BP BHEAD INT S [atlas:bill]

AN ACT Relating to the establishment of voluntary programs creating environmental excellence program agreements; amending RCW 90.54.020, 70.105D.070, 70.94.015, and 90.48.465; adding new sections to chapter 43.131 RCW; adding a new section to chapter 43.21A RCW; adding a new section to chapter 70.94 RCW; adding a new section to chapter 70.95 RCW; adding a new section to chapter 70.105 RCW; adding a new section to chapter 75.20 RCW; adding a new section to chapter 90.48 RCW; adding a new section to chapter 90.52 RCW; adding a new section to chapter 90.56 RCW; adding a new section to chapter 90.58 RCW; adding a new section to chapter 90.64 RCW; adding a new section to chapter 90.71 RCW; adding a new chapter to Title 43 RCW; creating a new section; and making appropriations.

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

NEW SECTION. Sec. 1. The purpose of this act is to create a voluntary program authorizing environmental excellence program agreements with persons regulated under the environmental laws of the state of Washington, or to direct agencies of the state of Washington to support and encourage the development of agreements that use innovative environmental measures or strategies not otherwise recognized or allowed under existing laws and rules to achieve results that represent environmental excellence.

Agencies shall encourage environmental excellence program agreements that favor or promote pollution prevention, source reduction, or improvements in practices that are transferable to other interested entities and that can achieve better overall environmental results than required by otherwise applicable rules and requirements.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise:

(1) "Agency of the state of Washington" means a state agency, board, department, authority, or commission that administers environmental laws.

(2) "Director" means the individual or body of individuals in whom the ultimate legal authority of an agency is vested by any provision of law. If the agency head is a body of individuals, a majority of those individuals constitutes the director.

(3) "Environmental laws" means chapters 43.21A, 70.94, 70.95, 70.105, 75.20, 90.48, 90.52, 90.56, 90.58, 90.64, and 90.71 RCW, and RCW 90.54.020 and rules adopted under those chapters and section. The term environmental laws as used in this chapter does not include any provision of the Revised Code of Washington, or of any municipal ordinance or enactment, that regulates the selection of a location for a new facility.

(4) "Facility" means a site, a manufacturing or natural resource management operation, or a business or municipal activity that is regulated under any of the provisions of the environmental laws.

(5) "Sponsor" means a person owning or operating a facility subject to regulation under the environmental laws of the state of Washington, or an authorized representative of the owner or operator, that submits a proposal for an environmental excellence program agreement.

(6) "Stakeholder" means a person who has a direct interest in the proposed environmental excellence program agreement or who represents a public interest in the proposed environmental excellence program agreement. Stakeholders may include communities near the project, local or state governments, permittees, businesses, environmental and other public interest groups, or similar entities.

NEW SECTION. Sec. 3. (1) The governor may enter into an environmental excellence program agreement with any person regulated under the environmental laws of the state, even if one or more of the terms of the environmental excellence program agreement would be inconsistent with an otherwise applicable statute, rule, or environmental permit.

(2) The governor may designate the director of a state agency to act for the governor and exercise the authority to enter into environmental excellence program agreements affecting environmental requirements administered by that agency. Where a sponsor proposes an environmental excellence program agreement that would affect environmental requirements administered by more than one state agency, the governor shall designate one or more directors that have the authority to enter into such an environmental excellence program agreement. In making such a designation, the governor may provide that an environmental excellence program agreement will be effective only to the extent that it is approved by the director of each state agency administering environmental requirements affected by the environmental excellence program agreement.

(3) Notwithstanding the provisions of subsections (1) and (2) of this section, where a local or regional agency with jurisdiction over environmental matters of the state administers state environmental laws, either directly or through the adoption of rules, the director of that regional agency possesses all of the authority and duties assigned to the governor under this chapter including, without limitation, the power to approve an environmental excellence program agreement. However, any environmental excellence program agreement is limited to matters over which the regional agency otherwise exercises jurisdiction, or where an environmental excellence program agreement affects environmental rules administered by a state agency, the environmental excellence program agreement must be signed by one or more directors appointed by the governor in accordance with subsection (2) of this section.

NEW SECTION. Sec. 4. (1) Any person owning or operating a facility subject to regulation under the environmental laws of the state may propose an environmental excellence program agreement. A trade association or other authorized representative of owners or operators of facilities subject to the environmental laws of the state may propose a programmatic environmental excellence program agreement for multiple facilities.

(2) A person who proposes an environmental excellence program agreement must submit, at a minimum, the following information and other information that may be requested by the governor or the governor's designee:

(a) A statement that describes how the proposal is consistent with the purpose of this chapter and the project approval criteria in section 7 of this act;

(b)(i) For a site-specific proposal, a comprehensive description of the proposed environmental excellence project that includes the nature of the facility and the operations that will be affected, how the facility or operations will achieve results that represent environmental excellence, and the nature of the results anticipated; or

(ii) For a programmatic proposal, a comprehensive description of the proposed environmental excellence project that identifies the facilities and the operations that are expected to participate, how participating facilities or operations will achieve results that represent environmental excellence, the nature of the results anticipated, and the method to identify and document the commitments made by individual participants;

(c) An environmental checklist, containing sufficient information to reasonably inform the public of the nature of the proposed environmental excellence program agreement, describing probable significant adverse environmental impacts and environmental benefits, and any tradeoffs between adverse impacts and benefits, expected from implementation of the proposal;

(d) A draft environmental excellence program agreement;

(e) A description of the stakeholder process as provided in section 5 of this act;

(f) A preliminary identification of the permit amendments or modifications that may be necessary to implement the proposed environmental excellence program agreement.

NEW SECTION. Sec. 5. Stakeholder participation in and support for an environmental excellence program agreement is vital to the integrity of the environmental excellence program agreement and informs the decision whether an environmental excellence program agreement can be approved. A proposal for an environmental excellence program agreement shall include the sponsor's plan to identify and contact stakeholders, to advise stakeholders of the facts and nature of the project, and to request stakeholder participation and review during the development and implementation of the proposed environmental excellence program agreement. With respect to any environmental excellence program agreement that the sponsor anticipates will affect legal requirements adopted to comply with provisions of a federal regulatory program, the proposal also shall provide for notice of the proposed environmental excellence program agreement to the federal agency that is responsible for administering that program.

NEW SECTION. Sec. 6. An environmental excellence program agreement must contain the following terms and conditions:

(1) An identification of all legal requirements that are affected by the environmental excellence program agreement;

(2) A description of any alternative or innovative approach to the legal requirements affected by the environmental excellence program agreement, including a statement of any enforceable requirements different from those otherwise applicable in the absence of an environmental excellence program agreement;

(3) A statement that the civil and criminal penalties for the violation of legal requirements established under the environmental excellence program agreement shall be the same as would apply in the absence of an environmental excellence program agreement for the violation of the legal requirements that are superseded or replaced by the environmental excellence program agreement;

(4) A statement of any environmental excellence and innovation goals for the project, clearly identified as measures that the sponsor intends to pursue but that do not create legal rights or obligations and which, therefore, may not be the subject of any civil, criminal, or administrative enforcement action;

(5) A statement describing how the environmental excellence program agreement will achieve the purposes of this chapter;

(6) A statement describing how the environmental excellence program agreement will be implemented, including a list of steps and an implementation schedule;

(7) A statement that the proposed environmental excellence program agreement will not increase overall worker safety risks or impose unjust or disproportionate environmental impacts;

(8) A statement that the stakeholder plan was implemented in the development of the environmental excellence program agreement;

(9) A statement describing how any participating facility shall measure and demonstrate its compliance with the environmental excellence program agreement including, without limitation, a description of the methods to be used to monitor performance, criteria that represent acceptable performance, and the method of reporting performance to the public;

(10) A description of and plan for public participation in the implementation of the environmental excellence program agreement and for public access to information needed to assess the benefits of the environmental excellence program agreement and the sponsors compliance with the environmental excellence program agreement;

(11) A schedule of periodic performance review of the environmental excellence program agreement by the governor or the governor's designee;

(12) Provisions for voluntary and involuntary termination of the agreement;

(13) The duration of the environmental excellence program agreement and provisions for renewal;

(14) Statements approving the environmental excellence program agreement made by or on behalf of the governor and the sponsor;

(15) Additional terms as requested by the governor or the governor's designee and consistent with this chapter.

NEW SECTION. Sec. 7. An environmental excellence program agreement entered into under this chapter must: (1) Achieve emissions reductions, or reductions in the discharge of wastes, or reductions in environmental risk, that achieve better overall environmental results for the participating facility than required by otherwise applicable rules and requirements, or (2) achieve compliance with applicable environmental standards or limitations in a manner that is superior to the method of compliance, or the method to demonstrate compliance, compared to the method required by applicable statutory, regulatory, or permit provisions. A superior method can be demonstrated by an innovative approach or cost-effective results.

NEW SECTION. Sec. 8. (1) At least thirty days before entering into or modifying an environmental excellence program agreement, the governor or the governor's designee shall publish notice of the proposed agreement in the Washington State Register and in a newspaper of general circulation in the vicinity of the facility or facilities covered by the proposed environmental excellence program agreement. The notice shall contain a general description of the agreement including, but not limited to, an identification of the facilities to be covered, the aspects of the project that constitute environmental excellence, the regulatory flexibility requested by the sponsor, and an announcement that the public has an opportunity to comment.

(2) With respect to an environmental excellence program agreement that affects legal requirements adopted to comply with provisions of a federal regulatory program, the governor or the governor's designee shall provide a copy of the environmental excellence program agreement, and a copy of the notice required by subsection (1) of this section, to the federal agency that is responsible for administering that program at least thirty days before entering into or modifying the environmental excellence program agreement, and shall afford the federal agency the opportunity to object to those terms of the environmental excellence program agreement or modification of an environmental excellence program agreement affecting the legal requirements. The governor or the governor's designee shall not enter into an environmental excellence program agreement or a modification of an environmental excellence program agreement containing terms affecting legal requirements adopted to comply with provisions of a federal regulatory program and to which the responsible federal agency objects.

NEW SECTION. Sec. 9. (1) Notwithstanding any other provision of law, any legal requirement under the environmental laws, including, without limitation, any standard, limitation, or order, shall be superseded and replaced under the terms and provisions of an approved environmental excellence program agreement to the extent that the environmental excellence program agreement provides alternative means to define and achieve compliance. Legal requirements contained in a permit that are affected by an environmental excellence program agreement will continue to be enforceable until such time as the permit is revised in accordance with subsection (2) of this section. With respect to any other legal requirements, the legal requirements contained in the environmental excellence program agreement are effective as provided by the environmental excellence program agreement and the facility or facilities covered by an environmental excellence program agreement shall comply with the terms of the environmental excellence program agreement in lieu of the legal requirements that are superseded and replaced by the approved environmental excellence program agreement.

(2) Any permits affected by an environmental excellence program agreement shall be revised to conform to the environmental excellence program agreement by the agency with jurisdiction. The permit revisions will be completed as expeditiously as possible in accordance with otherwise applicable procedural requirements, including, where applicable, public notice and the opportunity for comment, and the opportunity for review and objection by federal agencies.

(3) Other than as revised as provided in an approved environmental excellence program agreement, any existing permit requirements remain in effect and are enforceable.

NEW SECTION. Sec. 10. (1) A decision by the governor or the governor's designee to approve a proposed environmental excellence program agreement, or to terminate or modify an approved environmental excellence program agreement, is subject to judicial review under RCW 34.05.570. For purposes of judicial review, the decision to approve, terminate, or modify an environmental excellence program agreement is subject to review in the superior court in the same manner as an agency rule. However, the decision shall be accorded substantial deference by the court. A decision not to enter into or modify an environmental excellence program agreement is within the sole discretion of the governor or the governor's designee and is not subject to review.

(2) An appeal from a decision to approve, terminate, or modify an environmental excellence program agreement is not timely unless filed with the court and served on the parties to the environmental excellence program agreement within thirty days of the date of the decision.

(3) Permit modifications or revisions are subject to review under otherwise applicable law.

NEW SECTION. Sec. 11. In the event that a covered facility fails to perform any term or condition in an approved environmental excellence program agreement that prevents achievement of the stated purposes of section 1 of this act, the governor or the governor's designee may, in accord with written notice, terminate the environmental excellence program agreement in whole or in part. The written notice shall specify the extent to which the environmental excellence program agreement is to be terminated, state the factual and legal basis for termination, and provide a description of the opportunity for judicial review of the decision to terminate the environmental excellence program agreement.

NEW SECTION. Sec. 12. After receipt of notice of termination in the manner provided in section 11 of this act, the sponsor has sixty days in which to apply for any permit or approval affected by any terminated portion of the environmental excellence program agreement. An application filed during the sixty‑day period shall be deemed a timely application for renewal of a permit under the terms of any applicable law. The terms and conditions of the environmental excellence program agreement and of permits issued will continue in effect until a final permit or approval is issued. If the sponsor fails to submit a timely or complete application, any affected permit or approval may be modified at any time that is consistent with applicable law.

NEW SECTION. Sec. 13. (1) Nothing in this chapter limits the authority of an agency, the attorney general, or a prosecuting attorney to initiate an enforcement action for violation of any applicable legal requirement. However, (a) no civil, criminal, or administrative action may be brought with respect to any legal requirement that is superseded or replaced under the terms of an environmental excellence program agreement; and (b) no criminal, civil, or administrative sanction or action may be instituted or imposed for failure to meet any identified environmental excellence and innovation goal identified as an unenforceable target or plan in an environmental excellence program agreement.

(2) This chapter does not create any new authority for citizen suits, and does not alter or amend other statutory provisions authorizing citizen suits.

NEW SECTION. Sec. 14. An environmental excellence program agreement may contain a reduced fee schedule with respect to a program applicable to the covered facility or facilities.

NEW SECTION. Sec. 15. A decision to approve an environmental excellence program agreement is not subject to the requirements of the state environmental policy act, chapter 43.21C RCW, including the requirement to prepare an environmental impact statement under RCW 43.21C.031. However, the consideration of a proposed environmental excellence program agreement by the governor or the governor's designee will integrate an assessment of environmental impacts.

NEW SECTION. Sec. 16. The governor or any state agency designated to enter into an environmental excellence program agreement may adopt rules to implement this chapter.

NEW SECTION. Sec. 17. The director of the department of ecology shall appoint an advisory committee to review the effectiveness of the environmental excellence program agreement program and to make a recommendation to the legislature concerning the continuation, termination, or modification of the program. The committee shall be composed of one representative each from two state agencies, two representatives of the regulated community, and two representatives of environmental organizations. The committee must submit a report and its recommendation to the legislature not later than October 31, 2001. The department of ecology shall provide the advisory committee with such support as they may require.

NEW SECTION. Sec. 18. (1) State, local, and regional agencies, as described in section 3 of this act, are authorized to assess and collect a fee to recover the costs of processing environmental excellence program agreement proposals. The amount of the fee may not exceed the direct and indirect costs of processing the environmental excellence program agreement proposal.

(2) Agencies assessing fees shall graduate the initial fees for processing an environmental excellence program agreement proposal to account for the size of the business and to make the environmental excellence program agreement program more available to small businesses. An agency may exercise its discretion to waive all or any part of the fees.

(3) Sponsors may voluntarily contribute funds to the administration of an agency's environmental excellence program agreement program.

NEW SECTION. Sec. 19. A new section is added to chapter 43.131 RCW to read as follows:

The environmental excellence program agreement program shall be terminated June 30, 2002, as provided in section 20 of this act.

NEW SECTION. Sec. 20. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2003:

(1) 1997 c . . . s 1 (section 1 of this act);

(2) RCW 43.--.--- and 1997 c . . . s 2 (section 2 of this act);

(3) RCW 43.--.--- and 1997 c . . . s 3 (section 3 of this act);

(4) RCW 43.--.--- and 1997 c . . . s 4 (section 4 of this act);

(5) RCW 43.--.--- and 1997 c . . . s 5 (section 5 of this act);

(6) RCW 43.--.--- and 1997 c . . . s 6 (section 6 of this act);

(7) RCW 43.--.--- and 1997 c . . . s 7 (section 7 of this act);

(8) RCW 43.--.--- and 1997 c . . . s 8 (section 8 of this act);

(9) RCW 43.--.--- and 1997 c . . . s 9 (section 9 of this act);

(10) RCW 43.--.--- and 1997 c . . . s 10 (section 10 of this act);

(11) RCW 43.--.--- and 1997 c . . . s 11 (section 11 of this act);

(12) RCW 43.--.--- and 1997 c . . . s 12 (section 12 of this act);

(13) RCW 43.--.--- and 1997 c . . . s 13 (section 13 of this act);

(14) RCW 43.--.--- and 1997 c . . . s 14 (section 14 of this act);

(15) RCW 43.--.--- and 1997 c . . . s 15 (section 15 of this act);

(16) RCW 43.--.--- and 1997 c . . . s 16 (section 16 of this act);

(17) RCW 43.--.--- and 1997 c . . . s 17 (section 17 of this act); and

(18) RCW 43.--.--- and 1997 c . . . s 18 (section 18 of this act).

NEW SECTION. Sec. 21. A new section is added to chapter 43.21A RCW to read as follows:

Notwithstanding any other provision of law, or any legal requirement under this chapter, any standard, limitation, or order is superseded and replaced under the terms and provisions of an approved environmental excellence program agreement, created under chapter 43.‑- RCW (sections 2 through 18 of this act) to the extent that the environmental excellence program agreement provides alternative means to define and achieve compliance with this chapter.

NEW SECTION. Sec. 22. A new section is added to chapter 70.94 RCW to read as follows:

NEW SECTION. Sec. 23. A new section is added to chapter 70.95 RCW to read as follows:

NEW SECTION. Sec. 24. A new section is added to chapter 70.105 RCW to read as follows:

NEW SECTION. Sec. 25. A new section is added to chapter 75.20 RCW to read as follows:

NEW SECTION. Sec. 26. A new section is added to chapter 90.48 RCW to read as follows:

NEW SECTION. Sec. 27. A new section is added to chapter 90.52 RCW to read as follows:

NEW SECTION. Sec. 28. A new section is added to chapter 90.56 RCW to read as follows:

NEW SECTION. Sec. 29. A new section is added to chapter 90.58 RCW to read as follows:

NEW SECTION. Sec. 30. A new section is added to chapter 90.64 RCW to read as follows:

NEW SECTION. Sec. 31. A new section is added to chapter 90.71 RCW to read as follows:

Sec. 32. RCW 90.54.020 and 1989 c 348 s 1 are each amended to read as follows:

Utilization and management of the waters of the state shall be guided by the following general declaration of fundamentals:

(1) Uses of water for domestic, stock watering, industrial, commercial, agricultural, irrigation, hydroelectric power production, mining, fish and wildlife maintenance and enhancement, recreational, and thermal power production purposes, and preservation of environmental and aesthetic values, and all other uses compatible with the enjoyment of the public waters of the state, are declared to be beneficial.

(2) Allocation of waters among potential uses and users shall be based generally on the securing of the maximum net benefits for the people of the state. Maximum net benefits shall constitute total benefits less costs including opportunities lost.

(3) The quality of the natural environment shall be protected and, where possible, enhanced as follows:

(a) Perennial rivers and streams of the state shall be retained with base flows necessary to provide for preservation of wildlife, fish, scenic, aesthetic and other environmental values, and navigational values. Lakes and ponds shall be retained substantially in their natural condition. Withdrawals of water which would conflict therewith shall be authorized only in those situations where it is clear that overriding considerations of the public interest will be served.

(b) Waters of the state shall be of high quality. Regardless of the quality of the waters of the state, all wastes and other materials and substances proposed for entry into said waters shall be provided with all known, available, and reasonable methods of treatment prior to entry. Notwithstanding that standards of quality established for the waters of the state would not be violated, wastes and other materials and substances shall not be allowed to enter such waters which will reduce the existing quality thereof, except in those situations where it is clear that overriding considerations of the public interest will be served. Technology-based effluent limitations or standards for discharges for municipal water treatment plants located on the Chehalis, Columbia, Cowlitz, Lewis, or Skagit river shall be adjusted to reflect credit for substances removed from the plant intake water if:

(i) The municipality demonstrates that the intake water is drawn from the same body of water into which the discharge is made; and

(ii) The municipality demonstrates that no violation of receiving water quality standards or appreciable environmental degradation will result.

(4) Adequate and safe supplies of water shall be preserved and protected in potable condition to satisfy human domestic needs.

(5) Multiple-purpose impoundment structures are to be preferred over single-purpose structures. Due regard shall be given to means and methods for protection of fishery resources in the planning for and construction of water impoundment structures and other artificial obstructions.

(6) Federal, state, and local governments, individuals, corporations, groups and other entities shall be encouraged to carry out practices of conservation as they relate to the use of the waters of the state. In addition to traditional development approaches, improved water use efficiency and conservation shall be emphasized in the management of the state's water resources and in some cases will be a potential new source of water with which to meet future needs throughout the state.

(7) Development of water supply systems, whether publicly or privately owned, which provide water to the public generally in regional areas within the state shall be encouraged. Development of water supply systems for multiple domestic use which will not serve the public generally shall be discouraged where water supplies are available from water systems serving the public.

(8) Full recognition shall be given in the administration of water allocation and use programs to the natural interrelationships of surface and ground waters.

(9) Expressions of the public interest will be sought at all stages of water planning and allocation discussions.

(10) Water management programs, including but not limited to, water quality, flood control, drainage, erosion control and storm runoff are deemed to be in the public interest.

(11) Notwithstanding any other provision of law, or any legal requirement under this section, any standard, limitation, or order is superseded and replaced under the terms and provisions of an approved environmental excellence program agreement, created under chapter 43.‑- RCW (sections 2 through 18 of this act) to the extent that the environmental excellence program agreement provides alternative means to define and achieve compliance with this section.

Sec. 33. RCW 70.105D.070 and 1994 c 252 s 5 are each amended to read as follows:

(1) The state toxics control account and the local toxics control account are hereby created in the state treasury.

(2) The following moneys shall be deposited into the state toxics control account: (a) Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-three one-hundredths of one percent; (b) the costs of remedial actions recovered under this chapter or chapter 70.105A RCW; (c) penalties collected or recovered under this chapter; and (d) any other money appropriated or transferred to the account by the legislature. Moneys in the account may be used only to carry out the purposes of this chapter, including but not limited to the following activities:

(i) The state's responsibility for hazardous waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.105 RCW;

(ii) The state's responsibility for solid waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.95 RCW;

(iii) The hazardous waste cleanup program required under this chapter;

(iv) State matching funds required under the federal cleanup law;

(v) Financial assistance for local programs in accordance with chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;

(vi) State government programs for the safe reduction, recycling, or disposal of hazardous wastes from households, small businesses, and agriculture;

(vii) Hazardous materials emergency response training;

(viii) Water and environmental health protection and monitoring programs;

(ix) Programs authorized under chapter 70.146 RCW;

(x) A public participation program, including regional citizen advisory committees;

(xi) Public funding to assist potentially liable persons to pay for the costs of remedial action in compliance with cleanup standards under RCW 70.105D.030(2)(d) but only when the amount and terms of such funding are established under a settlement agreement under RCW 70.105D.040(4) and when the director has found that the funding will achieve both (A) a substantially more expeditious or enhanced cleanup than would otherwise occur, and (B) the prevention or mitigation of unfair economic hardship; ((~~and~~))

(xii) Development and demonstration of alternative management technologies designed to carry out the top two hazardous waste management priorities of RCW 70.105.150; and

(xiii) To meet the initial administrative costs of the environmental excellence program agreement program created under chapter 43.‑‑ RCW (sections 2 through 18 of this act).

(3) The following moneys shall be deposited into the local toxics control account: Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-seven one-hundredths of one percent.

(a) Moneys deposited in the local toxics control account shall be used by the department for grants or loans to local governments for the following purposes in descending order of priority: (i) Remedial actions; (ii) hazardous waste plans and programs under chapter 70.105 RCW; and (iii) solid waste plans and programs under chapters 70.95, 70.95C, 70.95I, and 70.105 RCW. Funds for plans and programs shall be allocated consistent with the priorities and matching requirements established in chapters 70.105, 70.95C, 70.95I, and 70.95 RCW.

(b) Funds may also be appropriated to the department of health to implement programs to reduce testing requirements under the federal safe drinking water act for public water systems. The department of health shall reimburse the account from fees assessed under RCW 70.119A.115 by June 30, 1995.

(4) Except for unanticipated receipts under RCW 43.79.260 through 43.79.282, moneys in the state and local toxics control accounts may be spent only after appropriation by statute.

(5) One percent of the moneys deposited into the state and local toxics control accounts shall be allocated only for public participation grants to persons who may be adversely affected by a release or threatened release of a hazardous substance and to not-for-profit public interest organizations. The primary purpose of these grants is to facilitate the participation by persons and organizations in the investigation and remedying of releases or threatened releases of hazardous substances and to implement the state's solid and hazardous waste management priorities. No grant may exceed fifty thousand dollars though it may be renewed annually. Moneys appropriated for public participation from either account which are not expended at the close of any biennium shall revert to the state toxics control account.

(6) No moneys deposited into either the state or local toxics control account may be used for solid waste incinerator feasibility studies, construction, maintenance, or operation.

(7) The department shall adopt rules for grant or loan issuance and performance.

Sec. 34. RCW 70.94.015 and 1993 c 252 s 1 are each amended to read as follows:

(1) The air pollution control account is established in the state treasury. All receipts collected by or on behalf of the department from RCW 70.94.151(2), and receipts from nonpermit program sources under RCW 70.94.152(1) and 70.94.154(7), and all receipts from RCW 70.94.650, 70.94.660, 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 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; and

(d) The initial administrative costs of the environmental excellence program agreement program created under chapter 43.‑- RCW (sections 2 through 18 of this act).

(3) The air operating permit account is created in the custody of the state treasurer. All receipts collected by or on behalf of the department from permit program sources under RCW 70.94.152(1), 70.94.161, 70.94.162, and 70.94.154(7) shall be deposited into the account. Expenditures from the account may be used only for the activities described in RCW 70.94.152(1), 70.94.161, 70.94.162, and 70.94.154(7). Moneys in the account may be spent only after appropriation.

Sec. 35. RCW 90.48.465 and 1996 c 37 s 3 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.

(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, and for the initial administrative costs of the environmental excellence program agreement program created under chapter 43.‑- RCW (sections 2 through 18 of this act).

(6) 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 31 of the 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.

NEW SECTION. Sec. 36. The sum of one hundred twenty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1999, from the state toxics control account to the department of ecology for the purposes of this act.

NEW SECTION. Sec. 37. The sum of one hundred twenty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1999, from the air pollution control account to the department of ecology for the purposes of this act.

NEW SECTION. Sec. 38. The sum of one hundred twenty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1999, from the water quality permit account to the department of ecology for the purposes of this act.

NEW SECTION. Sec. 39. Sections 2 through 18 of this act constitute a new chapter in Title 43 RCW.