BILL REQ. #:  Z-0316.3 

Read first time 01/12/2007.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to preserving the current regulatory assistance program with cost reimbursement changes; amending RCW 43.42.005, 43.42.010, 43.42.020, 43.42.030, 43.42.040, 43.42.050, 43.42.060, 43.42.070, 43.42.080, 43.21A.690, 43.30.490, 43.70.630, 43.300.080, 70.94.085, 43.131.401, and 43.131.402; creating a new section; decodifying RCW 43.42.905; and declaring an emergency.

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

Sec. 1   RCW 43.42.005 and 2003 c 71 s 1 are each amended to read as follows:
     (1) The legislature finds that the health and safety of its citizens, natural resources, and the environment are vital interests of the state that must be protected to preserve the state's quality of life. The legislature also finds that the state's economic well-being is a vital interest that depends upon the development of fair, accessible, and coordinated permitting and regulatory ((processes)) requirements that ensure that the state not only protects public health and safety and natural resources but also encourages appropriate activities that stimulate growth and development. The legislature further finds that Washington's permitting and regulatory programs have established strict standards to protect public health and safety and the environment.
     (2) The legislature also finds that, as the number of environmental and land use laws and requirements have grown in Washington, so have the number of permits required of business and government. The increasing number of ((individual)) permits and ((permit)) permitting agencies has generated the potential for conflict, overlap, and duplication among ((various)) state, local, and federal ((permits. Lack of coordination in the processing of project applications may cause costly delays and frustration to applicants)) permitting and regulatory requirements.
     (3) The legislature further finds that not all project ((applicants)) proponents require the same type of assistance. ((Applicants)) Proponents with small projects may merely need information ((about local and state permits)) and assistance in ((applying for those permits)) starting the permitting and application process, while intermediate-sized projects may require more of a facilitated ((permit)) and periodically assisted permitting process, and large complex projects may need extensive and more continuous coordination among local, state, and federal agencies and tribal governments.
     (4) The legislature further finds that persons doing business in Washington state should have access to clear and appropriate information regarding ((state)) regulations, permit requirements, and agency rule-making processes.
     (5) The legislature, therefore, finds that a range of assistance and coordination options should be available to project ((applicants)) proponents from a state office independent of any local, state, or federal permit agency. The legislature finds that citizens, businesses, and project ((applicants)) proponents should be provided with:
     (a) A reliable and consolidated source of information concerning federal, state, and local environmental and land use laws and procedures that may apply to any given project;
     (b) Facilitated interagency forums for discussion of significant issues related to the multiple permitting processes if needed for some project ((applicants)) proponents; and
     (c) Active coordination of all applicable regulatory and land use permitting procedures if needed for some project ((applicants)) proponents.
     (6) The legislature declares that the purpose of this chapter is to ((transfer the existing permit assistance center in the department of ecology to a new office of permit assistance in the office of financial management to)):
     (a) Assure that citizens, businesses, and project ((applicants)) proponents will continue to be provided with vital information regarding environmental and land use laws and with assistance in complying with environmental and land use laws to promote understanding of these laws and to protect public health and safety and the environment;
     (b) Ensure that facilitation of project permit decisions by permit agencies promotes both process efficiency and environmental protection;
     (c) Allow for coordination of permit processing for large projects upon project ((applicants')) proponents' request and at project ((applicants')) proponents' expense to promote efficiency, ensure certainty, and avoid conflicts among permit agencies; and
     (d) Provide these services through an office independent of any permit agency to ensure that any potential or perceived conflicts of interest related to providing these services or making permit decisions can be avoided.
     (7) The legislature also declares that the purpose of this chapter is to provide citizens of the state with access to information regarding state regulations, permit requirements, and agency rule-making processes in Washington state.
     (8) The legislature intends that establishing an office of regulatory assistance will provide these services without abrogating or limiting the authority of any ((permit)) agency to make decisions on permits and regulatory requirements that it ((issues)) requires or any rule-making agency to make decisions on regulations. The legislature therefore declares that the office of regulatory assistance shall have authority to provide these services but shall not have any authority to make decisions on permits.

Sec. 2   RCW 43.42.010 and 2003 c 71 s 2 are each amended to read as follows:
     (1) The office of regulatory assistance is created in the office of financial management and shall be administered by the office of the governor to assist citizens, businesses, and project ((applicants)) proponents.
     (2) The office shall:
     (a) Maintain and furnish information as provided in RCW 43.42.040;
     (b) Furnish facilitation as provided in RCW 43.42.050;
     (c) Furnish coordination as provided in RCW 43.42.060;
     (d) Coordinate cost reimbursement as provided in RCW 43.42.070;
     (e) Work with ((state)) governmental agencies ((and local governments)) to continue to develop a range of ((permit)) permitting and regulatory assistance options for project ((applicants)) proponents;
     (f) ((Review initiatives developed by the transportation permit efficiency and accountability committee established in chapter 47.06C RCW and determine if any would be beneficial if implemented for other types of projects;
     (g))) Work to develop informal processes for dispute resolution between agencies and permit ((applicants)) proponents;
     (((h))) (g) Conduct customer surveys to evaluate its effectiveness; and
     (((i))) (h) Provide the following ((biennial)) reports by June 1, 2008, and biennially thereafter, to the governor and the appropriate committees of the legislature:
     (i) A performance report, based on the customer surveys required in (((h))) (g) of this subsection;
     (ii) A report on any ((statutory or regulatory)) conflicts identified by the office in the course of its duties ((that arise)) arising from differing ((legal)) statutory or regulatory authorities ((and)), roles and missions of agencies, timing and sequencing of permitting and procedural requirements, or otherwise, and how these were resolved((. The report may include recommendations to the legislature and to agencies)); and
     (iii) A report regarding negotiation and implementation of voluntary cost-reimbursement agreements and use of outside independent consultants under RCW 43.42.070, including the nature and amount of work performed and implementation of requirements relating to costs.
     (3) ((A director of the office shall be hired no later than June 1, 2003.
     (4))) The office shall ((give priority to furnishing assistance to small projects when expending general fund moneys allocated to it)) ensure the equitable delivery and provision of assistance services, regardless of project type, scale, fund source, or assistance request.

Sec. 3   RCW 43.42.020 and 2002 c 153 s 3 are each amended to read as follows:
     (1) The office shall operate on the principle that citizens of the state of Washington should receive the following information regarding permits:
     (a) A date and time for a decision on a permit or regulatory requirement;
     (b) The information required for an agency to make a decision on a permit or regulatory requirement, recognizing that changes in the project or other circumstances may change the information required; and
     (c) An estimate of the maximum amount of costs in fees, studies, or public processes that will be incurred by the project ((applicant)) proponent.
     (2) This section does not create an independent cause of action, affect any existing cause of action, or establish time limits for purposes of RCW 64.40.020.

Sec. 4   RCW 43.42.030 and 2003 c 71 s 3 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Office" means the office of regulatory assistance in the office of financial management established in RCW 43.42.010.
     (2) "Permit" means any permit, certificate, use authorization, or other form of governmental review or approval required in order to construct, expand, or operate a project in the state of Washington.
     (3) "Permit agency" means any state ((or)), local, or federal agency authorized by law to issue permits.
     (4) "Project" means any activity, the conduct of which requires a permit or permits from one or more permit agencies.
     (5) "Project ((applicant)) proponent" means a citizen, business, or any entity applying for or seeking a permit or permits in the state of Washington.

Sec. 5   RCW 43.42.040 and 2003 c 71 s 4 are each amended to read as follows:
     (1) The office shall assist citizens, businesses, and project ((applicants)) proponents by maintaining and furnishing information, including, but not limited to:
     (a) To the extent possible, compiling and periodically updating one or more handbooks containing lists and explanations of permit laws, including all relevant local, state, federal, and tribal laws. In providing this information, the office shall seek the cooperation of relevant local, state, and federal agencies and tribal governments;
     (b) Establishing and providing notice of a point of contact for obtaining information;
     (c) Working closely and cooperatively with ((the)) business license centers ((in providing)) to provide efficient and nonduplicative service; and
     (d) ((Collecting and making available information regarding federal, state, local, and tribal government programs that rely on private professional expertise to assist agencies in project permit review; and
     (e))) Developing a ((call)) service center and a web site.
     (2) The office shall coordinate among state agencies to develop an office web site that is linked through the office of the governor's web site and that contains information regarding permitting and regulatory requirements for businesses and citizens in Washington state. At a minimum, the web site shall provide information or links to information on:
     (a) Federal, state, and local rule-making processes and ((permit)) permitting and regulatory requirements applicable to Washington businesses and citizens;
     (b) Federal, state, and local licenses, permits, and approvals necessary to start and operate a business or develop real property in Washington;
     (c) State and local building codes;
     (d) Federal, state, and local economic development programs that may be available to businesses in Washington; and
     (e) State and local agencies regulating or providing assistance to citizens and businesses operating a business or developing real property in Washington.
     (3) This section does not create an independent cause of action, affect any existing cause of action, or create any new cause of action regarding the application of regulatory or permit requirements.

Sec. 6   RCW 43.42.050 and 2003 c 54 s 4 are each amended to read as follows:
     At the request of a project ((applicant)) proponent, the office shall assist the project ((applicant)) proponent in determining what regulatory requirements, processes, and permits apply to the project, as provided in this section.
     (1) The office shall assign a project facilitator who shall discuss applicable regulatory requirements, permits, and processes with the project ((applicant)) proponent and explain the available options for obtaining required permits and regulatory review.
     (2) If the project ((applicant)) proponent and the project facilitator agree that the project would benefit from a project scoping, ((or if the project is an industrial project of statewide significance, as defined in RCW 43.157.010,)) the project facilitator shall conduct a project scoping ((by)) with the project ((applicant)) proponent and the relevant ((state and local permit)) permitting and regulatory agencies. The project facilitator shall invite the participation of the relevant federal ((permit)) agencies and tribal governments.
     (a) The purpose of the project scoping is to identify the issues and information needs of the project ((applicant)) proponent and the participating permit agencies regarding the project, share perspectives, and jointly develop a strategy for the processing of required permits by each participating permit agency.
     (b) The scoping shall address:
     (i) The permits that are required for the project;
     (ii) The permit application forms and other application requirements of the participating permit agencies;
     (iii) The specific information needs and issues of concern of each participant and their significance;     
     (iv) Any statutory or regulatory conflicts that might arise from the differing authorities and roles of the permit agencies;
     (v) Any natural resources, including federal or state listed species, that might be adversely affected by the project and might cause an alteration of the project or require mitigation; and
     (vi) The anticipated time required for permit decisions by each participating permit agency, including the time required to determine if the permit application is complete, to conduct environmental review, and to review and process the application. In determining the time required, full consideration must be given to achieving the greatest possible efficiencies through any concurrent studies and any consolidated applications, hearings, and comment periods.
     (c) The outcome of the project scoping shall be documented in writing, furnished to the project ((applicant)) proponent, and be made available to the public.
     (d) The project scoping shall be completed within sixty days of the project ((applicant's)) proponent's request for a project scoping.
     (e) Upon completion of the project scoping, the participating permit agencies shall proceed under their respective authority. The agencies are encouraged to remain in communication for purposes of coordination until their final permit decisions are made.
     (3) This section does not create an independent cause of action, affect any existing cause of action, or establish time limits for purposes of RCW 64.40.020.

Sec. 7   RCW 43.42.060 and 2003 c 54 s 5 are each amended to read as follows:
     (1) The office may coordinate the processing by participating permit agencies of permits required for a project, at the request of the project ((applicant)) proponent through a cost reimbursement agreement as provided in subsection (3) of this section or with the agreement of the project ((applicant)) proponent as provided in subsection (4) of this section.
     (2) The office shall assign a project coordinator to perform any or all of the following functions, as specified by the terms of a cost reimbursement agreement under subsection (3) of this section or an agreement under subsection (4) of this section:
     (a) Serve as the main point of contact for the project ((applicant)) proponent;
     (b) Conduct a project scoping as provided in RCW 43.42.050(2);
     (c) Verify that the project ((applicant)) proponent has all the information needed to complete applications;
     (d) Coordinate the permit processes of the permit agencies;
     (e) Manage the applicable administrative procedures;
     (f) Work to assure that timely permit decisions are made by the permit agencies and maintain contact with the project ((applicant)) proponent and the permit agencies to ensure adherence to schedules;
     (g) Assist in resolving any conflict or inconsistency among permit requirements and conditions; and
     (h) Coordinate with relevant federal permit agencies and tribal governments to the extent possible.
     (3) At the request of a project ((applicant)) proponent and as provided in RCW 43.42.070, the project coordinator shall coordinate negotiations among the project ((applicant)) proponent, the office, and participating permit agencies to enter into a cost reimbursement agreement and shall coordinate implementation of the agreement, which shall govern coordination of permit processing by the participating permit agencies.
     (4) For industrial projects of statewide significance or if the office determines that it is in the public interest to coordinate the processing of permits for certain projects that are complex in scope, require multiple permits, involve multiple jurisdictions, or involve a significant number of affected parties, the office shall, upon the ((applicant's)) proponent's request, enter into an agreement with the project ((applicant)) proponent and the participating permit agencies to coordinate the processing of permits for the project. The office may limit the number of such agreements according to the resources available to the office and the permit agencies at the time.

Sec. 8   RCW 43.42.070 and 2003 c 70 s 7 are each amended to read as follows:
     (1) The office may coordinate negotiation and implementation of a written agreement among the project ((applicant)) proponent, the office, and participating permit agencies to recover from the project ((applicant)) proponent the reasonable costs incurred by the office in carrying out the provisions of RCW 43.42.050(2) and 43.42.060(2) and by participating permit agencies in carrying out permit processing tasks specified in the agreement.
     (2) The office may coordinate negotiation and implementation of a written agreement among the project ((applicant)) proponent, the office, and participating permit agencies to recover from the project ((applicant)) proponent the reasonable costs incurred by outside independent consultants selected by the office and participating permit agencies to perform permit processing tasks.
     (3) Outside independent consultants may only bill for the costs of performing those permit processing tasks that are specified in a cost-reimbursement agreement under this section. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments.
     (4) The office shall adopt a policy to coordinate cost-reimbursement agreements with outside independent consultants. Cost-reimbursement agreements coordinated by the office under this section must be based on competitive bids that are awarded for each agreement from a prequalified consultant roster.
     (5) Independent consultants hired under a cost-reimbursement agreement shall report directly to the permit agency. The office shall assure that final decisions are made by the permit agency and not by the consultant.
     (6) The office shall develop procedures for determining, collecting, and distributing cost reimbursement for carrying out the provisions of this chapter.
     (7) For a cost-reimbursement agreement, the office and participating permit agencies shall negotiate a work plan and schedule for reimbursement. Prior to distributing scheduled reimbursement to the agencies, the office shall verify that the agencies have met the obligations contained in their work plan.
     (8) Prior to commencing negotiations with the project ((applicant)) proponent for a cost-reimbursement agreement, the office shall request work load analyses from each participating permitting agency. These analyses shall be available to the public. The work load of a participating permit agency may only be modified with the concurrence of the agency and if there is both good cause to do so and no significant impact on environmental review.
     (9) The office shall develop guidance to ensure that, in developing cost-reimbursement agreements, conflicts of interest are eliminated.
     (10) For project permit processes that it coordinates, the office shall coordinate the negotiation of all cost-reimbursement agreements executed under RCW 43.21A.690, ((43.30.420)) 43.30.490, 43.70.630, 43.300.080, and 70.94.085. The office and the permit agencies shall be signatories to the agreements. Each permit agency shall manage performance of its portion of the agreement.
     (11) If a permit agency or the project ((applicant)) proponent foresees, at any time, that it will be unable to meet its obligations under the cost-reimbursement agreement, it shall notify the office and state the reasons. The office shall notify the participating permit agencies and the project ((applicant)) proponent and, upon agreement of all parties, adjust the schedule, or, if necessary, coordinate revision of the work plan.

Sec. 9   RCW 43.42.080 and 2004 c 32 s 1 are each amended to read as follows:
     (((1) The legislature finds that there are numerous efforts ongoing to streamline and improve permitting processes. These include the work of the transportation permit efficiency and accountability committee, chapter 47.06C RCW, and the efforts of the office of regulatory assistance to develop an integrated permit system, chapter 245, Laws of 2003. While these efforts are ongoing and likely to yield procedural improvements in permit processing by 2006, there is an immediate need to coordinate permitting timelines for large, multiagency permit streamlining efforts.
     (2))) With the agreement of all participating permitting agencies and the permit ((applicant)) proponent, state permitting agencies may establish timelines to make permit decisions, including the time periods required to determine that the permit applications are complete, to review the applications, and to process the permits. Established timelines shall not be shorter than those otherwise required for each permit under other applicable provisions of law, but may extend and coordinate such timelines. The goal of the established timelines is to achieve the maximum efficiencies possible through concurrent studies and consolidation of applications, permit review, hearings, and comment periods. A timeline established under this subsection with the agreement of each permitting agency shall commit each permitting agency to act within the established timeline.

Sec. 10   RCW 43.21A.690 and 2003 c 70 s 1 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a 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. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement.
     (2) The written cost-reimbursement agreement shall be negotiated with the permit applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.
     (((3) The department may not enter into any new cost-reimbursement agreements on or after July 1, 2007. The department may continue to administer any cost-reimbursement agreement that was entered into before July 1, 2007, until the project is completed.))

Sec. 11   RCW 43.30.490 and 2003 c 70 s 2 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a 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. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement. ((An applicant for a lease issued under chapter 79.90 RCW may not enter into a cost-reimbursement agreement under this section for projects conducted under the lease.))
     (2) The written cost-reimbursement agreement shall be negotiated with the permit or lease applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit or lease. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits or leases, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits or leases not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.
     (((3) The department may not enter into any new cost-reimbursement agreements on or after July 1, 2007. The department may continue to administer any cost-reimbursement agreement that was entered into before July 1, 2007, until the project is completed.))

Sec. 12   RCW 43.70.630 and 2003 c 70 s 3 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a 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. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement.
     (2) The written cost-reimbursement agreement shall be negotiated with the permit applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.
     (((3) The department may not enter into any new cost-reimbursement agreements on or after July 1, 2007. The department may continue to administer any cost-reimbursement agreement that was entered into before July 1, 2007, until the project is completed.))

Sec. 13   RCW 43.300.080 and 2003 c 70 s 4 are each amended to read as follows:
     (1) The department may enter into a written cost-reimbursement agreement with a 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. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement.
     (2) The written cost-reimbursement agreement shall be negotiated with the permit applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.
     (((3) The department may not enter into any new cost-reimbursement agreements on or after July 1, 2007. The department may continue to administer any cost-reimbursement agreement that was entered into before July 1, 2007, until the project is completed.))

Sec. 14   RCW 70.94.085 and 2003 c 70 s 5 are each amended to read as follows:
     (1) An authority may enter into a written cost-reimbursement agreement with a 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. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement.
     (2) The written cost-reimbursement agreement shall be negotiated with the permit applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the air pollution control authority to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The air pollution control authority may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The air pollution control authority shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The air pollution control authority shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The air pollution control authority may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The provisions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement. Members of the air pollution control authority's board of directors shall be considered as state officers, and employees of the air pollution control authority shall be considered as state employees, for the sole purpose of applying the restrictions of chapter 42.52 RCW to this section.
     (((3) An air pollution control authority may not enter into any new cost-reimbursement agreements on or after July 1, 2007. The authority may continue to administer any cost-reimbursement agreement that was entered into before July 1, 2007, until the project is completed.))

Sec. 15   RCW 43.131.401 and 2003 c 71 s 5 are each amended to read as follows:
     The office of regulatory assistance established in RCW 43.42.010 and its powers and duties shall be terminated June 30, ((2007)) 2011, as provided in RCW 43.131.402.

Sec. 16   RCW 43.131.402 and 2003 c 71 s 6 are each amended to read as follows:
     The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((2008)) 2012:
     (1) RCW 43.42.005 and 2003 c 71 § 1 & 2002 c 153 § 1;
     (2) RCW 43.42.010 and 2003 c 71 § 2 & 2002 c 153 § 2;
     (3) RCW 43.42.020 and 2002 c 153 § 3;
     (4) RCW 43.42.030 and 2003 c 71 § 3 & 2002 c 153 § 4;
     (5) RCW 43.42.040 and 2003 c 71 § 4 & 2002 c 153 § 5;
     (6) RCW 43.42.050 and 2002 c 153 § 6;
     (7) RCW 43.42.060 and 2002 c 153 § 7;
     (8) RCW 43.42.070 and 2002 c 153 § 8;
     (9) RCW 43.42.905 and 2002 c 153 § 10;
     (10) RCW 43.42.900 and 2002 c 153 § 11; and
     (11) RCW 43.42.901 and 2002 c 153 § 12.

NEW SECTION.  Sec. 17   RCW 43.42.905 is decodified.

NEW SECTION.  Sec. 18   By July 1, 2008, the joint legislative audit and review committee shall report to the governor and appropriate committees of the legislature on the compliance of the office of regulatory assistance with the sunset review proposed final report, January 4, 2007, findings and recommendations.

NEW SECTION.  Sec. 19   Section 15 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 takes effect immediately.