BILL REQ. #:  S-0664.1 

Read first time 01/16/2007.   Referred to Committee on Water, Energy & Telecommunications.

     AN ACT Relating to state financial assistance programs contributing to Puget Sound water quality cleanup; amending RCW 70.146.020, 70.146.070, and 90.50A.010; adding a new section to chapter 70.146 RCW; adding a new section to chapter 90.50A RCW; adding a new section to chapter 90.71 RCW; and providing an effective date.

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

Sec. 1   RCW 70.146.020 and 1995 2nd sp.s. c 18 s 920 are each amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Account" means the water quality account in the state treasury.
     (2) "Council" means the Puget Sound partnership's leadership council created in chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007.
     (3) "Department" means the department of ecology.
     (((3))) (4) "Eligible cost" means the cost of that portion of a water pollution control facility that can be financed under this chapter excluding any portion of a facility's cost attributable to capacity that is in excess of that reasonably required to address one hundred ten percent of the applicant's needs for water pollution control existing at the time application is submitted for assistance under this chapter.
     (((4))) (5) "Implementation advisory board" means the board established to advise the Puget Sound partnership's leadership council, created by chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007.
     (6) "Puget Sound agenda" means the plan for the protection and restoration of Puget Sound required by chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007.
     (7) "Puget Sound applications" means those applications for funding of water pollution control facilities and activities located within water resource inventory areas 1 through 19 in WAC 173-500-040 as it exists on the effective date of this section.
     (8) "Water pollution control facility" or "facilities" means any facilities or systems for the control, collection, storage, treatment, disposal, or recycling of wastewater, including but not limited to sanitary sewage, storm water, residential, commercial, industrial, and agricultural wastes, which are causing water quality degradation due to concentrations of conventional, nonconventional, or toxic pollutants. Water pollution control facilities include all equipment, utilities, structures, real property, and interests in and improvements on real property necessary for or incidental to such purpose. Water pollution control facilities also include such facilities, equipment, and collection systems as are necessary to protect federally designated sole source aquifers. Water pollution control facility also includes facilities or systems that treat storm water discharges or delay peak storm water runoff, such as low-impact development projects.
     (((5))) (9) "Water pollution control activities" means actions taken by a public body for the following purposes: (a) To prevent or mitigate pollution of underground water; (b) to control nonpoint sources of water pollution; (c) to restore the water quality of fresh water lakes; and (d) to maintain or improve water quality through the use of water pollution control facilities or other means. ((During the 1995-1997 fiscal biennium, "water pollution control activities" includes activities by state agencies to protect public drinking water supplies and sources.
     (6))) (10) "Public body" means the state of Washington or any agency, county, city or town, conservation district, other political subdivision, municipal corporation, quasi-municipal corporation, and those Indian tribes now or hereafter recognized as such by the federal government.
     (((7))) (11) "Water pollution" means such contamination, or other alteration of the physical, chemical, or biological properties of any waters of the state, including change in temperature, taste, color, turbidity, or odor of the waters, or such discharge of any liquid, gaseous, solid, radioactive, or other substance into any waters of the state as will or is likely to create a nuisance or render such waters harmful, detrimental, or injurious to the public health, safety, or welfare, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish, or other aquatic life.
     (((8))) (12) "Nonpoint source water pollution" means pollution that enters any waters of the state from any dispersed water-based or land-use activities, including, but not limited to, atmospheric deposition, surface water runoff from agricultural lands, urban areas, and forest lands, subsurface or underground sources, and discharges from boats or other marine vessels.
     (((9))) (13) "Sole source aquifer" means the sole or principal source of public drinking water for an area designated by the administrator of the environmental protection agency pursuant to Public Law 93-523, Sec. 1424(b).

NEW SECTION.  Sec. 2   A new section is added to chapter 70.146 RCW to read as follows:
     (1) The department shall forward all Puget Sound applications that meet project and applicant eligibility requirements to the council to evaluate and rank the applications for their contribution toward implementing the Puget Sound agenda. The council and the department shall collaborate in this review, and may request additional information from applicants to ensure that the water pollution control benefits of the application are fully evaluated. The council may request assistance from the implementation advisory board regarding the evaluation and ranking.
     (2) The council shall hold at least one public meeting at which the public and project applicants may provide their comments on the applications and the contributions that the proposed projects and activities have toward implementing the Puget Sound agenda.
     (3) The council shall provide its evaluation and ranking of the applications to the department in a timely manner prior to the department's award decisions. The council's evaluation must include recommendations for the level of funding and its assessment of the contribution that the project or activity may make toward implementing specific elements of the Puget Sound agenda.
     (4) Where the department does not adopt a recommendation of the council, the department shall provide an explanation to the council when the award decisions are made.

Sec. 3   RCW 70.146.070 and 1999 c 164 s 603 are each amended to read as follows:
     (1) When making grants or loans for water pollution control facilities, the department shall consider the following:
     (a) The protection of water quality and public health;
     (b) The cost to residential ratepayers if they had to finance water pollution control facilities without state assistance;
     (c) Actions required under federal and state permits and compliance orders;
     (d) The level of local fiscal effort by residential ratepayers since 1972 in financing water pollution control facilities;
     (e) The extent to which the applicant county or city, or if the applicant is another public body, the extent to which the county or city in which the applicant public body is located, has established programs to mitigate nonpoint pollution of the surface or subterranean water sought to be protected by the water pollution control facility named in the application for state assistance; and
     (f) The recommendations of the ((Puget Sound action team)) council provided under section 2 of this act and any other board, council, commission, or group established by the legislature or a state agency to study water pollution control issues in the state.
     (2) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town planning under RCW 36.70A.040 may not receive a grant or loan for water pollution control facilities unless it has adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040. This subsection does not require any county, city, or town planning under RCW 36.70A.040 to adopt a comprehensive plan or development regulations before requesting or receiving a grant or loan under this chapter if such request is made before the expiration of the time periods specified in RCW 36.70A.040. A county, city, or town planning under RCW 36.70A.040 which has not adopted a comprehensive plan and development regulations within the time periods specified in RCW 36.70A.040 is not prohibited from receiving a grant or loan under this chapter if the comprehensive plan and development regulations are adopted as required by RCW 36.70A.040 before submitting a request for a grant or loan.
     (3) Whenever the department is considering awarding grants or loans for public facilities to special districts requesting funding for a proposed facility located in a county, city, or town planning under RCW 36.70A.040, it shall consider whether the county, city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.

Sec. 4   RCW 90.50A.010 and 1988 c 284 s 2 are each amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Council" means the Puget Sound partnership's leadership council created in chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007.
     (2) "Department" means the department of ecology.
     (((2))) (3) "Eligible cost" means the cost of that portion of a water pollution control facility or activity that can be financed under this chapter.
     (((3))) (4) "Fund" means the water pollution control revolving fund in the custody of the state treasurer.
     (((4))) (5) "Implementation advisory board" means the board established to advise the Puget Sound partnership's leadership council, created by chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007.
     (6) "Puget Sound agenda" means the plan for the protection and restoration of Puget Sound required by chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007.
     (7) "Puget Sound applications" means those applications for funding of water pollution control facilities and activities located within water resource inventory areas 1 through 19 in WAC 173-500-040 as it exists on the effective date of this section.
     (8) "Water pollution control facility" or "water pollution control facilities" means any facilities or systems owned or operated by a public body for the control, collection, storage, treatment, disposal, or recycling of wastewater, including but not limited to sanitary sewage, storm water, combined sewer overflows, residential, commercial, industrial, and agricultural wastes, which are causing water quality degradation due to concentrations of conventional, nonconventional, or toxic pollutants. Water pollution control facilities include all equipment, utilities, structures, real property, and interests in and improvements on real property necessary for or incidental to such purpose. Water pollution control facilities also include such facilities, equipment, and collection systems as are necessary to protect federally designated sole source aquifers.
     (((5))) (9) "Water pollution control activities" means actions taken by a public body for the following purposes: (a) To control nonpoint sources of water pollution; (b) to develop and implement a comprehensive management plan for estuaries; and (c) to maintain or improve water quality through the use of water pollution control facilities or other means.
     (((6))) (10) "Public body" means the state of Washington or any agency, county, city or town, other political subdivision, municipal corporation or quasi-municipal corporation, and those Indian tribes now or hereafter recognized as such by the federal government.
     (((7))) (11) "Water pollution" means such contamination, or other alteration of the physical, chemical, or biological properties of any waters of the state, including change in temperature, taste, color, turbidity, or odor of the waters, or such discharge of any liquid, gaseous, solid, radioactive, or other substance into any waters of the state as will or is likely to create a nuisance or render such waters harmful, detrimental, or injurious to the public health, safety, or welfare, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish, or other aquatic life.
     (((8))) (12) "Nonpoint source water pollution" means pollution that enters any waters of the state from any dispersed water-based or land-use activities, including, but not limited to, atmospheric deposition, surface water runoff from agricultural lands, urban areas, and forest lands, subsurface or underground sources, and discharges from boats or other marine vessels.
     (((9))) (13) "Federal capitalization grants" means grants from the federal government provided by the water quality act of 1987 (P.L. 100-4).

NEW SECTION.  Sec. 5   A new section is added to chapter 90.50A RCW to read as follows:
     (1) The department shall forward all Puget Sound applications that meet project and applicant eligibility requirements to the council to evaluate and rank the applications for their contribution toward implementing the Puget Sound agenda. The council and the department shall collaborate in this review and may request additional information from applicants to ensure that the water pollution control benefits of the application are fully evaluated. The council may request assistance from the implementation advisory board regarding the evaluation and ranking.
     (2) The council shall hold at least one public meeting at which the public and project applicants may provide their comments on the applications and the contributions that the proposed projects and activities have toward implementing the Puget Sound agenda.
     (3) The council shall provide its evaluation and ranking of the applications to the department in a timely manner prior to the department's award decisions. The council's evaluation must include recommendations for the level of funding and its assessment of the contribution that the project or activity may make toward implementing specific elements of the Puget Sound agenda.
     (4) Where the department does not adopt a recommendation of the council, the department shall provide an explanation to the council when the award decisions are made.

NEW SECTION.  Sec. 6   A new section is added to chapter 90.71 RCW to read as follows:
     (1) The Puget Sound partnership's leadership council, created in chapter . . . ([House] [Senate] Bill No. ....), Laws of 2007, shall review the following state funding programs that provide state funding for facilities and activities that may contribute to the implementation of the Puget Sound agenda:
     (a) The water quality account, chapter 70.146 RCW;
     (b) The water pollution control revolving fund, chapter 90.50A RCW;
     (c) The public works assistance account, chapter 43.155 RCW;
     (d) The aquatic lands enhancement account, RCW 79.105.150;
     (e) The state toxics control account and local toxics control account and clean-up program, chapter 70.105D RCW;
     (f) The acquisition of habitat conservation and outdoor recreation land, chapter 79A.15 RCW;
     (g) The salmon recovery funding board, RCW 77.85.110 through 77.85.150;
     (h) Other state financial assistance to water quality-related projects and activities; and
     (i) Water quality financial assistance from federal programs administered through state programs or provided directly to local governments in the Puget Sound basin.
     (2) The council's review shall include but not be limited to:
     (a) Determining the level of funding and types of projects and activities funded through the programs specified in subsection (1) of this section that contribute to implementation of the Puget Sound agenda;
     (b) Evaluating the procedures and criteria in each program for determining which projects and activities to fund, and the relationship to the goals and priorities of the Puget Sound agenda;
     (c) Assessing methods for ensuring that the goals and priorities of the Puget Sound agenda are given strong consideration when program funding decisions are made regarding water quality-related projects and activities in the Puget Sound basin and habitat-related projects and activities in the Puget Sound basin;
     (d) Assessing ways to incorporate a strategic funding approach for the Puget Sound agenda within the outcome-focused performance measures required by RCW 43.41.270 in administering natural resource-related and environmentally based grant and loan programs;
     (e) Assessing ways through the funding allocations for Puget Sound to reflect the geographic areas of Puget Sound for cleanup emphasis identified in the Puget Sound agenda;
     (f) Evaluating the form of the assistance provided, such as low-interest and no-interest loans, grants, and technical assistance, and which forms of assistance are more appropriate in accomplishing different types of projects and activities needed for implementing the Puget Sound agenda;
     (g) Whether entities that are private or quasi-public in nature and not now eligible to receive funding from the programs should be made eligible to seek funding, and what conditions upon funding would ensure that the public's interest in fiscal accountability and transparency in the use of public funds is protected;
     (h) Whether additional types of projects or activities should be made eligible for funding where the projects or activities are consistent with the primary purposes of the program and will also contribute to implementation of the Puget Sound agenda;
     (i) Whether state policies for the disposal, acquisition, or development of state lands are compatible or contrary to the goals and priorities of the Puget Sound agenda; and
     (j) The rigor of evaluation of project application in each program regarding assumptions and estimations of project benefits, including contributions toward implementation of the Puget Sound agenda.
     (3) The state agencies and boards administering the programs specified in subsection (1) of this section shall cooperate in providing to the council information as required for the council's review. The council shall provide its recommendations in draft form to each of the administering agencies and consider their comments prior to finalizing the council's review and recommendations.
     (4) By November 1, 2008, the council shall provide a preliminary summary of its review and recommendations to the governor and appropriate fiscal and policy committees of the senate and house of representatives. By November 1, 2009, the council shall provide final summary and recommendations, including proposed legislation to implement the recommendation, to the governor and appropriate fiscal and policy committees of the senate and house of representatives.

NEW SECTION.  Sec. 7   Sections 1, 2, 4, and 5 of this act take effect July 1, 2008.