HOUSE BILL REPORT

EHB 2571

BYRepresentatives Sprenkle, Walker, Valle, D. Sommers, Rust, Schoon, Brekke,G. Fisher, Pruitt, Fraser, May, Spanel and Todd

Exempting motor freight carriers who haul recyclables from certain utilities and transportation commission regulation.

House Committe on Environmental Affairs

Majority Report:  Do pass as amended.  (10)

      Signed by Representatives Rust, Chair; Valle, Vice Chair; D. Sommers, Ranking Republican Member; Brekke, G. Fisher, Fraser, Phillips, Pruitt, Sprenkle and Walker.

House Staff:Rick Anderson (786-7114)

AS PASSED HOUSE FEBRUARY 13, 1990

BACKGROUND:

Motor vehicles that transport commodities as a business are regulated by the Utilities and Transportation Commission, if the transportation occurs solely within the state.  Motor vehicles transporting commodities across state lines are regulated under federal law.  Federal regulations consist only of insurance and registration requirements.

The commission regulates persons in the business of transporting commodities in three ways.  First, the commission regulates the rates charged by motor vehicle operators by establishing fixed fees or tariffs for each commodity transported.  Second, the commission requires operators to demonstrate that the operator provides an essential public service that cannot be obtained elsewhere.  This "public convenience and necessity" requirement acts to limit the number of operators that transport a given commodity on a given route.  Third, the commission requires operators to insure and register their vehicles.

Arguably, the higher level of state regulation makes it cheaper to transport commodities across state lines rather than within the state.  Given the low value of many recycled commodities, the cost of transporting these commodities within the state may limit the extent to which they can be profitably recycled.

SUMMARY:

Motor vehicles operators are exempt from rate regulation and the public convenience and necessity requirement imposed by the commission if the operator transports:  1) recycled materials from a site that generates more than 50 cubic yards to a recycling facility or to a manufacturing site that uses recycled materials in its production process; 2) recycled materials from a recycling facility to a manufacturing site using recycled materials; and 3) low value grades of recycled paper from a recycling facility to an energy recovery facility.

Motor vehicle operators must meet certain safety requirements in addition to insurance and registration requirements.

Recycled materials include paper, glass, plastic, wood, metals, yard waste, used oil, and tires that are collected for recycling. Recycled materials does not include wood waste originating from a logging, chipping, or milling activity.

The Department of Trade and Economic Development, the Utilities and Transportation Commission, and the Department of Ecology must determine if the exemptions from the commission's regulations result in a greater volume of recycled materials being transported within the state.  The agencies must also evaluate if the exemptions increase safety violations or traffic accidents.  The agencies are to submit the results of their study to the Legislature by October 1, 1993.  The commission must adopt rules requiring motor vehicle operators to submit information necessary to conduct the study.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Greg Wright, Washington State Recycling Association; Susan Bishop, Jefferson Recycling Center; Kelly Beetnem, Student Action for Environment; Kym Davidson, Student Action for Environment; Bill Alkire, Department of Ecology; Polly Lord, King County Commission; John Ficker, Weyerhaeuser; and Jan Gee, Washington Retail Association.

House Committee - Testified Against:      Marty Sangster, Washington Trucking Association; and Mike Ryherd, Teamsters.

House Committee - Testimony For:    The bill is necessary to lower transportation costs for recycled commodities.  On a per mile basis, recyclers can often ship to other states more cheaply than they can ship to areas within the state.  Transportation rates cannot be economically or practically reduced using the current administrative process.

House Committee - Testimony Against:      The bill is not necessary because transportation costs are routinely lowered administratively.  The bill would force truck drivers to work at a loss.