SENATE BILL REPORT

SB 5473

BYSenators Kreidler, Talmadge, Fleming, Lee, Williams, Vognild and Bailey; by request of Office of the Governor

Changing provisions relating to water quality discharge permits.

Senate Committee on Parks & Ecology

Senate Hearing Date(s):February 26, 1987; March 5, 1987

Majority Report:  That Substitute Senate Bill No. 5473 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Kreidler, Chairman; Rinehart, Vice Chairman; Hansen.

Senate Staff:Gary Wilburn (786-7453)

                  March 9, 1987

AS REPORTED BY COMMITTEE ON PARKS & ECOLOGY, MARCH 5, 1987

BACKGROUND:

The Department of Ecology administers a state permit program regulating the discharge of effluent into state waters, including discharges to sewers and ground water.  The Department has been delegated authority to administer the National Pollutant Discharge Elimination System, pursuant to the Federal Clean Water Act, under which a permit is required for any point source discharge.  The permit establishes specific limits on the quantity and concentration of contaminants allowed and is issued for a five-year period.  Dischargers must monitor effluent and report compliance with the conditions of the permit.  The Department of Ecology periodically inspects the facility and takes enforcement action.

In 1985 the Department was authorized to charge permit applicants for the actual costs of processing permit applications.  The 1987 Puget Sound Water Quality Management Plan directs the Department to increase specific types of effluent limits and to require additional monitoring.  The costs for permit processing and routine monitoring of compliance will increase.  Funds collected by the Department are deposited into the general fund.

SUMMARY:

The Department of Ecology's authority to collect administrative expenses from permit holders is extended to all costs directly related to each activity, including associated overhead expenses, monitoring compliance, engaging in inspections, reviewing plans and documents required by permits, and securing laboratory support.  Costs related to enforcement actions are excluded.

The Department is to: (1) ensure that indirect dischargers not pay twice for the administrative expenses of permit issuance; (2) develop a fee schedule and begin assessing fees on an annual basis by March 31, 1988; (3) consider the economic impact of fees for storm water runoff permits on small dischargers and public entities.  The Department may establish a separate fee category for permit holders who delegate monitoring activities to the Department.  Beginning in 1989 the Department reports to the Legislature annually on the administrative efficiency of the federal and state water quality permit systems.

Fees collected will be deposited in the water quality permit account, which is created in the State Treasury.  Funds in the account shall be expended exclusively for the water quality discharge permit program.  Permits may be terminated for failure to pay required fees.

EFFECT OF PROPOSED SUBSTITUTE:

The Department's fee schedule shall be adopted by rules.  Limitations on total annual revenues that the Department may obtain from fees are set, progressively increasing to $8.3 million for FY 1992 and each year thereafter.  The purposes for which funds collected may be expended is narrowed to permit portions of the water pollution control program.  The Department's annual report to the Legislature on the permit program shall include an accounting of expenses incurred, broken down by activity categories.  Cross-subsidies for permit reductions for small discharges is prohibited.  Fees are not to be charged for permits held for fish rearing facilities.  A maximum fee of $100 is set for permit to discharges of less than 50,000 gallons per day.

Fiscal Note:      requested

Senate Committee - Testified: Gary Goodman, Western Oil & Gas; Dave Rogers, Washington PUD Association; Joe Daniels, Washington Association of Water/Waste Water Dist.; Kathy Fletcher, PSWQA; Jim Krull, Department of Ecology; John Spencer, Seattle Metro; Randy Ray, Todd Shipyard; Llewellyn Matthews, NW Pulp and Paper Association; Bruce Wishart, Sierra Club; Roger van Gohren, Association of Washington Business; David Smutowski, Boeing; Kathleen Collins, Association of Washington Cities; Dave McCraney, Governor's office; Ed Thorpe, Coalition for Clean Water; Edward McLeary, Washington Aquaculture Council