) Indian tribe projects that provide water quality and habitat improvements; or

(f) Projects that implement actions approved by a shellfish protection district under chapter 100, Laws of 1992.

NEW SECTION. Sec. 8. A new section is added to chapter 70.118 RCW to read as follows:

(1) There is imposed a fee of ten dollars upon the new construction, alteration, repair, or replacement of an on-site sewage system. The fee shall be paid to the local health jurisdiction or to the department of health at the time of submission of application for approval of the construction, alteration, repair, or replacement. The fees shall be remitted quarterly by the local health jurisdictions and the department of health to the state treasurer, who shall deposit fifty percent to the water quality account and fifty percent to the Puget Sound restoration account created by section 3 of this act.

(2) There is imposed on each person using the services of an on-site sewage system pumping service a tax of one percent of the consideration charged for the services. The tax shall be collected by the person providing the pumping service and shall be remitted quarterly to the state treasurer. The treasurer shall deposit fifty percent of moneys received to the water quality account and fifty percent to the Puget Sound restoration account created by section 3 of this act.

(3) As used in this section, "on-site sewage system" means any system of piping, treatment devices, other facilities that convey, store, treat, or dispose of sewage on the property where it originates or on adjacent nearby property under the control of the user where the system is not connected to a public sewer system.

Sec. 9. RCW 82.44.020 and 1991 c 199 s 220 are each amended to read as follows:

(1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses. The annual amount of such excise tax shall be two percent of the value of such vehicle.

(2) An additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the value of such vehicle.

(3) Effective with October ((~~1992~~)) 1993 motor vehicle registration expirations, a clean air and water excise tax is imposed in addition to any other tax imposed by this section for the privilege of using in the state any motor vehicle as defined in RCW 82.44.010, except that farm vehicles as defined in RCW 46.04.181 shall not be subject to the tax imposed by this subsection. The annual amount of the additional excise tax shall be ((~~two~~)) four dollars ((~~and twenty-five cents. Effective with July 1994 motor vehicle registration expirations, the annual amount of additional excise tax shall be two dollars~~)).

(4) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

(5) Washington residents, as defined in RCW 46.16.028, who license motor vehicles in another state or foreign country and avoid Washington motor vehicle excise taxes are liable for such unpaid excise taxes. The department of revenue may assess and collect the unpaid excise taxes under chapter 82.32 RCW, including the penalties and interest provided therein.

Sec. 10. RCW 82.44.110 and 1991 c 199 s 221 are each amended to read as follows:

The county auditor shall regularly, when remitting license fee receipts, pay over and account to the director of licensing for the excise taxes collected under the provisions of this chapter. The director shall forthwith transmit the excise taxes to the state treasurer.

(1) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(1) as follows:

(a) 1.60 percent into the motor vehicle fund to defray administrative and other expenses incurred by the department in the collection of the excise tax.

(b) 8.15 percent into the Puget Sound capital construction account in the motor vehicle fund.

(d) 8.83 percent into the general fund to be distributed under RCW 82.44.155.

(e) 4.75 percent into the municipal sales and use tax equalization account in the general fund created in RCW 82.14.210.

(f) 1.60 percent into the county sales and use tax equalization account in the general fund created in RCW 82.14.200.

(g) 62.6440 percent into the general fund through June 30, 1993, 57.6440 percent into the general fund beginning July 1, 1993, and 66 percent into the general fund beginning January 1, 1994.

(h) 5 percent into the transportation fund created in RCW 82.44.180 beginning July 1, 1993.

(i) 5.9686 percent into the county criminal justice assistance account created in RCW 82.14.310 through December 31, 1993.

(j) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.320 through December 31, 1993.

(k) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.330 through December 31, 1993.

(2) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(2) into the transportation fund.

(3) The state treasurer shall deposit the excise tax imposed by RCW 82.44.020(3) as follows: (a) Twenty-five percent shall be deposited to the water quality account; (b) twenty-five percent shall be deposited in the Puget Sound restoration account created by section 3 of this act; and (c) fifty percent shall be deposited into the air pollution control account created by RCW 70.94.015.

Sec. 11. RCW 82.50.405 and 1991 c 199 s 226 are each amended to read as follows:

Effective with October ((~~1992~~)) 1993 motor vehicle registration expirations, an additional annual clean air and water excise tax of ((~~two~~)) four dollars ((~~and twenty-five cents~~)) is imposed on the owner of any travel trailer or camper for the privilege of using such travel trailer or camper in this state. ((~~Effective with July 1994 motor vehicle registration expirations, the annual amount of additional excise tax shall be two dollars.~~)) The excise tax hereby imposed shall be due and payable to the department of licensing or its agents at the time of registration of a travel trailer or camper. Whenever an application is made to the department of licensing or its agents for a license for a travel trailer or camper there shall be collected, in addition to the amount of the license fee or renewal license fee, the amount of the excise tax imposed by this chapter, and no license or license plates for a travel trailer or camper may be issued unless such tax is paid in full. No additional tax shall be imposed under this chapter upon any travel trailer or camper upon the transfer of ownership thereof, if the tax imposed by this chapter with respect to such travel trailer or camper has already been paid for the registration year or fractional part thereof in which such transfer occurs. Receipts from the tax levied in this section shall be deposited as follows: (1) Twenty-five percent shall be deposited to the water quality account; (2) twenty-five percent shall be deposited in the Puget Sound restoration account created by section 3 of this act; and (3) fifty percent shall be deposited in the air pollution control account created by RCW 70.94.015.

Sec. 12. RCW 70.94.015 and 1991 c 199 s 228 are each amended to read as follows:

(1) The air pollution control account is established in the state treasury. All receipts from RCW 70.94.650((,)) and 70.94.660((~~, 82.44.020(3), and 82.50.405~~)) shall be deposited into the account. Fifty percent of the receipts from RCW 82.44.020(3) and 82.50.405 shall be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only to develop and implement the provisions of ((~~this act~~)) chapter 199, Laws of 1991 and chapters 70.94 and 70.120 RCW.

(2) The amounts collected and allocated in accordance with this section shall be expended upon appropriation except as otherwise provided in this section and in accordance with the following limitations:

Portions of moneys received by the department of ecology from the air pollution control account shall be distributed by the department to local authorities based on:

(a) The level and extent of air quality problems within such authority's jurisdiction;

(b) The costs associated with implementing air pollution regulatory programs by such authority; and

(c) The amount of funding available to such authority from other sources, whether state, federal, or local, that could be used to implement such programs.

(3) The air operating permit account is created in the custody of the state treasurer. All receipts paid to the department of revenue under RCW 70.94.161 shall be deposited into the account. Expenditures from the account may be used only for the direct and indirect costs of implementing the air operating permit program under RCW 70.94.161. Only the director of the department of ecology or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but no appropriation is required for such expenditures.

NEW SECTION. Sec. 13. DETERMINATION OF TAX RECEIPTS IN RESTORATION ACCOUNT‑-TRANSFER OF SUFFICIENT MONEYS FROM GENERAL REVENUES. (1) Within thirty days after June 30, 1994, and within thirty days after each succeeding fiscal year thereafter, the state treasurer shall determine the tax receipts deposited into the Puget Sound restoration account for the preceding fiscal year. If the tax receipts deposited into the account each fiscal year are less than twenty million dollars, the state treasurer shall transfer sufficient moneys from general state revenues into the restoration account to bring the total receipts in each fiscal year up to twenty million dollars. The account may exceed twenty million dollars in any fiscal year.

(2) The authority shall present a progress report each biennium on the use of the moneys from the account to the chair of the committee on ways and means of the senate and the chair of the fiscal committees of the house of representatives, including one copy to the staff of each of the committees.

NEW SECTION. Sec. 14. COMPLIANCE WITH PLAN‑-CONSISTENCY AND COORDINATION. (1) State agencies shall implement applicable portions of the Puget Sound comprehensive conservation and management plan. State agencies are authorized to adopt rules for this purpose. The rules may include guidelines applicable to local governments with responsibilities under the plan.

(2) State agencies and local governments are authorized to adopt any rule, ordinance, or code to ensure implementation of and compliance with the Puget Sound comprehensive conservation and management plan.

(3) State agencies and local governments shall ensure that policy, regulatory, and other decisions made under their existing authorities are consistent with and meet the requirements of the Puget Sound comprehensive conservation and management plan and programs developed under the plan.

(4) State agencies and local governments shall report progress or failure to implement applicable portions of the plan annually to the Puget Sound water quality authority, which shall forward the reports to the legislature in an annual state of the Sound report, including recommendations to enforce compliance.

Sec. 15. RCW 70.146.070 and 1991 sp.s. c 32 s 24 are each amended to read as follows:

When making grants or loans for water pollution control facilities, the department shall consider the following:

(1) The protection of water quality and public health;

(2) The cost to residential ratepayers if they had to finance water pollution control facilities without state assistance;

(3) Actions required under federal and state permits and compliance orders;

(4) The level of local fiscal effort by residential ratepayers since 1972 in financing water pollution control facilities;

(5) The extent to which the applicant county or city, or if the applicant is another public body, the extent to which the county or city in which the applicant public body is located, has established programs to mitigate nonpoint pollution of the surface or subterranean water sought to be protected by the water pollution control facility named in the application for state assistance; ((~~and~~))

(6) The recommendations of the Puget Sound water quality authority and any other board, council, commission, or group established by the legislature or a state agency to study water pollution control issues in the state; and

(7) The recommendations of the Puget Sound water quality authority regarding grant and loan awards for projects that directly implement the Puget Sound plan must be followed by the department.

A county, city, or town that is required or chooses to plan under RCW 36.70A.040 may not receive a grant or loan for water pollution control facilities unless it has adopted a comprehensive plan in conformance with the requirements of chapter 36.70A RCW, after it is required that the comprehensive plan be adopted, or unless it has adopted development regulations in conformance with the requirements of chapter 36.70A RCW, after it is required that development regulations be adopted.

Sec. 16. RCW 43.131.369 and 1990 c 115 s 11 are each amended to read as follows:

The Puget Sound water quality authority and its powers and duties shall be terminated on June 30, ((~~1995~~)) 1999, as provided in RCW 43.131.370. On or before June 30, 1998, the legislative budget committee shall prepare a report to the legislature on the means for future implementation of the Puget Sound plan and administration of the Puget Sound restoration account.

Sec. 17. RCW 43.131.370 and 1990 c 115 s 12 are each amended to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((~~1996~~)) 2000:

(1) Section 1, chapter 451, Laws of 1985 and RCW 90.70.001;

(2) Section 2, chapter 451, Laws of 1985 and RCW 90.70.005;

(3) Section 3, chapter 451, Laws of 1985, section 2, chapter 115, Laws of 1990 and RCW 90.70.011;

(4) Section 5, chapter 451, Laws of 1985 and RCW 90.70.025;

(5) Section 6, chapter 451, Laws of 1985 and RCW 90.70.035;

(6) Section 7, chapter 451, Laws of 1985, section 72, chapter 36, Laws of 1988, section 3, chapter 115, Laws of 1990 and RCW 90.70.045;

(7) Section 4, chapter 451, Laws of 1985, section 4, chapter 115, Laws of 1990 and RCW 90.70.055;

(8) Section 8, chapter 451, Laws of 1985, section 31, chapter 11, Laws of 1989, section 5, chapter 115, Laws of 1990 and RCW 90.70.060;

(9) Section 9, chapter 451, Laws of 1985, section 6, chapter 115, Laws of 1990 and RCW 90.70.070;

(10) Section 10, chapter 451, Laws of 1985, section 7, chapter 115, Laws of 1990 and RCW 90.70.080; and

(11) Section 14, chapter 451, Laws of 1985 and RCW 90.70.901.

NEW SECTION. Sec. 18. Sections 1 through 3, 6, 7, 13, and 14 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 19. This act shall be known as the environmental restoration jobs act of 1993.