AN ACT Relating to water pollution control; amending RCW 90.48.460 and 90.48.190; adding new sections to chapter 90.48 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. It is the intent of the legislature to provide the department of ecology with the necessary resources to adequately administer water quality discharge permits issued by the state and to encourage public entities to engage in comprehensive monitoring programs. In doing this, the legislature intends to improve water quality state-wide by enhancing the ability of the department of ecology to adequately inspect dischargers into state ground and surface waters and implement water pollution control laws.

NEW SECTION. Sec. 2. Beginning in fiscal year 1989, the department shall recover its administrative expenses for operating all aspects of its water quality discharge permit system except adjustments specified in section 4 of this act and those expenses that are directly related to enforcement. Accordingly, for purposes of sections 3 through 7 of this act, "administrative expenses" means the costs incurred by the department in:

(1) Processing permit applications and modifications;

(2) Monitoring and evaluating compliance with permits;

(3) Conducting inspections;

(4) Securing laboratory analysis of samples taken during inspections;

(5) Reviewing required plans and documents directly related to operations of permittees;

(6) Monitoring compliance with delegated pretreatment programs; and

(7) Supporting the overhead expenses that are directly related to each of the preceding activities.

Administrative expenses shall not include costs related to processing of penalties and notices of violation, inspections that extend beyond routine compliance monitoring, criminal investigations, or the overhead expenses that are directly related to these activities.

The department shall develop a system by January 1, 1989, which will determine administrative expenses.

NEW SECTION. Sec. 3. (1) The department shall establish an initial fee schedule by February 1, 1988, to be implemented on July 1, 1988.

(2) Except as provided in section 4 of this act, beginning on July 1, 1989, the department shall charge any person or entity holding a permit under RCW 90.48.160, 90.48.162, or 90.48.260, annual fees to recover administrative expenses for each individual permit as defined in section 2 of this act. In no event shall the fee for the most administratively complex permit exceed a total of sixty thousand dollars for any five fiscal year period. This fee limit shall be periodically adjusted by the department to reflect inflation. If administrative expenses exceed the fee limit, additional costs shall not be shifted to other dischargers, but shall be borne by the general fund.

(3) The department shall establish an accounting mechanism to relate administrative expenses incurred in performing activities described in section 2 of this act with fees charged to persons or entities holding permits by January 1, 1989.

NEW SECTION. Sec. 4. Fees charged pursuant to section 3 of this act shall be subject to the following conditions:

(1) The department shall consider the economic impact of fees on small dischargers and shall provide appropriate adjustments;

(2) The fee for a permit issued under RCW 90.48.162 for a discharge of less than fifty thousand gallons per day shall not exceed one hundred dollars;

(3) The department shall ensure that indirect dischargers do not pay twice for the administrative expenses of a permit. Accordingly, the department shall not assess fees for permits issued by a city, town, or municipal corporation under RCW 90.48.165;

(4) Fees shall not be charged for any permits for discharges from fish-rearing facilities; and

(5) The department shall review applications for credits from any public entity engaging in comprehensive monitoring programs and shall approve or deny such applications, in whole or in part, before assessing permit fees. Credits shall be granted in accordance with a schedule adopted by the department by rule and shall not exceed twenty-five percent of the permit fee assessed over the five-year period of the permit. The total amount of credits granted for the five-year period beginning July 1, 1988, shall not exceed fifty thousand dollars. Permit fee credits granted by the department shall not be recoverable from the water quality permit account.

NEW SECTION. Sec. 5. All fees collected under section 3 of this act shall be deposited in the water quality permit account, which is hereby created in the state treasury, subject to appropriation. Money in the account collected from fees shall be expended exclusively by the department of ecology for the purposes of administering permits issued by the department under RCW 90.48.160, 90.48.162, and 90.48.260. Other funds deposited into this account may be used for the purposes of this chapter.

NEW SECTION. Sec. 6. (1) The department of ecology shall submit a report to the appropriate standing committees of the legislature on January 1, 1990, and on each January 1 thereafter describing the actions it has taken over the prior fiscal year to improve the administrative efficiency of its water quality permit systems. The report shall include information on the fees collected and administrative expenses incurred during the preceding fiscal year. The report shall list the individual permit fees assessed during the prior fiscal year.

(2) Prior to submitting its report on January 1, 1992, the department shall consult with and be advised by representatives of dischargers, recognized environmental organizations, agricultural groups, and other state agencies. The advice received by the department shall be included in the report. The report shall include a justification of the overall level of activity of the program and the level of fees necessary to operate the program.

NEW SECTION. Sec. 7. (1) In determining requirements for monitoring the condition of the waters of the state and of effluent discharged therein to be included in each permit issued by the department under RCW 90.48.160, 90.48.162, and 90.48.260, the department shall ensure that all such monitoring requirements are reasonably related to: (a) Determining compliance with the permit; (b) attaining all known, available, and reasonable treatment; or (c) determining what effects the effluent used for process purposes and regulated by the permit may have on the waters of the state or the biota or sediment in the waters of the state.

(2) Monitoring activities required pursuant to subsection (1)(c) of this section shall be established once within the term of the permit, unless the permit is modified, and shall be structured so that, if monitoring is conducted within the terms of the permit and after an appropriate period of time, the results of such monitoring identify no measurable adverse effects or potentially measurable adverse effects to the waters of the state or biota or sediment in the waters of the state, then only the monitoring requirements of subsection (1) (a) and (b) of this section shall apply. If monitoring identifies measurable adverse effects or potentially measurable adverse effects on the waters of the state or biota or sediment of the waters of the state, continued, more frequent, and/or more comprehensive monitoring shall apply. The department may allow coordinated monitoring activities where discharges from multiple persons or entities holding permits may be causing cumulative effects and where cost savings will result from such coordination.

Sec. 8. Section 4, chapter 249, Laws of 1985 and RCW 90.48.460 are each amended to read as follows:

The department of ecology shall collect administrative expenses from any person or entity requesting action of the department pertaining to the processing of applications for permits provided in RCW 90.48.160, 90.48.162, and 90.48.260. For the purposes of this section, "administrative expenses" shall mean the total actual costs incurred by the department in processing such permit applications.

This section shall expire on June 30, 1988.

Sec. 9. Section 4, chapter 71, Laws of 1955 as amended by section 17, chapter 13, Laws of 1967 and RCW 90.48.190 are each amended to read as follows:

A permit shall be subject to termination upon thirty days' notice in writing if the commission finds:

(1) That it was procured by misrepresentation of any material fact or by lack of full disclosure in the application;

(2) That there has been a violation of the conditions thereof;

(3) That a material change in quantity or type of waste disposal exists; or

(4) That an applicant or permittee has failed to pay required fees under RCW 90.48.460 or section 3 of this 1987 act.

NEW SECTION. Sec. 10. Sections 2 through 7 of this act are each added to chapter 90.48 RCW.

NEW SECTION. Sec. 11. 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.