BILL REQ. #:  H-5505.1 

READ FIRST TIME 03/01/10.   

     AN ACT Relating to the clean water act of 2010 funding cleanup of water pollution and other programs necessary for the health and well-being of Washington citizens through an increase in the tax on hazardous substances; amending RCW 82.21.030 and 82.21.040; adding a new section to chapter 90.48 RCW; adding a new section to chapter 46.68 RCW; adding a new section to chapter 90.71 RCW; creating new sections; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   This act may be known and cited as the clean water act of 2010.

NEW SECTION.  Sec. 2   (1) The legislature finds that nonpoint water pollution and contaminated storm water runoff is a major problem in the state creating a significant burden on the rivers, aquifers, lakes, streams, and marine receiving waters across Washington.
     (2) The legislature recognizes that the burden of nonpoint and storm water pollution is caused by both increased volumes of water runoff due to the expansion of impervious surfaces and the toxic substances that pollute the runoff. The burden of storm water and nonpoint pollution from hazardous substances is difficult to offset because the source of pollution is not a single physical point, but occurs wherever the toxic substances are manufactured, used, or consumed.
     (3) The legislature finds that the federal government and the state of Washington have identified control of pollutants in storm water runoff through national pollutant discharge elimination system phase I and II municipal storm water permits as a requirement for the state and local jurisdictions. Impacts from the polluted storm water may be prevented or controlled through retrofit projects for existing infrastructure as well as other means.
     (4) The legislature finds that resources available to offset the direct burdens of storm water pollution by hazardous substances are insufficient to meet existing needs. Existing funding is raised largely by local governments and is disproportionately borne by fees levied on individuals and property owners.
     (5) Finally, the legislature finds that increasing the tax on hazardous substances is necessary to fund programs that will offset the burdens that pollution places on the environment and the waters of the state.

Sec. 3   RCW 82.21.030 and 1989 c 2 s 10 are each amended to read as follows:
     (1)(a) A tax is imposed on the privilege of possession of hazardous substances in this state. The rate of the tax ((shall be)) is seven-tenths of one percent multiplied by the wholesale value of the substance.
     (b) Beginning May 1, 2010, an additional tax is imposed on the privilege of possession of hazardous substances in this state. The rate of the tax is equal to one-tenth of one percent multiplied by the wholesale value of the substance. Beginning July 1, 2011, and each July 1st thereafter, the rate of tax under this subsection (1)(b) shall be increased by one-tenth of one percent until the rate of tax under this subsection (1)(b) is equal to four-tenths of one percent.
     (2)(a) Moneys collected under ((this chapter shall)) subsection (1)(a) of this section must be deposited in the toxics control accounts under RCW 70.105D.070 and expended in accordance with the purposes stated therein.
     (b) Moneys collected under subsection (1)(b) of this section shall be deposited as follows: (i) Eighty-four percent must be deposited in the storm water account created in section 4 of this act; (ii) four percent must be deposited into the Puget Sound recovery account to be used as required under section 6 of this act; (iii) two percent must be deposited in the state oil spill prevention account; and (iv) ten percent must be deposited into the motor vehicle account to be used as required under section 5 of this act.
     (3) Chapter 82.32 RCW applies to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.

NEW SECTION.  Sec. 4   A new section is added to chapter 90.48 RCW to read as follows:
     (1) The storm water account is created in the state treasury. Receipts from the tax imposed under RCW 82.21.030(1)(b) must be deposited in the account as set forth in RCW 82.21.030. Moneys in the account are allocated to the department of ecology and may be spent only after appropriation. Expenditures from the account must be used on activities or projects that mitigate or prevent storm water pollution as provided in this section.
     (2)(a) After deducting the department's administrative costs of no more than four percent of the appropriations included in the omnibus operating and capital appropriations acts associated with administering a competitive grant process, moneys must be distributed annually as provided in (b) of this subsection:
     (b)(i) By January 1, 2011, and by January 1st of each year thereafter, seventy-five thousand dollars must be provided to each jurisdiction that is subject to the national pollutant discharge elimination system phase I or phase II requirements.
     (ii) The remaining moneys must be allocated through a grant process to local governments covered by national pollutant discharge elimination system municipal phase I or phase II permits to fund local government projects or activities that mitigate or prevent contamination of storm water or the recontamination of receiving waters previously remediated under federal or state-approved activities. To be eligible, local governments must provide fifty percent of project or activity costs from other nonstate fund sources. The department must allocate eighty percent of the moneys distributed under this subsection (2)(b)(ii) to cities with the remainder going to counties.
     (3) The department must initiate the grant application process by July 1, 2010.

NEW SECTION.  Sec. 5   A new section is added to chapter 46.68 RCW to read as follows:
     (1) The department of transportation must use taxes deposited in the motor vehicle account under RCW 82.21.030(2)(b) to fund activities or projects that address contamination of storm water related to transportation infrastructure through the implementation of the department of transportation's national pollutant discharge elimination system programs permitted under chapter 90.48 RCW. Activities and projects that may be supported with these funds include, but are not limited to: Construction, operation, inspection, monitoring, and maintenance of storm water facilities; purchase, operation, and maintenance of vactor trucks and vactor decant facilities; purchase, maintenance, and operation of storm water management inventory, mapping, and information systems; storm water pollution prevention plan development and implementation; and storm water training. For the purposes of this section, "storm water facilities" includes, but is not limited to, ponds, biofiltration swales, storm water treatment tanks, detention vaults, oil water separators, dry wells, catch basins, and filters.
     (2) The taxes deposited in the motor vehicle account under RCW 82.21.030(2)(b) may not be used for construction of storm water facilities associated with new road construction. For purposes of this section, "new roads" includes roads that are new alignments. Roads that add to or replace an existing roadway are not "new roads."
     (3) Beginning January 1, 2011, the department of transportation must deliver a biennial report describing the use of the funds to the governor and the appropriate legislative committees.

NEW SECTION.  Sec. 6   A new section is added to chapter 90.71 RCW to read as follows:
     Consistent with RCW 90.71.340, the Puget Sound partnership must use taxes deposited in the Puget Sound recovery account as provided under RCW 82.21.030(2)(b) to fund activities or capital projects that are consistent with the prioritization of the 2020 action agenda.

Sec. 7   RCW 82.21.040 and 1989 c 2 s 11 are each amended to read as follows:
     The following are exempt from the tax imposed in this chapter:
     (1) Any successive possession of a previously taxed hazardous substance. If tax due under this chapter has not been paid with respect to a hazardous substance, the department may collect the tax from any person who has had possession of the hazardous substance. If the tax is paid by any person other than the first person having taxable possession of a hazardous substance, the amount of tax paid shall constitute a debt owed by the first person having taxable possession to the person who paid the tax.
     (2) Any possession of a hazardous substance by a natural person under circumstances where the substance is used, or is to be used, for a personal or domestic purpose (and not for any business purpose) by that person or a relative of, or person residing in the same dwelling as, that person.
     (3) Any possession of a hazardous substance amount which is determined as minimal by the department of ecology and which is possessed by a retailer for the purpose of making sales to ultimate consumers. This exemption does not apply to pesticide or petroleum products.
     (4) Any possession of alumina or natural gas.
     (5) Persons or activities which the state is prohibited from taxing under the United States Constitution.
     (6) Any persons possessing a hazardous substance where such possession first occurred before March 1, 1989.
     (7) With respect to the tax imposed under RCW 82.21.030(1)(b), any possession of petroleum products that are exported for use or sale outside this state as fuel.

NEW SECTION.  Sec. 8   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 9   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect May 1, 2010.