BILL REQ. #:  S-1232.1 

Read first time 02/12/2003.   Referred to Committee on Land Use & Planning.

     AN ACT Relating to improving permit processing performance by state agencies and local governments; amending RCW 43.160.200; adding new sections to chapter 43.17 RCW; adding a new section to chapter 36.70B RCW; adding a new section to chapter 64.40 RCW; creating a new section; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that streamlining state and local permit processes is essential to improving the business climate of the state. The legislature further finds that such streamlining needs to be accomplished while maintaining essential environmental protections. It is the intent of the legislature that state agencies set performance targets for issuing permits, that permit consolidation allowed for transportation projects be expanded to other programs requiring state permits, and that local governments be provided with incentives for streamlining local permit processes.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.17 RCW to read as follows:
     (1) This section applies to the following state permitting agencies and to the following permits and approvals:
     (a) Department of ecology:
     (i) Air quality operating permits;
     (ii) Air quality notices of construction;
     (iii) Air quality prevention of significant deterioration permits;
     (iv) Individual state wastewater discharge permits;
     (v) Individual national wastewater discharge permits;
     (vi) General wastewater discharge permits;
     (vii) Water quality certifications under section 401 of the federal water pollution control amendments;
     (viii) Coastal zone management act consistency determinations;
     (ix) Water withdrawal permits issued under chapters 90.03 and 90.44 RCW;
     (x) Approvals of changes or transfers to water withdrawal permits under chapters 90.03 and 90.44 RCW; and
     (xi) Shoreline management act substantial development permits, conditional use permits, and variances;
     (b) Department of natural resources:
     (i) Forest practices permits;
     (ii) Mining reclamation permits; and
     (iii) Silvicultural burning permits;
     (c) Department of fish and wildlife hydraulic project approvals.
     (2) State permitting agencies shall establish permit processing performance objectives for the permits and approvals specified in this section. The objectives shall address timelines for processing applications and for providing responses to preapplication requests for information or assistance. For each permit or approval the agency shall consider adopting a goal of issuing a final decision on ninety percent of applications filed in a calendar year within ninety days of receipt by the agency of a complete application. The performance objectives may be established considering the following and other factors:
     (a) Statutory timelines applicable to the permit or approval;
     (b) Budgetary resources available;
     (c) Applicable public notice, comment, and hearing requirements;
     (d) Applicable federal requirements regarding permits or approvals administered by the state under a federally delegated program;
     (e) Coordinating permit processing with the review of other permit applications for the same project or undertaking; and
     (f) Requests made by permit applicants regarding extensions to provide additional information or for other reasons.
     (3) State permitting agencies by September 30, 2003, shall adopt a schedule for establishing performance objectives for each permit or approval specified in subsection (1) of this section by June 30, 2005. The schedule shall place a priority for earlier adoption of performance objectives for those permits having the greatest number of applications and those typically requiring the greatest length of time to process a final decision.
     (4) State permitting agencies shall track the progress in meeting the performance objectives established under subsection (2) of this section. Beginning on or before December 31, 2004, each state permitting agency shall prepare an annual summary of its performance in processing applications for which performance objectives have been established, for the preceding fiscal year. The summary shall be posted on its web site and provided to the appropriate standing committees of the senate and house of representatives.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.17 RCW to read as follows:
     The departments of ecology, natural resources, and fish and wildlife shall conduct a review of methods to improve the performance of permit processing activities for those permits or approvals specified in section 2(1) of this act. The methods may include but are not limited to:
     (1) Allowing the applicant to conduct studies, provide an initial draft permit, or undertake other elements of processing the application;
     (2) Allowing funding to be provided by the applicant in addition to applicable application fees, and in addition to the cost-reimbursement authority under chapter 251, Laws of 2000;
     (3) Delegation of elements of permit processing to a lead agency for review of a project or undertaking or to another agency with expertise or jurisdiction over the same project; and
     (4) Providing detailed guidance to applicants on permit procedures, required information, and the expectations and responsibilities of the applicant and the agency.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.17 RCW to read as follows:
     (1) The environmental permit efficiency and accountability committee is created. The committee shall consist of the following voting members:
     (a) Two members of the house of representatives, one from each of the two largest caucuses, appointed by the speaker of the house of representatives;
     (b) Two members of the senate, one from each of the two largest caucuses, appointed by the president of the senate;
     (c) A member representing the governor and the permit assistance center in the office of the governor;
     (d) One member designated by the fish and wildlife commission;
     (e) One member designated by the director of ecology;
     (f) One member designated by the association of Washington cities to represent cities; and
     (g) One member designated by the Washington state association of counties, to represent counties.
     (2) The voting members of the committee shall select additional representatives of the following interests to participate as nonvoting members of the committee:
     (a) Large businesses;
     (b) Small businesses;
     (c) Environmental and citizen organizations that participate in environmental permit proceedings;
     (d) Contractors and engineers involved in the development of projects requiring state and local environmental and land use permits; and
     (e) A representative of federal agencies with federal environmental permit responsibilities.
     (3) The governor shall designate his or her representative by September 30, 2003, and such representative shall convene the initial meeting of the committee by December 1, 2003. At such initial meeting the voting members of the committee shall select a chair and shall select the nonvoting members. The committee may consider any nominations from individuals or associations representing the interests described in subsection (2) of this section.
     (4) The committee may create technical subcommittees as needed.
     (5) Nonvoting members will not be compensated but will receive reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (6) The permit assistance center in the office of the governor shall provide administrative and clerical assistance to the committee.
     (7) The committee shall build upon the work of the transportation permit efficiency and accountability committee created by RCW 47.06C.030 in developing streamlined and one-stop permitting processes that may be applicable to projects by businesses and others. The committees shall coordinate their work to maximize opportunities to transfer permit processing improvements developed under RCW 47.06C.040 to projects in addition to state transportation projects. The committee shall develop and prioritize a list of permit streamlining opportunities, specifically identifying substantive and procedural duplications and recommendations for solving these duplications. The committee shall evaluate current laws and rules and develop recommendations for legislative, administrative, and budgetary measures to achieve more timely and efficient processing of state and local environmental and land use permits applicable to the siting and operation of land use activities including industrial, commercial, residential, infrastructure, and other development. The committee shall provide a report that includes its analysis and recommendations to the appropriate fiscal and policy committees of the senate and house of representatives by December 31, 2004.
     (8) This section expires June 30, 2005.

NEW SECTION.  Sec. 5   A new section is added to chapter 36.70B RCW to read as follows:
     (1) By June 30, 2004, each city and county is encouraged to adopt procedures to establish the objective of making a final decision on a project permit application within one hundred twenty days after the local government has received a complete application. In determining the number of days that have elapsed after the local government has notified the applicant that the application is complete, the local government may exclude:
     (a) Any period during which the applicant is responding to a request by the local government to correct plans, perform required studies, or provide additional required information;
     (b) Any period during which an environmental impact statement is being prepared following a determination of significance under chapter 43.21C RCW;
     (c) Any period for administrative appeals of project permits, if an open record appeal hearing or a closed record appeal, or both, are allowed. The local government by ordinance or resolution is encouraged to establish a time period to consider and decide such appeals, including extensions that all parties may agree upon; and
     (d) Any extension of time mutually agreed upon by the applicant and the local government.
     (2) Each local government may determine that the time limits established by subsection (1) of this section do not apply if a project permit application:
     (a) Requires an amendment to the local government comprehensive land use plan or a development regulation;
     (b) Requires approval of a new fully contained community as provided in RCW 36.70A.350, a master planned resort as provided in RCW 36.70A.360, or the siting of an essential public facility as provided in RCW 36.70A.200; or
     (c) Is substantially revised by the applicant, in which case the time period may start from the date at which the revised project application is determined to be complete.

NEW SECTION.  Sec. 6   A new section is added to chapter 64.40 RCW to read as follows:
     A local government is not liable for damages under this chapter due to the local government's failure to make a final decision within the time limits established by the local government under section 5 of this act.

Sec. 7   RCW 43.160.200 and 1999 c 164 s 107 are each amended to read as follows:
     (1) The economic development account is created within the public facilities construction loan revolving fund under RCW 43.160.080. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of RCW 43.160.010(5) and this section. The account is subject to allotment procedures under chapter 43.88 RCW.
     (2) Applications under this section for assistance from the economic development account are subject to all of the applicable criteria set forth under this chapter, as well as procedures and criteria established by the board, except as otherwise provided.
     (3) Eligible applicants under this section are limited to political subdivisions of the state in rural natural resources impact areas and rural counties.
     (4) Applicants must demonstrate that their request is part of an economic development plan consistent with applicable state planning requirements. Applicants must demonstrate that tourism projects have been approved by the local government. Industrial projects must be approved by the local government and the associate development organization.
     (5) Publicly owned projects may be financed under this section upon proof by the applicant that the public project is a necessary component of, or constitutes in whole, a tourism project.
     (6) Applications must demonstrate local match and participation. Such match may include: Land donation, other public or private funds or both, or other means of local commitment to the project.
     (7) Board financing for project-specific environmental, capital facilities, land use, permitting, feasibility(([,])), and marketing studies and plans; project engineering, design, and site planning and analysis; and project debt and revenue impact analysis shall not exceed fifty thousand dollars per study. Board funds for these purposes may be provided as a grant and require a match.
     (8) Board financing for tourism projects shall not exceed two hundred fifty thousand dollars. Other public facility construction projects under this section shall not exceed one million dollars. Loans with flexible terms and conditions to meet the needs of the applicants shall be provided. Grants may also be authorized, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.
     (9) The board shall develop guidelines for allowable local match and planning and predevelopment activities.
     (10) The board may allow de minimis general system improvements to be funded if they are critically linked to the viability of the economic development project assisted under this section.
     (11) Applications under this section need not demonstrate evidence that specific private development or expansion is ready to occur or will occur if funds are provided.
     (12) The board shall establish guidelines for providing financial assistance under this section to ensure that the requirements of this chapter are complied with. The guidelines shall include:
     (a) A process to equitably compare and evaluate applications from competing communities that includes a preference for applicants that meet the permitting timelines established in section 5 of this act in at least ninety percent of permit applications.
     (b) Criteria to ensure that approved projects will have a high probability of success and are likely to provide long-term economic benefits to the community. The criteria shall include: (i) A minimum amount of local participation, determined by the board per application, to verify community support for the project; (ii) an analysis that establishes the project is feasible using standard economic principles; and (iii) an explanation from the applicant regarding how the project is consistent with the communities' economic strategy and goals.
     (c) A method of evaluating the impact of the financial assistance on the economy of the community and whether the financial assistance achieved its purpose.