HOUSE BILL REPORT

                  SB 6467

             As Reported By House Committee On:

                    Agriculture & Ecology

Title:  An act relating to pollution source fees.

Brief Description:  Concerning the collection of pollution program fees.

Sponsors:  Senators Spanel, Swecker, Sutherland, Morton, Bauer, A. Anderson, Fraser, Roach and Haugen.

Brief History:

  Committee Activity:

Agriculture & Ecology:  2/14/96, 2/15/96 [DP].

HOUSE COMMITTEE ON AGRICULTURE & ECOLOGY

Majority Report:  Do pass.  Signed by 14 members:  Representatives Chandler, Chairman; Koster, Vice Chairman; Chappell, Ranking Minority Member; Linville, Assistant Ranking Minority Member; Boldt; Clements; R. Fisher; Johnson; Mastin; Ogden; Regala; Robertson; Rust and Schoesler.

Staff:  Rick Anderson (786-7114).

Background:  The air operating permit account was created in 1991 to track revenues and expenditures from fees paid by "major facilities."   Federal and state law requires facilities  capable of emitting specified amounts of one or more pollutants per year to have an air operating permit and to pay an annual fee.  Facilities requiring an operating permit are known as major facilities.

The air pollution control account is the general account used for all air-related fees except those paid by major facilities. 

New source reviews are required when a new facility is built or when a modification to a facility results in increased emissions.  RACT review is required periodically to determine the appropriate emission limits for a particular facility or group of similar facilities.  RACT stands for Reasonably Available Control Technology and is an emission limit that takes into account economic and technological factors. 

There are two fee-based activities (new source reviews and RACT determinations) which can be paid into either the air operating account or the air pollution control account, depending on who pays the fee.  Currently, new source review and RACT  fees paid by the operator of a major facility go into the air operating permit account.   New source review and RACT fees paid by anyone else go into the air pollution control account.

Summary of Bill:  All new source review fees and RACT determination fees collected by the Department of Ecology are deposited into the air pollution control account.  

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The bill will allow affected businesses to monitor how the department spends the moneys generated by air operating permit fees.  The bill does not alter the department's authority to collect fees.

Testimony Against:  None.

Testified:  Ken Johnson, Association of Washington Businesses; and Stu Clark, Department of Ecology (in favor).