Representative Lee B. Perry proposes the following substitute bill:


1     
WASTE MANAGEMENT AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lee B. Perry

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill deals with fees set by the Division of Waste Management and Radiation
10     Control.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates the Division of Waste Management and Radiation Control Expendable
14     Revenue Fund and describes the uses of the fund;
15          ▸     requires the Division of Waste Management and Radiation Control to upgrade
16     technology;
17          ▸     states that the annual fee schedule set by the Division of Waste Management and
18     Radiation Control shall be equitable and fair, though not necessarily equal or
19     uniform;
20          ▸     provides criteria in setting the annual fee schedule;
21          ▸     authorizes a landfill to conduct a self-inspection with reporting to the Division of
22     Waste Management and Radiation Control;
23          ▸     provides a repeal date; and
24          ▸     makes technical changes.
25     Money Appropriated in this Bill:

26          None
27     Other Special Clauses:
28          This bill provides a special effective date.
29     Utah Code Sections Affected:
30     AMENDS:
31          19-1-108, as last amended by Laws of Utah 2013, Chapter 330
32          19-6-109, as last amended by Laws of Utah 2012, Chapter 360
33          19-6-119, as last amended by Laws of Utah 2017, Chapter 281
34          19-6-307, as last amended by Laws of Utah 2013, Chapter 400
35          63I-2-219, as last amended by Laws of Utah 2016, Chapter 369
36     ENACTS:
37          19-6-126, Utah Code Annotated 1953
38     

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 19-1-108 is amended to read:
41          19-1-108. Creation of Environmental Quality Restricted Account -- Purpose of
42     restricted account -- Sources of funds -- Uses of funds.
43          (1) There is created the Environmental Quality Restricted Account.
44          (2) The sources of money for the restricted account are:
45          (a) radioactive waste disposal fees collected under Sections 19-3-106 and 19-3-106.4
46     and other fees collected under Subsection 19-3-104(5);
47          (b) hazardous waste disposal fees collected under Section 19-6-118;
48          (c) PCB waste disposal fees collected under Section 19-6-118.5;
49          (d) nonhazardous solid waste disposal fees collected under Section 19-6-119; and
50          (e) the investment income derived from money in the Environmental Quality
51     Restricted Account.
52          (3) In each fiscal year[,]:
53          (a) the first [$400,000] $200,000 collected from the waste disposal fees listed in
54     Subsection (2), collectively, shall be deposited in the [General Fund as free revenue. The
55     balance] Division of Waste Management and Radiation Control Expendable Revenue Fund
56     created in Section 19-6-126; and

57          (b) the balance of the money collected from the waste disposal fees listed in Subsection
58     (2), collectively, shall be deposited in the Environmental Quality Restricted Account.
59          (4) The Legislature may annually appropriate money from the Environmental Quality
60     Restricted Account to the department for the costs of administering:
61          (a) [the department for the costs of administering] radiation control programs; and
62          (b) [the department for the costs of administering] solid and hazardous waste
63     programs[; and].
64          [(c) subject to Subsection (6), the Hazardous Substances Mitigation Fund, up to
65     $400,000, to provide money to:]
66          (5) Each year beginning July 1, 2018, and ending on June 30, 2022, the Division of
67     Finance shall transfer $200,000 from the Environmental Quality Restricted Account to the
68     Hazard Substances Mitigation Fund, to provide money to:
69          [(i)] (a) meet the state's cost share requirements for cleanup under the Comprehensive
70     Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Sec. 9601 et seq.
71     as amended; and
72          [(ii)] (b) respond to an emergency as provided in Section 19-6-309.
73          [(5)] (6) After the requirements of Subsection (3) are met, sources of money for the
74     restricted account described in Subsection (2)(a) may only be used for the purpose described in
75     Subsection (4)(a).
76          [(6) An annual request for money to be appropriated from the Environmental Quality
77     Restricted Account to the Hazardous Substances Mitigation Fund may be made by the
78     department only after the executive director's review of the Environmental Quality Restricted
79     Account's or the Hazardous Substances Mitigation Fund's balance as of the end of the fiscal
80     year immediately before the general session for which the request is made.]
81          (7) In order to stabilize funding for the radiation control program and the solid and
82     hazardous waste program, the Legislature shall in years of excess revenues reserve in the
83     Environmental Quality Restricted Account sufficient money to meet departmental needs in
84     years of projected shortages.
85          (8) The Legislature may not appropriate money from the General Fund to the
86     department as a supplemental appropriation to cover the costs of the radiation control program
87     and the solid and hazardous waste program in an amount exceeding 25% of the amount of

88     waste disposal fees collected during the most recent prior fiscal year.
89          (9) Money appropriated under this part that is not expended at the end of the fiscal year
90     lapses into the Environmental Quality Restricted Account.
91          (10) (a) The balance in the Environmental Quality Restricted Account may not exceed
92     $4,000,000 above the anticipated revenue need for the money in the restricted account for the
93     fiscal year.
94          (b) Excess funds under Subsection (10)(a) shall be credited on a proportionate basis to
95     each person who paid money to the fund in the previous fiscal year.
96          Section 2. Section 19-6-109 is amended to read:
97          19-6-109. Inspections authorized -- Fines for a self-inspected facility.
98          [Any] (1) A duly authorized officer, employee, or representative of the director may, at
99     any reasonable time and upon presentation of appropriate credentials, enter upon and inspect
100     any property, premise, or place on or at which solid or hazardous wastes are generated,
101     transported, stored, treated, or disposed of, and have access to and the right to copy any records
102     relating to the wastes, for the purpose of ascertaining compliance with this part and the rules of
103     the board. [Those persons referred to in this section]
104          (2) An inspector may also inspect any waste and obtain waste samples, including
105     samples from any vehicle in which wastes are being transported or samples of any containers or
106     labels.
107          (3) Any person obtaining samples shall give to the owner, operator, or agent a receipt
108     describing the sample obtained and, if requested, a portion of each sample of waste equal in
109     volume or weight to the portion retained.
110          (4) If any analysis is made of those samples, a copy of the results of that analysis shall
111     be furnished promptly to the owner, operator, or agent in charge.
112          (5) (a) Notwithstanding any other provision of this section, by January 1, 2019, the
113     division shall ensure that an owner or operator of a solid waste management facility may elect
114     to self-inspect the solid waste management facility.
115          (b) (i) The division shall create a training program to teach the owner or operator of a
116     solid waste management facility how to self-inspect the owner or operator's solid waste
117     management facility.
118          (ii) The training described in Subsection (5)(b)(i) shall be no longer than five hours

119     total.
120          (c) An owner or operator that elects to self-inspect a solid waste management facility
121     under Subsection (5)(a) shall:
122          (i) provide all information to the division that is required by this chapter and any rules
123     issued by the board; and
124          (ii) conduct the self-inspection annually and send a certified self-inspection report to
125     the division upon completion.
126          (d) The division shall ensure that a solid waste management facility is inspected by an
127     authorized division employee:
128          (i) every three to five years, if the solid waste management facility does not elect to
129     self-inspect under Subsection (5)(a);
130          (ii) at least once every five years, regardless of whether the solid waste management
131     facility elects to self-inspect under Subsection (5)(a);
132          (iii) promptly upon receipt of a valid complaint about the solid waste management
133     facility; and
134          (iv) upon request by the solid waste management facility or upon issuance of a notice
135     of violation.
136          (6) The division shall ensure that a fine assessed against a solid waste management
137     facility that elects to self-inspect for a violation of this chapter or a rule made by the board is
138     higher than the fine that would be assessed against a solid waste management facility that does
139     not elect to self-inspect.
140          Section 3. Section 19-6-119 is amended to read:
141          19-6-119. Nonhazardous solid waste disposal fees.
142          (1) (a) Through December 31, 2018, and except as provided in Subsection (4), the
143     owner or operator of a commercial nonhazardous solid waste disposal facility or incinerator
144     shall pay the following fees for waste received for treatment or disposal at the facility if the
145     facility or incinerator is required to have operation plan approval under Section 19-6-108 and
146     primarily receives waste generated by off-site sources not owned, controlled, or operated by the
147     facility or site owner or operator:
148          (i) 13 cents per ton on all municipal waste and municipal incinerator ash;
149          (ii) 50 cents per ton on the following wastes if the facility disposes of one or more of

150     the following wastes in a cell exclusively designated for the waste being disposed:
151          (A) construction waste or demolition waste;
152          (B) yard waste, including vegetative matter resulting from landscaping, land
153     maintenance, and land clearing operations;
154          (C) dead animals;
155          (D) waste tires and materials derived from waste tires disposed of in accordance with
156     Title 19, Chapter 6, Part 8, Waste Tire Recycling Act; and
157          (E) petroleum contaminated soils that are approved by the director; and
158          (iii) $2.50 per ton on:
159          (A) all nonhazardous solid waste not described in Subsections (1)(a)(i) and (ii); and
160          (B) (I) fly ash waste;
161          (II) bottom ash waste;
162          (III) slag waste;
163          (IV) flue gas emission control waste generated primarily from the combustion of coal
164     or other fossil fuels;
165          (V) waste from the extraction, beneficiation, and processing of ores and minerals; and
166          (VI) cement kiln dust wastes.
167          (b) A commercial nonhazardous solid waste disposal facility or incinerator subject to
168     the fees under Subsection (1)(a)(i) or (ii) is not subject to the fee under Subsection (1)(a)(iii)
169     for those wastes described in Subsections (1)(a)(i) and (ii).
170          (c) The owner or operator of a facility described in Subsection 19-6-102(3)(b)(iii) shall
171     pay a fee of 13 cents per ton on all municipal waste received for disposal at the facility.
172          (2) (a) Through December 31, 2018, and except as provided in Subsections (2)(c) and
173     (4), a waste facility that is owned by a political subdivision shall pay the following annual
174     facility fee to the department by January 15 of each year:
175          (i) $800 if the facility receives 5,000 or more but fewer than 10,000 tons of municipal
176     waste each year;
177          (ii) $1,450 if the facility receives 10,000 or more but fewer than 20,000 tons of
178     municipal waste each year;
179          (iii) $3,850 if the facility receives 20,000 or more but fewer than 50,000 tons of
180     municipal waste each year;

181          (iv) $12,250 if the facility receives 50,000 or more but fewer than 100,000 tons of
182     municipal waste each year;
183          (v) $14,700 if the facility receives 100,000 or more but fewer than 200,000 tons of
184     municipal waste each year;
185          (vi) $33,000 if the facility receives 200,000 or more but fewer than 500,000 tons of
186     municipal waste each year; and
187          (vii) $66,000 if the facility receives 500,000 or more tons of municipal waste each
188     year.
189          (b) The fee identified in Subsection (2)(a) for 2018 shall be paid by January 15, 2019.
190          (c) Through December 31, 2018, and except as provided in Subsection (4), a waste
191     facility that is owned by a political subdivision shall pay $2.50 per ton for:
192          (i) nonhazardous solid waste that is not a waste described in Subsection (1)(a)(i) or (ii)
193     received for disposal if the waste is:
194          (A) generated outside the boundaries of the political subdivision; and
195          (B) received from a single generator and exceeds 500 tons in a calendar year; and
196          (ii) waste described in Subsection (1)(a)(iii)(B) received for disposal if the waste is:
197          (A) generated outside the boundaries of the political subdivision; and
198          (B) received from a single generator and exceeds 500 tons in a calendar year.
199          (d) Waste received at a facility owned by a political subdivision under Subsection
200     (2)(c) may not be counted as part of the total tonnage received by the facility under Subsection
201     (2)(a).
202          (3) (a) As used in this Subsection (3):
203          (i) "Recycling center" means a facility that extracts valuable materials from a waste
204     stream or transforms or remanufactures the material into a usable form that has demonstrated
205     or potential market value.
206          (ii) "Transfer station" means a permanent, fixed, supplemental collection and
207     transportation facility that is used to deposit collected solid waste from off-site into a transfer
208     vehicle for transport to a solid waste handling or disposal facility.
209          (b) Through December 31, 2018, and except as provided in Subsection (4), the owner
210     or operator of a transfer station or recycling center shall pay to the department the following
211     fees on waste sent for disposal to a nonhazardous solid waste disposal or treatment facility that

212     is not subject to a fee under this section:
213          (i) $1.25 per ton on:
214          (A) all nonhazardous solid waste; and
215          (B) waste described in Subsection (1)(a)(iii)(B);
216          (ii) 10 cents per ton on all construction and demolition waste; and
217          (iii) 5 cents per ton on all municipal waste or municipal incinerator ash.
218          (c) Wastes subject to fees under Subsection (3)(b)(ii) or (iii) are not subject to the fee
219     required under Subsection (3)(b)(i).
220          (4) The owner or operator of a waste disposal facility that receives nonhazardous solid
221     waste described in Subsection (1)(a)(iii)(B) is not required to pay any fee on those
222     nonhazardous solid wastes if received solely for the purpose of recycling, reuse, or
223     reprocessing.
224          (5) Through December 31, 2018, and except as provided in Subsection (2)(a), a facility
225     required to pay fees under this section shall:
226          (a) calculate the fees by multiplying the total tonnage of nonhazardous solid waste
227     received during the calendar month, computed to the first decimal place, by the required fee
228     rate;
229          (b) pay the fees imposed by this section to the department by the 15th day of the month
230     following the month in which the fees accrued; and
231          (c) with the fees required under Subsection (6)(b), submit to the department, on a form
232     prescribed by the department, information that verifies the amount of nonhazardous solid waste
233     received and the fees that the owner or operator is required to pay.
234          (6) (a) In accordance with Section 63J-1-504, on or before July 1, 2018, and each fiscal
235     year thereafter, the department shall establish a fee schedule for the treatment, transfer, and
236     disposal of all nonhazardous solid waste.
237          (b) The department shall, before establishing the annual fee schedule described in
238     Subsection (6)(a), consult with industry and local government and complete a review of
239     program costs and indirect costs of regulating nonhazardous solid waste in the state and use the
240     findings of the review to create the fee schedule.
241          (c) The fee schedule described in Subsection (6)(a) shall:
242          (i) create an equitable and fair, though not necessarily equal or uniform, fee to be paid

243     by all persons whose treatment, transfer, or disposal of nonhazardous solid waste creates a
244     regulatory burden to the department, based on the actual cost as described in Section 19-6-126,
245     except as provided in Subsection (6)(d);
246          (ii) cover the fully burdened costs of the program and provide for reasonable and
247     timely oversight by the department;
248          (iii) adequately meet the needs of industry, local government, and the department,
249     including enabling the department to employ the appropriate number of qualified personnel to
250     appropriately oversee industry and local government regulation;
251          (iv) provide stable funding for the Environmental Quality Restricted Account created
252     in Section 19-1-108; and
253          (v) [give consideration to a fee differential regarding] for solid waste managed at a
254     transfer facility, be no greater than [50 percent of the fee set for the treatment or disposal of the
255     same solid waste] the cost of regulatory services provided to the transfer facility.
256          (d) Any person who treats, transfers, stores, or disposes of solid waste from the
257     extraction, beneficiation, and processing of ores and minerals on a site owned, controlled, or
258     operated by that person may not be charged a fee under this section for the treatment, transfer,
259     storage, or disposal of solid waste from the extraction, beneficiation, and processing of ores
260     and minerals that are generated:
261          (i) on-site by the person; or
262          (ii) by off-site sources owned, controlled, or operated by the person.
263          (e) The fees in the fee schedule established by Subsection (6)(a) shall take effect on
264     January 1, 2019.
265          (7) On and after January 1, 2019, a facility required to pay fees under this section shall:
266          (a) pay the fees imposed by this section to the department by the 15th day of the month
267     following the quarter in which the fees accrued; and
268          (b) with the fees required under Subsection (7)(a), submit to the department, on a form
269     prescribed by the department, information that verifies the amount of nonhazardous solid waste
270     received and the fees that the owner or operator is required to pay.
271          (8) In setting the fee schedule described in Subsection (6)(a), the department shall
272     ensure that a party is not charged multiple fees for the same solid waste, except the department
273     may charge a separate fee for a transfer station.

274          (9) The department shall:
275          (a) deposit all fees received under this section into the Environmental Quality
276     Restricted Account created in Section 19-1-108; and
277          (b) in preparing its budget for the governor and the Legislature, separately indicate the
278     amount of the department's budget necessary to administer the solid and hazardous waste
279     program established by this part.
280          (10) The department may contract or agree with a county to assist in performing
281     nonhazardous solid waste management activities, including agreements for:
282          (a) the development of a solid waste management plan required under Section
283     17-15-23; and
284          (b) pass-through of available funding.
285          (11) This section does not exempt any facility from applicable regulation under the
286     Atomic Energy Act, 42 U.S.C. Sec. 2014 and 2021 through 2114.
287          (12) The department shall report to the Natural Resources, Agriculture, and
288     Environment Interim Committee by November 30, 2017, on the fee schedule described in
289     Subsection (6)(a).
290          Section 4. Section 19-6-126 is enacted to read:
291          19-6-126. Division of Waste Management and Radiation Control Expendable
292     Revenue Fund.
293          (1) There is created the Division of Waste Management and Radiation Control
294     Expendable Revenue Fund.
295          (2) The fund consists of money deposited in the fund pursuant to Section 19-1-108.
296          (3) The Division of Waste Management and Radiation Control may expend money in
297     the fund to upgrade technology for permitting and compliance purposes, and other expenditures
298     that will result in increased efficiency and reduced cost, as described in this section.
299          (4) The technology upgrade authorized in this section shall be designed to assist the
300     division in the following ways:
301          (a) allowing forms to be digitized and accessible online for:
302          (i) completion and submission by a division employee; and
303          (ii) review by a regulated facility;
304          (b) tracking expenses of a division employee, including travel time to inspected

305     facilities; and
306          (c) increasing employee efficiency and government transparency.
307          (5) The Division of Waste Management and Radiation Control may use money in the
308     fund to create training materials for the owner or operator of a solid waste management facility
309     to learn how to self-inspect the solid waste management facility.
310          (6) (a) Once the technology described in this section is in place, the Division of Waste
311     Management and Radiation Control shall implement a method for a solid waste management
312     facility to use the technology to self-inspect as described in Section 19-6-109.
313          (b) Before the technology described in this section is in place, an owner or operator
314     who elects to self-inspect shall use the standard form used by a Division of Waste Management
315     and Radiation Control employee to conduct an inspection.
316          (7) In implementing this section, the Division of Waste Management and Radiation
317     Control shall work with the Department of Technology Services.
318          (8) On December 31, 2019, the Division of Finance shall transfer any money remaining
319     in the fund to the General Fund.
320          Section 5. Section 19-6-307 is amended to read:
321          19-6-307. Hazardous Substances Mitigation Fund -- Uses.
322          (1) There is created an expendable special revenue fund entitled the "Hazardous
323     Substances Mitigation Fund."
324          (2) The fund consists of money generated from the following revenue sources:
325          (a) any voluntary contributions received for the cleanup of hazardous substances
326     facilities;
327          (b) appropriations made to the fund by the Legislature; [and]
328          (c) money received by the state under Section 19-6-310 and Section 19-6-316[.]; and
329          (d) money from waste disposal fees, as described in Section 19-1-108.
330          (3) (a) The fund shall earn interest.
331          (b) All interest earned on fund money shall be deposited into the fund.
332          (4) The executive director may use fund money to:
333          (a) take emergency action as provided in Sections 19-6-309 and 19-6-310;
334          (b) conduct remedial investigations as provided in Sections 19-6-314 through
335     19-6-316;

336          (c) pay the amount required by the federal government as the state's portion of the cost
337     of cleanups under authority of CERCLA, as appropriated by the Legislature for that purpose;
338     and
339          (d) pay the amount required by the federal government as the state's portion of the cost
340     of cleanups under 42 U.S.C. 6991 et seq., the Leaking Underground Storage Tank Trust Fund,
341     as appropriated by the Legislature for that purpose.
342          Section 6. Section 63I-2-219 is amended to read:
343          63I-2-219. Repeal dates -- Title 19.
344          [(1) Subsection 19-1-403(2)(c)(i), the language that states "minus the amount of any
345     tax credit claimed under Section 59-7-605 or 59-10-1009" is repealed on January 1, 2017.]
346          [(2) Subsection 19-1-403(2)(c)(ii), the language that states "minus the amount of any
347     tax credit claimed under Section 59-7-605 or 59-10-1009" is repealed on January 1, 2017.]
348          (1) (a) Subsection 19-1-108(3)(a) is repealed on June 30, 2019.
349          (b) When repealing Subsection 19-1-108(3)(a), the Office of Legislative Research and
350     General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
351     necessary changes to subsection numbering and cross references.
352          (2) Section 19-6-126 is repealed on January 1, 2020.
353          Section 7. Effective date.
354          This bill takes effect on July 1, 2018.