AN ACT Relating to solid waste; amending RCW 70.95.010, 70.95.030, 70.95.100, 70.95.110, 70.95.090, 70.95.160, 81.77.010, 81.77.020, 36.58.040, 35.21.120, 70.95.280, 81.77.030, 43.21A.520, 35.21.130, 36.58.010, 35.23.352, 39.30.040, 43.160.010, 43.160.060, and 81.77.080; amending section 15, chapter 528, Laws of 1987 as amended by section 6, chapter 184, Laws of 1988 (uncodified); reenacting and amending RCW 36.32.250; adding new sections to chapter 70.95 RCW; adding a new section to chapter 36.58 RCW; adding a new section to chapter 35.21 RCW; adding new sections to chapter 70.95C RCW; adding a new section to chapter 82.02 RCW; adding a new section to chapter 43.160 RCW; adding a new section to chapter 43.21A RCW; adding new sections to chapter 81.77 RCW; adding a new section to chapter 82.18 RCW; adding a new chapter to Title 43 RCW; adding a new chapter to Title 70 RCW; adding a new chapter to Title 81 RCW; adding a new chapter to Title 82 RCW; creating new sections; prescribing penalties; making appropriations; providing expiration dates; providing effective dates; and declaring an emergency.

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

Sec. 1. Section 1, chapter 134, Laws of 1969 ex. sess. as last amended by section 1, chapter 345, Laws of 1985 and RCW 70.95.010 are each amended to read as follows:

The legislature finds:

(1) Continuing technological changes in methods of manufacture, packaging, and marketing of consumer products, together with the economic and population growth of this state, the rising affluence of its citizens, and its expanding industrial activity have created new and ever-mounting problems involving disposal of garbage, refuse, and solid waste materials resulting from domestic, agricultural, and industrial activities.

(2) Traditional methods of disposing of solid wastes in this state are no longer adequate to meet the ever-increasing problem. Improper methods and practices of handling and disposal of solid wastes pollute our land, air and water resources, blight our countryside, adversely affect land values, and damage the overall quality of our environment.

(3) Considerations of natural resource limitations, energy shortages, economics and the environment make necessary the development and implementation of solid waste recovery and/or recycling plans and programs.

(4) ((~~The following priorities in the management of solid waste are necessary and should be followed in order of descending priority as applicable:~~

~~(a) Waste reduction;~~

~~(b) Waste recycling;~~

~~(c) Energy recovery or incineration; and~~

~~(d) Landfill.~~

~~(5)~~)) Waste reduction must become a fundamental element of solid waste management. It is therefore necessary to change manufacturing and purchasing practices and waste generation behaviors to reduce the amount of waste that becomes a governmental responsibility.

(5) Source separation of waste must become a fundamental element of solid waste management. Collection and handling strategies should have, as an ultimate goal, the source separation of all materials with resource value or environmental hazard.

(6) (a) It is the responsibility of every person to minimize his or her production of wastes and to separate recyclable or hazardous materials from mixed waste.

(b) It is the responsibility of governmental entities in the state to provide for a waste management infrastructure to fully implement waste reduction and source separation strategies and to process and dispose of remaining wastes in accordance with strict environmental safeguards.

(c) It is the responsibility of local governments to assume primary responsibility for solid waste management and to develop and implement aggressive and effective waste reduction and source separation strategies.

(d) It is the responsibility of state government to ensure that local governments are providing adequate source reduction and separation opportunities and encouragements to all, including persons in both rural and urban areas, and nonresidential waste generators such as commercial, industrial, and institutional entities; and to provide local governments with adequate financial resources to accomplish this responsibility. It is further the responsibility of state government to investigate the feasibility and environmental safety of mixed waste processing and disposal methods.

(7) The following priorities in the management of solid waste are built upon waste reduction and source separation as fundamental strategies and shall be followed in order of descending priority as applicable:

(a) Recycling;

(b) Incineration of source-separated waste;

(d) Incineration or landfilling of mixed waste.

(8) It is the state's goal to achieve a fifty percent waste reduction and recycling rate by 1995.

(9) Steps should be taken to make recycling at least as affordable and convenient as mixed waste disposal.

(10) It is necessary to compile and maintain adequate data on the types and quantities of solid waste that are being generated and to monitor how the various types of solid waste are being managed.

(11) Vehicle batteries should be recycled and the disposal of vehicle batteries into a landfill or incineration system should be discouraged.

(12) Excessive and nonrecyclable packaging of products should be avoided.

(13) Comprehensive education should be conducted throughout the state so that citizens of all ages are informed of the need to reduce, source separate, and recycle solid waste.

(14) All government entities in the state should set an example for the citizens of the state by implementing aggressive waste reduction and recycling programs at their workplaces and by purchasing products that are made from recycled materials and are recyclable.

(15) To ensure the safe and efficient operations of solid waste disposal facilities, it is necessary for operators and regulators of landfills and incinerators to receive training and certification.

(16) It is necessary to provide adequate funding to all levels of government so that successful waste reduction and recycling programs can be implemented.

(17) There is an imperative need to anticipate, plan for, and accomplish effective storage, control, recovery, and recycling of discarded ((~~vehicle~~)) tires and other problem wastes with the subsequent conservation of resources and energy.

Sec. 2. Section 3, chapter 134, Laws of 1969 ex. sess. as last amended by section 3, chapter 345, Laws of 1985 and RCW 70.95.030 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise:

(1) "City" means every incorporated city and town.

(2) "Committee" means the solid waste advisory committee.

(3) "Department" means the department of ecology.

(4) "Director" means the director of the department of ecology.

(5) "Disposal site" means the location where any final treatment, utilization, processing, or depository of solid waste occurs.

(6) "Functional standards" means criteria for solid waste handling expressed in terms of expected performance or solid waste handling functions.

(7) "Jurisdictional health department" means city, county, city-county, or district public health department.

(8) "Person" means individual, firm, association, copartnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever.

(9) "Recyclable materials" means those solid wastes which can be diverted for recycling or reuse which otherwise would be disposed of through landfilling or incineration.

(10) "Solid waste" means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, demolition and construction wastes, abandoned vehicles or parts thereof, and ((~~discarded commodities~~)) recyclable materials.

((~~(10)~~)) (11) "Solid waste handling" means the management, storage, collection, transportation, treatment, utilization, processing, and final disposal of solid wastes, including the recovery and recycling of materials from solid wastes, the recovery of energy resources from such wastes or the conversion of the energy in such wastes to more useful forms or combinations thereof.

((~~(11)~~)) (12) "Source separation" means the separation of different kinds of solid waste at the place where the waste is created.

(13) "Waste reduction" means reducing the amount or type of waste generated or reusing waste materials.

((~~(12) "Waste~~)) (14) "Recycling" means ((~~reusing waste materials and extracting valuable materials from a waste stream~~)) transforming waste materials into usable materials for use other than landfill disposal or incineration.

((~~(13)~~)) (15) "Energy recovery or incineration" means reducing the volume of wastes by use of an enclosed device using controlled flame combustion.

((~~(14)~~)) (16) "Landfill" means a disposal facility or part of a facility at which waste is placed in or on land and which is not a land treatment facility.

((~~(15)~~)) (17) "Vehicle" includes every device physically capable of being moved upon a public or private highway, road, street, or watercourse and in, upon, or by which any person or property is or may be transported or drawn upon a public or private highway, road, street, or watercourse, except devices moved by human or animal power or used exclusively upon stationary rails or tracks.

(18) "Mixed waste processing" means separating solid waste at a facility for the purpose of extracting material for recycling, composting, or incineration.

Sec. 3. Section 10, chapter 134, Laws of 1969 ex. sess. as amended by section 6, chapter 123, Laws of 1984 and RCW 70.95.100 are each amended to read as follows:

(1) The department shall provide to counties and cities technical assistance including, but not limited to, planning guidelines in the preparation, review, and revision of solid waste management plans required by this chapter. Each comprehensive county solid waste management plan or plan revisions shall be submitted to the department for technical review and approval. If the department does not disapprove of any plan or plan revisions within sixty days of the date of its submittal to the department, the plan or plan revisions shall be deemed approved. The department shall approve each plan unless the department makes specific findings supporting a disapproval, and states specific actions or revisions that, when completed, will result in approval. The department may recommend additional revisions ((~~essential~~)) it considers to be appropriate to the achievement of effective solid waste management and the purposes of this chapter. Guidelines prepared under this chapter shall be consistent with the provisions of this chapter and the state solid waste management plan prepared pursuant to RCW 70.95.260.

(2) Local governments may submit draft plans to the department for technical review and approval prior to local government adoption of the plan. When the department has approved a draft plan, its approval shall become final upon the adoption of the plan by the local governments participating in the plan.

(3) If the department disapproves a plan, the submitting entity may appeal the decision under chapter 34.05 RCW. The hearing shall be conducted by an administrative law judge. Reviews by such judge shall be limited to a determination of the reasonableness of the specific findings, actions, and revisions which resulted in a disapproval under subsection (1) of this section.

Sec. 4. Section 11, chapter 134, Laws of 1969 ex. sess. as amended by section 7, chapter 123, Laws of 1984 and RCW 70.95.110 are each amended to read as follows:

(1) The comprehensive county solid waste management plans and any city solid waste management plans prepared in accordance with RCW 70.95.080 shall be maintained in a current condition and reviewed and revised periodically by counties and cities as may be required by the department. Upon each review such plans shall be extended to show long-range needs for solid waste handling facilities for twenty years in the future, and a revised construction and capital acquisition program for six years in the future. Each revised solid waste management plan shall be submitted to the department.

Each plan shall be reviewed and revised within five years of June 7, 1984, and thereafter shall be reviewed, and revised if necessary, at least once every five years.

(2) Cities and counties preparing solid waste management plans shall submit the waste reduction and recycling element required in RCW 70.95.090 to the department no later than:

(a) July 1, 1991, for class one areas;

(b) January 1, 1992, for class two areas;

(d) January 1, 1993, for class four areas.

(3) The waste reduction and recycling element of local comprehensive solid waste management plans shall assign levels of recycling services to the classes of areas defined as follows:

(a) Class one areas are the urban areas within the counties of Spokane, Snohomish, King, Pierce, Thurston, and Kitsap.

(b) Class two areas are the urban areas in other counties located west of the crest of the Cascade mountains.

(c) Class three areas are the urban areas in counties east of the crest of the Cascade mountains, except for Spokane county.

(d) Class four areas are rural areas in Washington.

(4) Cities and counties shall begin implementing programs to collect source-separated materials no later than one year following the adoption and approval of the plan revisions and be fully implemented within two years.

NEW SECTION. Sec. 5. A new section is added to chapter 70.95 RCW to read as follows:

(1) Levels of service shall be defined in the waste reduction and recycling element of local comprehensive solid waste management plans and shall be consistent with the services defined in this section. In determining which service level to provide for residential and nonresidential waste generators in each community, local governments shall classify areas with respect to total population and population density within a contiguous area, and develop clear criteria for designating areas as urban or rural. Local governments shall use the following guidelines in designating urban and rural areas:

(a) Urban areas shall include:

(i) Any city having a population of at least seventeen thousand five hundred;

(ii) An area of the state that comprises contiguous incorporated areas and unincorporated areas that together have a minimum population of fifty thousand;

(iii) A population density of one thousand persons per square mile; or

(iv) Large concentrations of nonresidential areas (such as industrial parks, office areas, and major airports), which have at least one-quarter of their boundary contiguous to an area meeting the population standards of this section;

(b) Rural areas shall include all areas not designated as urban.

(2) For purposes of this chapter "primary level recycling service" means the most convenient services for recovery of source-separated recyclable materials from residential and nonresidential waste generators. These services shall include at a minimum:

(a) Collection of source-separated recyclables from all residential dwellings containing four or fewer units for the following materials: Newspaper, glass containers, tin-plated steel food and beverage cans, aluminum cans, and mixed waste paper, unless the department finds that markets are not adequate to consume the majority of the mixed waste paper collected in that region. Collection services shall be as convenient to the generator as is economically practical and should be as convenient as disposing of mixed solid waste. Convenience shall be determined by considering, at a minimum, frequency of collection and the provision of household recycling containers.

An alternative to collection from the dwelling may be provided if the plan is designed to achieve the same or greater recovery and a reasonable level of public participation. The performance of such alternative programs shall be annually monitored for at least four years. If, after two years of monitoring, the data indicates that the comparative level of recovery is not being achieved, modifications shall be considered to improve the recovery rate. At the end of four years, the alternative shall be redesigned if it fails to achieve recovery and participation rates at least equal to demographically similar areas using curbside collection of recyclable materials.

(b) Collection of yard waste, or other methods to divert yard waste from disposal. These services shall be available to all residential dwellings containing four or fewer units, after such time as the local government submitting the plan finds that composted yard waste has adequate markets or disposal capacity within or near the service area to consume the majority of the material collected.

(d) Collection programs for source-separated solid waste at nonresidential sites.

(e) Programs for mixed waste processing. These services shall be provided if:

(i) Significant amounts of recyclable materials remain in the waste; and

(ii) The local government determines mixed waste processing to be cost-effective and technologically feasible.

(f) Programs to educate and promote the concept of, and reasons for, recycling. Such programs shall include, but not be limited to: Notifying residents and businesses of all available recycling opportunities, providing specific information about preparation of materials, and identifying the location of facilities and service schedules. Promotional methods shall use mass media.

(3) For the purpose of this chapter, "threshold level recycling services" means a basic level of recycling services that will be provided under the most difficult conditions for providing convenient services. These services shall include at least the following:

(a) Drop-off or buy-back centers, or both, located at each solid waste processing or disposal site or at a location at least as convenient.

(b) Drop-off sites for yard waste at each solid waste processing or disposal site or at a location at least as convenient.

(c) Nonresidential recycling services may be targeted to service concentrations of generators including ten or more businesses within one square mile.

(d) Programs to educate and promote the concept of, and reasons for, recycling. Such programs shall include, but not be limited to: Notifying residents and businesses of all available recycling opportunities, providing specific information about preparation of materials, and identifying the location of facilities and service schedules. Promotional methods shall use mass media.

(4) Upon revision in accordance with RCW 70.95.110(2), local comprehensive solid waste management plans shall provide for primary level services in all class one, two, and three areas, and threshold level services in all class four areas.

(5) Beginning on December 31, 1989, and annually thereafter, the department shall complete a review of the economic and technical feasibility of increasing the level of service in each class of area and report its findings to local governments and the legislature.

Sec. 6. Section 9, chapter 134, Laws of 1969 ex. sess. as last amended by section 5, chapter 123, Laws of 1984 and RCW 70.95.090 are each amended to read as follows:

Each county and city comprehensive solid waste management plan shall include the following:

(1) A detailed inventory and description of all existing solid waste handling facilities including an inventory of any deficiencies in meeting current solid waste handling needs((.));

(2) The estimated long-range needs for solid waste handling facilities projected twenty years into the future((.));

(3) A program for the orderly development of solid waste handling facilities in a manner consistent with the plans for the entire county which shall:

(a) Meet the minimum functional standards for solid waste handling adopted by the department and all laws and regulations relating to air and water pollution, fire prevention, flood control, and protection of public health;

(b) Take into account the comprehensive land use plan of each jurisdiction;

(d) Contain a plan for financing both capital costs and operational expenditures of the proposed solid waste management system((.));

(4) A program for surveillance and control((.));

(5) A current inventory and description of solid waste collection needs and operations within each respective jurisdiction which shall include:

(a) Any franchise for solid waste collection granted by the utilities and transportation commission in the respective jurisdictions including the name of the holder of the franchise and the address of his place of business and the area covered by his operation;

(b) Any city solid waste operation within the county and the boundaries of such operation;

(c) The population density of each area serviced by a city operation or by a franchised operation within the respective jurisdictions;

(d) The projected solid waste collection needs for the respective jurisdictions for the next six years((.));

(6) A comprehensive waste reduction and recycling element containing provisions pursuant to RCW 70.95.110 and section 5 of this act;

(7) An assessment of the impact of the plan's recommendations on the costs of solid waste collection. The assessment shall be prepared in conformance with guidelines established by the utilities and transportation commission; and

(8) A review of potential areas that meet the criteria as outlined in RCW 70.95.165.

Sec. 7. Section 16, chapter 134, Laws of 1969 ex. sess. as amended by section 29, chapter 127, Laws of 1988 and RCW 70.95.160 are each amended to read as follows:

Each county, or any city, or jurisdictional board of health shall adopt regulations or ordinances governing solid waste handling implementing the comprehensive solid waste management plan covering storage, collection, transportation, treatment, utilization, processing and final disposal including but not limited to the issuance of permits and the establishment of minimum levels and types of service for any aspect of solid waste handling. County regulations or ordinances adopted regarding levels and types of service shall not apply within the limits of any city or town where the city or town has by local ordinance or regulation determined that the county shall not exercise such powers within the corporate limits of the city or town. Such regulations or ordinances shall assure that solid waste storage and disposal facilities are located, maintained, and operated in a manner so as properly to protect the public health, prevent air and water pollution, implement the priorities established in RCW 70.95.010, and avoid the creation of nuisances. Such regulations or ordinances may be more stringent than the minimum functional standards adopted by the department. Regulations or ordinances adopted by counties, cities, or jurisdictional boards of health shall be filed with the department.

NEW SECTION. Sec. 8. A new section is added to chapter 70.95 RCW to read as follows:

The department shall provide the utilities and transportation commission with each local comprehensive solid waste management plan. Within forty-five days after receiving a plan, the commission shall have reviewed the plan's assessment of solid waste collection cost impacts on rates charged by solid waste collection companies regulated under chapter 81.77 RCW and shall advise the local government submitting the plan and the department of the probable effect of the plan's recommendations on those rates.

NEW SECTION. Sec. 9. The definitions set forth in this section apply throughout this chapter.

(1) "Common carrier" means a person who undertakes to transport property for the general public by motor vehicle for compensation, whether over regular or irregular routes, or regular or irregular schedules, including motor vehicle operations of other carriers by rail or water.

(2) "Contract carrier" includes all motor vehicle operators not included under the terms "common carrier" and "private carrier," and further includes any person who under special and individual contracts or agreements transports property by motor vehicle for compensation.

(3) A "private carrier" is a person who transports by his or her own motor vehicle, with or without compensation, property that is owned or is being bought or sold by that person, or property of which the person is the seller, purchaser, lessee, or bailee where the transportation is incidental to and in furtherance of some other primary business conducted by the person in good faith.

(4) "Motor vehicle" means a truck, trailer, semitrailer, tractor, dump truck that uses a hydraulic or mechanical device to dump or discharge its load, or any self-propelled or motor-driven vehicle used upon a public highway of this state for the purpose of transporting property, but not including baggage, mail, and express transported on the vehicles of auto transportation companies carrying passengers.

(5) "Recyclable material" means those residential and nonresidential materials that can be diverted for recycling and reuse that would otherwise be disposed of through landfilling or incineration.

NEW SECTION. Sec. 10. A common or contract carrier that hauls recyclable materials may do so only under a permit granted by the commission. The commission shall grant a permit to any applicant that demonstrates it is fit, willing, and able to provide service and that meets all safety and insurance requirements established by the commission. The commission may charge applicants and permit holders a fee to cover the cost of regulation. All holders of a certificate under chapter 81.77 RCW on the effective date of this act are granted a permit under this chapter.

Sec. 11. Section 2, chapter 295, Laws of 1961 and RCW 81.77.010 are each amended to read as follows:

As used in this chapter:

(1) "Motor vehicle" means any truck, trailer, semitrailer, tractor or any self-propelled or motor driven vehicle used upon any public highway of this state for the purpose of transporting garbage and refuse, for the collection and/or disposal thereof;

(2) "Public highway" means every street, road, or highway in this state;

(3) "Common carrier" means any person who undertakes to transport garbage and refuse, for the collection and/or disposal thereof, by motor vehicle for compensation, whether over regular or irregular routes, or regular or irregular schedules;

(4) "Contract carrier" means all garbage and refuse transporters not included under the terms "common carrier" and "private carrier," as herein defined, and further, shall include any person who under special and individual contracts or agreements transports garbage and refuse by motor vehicle for compensation;

(5) "Private carrier" means a person who, in his own vehicle, transports garbage or refuse purely as an incidental adjunct to some other established private business owned or operated by him in good faith;

(6) "Vehicle" means every device capable of being moved upon a public highway and in, upon, or by which any garbage or refuse is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rail or tracks;

(7) "Garbage and refuse collection company" means every person or his lessees, receivers, or trustees, owning, controlling, operating or managing vehicles used in the business of transporting garbage and refuse for collection and/or disposal for compensation, except septic tank pumpers, over any public highway in this state whether as a "common carrier" thereof or as a "contract carrier" thereof;

(8) "Recyclable material" means those residential and nonresidential materials that can be diverted from that portion of the waste stream containing garbage and refuse for a use other than landfill disposal or incineration.

NEW SECTION. Sec. 12. A new section is added to chapter 81.77 RCW to read as follows:

For purposes of this chapter, "garbage and refuse" includes "recyclable materials" unless such materials are transported by a common or contract carrier under the supervision of a county under RCW 36.58.040.

Sec. 13. Section 3, chapter 295, Laws of 1961 and RCW 81.77.020 are each amended to read as follows:

No person, his lessees, receivers, or trustees, shall engage in the business of operating as a garbage and refuse collection company in this state, except in accordance with the provisions of this chapter((~~: PROVIDED, That~~)). The provisions of this chapter shall not apply to the operations of any garbage and refuse collection company under a contract of garbage or refuse disposal with any city or town, nor to any city or town which itself undertakes the disposal of garbage or refuse. This chapter does not apply to a common or contract carrier transporting recyclable materials under the supervision of a county under RCW 36.58.040.

NEW SECTION. Sec. 14. A new section is added to chapter 81.77 RCW to read as follows:

The garbage and refuse collection company is responsible for providing consolidated billing for the collection of garbage and refuse and recyclable material. The commission may adopt rules as necessary.

NEW SECTION. Sec. 15. A new section is added to chapter 81.77 RCW to read as follows:

For rate-making purposes, a fee, charge, or tax on the disposal of waste into a landfill shall be considered a normal operating expense of the garbage and refuse collection company.

NEW SECTION. Sec. 16. A new section is added to chapter 81.77 RCW to read as follows:

Nothing in this chapter, chapter 70.95 RCW, and Title 35 and 36 RCW shall prevent a recycling company or nonprofit entity from collecting and transporting recyclable materials to or from a recycling buy-back center, drop box, or other such collection point, or upon agreement with a collector or generator of recyclable material.

NEW SECTION. Sec. 17. A new section is added to chapter 81.77 RCW to read as follows:

Nothing in this chapter, chapter 70.95 RCW, and Title 35 and 36 RCW shall be construed as prohibiting a commercial or industrial generator of commercial recyclable material from selling, conveying, or arranging for transport of such material to a recycler for reuse or reclamation.

Sec. 18. Section 2, chapter 58, Laws of 1975-'76 2nd ex. sess. as amended by section 20, chapter 282, Laws of 1986 and RCW 36.58.040 are each amended to read as follows:

The legislative authority of each county may by ordinance provide for the establishment of a system of solid waste disposal for all the unincorporated areas of the county or for portions thereof. Each county may designate disposal sites for all solid waste collected in the unincorporated areas pursuant to the provisions of a comprehensive solid waste plan adopted pursuant to chapter 70.95 RCW: PROVIDED, That for any solid waste collected by a private hauler operating pursuant to a certificate granted by the Washington utilities and transportation commission under the provisions of chapter 81.77 RCW and which certificate is for collection in a geographic area lying in more than one county, such designation of disposal sites shall be pursuant to an interlocal agreement between the involved counties.

Such systems may also provide for the processing and conversion of solid wastes into other valuable or useful products with full jurisdiction and authority to construct, lease, purchase, acquire, manage, regulate, maintain, operate, and control such system and plants, and to enter into agreements with public or private parties providing for the construction, purchase, acquisition, lease, maintenance, and operation of systems and plants for the processing and conversion of solid wastes and for the sale of said products. Contracts shall be for facilities that are in substantial compliance with the solid waste management plans prepared pursuant to chapter 70.95 RCW.

The legislative authority of a county may award contracts for solid waste handling, and such contracts may provide that a county pay a minimum periodic fee in consideration of the operational availability of a solid waste handling system or plant, without regard to the ownership of the system or plant or the amount of solid waste actually handled during all or any part of the contractual period. There shall be included in the contract specific allocation of financial responsibility in cases where the amount of solid waste handled during the contract period falls below the minimum level provided in the contract.

The legislative authority of a county may by ordinance award contracts to a municipal entity or to a person holding a permit under section 10 of this act to collect recyclable materials within unincorporated areas. The legislative authority has full authority to manage, regulate, and fix the price of the recyclable material collection service. The contracts may provide that a county pay minimum periodic fees to a municipal entity or permit holder.

Nothing in this section shall be construed to authorize the operation of a solid waste collection system by counties.

Sec. 19. Section 35.21.120, chapter 7, Laws of 1965 as amended by section 18, chapter 282, Laws of 1986 and RCW 35.21.120 are each amended to read as follows:

Every city or town may by ordinance provide for the establishment of a system of ((~~garbage~~)) solid waste collection and disposal for the entire city or town or for portions thereof, and award contracts for ((~~garbage~~)) solid waste collection and disposal or provide for it under the direction of officials and employees of the city or town. Contracts for solid waste handling may provide that a city or town pay a minimum periodic fee in consideration of the operational availability of a solid waste handling system or plant, without regard to the ownership of the system or plant or the amount of solid waste actually handled during all or any part of the contract period. There shall be included in the contract specific allocation of financial responsibility in cases where the amount of solid waste handled during the contract period falls below the minimum level provided in the contract.

NEW SECTION. Sec. 20. A new section is added to chapter 36.58 RCW to read as follows:

The legislative authority of any county may impose upon a garbage and refuse collection company operating within the unincorporated areas of the county, a fee for such operational expenses as may be incurred under the requirements in RCW 70.95.100. Such fee shall be considered a legitimate operating expense of the garbage and collection company for rate-making purposes.

NEW SECTION. Sec. 21. A new section is added to chapter 35.21 RCW to read as follows:

The legislative authority of any city or town may impose upon a garbage and refuse collection company operating within the jurisdictional boundaries of a city or town, a fee for such operational expenses as may be incurred under the requirements in section 5 of this act. The fee shall be considered a legitimate operating expense of the solid waste collection company for rate-making purposes.

NEW SECTION. Sec. 22. A new section is added to chapter 70.95 RCW to read as follows:

Any jurisdictional health department and the department of ecology may enter into an agreement providing for the exercise by the department of ecology of any power that is specified in the contract and that is granted to the jurisdictional health department under this chapter. However, the jurisdictional health department shall have the approval of the legislative authority or authorities it serves before entering into any such agreement with the department of ecology.

NEW SECTION. Sec. 23. A new section is added to chapter 70.95 RCW to read as follows:

The institute of public policy shall conduct a study of enforcement of solid waste management laws and regulations as a component of a state solid waste management plan. This study shall include, but shall not be limited to:

(1) A review of current state and local solid waste rules, requirements and policies, and resources devoted to state and local solid waste enforcement and the effectiveness of these programs in promoting environmental health and public safety;

(2) An examination of federal regulations and the latest proposed amendments to RCRA Subtitle D of the code of federal regulations;

(3) A review of regulatory approaches used by other states;

(4) A review and evaluation of education and technical assistance programs related to enforcement;

(5) An inventory of regulatory compliance for all processing and disposal facilities handling mixed solid waste;

(6) The role and effectiveness of other enforcement jurisdictions;

(7) An evaluation of the need for redefining institutional roles and responsibilities for enforcement of solid waste management laws and regulations in order to establish public confidence in solid waste management systems and ensure public protection;

(8) An evaluation of possible benefits in separating the solid waste planning and technical assistance responsibilities from the enforcement responsibilities within the department.

Sec. 24. Section 1, chapter 184, Laws of 1988 and RCW 70.95.280 are each amended to read as follows:

The department of ecology shall determine the best management practices for categories of solid waste in accordance with the priority solid waste management methods established in RCW 70.95.010. In order to make this determination, the department shall conduct a comprehensive solid waste stream analysis and evaluation. Following establishment of baseline data resulting from an initial in-depth analysis of the waste steam, the department shall develop a less intensive method of monitoring significant changes in the disposed waste stream including, but not limited to, changes in the amount of waste generated and waste type. The department will conduct detailed monitoring of initial curbside and other waste segregation and disposal technologies in order to determine to the degree possible the effectiveness of these programs and their applicability to other locations and their implications regarding rules. Persons who collect solid waste shall annually report to the department the types and quantities of solid waste that are collected and diverted. The department shall adopt guidelines for reporting and for keeping proprietary information confidential.

Sec. 25. Section 4, chapter 295, Laws of 1961 as last amended by section 1, chapter 239, Laws of 1987 and RCW 81.77.030 are each amended to read as follows:

The commission shall supervise and regulate every garbage and refuse collection company in this state,

(1) By fixing and altering its rates, charges, classifications, rules and regulations;

(2) By regulating the accounts, service, and safety of operations;

(3) By requiring the filing of annual and other reports and data;

(4) By supervising and regulating such persons or companies in all other matters affecting the relationship between them and the public which they serve;

(5) By reviewing compliance with local solid waste management plans through letters of compliance submitted by the county legislative authority. The compliance letters shall become part of the record in any rate, compliance, or any hearing held by the commission on the issuance, revocation, or reissuance of a certificate as provided for in RCW 81.77.070; and

(6) By permitting rate structures that encourage recycling and source separation of waste over mixed waste disposal, consistent with the solid waste management priorities in RCW 70.95.010 and the minimum levels of solid waste collection and recycling services adopted under section 5 of this act.

The commission, on complaint made on its own motion or by an aggrieved party, at any time, after the holding of a hearing of which the holder of any certificate has had notice and an opportunity to be heard, and at which it shall be proven that the holder has willfully violated or refused to observe any of the commission's orders, rules, or regulations, or has failed to operate as a garbage and refuse collection company for a period of at least one year preceding the filing of the complaint, may suspend, revoke, alter, or amend any certificate issued under the provisions of this chapter.

NEW SECTION. Sec. 26. A new section is added to chapter 70.95 RCW to read as follows:

(1) No person may knowingly dispose of a vehicle battery except by delivery to: A person or entity selling lead acid batteries, a person or entity authorized by the department to accept the battery, or to a secondary lead smelter.

(2) No owner or operator of a solid waste disposal site shall knowingly accept for disposal used vehicle batteries except when authorized to do so by the department or by the federal government.

(3) Any person who violates this section shall be subject to a fine of up to one thousand dollars. Each battery will constitute a separate violation. Nothing in this section and sections 27 through 31 of this act shall supersede the provisions under chapter 70.105 RCW.

(4) For purposes of this section and sections 27 through 31 of this act, "vehicle battery" means batteries capable for use in any vehicle, having a core consisting of elemental lead, and a capacity of six or more volts.

NEW SECTION. Sec. 27. A new section is added to chapter 70.95 RCW to read as follows:

The department shall establish a procedure to identify, on an annual basis, those persons accepting used vehicle batteries from retail establishments.

NEW SECTION. Sec. 28. A new section is added to chapter 70.95 RCW to read as follows:

A person selling vehicle batteries at retail in the state shall:

(1) Accept, at the time of purchase of a replacement battery, in the place where the new batteries are physically transferred to the purchasers, and in a quantity at least equal to the number of new batteries purchased, used vehicle batteries from the purchasers, if offered by the purchasers. When a purchaser fails to provide an equivalent used battery or batteries, the purchaser may reclaim the core charge paid under section 29 of this act by returning, to the point of purchase within thirty days, a used battery or batteries and a receipt showing proof of purchase from the establishment where the replacement battery or batteries was purchased; and

(2) Post written notice which must be at least eight and one-half inches by eleven inches in size and must contain the universal recycling symbol and the following language:

(a) "It is illegal to put a motor vehicle battery or other vehicle battery in your garbage."

(b) "State law requires us to accept used motor vehicle batteries or other vehicle batteries for recycling, in exchange for new batteries purchased."

(c) "When you buy a battery, state law also requires us to include a core charge of five dollars if you do not return your old battery for exchange."

NEW SECTION. Sec. 29. A new section is added to chapter 70.95 RCW to read as follows:

Each retail sale of a vehicle battery shall include, in the price of the battery for sale, a core charge of not less than five dollars. When a purchaser offers the seller a used battery of equivalent size, the seller shall omit the core charge from the price of the battery.

NEW SECTION. Sec. 30. A new section is added to chapter 70.95 RCW to read as follows:

(1) A person selling vehicle batteries at wholesale to a retail establishment in this state shall accept, at the time and place of transfer, used vehicle batteries in a quantity at least equal to the number of new batteries purchased, if offered by the purchaser.

(2) When a battery wholesaler, or agent of the wholesaler, fails to accept used vehicle batteries as provided in this section, a retailer may file a complaint with the department and the department shall investigate any such complaint.

(3)(a) The department shall issue an order suspending any of the provisions of sections 28 through 31 of this act whenever it finds that the market price of lead has fallen to the extent that new battery wholesalers' estimated state-wide average cost of transporting used batteries to a smelter or other person or entity in the business of purchasing used batteries is clearly greater than the market price paid for used lead batteries by such smelter or person or entity.

(b) The order of suspension shall only apply to batteries that are sold at retail during the period in which the suspension order is effective.

(c) The department shall limit its suspension order to a definite period not exceeding six months, but shall revoke the order prior to its expiration date should it find that the reasons for its issuance are no longer valid.

NEW SECTION. Sec. 31. A new section is added to chapter 70.95 RCW to read as follows:

The department shall produce, print, and distribute the notices required by section 28 of this act to all places where vehicle batteries are offered for sale at retail and in performing its duties under this section the department may inspect any place, building, or premise governed by section 28 of this act. Authorized employees of the agency may issue warnings and citations to persons who fail to comply with the requirements of sections 26 through 32 of this act. Failure to conform to the notice requirements of section 28 of this act shall subject the violator to a fine imposed by the department not to exceed one thousand dollars. However, no such fine shall be imposed unless the department has issued a warning for the violation. Each day that a violator does not comply with these requirements shall constitute a separate offense.

NEW SECTION. Sec. 32. A new section is added to chapter 70.95 RCW to read as follows:

The department shall adopt rules providing for the implementation and enforcement of sections 26 through 31 of this act.

NEW SECTION. Sec. 33. A new section is added to chapter 70.95 RCW to read as follows:

Incineration of medical waste shall be conducted under sufficient burning conditions to reduce all combustible material to a form such that no portion of the combustible material is visible in its uncombusted state.

NEW SECTION. Sec. 34. A new section is added to chapter 70.95 RCW to read as follows:

No local government jurisdiction may construct a facility to incinerate mixed solid waste unless the requirements of section 5 of this act are met to the satisfaction of the department. This section shall not apply to local governments that have entered into a contract to construct an incinerator on or before the effective date of this act. A waiver of the requirements of this section may be granted if the department finds that the proposed facility is consistent with the provisions of this chapter.

Sec. 35. Section 1, chapter 67, Laws of 1987 and RCW 43.21A.520 are each amended to read as follows:

(1) The department of ecology shall develop and implement an environmental excellence awards program that recognizes products that are produced, labeled, or packaged in a manner that helps ensure environmental protection. The award shall be in recognition of products that are made from recycled materials, easy to recycle, substitute for more hazardous products, or otherwise help protect the environment. Application for the award shall be voluntary. The awards may be made in ((~~the following~~)) a variety of product categories including, but not limited to:

(a) Paint products;

(b) Cleaning ((~~agents~~)) products;

(d) Automotive, marine, and related maintenance products; ((~~and~~))

(e) Hobby and recreation products; and

(f) Any other product available for retail or wholesale sale.

(2) The department shall appoint an environmental excellence product award advisory committee to develop and recommend criteria for awarding environmental excellence awards for products. The committee shall also review award applications and make recommendations to the department. The committee shall consist of twelve members, comprised of three product manufacturing or other business representatives, three environmental representatives, three labor or consumer representatives, and three independent technical experts.

(3) Products receiving an environmental excellence award pursuant to this section ((~~would~~)) shall be entitled to display a logo or other symbol developed by the department to signify the award. Awards shall be given each year to as many products as qualify. The award logo may be displayed for a period to be determined by the department. Members of the environmental excellence product advisory committee shall be eligible for reimbursement for expenses incurred to conduct the business of the committee.

NEW SECTION. Sec. 36. A new section is added to chapter 70.95C RCW to read as follows:

(1) The office shall establish a product packaging task force. The purpose of the task force shall be to investigate and evaluate methods to:

(a) Reduce the volume or weight, or both, of product packaging entering the waste stream;

(b) Reduce the toxicity of product packaging entering the waste stream;

(d) Increase product packaging recycling; and

(e) Increase public awareness of the contribution of packaging to the solid waste problem.

In fulfilling the purpose of this subsection, the task force shall consider all applicable federal and state packaging standards and requirements. The task force shall coordinate with regional or national groups, or both, engage in evaluating packaging issues. Any standards recommended by this task force must consider available packaging materials, packaging weight or volume, or both, and educational package labeling.

The task force shall involve representatives from the department of trade and economic development, the department of ecology, the public, local governments, environmental associations, and industry, including but not limited to, product and packaging manufacturers, retail businesses, refuse collection, and recycling businesses. However, fifty percent of the task force appointees shall be representative of industry.

The task force shall submit an action plan, including short and long-range recommendations, to achieve the purposes of this subsection to the legislature by January 2, 1991. The task force shall be terminated upon submittal of the plan to the legislature.

(2) The task force shall submit guidelines on product packaging to the environmental excellence product award advisory committee by January 2, 1990.

NEW SECTION. Sec. 37. A new section is added to chapter 82.02 RCW to read as follows:

(1) As of July 1, 1989, the state preempts the field of imposing deposits or taxes upon a limited class of products and product packaging for the purpose of affecting the disposal of the product or product packaging. The state legislature shall have exclusive authority to impose such deposits or taxes. No local or regional political subdivision of the state shall have any authority to impose a deposit or tax unless specifically granted authority by the state legislature.

(2) This section shall expire July 1, 1991, unless extended by the legislature.

NEW SECTION. Sec. 38. A new section is added to chapter 70.95C RCW to read as follows:

(1) As of July 1, 1989, the state preempts the field of imposing prohibitions on the sale or distribution of products and product packaging for the purpose of affecting the disposal of the product or product packaging. The state legislature shall have exclusive authority to impose such prohibitions or bans. No local or regional political subdivision of the state shall have any authority to impose a prohibition or ban on products or product packaging unless specifically granted such authority by the state legislature.

(2) This section shall expire July 1, 1991, unless extended by the legislature.

Sec. 39. Section 35.21.130, chapter 7, Laws of 1965 and RCW 35.21.130 are each amended to read as follows:

A garbage ordinance may:

(1) Require property owners and occupants of premises to use the ((~~garbage~~)) solid waste collection and disposal system and to dispose of their garbage as provided in the ordinance: PROVIDED, That a solid waste ordinance shall not require any retail enterprise engaged in the sale of consumer-packaged products to locate or place a public solid waste collection site or buy-back center upon or within a certain distance of the retail establishment as a condition of engaging in the sale of consumer-packaged products; and

(2) Fix charges for garbage collection and disposal and the manner and time of payment therefor including therein a provision that upon failure to pay the charges, the amount thereof shall become a lien against the property for which the garbage collection service is rendered. The ordinance may also provide penalties for its violation.

Sec. 40. Section 36.58.010, chapter 4, Laws of 1963 and RCW 36.58.010 are each amended to read as follows:

Any board of county commissioners may acquire by purchase or by gift, dedication, or donation, garbage sites for the use of the public in disposing of ((~~garbage and refuse~~)) solid waste. However, no board of county commissioners shall be authorized to require any retail enterprise engaged in the sale of consumer-packaged products to locate or place a public solid waste collection site or buy-back center upon or within a certain distance of the retail establishment as a condition of engaging in the sale of consumer-packaged products.

NEW SECTION. Sec. 41. A new section is added to chapter 70.95C RCW to read as follows:

The department shall schedule regular meetings with local governments to coordinate the development and dissemination of materials to encourage waste reduction and recycling. The department may involve the media, advertising agencies, publishers, and others as deemed necessary by the department to produce high quality materials encouraging citizens and businesses to reduce and recycle their wastes.

NEW SECTION. Sec. 42. A new section is added to chapter 70.95C RCW to read as follows:

The legislature finds and declares that the buildings and facilities owned and leased by state government produce significant amounts of solid and hazardous wastes, and actions must be taken to reduce and recycle these wastes and thus reduce the costs associated with their disposal. In order for the operations of state government to provide the citizens of the state an example of positive waste management, the legislature further finds and declares that state government should undertake an aggressive program designed to reduce and recycle solid and hazardous wastes produced in the operations of state buildings and facilities to the maximum extent possible.

The office of waste reduction, in cooperation with the department of general administration, shall establish an intensive waste reduction and recycling program to promote the reduction of waste produced by state agencies and to promote the source separation and recovery of recyclable and reusable materials.

All state agencies, including but not limited to, colleges, community colleges, universities, offices of elected and appointed officers, the supreme court, court of appeals, and administrative departments of state government shall fully cooperate with the office of waste reduction and recycling in all phases of implementing the provisions of this section. The office shall establish a coordinated state plan identifying each agency's participation in waste reduction and recycling. The office shall develop the plan in cooperation with a multi-agency committee on waste reduction and recycling. Appointments to the committee shall be made by the director of the department of general administration. The director shall notify each agency of the committee and shall implement the waste reduction and recycling plan.

NEW SECTION. Sec. 43. A new section is added to chapter 70.95C RCW to read as follows:

The office of waste reduction shall develop, in consultation with the superintendent of public instruction, an awards program to achieve waste reduction and recycling in the public schools, grades kindergarten through high school. The office shall develop guidelines for program development and implementation. Each public school shall implement a waste reduction and recycling program conforming to guidelines developed by the office.

For the purpose of granting awards, the office may group schools into not more than three classes, based upon student population, distance to markets for recyclable materials, and other criteria, as deemed appropriate by the office. Awards shall be granted each year to the schools that recycle the greatest quantity of school-generated material per student. Each award shall be of a sum not to be less than ten thousand dollars. The office shall also develop recommendations for an awards program for waste reduction in the public schools. The office shall submit these recommendations to the appropriate standing committees in the house of representatives and senate on or before November 30, 1989.

The superintendent of public instruction shall distribute guidelines and other materials developed by the office to implement programs to reduce and recycle waste generated in administrative offices, classrooms, laboratories, cafeterias, and maintenance operations.

Sec. 44. Section 2, chapter 120, Laws of 1987 as amended by section 3, chapter 168, Laws of 1988 and RCW 35.23.352 are each amended to read as follows:

(1) Any second or third class city or any town may construct any public works, as defined in RCW 39.04.010, by contract or day labor without calling for bids therefor whenever the estimated cost of the work or improvement, including cost of materials, supplies and equipment will not exceed the sum of thirty thousand dollars if more than one craft or trade is involved with the public works, or twenty thousand dollars if a single craft or trade is involved with the public works or the public works project is street signalization or street lighting. A public works project means a complete project. The restrictions in this subsection do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project.

Whenever the cost of the public work or improvement, including materials, supplies and equipment, will exceed these figures, the same shall be done by contract. All such contracts shall be let at public bidding upon posting notice calling for sealed bids upon the work. The notice thereof shall be posted in a public place in the city or town and by publication in the official newspaper, or a newspaper of general circulation most likely to bring responsive bids, once each week for two consecutive weeks before the date fixed for opening the bids. The notice shall generally state the nature of the work to be done that plans and specifications therefor shall then be on file in the city or town hall for public inspections, and require that bids be sealed and filed with the council or commission within the time specified therein. Each bid shall be accompanied by a bid proposal deposit in the form of a cashier's check, postal money order, or surety bond to the council or commission for a sum of not less than five percent of the amount of the bid, and no bid shall be considered unless accompanied by such bid proposal deposit. The council or commission of the city or town shall let the contract to the lowest responsible bidder or shall have power by resolution to reject any or all bids and to make further calls for bids in the same manner as the original call.

When the contract is let then all bid proposal deposits shall be returned to the bidders except that of the successful bidder which shall be retained until a contract is entered into and a bond to perform the work furnished, with surety satisfactory to the council or commission, in the full amount of the contract price. If the bidder fails to enter into the contract in accordance with his bid and furnish a bond within ten days from the date at which he is notified that he is the successful bidder, the check or postal money order and the amount thereof shall be forfeited to the council or commission or the council or commission shall recover the amount of the surety bond.

If no bid is received on the first call the council or commission may readvertise and make a second call, or may enter into a contract without any further call or may purchase the supplies, material or equipment and perform the work or improvement by day labor.

(2) The allocation of public works projects to be performed by city or town employees shall not be subject to a collective bargaining agreement.

(3) In lieu of the procedures of subsection (1) of this section, a second or third class city or a town may use a small works roster and award contracts under this subsection for contracts of one hundred thousand dollars or less.

(a) The city or town may maintain a small works roster comprised of all contractors who have requested to be on the roster and are, where required by law, properly licensed or registered to perform such work in this state.

(b) Whenever work is done by contract, the estimated cost of which is one hundred thousand dollars or less, and the city uses the small works roster, the city or town shall invite proposals from all appropriate contractors on the small works roster: PROVIDED, That whenever possible, the city or town shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section. The invitation shall include an estimate of the scope and nature of the work to be performed, and materials and equipment to be furnished.

(c) When awarding such a contract for work, the estimated cost of which is one hundred thousand dollars or less, the city or town shall award the contract to the contractor submitting the lowest responsible bid.

(4) After September 1, 1987, each second class city, third class city, and town shall use the form required by RCW 43.09.205 to account and record costs of public works in excess of five thousand dollars that are not let by contract.

(5) The cost of a separate public works project shall be the costs of the materials, equipment, supplies, and labor on that construction project.

(6) Any purchase of supplies, material, equipment or services other than professional services, except for public work or improvement, where the cost thereof exceeds seven thousand five hundred dollars shall be made upon call for bids: PROVIDED, That the limitations herein shall not apply to any purchases of materials at auctions conducted by the government of the United States, any agency thereof or by the state of Washington or a political subdivision thereof.

(7) Bids shall be called annually and at a time and in the manner prescribed by ordinance for the publication in a newspaper published or of general circulation in the city or town of all notices or newspaper publications required by law. The contract shall be awarded to the lowest responsible bidder.

(8) For advertisement and competitive bidding to be dispensed with as to purchases between seven thousand five hundred and fifteen thousand dollars, the city legislative authority must authorize by resolution a procedure for securing telephone and/or written quotations from enough vendors to assure establishment of a competitive price and for awarding the contracts for purchase of materials, equipment, or services to the lowest responsible bidder. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry.

(9) These requirements for purchasing may be waived by resolution of the city or town council which declared that the purchase is clearly and legitimately limited to a single source or supply within the near vicinity, or the materials, supplies, equipment, or services are subject to special market conditions, and recites why this situation exists. Such actions are subject to RCW 39.30.020.

(10) This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

(11) Nothing in this section shall prohibit any second or third class city or any town from allowing for preferential purchase of products made from recycled materials or products that may be recycled or recovered.

Sec. 45. Section 36.32.250, chapter 4, Laws of 1963 as last amended by section 9, chapter 169, Laws of 1985 and by section 1, chapter 369, Laws of 1985 and RCW 36.32.250 are each reenacted and amended to read as follows:

No contract, lease, or purchase may be entered into by the county legislative authority or by any elected or appointed officer of such county until after bids have been submitted to the county upon specifications therefor. Such specifications shall be in writing and shall be filed with the clerk of the county legislative authority for public inspection, and an advertisement thereof stating the time and place where bids will be opened, the time after which bids will not be received, the character of the work to be done, or material, equipment, or service to be purchased, and that specifications therefor may be seen at the office of the clerk of the county legislative authority, shall be published in the county official newspaper: PROVIDED, That advertisements for public works contracts for construction, alteration, repair, or improvement of public facilities shall be additionally published in a legal newspaper of general circulation in or as near as possible to that part of the county in which such work is to be done: AND PROVIDED FURTHER, That if the county official newspaper is a newspaper of general circulation covering at least forty percent of the residences in that part of the county in which such public works are to be done publication of an advertisement of the applicable specifications in the county official newspaper only shall be sufficient. Such advertisements shall be published at least once in each week for two consecutive weeks prior to the last date upon which bids will be received and as many additional publications as shall be determined by the county legislative authority. The bids shall be in writing, shall be filed with the clerk, shall be opened and read in public at the time and place named therefor in said advertisements, and after being opened, shall be filed for public inspection. No bid may be considered for public work unless it is accompanied by a bid deposit in the form of a surety bond, postal money order, cash, cashier's check, or certified check in an amount equal to five percent of the amount of the bid proposed. The contract for the public work, lease, or purchase shall be awarded to the lowest responsible bidder, taking into consideration the quality of the articles or equipment to be purchased or leased. Any or all bids may be rejected for good cause. The county legislative authority shall require from the successful bidder for such public work a contractor's bond in the amount and with the conditions imposed by law. If the bidder to whom the contract is awarded fails to enter into the contract and furnish the contractor's bond as required within ten days after notice of the award, exclusive of the day of notice, the amount of the bid deposit shall be forfeited to the county and the contract awarded to the next lowest and best bidder. The bid deposit of all unsuccessful bidders shall be returned after the contract is awarded and the required contractor's bond given by the successful bidder is accepted by the county legislative authority. In the letting of any contract, lease, or purchase involving less than three thousand five hundred dollars, advertisement and competitive bidding may be dispensed with on order of the county legislative authority. Notice of intention to let contracts or to enter into lease agreements involving amounts exceeding one thousand dollars but less than three thousand five hundred dollars, shall be posted by the county legislative authority on a bulletin board in its office not less than three days prior to making such lease or contract. For advertisement and competitive bidding to be dispensed with as to purchases between one thousand and three thousand five hundred dollars, the county legislative authority must authorize by resolution a county procedure for securing telephone or written quotations, or both, from enough vendors to assure establishment of a competitive price and for awarding such contracts for purchase of materials, equipment, or services to the lowest responsible bidder. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry. Wherever possible, supplies shall be purchased in quantities for a period of at least three months, and not to exceed one year. Supplies generally used throughout the various departments shall be standardized insofar as possible, and may be purchased and stored for general use by all of the various departments which shall be charged for the supplies when withdrawn from the purchasing department.

This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

Nothing in this section shall prohibit the legislative authority of any county from allowing for preferential purchase of products made from recycled materials or products that may be recycled or recovered.

Sec. 46. Section 1, chapter 72, Laws of 1985 and RCW 39.30.040 are each amended to read as follows:

(1) Whenever a unit of local government is required to make purchases from the lowest bidder or from the supplier offering the lowest price for the items desired to be purchased, the unit of local government may, at its option when awarding a purchase contract, take into consideration tax revenue it would receive from purchasing the supplies, materials, or equipment from a supplier located within its boundaries. The unit of local government must award the purchase contract to the lowest bidder after such tax revenue has been considered. However, any local government may allow for preferential purchase of products made from recycled materials or products that may be recycled or recovered. The tax revenues which units of local government may consider include sales taxes that the unit of local government imposes upon the sale of such supplies, materials, or equipment from the supplier to the unit of local government, and business and occupation taxes that the unit of local government imposes upon the supplier that are measured by the gross receipts of the supplier from such sale. Any unit of local government which considers tax revenues it would receive from the imposition of taxes upon a supplier located within its boundaries, shall also consider tax revenues it would receive from taxes it imposes upon a supplier located outside its boundaries.

(2) As used in this section, the term "unit of local government" means any county, city, town, metropolitan municipal corporation, public transit benefit area, county transportation authority, or other municipal or quasi-municipal corporation authorized to impose sales and use taxes or business and occupation taxes.

Sec. 47. Section 1, chapter 40, Laws of 1982 1st ex. sess. as last amended by section 1, chapter 422, Laws of 1987 and RCW 43.160.010 are each amended to read as follows:

(1) The legislature finds that it is the public policy of the state of Washington to direct financial resources toward the fostering of economic development through the stimulation of investment and job opportunities and the retention of sustainable existing employment for the general welfare of the inhabitants of the state. Reducing unemployment and reducing the time citizens remain jobless is important for the economic welfare of the state. A valuable means of fostering economic development is the construction of public facilities which contribute to the stability and growth of the state's economic base. Strengthening the economic base through issuance of industrial development bonds, whether single or umbrella, further serves to reduce unemployment. Consolidating issues of industrial development bonds when feasible to reduce costs additionally advances the state's purpose to improve economic vitality. Expenditures made for these purposes as authorized in this chapter are declared to be in the public interest, and constitute a proper use of public funds. A community economic revitalization board is needed which shall aid the development of economic opportunities. The general objectives of the board should include:

(a) Strengthening the economies of areas of the state which have experienced or are expected to experience chronically high unemployment rates or below average growth in their economies;

(b) Encouraging the diversification of the economies of the state and regions within the state in order to provide greater seasonal and cyclical stability of income and employment;

(d) Encouraging new economic development or expansions to maximize employment;

(e) Encouraging the retention of viable existing firms and employment; and

(f) Providing incentives for expansion of employment opportunities for groups of state residents that have been less successful relative to other groups in efforts to gain permanent employment.

(2) The legislature also finds that the state's economic development efforts can be enhanced by, in certain instances, providing funds to improve state highways in the vicinity of new industries considering locating in this state or existing industries that are considering significant expansion.

(a) The legislature finds it desirable to provide a process whereby the need for diverse public works improvements necessitated by planned economic development can be addressed in a timely fashion and with coordination among all responsible governmental entities.

(b) It is the intent of the legislature to create an economic development account within the motor vehicle fund from which expenditures can be made by the department of transportation for state highway improvements necessitated by planned economic development. All such improvements must first be approved by the state transportation commission and the community economic revitalization board in accordance with the procedures established by RCW 43.160.074 and 47.01.280. It is further the intent of the legislature that such improvements not jeopardize any other planned highway construction projects. The improvements are intended to be of limited size and cost, and to include such items as additional turn lanes, signalization, illumination, and safety improvements.

(3) The legislature also finds that the state's economic development efforts can be enhanced by providing funds to improve markets for those recyclable materials representing a large fraction of the waste stream. The legislature finds that public facilities which result in private construction of processing facilities for recyclable materials should receive priority consideration from the board.

Sec. 48. Section 6, chapter 40, Laws of 1982 1st ex. sess. as last amended by section 5, chapter 422, Laws of 1987 and RCW 43.160.060 are each amended to read as follows:

The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, as well as the acquisition, construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

(1) The board shall not make a grant or loan:

(a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

(b) For any project that probably would result in a development or expansion that would displace existing jobs in any other community in the state.

(2) The board shall only make grants or loans:

(a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, ((~~and~~)) industrial distribution, and processing recyclable materials, or (ii) which substantially support the trading of goods or services outside of the state's borders.

(b) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

(c) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the grant or loan is made.

(3) The board shall prioritize each proposed project according to the number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located. As long as there is more demand for loans or grants than there are funds available for loans or grants, the board is instructed to fund projects in order of their priority.

(4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

Before any loan or grant application is approved, the political subdivision seeking the loan or grant must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

NEW SECTION. Sec. 49. A new section is added to chapter 43.160 RCW to read as follows:

(1) Before board consideration of an application from a political subdivision that includes a request for assistance in financing the cost of public facilities to encourage the development of a private facility to process recyclable materials, the application shall be forwarded by the board to the department of ecology.

(2) The board may not make its final determination on any application before receiving approval, as submitted or amended, or disapproval, from the department of ecology as specified in section 50 of this act.

(3) The board shall notify the department of ecology of its decision regarding any application made under this section.

NEW SECTION. Sec. 50. A new section is added to chapter 43.21A RCW to read as follows:

(1) Upon receiving an application for assistance in financing the cost of public facilities to encourage the development of a private facility to process recyclable materials from the board, the department shall, in a timely manner, determine whether or not the proposed assistance:

(a) Has a significant impact on the residential and commercial waste stream;

(b) Results in a product that has a ready market;

(d) Results in a product that would otherwise be purchased out-of-state.

(2) Upon completion of its determination of the factors contained in subsection (1) of this section and any other factors it deems pertinent, the department shall forward its approval, as submitted or amended, or disapproval, of the proposed improvements to the board, along with any recommendation it may wish to make concerning the desirability and feasibility of the proposed market development. If the department disapproves any proposed project, it shall specify its reasons for disapproval.

NEW SECTION. Sec. 51. A new section is added to chapter 70.95 RCW to read as follows:

(1) In order to establish the feasibility of composting sewer sludge and food and yard wastes, the department shall provide funds, as available, to local governments submitting a proposal to compost such wastes.

(2) The department, in cooperation with the department of trade and economic development, may approve an application if the project can demonstrate the essential parameters for successful composting, including, but not limited to, cost-effectiveness, handling and safety requirements, and current and potential markets.

(3) The department shall periodically report to the appropriate standing committees of the legislature on the need for, and feasibility of, composting systems for sewer sludge, and food and yard wastes.

NEW SECTION. Sec. 52. A new section is added to chapter 70.95 RCW to read as follows:

(1) The department shall assist local governments in establishing intensive waste diversion programs of commercial and household source separation. Such projects:

(a) Shall be above and beyond the minimum requirements of section 5 of this act;

(b) May be on a pilot or demonstration basis; and

(c) Shall be structured to determine the essential variables necessary to accomplish maximum feasible participation and waste stream diversion.

(2) The department shall periodically report to the appropriate standing committees of the legislature on the need for, and feasibility of, intensive waste diversion programs.

NEW SECTION. Sec. 53. In order to develop and enhance markets for scrap waste paper and to establish the safety and feasibility of burning certain plastics for energy recovery, the state energy office, in cooperation with the department of trade and economic development, shall conduct a study including, but not limited to, the following:

(1) A characterization of the facilities combusting scrap paper and plastics, including the design of handling equipment, combustors, and pollution control equipment;

(2) A determination of the quantity of scrap paper available for the fuel market, and the locations of potential suppliers;

(3) A determination of the capital and operating and maintenance costs of safely combusting scrap paper and plastic fuels;

(4) A determination of the market value of the fuel to potential users. The office shall report its finding to the legislature by December 31, 1989.

NEW SECTION. Sec. 54. The department shall conduct an investigation to determine the feasibility of returning unused paint to paint manufacturers for reuse or recycling, or both. In making the investigation, the department shall cooperate closely with the private sector. The department shall report its findings to the legislature by December 31, 1989.

NEW SECTION. Sec. 55. The office of waste reduction and recycling shall conduct a study of the current use of, and potential capacity for, use of recycled paper as feed stock to the state's pulp and paper industry. The department shall report its findings to the legislature by December 31, 1989.

NEW SECTION. Sec. 56. (1) There is created, within the department of trade and economic development, the Washington committee for recycling markets. The committee shall be appointed by the director and shall involve representatives of: Businesses that broker or process recycled materials but do not engage in collection; solid waste collection businesses; local government officials; local chambers of commerce; citizen recycling groups; manufacturers; institutions of higher education; the department of ecology; and other agencies, businesses, and organizations as may have an interest in development of recycling markets.

(2) The committee shall convene on or before September 1, 1989, and shall meet at least quarterly.

(3) The committee shall be supported by staff from the department of ecology and from the department of trade and economic development.

NEW SECTION. Sec. 57. The committee shall develop recommendations to:

(1) Develop new markets inside and outside this state for recycled materials;

(2) Attract new businesses to this state whose purpose is to use recycled materials;

(3) Promote business and consumer use of products made from recycled materials;

(4) Provide technical market assistance to businesses and local governments;

(5) Create a permanent entity to create and develop markets for recyclable materials.

NEW SECTION. Sec. 58. The committee shall report to the legislature on or before November 30, 1990, and its duties shall be terminated upon delivery of the report.

NEW SECTION. Sec. 59. Sections 56 through 58 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 60. Unless the context clearly requires otherwise the definitions in this section apply throughout this chapter.

(1) "Board" means the board of advisors for solid waste incinerator and landfill operator certification established by section 64 of this act.

(2) "Certificate" means a certificate of competency issued by the director stating that the operator has met the requirements for the specified operator classification of the certification program.

(3) "Department" means the department of ecology.

(4) "Director" means the director of ecology.

(5) "Incinerator" means a facility which has the primary purpose of burning or which is designed with the primary purpose of burning solid waste or solid waste derived fuel.

(6) "Landfill" means a landfill as defined under RCW 70.95.030.

(7) "Owner" means, in the case of a town or city, the city or town acting through its chief executive officer or the lessee if operated pursuant to a lease or contract; in the case of a county, the chief elected official of the county legislative authority or the chief elected official's designee; in the case of a board of public utilities, association, municipality, or other public body, the president or chief elected official of the body or the president's or chief elected official's designee; in the case of a privately owned landfill or incinerator, the legal owner.

(8) "Solid waste" means solid waste as defined under RCW 70.95.030.

NEW SECTION. Sec. 61. (1) By January 1, 1992, the owner or operator of a solid waste incineration facility shall employ a certified operator. At a minimum, the individual on-site at a solid waste incineration facility who is designated by the owner as the operator in responsible charge of the operation and maintenance of the facility on a routine basis shall be certified by the department.

(2) If a solid waste incinerator is operated on more than one daily shift, the operator in charge of each shift shall be certified.

(3) Operators not required to be certified are encouraged to become certified on a voluntary basis.

(4) The department shall adopt and enforce such rules as may be necessary for the administration of this section.

NEW SECTION. Sec. 62. (1) By January 1, 1992, the owner or operator of a landfill shall employ a certified landfill operator.

(2) The department shall adopt rules classifying all landfills with regard to the size, type, and other conditions affecting the complexity of a landfill and the skill, knowledge, and experience required of an operator to operate the landfill to protect human health and the environment.

(3) The rules shall require that the owner or operator of complex landfills employ a certified landfill operator who is on-site at all times the landfill is operating. At a minimum the rules shall require that owners or operators of landfills are required to employ a certified landfill operator who is on call at all times the landfill is operating.

NEW SECTION. Sec. 63. (1) The department shall establish a process to certify incinerator and landfill operators. To the greatest extent possible, the department shall rely on the certification standards and procedures developed by national organizations and the federal government.

(2) Operators shall be certified if they:

(a) Attend the required training sessions;

(b) Successfully complete required examinations; and

(3) By January 1, 1991, the department shall adopt rules to require incinerator and appropriate landfill operators to:

(a) Attend a training session concerning the operation of the relevant type of landfill or incinerator;

(b) Demonstrate sufficient skill and competency for proper operation of the incinerator or landfill by successfully completing an examination prepared by the department; and

(4) The department shall provide for the collection of fees for the issuance and renewal of certificates. These fees shall be sufficient to recover the costs of the certification program.

(5) The department shall establish an appeals process for the denial or revocation of a certificate.

(6) The department shall establish a process to automatically certify operators who have received comparable certification from another state, the federal government, a local government, or a professional association.

(7) Upon the effective date of this act and prior to January 1, 1992, the owner or operator of an incinerator or landfill may apply to the department for interim certification. Operators shall receive interim certification if they:

(a) Have received training provided by a recognized national organization, educational institution, or the federal government that is acceptable to the department; or

(b) Have received individualized training in a manner approved by the department; and

(8) No interim certification shall be valid after January 1, 1992, and interim certification shall not automatically qualify operators for certification pursuant to subsections (2) through (4) of this section.

NEW SECTION. Sec. 64. (1) A board of advisors for solid waste incinerator and landfill operator certification shall be established. Collectively, the board shall be a subcommittee of the solid waste advisory committee created under RCW 70.95.040 and shall be comprised of five members appointed by the director. The members shall be knowledgeable about solid waste handling technologies including but not limited to combustion boiler and pollution control technologies and their potential environmental impacts such as air emissions and ash residues.

(2) This board shall act as an advisory committee to the department and shall review and comment on the rules adopted under this chapter.

NEW SECTION. Sec. 65. (1) The director may, with the recommendation of the board and after a hearing before the board, revoke a certificate:

(a) If it were found to have been obtained by fraud or deceit;

(b) For gross negligence in the operation of a solid waste incinerator or landfill;

(d) If the facility operated by the certified employee is operated in violation of state or federal environmental laws.

(2) A person whose certificate is revoked under this section shall not be eligible to apply for a certificate for one year from the effective date of the final order or revocation.

NEW SECTION. Sec. 66. Any person who is employed by a public agency to inspect the operation of a landfill or an incinerator to determine the compliance of the facility with state or local laws or rules shall be required to be certified in the same manner as an operator under this chapter.

NEW SECTION. Sec. 67. To carry out the provisions and purposes of this chapter, the director may:

(1) Enter into agreements, contracts, or cooperative arrangements, under such terms and conditions as the director deems appropriate with other state, federal, or interstate agencies, municipalities, educational institutions, or other organizations or individuals.

(2) Receive financial and technical assistance from the federal government, other public agencies, and private agencies.

(3) Participate in related programs of the federal government, other states, interstate agencies, other public agencies, or private agencies or organizations.

(4) Upon request, furnish reports, information, and materials relating to the certification program authorized by this chapter to federal, state, or interstate agencies, municipalities, educational institutions, and other organizations and individuals.

(5) Establish adequate fiscal controls and accounting procedures to assure proper disbursement of and accounting for funds appropriated or otherwise provided for the purpose of carrying out this chapter.

(6) Adopt rules under chapter 34.05 RCW.

NEW SECTION. Sec. 68. After January 1, 1992, it is unlawful for any person, firm, corporation, municipal corporation, or other governmental subdivision or agency to operate a solid waste incineration or landfill facility unless the operators are duly certified by the director under this chapter or any lawful rule or order of the department. It is unlawful for any person to perform the duties of an operator without being duly certified under this chapter.

NEW SECTION. Sec. 69. Any person, including any firm, corporation, municipal corporation, or other governmental subdivision or agency, with the exception of incinerator operators, violating any provision of this chapter or the rules adopted under this chapter, is guilty of a misdemeanor. Incinerator operators who violate any provision of this chapter shall be guilty of a gross misdemeanor. Each day of operation in violation of this chapter or any rules adopted under this chapter shall constitute a separate offense. The prosecuting attorney or the attorney general, as appropriate, shall secure injunctions of continuing violations of any provisions of this chapter or the rules adopted under this chapter.

NEW SECTION. Sec. 70. All receipts realized in the administration of this chapter shall be paid into the general fund.

NEW SECTION. Sec. 71. Sections 60 through 70 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 72. A new section is added to chapter 82.18 RCW to read as follows:

(1) There is imposed on each person using the services of a refuse collection business a refuse collection surcharge of one percent of the consideration charged for the services.

(2) Moneys collected under this section shall be held in trust until paid to the state. Moneys received by the state shall be deposited in the solid waste management account created by section 98 of this act. The provisions of RCW 82.18.040, insofar as they are not in conflict with this section, apply to the collection of the surcharge.

NEW SECTION. Sec. 73. For purposes of this chapter:

(1) "Refuse collection business" means every person who receives waste for transfer, storage, or disposal including but not limited to all collection services, public or private dumps, transfer stations, and similar operations.

(2) "Person" shall have the meaning given in RCW 82.04.030 or any later, superseding section.

(3) "Waste" means garbage, trash, rubbish, or other material discarded as worthless or not economically viable for further use. The term does not include hazardous or toxic waste nor does it include material collected primarily for recycling or salvage, except recyclable material collected at the curbside.

(4) "Customer" means that person upon whom the refuse collection surcharge is imposed.

NEW SECTION. Sec. 74. (1) The legislative authority of any county, city, or town may, subject to subsection (2) of this section, by resolution or ordinance impose on each person using the services of a refuse collection business a refuse collection surcharge of two percent of the consideration charged for the services.

(2) The surcharge authorized by this section shall be imposed by all cities and counties preparing solid waste management plans, beginning on the date the city or county's waste reduction and recycling element is due under RCW 70.95.110. The surcharge imposed under this subsection may be reduced under the provisions of section 80 of this act.

NEW SECTION. Sec. 75. The person collecting the charges made for using the refuse collection business shall collect the surcharge imposed in section 74 of this act. If any person charged with collecting the surcharge fails to bill the customer for the surcharge, or in the alternative has not notified the customer in writing of the imposition of the surcharge, or having collected the surcharge, fails to pay it to the department of revenue in the manner prescribed by this chapter, whether such failure is the result of the person's own acts or the result of acts or conditions beyond the person's control, he or she shall, nevertheless, be personally liable to the state for the amount of the surcharge.

NEW SECTION. Sec. 76. Surcharges collected under this chapter shall be held in trust until paid to the state. Surcharges so received by the state shall be deposited as directed by section 77 of this act. Any person collecting the surcharge who appropriates or converts the surcharge collected shall be guilty of a gross misdemeanor if the money required to be collected is not available for payment on the date payment is due. If a customer fails to pay the surcharge imposed by this chapter to the person charged with collection of the surcharge and the person charged with collection fails to pay the surcharge to the department, the department may, in its discretion, proceed directly against the customer for collection of the surcharge.

The surcharge shall be due from the customer within twenty-five days from the date the customer is billed by the person collecting the surcharge.

The surcharge shall be due from the person collecting the surcharge at the end of the period in which the surcharge is received from the customer. If the customer remits only a portion of the total amount billed for the surcharge, consideration, and related charges, the amount remitted shall be applied first to payment of the refuse collection surcharge and this surcharge shall have priority over all other claims to the amount remitted.

NEW SECTION. Sec. 77. The counties, cities, and towns shall contract, prior to the effective date of a resolution or ordinance imposing a refuse collection surcharge, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the surcharges collected for administration and collection expenses incurred by the department. The remainder of any portion of any surcharge authorized by this chapter which is collected by the department of revenue shall be deposited by the state department of revenue in the local refuse collection surcharge account hereby created in the state treasury or in the solid waste management account under section 79 of this act. Moneys in the local refuse collection surcharge account may be spent only for distribution to counties, cities, and towns imposing a refuse collection surcharge.

NEW SECTION. Sec. 78. Monthly the state treasurer shall make distribution from the local refuse collection surcharge account to the counties, cities, and towns the amount of surcharge collected on behalf of each county, city, or town, less the deduction provided for in section 77 of this act. Monthly, the state treasurer shall make the distribution under this section without appropriation. Money distributed under this section may only be used for the purposes of implementing the requirements of the waste reduction and recycling element of a local government's solid waste management plan under RCW 70.95.090.

In the event that any ordinance or resolution imposes a refuse collection surcharge at a rate in excess of the applicable limits contained herein, such ordinance or resolution shall not be considered void in toto, but only with respect to that portion of the rate which is in excess of the applicable limits contained herein.

NEW SECTION. Sec. 79. The department of ecology may direct the department of revenue to deposit all of or a portion of a local government's surcharge into the solid waste management account if the local government is not in substantial compliance with the timetables established in the local government's solid waste management plan. The department of ecology shall adopt rules defining "substantial compliance," defining the varying degrees of compliance and the accompanying percentage of the surcharge to be diverted, and standards to be used by local governments in demonstrating and establishing compliance.

NEW SECTION. Sec. 80. (1) A county, city, or town imposing the surcharge under this chapter may petition the department of revenue to reduce all or part of the surcharge if the local government demonstrates, and the department agrees, that the local government has expended funds on waste reduction and recycling that are equivalent to that revenue which will be foregone if the surcharge is reduced.

(2) Prior to a reduction of the surcharge under this section, local governments shall file with the department of revenue the fiscal data necessary to document the basis for a reduced rate. Approval of the fiscal data by the department and consultation with the department of ecology is a prerequisite to rate reduction under this section.

NEW SECTION. Sec. 81. No county may impose a surcharge under section 74 of this act upon a person who is subject to a city-imposed surcharge under section 74 of this act.

NEW SECTION. Sec. 82. The refuse collection surcharge shall not apply to any agency, division, or branch of the federal government or to services rendered under a contract therewith.

NEW SECTION. Sec. 83. To prevent pyramiding and multiple surcharges on a single transaction, this surcharge shall not apply to any refuse collection business using the services of another refuse collection business for the transfer, storage, processing, or disposal of the waste collected during the transaction.

To be eligible for this exemption, a person first must be certified by the department of revenue as a refuse collection business.

NEW SECTION. Sec. 84. Chapter 82.32 RCW applies to the surcharge imposed under this chapter.

NEW SECTION. Sec. 85. Sections 73 through 84 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 86. Sections 73 through 84 of this act shall expire on July 1, 1995.

NEW SECTION. Sec. 87. A new section is added to chapter 81.77 RCW to read as follows:

The provisions of chapter 39.12 RCW shall apply to service agreements entered into under this chapter, RCW 35.21.120, and 36.58.040 to collect source-separated recyclable materials at residential or nonresidential sites, or both.

NEW SECTION. Sec. 88. A new section is added to chapter 81.77 RCW to read as follows:

The commission, in fixing and altering collection rates charged by every garbage and refuse collection company under this section, shall include in the base for the collection rates:

(1) All charges for the disposal of solid waste at the facility or facilities that the garbage and refuse collection company is required to use under a local comprehensive solid waste management plan or ordinance designating disposal sites;

(2) All charges relating to the disposition of recyclable materials made to third parties as directed by a local government under its comprehensive solid waste management plan;

(3) All known and measurable costs related to implementation of the approved county or city comprehensive solid waste management plan; and

(4) All revenues received by collection companies in return for the sale of recyclable materials collected, which revenues shall be applied to offset the known and measurable costs of collection, processing, and marketing the recyclable materials.

The commission shall develop rules to allow garbage and refuse collection companies to adjust their rates no more than two times per year, to reflect the costs specified in this section. Such rules shall include notice to ratepayers of rate adjustment.

NEW SECTION. Sec. 89. A new section is added to chapter 81.77 RCW to read as follows:

If the commission suspends a tariff change submitted by a garbage and refuse collection company under RCW 81.04.130, the collection company may request that the tariff be put in effect on an interim basis, subject to refund, pending the commission's final order. Such requests shall be granted and the tariff will become effective, on an interim basis, on its originally filed effective date.

NEW SECTION. Sec. 90. A new section is added to chapter 70.95 RCW to read as follows:

(1) The department shall conduct a study of problem wastes including an analysis of the best available technologies for environmentally safe and economically sound collection, storage, processing, and disposal. In conducting the study, the department shall involve, consult, and create special advisory committees that will include membership from relevant industries and local governments. The department shall submit a report, including recommendations, to the house of representatives environmental affairs committee and the senate environment and natural resources committee by December 15, 1990, and shall make the results of the study available to local governments. In its study, the department shall consider, at a minimum, the following:

(a) Education programs about using alternative products that minimize adverse effects to the environment;

(b) Program development and enhancement to divert problem wastes from the waste stream, including current recycling programs and household hazardous waste collection programs; and

(2) The study shall include an investigation of existing toxic materials in landfills, in incinerator air emissions, and in incinerator fly and bottom ash, including, but not limited to, lead, mercury, cadmium, chromium, dioxins, furans, oxides of sulphur, carbon, nitrogen, and other toxic organic materials. Furthermore, the study shall review the adequacy of the state's air quality and ash quality standards for solid waste incinerators, by including a comparison of our state standards with those latest standards adopted by other countries such as Sweden and West Germany.

(3) The purpose of the investigation and the standard review is to evaluate the potential for damage to the environment and public health from these toxic materials, to identify the sources of the toxic materials, and to evaluate the potential solid waste management practices for eliminating or reducing the amount of toxic materials entering disposal facilities, or reducing the toxicity of such materials.

(4) For the purposes of this section, "problem wastes" means those solid wastes that require special handling, treatment, storage, or disposal, as determined by the department to be causing, or potentially causing, environmental damage, or are disposed of in sufficient quantities as to be likely to cause environmental damage.

NEW SECTION. Sec. 91. The legislature finds that flexibility in solid waste management systems may help minimize the need for costly disposal options, maximize the limited life of landfills, and produce the most cost-effective solid waste management system. The legislature further finds that there is a need for innovation in solid waste management systems, especially to develop efficient ways of collecting and handling yard waste, recyclables, and other materials intended to be segregated from the solid waste disposal stream.

The legislature finds that local governments are given primary responsibility to plan for and manage solid waste, and that they require a grant of authority sufficient to implement their plans and manage segregated waste streams. The legislature also finds that the majority of Washington's population resides in unincorporated areas under the jurisdiction of county governments, so that county governments are responsible for managing a growing portion of the waste stream. The legislature further finds that current statutes restrict county government authority over solid waste collection. The legislature further finds that changes in existing statutes for solid waste regulatory authority may displace existing firms that are delivering solid waste and recycling services in a cost-effective manner.

Therefore, the legislature finds that there is a need to examine the structure and effectiveness of the present regulatory situation and the public policies which have led to the current structure. The legislature further finds that it is desirable to examine the regulatory structure and practice of other states, including regulatory jurisdiction, planning responsibility, and program funding authority granted to various levels and agencies of government. The legislature also finds that any changes in regulatory authority should be made in a way that minimizes adverse impacts on existing firms, governmental entities, and customers of solid waste collection and recycling services.

NEW SECTION. Sec. 92. (1) The utilities and transportation commission shall conduct a study on solid waste regulation, utilizing the expertise of an objective research institution specializing in regulatory or public policy issues, that shall:

(a) Identify and examine current statutory responsibilities of state, county, and city governments, and the role of private sector firms, for solid waste services including the provision of solid waste and recycling collection, transfer, disposal, financing, and enforcement;

(b) Examine public policies and history that led to the current regulatory structure;

(c) Gather and analyze information on the current status of collection, transfer, disposal, and recycling services on a county-by-county basis, including services provided by local governments, haulers holding certificates of public convenience and necessity issued by the utilities and transportation commission, and private sector recycling firms, which information shall include, but not be limited to, number and categories of customers served, services provided, tonnage handled, overall cost of service, and number and type of firms under common ownership. In order to minimize costs, the findings of the best management practices study shall be used to the fullest extent possible;

(d) Examine policies and practices in other states in regard to the allocation of regulatory responsibility and financial capability among different levels of government;

(e) Discuss possible alternatives to the existing statutory system of solid waste regulatory authority, that shall include, at a minimum:

(i) Optional county authority over solid waste collection, similar to the optional city authority granted in RCW 81.77.020;

(ii) Mandatory county authority over solid waste collection, replacing the utilities and transportation commission;

(iii) Changing state authority over solid waste collection and disposal, with such authority to be vested in a new state board or agency;

(f) Recommend policy, statutory, and constitutional changes that would serve to provide greater flexibility, innovation, and local control, and to minimize impacts on existing solid waste management firms, governmental entities, and customers of solid waste collection and recycling services.

(2) The commission shall appoint an advisory committee to review and comment on the study upon completion. Members of the advisory committee shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060. The committee shall include, but not be limited to:

(a) Two representatives of county governments, including one representative from large counties, defined as counties of class AA, A, 1, and 2 counties, and one representative of counties of class 3 and smaller;

(b) Two representatives of city governments, including one from a city that provides municipal collection services and one from a city that provides collection services in some manner other than municipal provision;

(d) Two representatives of the garbage collection industry;

(e) Two representatives of the recycling industry;

(f) One representative each of business and environmental interests;

(g) One representative each from the department of ecology, the department of community development, the department of revenue, and the municipal corporation division of the state auditor's office.

(3) The commission shall submit to the governor and legislature a report containing findings, conclusions, recommendations, and comments by January 2, 1990.

NEW SECTION. Sec. 93. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the public service revolving fund for the purposes of this act.

NEW SECTION. Sec. 94. Sections 91 through 93 of this act shall expire June 30, 1990.

Sec. 95. Section 9, chapter 295, Laws of 1961 as last amended by section 3, chapter 143, Laws of 1971 ex. sess. and RCW 81.77.080 are each amended to read as follows:

Every garbage and refuse collection company shall, on or before the 1st day of April of each year, file with the commission a statement on oath showing its gross operating revenue from intrastate operations for the preceding calendar year, or portion thereof, and pay to the commission a fee equal to ((~~eight-tenths of~~)) one percent of the amount of gross operating revenue: PROVIDED, That the fee shall in no case be less than one dollar.

It is the intent of the legislature that the fees collected under the provisions of this chapter shall reasonably approximate the cost of supervising and regulating motor carriers subject thereto, and to that end the utilities and transportation commission is authorized to decrease the schedule of fees provided in this section by general order entered before March 1st of any year in which it determines that the moneys then in the garbage and refuse collection companies account of the public service revolving fund and the fees currently to be paid will exceed the reasonable cost of supervising and regulating such carriers.

All fees collected under this section or under any other provision of this chapter shall be paid to the commission and shall be by it transmitted to the state treasurer within thirty days to be deposited to the credit of the public service revolving fund.

Sec. 96. Section 15, chapter 528, Laws of 1987 as amended by section 6, chapter 184, Laws of 1988 (uncodified) is amended to read as follows:

(1) The Washington state legislature finds that the state faces a solid waste disposal crisis. The siting of new landfills, the location and design of new solid waste incinerators, the disposal of ash residue, and compliance with the priorities of the solid waste management act and the hazardous waste management act require that an effort be made by the state to ensure that local governments and private industry have adequate technical information, and that programs are developed to accomplish the statutory waste management priorities.

(2) A comprehensive evaluation of preferred solid waste management programs shall be undertaken by the joint select committee for preferred solid waste management. The committee shall consist of four members of the house of representatives appointed by the speaker of the house and four members of the senate appointed by the president of the senate. The committee shall involve the department of ecology, the utilities and transportation commission, and representatives of organizations representing cities, counties, the public, the waste management industry, waste haulers, and the private recycling industry. The committee shall report its findings and recommendations to the appropriate standing committees of the legislature by January 1, 1989.

(3) The department of ecology may provide the committee with specific recommendations on waste management programs from studies the department has undertaken as required by RCW 70.95.263.

(4) The committee shall attempt to determine the reasons why higher rates of waste reduction and recycling have not been achieved in the state and develop recommendations on how to achieve higher rates.

(5) The committee's recommendations shall include (a) specific programs for waste reduction, recycling, incineration, and landfills, (b) specific goals for solid waste management, and (c) specific responsibilities for state government, local government, and the private sectors to accomplish the committee's recommendations. The committee shall also recommend specific legislation and rule-making requirements to accomplish the committee's findings.

(6) The joint select committee for preferred solid waste management shall cease to exist on July 1, ((~~1989~~)) 1991.

NEW SECTION. Sec. 97. (1) One hundred fifty thousand dollars is appropriated to the state energy office from the solid waste management account for the biennium ending June 30, 1991, for the study undertaken pursuant to section 53 of this act.

(2) One million two hundred thousand dollars is appropriated to the department of ecology from the solid waste management account for the biennium ending June 30, 1991, for providing technical assistance to local governments to implement the waste reduction and recycling requirements under RCW 70.95.090 and for staff pursuant to section 56(3) of this act. In providing technical assistance to local governments, the department may contract with any private entity or local government.

(3) Two million three hundred thousand dollars is appropriated to the department of ecology from the solid waste management account for the biennium ending June 30, 1991, for grants to local governments pursuant to section 51 of this act, for the studies pursuant to sections 52 through 55 of this act, and for grants to nonprofit entities for innovative public information and education. One hundred fifty thousand dollars of the public information and education grants is to be used for at least three pilot projects to encourage creative methods for recycling disposable diapers or methods to divert them from landfills.

NEW SECTION. Sec. 98. The solid waste management account is created in the state treasury. All moneys deposited in this account under sections 72 and 79 of this act may be spent only after appropriation.

NEW SECTION. Sec. 99. Sections 9 and 10 of this act shall constitute a new chapter in Title 81 RCW.

NEW SECTION. Sec. 100. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 101. Section 37 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1989.

NEW SECTION. Sec. 102. Section 33 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.