BP BHEAD INT H

AN ACT Relating to the wastewater discharge permit program; amending RCW 90.48.465; amending 1995 2nd sp.s. c 18 s 303 (uncodified); adding new sections to chapter 90.48 RCW; creating a new section; and making appropriations.

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

NEW SECTION. Sec. 1. (1) The legislature finds the state's water policy as enunciated in RCW 90.48.010 calls for high levels of water quality in a manner that is consistent with public health, fish and wildlife, and the industrial development of the state. The legislature also finds that the department has not equitably allocated the costs of water pollution control between point and nonpoint dischargers, nor has it equitably allocated the costs of administering the wastewater discharge permit program among permittees.

The legislature finds that the department's wastewater discharge permit program is administered such that water quality is pursued without adequate consideration of the state's industrial development. The legislature therefore declares that the department shall meet the full requirements of RCW 90.48.010 by expeditiously implementing the requirements under section 2 of this act.

(2) The legislature finds that the department has created a wastewater permit program partnership advisory group to assist the department in addressing issues relating to the state's wastewater discharge permit program. The legislature finds that this group has provided valuable recommendations to the department and that it is appropriate for the advisory group to select a consultant to make recommendations regarding a wastewater discharge permit fee schedule.

NEW SECTION. Sec. 2. A new section is added to chapter 90.48 RCW to read as follows:

In administering the wastewater discharge permit program, the department shall:

(1) Identify industry-wide or basin-wide problems and needs;

(2) Establish permit requirements that fairly allocate the costs of water quality pollution control among point and nonpoint dischargers;

(3) Develop permit fees using a work load model that allocates the department's cost of administering a wastewater discharge permit based on the amount of time that the department spends on the permit;

(4) Streamline permit requirements for currently permitted small volume dischargers by expeditiously establishing a de minimis discharger category. The department shall seek to minimize the economic costs borne by dischargers within this category. The department may use the provisions under RCW 34.05.313 to expedite the creation and regulation of this discharger category;

(5) Reduce the overall number and scope of special studies required of a permitted discharger. In meeting this requirement, the department shall distinguish between site-specific water quality problems and area-wide or industry-wide water quality problems. In instances where the department has identified an area-wide or industry-wide water quality problem, the department shall, to the maximum extent possible, establish permit requirements for special studies in a manner that avoids duplication of data; and

(6) Summarize for each permit that establishes a numeric effluent limit:

(a) The permittee's pollution loading into a basin as a percentage of all other point and nonpoint dischargers; and

(b) The need for any significant new permit conditions.

NEW SECTION. Sec. 3. A new section is added to chapter 90.48 RCW to read as follows:

Beginning with the 1997 fiscal year, except as provided in section 6(2), chapter . . ., Laws of 1996 (section 6(2) of this act), the department may not spend any funds from the water quality permit account on:

(1) The development of a sediments program;

(2) Appeals;

(3) Rule development; and

(4) Training of staff who are not included in the department's work load model created pursuant to section 2 of this act.

Sec. 4. RCW 90.48.465 and 1992 c 174 s 17 are each amended to read as follows:

(1) The department shall establish annual fees to collect expenses for issuing and administering each class of permits under RCW 90.48.160, 90.48.162, 90.48.260, and 70.95J.020 through 70.95J.090. An initial fee schedule shall be established by rule within one year of March 1, 1989, and thereafter the fee schedule shall be adjusted no more often than once every two years. This fee schedule shall apply to all permits, regardless of date of issuance, and fees shall be assessed prospectively. All fees charged shall be based on factors relating to the complexity of permit issuance and compliance and may be based on pollutant loading and toxicity and be designed to encourage recycling and the reduction of the quantity of pollutants. Fees shall be established in amounts to fully recover and not to exceed expenses incurred by the department in processing permit applications and modifications, monitoring and evaluating compliance with permits, conducting inspections, securing laboratory analysis of samples taken during inspections, reviewing plans and documents directly related to operations of permittees, overseeing performance of delegated pretreatment programs, and supporting the overhead expenses that are directly related to these activities. The following overhead expenses shall not be supported through permit fees: Appeals, rule development, training of staff who are not included in the work load model; and development of a sediments program.

(2) The annual fee paid by a municipality, as defined in 33 U.S.C. Sec. 1362, for all domestic wastewater facility permits issued under RCW 90.48.162, 90.48.260, and 70.95J.020 through 70.95J.090 shall not exceed the total of a maximum of fifteen cents per month per residence or residential equivalent contributing to the municipality's wastewater system. The department shall adopt by rule a schedule of credits for any municipality engaging in a comprehensive monitoring program beyond the requirements imposed by the department, with the credits available for five years from March 1, 1989, and with the total amount of all credits not to exceed fifty thousand dollars in the five-year period.

(3) The department shall ensure that indirect dischargers do not pay twice for the administrative expense of a permit. Accordingly, administrative expenses for permits issued by a municipality under RCW 90.48.165 are not recoverable by the department.

(4) In establishing fees, the department shall consider the economic impact of fees on small dischargers and the economic impact of fees on public entities required to obtain permits for storm water runoff and shall provide appropriate adjustments.

(5) All fees collected under this section shall be deposited in the water quality permit account hereby created in the state treasury. Moneys in the account may be appropriated only for purposes of administering permits under RCW 90.48.160, 90.48.162, 90.48.260, and 70.95J.020 through 70.95J.090.

(6) The department shall submit an annual report to the legislature showing detailed information on fees collected, actual expenses incurred, and anticipated expenses for the current and following fiscal years.

(7) The legislative budget committee in 1993 shall review the fees established under this section and report its findings to the legislature in January 1994.

Sec. 5. 1995 2nd sp.s. c 18 s 303 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund‑-State Appropriation (FY 1996).... $ 22,125,000

General Fund‑-State Appropriation (FY 1997).... $ 20,639,000

General Fund‑-Federal Appropriation............. $.................................. 42,131,000

General Fund‑-Private/Local Appropriation...... $ 1,385,000

Special Grass Seed Burning Research Account

Appropriation.............................. $ 42,000

Reclamation Revolving Account Appropriation.... $ 2,664,000

Flood Control Assistance Account Appropriation. $ 4,000,000

State Emergency Water Projects Revolving Account

Appropriation.............................. $ 312,000

Waste Reduction, Recycling, and Litter Control

Account Appropriation...................... $ 5,461,000

State and Local Improvements Revolving Account‑-

Waste Disposal Appropriation............... $ 1,000,000

State and Local Improvements Revolving Account‑-

Water Supply Facilities Appropriation...... $ 1,344,000

Basic Data Account Appropriation............... $ 182,000

Vehicle Tire Recycling Account Appropriation... $ 3,283,000

Water Quality Account Appropriation............. $.................................. 3,420,000

Worker and Community Right to Know Account

Appropriation.............................. $ 408,000

State Toxics Control Account Appropriation..... $ 49,924,000

Local Toxics Control Account Appropriation..... $ 3,342,000

((~~Water Quality Permit Account Appropriation... $ 19,600,000~~))

Underground Storage Tank Account

Appropriation.............................. $ 2,336,000

Solid Waste Management Account Appropriation... $ 3,631,000

Hazardous Waste Assistance Account

Appropriation.............................. $ 3,476,000

Air Pollution Control Account Appropriation.... $ 13,458,000

Oil Spill Administration Account Appropriation. $ 2,939,000

Water Right Permit Processing Account

Appropriation.............................. $ 500,000

Wood Stove Education Account Appropriation..... $ 1,251,000

Air Operating Permit Account Appropriation..... $ 4,548,000

Freshwater Aquatic Weeds Account Appropriation. $ 1,187,000

Oil Spill Response Account Appropriation........ $...................................... 7,060,000

Metals Mining Account Appropriation............. $ 300,000

Water Pollution Control Revolving Account‑-State

Appropriation.............................. $ 165,000

Water Pollution Control Revolving Account‑-Federal

Appropriation.............................. $ 1,019,000

TOTAL APPROPRIATION............. $ ((~~223,132,000~~))

203,532,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $6,324,000 of the general fund‑-state appropriation is provided solely for the implementation of the Puget Sound water quality management plan. In addition, $394,000 of the general fund‑-federal appropriation, $819,000 of the state toxics control account appropriation, $3,591,000 of the water quality permit fee account appropriation, $883,000 of the water quality account appropriation, and $2,715,000 of the oil spill administration account appropriation may be used for the implementation of the Puget Sound water quality management plan.

((~~(3)~~)) (2) $150,000 of the state toxics control account appropriation and $150,000 of the local toxics control account appropriation are provided solely for implementing Engrossed Substitute House Bill No. 1810 (hazardous substance cleanup). If the bill is not enacted by June 30, 1995, the amount provided in this subsection shall lapse.

((~~(4)~~)) (3) $581,000 of the general fund‑-state appropriation, $170,000 of the air operating permit account appropriation, ((~~$80,000 of the water quality permit account appropriation,~~)) and $63,000 of the state toxics control account appropriation are provided solely for implementing Engrossed Substitute House Bill No. 1010 (regulatory reform). If the bill is not enacted by June 30, 1995, the amount provided in this subsection shall lapse.

((~~(5)~~)) (4) $2,000,000 of the state toxics control account appropriation is provided solely for the following purposes:

(a) To conduct remedial actions for sites for which there are no potentially liable persons or for which potentially liable persons cannot be found;

(b) To provide funding to assist potentially liable persons under RCW 70.105D.070(2)(d)(xi) to pay for the cost of the remedial actions; and

(c) To conduct remedial actions for sites for which potentially liable persons have refused to comply with the orders issued by the department under RCW 70.105D.030 requiring the persons to provide the remedial action.

((~~(6)~~)) (5) $250,000 of the flood control assistance account is provided solely for a grant or contract to the lead local entity for technical analysis and coordination with the Army Corps of Engineers and local agencies to address the breach in the south jetty at the entrance of Grays Harbor.

((~~(7)~~)) (6) $70,000 of the general fund‑-state appropriation, $90,000 of the state toxics control account appropriation, and $55,000 of the air pollution control account appropriation are provided solely to implement Engrossed Substitute House Bill No. 1724 (growth management). If the bill is not enacted by June 30, 1995, the amounts provided in this subsection shall lapse.

((~~(8)~~)) (7) If Engrossed Substitute House Bill No. 1125 (dam safety inspections), or substantially similar legislation, is not enacted by June 30, 1995, then the department shall not expend any funds appropriated in this section for any regulatory activity authorized under RCW 90.03.350 with respect to hydroelectric facilities which require a license under the federal power act, 16 U.S.C.((S.)) Sec. 791a et seq. If Engrossed Substitute House Bill No. 1125, or substantially similar legislation, is enacted by June 30, 1995, then the department may apply all available funds appropriated under this section for regulatory activity authorized under RCW 90.03.350 for the purposes of inspecting and regulating the safety of dams under the exclusive jurisdiction of the state.

((~~(9)~~)) (8) $425,000 of the general fund‑-state appropriation and $525,000 of the general fund‑-federal appropriation are provided solely for the Padilla Bay national estuarine research reserve and interpretive center.

((~~(11)~~)) (9) The water right permit processing account is hereby created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used solely for water right permit processing, regional water planning, and implementation of regional water plans.

((~~(12)~~)) (10) $1,298,000 of the general fund--state appropriation, $188,000 of the general fund--federal appropriation, and $883,000 of the water quality account appropriation are provided solely to coordinate and implement the activities required by the Puget Sound water quality management plan and to perform the powers and duties under chapter 90.70 RCW.

NEW SECTION. Sec. 6. (1) The sum of fourteen million seven hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1997, from the water quality permit account to the department of ecology. Of this amount, fifty thousand dollars is provided solely for the department and the wastewater permit program partnership advisory group to hire a consultant.

(2) The sum of eighty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1997, from the water quality permit account to implement chapter 403, Laws of 1995.

(3) In conjunction with the department and the advisory group, the consultant shall develop a fee schedule, based on a work load model, that meets the state's water quality goals and implements section 2 of this act. The consultant shall also make recommendations on appropriate fee levels for the 1997-99 biennium that are consistent with the policy provisions of this act.

(4) In making the appropriations in this section, it is the intent of the legislature that the department of ecology reduce administrative and program support costs to the water quality permit account program by at least two million four hundred ten thousand dollars in fiscal year 1997 or forty-five percent compared to fiscal year 1996, whichever is greater. In addition to these support savings, it is also the intent of the legislature that direct permit-related work load savings be achieved by the department through implementation of section 2 of this act.