AN ACT Relating to a department of nuclear safety; amending RCW 43.200.015, 43.200.180, 70.98.050, 80.50.030, 43.17.010, 43.17.020, 43.20A.360, 43.21F.045, 43.200.020, 43.200.070, 43.200.080, 43.200.100, 43.200.190, 43.200.200, 43.200.210, 70.98.085, 70.98.095, 70.98.122, 81.80.130, and 81.80.140; reenacting and amending RCW 43.200.040; adding a new section to chapter 41.06 RCW; adding a new chapter to Title 43 RCW; creating new sections; recodifying RCW 43.21F.400, 43.21F.405, 43.21F.410, 43.21F.415, and 43.21F.420; and decodifying RCW 43.200.090.

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

NEW SECTION. Sec. 1. The purpose of this chapter is to create a single department to unify all state government authority and services related to nuclear safety. The department is designed to protect the public health and safety by integrating and coordinating all activities involving the prevention of unnecessary human exposure to and environmental damage from radioactive or nuclear materials. In order to provide for maximum efficiency of operation consistent with meeting the needs of those served or affected, the department will encompass all of the powers, duties, and functions that relate to nuclear safety vested by law on the effective date of this section in the department of social and health services, the department of ecology, and the energy facility site evaluation council.

NEW SECTION. Sec. 2. As used in this chapter, unless the context indicates otherwise:

(1) "Department" means the department of nuclear safety; and

(2) "Director" means the director of nuclear safety.

NEW SECTION. Sec. 3. There is hereby created a department of state government to be known as the department of nuclear safety. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 4. The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. The director may employ such assistants and personnel as may be necessary for the general administration of the department. This employment shall be in accordance with the state civil service law, chapter 41.06 RCW, except as otherwise provided.

NEW SECTION. Sec. 5. The director shall appoint such professional and technical staff as may be needed to administer the department.

NEW SECTION. Sec. 6. Any power or duty vested in or transferred to the director by law, or executive order, may be delegated by the director to any assistant or subordinate; but the director shall be responsible for the official acts of the officers and employees of the department.

NEW SECTION. Sec. 7. The department shall represent the interests of the state in the siting, construction, and operation of nuclear waste storage and disposal facilities and shall serve as the official state agency responsible for coordination of nuclear energy-related activities.

NEW SECTION. Sec. 8. The department shall supervise and regulate the transportation of nuclear and other radioactive materials within this state by common carriers and contract carriers, as these terms are defined in RCW 81.80.010. The authority of this section extends only to nuclear safety related matters and does not extend to rates. In carrying out its duties under this section, the department may contract with the utilities and transportation commission and other agencies for enforcement.

NEW SECTION. Sec. 9. The director may appoint such advisory committees or councils as may be required on radiation control and such other subject matters as are or come within the department's responsibilities.

Members of such state advisory committees or councils may be paid their travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 10. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of nuclear safety to the director, and to no more than five additional persons.

NEW SECTION. Sec. 11. The office of radiation protection of the department of social and health services and the office of nuclear waste management of the department of ecology are hereby abolished and their powers, duties, and functions are hereby transferred to the department of nuclear safety.

NEW SECTION. Sec. 12. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of radiation protection of the department of social and health services and the office of nuclear waste management of the department of ecology shall be delivered to the custody of the department of nuclear safety. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed in connection with the powers, duties, and functions transferred shall be made available to the department of nuclear safety. All funds, credits, or other assets held in connection with the powers, duties, and functions transferred shall be assigned to the department of nuclear safety.

Any appropriations made in connection with the powers, duties, and functions transferred shall, on the effective date of this section, be transferred and credited to the department of nuclear safety.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, or as to the powers, duties, and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 13. All classified employees employed in connection with the powers, duties, and functions transferred are transferred to the jurisdiction of the department of nuclear safety. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of nuclear safety to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 14. All rules and all pending business before any agency of state government pertaining to the powers, duties, and functions transferred shall be continued and acted upon by the department of nuclear safety. All existing contracts and obligations shall remain in full force and shall be performed by the department of nuclear safety.

NEW SECTION. Sec. 15. The transfer of the powers, duties, functions, and personnel shall not affect the validity of any act performed by such employee prior to the effective date of this section.

NEW SECTION. Sec. 16. If apportionments of budgeted funds are required because of the transfers directed by sections 12 through 15 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 17. Nothing contained in sections 12 through 16 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

Sec. 18. Section 1, chapter 161, Laws of 1984 as amended by section 1, chapter 293, Laws of 1985 and RCW 43.200.015 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Board" means the nuclear waste board established in RCW 43.200.040.

(2) "Federal department of energy" means the federal department of energy or any successor agency assigned responsibility for the long-term disposal of high-level radioactive waste.

(3) "Nuclear regulatory commission" means the United States nuclear regulatory commission or any successor agency responsible for approving construction of a repository for the long-term disposal of high-level radioactive waste and spent nuclear fuel.

(4) "Hanford candidate site" means the site identified by the United States department of energy as a potentially acceptable site for the disposal of spent nuclear fuel and high-level radioactive waste pursuant to the nuclear waste policy act of 1982.

(5) "High-level radioactive waste" means "high-level radioactive waste" as the term is defined in 42 U.S.C. Sec. 10101 (P.L. 97-425).

(6) "Low-level radioactive waste" means waste material that contains radioactive nuclides emitting primarily beta or gamma radiation, or both, in concentrations or quantities that exceed applicable federal or state standards for unrestricted release. Low-level waste does not include waste containing more than one hundred nanocuries of transuranic contaminants per gram of material, nor spent reactor fuel, nor material classified as either high-level radioactive waste or waste that is unsuited for disposal by near-surface burial under any applicable federal regulations.

(7) "Radioactive waste" means both high-level and low-level radioactive waste.

(8) "Spent nuclear fuel" means spent nuclear fuel as the term is defined in 42 U.S.C. Sec. 10101.

(9) "Department" means the department of ((~~ecology~~)) nuclear safety.

Sec. 19. Section 4, chapter 2, Laws of 1986 and RCW 43.200.180 are each amended to read as follows:

The department ((~~of ecology~~)) shall be the state agency responsible for implementation of the federal low-level radioactive waste policy amendments act of 1985, including:

(1) Collecting and administering the surcharge assessed by the governor under RCW 43.200.170;

(2) Collecting low-level radioactive waste data from disposal facility operators, generators, intermediate handlers, and the federal department of energy;

(3) Developing and operating a computerized information system to manage low-level radioactive waste data;

(4) Denying and reinstating access to the Hanford low-level radioactive waste disposal facility pursuant to the authority granted under federal law;

(5) Administering and/or monitoring (a) the maximum waste volume levels for the Hanford low-level radioactive waste disposal facility, (b) reactor waste allocations, (c) priority allocations under the Northwest Interstate Compact on Low-Level Radioactive Waste Management, and (d) adherence by other states and compact regions to federal statutory deadlines;

(6) Coordinating the state's low-level radioactive waste disposal program with similar programs in other states; and

(7) Preparing an annual report to the legislature which details the manifested curie content and cubic foot volume of the material received at the Hanford low-level radioactive waste disposal facility in a manner which allows for an assessment of the impact of volume reduction techniques and imposition of any surcharges on the amount of material received.

Sec. 20. Section 5, chapter 207, Laws of 1961 as last amended by section 1, chapter 383, Laws of 1985 and RCW 70.98.050 are each amended to read as follows:

(1) The department of ((~~social and health services~~)) nuclear safety is designated as the state radiation control agency, hereinafter referred to as the agency, and shall be the state agency having sole responsibility for administration of the regulatory, licensing and radiation control provisions of this chapter.

(2) The ((~~secretary of social and health services~~)) director of nuclear safety shall be director of the agency, hereinafter referred to as the ((~~secretary~~)) director, who shall perform the functions vested in the agency pursuant to the provisions of this chapter.

(3) The agency shall appoint a state radiological control officer, and in accordance with the laws of the state, fix his compensation and prescribe his powers and duties.

(4) The agency shall for the protection of the occupational and public health and safety:

(a) Develop programs for evaluation of hazards associated with use of ionizing radiation;

(b) Develop a state-wide radiological baseline beginning with the establishment of a baseline for the Hanford reservation;

(c) Implement an independent state-wide program to monitor ionizing radiation emissions from radiation sources within the state;

(d) Develop programs with due regard for compatibility with federal programs for regulation of byproduct, source, and special nuclear materials;

((~~(c) [(e)]~~)) (e) Conduct environmental radiation monitoring programs which will determine the presence and significance of radiation in the environment and which will verify the adequacy and accuracy of environmental radiation monitoring programs conducted by the federal government at its installations in Washington and by radioactive materials licensees at their installations;

(f) Formulate, adopt, promulgate, and repeal codes, rules and regulations relating to control of sources of ionizing radiation;

(g) Advise, consult, and cooperate with other agencies of the state, the federal government, other states and interstate agencies, political subdivisions, and with groups concerned with control of sources of ionizing radiation;

(h) Have the authority to accept and administer loans, grants, or other funds or gifts, conditional or otherwise, in furtherance of its functions, from the federal government and from other sources, public or private;

(i) Encourage, participate in, or conduct studies, investigations, training, research, and demonstrations relating to control of sources of ionizing radiation, including the collection of statistical data and epidemiological research, where available, on diseases that result from exposure to sources of ionizing radiation;

(j) Collect and disseminate information relating to control of sources of ionizing radiation; including:

(i) Maintenance of a file of all license applications, issuances, denials, amendments, transfers, renewals, modifications, suspensions, and revocations;

(ii) Maintenance of a file of registrants possessing sources of ionizing radiation requiring registration under the provisions of this chapter and any administrative or judicial action pertaining thereto; and

(iii) Maintenance of a file of all rules and regulations relating to regulation of sources of ionizing radiation, pending or promulgated, and proceedings thereon;

(k) In connection with any contested case as defined by RCW 34.04.010 or any other administrative proceedings as provided for in this chapter, have the power to issue subpoenas in order to compel the attendance of necessary witnesses and/or the production of records or documents.

(5) In order to avoid duplication of efforts, the agency may acquire the data requested under this section from public and private entities that possess this information.

Sec. 21. Section 51, chapter 266, Laws of 1986 and RCW 80.50.030 are each amended to read as follows:

(1) There is created and established within the department of nuclear safety the energy facility site evaluation council.

(2) (a) The ((~~chairman of the council shall be appointed by the governor with the advice and consent of the senate~~)) director of nuclear safety, or the director's designee, shall serve as chair of the council, shall have a vote on matters before the council, shall serve for a term coextensive with the term of the governor, and is removable for cause. The ((~~chairman~~)) chair may designate a member of the council to serve as acting ((~~chairman~~)) chair in the event of the ((~~chairman's~~)) chair's absence. ((~~The salary of the chairman shall be determined under RCW 43.03.040. The chairman is a "state employee" for the purposes of chapter 42.18 RCW.~~))

(b) The chairman is the chief executive officer of the council and shall, with the concurrence of the council, execute all official documents, contracts, and other materials on behalf of the council. ((The chairman shall appoint an executive secretary to serve at the pleasure of the chairman. The chairman may appoint a confidential secretary to serve at the pleasure of the chairman. The chairman shall appoint and prescribe the duties of such clerks, employees, and agents as may be necessary to carry out this chapter: PROVIDED, That such persons shall be employed pursuant to chapter 41.06 RCW.)) Staff of the department of nuclear safety shall serve as staff to the council.

(3) The council shall consist of the directors, administrators, or their designees, of the following departments, agencies, commissions, and committees or their statutory successors:

(a) Department of ecology;

(b) Department of fisheries;

(d) Department of parks and recreation;

(e) Department of social and health services;

(f) State energy office;

(g) Department of trade and economic development;

(h) Utilities and transportation commission;

(i) Office of financial management;

(j) Department of natural resources;

(k) Department of community development;

(l) Department of agriculture;

(m) Department of transportation.

(4) The appropriate county legislative authority of every county wherein an application for a proposed site is filed shall appoint a member or designee as a voting member to the council. The member or designee so appointed shall sit with the council only at such times as the council considers the proposed site for the county which he or she represents, and such member or designee shall serve until there has been a final acceptance or rejection of the proposed site;

(5) The city legislative authority of every city within whose corporate limits an energy plant is proposed to be located shall appoint a member or designee as a voting member to the council. The member or designee so appointed shall sit with the council only at such times as the council considers the proposed site for the city which he or she represents, and such member or designee shall serve until there has been a final acceptance or rejection of the proposed site.

(6) For any port district wherein an application for a proposed port facility is filed subject to this chapter, the port district shall appoint a member or designee as a nonvoting member to the council. The member or designee so appointed shall sit with the council only at such times as the council considers the proposed site for the port district which he or she represents, and such member or designee shall serve until there has been a final acceptance or rejection of the proposed site. The provisions of this subsection shall not apply if the port district is the applicant, either singly or in partnership or association with any other person.

Sec. 22. Section 1, chapter 10, Laws of 1979 as last amended by section 47, chapter 466, Laws of 1985 and RCW 43.17.010 are each amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of game, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of trade and economic development, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, ((~~and~~)) (15) the department of community development, and (16) the department of nuclear safety, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 23. Section 2, chapter 10, Laws of 1979 as last amended by section 48, chapter 466, Laws of 1985 and RCW 43.17.020 are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of game, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of trade and economic development, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, (14) the secretary of corrections, ((~~and~~)) (15) the director of community development, and (16) the director of nuclear safety.

Such officers, except the secretary of transportation and the director of game, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041, and the director of game shall be appointed by the game commission.

Sec. 24. Section 2, chapter 189, Laws of 1971 ex. sess. as last amended by section 1, chapter 259, Laws of 1984 and RCW 43.20A.360 are each amended to read as follows:

(1) The secretary is hereby authorized to appoint such advisory committees or councils as may be required by any federal legislation as a condition to the receipt of federal funds by the department. The secretary may appoint state-wide committees or councils in the following subject areas: (a) Health facilities; (b) ((~~radiation control; (c)~~)) children and youth services; ((~~(d)~~)) (c) blind services; ((~~(e)~~)) (d) medical and health care; ((~~(f)~~)) (e) drug abuse and alcoholism; ((~~(g)~~)) (f) social services; ((~~(h)~~)) (g) economic services; ((~~(i)~~)) (h) vocational services; ((~~(j)~~)) (i) rehabilitative services; ((~~(k)~~)) (j) public health services; and on such other subject matters as are or come within the department's responsibilities. The secretary shall appoint committees or councils advisory to the department in each service delivery region to be designated by the secretary. The state-wide and the regional councils shall have representation from both major political parties and shall have substantial consumer representation. Such committees or councils shall be constituted as required by federal law or as the secretary in his or her discretion may determine. The members of the committees or councils shall hold office for three years except in the case of a vacancy, in which event appointment shall be only for the remainder of the unexpired term for which the vacancy occurs. No member shall serve more than two consecutive terms.

((~~(3)~~)) (2) Members of such state advisory committees or councils may be paid their travel expenses in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended. Members of regional advisory committees may, in the discretion of the secretary, be paid the same travel expenses as set forth above.

Sec. 25. Section 4, chapter 295, Laws of 1981 and RCW 43.21F.045 are each amended to read as follows:

The energy office shall have the following duties:

(1) The office shall prepare and update contingency plans for implementation in the event of energy shortages or emergencies. The plans shall conform to chapter 43.21G RCW and shall include procedures for determining when these shortages or emergencies exist, the state officers and agencies to participate in the determination, and actions to be taken by various agencies and officers of state government in order to reduce hardship and maintain the general welfare during these emergencies. The office shall coordinate the activities undertaken pursuant to the subsection with other persons. The components of plans that require legislation for their implementation shall be presented to the legislature in the form of proposed legislation at the earliest practicable date. The office shall report to the governor and the legislature on probable, imminent, and existing energy shortages, and shall administer energy allocation and curtailment programs in accordance with chapter 43.21G RCW.

(2) The office shall establish and maintain a central repository in state government for collection of existing data on energy resources, including:

(a) Supply, demand, costs, utilization technology, projections, and forecasts;

(b) Comparative costs of alternative energy sources, uses, and applications; and

(c) Inventory data on energy research projects in the state conducted under public and/or private auspices, and the results thereof.

(3) The office shall coordinate federal energy programs appropriate for state-level implementation, carry out such energy programs as are assigned to it by the governor or the legislature, and monitor federally funded local energy programs as required by federal or state regulations.

(4) The office shall develop energy policy recommendations for consideration by the governor and the legislature.

(5) The office shall provide assistance, space, and other support as may be necessary for the activities of the state's two representatives to the Pacific northwest electric power and conservation planning council. To the extent consistent with federal law, the office shall request that Washington's council members request the administrator of the Bonneville power administration to reimburse the state for the expenses associated with the support as provided in the Pacific northwest electric power planning and conservation act (P.L. 96-501).

(6) The office shall cooperate with state agencies, other governmental units, and private interests on energy matters.

(7) ((~~The office shall represent the interests of the state in the siting, construction, and operation of nuclear waste storage and disposal facilities.~~

~~(8)~~)) The office shall serve as the official state agency responsible for coordination of energy-related activities except those relating to nuclear safety.

((~~(9)~~)) (8) No later than December 1, 1982, and by December 1st of each even-numbered year thereafter, the office shall prepare and transmit to the governor and the legislature a report on energy supply and demand, conservation, and other factors including but not limited to:

(a) An overview of the anticipated energy situation in the state and region.

(b) An assessment of the energy resources available to the state.

(d) Identification of barriers and constraints to the rapid achievement of conservation and energy resource development, together with proposals for eliminating or reducing the barriers and constraints. The identification shall include but is not limited to statutes and federal, state, or local governmental regulations applicable to the state of Washington.

(e) A summary of the major energy conservation and resource development programs underway in the state.

(f) An analysis of the means by which the projected annual rate of energy demand growth may be reduced together with an estimate of the amount of reduction to be obtained by each of the means analyzed, and the cost of each option.

((~~(10)~~)) (9) The office shall provide support for increasing cost-effective energy conservation, including assisting in the removal of impediments to timely implementation.

((~~(11)~~)) (10) The office shall provide support for the development of cost-effective energy resources including assisting in the removal of impediments to timely construction.

((~~(12)~~)) (11) The office shall adopt rules, under chapter 34.04 RCW, necessary to carry out the powers and duties enumerated in this chapter.

Sec. 26. Section 2, chapter 19, Laws of 1983 1st ex. sess. as amended by section 2, chapter 161, Laws of 1984 and RCW 43.200.020 are each amended to read as follows:

The nuclear waste board shall carry out the authority and responsibility set forth in this chapter. The department ((~~of ecology~~)) is designated as the executive branch agency for participation in the federal nuclear waste policy act of 1982 and the federal low-level radioactive waste policy act of 1980, however the legislature retains an autonomous role with respect to participation in all aspects of the federal nuclear waste policy act of 1982. The board and the department may receive federal financial assistance for carrying out radioactive waste management activities, including assistance for expenses, salaries, travel, and monitoring and evaluating the program of repository exploration and siting undertaken by the federal government.

The board shall submit a written report at least semiannually to the governor and to each member of the legislature on the radioactive waste program, its progress in carrying out its responsibilities, and any recommendations for legislative or administrative action that will improve the state's management and control activity in maximizing public health and safety.

Sec. 27. Section 4, chapter 19, Laws of 1983 1st ex. sess. as amended by section 5, chapter 161, Laws of 1984 and by section 91, chapter 287, Laws of 1984 and RCW 43.200.040 are each reenacted and amended to read as follows:

(1) There is hereby created a nuclear waste board. The board shall consist of the following members: The chairman of the advisory council who shall also serve as chairman of the review board, the director of ecology or the director's designee, the director of the energy office or the director's designee, the commissioner of public lands or the commissioner's designee, the ((~~secretary of social and health services or the secretary's~~)) director of nuclear safety or the director's designee, the chairman of the energy facility site evaluation council or the chairman's designee, the director of the Washington state water research center or the director's designee, four members of the state senate, appointed by the president of the senate, and four members of the house of representatives, appointed by the speaker, who shall be selected from each of the caucuses in each house, but no more than two members of each house shall be of the same political party. Legislative members shall be ex officio nonvoting members of the board and shall serve while members of the legislature, at the pleasure of the appointing officer.

(2) Nonlegislative members shall be compensated in accordance with RCW 43.03.240 and shall receive reimbursement for travel expenses incurred in the performance of their duties in accordance with RCW 43.03.050 and 43.03.060. Legislative members shall receive reimbursement for travel expenses incurred in the performance of their duties in accordance with RCW 44.04.120. The legislature shall seek reimbursement from available sources, including the federal government, for legislative expenditures incurred pursuant to the provisions of this chapter.

Sec. 28. Section 7, chapter 19, Laws of 1983 1st ex. sess. as last amended by section 5, chapter 2, Laws of 1986 and RCW 43.200.070 are each amended to read as follows:

The board and/or the department ((~~of ecology~~)) shall adopt such rules as are necessary to carry out responsibilities under this chapter. The department ((~~of ecology~~)) is authorized to adopt such rules as are necessary to carry out its responsibilities under chapter 43.145 RCW.

Sec. 29. Section 8, chapter 19, Laws of 1983 1st ex. sess. as amended by section 1, chapter 2, Laws of 1986 and RCW 43.200.080 are each amended to read as follows:

The director ((~~of ecology~~)) shall, in addition to the powers and duties otherwise imposed by law, have the following special powers and duties:

(1) To fulfill the responsibilities of the state under the lease between the state of Washington and the federal government executed September 10, 1964, covering one thousand acres of land lying within the Hanford reservation near Richland, Washington. The department ((~~of ecology~~)) may sublease to private or public entities all or a portion of the land for specific purposes or activities which are determined, after public hearing, to be in agreement with the terms of the lease and in the best interests of the citizens of the state consistent with any criteria that may be developed as a requirement by the legislature;

(2) To assume the responsibilities of the state under the perpetual care agreement between the state of Washington and the federal government executed July 29, 1965. In order to finance perpetual surveillance and maintenance under the agreement, the department ((~~of ecology~~)) shall impose and collect fees from parties holding radioactive materials for waste management purposes. The fees shall be established by rule adopted under chapter 34.04 RCW and shall be an amount determined by the department ((~~of ecology~~)) to be necessary to defray the estimated liability of the state. Such fees shall reflect equity between the disposal facilities of this and other states. All such fees, when received by the department ((~~of ecology~~)), shall be transmitted to the state treasurer, who shall act as custodian. The treasurer shall place the money in a special account which may be designated the "perpetual maintenance account." Appropriations are required to permit expenditures and payment of obligations from this account, and the condition of the account and its administration shall be reported biennially to the legislature by the director. Moneys in the perpetual maintenance account shall be invested by the state investment board in the same manner as other state moneys. Any interest accruing as a result of investment shall accrue to the perpetual maintenance account. Additional moneys specifically appropriated by the legislature or received from any public or private source may be placed in the perpetual maintenance account. The perpetual maintenance account shall be used exclusively for surveillance and maintenance costs, or for otherwise satisfying surveillance and maintenance obligations;

(3) To assure maintenance of such insurance coverage by state licensees, lessees, or sublessees as will adequately, in the opinion of the director, protect the citizens of the state against nuclear accidents or incidents that may occur on privately or state-controlled nuclear facilities;

(4) To institute a user permit system and issue site use permits, consistent with regulatory practices, for generators, packagers, or brokers using the Hanford low-level radioactive waste disposal facility. The costs of administering the user permit system shall be borne by the applicants for site use permits. The site use permit fee shall be set at a level that is sufficient to fund completely the executive and legislative participation in activities related to the Northwest Interstate Compact on Low-Level Radioactive Waste Management; and

(5) To make application for or otherwise pursue any federal funds to which the state may be eligible, through the federal resource conservation and recovery act or any other federal programs, for the management, treatment or disposal, and any remedial actions, of wastes that are both radioactive and hazardous at all Hanford low-level radioactive waste disposal facilities.

Sec. 30. Section 9, chapter 161, Laws of 1984 and RCW 43.200.100 are each amended to read as follows:

(1) The board shall be the lead agency in negotiations and shall negotiate agreements and modifications to agreements with the federal department of energy. The legislature may appoint one or more representatives to participate in the negotiations. Additionally the board shall consult with the radioactive waste advisory council, the department ((~~of ecology~~)), and the legislature during the negotiation of any agreement or modification to an agreement with the federal department of energy.

(2) The board shall conduct more than one public hearing on any proposed agreement or modification to an agreement negotiated under subsection (1) of this section. The board shall provide fourteen days notice of the date and location of hearings conducted under this subsection. The board shall prepare a written summary of testimony presented at hearings conducted under this subsection and shall consider the need for modifications to the negotiated agreement as a result of the hearings.

(3) No agreement or modification to an agreement negotiated under subsection (1) of this section may take effect unless it is recommended to be approved by a majority of the members of the full board.

(4) No agreement or modification to an agreement negotiated under subsection (1) of this section may take effect unless it is reviewed under RCW 43.200.110.

(5) In performing their responsibilities under this section, the board and its membership shall use good faith efforts and their best judgments to: (a) Develop an ongoing program to inform the public of its actions and to address concerns of the public as they arise; (b) insure, to the maximum extent feasible, that:

(i) No right or opportunity for participation to which the state is entitled under the Nuclear Waste Policy Act of 1982 (42 U.S.C. Sec. 10101 et seq.) be waived by written agreement;

(ii) The state be afforded adequate remedies in the event of breach of the written agreement;

(iii) Wherever possible, the state obtain through agreement additional rights and privileges which are not inconsistent with the Nuclear Waste Policy Act;

(iv) The written agreement incorporate the funding under provisions of section 116 of the Nuclear Waste Policy Act as a federal contractual obligation with the state of Washington;

(v) The written agreement contains provisions specifying the level of funding that the state will receive from the United States department of energy under the Nuclear Waste Policy Act with respect to but not limited to public health and safety, environmental, socioeconomic, and related impacts which are anticipated at the time of agreements; allows for cost escalation and scope of project changes; and further contains provisions specifying how the amount of funding will be determined with respect to later environmental, socioeconomic and related impacts;

(vi) The consultation and cooperation agreement provided for in the Nuclear Waste Policy Act be executed by the earliest possible date reasonably attainable in order that the state be adequately protected by such agreement at all points in the federal-state relationship; and

(vii) The Washington state legislature be fully apprised of the status of the negotiation of the written agreement.

Sec. 31. Section 6, chapter 2, Laws of 1986 and RCW 43.200.190 are each amended to read as follows:

(1) The department ((~~of ecology~~)) shall perform studies, by contract or otherwise, to define site closure and perpetual care and maintenance requirements for the Hanford low-level radioactive waste disposal facility and to assess the adequacy of insurance coverage for general liability, radiological liability, and transportation liability for the facility.

(2) The department shall complete the studies and report its findings to the legislature by December 31, 1987. The department shall make a preliminary progress report to the legislature by December 31, 1986.

Sec. 32. Section 1, chapter 191, Laws of 1986 and RCW 43.200.200 are each amended to read as follows:

(1) The director of ((~~the department of ecology~~)) nuclear safety shall periodically review the potential for bodily injury and property damage in the packaging, shipping, transporting, treatment, storage, and disposal of commercial low-level radioactive materials under licenses or permits issued by the state.

(2) The director shall, upon the completion of each review, determine by rule the minimum amount of liability coverage that is adequate to protect the state and its citizens from all claims, suits, losses, damages, or expenses on account of injuries to persons and property damage arising or growing out of the packaging, shipping, transporting, treatment, storage, and disposal of commercial low-level radioactive materials.

(3) The director shall require the maximum amount of liability coverage available from private sources, including insurance, surety bonds, corporate guarantees, and other acceptable instruments, unless the director determines that a lesser amount is adequate to protect the state and its citizens pursuant to this section.

(4) In making the determination, the director shall consider:

(a) The nature and purpose of the activity and its potential for injury and damages to or claims against the state and its citizens;

(b) The current and cumulative manifested volume and radioactivity of material being packaged, transported, buried, or otherwise handled;

(c) The location where the material is being packaged, transported, buried, or otherwise handled, including the proximity to the general public and geographic features such as geology and hydrology, if relevant; and

(d) The legal defense cost, if any, that will be paid from the required liability coverage amount.

(5) The director may establish different levels of required liability coverage for various classes of license or permit holders.

(6) The director shall establish by rule the instruments or mechanisms by which a person may demonstrate liability coverage as required by RCW 43.200.210 and 70.98.095. Any instrument or mechanism approved as an alternative to liability insurance shall provide the state and its citizens with a level of financial protection at least as great as would be provided by liability insurance.

(7) The director shall complete the first review and determination, and report the results to the legislature, by December 1, 1987. At least every five years thereafter, the director shall conduct a new review and determination and report its results to the legislature.

Sec. 33. Section 2, chapter 191, Laws of 1986 andRCW 43.200.210 are each amended to read as follows:

(1) The department ((~~of ecology~~)) shall require that any person who holds or applies for a license or permit under this chapter (a) indemnify and hold harmless the state from claims, suits, damages, or expenses on account of injuries to or death of persons and property, arising or growing out of any operations and activities for which the person holds the license or permit, and any necessary or incidental operations, and (b) demonstrate that the person has and maintains liability coverage for the operations for which the state has been indemnified and held harmless pursuant to this section. The agency shall require coverage in an amount determined by the director ((~~of the department of ecology~~)) pursuant to RCW 43.200.200.

(2) The department ((~~of ecology~~)) shall suspend the license or permit of any person required by this section to hold and maintain liability coverage who fails to demonstrate compliance with this section. The license or permit shall not be reinstated until the person demonstrates compliance with this section.

(3) The department ((~~of ecology~~)) shall require (a) that any person required to maintain liability coverage maintain with the agency current copies of any insurance policies, certificates of insurance, or any other documents used to comply with this section, (b) that the agency be notified of any changes in the insurance coverage or financial condition of the person, and (c) that the state be named as an insured party on any insurance policy used to comply with this section.

Sec. 34. Section 3, chapter 383, Laws of 1985 as amended by section 2, chapter 2, Laws of 1986 and RCW 70.98.085 are each amended to read as follows:

(1) The agency is empowered to suspend and reinstate site use permits consistent with current regulatory practices ((~~and in coordination with the department of ecology,~~)) for generators, packagers, or brokers using the Hanford low-level radioactive waste disposal facility.

(2) The agency shall collect a surveillance fee as an added charge on each cubic foot of low level radioactive waste disposed of at the disposal site in this state which shall be set at a level that is sufficient to fund completely the radiation control activities of the agency which are not otherwise covered by cost recovery programs including, but not limited to, any funds from federal sources: PROVIDED, That the surveillance fee shall not exceed four percent of the basic minimum fee charged by an operator of a low-level radioactive waste disposal site in this state. The basic minimum fee consists of the disposal fee for the site operator, the fee for the perpetual care and maintenance fund administered by the state, the fee for the state closure fund, and the tax collected pursuant to chapter 82.04 RCW. Site use permit fees and surcharges collected under chapter 43.200 RCW are not part of the basic minimum fee. The fee shall also provide funds for other state agencies that incur expenses as a result of the control and management of the disposal of low-level radioactive waste in the state of Washington. Disbursements for these purposes to other state agencies shall be by authorization of the ((~~secretary of the department of social and health services~~)) director or the ((~~secretary's~~)) director's designee.

The agency may adopt such rules as are necessary to carry out its responsibilities under this section.

Sec. 35. Section 3, chapter 191, Laws of 1986 and RCW 70.98.095 are each amended to read as follows:

(1) The radiation control agency shall require that any person who holds or applies for a license or permit under this chapter (a) indemnify and hold harmless the state from claims, suits, damages, or expenses on account of injuries to or death of persons and property, arising or growing out of any operations or activities for which the person holds the license or permit, and any necessary or incidental operations, and (b) demonstrate that the person has and maintains liability coverage for the operations for which the state has been indemnified and held harmless pursuant to this section. The agency shall require coverage in an amount determined by the director ((~~of the department of ecology~~)) pursuant to RCW 43.200.200.

(2) The radiation control agency shall suspend the license or permit of any person required by this section to hold and maintain liability coverage who fails to demonstrate compliance with this section. The license or permit shall not be reinstated until the person demonstrates compliance with this section.

(3) The radiation control agency shall require (a) that any person required to maintain liability coverage maintain with the agency current copies of any insurance policies, certificates of insurance, or any other documents used to comply with this section, (b) that the agency be notified of any changes in the insurance coverage or financial condition of the person, and (c) that the state be named as an insured party on any insurance policy used to comply with this section.

Sec. 36. Section 3, chapter 372, Laws of 1985 and RCW 70.98.122 are each amended to read as follows:

The department ((~~of ecology~~)) shall seek federal funding, such as is available under the clean air act (42 U.S.C. Sec. 1857 et seq.) and the nuclear waste policy act (42 U.S.C. Sec. 10101 et seq.) to carry out the purposes of RCW 70.98.050(4)((~~(c)~~)) (e).

Sec. 37. Section 81.80.130, chapter 14, Laws of 1961 and RCW 81.80.130 are each amended to read as follows:

The commission shall supervise and regulate every "common carrier" in this state; make, fix, alter, and amend, just, fair, reasonable, minimum, maximum, or minimum and maximum, rates, charges, classifications, rules, and regulations for all "common carriers"; regulate the accounts, service, and safety of operations thereof; require the filing of reports and other data thereby; and supervise and regulate all "common carriers" in all other matters affecting their relationship with competing carriers of every kind and the shipping and general public: PROVIDED, The commission may by order approve rates filed by common carriers in respect to certain designated commodities and services when, in the opinion of the commission, it is impractical for the commission to make, fix, or prescribe rates covering such commodities and services: PROVIDED FURTHER, That the authority under this section related to nuclear safety is vested in the department of nuclear safety as provided in section 8 of this 1987 act.

Sec. 38. Section 81.80.140, chapter 14, Laws of 1961 and RCW 81.80.140 are each amended to read as follows:

The commission is hereby vested with power and authority, and it is hereby made its duty, to supervise and regulate every "contract carrier" in this state; to fix, alter and amend, just, fair and reasonable classifications, rules and regulations and minimum rates and charges of each such "contract carrier"; to regulate the account, service and safety of operations thereof; and require the filing of reports and of other data thereby; and to supervise and regulate such "contract carriers" in all other matters affecting their relationship with both the shipping and the general public: PROVIDED FURTHER, That the authority under this section related to nuclear safety is vested in the department of nuclear safety as provided in section 8 of this 1987 act.

NEW SECTION. Sec. 39. RCW 43.21F.400, 43.21F.405, 43.21F.410, 43.21F.415, and 43.21F.420 are each recodified as new sections in chapter 43.-- RCW (sections 1 through 9 of this act).

NEW SECTION. Sec. 40. RCW 43.200.090 is decodified.

NEW SECTION. Sec. 41. Sections 1 through 9 of this act shall constitute a new chapter in Title 43 RCW.