SENATE BILL REPORT

EHB 2571

BYRepresentatives Sprenkle, Walker, Valle, D. Sommers, Rust, Schoon, Brekke,G. Fisher, Pruitt, Fraser, May, Spanel and Todd

Exempting motor freight carriers who haul recyclables from certain utilities and transportation commission regulation.

House Committe on Environmental Affairs

Senate Committee on Transportation

Senate Hearing Date(s):February 21, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; Barr, Benitz, DeJarnatt, Murray, Patrick, Sellar.

Senate Staff:Mary McLaughlin (786-7309)

                  February 23, 1990

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 21, 1990

BACKGROUND:

Trucking companies transporting only recyclables are regulated as common and contract carriers by the Utilities and Transportation Commission (UTC).  These carriers are regulated under the motor freight carrier statutes rather than the solid waste collection company statutes because the commodity has value and is recycled rather than being transported for disposal only. 

The entry standard is Public Convenience and Necessity (PC&N).  The applicant must prove that there is a need for the service and that the proposed service will not negatively impact existing carriers providing the similar services.  The carriers may file their own rates or use the UTC published hourly rates.

When a carrier co-mingles garbage and recyclable materials, the company is regulated as a solid waste collection company.  Solid waste carriers are subject to the PC&N entry standard and file their own rates.

SUMMARY:

Certain movements of "recovered materials" by motor freight carriers (1) are exempt from rate regulation by the Utilities and Transportation Commission (UTC), and (2) qualify under the UTC's more relaxed entry standard of Fit, Willing and Able.  These provisions apply when transporting (1) recovered materials from a site generating more than 50 cubic yards of recovered materials per month to a reprocessing facility or end-use manufacturing site, (2) recovered materials from a reprocessing facility to end- use manufacturing site, and (3) mixed waste paper from a reprocessing facility to an energy recovery facility.  Qualifying recyclers are subject to a one-time $25 registration fee, payment of the annual regulatory fee and the UTC's safety and insurance requirements.

"Recovered materials" are materials collected for recycling or reuse, such as paper, glass, aluminum, plastics, used wood, metals, yardwaste, used oil and tires that would otherwise be transported to a disposal or incineration site.  Wood waste generated by a logging, chipping, or milling activity is not a recovered material.

The Department of Trade and Economic Development, in conjunction with the UTC and Department of Ecology will conduct a study on the effect the exemption has on (1) the cost of transportation, (2) the volume of materials transported, (3) the number safety violations and traffic accidents, and (4) the availability of service from rural areas.  The results of the study are to be presented to the Legislature by October 1, 1993.  The UTC will adopt rules requiring recovered material carriers to submit information necessary for the study.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDEMENTS:

The striking amendment replaces the provisions of EHB 2571 with the text of ESSB 6700.  Fit, Willing, and Able is the entry standard, no rate regulation is required, and the carriers are subject to the annual regulatory fee and safety and insurance provisions of the commission.  The provisions apply to movements of recovered materials from a centralized collection point to a reprocessing or end-use manufacturing facility.  A study is required and a June 30, 1993 sunset is imposed.

Senate Committee - Testified: Representative Sprenkle, prime sponsor; Lew Holcomb, Washington State Recycling Association; Greg Wright, Washington State Recycling Association; John Ficker, Weyerhaeuser; Ian McGowan, Fibers International; John Paul Jones, Washington Waste Management Association; Joe Keefe, UTC