BILL REQ. #:  S-1099.1 

Read first time 01/30/09.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to the office of regulatory assistance; amending RCW 43.42.005, 43.42.020, 43.42.030, 43.42.050, 43.42.060, 43.42.070, 43.21A.690, 43.70.630, 43.300.080, and 70.94.085; reenacting and amending RCW 43.42.010 and 43.30.490; and adding a new section to chapter 43.42 RCW.

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

Sec. 1   RCW 43.42.005 and 2007 c 94 s 1 are each amended to read as follows:
     (1) ((The legislature finds that the health and safety of its citizens, natural resources, and the environment are vital interests of the state that must be protected to preserve the state's quality of life. The legislature also finds that the state's economic well-being is a vital interest that depends upon the development of fair, accessible, and coordinated permitting and regulatory requirements that ensure that the state not only protects public health and safety and natural resources but also encourages appropriate activities that stimulate growth and development. The legislature further finds that Washington's permitting and regulatory programs have established strict standards to protect public health and safety and the environment.
     (2) The legislature also finds that, as the number of environmental and land use laws and requirements have grown in Washington, so have the number of permits required of business and government. The increasing number of permits and permitting agencies has generated the potential for conflict, overlap, and duplication among state, local, and federal permitting and regulatory requirements.
     (3) The legislature further finds that not all project proponents require the same type of assistance. Proponents with small projects may merely need information and assistance in starting the permitting and application process, while intermediate-sized projects may require more of a facilitated and periodically assisted permitting process, and large complex projects may need extensive and more continuous coordination among local, state, and federal agencies and tribal governments.
     (4) The legislature further finds that persons doing business in Washington state should have access to clear and appropriate information regarding regulations, permit requirements, and agency rule-making processes.
     (5) The legislature, therefore, finds that a range of assistance and coordination options should be available to project proponents from a state office independent of any local, state, or federal permit agency. The legislature finds that citizens, businesses, and project proponents should be provided with:
     (a) A reliable and consolidated source of information concerning federal, state, and local environmental and land use laws and procedures that may apply to any given project;
     (b) Facilitated interagency forums for discussion of significant issues related to the multiple permitting processes if needed for some project proponents; and
     (c) Active coordination of all applicable regulatory and land use permitting procedures if needed for some project proponents.
     (6) The legislature declares that the purpose of this chapter is to:
     (a) Assure that citizens, businesses, and project proponents will continue to be provided with vital information regarding environmental and land use laws and with assistance in complying with environmental and land use laws to promote understanding of these laws and to protect public health and safety and the environment;
     (b) Ensure that facilitation of project permit decisions by permit agencies promotes both process efficiency and environmental protection;
     (c) Allow for coordination of permit processing for large projects upon project proponents' request and at project proponents' expense to promote efficiency, ensure certainty, and avoid conflicts among permit agencies; and
     (d) Provide these services through an office independent of any permit agency to ensure that any potential or perceived conflicts of interest related to providing these services or making permit decisions can be avoided.
     (7) The legislature also declares that the purpose of this chapter is to provide citizens of the state with access to information regarding state regulations, permit requirements, and agency rule-making processes in Washington state.
     (8))) The legislature finds that the health and safety of its citizens and environment are of vital interest to the state's long-term quality of life. The legislature also finds that Washington state is a national leader in protecting its environment. Further, the legislature finds that Washington has a vibrant and diverse economy that is dependent on the state maintaining high environmental standards. Further, the legislature finds that a complex and confusing network of environmental and land use laws and business regulations can create obstacles to sustainable growth.
     (2) Therefore, the legislature finds that to best promote accountability, timeliness, and predictability for citizens, business, and state, federal, and local permitting agencies, it is necessary to provide information and assistance on the regulatory process through the creation of the office of regulatory assistance in the governor's office.
     (3) The office of regulatory assistance is created to work to continually improve the function of environmental and business regulatory processes by identifying conflicts and overlap in the state's rules, statutes, and operational practices. The office of regulatory assistance is also created to provide project proponents and business owners with active assistance for all permitting, licensing, and other regulatory procedures required for completion of specific projects. Further, the office of regulatory assistance is created to ensure that citizens, businesses, and local governments have access to, and clear information regarding, regulatory processes for permitting and business regulation, including state rules, permit and license requirements, and agency rule-making processes.
     (4) The legislature declares that the purpose of this chapter is to provide direction and practical resources for improving the regulatory process and for assistance through regulatory processes on individual projects in furtherance of the state's goals of governmental transparency and accountability.
     (5) The legislature intends that establishing an office of regulatory assistance will provide these services without abrogating or limiting the authority of any agency to make decisions on permits, licenses, and regulatory requirements ((that it requires)) or ((any rule-making)) agency ((to make decisions on regulations)) rule making. The legislature therefore declares that the office of regulatory assistance shall have authority to provide ((these)) services but shall not have any authority to make decisions on permits.

Sec. 2   RCW 43.42.020 and 2007 c 94 s 3 are each amended to read as follows:
     (1) The office shall operate on ((the principle that citizens of the state of Washington should receive)) principles of accountability and transparency with a goal of providing the following information regarding permits to citizens and business:
     (a) ((A date and time for a decision on a permit or regulatory requirement)) The current average turnaround times from the date of application to date of decision for the required permit, licenses, or other necessary regulatory decisions, or the most relevant information the agency can provide, for projects of a comparable size and complexity;
     (b) The information required for an agency to make a decision on a permit or regulatory requirement, including the agency's best estimate of the number of times projects of a similar size and complexity have been asked to clarify, improve, or provide supplemental information before a decision, and the expected agency response time, recognizing that changes in the project or other circumstances may change the information required; and
     (c) An estimate of the maximum amount of costs in fees((,)) to be paid to state agencies, the type of any studies an agency expects to need, ((or)) and the timing of any expected public processes ((that will be incurred by)) for the project ((proponent)).
     (2) This section does not create an independent cause of action, affect any existing cause of action, or establish time limits for purposes of RCW 64.40.020.

Sec. 3   RCW 43.42.030 and 2007 c 94 s 4 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Director" means the director of the office of regulatory assistance.
     (2) "Fully coordinated permit process" means a comprehensive coordinated permitting assistance approach supported by a written agreement between the project proponent, the office of regulatory assistance, and the agencies participating in the fully coordinated permit process.
     (3) "Office" means the office of regulatory assistance ((in the office of financial management)) established in RCW 43.42.010.
     (((2))) (4) "Permit" means any permit, license, certificate, use authorization, or other form of governmental review or approval required in order to construct, expand, or operate a project in the state of Washington.
     (((3))) (5) "Permit agency" means any state, local, or federal agency authorized by law to issue permits.
     (((4))) (6) "Project" means any activity, the conduct of which requires a permit or permits from one or more permit agencies.
     (((5))) (7) "Project proponent" means a citizen, business, or any entity applying for or seeking a permit or permits in the state of Washington.

Sec. 4   RCW 43.42.010 and 2007 c 231 s 5 and 2007 c 94 s 2 are each reenacted and amended to read as follows:
     (1) The office of regulatory assistance is created in the office of financial management and shall be administered by the office of the governor to help improve the regulatory system and assist citizens, businesses, and project proponents.
     (2) The governor shall appoint a director. The director may employ a deputy director and a confidential secretary and such staff as are necessary, or contract with another state agency pursuant to chapter 39.34 RCW for support in carrying out the purposes of this chapter.
     (3) The office shall provide any or all of the following services:
     (a) ((Maintain and furnish information as provided in RCW 43.42.040;
     (b) Furnish facilitation as provided in RCW 43.42.050;
     (c) Furnish coordination as provided in RCW 43.42.060;
     (d) Coordinate cost reimbursement as provided in RCW 43.42.070;
     (e) Work with governmental agencies to continue to develop a range of permitting and regulatory assistance options for project proponents;
     (f) Help local jurisdictions comply with the requirements of RCW 36.70B.080 by:
     (i) Providing information about best practices and compliance with the requirements of RCW 36.70B.080; and
     (ii) Providing technical assistance in reducing the turnaround time between submittal of an application for a development permit and the issuance of the permit;
     (g) Work to develop informal processes for dispute resolution between agencies and permit proponents;
     (h) Conduct customer surveys to evaluate its effectiveness; and
     (i))) Act as the main or central point of contact for the project proponent in communicating about defined issues;
     (b) Conduct project scoping as provided in RCW 43.42.050;
     (c) Verify that the project proponent has all the information needed to correctly apply for all necessary permits;
     (d) Provide general coordination services as a stand-alone event or as an element of broader project assistance, nonproject-related interagency coordination, or policy and planning teamwork;
     (e) Coordinate the efficient completion among participating agencies of administrative procedures, such as collecting fees or providing public notice;
     (f) Maintain contact with the project proponent and the permit agencies to promote adherence to agreed schedules;
     (g) Assist in resolving any conflict or inconsistency among permit requirements and conditions;
     (h) Coordinate, to the extent practicable, with relevant federal permit agencies and tribal governments;
     (i) Conduct stand-alone or ongoing meeting facilitation;
     (j) Manage a fully coordinated permit process, as provided in RCW 43.42.060;
     (k) Help local jurisdictions comply with the requirements of chapter 36.70B RCW by providing information about best permitting practices as well as ways to improve communication and solicit early involvement of state agencies when needed; and
     (l) Maintain and furnish information as provided in RCW 43.42.040.
     (4) The office shall provide the following reports by ((June)) September 1, ((2008)) 2009, and biennially thereafter, to the governor and the appropriate committees of the legislature for public hearing:
     (((i))) (a) A performance report((, based on the customer surveys required in (h) of this subsection)) including:
     (i) Information regarding use of the office's voluntary cost-reimbursement services as provided in RCW 43.42.070;
     (ii) The number and type of projects where the office provided services; and
     (iii) The agencies involved on specific projects; and
     (((ii))) (b) A report ((on)) with recommendations on system improvements including recommendations regarding measurement of overall system performance, any conflicts ((identified by the office in the course of its duties)), overlaps, and inconsistencies arising from differing statutory or regulatory authorities, roles and missions of agencies, timing and sequencing of permitting and procedural requirements, or otherwise, as identified by the office in the course of its duties and how these were or could be resolved((; and
     (iii) A report regarding negotiation and implementation of voluntary cost-reimbursement agreements and use of outside independent consultants under RCW 43.42.070, including the nature and amount of work performed and implementation of requirements relating to costs.
     (3) The office shall ensure the equitable delivery and provision of assistance services, regardless of project type, scale, fund source, or assistance request)).

Sec. 5   RCW 43.42.050 and 2007 c 94 s 6 are each amended to read as follows:
     ((At the request of a project proponent, the office shall assist the project proponent in determining what regulatory requirements, processes, and permits apply to the project, as provided in this section.
     (1) The office shall assign a project facilitator who shall discuss applicable regulatory requirements, permits, and processes with the project proponent and explain the available options for obtaining required permits and regulatory review.))
     (1) Upon request of a project proponent, the office shall determine the level of project scoping needed by the project proponent, taking into consideration the complexity of the project and the experience of those expected to be involved in the project application and review process.
     (2) ((If the project proponent and the project facilitator agree that the project would benefit from a project scoping, the project facilitator shall conduct a project scoping with the project proponent and the relevant permitting and regulatory agencies. The project facilitator shall invite the participation of the relevant federal agencies and tribal governments.
     (a))) The purpose of the project scoping is to identify ((the)) relevant issues and information needs of the project proponent and ((the participating permit agencies regarding the project, share perspectives, and jointly develop a strategy for the processing of required permits by each participating permit agency)) permitting agencies and to reach a common understanding regarding the process, timing, and sequencing for obtaining applicable permits.
     (((b) The scoping)) (3) Project scoping shall consider the complexity, size, and needs for assistance of the project and shall address as appropriate:
     (((i))) (a) The permits that are required for the project;
     (((ii))) (b) The permit application forms and other application requirements of the participating permit agencies;
     (((iii))) (c) The specific information needs and issues of concern of each participant and their significance;     
     (((iv))) (d) Any statutory or regulatory conflicts that might arise from the differing authorities and roles of the permit agencies;
     (((v))) (e) Any natural resources, including federal or state listed species, that might be adversely affected by the project and might cause an alteration of the project or require mitigation; and
     (((vi))) (f) The anticipated time required for permit decisions by each participating permit agency, including the time expected to be required to determine if the permit application is complete, to conduct environmental review, and to review and process the application. In determining the estimated time required, full consideration must be given to achieving the greatest possible efficiencies through any concurrent studies and any consolidated applications, hearings, and comment periods.
     (((c))) (4) The outcome of the project scoping shall be documented in writing, furnished to the project proponent, and be made available to the public.
     (((d))) (5) The project scoping shall typically be completed within sixty days of the project proponent's request for a project scoping.
     (((e))) (6) Upon completion of the project scoping, the participating permit agencies shall proceed under their respective ((authority. The agencies are encouraged to remain)) authorities remaining in communication ((for purposes of coordination until their final permit decisions are made)) as needed and often with no further assistance from the office.
     (((3))) (7) This section does not create an independent cause of action, affect any existing cause of action, or establish time limits for purposes of RCW 64.40.020.

Sec. 6   RCW 43.42.060 and 2007 c 94 s 7 are each amended to read as follows:
     (((1) The office may coordinate the processing by participating permit agencies of permits required for a project, at the request of the project proponent through a cost-reimbursement agreement as provided in subsection (3) of this section or with the agreement of the project proponent as provided in subsection (4) of this section.
     (2) The office shall assign a project coordinator to perform any or all of the following functions, as specified by the terms of a cost-reimbursement agreement under subsection (3) of this section or an agreement under subsection (4) of this section:
     (a) Serve as the main point of contact for the project proponent;
     (b) Conduct a project scoping as provided in RCW 43.42.050(2);
     (c) Verify that the project proponent has all the information needed to complete applications;
     (d) Coordinate the permit processes of the permit agencies;
     (e) Manage the applicable administrative procedures;
     (f) Work to assure that timely permit decisions are made by the permit agencies and maintain contact with the project proponent and the permit agencies to ensure adherence to schedules;
     (g) Assist in resolving any conflict or inconsistency among permit requirements and conditions; and
     (h) Coordinate with relevant federal permit agencies and tribal governments to the extent possible.
     (3) At the request of a project proponent and as provided in RCW 43.42.070, the project coordinator shall coordinate negotiations among the project proponent, the office, and participating permit agencies to enter into a cost-reimbursement agreement and shall coordinate implementation of the agreement, which shall govern coordination of permit processing by the participating permit agencies.
     (4) For industrial projects of statewide significance or if the office determines that it is in the public interest to coordinate the processing of permits for certain projects that are complex in scope, require multiple permits, involve multiple jurisdictions, or involve a significant number of affected parties, the office shall, upon the proponent's request, enter into an agreement with the project proponent and the participating permit agencies to coordinate the processing of permits for the project. The office may limit the number of such agreements according to the resources available to the office and the permit agencies at the time.)) (1) A project proponent may submit a written request to the director of the office for participation in a fully coordinated permit process. Designation as a fully coordinated project requires that:
     (a) The project proponent enters into a cost-reimbursement agreement pursuant to RCW 43.42.070;
     (b) The project be an industrial project of statewide significance, as defined in RCW 43.157.010; or
     (c) The director determines (i) the project raises complex coordination, permit processing, or substantive permit review issues; (ii) if completed, the project would provide substantial benefits to the state; and (iii) the office, as well as the participating permit review agencies, have sufficient capacity within existing resources to undertake the full coordination process without reimbursement and without seriously affecting other services.
     (2) A project proponent who requests designation as a fully coordinated permit process project must provide the office with a full description of the project. The office may request any information from the project proponent that is necessary to make the designation under this section, and may convene a scoping meeting or a work plan meeting of the likely participating permit agencies.
     (3) When a project is designated for the fully coordinated permit process, the office shall serve as the main point of contact for the project proponent and participating agencies with regard to the permit process for the project as a whole. The office shall keep an up-to-date project management log and schedule illustrating required procedural steps in the permitting process, and highlighting substantive issues as appropriate that must be resolved in order for the project to move forward. In carrying out these responsibilities, the office shall:
     (a) Ensure that the project proponent has been informed of all the information needed to apply for the permits that are included in the coordinated permit process;
     (b) Coordinate the timing of review for those permits by the respective participating permit agencies;
     (c) Facilitate communication between project proponents, consultants, and agency staff to promote timely permit decisions;
     (d) Assist in resolving any conflict or inconsistency among the permit requirements and conditions that are expected to be imposed by the participating permit agencies; and
     (e) Make contact, at least once, with any local, tribal, or federal jurisdiction that is responsible for issuing a permit for the project and invite them to participate in the coordinated permit process or to receive periodic updates in the project.
     (4) Within thirty days, or longer with agreement of the project proponent, of the date that the office designates a project for the fully coordinated permit process, it shall convene a work plan meeting with the project proponent and the participating permit agencies to develop a coordinated permit process schedule. The meeting agenda shall include at least the following:
     (a) Review of the permits that are required for the project;
     (b) A review of the permit application forms and other application requirements of the agencies that are participating in the coordinated permit process;
     (c) An estimation of the timelines that will be used by each participating permit agency to make permit decisions, including the estimated time periods required to determine if the permit applications are complete and to review or respond to each application or submittal of new information.
     (i) The estimation must also include the estimated number of revision cycles for the project, or the typical number of revision cycles for projects of similar size and complexity.
     (ii) In the development of this timeline, full attention shall be given to achieving the maximum efficiencies possible through concurrent studies and consolidated applications, hearings, and comment periods.
     (iii) Estimated schedules for input or responses from a project proponent may be included in the timeline, but are not required.
     (iv) Estimated action or response times for activities of the office that are required before or trigger further action by a participant will also be included.
     (v) The timelines established under this subsection shall be met unless adjusted pursuant to subsection (6) of this section;
     (vi) An accelerated time period for the consideration of a permit application may not be set if that accelerated time period would be inconsistent with, or in conflict with, any time period or series of time periods set by statute for that consideration, or with any statute, rule, or regulation, or adopted state policy, standard, or guideline that requires any of the following:
     (A) Other agencies, interested persons, federally recognized Indian tribes, or the public to be given adequate notice of the application;
     (B) Other agencies to be given a role in, or be allowed to participate in, the decision to approve or disapprove the application; or
     (C) Interested persons or the public to be provided the opportunity to challenge, comment on, or otherwise voice their concerns regarding the application;
     (d) Available information regarding the timing of any public hearings that are required to issue permits for the project and a determination of the feasibility of coordinating or consolidating any of those required public hearings; and
     (e) A discussion of fee arrangements for the coordinated permit process, including an estimate of the costs allowed by statute, any reimbursable agency costs, and billing schedules, if applicable.
     (5) Each agency shall send at least one representative qualified to discuss the applicability and timelines associated with all permits administered by that agency or jurisdiction. At the request of the project proponent, the office shall notify any relevant local or federal agency or federally recognized Indian tribe of the date of the meeting and invite that agency's participation in the process.
     (6) If a permit agency or the project proponent foresees, at any time, that it will be unable to meet the estimated timelines or other obligations under the agreement, it shall notify the office of the reasons for the problem and offer potential solutions or an amended timeline for resolving the problem. The office shall notify the participating permit agencies and the project proponent and, upon agreement of all parties, adjust the schedule, or, if necessary, schedule another work plan meeting.
     (7) The office may request any information from the project proponent that is necessary to comply with its obligations under this section, consistent with the timelines set under this section.
     (8) The project proponent may withdraw from the coordinated permit process by submitting to the office a written request that the process be terminated. Upon receipt of the request, the office shall notify each participating permit agency that a coordinated permit process is no longer applicable to the project.

Sec. 7   RCW 43.42.070 and 2007 c 94 s 8 are each amended to read as follows:
     (1) The office may ((coordinate negotiation and implementation of a written agreement among the)) enter into cost-reimbursement agreements with a project proponent((, the office, and participating permit agencies)) to recover from the project proponent the reasonable costs incurred by the office in carrying out the provisions of RCW 43.42.050(((2) and 43.42.060(2) and by participating)). The agreement shall include the permit agencies ((in)) that are participating in the cost-reimbursement project and carrying out permit processing tasks ((specified)) referenced in the agreement.
     (2) ((The office may coordinate negotiation and implementation of a written agreement among the project proponent, the office, and participating permit agencies to recover from the project proponent the reasonable costs incurred by outside independent consultants selected by the office and participating permit agencies to perform permit processing tasks.
     (3) Outside independent consultants may only bill for the costs of performing those permit processing tasks that are specified in a cost-reimbursement agreement under this section. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments.
     (4))) The office shall ((adopt a policy to coordinate)) maintain policies or guidelines for coordinating cost-reimbursement agreements with participating agencies, project proponents, and outside independent consultants. ((Cost-reimbursement agreements coordinated)) Policies or guidelines must ensure that, in developing cost-reimbursement agreements, conflicts of interest are eliminated. Contracts with independent consultants hired by the office under this section must be based on competitive bids that are awarded for each agreement from a prequalified consultant roster.
     (((5) Independent consultants hired under a cost-reimbursement agreement shall report directly to the permit agency. The office shall assure that final decisions are made by the permit agency and not by the consultant.
     (6) The office shall develop procedures for determining, collecting, and distributing cost reimbursement for carrying out the provisions of this chapter.
     (7) For a cost-reimbursement agreement, the office and participating permit agencies shall negotiate a work plan and schedule for reimbursement. Prior to distributing scheduled reimbursement to the agencies, the office shall verify that the agencies have met the obligations contained in their work plan.
     (8) Prior to commencing negotiations with the project proponent for a cost-reimbursement agreement, the office shall request work load analyses from each participating permitting agency. These analyses shall be available to the public. The work load of a participating permit agency may only be modified with the concurrence of the agency and if there is both good cause to do so and no significant impact on environmental review.
     (9) The office shall develop guidance to ensure that, in developing cost-reimbursement agreements, conflicts of interest are eliminated.
     (10))) (3) For ((project)) fully coordinated permit processes ((that it coordinates)), the office shall coordinate the negotiation of all cost-reimbursement agreements executed under RCW 43.21A.690, 43.30.490, 43.70.630, 43.300.080, and 70.94.085. The office, project proponent, and the permit agencies shall be signatories to the agreement or agreements. Each permit agency shall manage performance of its portion of the agreement. Independent consultants hired under a cost-reimbursement agreement shall report directly to the hiring office or permit agency. Any cost-reimbursement agreement must require that final decisions are made by the permit agency and not by a hired consultant.
     (((11))) (4) For a fully coordinated project using cost reimbursement, the office and participating permit agencies shall include a cost-reimbursement work plan, including deliverables and schedules for invoicing and reimbursement in the fully coordinated project work plan described in RCW 43.42.060. Upon request, the office shall verify that the agencies have met the obligations contained in the cost-reimbursement work plan and agreement. The cost-reimbursement agreement shall identify with as much specificity as possible the tasks of each agency and the maximum costs for work conducted under the agreement. The agreement must include a schedule that states:
     (a) The estimated number of weeks for initial review of the permit application for comparable projects;
     (b) The anticipated number of revision cycles;
     (c) The estimated number of weeks for review of subsequent revision submittals;
     (d) The estimated number of billable hours of employee time;
     (e) The rate per hour; and
     (f) A process for revision of the agreement if necessary.
     (5) If a permit agency or the project proponent foresees, at any time, that it will be unable to meet its obligations under the cost-reimbursement agreement and fully coordinated project work plan, it shall notify the office and state the reasons, along with proposals for resolving the problems and potentially amending the timelines. The office shall notify the participating permit agencies and the project proponent and, upon agreement of all parties, adjust the schedule, or, if necessary, coordinate revision of the cost-reimbursement agreement and fully coordinated project work plan.

Sec. 8   RCW 43.21A.690 and 2007 c 94 s 10 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a permit applicant or project proponent to recover from the applicant or proponent the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.
     (2) The cost-reimbursement agreement shall identify with as much specificity as possible the ((specific)) tasks((,)) and costs((, and schedule)) for work to be conducted under the agreement. The agreement must include a schedule that states:
     (a) The estimated number of weeks for initial review of the permit application;
     (b) The estimated number of revision cycles;
     (c) The estimated number of weeks for review of subsequent revision submittals;
     (d) The estimated number of billable hours of employee time;
     (e) The rate per hour; and
     (f) A date for revision of the agreement if necessary.
     (((2))) (3) The written cost-reimbursement agreement shall be negotiated with the permit applicant or project proponent. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to hire temporary employees, to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants or hire temporary employees to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. ((Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding.))
     (4) The cost-reimbursement agreement must not negatively impact the processing of other permit applications. In order to maintain permit processing capacity, the agency may hire outside consultants, temporary employees, or make internal administrative changes. Consultants or temporary employees hired as part of a cost-reimbursement agreement or to maintain agency capacity are hired as agents of the state not of the permit applicant. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

Sec. 9   RCW 43.30.490 and 2007 c 188 s 1 and 2007 c 94 s 11 are each reenacted and amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a permit or lease applicant or project proponent to recover from the applicant or proponent the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, establishment of development units and approval or establishment of pooling agreements under chapter 78.52 RCW, including necessary technical studies, permit or lease processing, and monitoring for permit compliance.
     (2) The cost-reimbursement agreement shall identify with as much specificity as possible the ((specific)) tasks((,)) and costs((, and schedule)) for work to be conducted under the agreement. The agreement must include a schedule that states:
     (a) The estimated number of weeks for initial review of the permit application;
     (b) The estimated number of revision cycles;
     (c) The estimated number of weeks for review of subsequent revision submittals;
     (d) The estimated number of billable hours of employee time;
     (e) The rate per hour; and
     (f) A date for revision of the agreement if necessary.
     (((2))) (3) The written cost-reimbursement agreement shall be negotiated with the permit or lease applicant or project proponent. Under the provisions of a cost-reimbursement agreement, funds from the applicant or proponent shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to hire temporary employees, to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit or lease. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits or leases, and shall contract with consultants or hire temporary employees to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. ((Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits or leases not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding.))
     (4) The cost-reimbursement agreement must not negatively impact the processing of other permit applications. In order to maintain permit processing capacity, the agency may hire outside consultants, temporary employees, or make internal administrative changes. Consultants or temporary employees hired as part of a cost-reimbursement agreement or to maintain agency capacity are hired as agents of the state not of the permit applicant. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

Sec. 10   RCW 43.70.630 and 2007 c 94 s 12 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a permit applicant or project proponent to recover from the applicant or proponent the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.
     (2) The cost-reimbursement agreement shall identify with as much specificity as possible the ((specific)) tasks((,)) and costs((, and schedule)) for work to be conducted under the agreement. The agreement must include a schedule that states:
     (a) The estimated number of weeks for initial review of the permit application;
     (b) The estimated number of revision cycles;
     (c) The estimated number of weeks for review of subsequent revision submittals;
     (d) The estimated number of billable hours of employee time;
     (e) The rate per hour; and
     (f) A date for revision of the agreement if necessary.
     (((2))) (3) The written cost-reimbursement agreement shall be negotiated with the permit applicant or project proponent. Under the provisions of a cost-reimbursement agreement, funds from the applicant or proponent shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to hire temporary employees, to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants or hire temporary employees to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. ((Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding.))
     (4) The cost-reimbursement agreement must not negatively impact the processing of other permit applications. In order to maintain permit processing capacity, the agency may hire outside consultants, temporary employees, or make internal administrative changes. Consultants or temporary employees hired as part of a cost-reimbursement agreement or to maintain agency capacity are hired as agents of the state not of the permit applicant. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

Sec. 11   RCW 43.300.080 and 2007 c 94 s 13 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a permit applicant or project proponent to recover from the applicant or proponent the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.
     (2) The cost-reimbursement agreement shall identify with as much specificity as possible the ((specific)) tasks((,)) and costs((, and schedule)) for work to be conducted under the agreement. The agreement must include a schedule that states:
     (a) The estimated number of weeks for initial review of the permit application;
     (b) The estimated number of revision cycles;
     (c) The estimated number of weeks for review of subsequent revision submittals;
     (d) The estimated number of billable hours of employee time;
     (e) The rate per hour; and
     (f) A date for revision of the agreement if necessary.
     (((2))) (3) The written cost-reimbursement agreement shall be negotiated with the permit applicant or project proponent. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to hire temporary employees, to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants or hire temporary employees to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. ((Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding.))
     (4) The cost-reimbursement agreement must not negatively impact the processing of other permit applications. In order to maintain permit processing capacity, the agency may hire outside consultants, temporary employees, or make internal administrative changes. Consultants or temporary employees hired as part of a cost-reimbursement agreement or to maintain agency capacity are hired as agents of the state not of the permit applicant. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

Sec. 12   RCW 70.94.085 and 2007 c 94 s 14 are each amended to read as follows:
     (1) An authority may enter into a written cost-reimbursement agreement with a permit applicant or project proponent to recover from the applicant or proponent the reasonable costs incurred by the authority in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.
     (2) The cost-reimbursement agreement shall identify with as much specificity as possible the ((specific)) tasks((,)) and costs((, and schedule)) for work to be conducted under the agreement. The agreement must include a schedule that states:
     (a) The estimated number of weeks for initial review of the permit application;
     (b) The estimated number of revision cycles;
     (c) The estimated number of weeks for review of subsequent revision submittals;
     (d) The estimated number of billable hours of employee time;
     (e) The rate per hour; and
     (f) A date for revision of the agreement if necessary.
     (((2))) (3) The written cost-reimbursement agreement shall be negotiated with the permit applicant or project proponent. Under the provisions of a cost-reimbursement agreement, funds from the applicant or proponent shall be used by the air pollution control authority to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The air pollution control authority may also use funds provided under a cost-reimbursement agreement to hire temporary employees, to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The air pollution control authority shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The air pollution control authority shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants or hire temporary employees to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. ((Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The air pollution control authority may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding.))
     (4) The cost-reimbursement agreement must not negatively impact the processing of other permit applications. In order to maintain permit processing capacity, the agency may hire outside consultants, temporary employees, or make internal administrative changes. Consultants or temporary employees hired as part of a cost-reimbursement agreement or to maintain agency capacity are hired as agents of the state not of the permit applicant. The provisions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement. Members of the air pollution control authority's board of directors shall be considered as state officers, and employees of the air pollution control authority shall be considered as state employees, for the sole purpose of applying the restrictions of chapter 42.52 RCW to this section.

NEW SECTION.  Sec. 13   A new section is added to chapter 43.42 RCW to read as follows:
     This chapter shall not be construed to limit or abridge the powers and duties granted to a participating permit agency under the law that authorizes or requires the agency to issue a permit for a project. Each participating permit agency shall retain its authority to make all decisions on all nonprocedural matters with regard to the respective component permit that is within its scope of its responsibility including, but not limited to, the determination of permit application completeness, permit approval or approval with conditions, or permit denial. The office may not substitute its judgment for that of a participating permit agency on any such nonprocedural matters.