AN ACT Relating to authorizing cost-reimbursement agreements for leases and environmental permits; adding a new section to chapter 43.21A RCW; adding a new section to chapter 43.30 RCW; adding a new section to chapter 43.70 RCW; adding a new section to chapter 43.300 RCW; adding a new section to chapter 70.94 RCW; adding a new section to chapter 90.44 RCW; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1. INTENT. It is the intent of the legislature that:

(1) Applicants for leases and environmental permits be allowed to negotiate voluntary cost-reimbursement agreements through which the applicants would receive expedited environmental review from the permitting or leasing agency;

(2) Cost-reimbursement agreements free permitting and leasing agency resources to focus on and expedite the review of all projects;

(3) By authorizing cost-reimbursement agreements, measures are taken by the agencies to promote the public's trust and confidence in the underlying permit process, including providing consolidated, effective, and easier opportunities for members of the public to receive information and present their views about proposed projects; and

(4) The permit process results in transparent and impartial decision making as a result of such agreements.

NEW SECTION. Sec. 2. GUIDELINES FOR COST-REIMBURSEMENT AGREEMENTS. (1) The office of financial management, in collaboration with the departments of ecology, natural resources, fish and wildlife, and health, and local air pollution control authorities shall develop guidelines to ensure consistency in the agencies' use and administration of cost-reimbursement agreements and to meet the intent of this act. The office of financial management shall be lead agency in developing the guidelines and by June 30, 2000, shall submit final guidelines to the legislature.

(2) The guidelines shall include, but are not limited to:

(a) Measures to ensure the impartiality of agency decision making on applications subject to review under cost-reimbursement agreements;

(b) Strategies to promote the public's trust and confidence in permitting and leasing processes including avoiding any conflict of interest and ensuring the appearance of fairness;

(c) Measures to ensure that execution of cost-reimbursement agreements will not impede the consideration of permit or lease applications for projects for which no cost-reimbursement agreements were made; and

(d) Practices to ensure consistent billing and accounting.

NEW SECTION. Sec. 3. A new section is added to chapter 43.21A RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF ECOLOGY. (1) At the request of a permit applicant, the department may enter into a voluntary written cost-reimbursement agreement with the permit applicant to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.

(2) Under the provisions of a cost-reimbursement agreement, the department shall assign work to current staff in order to carry out the work covered by the cost-reimbursement agreement. Funds from the applicant shall be used to pay for temporary staff or technical consultants otherwise authorized to perform functions assigned to agency staff responsible for writing the permit. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. The department shall comply with the guidelines required by section 2 of this act and shall not enter into a cost-reimbursement agreement until the guidelines have been finalized.

NEW SECTION. Sec. 4. A new section is added to chapter 43.30 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF NATURAL RESOURCES. (1) At the request of a permit or lease applicant, the department may enter into a voluntary written cost-reimbursement agreement with the permit or lease applicant to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit or lease processing.

(2) Under the provisions of a cost-reimbursement agreement, the department shall assign work to current staff in order to carry out the work covered by the cost-reimbursement agreement. Funds from the applicant shall be used to pay for temporary staff or technical consultants otherwise authorized to perform functions assigned to agency staff responsible for writing the permit or lease. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. The department shall comply with the guidelines required by section 2 of this act and shall not enter into a cost-reimbursement agreement until the guidelines have been finalized.

NEW SECTION. Sec. 5. A new section is added to chapter 43.70 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF HEALTH. (1) At the request of a permit or lease applicant, the department may enter into a voluntary written cost-reimbursement agreement with the permit applicant to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.

NEW SECTION. Sec. 6. A new section is added to chapter 43.300 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF FISH AND WILDLIFE. (1) At the request of a permit applicant, the department may enter into a voluntary written cost-reimbursement agreement with the permit applicant to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.

NEW SECTION. Sec. 7. A new section is added to chapter 70.94 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY AN AIR POLLUTION CONTROL AUTHORITY. (1) At the request of a permit applicant, an authority may enter into a voluntary written cost-reimbursement agreement with the permit applicant to recover from the applicant the reasonable costs incurred by the authority in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.

(2) Under the provisions of a cost-reimbursement agreement, the authority shall assign work to current staff in order to carry out the work covered by the cost-reimbursement agreement. Funds from the applicant shall be used to pay for temporary staff or technical consultants otherwise authorized to perform functions assigned to agency staff responsible for writing the permit. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. The authority shall comply with the guidelines required by section 2 of this act and shall not enter into a cost-reimbursement agreement until the guidelines have been finalized.

NEW SECTION. Sec. 1. A new section is added to chapter 90.44 RCW to read as follows:

Any one or more public water supply systems in counties surrounded by water with existing or proposed ground water withdrawals from a federally designated sole source aquifer, with applications for a new withdrawal or a change or transfer pending before the department on or before January 1, 2000, may initiate a cost-reimbursement agreement with the department to provide expedited review of the applications. If a request for a cost-reimbursement agreement is made, the department shall negotiate in good faith with the group of public water supply system applicants to provide expedited review for the applications. The department shall be guided by sections 1 through 3 of this act in negotiating a cost-reimbursement agreement. The department shall render decisions on the applications subject to the provisions of this section by June 30, 2002.

NEW SECTION. Sec. 2. EVALUATION OF COST-REIMBURSEMENT AGREEMENTS. (1) The joint legislative audit and review committee shall review the use and administration of cost-reimbursement agreements, provide annual reports to the legislature prior to the 2001, 2002, and 2003 regular legislative sessions, and a final report to the legislature by December 15, 2003. Topics addressed in the reports shall include but not be limited to:

(a) The number and nature of projects subject to cost-reimbursement agreements;

(b) The length of time between submission of an application and the permit or lease decision for both projects subject to cost-reimbursement agreements and those not subject to the agreements;

(c) How agencies have managed staffing resources under cost-reimbursement agreements and whether reimbursed costs have covered agency expenses;

(d) Whether applicants who choose not to negotiate cost-reimbursement agreements have been displaced in the permit or leasing process; and

(e) The effectiveness of the guidelines developed under section 2 of this act, in particular relating to the avoidance of conflicts of interest and ensuring the appearance of fairness.

(2) The joint legislative audit and review committee shall also make recommendations for improving cost-reimbursement agreements to achieve the intent of this act.

NEW SECTION. Sec. 3. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 4. 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 takes effect immediately.