Notice of Public Hearing of House Bill 1290

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HB 1290, titled AN ACT Relating to reviews of voluntary cleanups, has been scheduled for a public hearing by the House Committee on Environment & Energy.

Date and Time: 01/28/2019 1:30PM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm B, Olympia, WA

The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		Expedited Voluntary Cleanup Recoveries or Fees
2020
2021		$388,000
2022		$388,000
2023		$388,000
2024		$388,000
2025		$388,000
2026		$388,000
2027		$388,000
2028		$388,000
2029		$388,000
Total:		$ 3,492,000

Sections 2(2) and 2(3) would require that Ecology collect all of its costs from customers requesting reviews in the expedited review process, authorize Ecology to waive review costs under both the standard and expedited review processes if the customer commits to remediating the contaminated real property for development of affordable housing, and clarify what elements may be included in a revenue model for the expedited review process (fees, cost recovery, or both). 

To calculate the cash receipt impacts that would result from the expedited review process and healthy housing remediation waiver requires Ecology to anticipate (1) the demand for the expedited review process; (2) when Ecology would initiate the expedited review process; (3) Ecology’s capacity to meet that demand; (4) the pace projects would move through the expedited review process; (5) the fee and/or cost recovery structure Ecology would use to collect its costs under the expedited review process; and (6) the number of projects in both the standard and expedited review processes receiving a waiver. 

UNIT COST OF PROJECTS REVIEWED UNDER THE EXPEDITED REVIEW PROCESS

For the purposes of this analysis, the following assumptions were used to estimate a unit cost of projects reviewed under the expedited review process. The unit cost would depend on the final fee and/or cost recovery structure and policies about how and when customers would pay. The structure would need to ensure that all costs of the expedited review process are collected. The structure could include single fees, multiple fees, or a combination of fees and cost recovery. That structure would be adopted in interpretive guidance and then rules.

Assumed number of new projects entering expedited review process each year = 12 projects. The final fee and/or cost recovery structure generated from these projects would need to be able to support the expedited review process.

Estimated total cost of supporting two cleanup project managers for twelve expedited review projects over one year = $423,000, including two Hydrogeologist 4s, associated program support, and Assistant Attorney General support.

Estimated average unit cost of projects reviewed under expedited review process = $423,000 / 12 projects = $35,250 per project. 

TOTAL CASH RECIEPTS TO NEW VCA EACH YEAR FROM THE EXPEDITED REVIEW PROCESS

Of those 12 projects, Ecology assumes the number of new projects entering the expedited review process each year receiving a healthy housing remediation project waiver = 1 project.

12 projects entering expedited review process – 1 project receiving healthy housing remediation waiver = 11 projects generating cash receipts.

11 projects generating cash receipts X $35,250 per unit cost = $387,750 deposited to the new Voluntary Cleanup Account. Fee revenue is estimated to begin in FY 2021.

Note: Reductions to cash receipts are not included in this analysis. Beginning in FY 2021, some VCP reviews that would have been conducted under the standard process would be conducted under the expedited review process, resulting in a reduction in cash receipts in the State Toxics Control Account for the standard process. In addition, some VCP reviews conducted under the standard and expedited review processes would receive healthy housing remediation waivers, resulting in a reduction in cash receipts in the State Toxics Control Account from reviews receiving waivers.

None

Bill sponsors and contact information:

Representative Strom Peterson, Prime Sponsor
Democrat
(360) 786-7950
Strom.Peterson@leg.wa.gov

Representative Andrew Barkis
Republican
(360) 786-7824
Andrew.Barkis@leg.wa.gov

Representative June Robinson
Democrat
(360) 786-7864
June.Robinson@leg.wa.gov

Representative Debra Lekanoff
Democrat
(360) 786-7800
LEKANOFF_DE@leg.wa.gov

Representative Jacquelin Maycumber
Republican
(360) 786-7908
MAYCUMBE_JA@leg.wa.gov

Representative Gerry Pollet
Democrat
(360) 786-7886
Gerry.Pollet@leg.wa.gov


House Committee on Environment & Energy members and contact information:

Representative Matt Boehnke
Republican
(360) 786-7986
BOEHNKE_MA@leg.wa.gov

Representative Richard DeBolt
Republican
(360) 786-7896
Richard.DeBolt@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7992
Beth.Doglio@leg.wa.gov

Representative Mary Dye
Republican
(360) 786-7942
Mary.Dye@leg.wa.gov

Representative Jake Fey
Democrat
(360) 786-7974
Jake.Fey@leg.wa.gov

Representative Joe Fitzgibbon
Democrat
(360) 786-7952
Joe.Fitzgibbon@leg.wa.gov

Representative Debra Lekanoff
Democrat
(360) 786-7800
LEKANOFF_DE@leg.wa.gov

Representative Jacquelin Maycumber
Republican
(360) 786-7908
MAYCUMBE_JA@leg.wa.gov

Representative Jared Mead
Democrat
(360) 786-7892
MEAD_JA@leg.wa.gov

Representative Strom Peterson
Democrat
(360) 786-7950
Strom.Peterson@leg.wa.gov

Representative Matt Shea
Republican
(360) 786-7984
Matt.Shea@leg.wa.gov

Representative Sharon Shewmake
Democrat
(360) 786-7854
SHEWMAKE_SH@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp