Notice of Public Hearing of Substitute House Bill 1290
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SHB 1290, titled AN ACT Relating to reviews of voluntary cleanups, has been scheduled for a public hearing by the Senate Committee on Environment, Energy & Technology.
Date and Time: 03/14/2019 10:00AM (Subject to change by the Legislature.)
Location: J.A. Cherberg Building, Senate Hearing Rm 1, 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 |
Expedited Voluntary Cleanup Recoveries or Fees |
|
|
||
2020 |
$0 |
|
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.
The substitute bill was proposed by:
House Committee on Environment & Energy
(360) 786-7297
The original bill sponsors and contact information are:
Senate Committee on Environment, Energy & Technology members and contact information:
Senator Andy Billig
Democrat
(360) 786-7604
Andy.Billig@leg.wa.gov
Senator Sharon Brown
Republican
(360) 786-7614
Sharon.Brown@leg.wa.gov
Senator Reuven Carlyle
Democrat
(360) 786-7670
Reuven.Carlyle@leg.wa.gov
Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov
Senator Doug Ericksen
Republican
(360) 786-7682
Doug.Ericksen@leg.wa.gov
Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov
Senator Brad Hawkins
Republican
(360) 786-7622
Brad.Hawkins@leg.wa.gov
Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov
Senator Marko Liias
Democrat
(360) 786-7640
Marko.Liias@leg.wa.gov
Senator John McCoy
Democrat
(360) 786-7674
John.McCoy@leg.wa.gov
Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov
Senator Guy Palumbo
Democrat
(360) 786-7600
Guy.Palumbo@leg.wa.gov
Senator Ann Rivers
Republican
(360) 786-7634
Ann.Rivers@leg.wa.gov
Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov
Senator Shelly Short
Republican
(360) 786-7612
Shelly.Short@leg.wa.gov
Senator Lisa Wellman
Democrat
(360) 786-7641
Lisa.Wellman@leg.wa.gov
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp