BP BHEAD INT S

AN ACT Relating to the wastewater discharge permit program; amending RCW 90.48.465; adding a new section to chapter 50.13 RCW; adding new sections to chapter 82.04 RCW; adding new sections to chapter 82.16 RCW; creating new sections; providing an effective date; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds that the current wastewater discharge permit fee structure has developed in a manner that has resulted in a basic and inherent lack of fairness in the system. The legislature further finds that there is a strong administrative accountability and fee equity benefit to be derived from basing a fee structure upon a workload approach, and that the inequities in a workload-based fee structure are more easily identified and mitigated than would be the case with a continued reliance upon the current fee structure. The legislature further finds in conjunction with moving to a workload approach and increased accountability it is also necessary to ensure that all costs borne by permittees are rationally related to the achievement of the fundamental goal of clean water. It is the intent of the legislature to provide for a workload-based fee structure and to provide mitigation for those small businesses and small municipalities that would face an undue economic impact under a workload-based fee structure, and provide phased mitigation for other permittees inordinately impacted by the revision of the fee structure. It is further the intent of the legislature to provide for cooperative program development and review in order to most efficiently and rationally achieve the fundamental goal of clean water. It is further the intent of the legislature to provide for interdepartmental cooperation in achieving the purposes of this act.

NEW SECTION. Sec. 2. (1) The department of ecology may raise wastewater discharge permit fees required under RCW 90.478.465 in excess of the fiscal growth factors defined in RCW 43.135.055 in order to implement the following fee schedule:

Workload Model Annual

Permit Category Fee or Rate

General Storm Water $500

General Construction Site $250

General Boatyard $786

General Aquaculture $1,666

General Aggregate-Active Site $1,284

General Aggregate-Inactive Site $500

General Crop Preparing $1,734

General Dairy $1.00/head

Major Industrial NPDES $21,549

Minor Industrial NPDES Level 3 $14,862

Minor Industrial NPDES Level 2 $8,422

Minor Industrial NPDES Level 1 $5,945

State Industrial Land Level 3 $21,055

State Industrial Land Level 2 $9,660

State Industrial Land Level 1 $5,449

State Industrial User Level 3 $4,954

State Industrial User Level 2 $3,963

State Industrial User Level 1 $3,220

Small Discharger Level 3 $2,000

Small Discharger Level 2 $1,000

Small Discharger Level 1 $500

Industrial Section-Pulp and Paper With Bleach $25,265

Industrial Section-Pulp and Paper Without Bleach $25,265

Industrial Section-Oil Refinery $25,513

Industrial Section-Aluminum Smelter $22,045

Industrial Section-Minor NPDES $4,954

Industrial Section-State Permit $3,716

Hanford-State Permit $16,101

Resource Conservation and Recovery Act NPDES $19,816

Municipal Storm Water $44,820

Minor Municipal NPDES Level 3-nonmunicipality $10,838

Minor Municipal NPDES Level 2-nonmunicipality $7,451

Minor Municipal NPDES Level 1B-nonmunicipality $5,645

Minor Municipal Land Level 2-nonmunicipality $8,580

State Municipal Land Level 1-nonmunicipality $6,096

Municipality with total residential equivalents of:

(a) 25,000 and greater $1.36/RE

(b) Less than 25,000 (subject to minimum fees) $1.80/RE

State Biosolids Permit Development Fee $0.054/RE

(2) The minimum fees for municipalities with total residential equivalents of less than twenty-five thousand shall be as follows:

Workload Category Annual

Permit Category Minimum Fee

Minor Municipal NPDES Level 3 $3,000

Minor Municipal NPDES Level 2 $2,000

Minor Municipal NPDES Level 1B $1,000

Minor Municipal NPDES Level 1A $500

State Municipal Land Level 2 $2,000

State Municipal Land Level 1 $1,000

The state biosolids permit development fee for municipalities subject to the minimum fees shall be three percent of the minimum fee.

(3) The department of ecology shall implement the fee schedule included in this section for fiscal year 1997 fees.

(4) For the purposes of this section:

(a) "NPDES" means the national pollutant discharge elimination system; and

(b) "RE" means residential equivalent.

(5) This section shall expire June 30, 1997.

Sec. 3. 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 except as otherwise authorized by the legislature. 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.

(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((,)) and 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)), except that the legislature may establish minimum fees.

(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.~~)) Beginning with the biennium ending June 30, 1997, the department shall present a biennial progress report on the use of moneys from the account to the legislature. The report will be due December 31st of each odd-numbered year. The report shall consist of information on fees collected, actual expenses incurred, and anticipated expenses for the current and following fiscal years.

(7) The department shall, after consultation with the members of the wastewater permit program partnership established by the department, develop a program to provide compliance cost incentives for permittees. The department shall report to the legislature by December 1, 1996, on the progress made on development of the program, and shall begin implementation of the program no later than July 1, 1997. Beginning with the biennium ending June 30, 1999, the department shall include in its biennial progress report information on efforts undertaken to provide compliance cost incentives and the progress made toward achieving the goal of clean water.

(8)(a) The department shall conduct a workload analysis biennially. The department shall provide the opportunity for public review of and comment on the workload analysis. The department shall review and update its workload analysis during each biennial budget cycle, taking into account information gathered by tracking previous revenues, time, and expenditures and other information obtained through fiscal audits and performance audits.

(b) The department shall prepare a biennial budget based upon the resource requirements identified in the workload analysis for that biennium. The department shall provide the opportunity for public review of and comment on the proposed budget. The department shall review and update its budget each biennium.

NEW SECTION. Sec. 4. A new section is added to chapter 50.13 RCW to read as follows:

The commissioner of the employment security department shall provide to the departments of ecology and revenue information relating to the eligibility of a business for a tax credit under section 5 of this act. The department of ecology shall deem information received under this section private and confidential.

NEW SECTION. Sec. 5. A new section is added to chapter 82.04 RCW to read as follows:

(1) Notwithstanding the provisions of section 6(1) of this act, there may be credited against the tax imposed by this chapter upon qualifying small businesses an amount not to exceed one-half of the permit fee imposed under RCW 90.48.465.

(2) "Qualifying small businesses" means those small businesses as defined in RCW 19.85.020 that have not had a violation of the conditions of their permit in the previous year and that have provided their unified business identifier number to the department of ecology.

(3) The department of ecology shall notify each qualifying small business of the amount of the credit available within thirty days of receipt of payment of the current permit fee.

(4) The department of revenue shall accept the notification received by the qualifying small business from the department of ecology as payment in lieu of taxes for the full amount of the credit.

NEW SECTION. Sec. 6. A new section is added to chapter 82.04 RCW to read as follows:

(1) There may be credited against the tax imposed by this chapter the following amounts:

(a) For fiscal year 1997, an amount equal to the permit fee imposed under RCW 90.48.465 for fiscal year 1997 less the permit fee imposed under RCW 90.48.465 for fiscal year 1996 as adjusted by the fiscal growth factors as defined in RCW 43.135.055 for the years since fiscal year 1996;

(b) For fiscal year 1998, four-fifths of an amount equal to the permit fee imposed under RCW 90.48.465 for fiscal year 1998 less the permit fee imposed under RCW 90.48.465 for fiscal 1996 as adjusted by the fiscal growth factors as defined in RCW 43.135.055 for the years since fiscal year 1996;

(c) For fiscal year 1999, three-fifths of an amount equal to the permit fee imposed under RCW 90.48.465 for fiscal year 1999 less the permit fee imposed under RCW 90.48.465 for fiscal year 1996 as adjusted by the fiscal growth factors as defined in RCW 43.135.055 for the years since fiscal year 1996;

(d) For fiscal year 2000, two-fifths of an amount equal to the permit fee imposed under RCW 90.48.465 for fiscal year 2000 less the permit fee imposed under RCW 90.48.465 for fiscal year 1996 as adjusted by the fiscal growth factors as defined in RCW 43.135.055 for the years since fiscal year 1996; and

(e) For fiscal year 2001, one-fifth of an amount equal to the permit fee imposed under RCW 90.48.465 for fiscal year 2001 less the permit fee imposed under RCW 90.48.465 for fiscal year 1996 as adjusted by the fiscal growth factors as defined in RCW 43.135.055 for the years since fiscal year 1996.

(2) The credit granted by this section shall be reduced by the amount of any credit available under section 5 of this act.

(3) The department of ecology shall notify each taxpayer of the amount of the credit available within thirty days of receipt of payment of the current permit fee.

(4) The department of revenue shall accept the notification received by the taxpayer from the department of ecology as payment in lieu of taxes for the full amount of the credit.

NEW SECTION. Sec. 7. A new section is added to chapter 82.16 RCW to read as follows:

(1) Notwithstanding section 8(1) of this act, there may be credited against the tax imposed by this chapter upon qualifying municipalities one-half of an amount equal to the current permit fee imposed under RCW 90.48.465 less the fee imposed under RCW 90.48.465 for fiscal year 1996 as adjusted by the accumulated fiscal growth factors as defined in RCW 43.135.055 for the years since fiscal year 1996.

(2) "Qualifying municipalities" means those municipalities as defined in 33 U.S.C. Sec. 1362, with fewer than twenty-five thousand residential equivalents, that have not had a violation of the conditions of their permit in the previous year.

(3) The department of ecology shall notify each qualifying municipality of the amount of the credit available within thirty days of receipt of payment of the current permit fee.

(4) The department of revenue shall accept the notification received by the qualifying municipality from the department of ecology as payment in lieu of taxes for the full amount of the credit.

NEW SECTION. Sec. 8. A new section is added to chapter 82.16 RCW to read as follows:

(1) There may be credited against the tax imposed by this chapter the following amounts:

(2) The credit granted by this section shall be reduced by the amount of any credit available under section 7 of this act.

(3) The department of ecology shall notify each taxpayer of the amount of the credit available within thirty days of receipt of payment of the current permit fee.

(4) The department of revenue shall accept the notification received by the taxpayer from the department of ecology as payment in lieu of taxes for the full amount of the credit.

NEW SECTION. Sec. 9. Sections 5 through 8 of this act shall take effect July 1, 1996.

NEW SECTION. Sec. 10. The director of the department of ecology, the commissioner of the employment security department, and the director of the department of revenue may take such steps as are necessary to ensure that this act is implemented on its effective dates.