BILL REQ. #:  S-4638.1 

Read first time 02/09/10.   Referred to Committee on Ways & Means.

     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; adding new sections 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, and streams across Washington.
     (2) The legislature recognizes that the burden of nonpoint and storm water pollution is a function of 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 remediation of storm water runoff through national pollutant discharge elimination system phase I and II as a requirement for the state and local jurisdictions. Impacts from the polluted storm water may be mitigated through retrofit projects for existing infrastructure.
     (4) The legislature finds that resources needed 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.
     (6) It is the intent of the legislature that any increased revenues deposited into the general fund from the effective date of this act until June 30, 2015, resulting from the additional tax imposed in RCW 82.21.030 be appropriated for the purpose of providing funding for programs which promote the health of Washington's environment and its citizens.

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 seven-tenths of one percent multiplied by the wholesale value of the substance.
     (b) Beginning July 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 and three-tenths percent multiplied by the wholesale value of the substance.
     (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.
     (b) Moneys collected under subsection (1)(b) of this section must be deposited as follows:
     (i) For taxes collected through June 30, 2011, twenty percent must be deposited in the storm water account created in section 4 of this act to be used solely for the purposes of funding the items set forth in section 4(2)(a) of this act, one and nine-tenths percent must be deposited in the state oil spill prevention account, two and one-twentieth percent must be deposited into the Puget Sound recovery account to be used as required under section 6 of this act, two and one-twentieth percent must be deposited into the state clean water account to be used as required under section 7 of this act, five percent must be deposited into the motor vehicle account to be used as required under section 5 of this act, and the remainder must be deposited into the general fund.
     (ii) For taxes collected between July 1, 2011, and June 30, 2013, forty-five percent must be deposited into the storm water account created in section 4 of this act, one and one-fifth percent must be deposited in the state oil spill prevention account, two and two-fifths percent must be deposited into the Puget Sound recovery account to be used as required under section 6 of this act, two and two-fifths percent must be deposited in the state clean water account to be used as required under section 6 of this act, five percent must be deposited into the motor vehicle account to be used as required under section 5 of this act, and the remainder must be deposited into the general fund.
     (iii) For taxes collected between July 1, 2013, and June 30, 2015, forty-five percent must be deposited into the storm water account created in section 4 of this act, one and one-tenths percent must be deposited in the state oil spill prevention account, four and one-half percent must be deposited into the Puget Sound recovery account to be used as required under section 6 of this act, four and two-fifths percent must be deposited in the state clean water account to be used as required under section 7 of this act, ten percent must be deposited into the motor vehicle account to be used as required under section 5 of this act, and the remainder must be deposited into the general fund.
     (iv) For taxes collected on or after July 1, 2015, one percent must be deposited in the state oil spill prevention account, nine and one-half percent must be deposited into the Puget Sound recovery account to be used as required under section 6 of this act, nine and one-half percent must be deposited in the state clean water account to be used as required under section 7 of this act, ten percent must be deposited into the motor vehicle account to be used as required under section 5 of this act, and the remainder must be deposited into the storm water account created in section 4 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 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.
     (2) After deducting the department's administrative costs of no more than four percent associated with administering a competitive grant process, moneys must be distributed based on the following allocation:
     (a) Fifty percent of the remaining moneys must be allocated through the grant process to phase I or phase II jurisdictions to fund local government projects or activities that mitigate or prevent contamination of storm water. To be eligible, local governments must provide fifty percent of project or activity costs from other nonstate fund sources. Of the allocation in this subsection, 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.
     (b) Forty percent of the remaining moneys must be allocated through the grant process to local governments for retrofit projects that address contamination of storm water, or projects that mitigate the air deposition of storm water pollutants. The moneys for retrofit projects must be prioritized for projects that utilize low-impact development retrofit strategies, but moneys may be awarded for other retrofit projects if the site does not lend itself to low-impact development techniques or other retrofit techniques that are shown to be more effective in terms of addressing water quality problems associated with the site.
     (c) Ten percent of the remaining moneys must be allocated through either existing storm water grant programs or the grant process to projects under (a) or (b) of this subsection and to the highest priority projects based upon ecological and water quality benefits determined by the department. For projects qualifying under this subsection (2)(c), moneys may be allocated to meet the matching requirements under (a) of this subsection to jurisdictions that demonstrate economic hardship in meeting the matching requirement.
     (3) In consultation with stakeholders, the department must develop criteria for administering the program and ranking projects for funding based on water quality benefits. In developing criteria applicable to projects in the Puget Sound basin, the department must consult with the Puget Sound partnership. Consistent with RCW 90.71.340, when making grants under this section that contribute to Puget Sound protection and recovery, the department must consult with the Puget Sound partnership to ensure that grants are for projects and activities that are consistent with the prioritization of the 2020 action agenda. All activities or capital projects approved for funding must demonstrate the potential to achieve clear ecological or water quality benefits. The department must endeavor to distribute the moneys within each geographic region of the state in proportion to the severity of impacts to waterways from storm water pollution.
     (4) The department must initiate the grant application process by July 1, 2010.
     (5) By December 1, 2013, and every two years thereafter, the department must report to the governor and the appropriate committees of the legislature on the progress of the program and the suitability of the percentage allocations specified in subsection (2)(a) through (c) of this section.
     (6) The definitions in this section apply throughout this section unless the context clearly requires otherwise.
     (a) "Department" means the department of ecology.
     (b) "Low-impact development" means a storm water management and land development strategy applied at the parcel and subdivision level that emphasizes conservation and use of on-site natural features integrated with engineered, small-scale hydrologic controls to more closely mimic predevelopment hydrologic functions.
     (c) "Retrofit" means the renovation of existing development to improve or eliminate storm water problems associated with the site or drainage area.

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(1)(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(1)(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."

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(1)(b) to fund activities or capital projects that are consistent with the prioritization of the 2020 action agenda. The department of transportation may deduct administrative costs of no more than four percent.

NEW SECTION.  Sec. 7   A new section is added to chapter 90.48 RCW to read as follows:
     (1) The state clean 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 provided in RCW 82.21.030. Moneys in the state clean water account are allocated to the department of ecology and may be spent only after appropriation. The account may not be used to fund specific state activities that are required to be funded through fees paid by state and federal water quality permittees.
     (2) Moneys in the state clean water account may be used only for state responsibilities to carry out the purposes of this chapter to: Prevent pollution of streams, rivers, aquifers, and drinking water; prevent beach and shellfish bed closures due to polluted surface runoff; and protect fish and wildlife habitat from polluted surface runoff. More specifically, moneys must be used for, but not limited to, the following purposes:
     (a) Prevention of oil spills including vessel and oil transportation and handling facility inspections, coordination and evaluation of oil spill drills, and contingency plan review;
     (b) Creation and maintenance of a storm water technology center to assist businesses and governmental entities by developing resources for testing, monitoring, adopting, and implementing new clean water practices and technologies;
     (c) Improved storm water research, data management, and monitoring;
     (d) Development of clean water guidance and best management practices for nonpermitted surface runoff activities; and
     (e) Improved source control actions, such as collaboration with local governments to provide local source control inspectors.

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 June 1, 2010.