FINAL BILL REPORT

                 ESHB 2657

                         C 168 L 96

                     Synopsis as Enacted

Brief Description:  Redefining the term "public works project."

Sponsors:  By House Committee on Capital Budget (originally sponsored by Representatives Silver and Costa).

House Committee on Capital Budget

Senate Committee on Government Operations

Background:  The public works assistance account, commonly known as the public works trust fund, was created by the Legislature in 1985 as a revolving loan program to assist local governments and special purpose districts with infrastructure projects.  The Public Works Board, within the Department of Community, Trade and Economic Development, is authorized to make low-interest or interest-free loans from the account to finance the repair, replacement, or improvement of the following public works systems:  bridges, roads, water systems, and sanitary and storm sewer projects. 

The Rural Natural Resources Program (RNRP) within the Public Works Trust fund provides loans to non-metropolitan counties and non-urbanized areas experiencing job losses in the lumber, wood products, and commercial salmon fishing industries, and having unemployment rates 20 percent or more above the state average.  Loans under the RNRP may be used for public works projects that support new or expanded public works facilities and stimulate economic growth or diversification.  In contrast, the regular Public Works Trust Fund program cannot be used for growth-related projects.  Loan repayments under the RNRP may be deferred for up to five years, though the loan must be repaid within 20 years.

Local planning for solid waste and recycling facilities is conducted by counties in cooperation with cities located within the counties.  State law requires that local solid waste management plans include a six-year construction and capital acquisition program, a financing plan for capital and operational expenses, an inventory of solid waste collection needs and operations, a comprehensive waste reduction and recycling program, and an assessment of the plan's impact on the cost of solid waste collection.  Solid waste management plans must be reviewed and revised, if necessary, at least every five years.

Summary:  Solid waste facilities, including recycling facilities, are added to the list of projects eligible to receive funding from the public works assistance account.  Eligible solid waste and recycling projects include remedial actions related to landfill closure; repair, replacement, or restoration of existing solid waste and recycling facilities, including transfer facilities; and opening new cells in existing and permitted landfills.  To qualify for loan funding for a solid waste or recycling facility, a city or county must demonstrate that the facility is consistent with and necessary for implementation of the comprehensive solid waste management plan adopted by the city or county.

Loans under the Rural Natural Resources Program (RNRP) are permitted for zip code areas immediately adjacent and contiguous to rural natural resource impact areas within the same county if workers living in impact areas benefit from the loan, and if a project benefitting from the loan is expected to receive within six years at least $800 million in private sector investment.

Votes on Final Passage:

House     96 0

Senate    49 0

Effective:  June 6, 1996