Proposed rule making suspended

Governor Gregoire issued Executive Orders 10-06 and 11-03, requiring agencies to suspend non-critical rule making. The Department of Ecology has determined to suspend proposed rulemaking at this time related to Chapter 173-224 WAC, Wastewater Discharge Permit Fees.

The Wastewater Discharge Permit fees cover the cost of administering the permits. For the past three years, Ecology’s water quality program has been talking with members of the regulated community and holding workgroups on the wastewater discharge permit fees. A key concern stakeholders raised was over fee equity, as some permittees currently cover more of these costs than do others. No new revenue would have been generated as a result of this rulemaking; however, some fees would increase and some would decrease. Options to promote equity and other restructuring needs will be discussed in a fee report to the Legislature.

The problem

The Washington Department of Ecology (Ecology) administers approximately 6,000 state and federal wastewater and stormwater discharge permits. These permits are key tools to protect our lakes, rivers, marine and underground waters.

The permit holders include local governments, large and small industries, such as pulp mills, fish hatcheries and food-processing facilities. Activities that can create pollution such as aquatic pesticide discharge, shipyards, boatyards, and construction sites hold permits. Domestic wastewater-treatment plants, which treat sewage from the majority of homes and businesses in Washington state, also must have permits to manage the safe discharge of pollution.

In 1988, passage of Initiative 97 mandated that Ecology establish an annual fee program to collect expenses for issuing and administering each class of wastewater discharge permit. The fees enable Ecology to provide information and offer assistance to permit holders, review engineering plans, conduct water quality source control studies, inspect permitted facilities, cover associated overhead costs, and do other administrative work. Ecology created the original fee category structure when it administered only individual permits when there were fewer permit requirements.

Over time, the fee rate structure has become outdated and does not reflect the actual cost of administering the various categories of permits. Some categories pay more than others for similar permit services. Ecology established a task force to help identify ideas and solutions to this inequity problem. The purpose of the task force is to advise Ecology on potential options and alternatives to address the funding inequity.

The proposed solution

The task force has recommended that Ecology change the fee structure so that a more direct relationship is established between fee rates and agency cost to provide and administer each permit. A preliminary fee rate proposal was developed to stimulate the discussion about the effect and the options for implementing the fee for service concept. The preliminary fee rate proposal indicates that some permittees are now paying more and some paying less for their permits than they would under the fee for service concept. As the preliminary proposal is discussed, other options for spreading the equity around will be proposed and tested.

The task force has also encouraged Ecology to continue to seek improvements in the permit program. The average cost of permit coverage has declined in recent years due mostly to the increased use of general permits in place of individual permits to demonstrate compliance with water pollution laws.

The information presented below was discussed by the task force at the most recent meetings in 2011. More information will be available as the task force continues the dialog on permit fee revisions.