HOUSE BILL REPORT
ESHB 2390
As Amended by the Senate
BYHouse Committee on Environmental Affairs (originally sponsored by Representatives Rust, Phillips, Jacobsen, Nelson, Valle, Pruitt, Sprenkle, P. King, Heavey, Hine, R. Fisher, Rector, Dellwo, Basich, O'Brien, Spanel, Brekke and Crane; by request of Governor Gardner)
Regulating hazardous substances and waste.
House Committe on Environmental Affairs
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (8)
Signed by Representatives Rust, Chair; Valle, Vice Chair; Brekke, G. Fisher, Fraser, Phillips, Pruitt and Sprenkle.
Minority Report: Do not pass. (3)
Signed by Representatives D. Sommers, Ranking Republican Member; Schoon and Van Luven.
House Staff:Harry Reinert (786-7110)
Rereferred House Committee on Revenue
Majority Report: The substitute bill by Committee on Environmental Affairs be substituted therefor and the substitute bill as amended by Committee on Revenue do pass. (14)
Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Assistant Ranking Republican Member; Appelwick, Brumsickle, Fraser, Fuhrman, Grant, Haugen, Morris, Phillips, Rust and Silver.
House Staff: Robin Appleford (786-7093)
AS PASSED HOUSE FEBRUARY 13, 1990
BACKGROUND:
WASTE REDUCTION: In 1983, the Legislature enacted a measure which established priorities for the management and regulation of hazardous wastes. The Legislature directed that waste reduction was the first priority in the management of hazardous waste. The remaining priorities, in descending order, are waste recycling, treatment, incineration, solidification or stabilization, and landfill. The Department of Ecology was given responsibility for conducting a study on the best management practices for different categories of waste.
In 1988 the Legislature established the Office of Waste Reduction within the Department of Ecology. The Office of Waste Reduction provides assistance to generators of both hazardous and solid waste in methods to reduce waste generation. The office is also directed to provide advice to waste generators on waste reduction techniques, maintain an information and referral service, coordinate public education programs, and recommend appropriate courses and curricula for the state's colleges and universities.
In providing advice to a waste generator, the office may visit the generator's facilities. The person providing the advice may not have any enforcement authority. Proprietary information obtained during the course of the visit may not become part of the information database maintained by the office.
In the last year, at least three states have enacted measures to encourage reduction in the use of hazardous substances and the generation of hazardous waste. Oregon has adopted a program requiring hazardous waste generators required to report under federal statutes to develop plans for reducing hazardous substance use and waste generation and to establish specific performance goals for the reduction or hazardous substance use and waste generation. The state does not impose any specific performance requirements and does not impose penalties for failing to satisfy the goals established in the plans. California has enacted a measure similar to Oregon's, requiring waste generators to prepare plans on methods to reduce the use of hazardous substances and the generation of hazardous waste. As with the Oregon statute, California does not impose specific performance requirements. However, if a generator fails to implement measures identified in the generator's plan without reason, California may impose penalties on the generator until those measures are implemented. Massachusetts has enacted a measure which provides for plans for the reduction in the use of toxic substances. The Massachusetts statute also establishes a state-wide goal to reduce by 50 percent the use of toxic substances by 1997. In addition, there is legislation pending in Congress which would encourage states to adopt similar measures.
The governors of Washington, Oregon, Idaho, and Alaska, together with the Environmental Protection Agency, have formed the Pacific Northwest Hazardous Waste Advisory Council to support efforts of waste reduction and to advise the states on the need for treatment, storage, and disposal facilities. The council has made a number of recommendations, including a recommendation that the Pacific Northwest establish a goal to reduce the generation of hazardous waste by 50 percent by 1995. The council stated that this should be a matter of policy, not a regulatory requirement.
HAZARDOUS WASTE FEES: In 1983, the Legislature enacted a program establishing fees on the generation of hazardous waste. These fees were assessed against generators of hazardous waste and based on a generator's gross income. The maximum fee was $7,500. A similar fee was imposed against treatment, storage, and disposal facilities. In 1987 the Legislature repealed these fees when it enacted the legislative alternative to Initiative 97. Initiative 97, approved by the voters in the 1988 general election, repealed the repealer of the hazardous waste fees and directed the Department of Ecology to propose to the Legislature a fee structure that will be an incentive to waste reduction and recycling. A Thurston County Superior Court decision has found that Initiative 97 could not revive the statutes that had been repealed by the Legislature.
Most businesses in the state are required to pay a tax on gross income, the business and occupation tax. A business that has sales or income of less than $1,000 a month is exempt from the tax.
SUMMARY:
WASTE REDUCTION: The Legislature recognizes that business, individuals, and government contribute to hazardous waste generation. The Legislature adopts the Pacific Northwest Hazardous Waste Advisory Council recommendation that hazardous waste generation should be reduced by 50 percent by 1995. The Legislature recognizes that many individual businesses may already have made substantial reductions in hazardous waste generation, and that some processes may not be capable of being modified to reduce hazardous waste. The 50 percent goal may not be applied as a regulatory requirement.
The duties of the Office of Waste Reduction are modified to specifically include assistance in hazardous substance use reduction efforts and the completion of plans for the reduction of hazardous waste. The office is also directed to establish an intern program in cooperation with colleges and universities to provide technical assistance to business.
An employee of the department providing advisory services during a visit to a business may not exercise any enforcement authority. The department may include proprietary information in its database on waste reduction techniques with the written permission of the business.
Hazardous waste generators who generate more than 2,640 pounds of hazardous waste each year and hazardous substance users required to report under federal law are required to prepare plans. Hazardous waste generated for beneficial use does not count in determining whether a plan must be prepared. A person who, because of unique circumstances, generates sufficient waste to be required to complete a plan, may petition the department for an exclusion. The plans are designed to reduce the use of hazardous substances and the generation of hazardous wastes. A single plan may cover more than one facility.
The Department of Ecology is directed to adopt rules by April 1, 1991 for the preparation of the plans. The rules must require the plans to address substance use reduction, waste reduction, recycling, and treatment in descending order. The plans must include: a policy stating management support for the plan; an analysis of current hazardous substance use and waste generation, reduction, treatment and recycling activities; further opportunities to reduce waste; and impediments to further reduction in use or generation of hazardous substances. The plans must also contain specific performance goals of the anticipated reduction in the use of hazardous substances, and in wastes generated, recycled, or treated. Plans are to be designed on a five year implementation schedule and must be updated every five years.
An executive summary of the plan must also be prepared and must include a summary of the hazardous substances used and wastes generated, a description of the options chosen to reduce substances used or waste generated, and the specific performance goals. The executive summary must be submitted to the department.
Plans for generators of more than 50,000 pounds of hazardous waste and for hazardous substance users must be completed and the executive summary submitted to the department not later than September 1, 1992. The following year, generators of between 7,000 and 50,000 pounds of hazardous waste must complete their plans and submit their executive summaries. The next year, all other covered generators must complete their plans and submit their reports. In subsequent years, newly covered generators and users must submit their plans by September 1 of the year following the year they became subject to the planning requirements.
Annual reports must also be prepared by hazardous waste generators and hazardous substance users. The reports must be submitted to the department and include a description of the progress made towards the specific performance goals included in the generator's plan.
The department shall determine whether a plan, executive summary, or progress report is adequate based on whether the document is complete and complies with the planning process required by the act.
The department may require a hazardous substance user or waste generator to prepare a plan, executive summary, or annual report or to correct an inadequate plan, summary, or progress report. If after an opportunity to correct the document an adequate plan, summary, or annual report is not prepared the Department of Revenue will assess a penalty of the greater of $1,000 or three times the generator's annual fee. In addition, the generator will owe the department a surcharge of three times the disposal fee for any waste disposed of in this state.
The executive summary and annual progress reports submitted to the department are available for public inspection. The plan is retained at the facility and is not available for public inspection. Persons living within the vicinity of a facility may ask the department to review the plan of a facility. If at least 10 persons make such a request, the department must review the plan and report its conclusions to those individuals and to the facility.
A person submitting an executive summary or progress report may request the department to keep certain information confidential if disclosure would adversely affect the person's competitive position. While the department is reviewing that request, the executive summary or progress report is not available for public inspection.
HAZARDOUS WASTE FEES: A fee of $35 is imposed on every person doing business in the state who generates or is in a type of business which might generate hazardous waste. A business exempt from paying business and occupation tax because the business does not meet the threshold is exempt from the $35 annual fee. The revenue generated from the fee is subject to appropriation by the Legislature and may only be used to support the activities of the Office of Waste Reduction. The Department of Ecology will adopt rules defining the businesses that will be required to pay the annual fee.
The Department of Ecology is directed to establish a fee structure to be imposed against those required to prepare plans. A facility that generates less than 2,640 pounds of hazardous waste is not required to pay this fee. The maximum annual fee that may be imposed against a facility that generates 4,000 pounds or less of hazardous waste is $50. The revenue generated is to be used to support the department's activities in reviewing the plans and supporting the consultation program on waste reduction technologies. The department may not generate more than one million dollars a year in fees. The maximum fee that may be assessed is $10,000 for each plan. A hazardous waste generator will pay the fee beginning with the year the generator is first required to submit a plan. The fee cannot include waste recycled for beneficial use.
A hazardous waste assistance account is established to receive the hazardous waste fees generated and any penalties imposed as a result of a failure to prepare an adequate pollution prevention plan. Money in the account may be used to provide technical assistance and compliance education. Grants may also be provided to local governments to provide assistance to small quantity generators under local government moderate risk waste plans.
The existing hazardous waste fees are repealed.
EFFECT OF SENATE AMENDMENTS: The Senate amendment makes several technical changes. In addition, it modifies the manner in which hazardous waste which is recycled for beneficial use will be counted in determining the quantity of hazardous waste generated. The amendment provides that the initial quantity of hazardous substances will not be counted in the waste generated. The amendment also allows an appeal to the Pollution Control Hearings Board of a surcharge imposed by the Department of Ecology. Finally, the amendment exempts from the definition of a hazardous substance user a person who distributes or uses fertilizers or pesticides for commercial agricultural applications.
Revenue: The bill has a revenue impact.
Fiscal Note: Available.
Effective Date:The bill contains an emergency clause and takes effect immediately.
House Committee ‑ Testified For: (Environmental Affairs) Terry Husseman, Department of Ecology; Liz Tennant, Seattle Audubon Society; Ken Murphy, Washington Farm Bureau; Carol Dansereau, Washington Toxics Coalition; Collins Sprague, Association of Washington Business; Rick Bunch, WASHPIRG; Quincy Sugarman, Oregon PIRG; Gary Smith, IBA; and Bob Taylor, Alcoa Aluminum Company.
(Revenue) Terry Husseman, Department of Ecology.
House Committee - Testified Against: (Environmental Affairs) No one.
(Revenue) No one.
House Committee - Testimony For: (Environmental Affairs) Hazardous waste reduction is the state's priority means for reducing the amount or hazardous waste that must be disposed. The bill will give assistance to all businesses, both large and small, to reduce the amount of waste that must be disposed. The bill also establishes a planning process for businesses to examine their current waste generation practices and develop methods to reduce the amount of waste generated.
(Revenue) Similar to testimony in Environmental Affairs Committee.
House Committee - Testimony Against: (Environmental Affairs) None.
(Revenue) None.
VOTE ON FINAL PASSAGE:
Yeas 98