HOUSE BILL REPORT
HB 2390
BYRepresentatives 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 REPORTED BY COMMITTEE ON REVENUE FEBRUARY 3, 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 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 fifty 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 at waste reduction and to advise the states on 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 fifty 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.
SUMMARY:
SUBSTITUTE BILL:
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 fifty 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 fifty 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 may determine whether a plan or a progress report is adequate based on compliance with the format established by the department's rules and adherence to the planning process required by the act.
The department may require a hazardous substance user or waste generator to submit a report or to correct an inadequate report. If an adequate report is not submitted, 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 and any plan submitted to the department are 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 ten persons make such a request, the department must review the plan and report its conclusions to those individuals and to the facility.
A person required to submit the plan may request the department to keep certain information confidential if disclosure would adversely affect the person's competitive position.
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. 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 by Standard Industrial Classification code the business 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 pollution prevention plans. 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.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The substitute bill restores existing legislative intent for the Office of Waste Reduction and recognizes that all of society is responsible for waste generation. The substitute clarifies several definitions, and excludes waste generated as a result of a cleanup action. The requirements for the plans are modified to remove standards that may have been difficult to satisfy. The substitute requires more specific information to be included in the executive summary and specifically provides for public access, including a provision allowing neighbors of a facility to petition for review of a plan. The substitute excludes from the planning process a person who generated the threshold quantity of waste because of unique circumstances. The substitute removes a list of SIC codes and gives the department authority to adopt by rule a similar list. The substitute also deletes some directions to the department on the fee which it may impose on waste generators.
CHANGES PROPOSED BY COMMITTEE ON REVENUE (AMENDMENTS): The requirement that facilities submit plans to the Department of Ecology and to the public for review is deleted, and generators are authorized to retain plans at their facilities. Penalty provisions are changed to include penalties for failure to submit an adequate executive summary to the Department of Ecology. It is clarified that technical assistance is available for the preparation or modification of plans, executive summaries, and annual progress reports.
The public is permitted to petition the Department of Ecology to review plans for adequacy and is to be notified of the Department of Ecology's determination. Public records are defined to include a log of reviews conducted by the Department of Ecology, the department's findings regarding adequacy of plans, and descriptions of enforcement actions taken by the Department of Ecology. The Department of Ecology is authorized to aggregate data contained in progress reports for purposes of developing a public record.
Potential waste generators are exempted from the $35 fee instead of the fee assessed on facilities preparing plans if they are exempt from the Business & Occupation tax for having annual income less than $12,000 per year. It is clarified that facilities generating less than 2,640 pounds of hazardous waste are exempt from the fee assessed on facilities preparing plans. This fee may not exceed $50 for facilities generating 2,640 to 4,000 pounds of hazardous waste. The Department of Ecology is directed to classify potential generators by their primary business activity rather than by Standard Industrial Classification (SIC) code for purposes of imposing the fee.
Revenue: The bill has a revenue impact.
Fiscal Note: Requested January 30, 1990.
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.