This document includes House Committee Amendments incorporated into the bill on Fri, Feb 11, 2022 at 11:09 AM by pflowers.
1     
ENVIRONMENTAL QUALITY REVENUE AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stewart E. Barlow

5     
Senate Sponsor: Jani Iwamoto

6     

7     LONG TITLE
8     General Description:
9          This bill addresses fees and funds related to environmental quality.
10     Highlighted Provisions:
11          This bill:
12          ▸     changes where fees for registration, licensing, and inspection of radiation sources
13     are to be deposited;
14          ▸     clarifies the revenue sources of the Hazardous Substances Mitigation Fund;
15          ▸     changes where fees for registration of waste tire transporters and recyclers are to be
16     deposited; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          This bill provides a special effective date.
22     Utah Code Sections Affected:
23     AMENDS:
24          19-1-108, as last amended by Laws of Utah 2018, Chapter 241
25          19-3-104, as last amended by Laws of Utah 2017, Chapter 360
26          19-6-307, as last amended by Laws of Utah 2018, Chapter 241
27          19-6-807, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 20
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 19-1-108 is amended to read:
31          19-1-108. Environmental Quality Restricted Account.
32          (1) There is created the Environmental Quality Restricted Account.
33          (2) The sources of money for the [restricted account] Environmental Quality Restricted
34     Account are:
35          (a) radioactive waste disposal fees collected under Sections 19-3-106 and 19-3-106.4
36     and other fees collected under Subsection 19-3-104(5) or 19-3-104(6);
37          (b) hazardous waste disposal fees collected under Section 19-6-118;
38          (c) PCB waste disposal fees collected under Section 19-6-118.5;
39          (d) nonhazardous solid waste disposal fees collected under Section 19-6-119; and
40          (e) the investment income derived from money in the Environmental Quality
41     Restricted Account.
42          (3) In each fiscal year the balance of the money collected from the waste disposal fees
43     listed in Subsection (2), collectively, shall be deposited [in] into the Environmental Quality
44     Restricted Account.
45          (4) The Legislature may annually appropriate money from the Environmental Quality
46     Restricted Account to the department for the costs of administering:
47          (a) radiation control programs; and
48          (b) solid and hazardous waste programs.
49          (5) Each fiscal year beginning on or after July 1, 2018, and ending on or before June
50     30, 2022, the Division of Finance shall transfer $200,000 from the Environmental Quality
51     Restricted Account to the Hazardous Substances Mitigation Fund, to provide money to:
52          (a) meet the state's cost share requirements for cleanup under the Comprehensive
53     Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Sec. 9601 et seq.
54     as amended; and
55          (b) respond to an emergency as provided in Section 19-6-309.
56          (6) After the requirements of Subsection (3) are met, sources of money for the
57     [restricted account] Environmental Quality Restricted Account described in Subsection (2)(a)
58     may only be used for the purpose described in Subsection (4)(a).
59          (7) [In order to] To stabilize funding for the radiation control [program] programs and
60     the solid and hazardous waste [program] programs, the Legislature shall in years of excess
61     revenues reserve in the Environmental Quality Restricted Account sufficient money to meet
62     departmental needs in years of projected shortages.
63          (8) The Legislature may not appropriate money from the General Fund to the
64     department as a supplemental appropriation to cover the costs of the radiation control
65     [program] programs and the solid and hazardous waste [program] programs in an amount
66     exceeding 25% of the amount of waste disposal fees collected during the most recent prior
67     fiscal year.
68          (9) Money appropriated under this part that is not expended at the end of the fiscal year
69     lapses into the Environmental Quality Restricted Account.
70          (10) (a) The balance in the Environmental Quality Restricted Account may not exceed
71     $4,000,000 above the anticipated revenue need for the money in the [restricted account]
72     Environmental Quality Restricted Account for the fiscal year.
73          (b) Excess funds under Subsection (10)(a) shall be credited on a proportionate basis to
74     each person who paid money to the [fund] Environmental Quality Restricted Account in the
75     previous fiscal year.
76          Section 2. Section 19-3-104 is amended to read:
77          19-3-104. Registration and licensing of radiation sources by department --
78     Assessment of fees -- Rulemaking authority and procedure -- Siting criteria -- Indirect
79     and direct costs.
80          (1) As used in this section:
81          (a) "Decommissioning" includes financial assurance.
82          (b) "Source material" and "byproduct material" mean the same as those terms are
83     defined in the Atomic Energy Act of 1954, 42 U.S.C. Sec. 2014, as amended.
84          (2) The division may require the registration or licensing of radiation sources that
85     constitute a significant health hazard.
86          (3) [All sources] A source of ionizing radiation, including an ionizing radiation
87     producing [machines] machine, shall be registered or licensed by the department.
88          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
89     board may make rules:
90          (a) necessary for controlling exposure to sources of radiation that constitute a
91     significant health hazard;
92          (b) to meet the requirements of federal law relating to radiation control to ensure the
93     radiation control [program] programs under this part [is] are qualified to maintain primacy
94     from the federal government;
95          (c) to establish certification procedure and qualifications for persons who survey
96     mammography equipment and oversee quality assurance practices at mammography facilities;
97     and
98          (d) as necessary regarding the possession, use, transfer, or delivery of source and
99     byproduct material and the disposal of byproduct material to establish requirements for:
100          (i) the licensing, operation, decontamination, and decommissioning, including financial
101     assurances; and
102          (ii) the reclamation of sites, structures, and equipment used in conjunction with the
103     activities described in this Subsection (4).
104          (5) (a) On and after January 1, 2003, a fee is imposed for the regulation of source and
105     byproduct material and the disposal of byproduct material at uranium mills or commercial
106     waste facilities, as provided in this Subsection (5).
107          [(b) On and after January 1, 2003, through March 30, 2003:]
108          [(i) $6,667 per month for uranium mills or commercial sites disposing of or
109     reprocessing byproduct material; and]
110          [(ii) $4,167 per month for those uranium mills the director has determined are on
111     standby status.]
112          [(c) On and after March 31, 2003, through June 30, 2003, the same fees as in
113     Subsection (5)(b) apply, but only if the federal Nuclear Regulatory Commission grants to Utah
114     an amendment for agreement state status for uranium recovery regulation on or before March
115     30, 2003.]
116          [(d)] (b) If the Nuclear Regulatory Commission does not grant the amendment for state
117     agreement status on or before March 30, 2003, fees under Subsection (5)[(e)](c) do not apply
118     and are not required to be paid until on and after the later date of:
119          (i) October 1, 2003; or
120          (ii) the date the Nuclear Regulatory Commission grants to Utah an amendment for
121     agreement state status for uranium recovery regulation.
122          [(e)] (c) For the payment periods beginning on and after July 1, 2003, the department
123     shall establish the fees required under Subsection (5)(a) under Section 63J-1-504, subject to the
124     restrictions under Subsection (5)[(d)](b).
125          [(f)] (d) The division shall deposit fees [it] the division receives under this Subsection
126     (5) into the Environmental Quality Restricted Account created in Section 19-1-108.
127          (6) (a) The division shall assess fees for registration, licensing, and inspection of
128     radiation sources under this section.
129          (b) The division shall comply with the requirements of Section 63J-1-504 in assessing
130     fees for licensure and registration.
131          (c) The division shall deposit fees the division receives under this Subsection (6) into
132     the Environmental Quality Restricted Account created in Section 19-1-108.
133          (7) (a) Except as provided in Subsection (8), [and in accordance with Title 63G,
134     Chapter 3, Utah Administrative Rulemaking Act,] the board may not adopt rules, for the
135     purpose of the state assuming responsibilities from the United States Nuclear Regulatory
136     Commission with respect to regulation of sources of ionizing radiation, that are more stringent
137     than the corresponding federal regulations [which] that address the same circumstances.
138          (b) In adopting [those] rules, in accordance with Title 63G, Chapter 3, Utah
139     Administrative Rulemaking Act, the board may incorporate corresponding federal regulations
140     by reference.
141          (8) (a) The board may adopt rules, in accordance with Title 63G, Chapter 3, Utah
142     Administrative Rulemaking Act, that are more stringent than corresponding federal regulations
143     for the purpose described in Subsection (7) only if [it] the board makes a written finding after
144     public comment and hearing and based on evidence in the record that corresponding federal
145     regulations are not adequate to protect public health and the environment of the state.
146          (b) [Those] The findings described in Subsection (8)(a) shall be accompanied by an
147     opinion referring to and evaluating the public health and environmental information and studies
148     contained in the record [which] that form the basis for the board's conclusion.
149          (9) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
150     the board shall by rule:
151          (i) authorize independent qualified experts to conduct inspections required under this
152     chapter of x-ray facilities registered with the division; and
153          (ii) establish qualifications and certification procedures necessary for independent
154     experts to conduct [these] the inspections described in Subsection (9)(a)(i).
155          (b) Independent experts under this Subsection (9) are not considered employees or
156     representatives of the division or the state when conducting the inspections.
157          (10) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
158     Act, the board may by rule establish criteria for siting commercial low-level radioactive waste
159     treatment or disposal facilities, subject to the prohibition imposed by Section 19-3-103.7.
160          (b) Subject to Subsection 19-3-105(10), any facility under Subsection (10)(a) for which
161     a radioactive material license is required by this section shall comply with [those] criteria
162     established under this Subsection (10).
163          (c) Subject to Subsection 19-3-105(10), a facility may not receive a radioactive
164     material license until siting criteria have been established by the board. The criteria also apply
165     to facilities that have applied for but not received a radioactive material license.
166          (11) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
167     the board shall make rules that:
168          (a) establish financial assurance requirements for closure and postclosure care of
169     radioactive waste land disposal facilities; and
170          (b) establish financial assurance requirements for closure and postclosure care of an
171     unlicensed facility.
172          (12) The rules described in Subsection (11) shall include the following provisions:
173          (a) the financial assurance shall be based on an annual estimate and shall include
174     closure and postclosure costs in [all] areas subject to the licensed or permitted portions of the
175     facility;
176          (b) financial assurance for an unlicensed facility that supports the operation of a
177     licensed or permitted facility shall include the estimated cost of:
178          (i) the removal of structures;
179          (ii) the testing of structures, roads, and property to ensure no radiological
180     contamination has occurred outside of the licensed area; and
181          (iii) stabilization and water infiltration control;
182          (c) financial assurance cost estimates for a single approved waste disposal unit for
183     which the volume of waste already placed and proposed to be placed in the unit within the
184     surety period is less than the full waste capacity of the unit shall reflect the closure and
185     postclosure costs for a waste disposal unit smaller than the approved waste disposal unit, if the
186     unit could be reduced in size, meet closure requirements, and reduce closure costs;
187          (d) financial assurance cost estimates for two approved adjacent waste disposal units
188     that have been approved to be combined into a single unit and for which the combined volume
189     of waste already placed and proposed to be placed in the units within the surety period is less
190     than the combined waste capacity for the two separate units shall reflect either two separate
191     waste disposal units or a single combined unit, whichever has the lowest closure and
192     postclosure costs;
193          (e) the licensee or permittee shall annually propose closure and postclosure costs upon
194     which financial assurance amounts are based, including costs of potential remediation at the
195     licensed or permitted facility and, notwithstanding the obligations described in Subsection
196     (12)(b), any unlicensed facility;
197          (f) to provide the information in Subsection (12)(e), the licensee or permittee shall
198     provide:
199          (i) a proposed annual cost estimate using the current edition of RS Means Facilities
200     Construction Cost Data or using a process, including an indirect cost multiplier, previously
201     agreed to between the licensee or permittee and the director; or
202          (ii) (A) for an initial financial assurance determination and for each financial assurance
203     determination every five years thereafter, a proposed competitive site-specific estimate for
204     closure and postclosure care of the facility at least once every five years; and
205          (B) for each year between a financial assurance determination described in Subsection
206     (12)(f)(ii)(A), a proposed financial assurance estimate that accounts for current site conditions
207     and that includes an annual inflation adjustment to the financial assurance determination using
208     the Gross Domestic Product Implicit Price Deflator of the Bureau of Economic Analysis,
209     United States Department of Commerce, calculated by dividing the latest annual deflator by the
210     deflator for the previous year; and
211          (g) the director shall:
212          (i) annually review the licensee's or permittee's proposed closure and postclosure
213     estimate; and
214          (ii) approve the estimate if the director determines that the estimate would be sufficient
215     to provide for closure and postclosure costs.
216          (13) Subject to the financial assurance requirements described in Subsections (11) and
217     (12), if the director and the licensee or permittee do not agree on a final financial assurance
218     determination made by the director, the licensee or permittee may appeal the determination in:
219          (a) an arbitration proceeding governed by Title 78B, Chapter 11, Utah Uniform
220     Arbitration Act, with the costs of the arbitration to be split equally between the licensee or
221     permittee and the division, if both the licensee or permittee and the director agree in writing to
222     arbitration; or
223          (b) a special adjudicative proceeding under Section 19-1-301.5.
224          Section 3. Section 19-6-307 is amended to read:
225          19-6-307. Hazardous Substances Mitigation Fund.
226          (1) There is created an expendable special revenue fund entitled the "Hazardous
227     Substances Mitigation Fund."
228          (2) The fund consists of money generated from the following revenue sources:
229          (a) any voluntary contributions received for the cleanup of hazardous substances
230     facilities;
231          (b) appropriations made to the fund by the Legislature;
232          (c) money received by the state under Section 19-6-310 and [Section] 19-6-316; and
233          (d) money from [waste disposal fees, as described in Section] the Environmental
234     Quality Restricted Account in accordance with Subsection 19-1-108(5).
235          (3) (a) The fund shall earn interest.
236          (b) [All interest] Interest earned on fund money shall be deposited into the fund.
237          (4) The executive director may use fund money to:
238          (a) take emergency action as provided in Sections 19-6-309 and 19-6-310;
239          (b) conduct remedial investigations as provided in Sections 19-6-314 through
240     19-6-316;
241          (c) pay the amount required by the federal government as the state's portion of the cost
242     of cleanups under authority of CERCLA, as appropriated by the Legislature for that purpose;
243     and
244          (d) pay the amount required by the federal government as the state's portion of the cost
245     of cleanups under 42 U.S.C. Sec. 6991 et seq., the Leaking Underground Storage Tank Trust
246     Fund, as appropriated by the Legislature for that purpose.
247          Section 4. Section 19-6-807 is amended to read:
248          19-6-807. Waste Tire Recycling Fund.
249          (1) There is created an expendable special revenue fund entitled the "Waste Tire
250     Recycling Fund."
251          (2) The fund shall consist of:
252          (a) the proceeds of [the] Ĥ→ :
252a          (i) ←Ĥ a fee imposed under Section 19-6-805 Ĥ→ [or] ; and
252b          (ii) a fee imposed under Section ←Ĥ 19-6-806; and
253          (b) penalties collected under this part.
254          (3) Money in the fund shall be used for:
255          (a) partial reimbursement of the costs of transporting, processing, recycling, or
256     disposing of waste tires as provided in this part; and
257          (b) payment of administrative costs of local health departments as provided in Section
258     19-6-817.
259          (4) The Legislature may appropriate money from the fund to pay for:
260          (a) the costs of the Department of Environmental Quality in administering and
261     enforcing this part; and
262          (b) other operational costs of the Department of Environmental Quality, if the
263     Legislature estimates there is a deficit in the Department of Environmental Quality's budget for
264     the current or next fiscal year.
265          Section 5. Effective date.
266          This bill takes effect on July 1, 2022.