BILL REQ. #:  H-0949.1 

Read first time 01/26/09.   Referred to Committee on Higher Education.

     AN ACT Relating to the creation of the environmental cleanup opportunity grant program; reenacting and amending RCW 70.105D.070; adding a new chapter to Title 28B RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   FINDINGS. The legislature finds that:
     (1) The beneficial stewardship of the land, air, and waters of the state is a solemn obligation of the present generation for the benefit of future generations.
     (2) There are many hazardous waste sites in this state, and cleanup of these sites requires trained environmental professionals.
     (3) Encouraging outstanding students to enter the environmental cleanup profession is of vital importance to the state of Washington. By creating the environmental cleanup opportunity grant program, the legislature intends to assist in the effort to recruit the next generation of environmental cleanup professionals consistent with the green economy jobs growth initiative under RCW 43.330.310.

NEW SECTION.  Sec. 2   DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient graduates with a bachelor's degree focused on cleanup of contaminated hazardous waste sites under the model toxics control act, chapter 70.105D RCW, and works on cleanup of contaminated sites for a period of two years. The conditional scholarship under this chapter is the environmental cleanup opportunity grant.
     (2) "Institution of higher education" or "institution" means a college or university in the state of Washington that is accredited by an accrediting association recognized as such by rule of the higher education coordinating board.
     (3) "Board" means the higher education coordinating board.
     (4) "Eligible student" means a student who is registered for at least fifteen quarter credit hours or the equivalent, demonstrates high academic achievement, is a resident student as defined by RCW 28B.15.012 and 28B.15.013, and has a declared intention to complete a major course of study leading to an environmental career in the cleanup of hazardous substances at contaminated facilities.
     (5) "Facility" means (a) any building, structure, installation, equipment, pipe or pipeline (including any pipe into a sewer or publicly owned treatment works), well, pit, pond, lagoon, impoundment, ditch, landfill, storage container, motor vehicle, rolling stock, vessel, or aircraft; or (b) any site or area where a hazardous substance, other than a consumer product in consumer use, has been deposited, stored, disposed of, or placed, or otherwise come to be located.
     (6) "Forgiven" or "to forgive" or "forgiveness" means to render service as an environmental cleanup professional in the state of Washington in lieu of monetary repayment.
     (7) "Satisfied" means paid-in-full.
     (8) "Participant" means an eligible student who has received a conditional scholarship under this chapter.
     (9) "Eligible place of work" means the department of ecology's toxic cleanup program, a governmental entity, nongovernmental organization, or private firm engaged in projects or programs primarily dedicated to the cleanup of hazardous substances at contaminated facilities within the state of Washington.
     (10) "Environmental cleanup employment obligation" means full-time or part-time employment with an eligible place of work totaling the equivalent of two years of full-time work within the first five years after graduation.
     (11) "Equalization fee" means the additional amount added to the principal of a loan under this chapter to equate the debt to that which the student would have incurred if the loan had been received through the federal subsidized Stafford student loan program.

NEW SECTION.  Sec. 3   PROGRAM CREATED--POWERS AND DUTIES OF BOARD. The environmental cleanup opportunity grant program is created. The program shall be administered by the higher education coordinating board. In administering the program, the board shall have the following powers and duties:
     (1) Select students to receive conditional scholarships;
     (2) Adopt necessary rules and guidelines;
     (3) Publicize the program;
     (4) Collect and manage repayments from students who do not meet their environmental cleanup employment obligations under this chapter; and
     (5) Award scholarships to eligible students if moneys are available.

NEW SECTION.  Sec. 4   SELECTION OF PARTICIPANTS--PROCESSES--CRITERIA. (1) The board may select participants based on an application process conducted by the board or the board may use selection processes for similar students in cooperation with the department of ecology.
     (2) If the board selects participants for the program, it shall establish a selection committee for screening and selecting recipients of the conditional scholarships. The criteria shall emphasize factors demonstrating excellence including but not limited to superior scholastic achievement, leadership ability, community contributions, willingness to commit to providing environmental cleanup service in areas of critical state need, and an ability to act as a role model for students.

NEW SECTION.  Sec. 5   SATISFACTORY PROGRESS REQUIRED. To receive additional disbursements under the program under this chapter, a participant must be considered by his or her institution of higher education to be in a satisfactory progress condition.

NEW SECTION.  Sec. 6   AWARD OF CONDITIONAL SCHOLARSHIPS AND LOAN REPAYMENTS--AMOUNT--DURATION. The board may award up to ten conditional scholarships in a twelve-month period to eligible participants from the funds appropriated to the board from the state toxics control account created in RCW 70.105D.070, or from any private donations, or any other funds given to the board for this program. The amount of the conditional scholarship awarded an individual shall not exceed the amount of tuition and fees at the institution of higher education attended by the participant or resident undergraduate tuition and fees at the University of Washington per academic year for a full-time student, whichever is lower. Participants are eligible to receive conditional scholarships for a maximum of two years.

NEW SECTION.  Sec. 7   REPAYMENT OBLIGATION. (1) Participants in the conditional scholarship program incur an obligation to repay the conditional scholarship, with interest and an equalization fee, unless they graduate from an institution of higher education with a major focused on cleanup of contaminated hazardous waste sites pursuant to chapter 70.105D RCW and are employed at an eligible worksite for the equivalent of two years of full-time employment served during the first five years following graduation, under rules adopted by the board. Participants who are employed at an eligible place of work shall have one year of loan canceled for each year they work.
     (2) The interest rate shall be determined annually by the board. Participants who fail to complete the environmental cleanup service shall incur an equalization fee based on the remaining unforgiven balance of the loan. The equalization fee shall be added to the remaining balance and repaid by the participant.
     (3) The minimum payment shall be set by the board. The maximum period for repayment shall be ten years, with payments of principal and interest accruing quarterly commencing six months from the date the participant completes or discontinues the course of study. Provisions for deferral of payment shall be determined by the board.
     (4) The entire principal and interest of each payment shall be forgiven for each payment period in which the participant works at an eligible place of work until the entire repayment obligation is satisfied. Should the participant cease to work on cleanup of contaminated sites in this state before the participant's repayment obligation is completed, payments on the unsatisfied portion of the principal and interest shall begin the next payment period and continue until the remainder of the participant's repayment obligation is satisfied.
     (5) The board is responsible for collection of repayments made under this section and shall exercise due diligence in such collection, maintaining all necessary records to ensure that maximum repayments are made. Collection and servicing of repayments under this section shall be pursued using the full extent of the law, including wage garnishment if necessary. The board is responsible to forgive all or parts of such repayments under the criteria established in this section and shall maintain all necessary records of forgiven payments.
     (6) Receipts from the payment of principal or interest or any other subsidies to which the board as administrator is entitled, which are paid by or on behalf of participants under this section, shall be deposited in the environmental cleanup opportunity grant account and shall be used to cover the costs of granting the conditional scholarships, maintaining necessary records, and making collections under subsection (5) of this section. The board shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant conditional scholarships to eligible students.
     (7) The board shall adopt rules to define the terms of repayment, including applicable interest rates, fees, and deferments. The board is encouraged to adopt rules consistent with similar programs to the extent feasible.

NEW SECTION.  Sec. 8   ENVIRONMENTAL CLEANUP OPPORTUNITY GRANT ACCOUNT. (1) The environmental cleanup opportunity grant account is created in the custody of the state treasurer. An appropriation is not required for expenditures of funds from the account. The account is not subject to allotment procedures under chapter 43.88 RCW except for moneys used for program administration.
     (2) The board shall deposit in the account all moneys received for the environmental cleanup opportunity grant program. The account shall be self-sustaining and consist of funds appropriated by the legislature from the state toxics control account created in RCW 70.105D.070 for the environmental cleanup opportunity grant program, private contributions to the program, and receipts from participant repayments from the environmental cleanup opportunity grant program.
     (3) Expenditures from the account may be used solely for conditional loans to participants in the environmental cleanup opportunity grant program established by this chapter and costs associated with program administration by the board.
     (4) Disbursements from the account may be made only on the authorization of the board.

Sec. 9   RCW 70.105D.070 and 2008 c 329 s 921, 2008 c 329 s 920, 2008 c 329 s 919, and 2008 c 328 s 6009 are each reenacted and 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)(e) 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 hazardous waste management priorities of RCW 70.105.150; and
     (xiii) Conditional scholarships awarded under the environmental cleanup opportunity grant program established under chapter 28B. . .RCW (sections 1 through 8 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;
     (iii) Solid waste plans and programs under chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;
     (iv) Funds for a program to assist in the assessment and cleanup of sites of methamphetamine production, but not to be used for the initial containment of such sites, consistent with the responsibilities and intent of RCW 69.50.511; and
     (v) Cleanup and disposal of hazardous substances from abandoned or derelict vessels, defined for the purposes of this section as vessels that have little or no value and either have no identified owner or have an identified owner lacking financial resources to clean up and dispose of the vessel, that pose a threat to human health or the environment.
     (b) 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, except that any applicant that is a Puget Sound partner, as defined in RCW 90.71.010, along with any project that is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310, shall, except as conditioned by RCW 70.105D.120, receive priority for any available funding for any grant or funding programs or sources that use a competitive bidding process. During the 2007-2009 fiscal biennium, moneys in the account may also be used for grants to local governments to retrofit public sector diesel equipment and for storm water planning and implementation activities.
     (c) 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.
     (d) To expedite cleanups throughout the state, the department shall partner with local communities and liable parties for cleanups. The department is authorized to use the following additional strategies in order to ensure a healthful environment for future generations:
     (i) The director may alter grant-matching requirements to create incentives for local governments to expedite cleanups when one of the following conditions exists:
     (A) Funding would prevent or mitigate unfair economic hardship imposed by the clean-up liability;
     (B) Funding would create new substantial economic development, public recreational, or habitat restoration opportunities that would not otherwise occur; or
     (C) Funding would create an opportunity for acquisition and redevelopment of vacant, orphaned, or abandoned property under RCW 70.105D.040(5) that would not otherwise occur;
     (ii) The use of outside contracts to conduct necessary studies;
     (iii) The purchase of remedial action cost-cap insurance, when necessary to expedite multiparty clean-up efforts.
     (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. However, during the 1999-2001 fiscal biennium, funding may not be granted to entities engaged in lobbying activities, and applicants may not be awarded grants if their cumulative grant awards under this section exceed two hundred thousand dollars. No grant may exceed sixty thousand dollars. Grants 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, or, after January 1, 2010, for projects designed to address the restoration of Puget Sound, funded in a competitive grant process, that are in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (7) The department shall adopt rules for grant or loan issuance and performance.
     (8) During the 2007-2009 fiscal biennium, the legislature may transfer from the local toxics control account to the state toxics control account such amounts as reflect excess fund balance in the account.
     (9) During the 2007-2009 fiscal biennium, the local toxics control account may also be used for a standby rescue tug at Neah Bay.

NEW SECTION.  Sec. 10   Sections 1 through 8 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION.  Sec. 11   Captions used in this act are not any part of the law.