BILL REQ. #:  S-3054.2 

READ FIRST TIME 05/19/11.   

     AN ACT Relating to consolidating natural resources agencies and programs; amending RCW 70.148.005, 70.148.010, 70.148.020, 70.148.025, 70.148.030, 70.148.035, 70.148.040, 70.148.050, 70.148.060, 70.148.070, 70.148.080, 70.148.090, 70.148.130, 70.148.140, 70.148.150, 70.148.160, 70.148.170, 70.149.010, 70.149.030, 70.149.040, 70.149.050, 70.149.060, 70.149.090, 70.149.120, 90.46.005, 90.46.010, 90.46.015, 90.46.030, 90.46.050, 90.46.090, 90.46.120, 90.46.150, 90.46.160, 90.46.200, 90.46.210, 90.46.220, 90.46.230, 90.46.240, 90.46.250, 90.46.260, 90.46.270, 43.200.015, 43.200.080, 43.200.170, 43.200.180, 43.200.190, 43.200.200, 43.200.230, 70.98.030, 70.98.085, 70.98.095, 70.98.098, and 70.98.130; adding a new section to chapter 77.04 RCW; adding a new section to chapter 43.30 RCW; adding a new section to chapter 70.148 RCW; adding a new section to chapter 90.46 RCW; adding a new section to chapter 43.97 RCW; adding a new section to chapter 70.98 RCW; adding a new section to chapter 43.200 RCW; creating new sections; repealing RCW 90.46.020, 90.46.072, 90.46.110, and 43.200.210; providing effective dates; providing expiration dates; and declaring an emergency.

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

NEW SECTION.  Sec. 101   (1) The department of agriculture, the department of ecology, the department of fish and wildlife, the department of natural resources, the recreation and conservation office, the Puget Sound partnership, and the state parks and recreation commission, in consultation with the office of financial management, must:
     (a) Consolidate administrative regions into no more than four per agency;
     (b) Identify regional or field offices appropriate for use as shared facilities by more than one agency, and maximize the collocation of staff and resources; and
     (c) Identify and implement cross agency efficiencies by maximizing the consolidation of administrative functions among multiple agencies. In implementing this subsection (1)(c), agencies must consider administrative functions including but not limited to human resources, communications, contracting and procurement, public records and disclosure, financial, budgeting, accounting, and information technology.
     (2) The director of the department of fish and wildlife, the commissioner of public lands, the director of the state parks and recreation commission, the director of the department of agriculture, the director of the department of ecology, the executive director of the Puget Sound partnership, and the director of the recreation and conservation office must each designate a representative to serve on the natural resources consolidation team and assist in the implementation of this section.
     (a) The consolidation team must provide a brief summary of the progress in implementing this section, including any legislative or budgetary recommendations, to the office of financial management and to the appropriate committees of the legislature by September 1, 2011, and September 1, 2012.
     (b) The consolidation team may: Invite, at its discretion, other appropriate persons to participate on the transition team; and consult, as necessary, with the department of personnel, the office of financial management, or any other agency with relevant expertise.

NEW SECTION.  Sec. 102   (1) The state conservation commission shall work cooperatively with conservation districts to evaluate and facilitate the consolidation of appropriate conservation districts, with a goal of reducing the total number of conservation districts to thirty-nine.
     (2) The state conservation commission shall provide a brief report to the appropriate committees of the legislature on the progress in implementing this section, along with any legislative recommendations, by October 1, 2011.

NEW SECTION.  Sec. 103   A new section is added to chapter 77.04 RCW to read as follows:
     The department may not establish or maintain more than four administrative regions.

NEW SECTION.  Sec. 104   A new section is added to chapter 43.30 RCW to read as follows:
     The department may not establish or maintain more than four administrative regions.

NEW SECTION.  Sec. 105   Sections 103 and 104 of this act take effect July 1, 2012.

Sec. 201   RCW 70.148.005 and 1990 c 64 s 1 are each amended to read as follows:
     (1) The legislature finds that:
     (a) Final regulations adopted by the United States environmental protection agency (EPA) require owners and operators of underground petroleum storage tanks to demonstrate financial responsibility for accidental releases of petroleum as a precondition to continued ownership and operation of such tanks;
     (b) Financial responsibility is demonstrated through the purchase of pollution liability insurance or an acceptable alternative such as coverage under a state financial responsibility program, in the amount of at least five hundred thousand dollars per occurrence and one million dollars annual aggregate depending upon the nature, use, and number of tanks owned or operated;
     (c) Many owners and operators of underground petroleum storage tanks cannot purchase pollution liability insurance either because private insurance is unavailable at any price or because owners and operators cannot meet the rigid underwriting standards of existing insurers, nor can many owners and operators meet the strict regulatory standards imposed for alternatives to the purchase of insurance; and
     (d) Without a state financial responsibility program for owners and operators of underground petroleum storage tanks, many tank owners and operators will be forced to discontinue the ownership and operation of these tanks.
     (2) The purpose of this chapter is to create a state financial responsibility program meeting EPA standards for owners and operators of underground petroleum storage tanks in a manner that:
     (a) Minimizes state involvement in pollution liability claims management and insurance administration;
     (b) Protects the state of Washington from unwanted and unanticipated liability for accidental release claims;
     (c) Creates incentives for private insurers to provide needed liability insurance; and
     (d) Parallels generally accepted principles of insurance and risk management.
     To that end, this chapter establishes a temporary program to provide pollution liability reinsurance at a price that will encourage a private insurance company or risk retention group to sell pollution liability insurance in accordance with the requirements of this chapter to owners and operators of underground petroleum storage tanks, thereby allowing the owners and operators to comply with the financial responsibility regulations of the EPA.
     (3) It is not the intent of this chapter to permit owners and operators of underground petroleum storage tanks to obtain pollution liability insurance without regard to the quality or condition of their storage tanks or without regard to the risk management practices of tank owners and operators, nor is it the intent of this chapter to provide coverage or funding for past or existing petroleum releases. Further, it is the intent of the legislature that the program follow generally accepted insurance underwriting and actuarial principles and to deviate from those principles only to the extent necessary and within the tax revenue limits provided, to make pollution liability insurance reasonably affordable and available to owners and operators who meet the requirements of this chapter, particularly to those owners and operators whose underground storage tanks meet a vital economic need within the affected community.
     (4) The pollution liability insurance program established by this chapter and chapter 70.149 RCW is merged into the department.
     (5) This section expires June 1, 2013.

Sec. 202   RCW 70.148.010 and 1990 c 64 s 2 are each amended to read as follows:
     Unless the context requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Accidental release" means any sudden or nonsudden release of petroleum arising from operating an underground storage tank that results in a need for corrective action, bodily injury, or property damage neither expected nor intended by the owner or operator.
     (2) "Director" means the ((Washington pollution liability insurance program)) director of the department or the director's appointed representative.
     (3) "Bodily injury" means bodily injury, sickness, or disease sustained by any person, including death at any time resulting from the injury, sickness, or disease.
     (4) "Corrective action" means those actions reasonably required to be undertaken by the insured to remove, treat, neutralize, contain, or clean up an accidental release in order to comply with any statute, ordinance, rule, regulation, directive, order, or similar legal requirement of the United States, the state of Washington, or any political subdivision of the United States or the state of Washington in effect at the time of an accidental release. "Corrective action" includes, when agreed to in writing, in advance by the insurer, action to remove, treat, neutralize, contain, or clean up an accidental release to avert, reduce, or eliminate the liability of the insured for corrective action, bodily injury, or property damage. "Corrective action" also includes actions reasonably necessary to monitor, assess, and evaluate an accidental release.
"Corrective action" does not include:
     (a) Replacement or repair of storage tanks or other receptacles;
     (b) Replacement or repair of piping, connections, and valves of storage tanks or other receptacles;
     (c) Excavation or backfilling done in conjunction with (a) or (b) of this subsection; or
     (d) Testing for a suspected accidental release if the results of the testing indicate that there has been no accidental release.
     (5) "Defense costs" include the costs of legal representation, expert fees, and related costs and expenses incurred in defending against claims or actions brought by or on behalf of:
     (a) The United States, the state of Washington, or any political subdivision of the United States or state of Washington to require corrective action or to recover costs of corrective action; or
     (b) A third party for bodily injury or property damage caused by an accidental release.
     (6) (("Washington pollution liability insurance program" or "program" means the reinsurance program created by this chapter)) "Department" means the Washington state department of ecology.
     (7) "Insured" means the owner or operator who is provided insurance coverage in accordance with this chapter.
     (8) "Insurer" means the insurance company or risk retention group licensed or qualified to do business in Washington and authorized by the ((director)) department to provide insurance coverage in accordance with this chapter.
     (9) "Loss reserve" means the amount traditionally set aside by commercial liability insurers for costs and expenses related to claims that have been made. "Loss reserve" does not include losses that have been incurred but not reported to the insurer.
     (10) "Occurrence" means an accident, including continuous or repeated exposure to conditions, that results in a release from an underground storage tank.
     (11) "Operator" means a person in control of, or having responsibility for, the daily operation of an underground storage tank.
     (12) "Owner" means a person who owns an underground storage tank.
     (13) "Person" means an individual, trust, firm, joint stock company, corporation (including government corporation), partnership, association, consortium, joint venture, commercial entity, state, municipality, commission, political subdivision of a state, interstate body, the federal government, or any department or agency of the federal government.
     (14) "Petroleum" means crude oil or any fraction of crude oil that is liquid at standard conditions of temperature and pressure, which means at sixty degrees Fahrenheit and 14.7 pounds per square inch absolute and includes gasoline, kerosene, heating oils, and diesel fuels.
     (15) "Property damage" means:
     (a) Physical injury to, destruction of, or contamination of tangible property, including the loss of use of the property resulting from the injury, destruction, or contamination; or
     (b) Loss of use of tangible property that has not been physically injured, destroyed, or contaminated but has been evacuated, withdrawn from use, or rendered inaccessible because of an accidental release.
     (16) "Release" means the emission, discharge, disposal, dispersal, seepage, or escape of petroleum from an underground storage tank into or upon land, groundwater, surface water, subsurface soils, or the atmosphere.
     (17) "Surplus reserve" means the amount traditionally set aside by commercial property and casualty insurance companies to provide financial protection from unexpected losses and to serve, in part, as a measure of an insurance company's net worth.
     (18) "Tank" means a stationary device, designed to contain an accumulation of petroleum, that is constructed primarily of nonearthen materials such as wood, concrete, steel, or plastic that provides structural support.
     (19) "Underground storage tank" means any one or a combination of tanks including underground pipes connected to the tank, that is used to contain an accumulation of petroleum and the volume of which (including the volume of the underground pipes connected to the tank) is ten percent or more beneath the surface of the ground.
     (20) "Pollution liability insurance program" or "program" means the reinsurance program created in this chapter.
     This section expires June 1, 2013.

Sec. 203   RCW 70.148.020 and 2006 c 276 s 1 are each amended to read as follows:
     (1) The pollution liability insurance program trust account is established in the custody of the state treasurer. All funds appropriated for this chapter and all premiums collected for reinsurance shall be deposited in the account. Expenditures from the account shall be used exclusively for the purposes of this chapter including payment of costs of administering the pollution liability insurance and underground storage tank community assistance programs. Expenditures for payment of administrative and operating costs of the ((agency)) program are subject to the allotment procedures under chapter 43.88 RCW and may be made only after appropriation by statute. No appropriation is required for other expenditures from the account.
     (2) Each calendar quarter, the ((director)) department shall report to the insurance commissioner the loss and surplus reserves required for the calendar quarter. The ((director)) department shall notify the department of revenue of this amount by the fifteenth day of each calendar quarter.
     (3) Each calendar quarter the ((director)) department shall determine the amount of reserves necessary to fund commitments made to provide financial assistance under RCW 70.148.130 to the extent that the financial assistance reserves do not jeopardize the operations and liabilities of the pollution liability insurance program. The ((director)) department shall notify the department of revenue of this amount by the fifteenth day of each calendar quarter. The ((director)) department may immediately establish an initial financial assistance reserve of five million dollars from available revenues. The director may not expend more than fifteen million dollars for the financial assistance program.
     (4) ((During the 2005-2007 fiscal biennium, the legislature may transfer from the pollution liability insurance program trust account to the state general fund such amounts as reflect the excess fund balance of the account.
     (5))) This section expires June 1, 2013.

Sec. 204   RCW 70.148.025 and 1995 c 20 s 12 are each amended to read as follows:
     (1) The ((director)) department shall provide reinsurance through the pollution liability insurance program trust account to the heating oil pollution liability protection program under chapter 70.149 RCW.
     (2) This section expires June 1, 2013.

Sec. 205   RCW 70.148.030 and 1994 sp.s. c 9 s 805 are each amended to read as follows:
     (1) The ((Washington)) pollution liability insurance program is ((created as an independent agency of the state. The administrative head and appointing authority of the program shall be the director who shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The salary for this office shall be set by the governor pursuant to RCW 43.03.040. The director shall appoint a deputy director. The director, deputy director, and up to three other employees are exempt from the civil service law, chapter 41.06 RCW)) merged into the department. The administrative head must be appointed by the director. The administrative head of the program and up to three other employees are exempt from the civil service law, chapter 41.06 RCW, and serve at the pleasure of the director.
     (2) The director shall employ such other staff as are necessary to fulfill the responsibilities and duties of the ((director)) department. The staff is subject to the civil service law, chapter 41.06 RCW. In addition, the director may contract with third parties for services necessary to carry out its activities where this will promote economy, avoid duplication of effort, and make best use of available expertise. To the extent necessary to protect the state from unintended liability and ensure quality program and contract design, the director shall contract with an organization or organizations with demonstrated experience and ability in managing and designing pollution liability insurance and with an organization or organizations with demonstrated experience and ability in managing and designing pollution liability reinsurance. The director shall enter into such contracts after competitive bid but need not select the lowest bid. Any such contractor or consultant is prohibited from releasing, publishing, or otherwise using any information made available to it under its contractual responsibility without specific permission of the ((program)) director. The director may call upon other agencies of the state to provide technical support and available information as necessary to assist the director in meeting the director's responsibilities under this chapter. Agencies shall supply this support and information as promptly as circumstances permit.
     (3) The ((director)) department may appoint ad hoc technical advisory committees to obtain expertise necessary to fulfill the purposes of this chapter.
     (4) This section expires June 1, 2013.

Sec. 206   RCW 70.148.035 and 1990 c 64 s 11 are each amended to read as follows:
     (1) The ((director)) department may design the program to cover the costs incurred in determining whether a proposed applicant for pollution insurance under the program meets the underwriting standards of the insurer. In covering such costs the ((director)) department shall consider the financial resources of the applicant, shall take into consideration the economic impact of the discontinued use of the applicant's storage tank upon the affected community, shall provide coverage within the revenue limits provided under this chapter, and shall limit coverage of such costs to the extent that coverage would be detrimental to providing affordable insurance under the program.
     (2) This section expires June 1, 2013.

Sec. 207   RCW 70.148.040 and 1990 c 64 s 5 are each amended to read as follows:
     (1) The ((director)) department may adopt rules consistent with this chapter to carry out the purposes of this chapter. All rules shall be adopted in accordance with chapter 34.05 RCW.
     (2) This section expires June 1, 2013.

Sec. 208   RCW 70.148.050 and 2006 c 276 s 2 are each amended to read as follows:
     The ((director)) department has the following powers and duties:
     (1) To design and from time to time revise a reinsurance contract providing coverage to an insurer meeting the requirements of this chapter. Before initially entering into a reinsurance contract, the ((director)) department shall prepare an actuarial report describing the various reinsurance methods considered by the ((director)) department and describing each method's costs. In designing the reinsurance contract the ((director)) department shall consider common insurance industry reinsurance contract provisions and shall design the contract in accordance with the following guidelines:
     (a) The contract shall provide coverage to the insurer for the liability risks of owners and operators of underground storage tanks for third party bodily injury and property damage and corrective action that are underwritten by the insurer.
     (b) In the event of an insolvency of the insurer, the reinsurance contract shall provide reinsurance payable directly to the insurer or to its liquidator, receiver, or successor on the basis of the liability of the insurer in accordance with the reinsurance contract. In no event may the program be liable for or provide coverage for that portion of any covered loss that is the responsibility of the insurer whether or not the insurer is able to fulfill the responsibility.
     (c) The total limit of liability for reinsurance coverage shall not exceed one million dollars per occurrence and two million dollars annual aggregate for each policy underwritten by the insurer less the ultimate net loss retained by the insurer as defined and provided for in the reinsurance contract.
     (d) Disputes between the insurer and the insurance program shall be settled through arbitration.
     (2) To design and implement a structure of periodic premiums due the ((director)) department from the insurer that takes full advantage of revenue collections and projected revenue collections to ensure affordable premiums to the insured consistent with sound actuarial principles.
     (3) To periodically review premium rates for reinsurance to determine whether revenue appropriations supporting the program can be reduced without substantially increasing the insured's premium costs.
     (4) To solicit bids from insurers and select an insurer to provide pollution liability insurance to owners and operators of underground storage tanks for third party bodily injury and property damage and corrective action.
     (5) To monitor the activities of the insurer to ensure compliance with this chapter and protect the program from excessive loss exposure resulting from claims mismanagement by the insurer.
     (6) To monitor the success of the program and periodically make such reports and recommendations to the legislature as the ((director)) department deems appropriate, and to annually publish a financial report on the pollution liability insurance program trust account showing, among other things, administrative and other expenses paid from the fund.
     (7) To annually report the financial and loss experience of the insurer as to policies issued under the program and the financial and loss experience of the program to the legislature.
     (8) To enter into contracts with public and private agencies to assist the ((director)) department in ((his or her)) its duties to design, revise, monitor, and evaluate the program and to provide technical or professional assistance to the ((director)) department.
     (9) To examine the affairs, transactions, accounts, records, documents, and assets of insurers as the ((director)) department deems advisable.
     This section expires June 1, 2013.

Sec. 209   RCW 70.148.060 and 2005 c 274 s 341 are each amended to read as follows:
     (1) All examination and proprietary reports and information obtained by the ((director)) department and the ((director's)) department's staff in soliciting bids from insurers and in monitoring the insurer selected by the ((director)) department shall not be made public or otherwise disclosed to any person, firm, corporation, agency, association, governmental body, or other entity.
     (2) Subsection (1) of this section notwithstanding, the ((director)) department may furnish all or part of examination reports prepared by the ((director)) department or by any person, firm, corporation, association, or other entity preparing the reports on behalf of the ((director)) department to:
     (a) The Washington state insurance commissioner;
     (b) A person or organization officially connected with the insurer as officer, director, attorney, auditor, or independent attorney or independent auditor; and
     (c) The attorney general in his or her role as legal advisor to the ((director)) department.
     (3) Subsection (1) of this section notwithstanding, the ((director)) department may furnish all or part of the examination or proprietary reports or information obtained by the ((director)) department to:
     (a) The Washington state insurance commissioner; and
     (b) A person, firm, corporation, association, governmental body, or other entity with whom the ((director)) department has contracted for services necessary to perform his or her official duties.
     (4) Examination reports and proprietary information obtained by the ((director)) department and the ((director's)) department's staff are not subject to public disclosure under chapter 42.56 RCW.
     (5) A person who violates any provision of this section is guilty of a gross misdemeanor.
     (6) This section expires June 1, 2013.

Sec. 210   RCW 70.148.070 and 1990 c 64 s 8 are each amended to read as follows:
     (1) In selecting an insurer to provide pollution liability insurance coverage to owners and operators of underground storage tanks, the ((director)) department shall evaluate bids based upon criteria established by the ((director)) department that shall include:
     (a) The insurer's ability to underwrite pollution liability insurance;
     (b) The insurer's ability to settle pollution liability claims quickly and efficiently;
     (c) The insurer's estimate of underwriting and claims adjustment expenses;
     (d) The insurer's estimate of premium rates for providing coverage;
     (e) The insurer's ability to manage and invest premiums; and
     (f) The insurer's ability to provide risk management guidance to insureds.
     The ((director)) department shall select the bidder most qualified to provide insurance consistent with this chapter and need not select the bidder submitting the least expensive bid. The ((director)) department may consider bids by groups of insurers and management companies who propose to act in concert in providing coverage and who otherwise meet the requirements of this chapter.
     (2) The successful bidder shall agree to provide liability insurance coverage to owners and operators of underground storage tanks for third party bodily injury and property damage and corrective action consistent with the following minimum standards:
     (a) The insurer shall provide coverage for defense costs.
     (b) The insurer shall collect a deductible from the insured for corrective action in an amount approved by the ((director)) department.
     (c) The insurer shall provide coverage for accidental releases in the amount of five hundred thousand dollars per occurrence and one million dollars annual aggregate but no more than one million dollars per occurrence and two million dollars annual aggregate exclusive of defense costs.
     (d) The insurer shall require insurance applicants to meet at least the following underwriting standards before issuing coverage to the applicant:
     (i) The applicant must be in compliance with statutes, ordinances, rules, regulations, and orders governing the ownership and operation of underground storage tanks as identified by the ((director)) department by rule; and
     (ii) The applicant must exercise adequate underground storage tank risk management as specified by the ((director)) department by rule.
     (e) The insurer may exclude coverage for losses arising before the effective date of coverage, and the ((director)) department may adopt rules establishing standards for determining whether a loss was incurred before the effective date of coverage.
     (f) The insurer may exclude coverage for bodily injury, property damage, and corrective action as permitted by the ((director)) department by rule.
     (g) The insurer shall use a variable rate schedule approved by the ((director)) department taking into account tank type, tank age, and other factors specified by the ((director)) department.
     (3) The ((director)) department shall adopt all rules necessary to implement this section. In developing and adopting rules governing rates, deductibles, underwriting standards, and coverage conditions, limitations, and exclusions, the ((director)) department shall balance the owner and operator's need for coverage with the need to maintain the actuarial integrity of the program, shall take into consideration the economic impact of the discontinued use of a storage tank upon the affected community, and shall consult with the ((standing)) ad hoc technical advisory committee established under RCW 70.148.030(3). ((In developing and adopting rules governing coverage exclusions affecting corrective action, the director shall consult with the Washington state department of ecology.))
     (4) Notwithstanding the definitions contained in RCW 70.148.010, the ((director)) department may permit an insurer to use different words or phrases describing the coverage provided under the program. In permitting such deviations from the definitions contained in RCW 70.148.010, the ((director)) department shall consider the regulations adopted by the United States environmental protection agency requiring financial responsibility by owners and operators of underground petroleum storage tanks.
     (5) Owners and operators of underground storage tanks or sites containing underground storage tanks where a preexisting release has been identified or where the owner or operator knows of a preexisting release are eligible for coverage under the program subject to the following conditions:
     (a) The owner or operator must have a plan for proceeding with corrective action; and
     (b) If the owner or operator files a claim with the insurer, the owner or operator has the burden of proving that the claim is not related to a preexisting release until the owner or operator demonstrates to the satisfaction of the ((director)) department that corrective action has been completed.
     (6) ((When)) Within thirty days of a reinsurance contract ((has been)) being entered into by the ((agency)) department and insurance companies, ((the director shall notify the department of ecology of the letting of the contract. Within thirty days of that notification,)) the department ((of ecology)) shall notify all known owners and operators of petroleum underground storage tanks that appropriate levels of financial responsibility must be established by October 26, 1990, in accordance with federal environmental protection agency requirements, and that insurance under the program is available. All owners and operators of petroleum underground storage tanks must also be notified that declaration of method of financial responsibility or intent to seek to be insured under the program must be made to the state by November 1, 1990. If the declaration of method of financial responsibility is not made by November 1, 1990, the department ((of ecology)) shall, pursuant to chapter 90.76 RCW, prohibit the owner or operator of an underground storage tank from obtaining a tank tag or receiving petroleum products until such time as financial responsibility has been established.
     (7) This section expires June 1, 2013.

Sec. 211   RCW 70.148.080 and 1990 c 64 s 9 are each amended to read as follows:
     (1) If the insurer cancels or refuses to issue or renew a policy, the affected owner or operator may appeal the insurer's decision to the director or the director's designee. The director or the director's designee shall conduct a brief adjudicative proceeding under chapter 34.05 RCW.
     (2) This section expires June 1, 2013.

Sec. 212   RCW 70.148.090 and 1990 c 64 s 10 are each amended to read as follows:
     (1) The activities and operations of the program are exempt from the provisions and requirements of Title 48 RCW and to the extent of their participation in the program, the activities and operations of the insurer selected by the ((director)) department to provide liability insurance coverage to owners and operators of underground storage tanks are exempt from the requirements of Title 48 RCW except for:
     (a) Chapter 48.03 RCW pertaining to examinations;
     (b) RCW 48.05.250 pertaining to annual reports;
     (c) Chapter 48.12 RCW pertaining to assets and liabilities;
     (d) Chapter 48.13 RCW pertaining to investments;
     (e) Chapter 48.30 RCW pertaining to deceptive, false, or fraudulent acts or practices; and
     (f) Chapter 48.92 RCW pertaining to liability risk retention.
     (2) To the extent of their participation in the program, the insurer selected by the ((director)) department to provide liability insurance coverage to owners and operators of underground storage tanks shall not participate in the Washington insurance guaranty association nor shall the association be liable for coverage provided to owners and operators of underground storage tanks issued in connection with the program.
     (3) This section expires June 1, 2013.

Sec. 213   RCW 70.148.130 and 2005 c 428 s 2 are each amended to read as follows:
     (1) Subject to the conditions and limitations of RCW 70.148.120 through 70.148.170, the ((director)) department shall establish and manage a program for providing financial assistance to public and private owners and operators of underground storage tanks who have been certified by the governing body of the county, city, or town in which the tanks are located as meeting a vital local government, public health or safety need. In providing such financial assistance the ((director)) department shall:
     (a) Require owners and operators, including local government owners and operators, to demonstrate serious financial hardship;
     (b) Limit assistance to only that amount necessary to supplement applicant financial resources;
     (c) Limit assistance to no more than two hundred thousand dollars in value for any one underground storage tank site of which amount no more than seventy-five thousand dollars in value may be provided for corrective action; and
     (d) Whenever practicable, provide assistance through the direct payment of contractors and other professionals for labor, materials, and other services.
     (2)(a) Except as otherwise provided in RCW 70.148.120 through 70.148.170, no grant of financial assistance may be used for any purpose other than for corrective action and repair, replacement, reconstruction, and improvement of underground storage tanks and tank sites. If at any time prior to providing financial assistance or in the course of providing such assistance, it appears to the ((director)) department that corrective action costs may exceed seventy-five thousand dollars, the ((director)) department may not provide further financial assistance until the owner or operator has developed and implemented a corrective action plan with the department ((of ecology)).
     (b) A grant of financial assistance may also be made to an owner or operator that has discontinued using underground petroleum storage tanks due to economic hardship. An owner or operator may receive a grant up to two hundred thousand dollars per retailing location if:
     (i) The property is located in an underserved rural area;
     (ii) The property was previously used by a private owner or operator to provide motor vehicle fuel; and
     (iii) The property is at least ten miles from the nearest motor vehicle fuel service station.
     (3) When requests for financial assistance exceed available funds, the ((director)) department shall give preference to providing assistance first to those underground storage tank sites which constitute the sole source of petroleum products in remote rural communities.
     (4) The ((director shall consult with the)) department ((of ecology)), in approving financial assistance for corrective action ((to)), shall ensure compliance with ((regulations)) rules governing underground petroleum storage tanks and corrective action.
     (5) The ((director)) department shall approve or disapprove applications for financial assistance within sixty days of receipt of a completed application meeting the requirements of RCW 70.148.120 through 70.148.170. The certification by local government of an owner or operator shall not preclude the ((director)) department from disapproving an application for financial assistance if the ((director)) department finds that such assistance would not meet the purposes of RCW 70.148.120 through 70.148.170.
     (6) The ((director)) department may adopt all rules necessary to implement the financial assistance program and shall consult with the technical advisory committee established under RCW 70.148.030 in developing such rules and in reviewing applications for financial assistance.
     (7) This section expires June 1, 2013.

Sec. 214   RCW 70.148.140 and 1991 c 4 s 3 are each amended to read as follows:
     (1) To qualify for financial assistance, a private owner or operator retailing petroleum products to the public must:
     (a) First apply for insurance from the pollution liability insurance program and request financial assistance in a form and manner required by the ((director)) department;
     (b) If the ((director)) department makes a preliminary determination of possible eligibility for financial assistance, apply to the appropriate governing body of the city or town in which the tanks are located or in the case where the tanks are located outside of the jurisdiction of a city or town, then to the appropriate governing body of the county in which the tanks are located, for a determination by the governing body of the city, town, or county that the continued operation of the tanks meets a vital local government, or public health or safety need; and
     (c) Qualify for insurance coverage from the pollution liability insurance program if such financial assistance were to be provided.
     (2) In consideration for financial assistance and prior to receiving such assistance the owner and operator must enter into an agreement with the state whereby the owner and operator agree:
     (a) To sell petroleum products to the public;
     (b) To maintain the tank site for use in the retail sale of petroleum products for a period of not less than fifteen years from the date of agreement;
     (c) To sell petroleum products to local government entities within the affected community on a cost-plus basis periodically negotiated between the owner and operator and the city, town, or county in which the tanks are located; and
     (d) To maintain compliance with state underground storage tank financial responsibility and environmental regulations.
     (3) The agreement shall be filed as a real property lien against the tank site with the county auditor (([of the county])) of the county in which the tanks are located. If the owner or operator transfers his or her interest in such property, the new owner or operator must agree to abide by the agreement or any financial assistance provided under RCW 70.148.120 through 70.148.170 shall be immediately repaid to the state by the owner or operator who received such assistance.
     (4) As determined by the ((director)) department, if an owner or operator materially breaches the agreement, any financial assistance provided shall be immediately repaid by such owner or operator.
     (5) The agreement between an owner and operator and the state required under this section shall expire fifteen years from the date of entering into the agreement.
     (6) This section expires June 1, 2013.

Sec. 215   RCW 70.148.150 and 1991 c 4 s 4 are each amended to read as follows:
     (1) To qualify for financial assistance, a public owner or operator must:
     (a) First apply for insurance from the pollution liability insurance program and request financial assistance in a form and manner required by the ((director)) department;
     (b) Provide to the ((director)) department a copy of the resolution by the governing body of the city, town, or county having jurisdiction, finding that the continued operation of the tanks is necessary to maintain vital local public health, education, or safety needs;
     (c) Qualify for insurance coverage from the pollution liability insurance program if such financial assistance were to be provided.
     (2) The ((director)) department shall give priority to and shall encourage local government entities to consolidate multiple operational underground storage tank sites into as few sites as possible. For this purpose, the ((director)) department may provide financial assistance for the establishment of a new local government underground storage tank site contingent upon the closure of other operational sites in accordance with environmental regulations. Within the per site financial limits imposed under RCW 70.148.120 through 70.148.170, the ((director)) department may authorize financial assistance for the closure of operational sites when closure is for the purpose of consolidation.
     (3) This section expires June 1, 2013.

Sec. 216   RCW 70.148.160 and 1991 c 4 s 5 are each amended to read as follows:
     To qualify for financial assistance, a rural hospital ((as defined in RCW 18.89.020)), owning or operating an underground storage tank must:
     (1) First apply for insurance from the pollution liability insurance program and request financial assistance in a form and manner required by the ((director)) department;
     (2) Apply to the governing body of the city, town, or county in which the hospital is located for certification that the continued operation of the tank or tanks is necessary to maintain vital local public health or safety needs;
     (3) Qualify for insurance coverage from the pollution liability insurance program if such financial assistance were to be provided; and
     (4) Agree to provide charity care ((as defined in RCW 70.39.020)) in an amount of equivalent value to the financial assistance provided under RCW 70.148.120 through 70.148.170. The ((director)) department shall consult with the department of health to monitor and determine the time period over which such care should be expected to be provided in the local community.
     (5) This section expires June 1, 2013.

Sec. 217   RCW 70.148.170 and 1991 c 4 s 6 are each amended to read as follows:
     (1) The ((director)) department shall develop and distribute to appropriate cities, towns, and counties a form for use by the local government in making the certification required for all private owner and operator financial assistance along with instructions on the use of such form.
     (2) In certifying a private owner or operator retailing petroleum products to the public as meeting vital local government, public health or safety needs, the local government shall:
     (a) Consider and find that other retail suppliers of petroleum products are located remote from the local community;
     (b) Consider and find that the owner or operator requesting certification is capable of faithfully fulfilling the agreement required for financial assistance;
     (c) Designate the local government official who will be responsible for negotiating the price of petroleum products to be sold on a cost-plus basis to the local government entities in the affected communities and the entities eligible to receive petroleum products at such price; and
     (d) State the vital need or needs that the owner or operator meets.
     (3) In certifying a hospital as meeting local public health and safety needs the local government shall:
     (a) Consider and find that the continued use of the underground storage tank by the hospital is necessary; and
     (b) Consider and find that the hospital provides health care services to the poor and otherwise provides charity care.
     (4) The ((director)) department shall notify the governing body of the city, town, or county providing certification when financial assistance for a private owner or operator has been approved.
     (5) This section expires June 1, 2013.

Sec. 218   RCW 70.149.010 and 1995 c 20 s 1 are each amended to read as follows:
     (1) It is the intent of the legislature to establish a temporary regulatory program to assist owners and operators of heating oil tanks. The legislature finds that it is in the best interests of all citizens for heating oil tanks to be operated safely and for tank leaks or spills to be dealt with expeditiously. The legislature further finds that it is necessary to protect tank owners from the financial hardship related to damaged heating oil tanks. The problem is especially acute because owners and operators of heating oil tanks used for space heating have been unable to obtain pollution liability insurance or insurance has been unaffordable.
     (2) The pollution liability insurance program established by this chapter and chapter 70.148 RCW is merged into the department.
     (3) This section expires June 1, 2013.

Sec. 219   RCW 70.149.030 and 1995 c 20 s 3 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Accidental release" means a sudden or nonsudden release of heating oil, occurring after July 23, 1995, from operating a heating oil tank that results in bodily injury, property damage, or a need for corrective action, neither expected nor intended by the owner or operator.
     (2) "Bodily injury" means bodily injury, sickness, or disease sustained by a person, including death at any time, resulting from the injury, sickness, or disease.
     (3)(a) "Corrective action" means those actions reasonably required to be undertaken by the insured to remove, treat, neutralize, contain, or clean up an accidental release in order to comply with a statute, ordinance, rule, regulation, directive, order, or similar legal requirement, in effect at the time of an accidental release, of the United States, the state of Washington, or a political subdivision of the United States or the state of Washington. "Corrective action" includes, where agreed to in writing, in advance by the insurer, action to remove, treat, neutralize, contain, or clean up an accidental release to avert, reduce, or eliminate the liability of the insured for corrective action, bodily injury, or property damage. "Corrective action" also includes actions reasonably necessary to monitor, assess, and evaluate an accidental release.
     (b) "Corrective action" does not include:
     (i) Replacement or repair of heating oil tanks or other receptacles; or
     (ii) Replacement or repair of piping, connections, and valves of tanks or other receptacles.
     (4) "Defense costs" include the costs of legal representation, expert fees, and related costs and expenses incurred in defending against claims or actions brought by or on behalf of:
     (a) The United States, the state of Washington, or a political subdivision of the United States or state of Washington to require corrective action or to recover costs of corrective action; or
     (b) A third party for bodily injury or property damage caused by an accidental release.
     (5) "Director" means the director of the ((Washington state pollution liability insurance agency)) department or the director's appointed representative.
     (6) "Heating oil" means any petroleum product used for space heating in oil-fired furnaces, heaters, and boilers, including stove oil, diesel fuel, or kerosene. "Heating oil" does not include petroleum products used as fuels in motor vehicles, marine vessels, trains, buses, aircraft, or any off-highway equipment not used for space heating, or for industrial processing or the generation of electrical energy.
     (7) "Heating oil tank" means a tank and its connecting pipes, whether above or below ground, or in a basement, with pipes connected to the tank for space heating of human living or working space on the premises where the tank is located. "Heating oil tank" does not include a decommissioned or abandoned heating oil tank, or a tank used solely for industrial process heating purposes or generation of electrical energy.
     (8) "Occurrence" means an accident, including continuous or repeated exposure to conditions, that results in a release from a heating oil tank.
     (9) "Owner or operator" means a person in control of, or having responsibility for, the daily operation of a heating oil tank.
     (10) "Pollution liability insurance ((agency)) program" or "program" means the Washington state pollution liability insurance ((agency)) program located within the department.
     (11) "Property damage" means:
     (a) Physical injury to, destruction of, or contamination of tangible property, including the loss of use of the property resulting from the injury, destruction, or contamination; or
     (b) Loss of use of tangible property that has not been physically injured, destroyed, or contaminated but has been evacuated, withdrawn from use, or rendered inaccessible because of an accidental release.
     (12) "Release" means a spill, leak, emission, escape, or leaching into the environment.
     (13) "Remedial action costs" means reasonable costs that are attributable to or associated with a remedial action.
     (14) "Tank" means a stationary device, designed to contain an accumulation of heating oil, that is constructed primarily of nonearthen materials such as concrete, steel, fiberglass, or plastic that provides structural support.
     (15) "Third-party liability" means the liability of a heating oil tank owner to another person due to property damage or personal injury that results from a leak or spill.
     (16) "Department" means the Washington state department of ecology.
     This section expires June 1, 2013.

Sec. 220   RCW 70.149.040 and 2009 c 560 s 11 are each amended to read as follows:
     The ((director)) department shall:
     (1) Design a program, consistent with RCW 70.149.120, for providing pollution liability insurance for heating oil tanks that provides up to sixty thousand dollars per occurrence coverage and aggregate limits, and protects the state of Washington from unwanted or unanticipated liability for accidental release claims;
     (2) Administer, implement, and enforce the provisions of this chapter. To assist in administration of the program, the director is authorized to appoint up to two employees who are exempt from the civil service law, chapter 41.06 RCW, and who shall serve at the pleasure of the director;
     (3) Administer the heating oil pollution liability trust account, as established under RCW 70.149.070;
     (4) Employ and discharge, at ((his or her)) its discretion, agents, attorneys, consultants, companies, organizations, and employees as deemed necessary, and to prescribe their duties and powers, and fix their compensation;
     (5) Adopt rules under chapter 34.05 RCW as necessary to carry out the provisions of this chapter;
     (6) Design and from time to time revise a reinsurance contract providing coverage to an insurer or insurers meeting the requirements of this chapter. The ((director)) department is authorized to provide reinsurance through the pollution liability insurance program trust account;
     (7) Solicit bids from insurers and select an insurer to provide pollution liability insurance for third-party bodily injury and property damage, and corrective action to owners and operators of heating oil tanks;
     (8) Register, and design a means of accounting for, operating heating oil tanks;
     (9) Implement a program to provide advice and technical assistance to owners and operators of active and abandoned heating oil tanks if contamination from an active or abandoned heating oil tank is suspected. Advice and assistance regarding administrative and technical requirements may include observation of testing or site assessment and review of the results of reports. If the ((director)) department finds that contamination is not present or that the contamination is apparently minor and not a threat to human health or the environment, the ((director)) department may provide written opinions and conclusions on the results of the investigation to owners and operators of active and abandoned heating oil tanks. The ((agency)) department is authorized to collect, from persons requesting advice and assistance, the costs incurred by the ((agency)) department in providing such advice and assistance. The costs may include travel costs and expenses associated with review of reports and preparation of written opinions and conclusions. Funds from cost reimbursement must be deposited in the heating oil pollution liability trust account. The state of Washington, the department, the pollution liability insurance ((agency)) program, and its officers and employees are immune from all liability, and no cause of action arises from any act or omission in providing, or failing to provide, such advice, opinion, conclusion, or assistance;
     (10) Establish a public information program to provide information regarding liability, technical, and environmental requirements associated with active and abandoned heating oil tanks;
     (11) Monitor ((agency)) program expenditures and seek to minimize costs and maximize benefits to ensure responsible financial stewardship;
     (12) Study if appropriate user fees to supplement program funding are necessary and develop recommendations for legislation to authorize such fees.
     This section expires June 1, 2013.

Sec. 221   RCW 70.149.050 and 1995 c 20 s 5 are each amended to read as follows:
     (1) In selecting an insurer to provide pollution liability insurance coverage to owners and operators of heating oil tanks used for space heating, the ((director)) department shall evaluate bids based upon criteria established by the ((director)) department that shall include:
     (a) The insurer's ability to underwrite pollution liability insurance;
     (b) The insurer's ability to settle pollution liability claims quickly and efficiently;
     (c) The insurer's estimate of underwriting and claims adjustment expenses;
     (d) The insurer's estimate of premium rates for providing coverage;
     (e) The insurer's ability to manage and invest premiums; and
     (f) The insurer's ability to provide risk management guidance to insureds.
     (2) The ((director)) department shall select the bidder most qualified to provide insurance consistent with this chapter and need not select the bidder submitting the least expensive bid. The ((director)) department may consider bids by groups of insurers and management companies who propose to act in concert in providing coverage and who otherwise meet the requirements of this chapter.
     (3) Owners and operators of heating oil tanks, or sites containing heating oil tanks where a preexisting release has been identified or where the owner or operator knows of a preexisting release are eligible for coverage under the program subject to the following conditions:
     (a) The owner or operator must have a plan for proceeding with corrective action; and
     (b) If the owner or operator files a claim with the insurer, the owner or operator has the burden of proving that the claim is not related to a preexisting release until the owner or operator demonstrates to the satisfaction of the ((director)) department that corrective action has been completed.
     (4) This section expires June 1, 2013.

Sec. 222   RCW 70.149.060 and 1995 c 20 s 6 are each amended to read as follows:
     (1) The activities and operations of the program are exempt from the provisions and requirements of Title 48 RCW and to the extent of their participation in the program, the activities and operations of the insurer selected by the ((director)) department to provide liability insurance coverage to owners and operators of heating oil tanks are exempt from the requirements of Title 48 RCW except for:
     (a) Chapter 48.03 RCW pertaining to examinations;
     (b) RCW 48.05.250 pertaining to annual reports;
     (c) Chapter 48.12 RCW pertaining to assets and liabilities;
     (d) Chapter 48.13 RCW pertaining to investments;
     (e) Chapter 48.30 RCW pertaining to deceptive, false, or fraudulent acts or practices; and
     (f) Chapter 48.92 RCW pertaining to liability risk retention.
     (2) To the extent of their participation in the program, the insurer selected by the ((director)) department to provide liability insurance coverage to owners and operators of heating oil tanks shall not participate in the Washington insurance guaranty association nor shall the association be liable for coverage provided to owners and operators of heating oil tanks issued in connection with the program.
     (3) This section expires June 1, 2013.

Sec. 223   RCW 70.149.090 and 2005 c 274 s 342 are each amended to read as follows:
     The following shall be confidential and exempt under chapter 42.56 RCW, subject to the conditions set forth in this section:
     (1) All examination and proprietary reports and information obtained by the ((director)) department and the ((director's)) department's staff in soliciting bids from insurers and in monitoring the insurer selected by the ((director)) department may not be made public or otherwise disclosed to any person, firm, corporation, agency, association, governmental body, or other entity.
     (2) All information obtained by the ((director)) department or the ((director's)) department's staff related to registration of heating oil tanks to be insured may not be made public or otherwise disclosed to any person, firm, corporation, agency, association, governmental body, or other entity.
     (3) The ((director)) department may furnish all or part of examination reports prepared by the ((director)) department or by any person, firm, corporation, association, or other entity preparing the reports on behalf of the ((director)) department to:
     (a) The Washington state insurance commissioner;
     (b) A person or organization officially connected with the insurer as officer, director, attorney, auditor, or independent attorney or independent auditor; and
     (c) The attorney general in his or her role as legal advisor to the ((director)) department.
     This section expires June 1, 2013.

Sec. 224   RCW 70.149.120 and 2007 c 240 s 2 are each amended to read as follows:
     (1) The ((pollution liability insurance agency)) department shall identify design criteria for heating oil tanks that provide superior protection against future leaks as compared to standard steel tank designs. Any tank designs identified under this section must either be constructed with fiberglass or offer at least an equivalent level of protection against leaks as a standard fiberglass design.
     (2) The ((pollution liability insurance agency)) department shall reimburse any owner or operator, who is participating in the program created in this chapter and who has experienced an occurrence or remedial action, for the difference in price between a standard steel heating tank and a new heating oil tank that satisfies the design standards identified under subsection (1) of this section, if the owner or operator chooses or is required to replace his or her tank at the time of the occurrence or remedial action.
     (3) Any new heating oil tank reimbursement provided under this section must be funded within the amount of per occurrence coverage provided to the owner or operator under RCW 70.149.040.
     (4) This section expires June 1, 2013.

NEW SECTION.  Sec. 225   A new section is added to chapter 70.148 RCW to read as follows:
     (1) The pollution liability insurance agency is transferred to the department.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the pollution liability insurance agency shall be delivered to the custody of the department of ecology. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the pollution liability insurance agency shall be transferred to the department of ecology. All funds, credits, or other assets held by the pollution liability insurance agency shall be assigned to the department of ecology.
     (b) Any appropriations made to the pollution liability insurance agency shall be transferred and credited to the department of ecology.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the pollution liability insurance agency are transferred to the jurisdiction of the department of ecology. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of ecology to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the pollution liability insurance agency shall be continued and acted upon by the pollution liability insurance program as part of the department of ecology. All existing contracts and obligations shall remain in full force and shall be performed by the pollution liability insurance program as part of the department of ecology.
     (5) The transfer of the powers, duties, functions, and personnel of the pollution liability insurance agency to the department of ecology under this act shall not affect the validity of any activity performed before the effective date of this section or the effective date of the consolidation.
     (6) If apportionments of budgeted funds are required because of the consolidation directed by this section, the director of financial management shall certify the apportionments to the affected agencies, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All classified employees of the pollution liability insurance agency assigned to the department of ecology under this act whose positions are within an existing bargaining unit description at the department of ecology shall become a part of the existing bargaining unit at the department of ecology and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.
     (8) This section expires June 1, 2013.

Sec. 226   RCW 90.46.005 and 2007 c 445 s 2 are each amended to read as follows:
     The legislature finds that by encouraging the use of reclaimed water while assuring the health and safety of all Washington citizens and the protection of its environment, the state of Washington will continue to use water in the best interests of present and future generations.
     To facilitate the immediate use of reclaimed water for uses approved by the department((s)) of ecology ((and health)), the state shall expand both direct financial support and financial incentives for capital investments in water reuse and reclaimed water to effectuate the goals of this chapter. The legislature further directs ((the department of health and)) the department of ecology to ((coordinate efforts towards developing)) develop an efficient and streamlined process for creating and implementing processes for the use of reclaimed water.
     It is hereby declared that the people of the state of Washington have a primary interest in the development of facilities to provide reclaimed water to replace potable water in nonpotable applications, to supplement existing surface and ground water supplies, and to assist in meeting the future water requirements of the state.
     The legislature further finds and declares that the utilization of reclaimed water by local communities for domestic, agricultural, industrial, recreational, and fish and wildlife habitat creation and enhancement purposes, including wetland enhancement, will contribute to the peace, health, safety, and welfare of the people of the state of Washington. To the extent reclaimed water is appropriate for beneficial uses, it should be so used to preserve potable water for drinking purposes, contribute to the restoration and protection of instream flows that are crucial to preservation of the state's salmonid fishery resources, contribute to the restoration of Puget Sound by reducing wastewater discharge, provide a drought resistant source of water supply for nonpotable needs, or be a source of supply integrated into state, regional, and local strategies to respond to population growth and global warming. Use of reclaimed water constitutes the development of new basic water supplies needed for future generations and local and regional water management planning should consider coordination of infrastructure, development, storage, water reclamation and reuse, and source exchange as strategies to meet water demands associated with population growth and impacts of global warming.
     The legislature further finds and declares that the use of reclaimed water is not inconsistent with the policy of antidegradation of state waters announced in other state statutes, including the water pollution control act, chapter 90.48 RCW and the water resources act, chapter 90.54 RCW.
     The legislature finds that other states, including California, Florida, and Arizona, have successfully used reclaimed water to supplement existing water supplies without threatening existing resources or public health.
     It is the intent of the legislature that the department of ecology ((and the department of health)) undertake the necessary steps to encourage the development of water reclamation facilities so that reclaimed water may be made available to help meet the growing water requirements of the state.
     The legislature further finds and declares that reclaimed water facilities are water pollution control facilities as defined in chapter 70.146 RCW and are eligible for financial assistance as provided in chapter 70.146 RCW. The legislature finds that funding demonstration projects will ensure the future use of reclaimed water. ((The demonstration projects in RCW 90.46.110 are varied in nature and will provide the experience necessary to test different facets of the standards and refine a variety of technologies so that water purveyors can begin to use reclaimed water technology in a more cost-effective manner.)) This is especially critical in smaller cities and communities where the feasibility for such projects is great, but there are scarce resources to develop the necessary facilities.
     The legislature further finds that the agricultural processing industry can play a critical and beneficial role in promoting the efficient use of water by having the opportunity to develop and reuse agricultural industrial process water from food processing.

Sec. 227   RCW 90.46.010 and 2009 c 456 s 1 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Agricultural industrial process water" means water that has been used for the purpose of agricultural processing and has been adequately and reliably treated, so that as a result of that treatment, it is suitable for other agricultural water use.
     (2) "Agricultural processing" means the processing of crops or milk to produce a product primarily for wholesale or retail sale for human or animal consumption, including but not limited to potato, fruit, vegetable, and grain processing.
     (3) "Agricultural water use" means the use of water for irrigation and other uses related to the production of agricultural products. These uses include, but are not limited to, construction, operation, and maintenance of agricultural facilities and livestock operations at farms, ranches, dairies, and nurseries. Examples of these uses include, but are not limited to, dust control, temperature control, and fire control.
     (4) "Constructed beneficial use wetlands" means those wetlands intentionally constructed on nonwetland sites to produce or create natural wetland functions and values.
     (5) "Constructed treatment wetlands" means wetland-like impoundments intentionally constructed on nonwetland sites and managed for the primary purpose of further treatment or retention of reclaimed water as distinct from creating natural wetland functions and values.
     (6) "Direct groundwater recharge" means the controlled subsurface addition of water directly into groundwater for the purpose of replenishing groundwater.
     (7) "Domestic wastewater" means wastewater from greywater, toilet, or urinal sources.
     (8) "Greywater or gray water" means domestic type flows from bathtubs, showers, bathroom sinks, washing machines, dishwashers, and kitchen or utility sinks. Gray water does not include flow from a toilet or urinal.
     (9) "Industrial reuse water" means water that has been used for the purpose of industrial processing and has been adequately and reliably treated so that, as a result of that treatment, it is suitable for other uses.
     (10) "Land application" means use of reclaimed water as permitted under this chapter for the purpose of irrigation or watering of landscape vegetation.
     (11) (("Lead agency" means either the department of health or the department of ecology that has been designated by rule as the agency that will coordinate, review, issue, and enforce a reclaimed water permit issued under this chapter.
     (12) "Nonlead agency" means either the department of health or the department of ecology, whichever is not the lead agency for purposes of this chapter.
     (13))) "Person" means any state, individual, public or private corporation, political subdivision, governmental subdivision, governmental agency, municipality, copartnership, association, firm, trust estate, or any other legal entity whatever.
     (((14))) (12) "Planned groundwater recharge project" means any reclaimed water project designed for the purpose of recharging groundwater.
     (((15))) (13) "Reclaimed water" means water derived in any part from wastewater with a domestic wastewater component that has been adequately and reliably treated, so that it can be used for beneficial purposes. Reclaimed water is not considered a wastewater.
     (((16))) (14) "State drinking water contaminant criteria" means the contaminant criteria found in the drinking water quality standards adopted by the state board of health pursuant to chapter 43.20 RCW and the department of health pursuant to chapter 70.119A RCW.
     (((17))) (15) "Streamflow or surface water augmentation" means the intentional use of reclaimed water for rivers and streams of the state or other surface water bodies, for the purpose of increasing volumes.
     (((18))) (16) "Surface percolation" means the controlled application of water to the ground surface or to unsaturated soil for the purpose of replenishing groundwater.
     (((19))) (17) "User" means any person who uses reclaimed water.
     (((20))) (18) "Wastewater" means water-carried wastes from residences, buildings, industrial and commercial establishments, or other places, together with such groundwater infiltration and inflow as may be present.
     (((21))) (19) "Wetland or wetlands" means areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted to life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands regulated under this chapter shall be delineated in accordance with the manual adopted by the department of ecology pursuant to RCW 90.58.380.
     (20) "Department" means the department of ecology.

Sec. 228   RCW 90.46.015 and 2009 c 456 s 2 are each amended to read as follows:
     (1) The department ((of ecology)) shall((, in coordination with the department of health,)) adopt rules for reclaimed water use consistent with this chapter. The rules must address all aspects of reclaimed water use, including commercial and industrial uses, land applications, direct groundwater recharge, wetland discharge, surface percolation, constructed wetlands, and streamflow or surface water augmentation. The department of health shall, in coordination with the department ((of ecology)), adopt rules for greywater reuse. ((The rules must also designate whether the department of ecology or the department of health will be the lead agency responsible for a particular aspect of reclaimed water use.)) In developing the rules, the ((departments of health and ecology)) department shall amend or rescind any existing rules on reclaimed water in conflict with the new rules.
     (2) All rules required to be adopted pursuant to this section must be completed no later than December 31, 2010, although the department ((of ecology)) is encouraged to adopt the final rules as soon as possible.
     (3) The department ((of ecology)) must consult with the advisory committee created under RCW 90.46.050 in all aspects of rule development required under this section.

Sec. 229   RCW 90.46.030 and 2006 c 279 s 5 are each amended to read as follows:
     (1)(((a) The department of health shall, in coordination with the department of ecology, adopt a single set of standards, procedures, and guidelines on or before August 1, 1993, for the industrial and commercial use of reclaimed water.
     (b) Standards adopted under this section are superseded by any rules adopted by the department of ecology pursuant to RCW 90.46.015 as they relate to the industrial and commercial use of reclaimed water.
     (2) Unless)) The department ((of ecology adopts)) shall adopt rules pursuant to RCW 90.46.015 that relate to the industrial and commercial use of reclaimed water ((specifying otherwise,)). The department ((of health)) may issue a reclaimed water permit for industrial and commercial uses of reclaimed water to the generator of reclaimed water who may then distribute the water, subject to provisions in the permit governing the location, rate, water quality, and purposes of use. Permits issued after the adoption of rules under RCW 90.46.015 must be consistent with the adopted rules.
     (((3))) (2) The department ((of health)) in consultation with the advisory committee established in RCW 90.46.050, shall develop recommendations for a fee structure for permits issued under ((subsection (2) of)) this ((section)) chapter. Fees shall be established in amounts to fully recover, and not exceed, expenses incurred by the department ((of health)) in processing permit applications and modifications, monitoring and evaluating compliance with permits, and conducting inspections and supporting the reasonable overhead expenses that are directly related to these activities. Permit fees may not be used for research or enforcement activities. ((The department of health shall not issue permits under this section until a fee structure has been established.
     (4))) (3) A permit under this section for use of reclaimed water may be issued only to:
     (a) A municipal, quasi-municipal, or other governmental entity;
     (b) A private utility as defined in RCW 36.94.010; or
     (c) The holder of a waste discharge permit issued under chapter 90.48 RCW or operating permit under chapter 70.118B RCW.
     (((5))) (4) The authority and duties created in this section are in addition to any authority and duties already provided in law with regard to sewage and wastewater collection, treatment, and disposal for the protection of health and safety of the state's waters. Nothing in this section limits the powers of the state or any political subdivision to exercise such authority.
     (((6) Unless the department of ecology adopts rules pursuant to RCW 90.46.015 that relate to the industrial and commercial use of reclaimed water specifying otherwise, the department of health may implement the requirements of this section through the department of ecology by execution of a formal agreement between the departments. Upon execution of such an agreement, the department of ecology may issue reclaimed water permits for industrial and commercial uses of reclaimed water by issuance of permits under chapter 90.48 RCW, and may establish and collect fees as required for permits issued under chapter 90.48 RCW.
     (7) Unless the department of ecology adopts rules pursuant to RCW 90.46.015 that relate to the industrial and commercial use of reclaimed water specifying otherwise, and))
     (5) Before deciding whether to issue a permit under this section to a private utility, the department ((of health)) may require information that is reasonable and necessary to determine whether the private utility has the financial and other resources to ensure the reliability, continuity, and supervision of the reclaimed water facility.

Sec. 230   RCW 90.46.050 and 2006 c 279 s 2 are each amended to read as follows:
     The department ((of ecology)) shall((, before July 1, 2006,)) form an advisory committee((, in coordination with the department of health and the department of agriculture,)) which will provide technical assistance in the development of standards, procedures, and guidelines required by this chapter. The advisory committee shall be composed of a broad range of interested individuals representing the various stakeholders that utilize or are potentially impacted by the use of reclaimed water and include a representative from the department of health and a representative from the department of agriculture. The advisory committee must also contain individuals with technical expertise and knowledge of new advancements in technology.

Sec. 231   RCW 90.46.090 and 2006 c 279 s 10 are each amended to read as follows:
     (1) Reclaimed water may be beneficially used for discharge into constructed beneficial use wetlands and constructed treatment wetlands provided the reclaimed water meets the class A or B reclaimed water standards as defined in the reclamation criteria, and the discharge is incorporated into a sewer or water comprehensive plan, as applicable, adopted by the applicable local government and approved by the department of health or department of ecology as applicable.
     (2) Reclaimed water that does not meet the class A or B reclaimed water standards may be beneficially used for discharge into constructed treatment wetlands where the department ((of ecology, in consultation with the department of health,)) has specifically authorized such use at such lower standards.
     (3)(a) The department ((of ecology and the department of health)) must develop appropriate standards for discharging reclaimed water into constructed beneficial use wetlands and constructed treatment wetlands. These standards must be considered as part of the approval process under subsections (1) and (2) of this section.
     (b) Standards adopted under this section are superseded by any rules adopted by the department ((of ecology)) pursuant to RCW 90.46.015 as they relate to discharge into constructed beneficial use wetlands and constructed treatment wetlands.

Sec. 232   RCW 90.46.120 and 2009 c 456 s 5 are each amended to read as follows:
     (1) The owner of a wastewater treatment facility that is reclaiming water with a permit issued under this chapter has the exclusive right to any reclaimed water generated by the wastewater treatment facility. Use, distribution, storage, and the recovery from storage of reclaimed water permitted under this chapter is exempt from the permit requirements of RCW 90.03.250 and 90.44.060, provided that a permit for recovery of reclaimed water from aquifer storage shall be reviewed under the standards established under RCW 90.03.370(2) for aquifer storage and recovery projects. Revenues derived from the reclaimed water facility shall be used only to offset the cost of operation of the wastewater utility fund or other applicable source of systemwide funding.
     (2) If the proposed use of reclaimed water is to augment or replace potable water supplies or to create the potential for the development of an additional new potable water supply, then regional water supply plans, or any other potable water supply plans prepared by multiple water purveyors, must consider the proposed use of the reclaimed water as they are developed or updated.
     (a) Regional water supply plans include those adopted under state board of health laws (chapter 43.20 RCW), the public water system coordination act of 1977 (chapter 70.116 RCW), groundwater protection laws (chapter 90.44 RCW), and the watershed planning act (chapter 90.82 RCW).
     (b) The requirement to consider the use of reclaimed water does not change the plan approval process established under these statutes.
     (c) When regional water supply plans are being developed, the owners of wastewater treatment facilities that produce or propose to produce reclaimed water for use within the planning area must be included in the planning process.
     (3) When reclaimed water is available or is proposed for use under a water supply or wastewater plan developed under chapter 43.20, 70.116, 90.44, 90.48, or 90.82 RCW these plans must be coordinated to ensure that opportunities for reclaimed water are evaluated. The requirements of this subsection (3) do not apply to water system plans developed under chapter 43.20 RCW for utilities serving less than one thousand service connections.
     (4) The provisions of any plan for reclaimed water, developed under the authorities in subsections (2) and (3) of this section, should be included by a city, town, or county in reviewing provisions for water supplies in a proposed short plat, short subdivision, or subdivision under chapter 58.17 RCW, where reclaimed water supplies may be proposed for nonpotable purposes in the short plat, short subdivision, or subdivision.
     (((5) By November 30, 2009, the department of ecology shall review comments from the reclaimed water advisory committee under RCW 90.46.050 and the reclaimed water and water rights advisory committee under the direction of the department of ecology and submit a recommendation to the legislature on the impairment requirements and standards for reclaimed water. The department of ecology shall also provide a report to the legislature that describes the opinions of the stakeholders on the impairment requirements and standards for reclaimed water.))

Sec. 233   RCW 90.46.150 and 2001 c 69 s 3 are each amended to read as follows:
     The permit to apply agricultural industrial process water to agricultural water use shall be the permit issued under chapter 90.48 RCW to the owner of the agricultural processing plant who may then distribute the water through methods including, but not limited to, irrigation systems, subject to provisions in the permit governing the location, rate, water quality, and purpose. ((In cases where the department of ecology determines that a significant risk to public health exists, in land application of the water, the department must refer the application to the department of health for review and consultation.))
     The owner of the agricultural processing plant who obtains a permit under this section has the exclusive right to the use of any agricultural industrial process water generated from the plant and to the distribution of such water through facilities including irrigation systems. Use and distribution of the water by the owner is exempt from the permit requirements of RCW 90.03.250, 90.03.380, 90.44.060, and 90.44.100.
     Nothing in chapter 69, Laws of 2001 shall be construed to affect any right to reuse agricultural industrial discharge water in existence on or before July 22, 2001.

Sec. 234   RCW 90.46.160 and 2002 c 329 s 6 are each amended to read as follows:
     (1) The permit to use industrial reuse water shall be the permit issued under chapter 90.48 RCW to the owner of the plant that is the source of the industrial process water, who may then distribute the water according to provisions in the permit governing the location, rate, water quality, and purpose. ((In cases where the department of ecology determines that a proposed use may pose a significant risk to public health, the department shall refer the permit application to the department of health for review and consultation.))
     (2) The owner of the industrial plant who obtains a permit under this section has the exclusive right to the use of any industrial reuse water generated from the plant and to the distribution of such water. Use and distribution of the water by the owner is exempt from the permit requirements of RCW 90.03.250, 90.03.380, 90.44.060, and 90.44.100.
     (3) Nothing in this section affects any right to reuse industrial process water in existence on or before June 13, 2002.

Sec. 235   RCW 90.46.200 and 2009 c 456 s 7 are each amended to read as follows:
     (1) ((The department of ecology and the department of health shall have authority to carry out all the provisions of this chapter including, but not limited to, permitting and enforcement. Only the department of ecology or the department of health may act as a lead agency for purposes of this chapter and will be established as such by rule. Enforcement of a permit issued under this chapter shall be at the sole discretion of the lead agency that issued the permit.
     (2) All permit applications shall be referred to the nonlead agency for review and consultation. The nonlead agency may choose to limit the scope of its review.
     (3))) The department shall consult with the department of health in cases where a proposed use of reclaimed water may pose a significant risk to public health.
     (2) The authority and duties created in this chapter are in addition to any authority and duties already provided in law. Nothing in this chapter limits the powers of the state or any political subdivision to exercise such authority.

Sec. 236   RCW 90.46.210 and 2009 c 456 s 8 are each amended to read as follows:
     The ((lead agency)) department, with the assistance of the attorney general, is authorized to bring any appropriate action at law or in equity, including action for injunctive relief, as may be necessary to carry out the provisions of this chapter. The ((lead agency)) department may bring the action in the superior court of the county in which the violation occurred or in the superior court of Thurston county. The court may award reasonable attorneys' fees for the cost of the attorney general's office in representing the ((lead agency)) department.

Sec. 237   RCW 90.46.220 and 2009 c 456 s 9 are each amended to read as follows:
     (1) Except as provided in RCW 90.46.150 and 90.46.160, any person proposing to generate any type of reclaimed water for a use regulated under this chapter shall obtain a permit from the ((lead agency)) department prior to distribution or use of that water. The permittee may then distribute and use the water, subject to the provisions in the permit. The permit must include provisions that protect human health and the environment. At a minimum, the permit must:
     (a) Assure adequate and reliable treatment; and
     (b) Govern the water quality, location, rate, and purpose of use.
     (2) A permit under this chapter may be issued only to:
     (a) A municipal, quasi-municipal, or other governmental entity;
     (b) A private utility as defined in RCW 36.94.010; or
     (c) The holder of a waste disposal permit issued under chapter 90.48 RCW or operating permit under chapter 70.118B RCW((; or
     (d) The owner of an agricultural processing facility that is generating agricultural industrial process water for agricultural use, or the owner of an industrial facility that is generating industrial process water for reuse)).
     (3) Before deciding whether to issue a permit under this section to a private utility, the ((lead agency)) department may require information that is reasonable and necessary to determine whether the private utility has the financial and other resources to ensure the reliability, continuity, and supervision of the reclaimed water facility.
     (4) Permits shall be issued for a fixed term specified by the rules adopted under RCW 90.46.015. A permittee shall apply for permit renewal prior to the end of the term. The rules adopted under RCW 90.46.015 shall specify the process of renewal, modification, change of ownership, suspension, and termination.
     (5) The ((lead agency)) department may deny an application for a permit or modify, suspend, or revoke a permit for good cause, including but not limited to, any case in which it finds that the permit was obtained by fraud or misrepresentation, or there is or has been a failure, refusal, or inability to comply with the requirements of this chapter or the rules adopted under this chapter.
     (6) The ((lead agency)) department shall provide for adequate public notice and opportunity for review and comment on all initial permit applications and renewal applications. Methods for providing notice may include electronic mail, posting on the ((lead agency's)) department's internet site, publication in a local newspaper, press releases, mailings, or other means of notification the ((lead agency)) department determines appropriate. The ((lead agency)) department shall also publicize notice of final permitting decisions.
     (7) Any person aggrieved by a permitting decision has the right to an adjudicative proceeding. An adjudicative proceeding conducted under this subsection is governed by chapter 34.05 RCW. ((For any permit decision for which the department of ecology is the lead agency under this chapter,)) Any appeal shall be in accordance with chapter 43.21B RCW. ((For any permit decision for which department of health is the lead agency under this chapter, any application for an adjudicative proceeding must be in writing, state the basis for contesting the action, include a copy of the decision, be served on and received by the department of health within twenty-eight days of receipt of notice of the final decision, and be served in a manner that shows proof of receipt.))
     (8) Permit requirements for the distribution and use of greywater will be established in rules adopted by the department of health under RCW 90.46.015.

Sec. 238   RCW 90.46.230 and 2009 c 456 s 10 are each amended to read as follows:
     (1)(a) Except as otherwise provided in (b) of this subsection, the ((lead agency)) department or its designee shall have the right to enter and inspect any property related to the purpose of the permit, public or private, at reasonable times with prior notification in order to determine compliance with laws and rules administered by the ((lead agency)) department. During such inspections, the ((lead agency)) department shall have free and unimpeded access to all data, facilities, and property involved in the generation, distribution, and use of reclaimed water.
     (b) The ((lead agency)) department or its designee need not give prior notification to enter property under (a) of this subsection if the purpose of the entry is to ensure compliance by the permittee with a prior order of the ((lead agency)) department or if the ((lead agency)) department or its designee has reasonable cause to believe there is a violation of the law that poses a serious threat to public health and safety or the environment.
     (2) The ((lead agency)) department or its designee may apply for an administrative search warrant to a court of competent jurisdiction and an administrative search warrant may issue where:
     (a) The ((lead agency)) department has attempted an inspection under this chapter and access has been actually or constructively denied; or
     (b) There is reasonable cause to believe that a violation of this chapter or rules adopted under this chapter is occurring or has occurred.

Sec. 239   RCW 90.46.240 and 2009 c 456 s 11 are each amended to read as follows:
     All required feasibility studies, planning documents, engineering reports, and plans and specifications for the construction of new reclaimed water, agricultural industrial process water, and industrial reuse water facilities, including generation, distribution, and use facilities, or for improvements or extensions to existing facilities, and the proposed method of future operation and maintenance of said facility or facilities, shall be submitted to and be approved by the ((lead agency)) department, before construction thereof may begin. No approval shall be given until the ((lead agency)) department is satisfied that the plans, reports, and specifications and the methods of operation and maintenance submitted are adequate to protect the quality of the water for the intended use as provided for in this chapter and are adequate to protect public health and safety as necessary.

Sec. 240   RCW 90.46.250 and 2009 c 456 s 12 are each amended to read as follows:
     (1) When, in the opinion of the ((lead agency)) department, a person violates or creates a substantial potential to violate this chapter, the ((lead agency)) department shall notify the person of its determination by registered mail. The determination shall not constitute an appealable order or directive. Within thirty days from the receipt of notice of such determination, the person shall file with the ((lead agency)) department a full report stating what steps have been and are being taken to comply with the determination of the ((lead agency)) department. After the full report is filed or after the thirty days have elapsed, the ((lead agency)) department may issue the order or directive as it deems appropriate under the circumstances, shall notify the person by registered mail, and shall inform the person of the process for requesting an adjudicative hearing.
     (2) When it appears to the ((lead agency)) department that water quality conditions or other conditions exist which require immediate action to protect human health and safety or the environment, the ((lead agency)) department may issue a written order to the person or persons responsible without first issuing a notice of determination pursuant to subsection (1) of this section. An order or directive issued pursuant to this subsection shall be served by registered mail or personally upon any person to whom it is directed, and shall inform the person or persons responsible of the process for requesting an adjudicative hearing.

Sec. 241   RCW 90.46.260 and 2009 c 456 s 13 are each amended to read as follows:
     Any person found guilty of willfully violating any of the provisions of this chapter, or any final written orders or directive of the ((lead agency)) department or a court in pursuance thereof, is guilty of a gross misdemeanor, and upon conviction thereof shall be punished by a fine of up to ten thousand dollars and costs of prosecution, or by imprisonment in the county jail for not more than one year, or both, in the discretion of the court. Each day upon which a willful violation of the provisions of this chapter occurs may be deemed a separate and additional violation.

Sec. 242   RCW 90.46.260 and 2011 c 96 s 60 are each amended to read as follows:
     Any person found guilty of willfully violating any of the provisions of this chapter, or any final written orders or directive of the ((lead agency)) department or a court in pursuance thereof, is guilty of a gross misdemeanor, and upon conviction thereof shall be punished by a fine of up to ten thousand dollars and costs of prosecution, or by imprisonment in the county jail for up to three hundred sixty-four days, or both, in the discretion of the court. Each day upon which a willful violation of the provisions of this chapter occurs may be deemed a separate and additional violation.

Sec. 243   RCW 90.46.270 and 2009 c 456 s 14 are each amended to read as follows:
     (1) Except as provided in RCW 43.05.060 through 43.05.080, 43.05.100, 43.05.110, and 43.05.150, any person who:
     (a) Generates any reclaimed water for a use regulated under this chapter and distributes or uses that water without a permit;
     (b) Violates the terms or conditions of a permit issued under this chapter; or
     (c) Violates rules or orders adopted or issued pursuant to this chapter,
shall incur, in addition to any other penalty as provided by law, a penalty in an amount of up to ten thousand dollars per day for every violation. Each violation shall be a separate and distinct offense, and in case of a continuing violation, every day's continuance shall be a separate and distinct violation. Every act of commission or omission which procures, aids, or abets in the violation shall be considered a violation under the provisions of this section and subject to the penalty herein provided for. The penalty amount shall be set in consideration of the previous history of the violator and the severity of the violation's impact on public health, the environment, or both, in addition to other relevant factors.
     (2) A penalty imposed by a final administrative order is due upon service of the final administrative order. A person who fails to pay a penalty assessed by a final administrative order within thirty days of service of the final administrative order shall pay, in addition to the amount of the penalty, interest at the rate of one percent of the unpaid balance of the assessed penalty for each month or part of a month that the penalty remains unpaid, commencing within the month in which the notice of penalty was served, and reasonable attorneys' fees as are incurred if civil enforcement of the final administrative order is required to collect penalty.
     (3) A person who institutes proceedings for judicial review of a final administrative order assessing a civil penalty under this chapter shall place the full amount of the penalty in an interest bearing account in the registry of the reviewing court. At the conclusion of the proceeding the court shall, as appropriate, enter a judgment on behalf of the ((lead agency)) department and order that the judgment be satisfied to the extent possible from moneys paid into the registry of the court or shall enter a judgment in favor of the person appealing the penalty assessment and order return of the moneys paid into the registry of the court together with accrued interest to the person appealing. The judgment may award reasonable attorneys' fees for the cost of the attorney general's office in representing the ((lead agency)) department.
     (4) If no appeal is taken from a final administrative order assessing a civil penalty under this chapter, the ((lead agency)) department may file a certified copy of the final administrative order with the clerk of the superior court in which the person resides, or in Thurston county, and the clerk shall enter judgment in the name of the ((lead agency)) department and in the amount of the penalty assessed in the final administrative order.
     (5) ((When the penalty herein provided for is imposed by the department of ecology, it)) The penalty shall be imposed pursuant to the procedures set forth in RCW 43.21B.300. All penalties imposed by the department ((of ecology)) pursuant to RCW 43.21B.300 shall be deposited into the state treasury and credited to the general fund.
     (((6) When the penalty is imposed by the department of health, it shall be imposed pursuant to the procedures set forth in RCW 43.70.095. All receipts from penalties shall be deposited into the health reclaimed water account. The department of health shall use revenue derived from penalties only to provide training and technical assistance to reclaimed water system owners and operators.))

NEW SECTION.  Sec. 244   A new section is added to chapter 90.46 RCW to read as follows:
     (1) The reclaimed water program is transferred from the department of health to the department of ecology.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of health reclaimed water program shall be delivered to the custody of the department of ecology. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of health reclaimed water program shall be transferred to the department of ecology. All funds, credits, or other assets held by the department of health reclaimed water program shall be assigned to the department of ecology.
     (b) Any appropriations made to the department of health for the reclaimed water program shall be transferred and credited to the department of ecology.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the department of health reclaimed water program are transferred to the jurisdiction of the department of ecology. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of ecology to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the department of health reclaimed water program shall be continued and acted upon by the department of ecology. All existing contracts and obligations shall remain in full force and shall be performed by the department of ecology.
     (5) The transfer of the powers, duties, functions, and personnel of the department of health reclaimed water program to the department of ecology under this act shall not affect the validity of any activity performed before the effective date of this section or the effective date of the consolidation.
     (6) If apportionments of budgeted funds are required because of the consolidation directed by this section, the director of financial management shall certify the apportionments to the affected agencies, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All classified employees of the department of health reclaimed water program assigned to the department of ecology under this act whose positions are within an existing bargaining unit description at the department of health shall become a part of the existing bargaining unit at the department of ecology and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 245   The following acts or parts of acts are each repealed:
     (1) RCW 90.46.020 (Interim standards for pilot projects for use of reclaimed water) and 1992 c 204 s 3;
     (2) RCW 90.46.072 (Conflict resolution -- Reclaimed water projects and chapter 372-32 WAC) and 1995 c 342 s 8; and
     (3) RCW 90.46.110 (Reclaimed water demonstration program--Demonstration projects) and 1997 c 355 s 2.

NEW SECTION.  Sec. 246   A new section is added to chapter 43.97 RCW to read as follows:
     (1) As authorized by this chapter for the state of Washington, the department of ecology shall provide administrative and functional assistance to the Columbia River Gorge commission. This provision of administrative and functional assistance does not alter the legal status of the commission as a bistate compact entity or confer the status of state agency upon the commission.
     (2) Pursuant to RCW 43.97.015 Article IV b., the governor designates the director of the department of ecology to receive the commission's budget of its estimated expenditures. The commission shall submit a budget of its estimated expenditures to the director of the department of ecology. The department of ecology shall include a request for funding for the commission as a separate program in its budget submittal to the governor. The department shall separately account for the commission funding.

Sec. 247   RCW 43.200.015 and 1989 c 322 s 1 are each amended to read as follows:
     As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.
     (1) "High-level radioactive waste" means "high-level radioactive waste" as the term is defined in 42 U.S.C. Sec. 10101 (P.L. 97-425).
     (2) "Low-level radioactive waste" means waste material that contains radioactive nuclides emitting primarily beta or gamma radiation, or both, in concentrations or quantities that exceed applicable federal or state standards for unrestricted release. Low-level waste does not include waste containing more than one hundred nanocuries of transuranic contaminants per gram of material, nor spent nuclear fuel, nor material classified as either high-level radioactive waste or waste that is unsuited for disposal by near-surface burial under any applicable federal regulations.
     (3) "Radioactive waste" means both high-level and low-level radioactive waste.
     (4) "Spent nuclear fuel" means spent nuclear fuel as the term is defined in 42 U.S.C. Sec. 10101.
     (5) "Department" means the department of ecology.
     (6) "Commercial low-level radioactive waste disposal facility" has the same meaning as "facility" as defined in RCW 43.145.010.

Sec. 248   RCW 43.200.080 and 2003 1st sp.s. c 21 s 1 are each amended to read as follows:
     The director of ecology shall, in addition to the powers and duties otherwise imposed by law, have the following special powers and duties:
     (1) To fulfill the responsibilities of the state under the lease between the state of Washington and the federal government executed September 10, 1964, as amended, covering approximately one ((thousand)) hundred fifteen acres of land lying within the Hanford reservation near Richland, Washington. The department of ecology may sublease to private or public entities all or a portion of the land for specific purposes or activities which are determined, after public hearing, to be in agreement with the terms of the lease and in the best interests of the citizens of the state consistent with any criteria that may be developed as a requirement by the legislature;
     (2) To assume the responsibilities of the state under the perpetual care agreement between the state of Washington and the federal government executed July 29, 1965, and the sublease between the state of Washington and the site operator of the ((Hanford)) commercial low-level radioactive waste disposal facility. In order to finance perpetual surveillance and maintenance under the agreement and ensure site closure under the sublease, the department of ecology shall impose and collect fees from parties holding radioactive materials for waste management purposes. The fees shall be established by rule adopted under chapter 34.05 RCW and shall be an amount determined by the department of ecology to be necessary to defray the estimated liability of the state. Such fees shall reflect equity between the disposal facilities of this and other states. A site closure account and a perpetual surveillance and maintenance account ((is)) are hereby created in the state treasury. Site use permit fees collected by the department of health under RCW 70.98.085(3) must be deposited in the site closure account and must be used as specified in RCW 70.98.085(3). Funds in the site closure account other than site use permit fee funds shall be exclusively available to reimburse, to the extent that moneys are available in the account, the site operator for its costs plus a reasonable profit as agreed by the operator and the state, or to reimburse the state licensing agency and any agencies under contract to the state licensing agency for their costs in final closure and decommissioning of the ((Hanford)) commercial low-level radioactive waste disposal facility. If a balance remains in the account after satisfactory performance of closure and decommissioning, this balance shall be transferred to the perpetual surveillance and maintenance account. The perpetual surveillance and maintenance account shall be used exclusively by the state to meet post-closure surveillance and maintenance costs, or for otherwise satisfying surveillance and maintenance obligations. Appropriations are required to permit expenditures and payment of obligations from the site closure account and the perpetual surveillance and maintenance account. ((All moneys, including earnings from the investment of balances in the site closure and the perpetual surveillance and maintenance account, less the allocation to the state treasurer's service fund, pursuant to RCW 43.08.190 accruing under the authority of this section shall be directed to the site closure account until December 31, 1992. Thereafter receipts including earnings from the investment of balances in the site closure and the perpetual surveillance and maintenance account, less the allocation to the state treasurer's service fund, pursuant to RCW 43.08.190)) Receipts shall be directed to the site closure account and the perpetual surveillance and maintenance account as specified by the department. Additional moneys specifically appropriated by the legislature or received from any public or private source may be placed in the site closure account and the perpetual surveillance and maintenance account. During the 2003-2005 fiscal biennium, the legislature may transfer up to thirteen million eight hundred thousand dollars from the site closure account to the general fund;
     (3)(a) Subject to the conditions in (b) of this subsection, on July 1, 2008, and each July 1st thereafter, the treasurer shall transfer from the perpetual surveillance and maintenance account to the site closure account the sum of nine hundred sixty-six thousand dollars. The nine hundred sixty-six thousand dollars transferred on July 1, 2009, and thereafter shall be adjusted to a level equal to the percentage increase in the United States implicit price deflator for personal consumption. The last transfer under this section shall occur on July 1, 2033.
     (b) The transfer in (a) of this subsection shall occur only if written agreement is reached between the state department of ecology and the United States department of energy pursuant to section 6 of the perpetual care agreement dated July 29, 1965, between the United States atomic energy commission and the state of Washington. If agreement cannot be reached between the state department of ecology and the United States department of energy by June 1, 2008, the treasurer shall transfer the funds from the general fund to the site closure account according to the schedule in (a) of this subsection.
     (c) If for any reason the ((Hanford)) commercial low-level radioactive waste disposal facility is closed to further disposal operations during or after the 2003-2005 biennium and before 2033, then the amount remaining to be repaid from the 2003-2005 transfer of thirteen million eight hundred thousand dollars from the site closure account shall be transferred by the treasurer from the general fund to the site closure account to fund the closure and decommissioning of the facility. The treasurer shall transfer to the site closure account in full the amount remaining to be repaid upon written notice from the secretary of health that the department of health has authorized closure or that disposal operations have ceased. The treasurer shall complete the transfer within sixty days of written notice from the secretary of health.
     (d) To the extent that money in the site closure account together with the amount of money identified for repayment to the site closure account, pursuant to (a) through (c) of this subsection, equals or exceeds the cost estimate approved by the department of health for closure and decommissioning of the facility, the money in the site closure account together with the amount of money identified for repayment to the site closure account shall constitute adequate financial assurance for purposes of the department of health financial assurance requirements;
     (4) To assure maintenance of such insurance coverage by state licensees, lessees, or sublessees as will adequately, in the opinion of the director, protect the citizens of the state against nuclear accidents or incidents that may occur on privately or state-controlled nuclear facilities;
     (5) ((To institute a user permit system and issue site use permits, consistent with regulatory practices, for generators, packagers, or brokers using the Hanford low-level radioactive waste disposal facility. The costs of administering the user permit system shall be borne by the applicants for site use permits. The site use permit fee shall be set at a level that is sufficient to fund completely the executive and legislative participation in activities related to the Northwest Interstate Compact on Low-Level Radioactive Waste Management;
     (6))) To make application for or otherwise pursue any federal funds to which the state may be eligible, through the federal resource conservation and recovery act or any other federal programs, for the management, treatment or disposal, and any remedial actions, of wastes that are both radioactive and hazardous at all ((Hanford)) commercial low-level radioactive waste disposal facilities; and
     (((7))) (6) To develop contingency plans for duties and options for the department and other state agencies related to the ((Hanford)) commercial low-level radioactive waste disposal facility based on various projections of annual levels of waste disposal. These plans shall include an analysis of expected revenue to the state in various taxes and funds related to low-level radioactive waste disposal and the resulting implications that any increase or decrease in revenue may have on state agency duties or responsibilities. The plans shall be updated annually.

Sec. 249   RCW 43.200.170 and 1990 c 21 s 3 are each amended to read as follows:
     The governor may assess surcharges and penalty surcharges on the disposal of waste at the ((Hanford)) commercial low-level radioactive waste disposal facility. The surcharges may be imposed up to the maximum extent permitted by federal law. Ten dollars per cubic foot of the moneys received under this section shall be transmitted monthly to the site closure account established under RCW 43.200.080. The rest of the moneys received under this section shall be deposited in the general fund.

Sec. 250   RCW 43.200.180 and 1998 c 245 s 81 are each amended to read as follows:
     Except as provided in chapter 70.98 RCW, the department of ecology shall be the state agency responsible for implementation of the federal low-level radioactive waste policy amendments act of 1985, including:
     (1) Collecting and administering the surcharge assessed by the governor under RCW 43.200.170;
     (2) Collecting low-level radioactive waste data from disposal facility operators, generators, intermediate handlers, and the federal department of energy;
     (3) Developing and operating a computerized information system to manage low-level radioactive waste data;
     (4) Denying and reinstating access to the ((Hanford)) commercial low-level radioactive waste disposal facility pursuant to the authority granted under federal law;
     (5) Administering and/or monitoring (a) the maximum waste volume levels for the ((Hanford)) commercial low-level radioactive waste disposal facility, (b) reactor waste allocations, (c) priority allocations under the Northwest Interstate Compact on Low-Level Radioactive Waste Management, and (d) adherence by other states and compact regions to federal statutory deadlines; and
     (6) Coordinating the state's low-level radioactive waste disposal program with similar programs in other states.

Sec. 251   RCW 43.200.190 and 1998 c 245 s 82 are each amended to read as follows:
     The department of ecology shall perform studies, by contract or otherwise, to define site closure and perpetual care and maintenance requirements for the ((Hanford)) commercial low-level radioactive waste disposal facility and to assess the adequacy of insurance coverage for general liability, radiological liability, and transportation liability for the facility.

Sec. 252   RCW 43.200.200 and 1998 c 245 s 83 are each amended to read as follows:
     (1) The director of the department of ecology ((shall)) may periodically review the potential for bodily injury and property damage arising from the transportation and disposal of commercial low-level radioactive waste under permits issued by the state.
     (2) ((The director may require permit holders to demonstrate financial assurance in an amount that is adequate to protect the state and its citizens from all claims, suits, losses, damages, or expenses on account of injuries to persons and property damage arising or growing out of the transportation or disposal of commercial low-level radioactive waste. The financial assurance may be in the form of insurance, cash deposits, surety bonds, corporate guarantees, and other acceptable instruments or guarantees determined by the director to be acceptable evidence of financial assurance.
     (3))) In making the determination of the appropriate level of financial assurance, the director shall consider:
     (a) The nature and purpose of the activity and its potential for injury and damages to or claims against the state and its citizens;
     (b) The current and cumulative manifested volume and radioactivity of waste being packaged, transported, buried, or otherwise handled;
     (c) The location where the waste is being packaged, transported, buried, or otherwise handled, including the proximity to the general public and geographic features such as geology and hydrology, if relevant; and
     (d) The legal defense cost, if any, that will be paid from the required financial assurance amount.
     (((4) The director may establish different levels of required financial assurance for various classes of permit holders.
     (5) The director shall establish by rule the instruments or mechanisms by which a permit applicant or holder may demonstrate financial assurance as required by RCW 43.200.210.))

Sec. 253   RCW 43.200.230 and 1991 c 272 s 16 are each amended to read as follows:
     The director of the department of ecology shall require that generators of waste pay a fee for each cubic foot of waste disposed at any facility in the state equal to six dollars and fifty cents. The fee shall be imposed specifically on the generator of the waste and shall not be considered to apply in any way to the low-level site operator's disposal activities. The fee shall be allocated in accordance with RCW 43.200.233 and 43.200.235. ((This subsection shall be invalidated and the authorization to collect a surcharge removed if the legislature or any administrative agency of the state of Washington prior to January 1, 1993, (1) imposes fees, assessments, or charges other than perpetual care and maintenance, site surveillance, and site closing fees currently applicable to the Hanford commercial low-level waste site operator's activities, (2) imposes any additional fees, assessments, or charges on generators using the Hanford commercial low-level waste site, or (3) increases any existing fees, assessments, or charges.)) Failure to comply with this section may result in denial or suspension of the generator's site use permit pursuant to RCW 70.98.085.

Sec. 254   RCW 70.98.030 and 1991 c 3 s 355 are each amended to read as follows:
     (1) "By-product material" means any radioactive material (except special nuclear material) yielded in or made radioactive by exposure to the radiation incident to the process of producing or utilizing special nuclear material.
     (2) "Ionizing radiation" means gamma rays and x-rays, alpha and beta particles, high-speed electrons, neutrons, protons, and other atomic or subatomic particles; but not sound or radio waves, or visible, infrared, or ultraviolet light.
     (3)(a) "General license" means a license effective pursuant to rules promulgated by the state radiation control agency, without the filing of an application, to transfer, acquire, own, possess, or use quantities of, or devices or equipment utilizing, by-product, source, special nuclear materials, or other radioactive material occurring naturally or produced artificially.
     (b) "Specific license" means a license, issued after application to use, manufacture, produce, transfer, receive, acquire, own, or possess quantities of, or devices or equipment utilizing by-product, source, special nuclear materials, or other radioactive materials occurring naturally or produced artificially.
     (4) "Person" means any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, agency, political subdivision of this state, any other state or political subdivision or agency thereof, and any legal successor, representative, agent, or agency of the foregoing, other than the United States Atomic Energy Commission, or any successor thereto, and other than federal government agencies licensed by the United States Atomic Energy Commission, or any successor thereto.
     (5) "Source material" means (a) uranium, thorium, or any other material which is determined by the United States Nuclear Regulatory Commission or its successor pursuant to the provisions of section 61 of the United States Atomic Energy Act of 1954, as amended (42 U.S.C. Sec. 209) to be source material; or (b) ores containing one or more of the foregoing materials, in such concentration as the commission may by regulation determine from time to time.
     (6) "Special nuclear material" means (a) plutonium, uranium enriched in the isotope 233 or in the isotope 235, and any other material which the United States Nuclear Regulatory Commission or its successor, pursuant to the provisions of section 51 of the United States Atomic Energy Act of 1954, as amended (42 U.S.C. Sec. 2071), determines to be special nuclear material, but does not include source material; or (b) any material artificially enriched by any of the foregoing, but does not include source material.
     (7) "Registration" means registration with the state department of health by any person possessing a source of ionizing radiation in accordance with rules adopted by the department of health.
     (8) "Radiation source" means any type of device or substance which is capable of producing or emitting ionizing radiation.
     (9) "Site use permit" means a permit, issued after application, to use the commercial low-level radioactive waste disposal facility.

Sec. 255   RCW 70.98.085 and 1990 c 21 s 7 are each amended to read as follows:
     (1) The agency is empowered to administer a user permit system and issue site use permits for generators, packagers, or brokers to use the commercial low-level radioactive waste disposal facility. The agency may issue a site use permit consistent with the requirements of this chapter and the rules adopted under it and the requirements of the Northwest Interstate Compact on Low-Level Radioactive Waste Management under chapter 43.145 RCW. The agency may deny an application for a site use permit or modify, suspend ((and reinstate)), or revoke a site use permit((s consistent with current regulatory practices and in coordination with the department of ecology, for generators, packagers, or brokers using the Hanford low-level radioactive waste disposal facility)) in any case in which it finds that the permit was obtained by fraud or there is or has been a failure, refusal, or inability to comply with the requirements of this chapter or rules adopted under this chapter or the requirements of the Northwest Interstate Compact on Low-Level Radioactive Waste Management under chapter 43.145 RCW. The agency may also deny or suspend a site use permit for failure to comply with RCW 43.200.230.
     (2) Any permit issued by the department of ecology for a site use permit pursuant to chapter 43.200 RCW is valid until the first expiration date that occurs after July 1, 2012.
     (3) The agency shall collect a fee from the applicants for site use permits that is sufficient to fund the costs to the agency to administer the user permit system. The site use permit fee must be set at a level that is also sufficient to fund state participation in activities related to the Northwest Interstate Compact on Low-Level Radioactive Waste Management under chapter 43.145 RCW. The site use permit fees must be deposited in the site closure account established in RCW 43.200.080(2). Appropriations to the department of health or the department of ecology are required to permit expenditures using site use permit fee funds from the site closure account.
     (4) The agency shall collect a surveillance fee as an added charge on each cubic foot of low-level radioactive waste disposed of at the commercial low-level radioactive waste disposal site in this state which shall be set at a level that is sufficient to fund completely the radiation control activities of the agency directly related to the disposal site, including but not limited to the management, licensing, monitoring, and regulation of the site. ((The surveillance fee shall not exceed five percent in 1990, six percent in 1991, and seven percent in 1992 of the basic minimum fee charged by an operator of a low-level radioactive waste disposal site in this state. The basic minimum fee consists of the disposal fee for the site operator, the fee for the perpetual care and maintenance fund administered by the state, the fee for the state closure fund, and the tax collected pursuant to chapter 82.04 RCW. Site use permit fees and surcharges collected under chapter 43.200 RCW are not part of the basic minimum fee.)) The fee shall also provide funds to the Washington state patrol for costs incurred from inspection of low-level radioactive waste shipments entering this state. Disbursements for this purpose shall be by authorization of the secretary of the department of health or the secretary's designee.
     (5) The agency shall require that any person who holds or applies for a permit under this chapter indemnify and hold harmless the state from claims, suits, damages, or expenses on account of injuries to or death of persons and property damage, arising or growing out of any operations and activities for which the person holds the permit, and any necessary or incidental operations.
     (6) The agency may adopt such rules as are necessary to carry out its responsibilities under this section.

Sec. 256   RCW 70.98.095 and 1992 c 61 s 3 are each amended to read as follows:
     (1) The radiation control agency may require any person who applies for, or holds, a license under this chapter to demonstrate that the person has financial assurance sufficient to assure that liability incurred as a result of licensed operations and activities can be fully satisfied. Financial assurance may be in the form of insurance, cash deposits, surety bonds, corporate guarantees, letters of credit, or other financial instruments or guarantees determined by the agency to be acceptable financial assurance. The agency may require financial assurance in an amount determined by the secretary pursuant to RCW 70.98.098.
     (2) The radiation control agency may require site use permit holders to demonstrate financial assurance in an amount that is adequate to protect the state and its citizens from all claims, suits, losses, damages, or expenses on account of injuries to persons and property damage arising or growing out of the transportation or disposal of commercial low-level radioactive waste. The financial assurance may be in the form of insurance, cash deposits, surety bonds, corporate guarantees, and other acceptable instruments or guarantees determined by the secretary to be acceptable evidence of financial assurance. The agency may require financial assurance in an amount determined by the secretary pursuant to RCW 70.98.098.
     (3) The radiation control agency shall refuse to issue a license or permit or suspend the license or permit of any person required by this section to demonstrate financial assurance who fails to demonstrate compliance with this section. The license or permit shall not be issued or reinstated until the person demonstrates compliance with this section.
     (((3))) (4) The radiation control agency shall require (a) that any person required to demonstrate financial assurance, maintain with the agency current copies of any insurance policies, certificates of insurance, letters of credit, surety bonds, or any other documents used to comply with this section, (b) that the agency be notified of any changes in the financial assurance or financial condition of the person, and (c) that the state be named as an insured party on any insurance policy used to comply with this section.

Sec. 257   RCW 70.98.098 and 2003 1st sp.s. c 21 s 2 are each amended to read as follows:
     (1) In making the determination of the appropriate level of financial assurance, the secretary shall consider: (a) ((The)) Any report prepared by the department of ecology pursuant to RCW 43.200.200; (b) the potential cost of decontamination, treatment, disposal, decommissioning, and cleanup of facilities or equipment; (c) federal cleanup and decommissioning requirements; and (d) the legal defense cost, if any, that might be paid from the required financial assurance.
     (2) The secretary may establish different levels of required financial assurance for various classes of permit or license holders.
     (3) The secretary shall establish by rule the instruments or mechanisms by which a person may demonstrate financial assurance as required by RCW 70.98.095.
     (4) To the extent that money in the site closure account together with the amount of money identified for repayment to the site closure account pursuant to RCW 43.200.080 equals or exceeds the cost estimate approved by the department of health for closure and decommissioning of the ((Hanford)) commercial low-level radioactive waste disposal facility, the money in the site closure account together with the amount of money identified for repayment to the site closure account shall constitute adequate financial assurance for purposes of the department of health financial assurance requirements under RCW 70.98.095.

Sec. 258   RCW 70.98.130 and 1989 c 175 s 133 are each amended to read as follows:
     (1) In any proceeding under this chapter for the issuance or modification or repeal of rules relating to control of sources of ionizing radiation, the agency shall comply with the requirements of chapter 34.05 RCW, the administrative procedure act.
     (2) Notwithstanding any other provision of this chapter, whenever the agency finds that an emergency exists requiring immediate action to protect the public health, safety, or general welfare, the agency may, in accordance with RCW 34.05.350 without notice or hearing, adopt a rule reciting the existence of such emergency and require that such action be taken as is necessary to meet the emergency. As specified in RCW 34.05.350, such rules are effective immediately.
     (3) In any case in which the department denies, modifies, suspends, or revokes a license or permit, RCW 43.70.115 governs notice of the action and provides the right to an adjudicative proceeding to the applicant or licensee or permittee. Such an adjudicative proceeding is governed by chapter 34.05 RCW.

NEW SECTION.  Sec. 259   A new section is added to chapter 70.98 RCW to read as follows:
     The agency shall adopt rules for administering a site use permit program under RCW 70.98.085.

NEW SECTION.  Sec. 260   A new section is added to chapter 43.200 RCW to read as follows:
     (1) The site use permit program is transferred from the department of ecology to the department of health.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of ecology site use permit program shall be delivered to the custody of the department of health. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of ecology site use permit program shall be transferred to the department of health. All funds, credits, or other assets held by the department of ecology site use permit program shall be assigned to the department of health.
     (b) Any appropriations made to the department of ecology for the site use permit program shall be transferred and credited to the department of health.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the department of ecology site use permit program are transferred to the jurisdiction of the department of health. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of health to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the department of ecology site use permit program shall be continued and acted upon by the department of health. All existing contracts and obligations shall remain in full force and shall be performed by the department of health.
     (5) The transfer of the powers, duties, functions, and personnel of the department of ecology site use permit program to the department of health under this act shall not affect the validity of any activity performed before the effective date of this section or the effective date of the consolidation.
     (6) If apportionments of budgeted funds are required because of the consolidation directed by this section, the director of financial management shall certify the apportionments to the affected agencies, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All classified employees of the department of ecology site use permit program assigned to the department of health under this act whose positions are within an existing bargaining unit description at the department of health shall become a part of the existing bargaining unit at the department of health and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 261   RCW 43.200.210 (Immunity of state--Demonstration of financial assurance -- Suspension of permit) and 1992 c 61 s 2, 1990 c 82 s 2, & 1986 c 191 s 2 are each repealed.

NEW SECTION.  Sec. 262   (1) On the effective date of this section, the secretary of health and the directors of the department of ecology, the pollution liability insurance agency, and the Columbia river gorge commission must each designate one executive-level representative to serve on a consolidation transition team. This team must, with the assistance of their agencies, develop the following work products:
     (a) A consolidation transition team report, to be submitted to the office of financial management and the legislature by August 1, 2011. This report must, at a minimum, detail all legislative and fiscal changes necessary for the successful implementation of this consolidation and identify expected costs and savings associated with the consolidation.
     (b) A supplemental budget request, if necessary, for consideration during the 2012 legislative session. This request must encompass any necessary budgetary and legislative changes for the agencies affected by this consolidation, and be submitted to the office of financial management by September 1, 2011.
     (c) A second consolidation transition team report, to be submitted to the director of ecology by July 1, 2012. This report must, at a minimum, detail all additional legislative and fiscal changes necessary for the successful implementation of this agency consolidation and identify expected costs and savings associated with the consolidation.
     (2) This section applies to the consolidation directed pursuant to sections 201 through 261 of this act.

NEW SECTION.  Sec. 263   The consolidation directed pursuant to sections 201 through 262 of this act takes effect July 1, 2012.

NEW SECTION.  Sec. 264   Section 241 of this act expires July 22, 2011.

NEW SECTION.  Sec. 265   Section 242 of this act takes effect July 22, 2011.

NEW SECTION.  Sec. 266   Except for sections 103, 104, and 242 of this act, 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 July 1, 2011.