SENATE BILL REPORT

SB 5268

BYSenators Benitz, Saling, Hayner, Warnke, Owen, Smith, Smitherman, Amondson, Stratton, Matson, Nelson, Craswell, Sellar, Sutherland, Madsen, Johnson and von Reichbauer

Providing for the expenditure surcharges assessed on radioactive waste disposal.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 3, 1989

Majority Report:  That Substitute Senate Bill No. 5268 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Nelson, Stratton, Sutherland, Williams.

Senate Staff:Phil Moeller (786-7455)

                  February 6, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1989; March 6, 1989

Majority Report:  That Second Substitute Senate Bill No. 5268 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Matson, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Williams, Wojahn.

Senate Staff:William Bafus (786-7715)

                  March 8, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 1989

BACKGROUND:

The commercial low-level radioactive waste disposal facility at Hanford is one of three in the nation.  Concern over a lack of other sites led to federal legislation to force regions throughout the country to form compacts and develop new disposal sites.  Washington is currently the host member of one of those compacts along with Alaska, Hawaii, Idaho, Montana, Oregon and Utah.

One element of the federal legislation allowed host states to assess surcharges on each cubic foot of waste which was delivered for disposal from outside the compact region.  These surcharges began in 1986 at $10 per cubic foot, rose to $20 per cubic foot in 1988, and will rise to $40 per cubic foot in 1990.  The state retains 75 percent of these funds, which are deposited in the general fund.  The remaining 25 percent are transferred to the United States Department of Energy to aid regions developing new sites.  These surcharges will end after December 31, 1992 when all disposal facilities must cease accepting out-of-region waste under current federal law.

The Hanford site received approximately 400,000 cubic feet of waste in 1988, of which approximately 275,000 arrived from outside the region and was subject to the surcharge. 

The Hanford disposal facility is on land subleased from the state.  The state leases the land from the federal government and this land must eventually be returned.  A perpetual maintenance account has been established to assure that adequate funds are available to address the ongoing care of the site.  It is presently being funded by a perpetual care and maintenance fee of $1.75 per cubic foot of waste deposited at the facility.  The fund presently contains approximately $16.8 million.  Concern has been raised that if a significant amount of additional funds are needed for this account, the state and waste generators from this region could bear a disproportionate share of these costs.

SUMMARY:

When surcharges are assessed on low-level waste from outside the compact region, 50 percent of the retained amount is transferred to the perpetual care and maintenance account for use for post-closure surveillance and maintenance at the Hanford low-level radioactive waste facility.

EFFECT OF PROPOSED SUBSTITUTE:

Funds are to be used for surveillance and maintenance costs after the disposal site is closed or for other post-closure surveillance and maintenance obligations the state may incur.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

A perpetual maintenance fund is created in the state treasury.  This fund contains a site closure account and a perpetual surveillance and maintenance account.  Existing balances held in the treasury are to be transferred to these accounts.  Funds in the site closure account are to be exclusively for reimbursement of the site operator's decommissioning and closure costs under the terms of its license and sublease with the state.  Funds in the perpetual surveillance and maintenance account are to be used exclusively for the state's post-closure surveillance and maintenance obligations under its lease and perpetual care agreement with the federal government.

The state general fund keeps all surcharge revenue up to $5 million a fiscal year.  Any surcharge revenue above $5 million, and any other revenue received for perpetual maintenance, is placed in the perpetual maintenance fund, divided equally between the site closure account and the perpetual surveillance and maintenance account.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: ENERGY & UTILITIES:  Barry Bede, US Ecology (pro)

Senate Committee - Testified: WAYS & MEANS:  Joanne Buehler, US Ecology (pro); Barry Bede, US Ecology (pro)