SENATE COMMITTEE ON

AGRICULTURE AND NATURAL RESOURCES

 

February 28, 2003                                                                                                   Hearing Room B

8:30                                                                                                                                 Tapes 27-28

 

MEMBERS PRESENT:         Sen. Frank Shields, Chair

Sen. Roger Beyer, Vice-Chair

Sen. Bill Fisher

Sen. Tony Corcoran

 

STAFF PRESENT:                 Judith Callens, Committee Administrator

Megan Jensen, Committee Assistant

 

MEASURE/ISSUES HEARD:           SB 196 Public Hearing

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 27, A

005

Chair Shields

Calls meeting to order at 10:00 a.m. and opens public hearing on SB 196.

SB 196 – Public Hearing

010

Judith Callens

Committee Administrator. Gives overview of SB 196 and -1 amendments.

042

Sen. Beyer

Inquires how SB 196 can have no revenue impact if it raises fees.

044

Callens

Explains that the fees are dedicated to the technical assistance program and offers to research the issue.

060

Dick Pedersen

Department of Environmental Quality (DEQ). Provides testimony in support of SB 196 (EXHIBIT A):

  • Support DEQ’s business assistance program authorized by the Environmental Protection Agency (EPA)
  • Create a one-time fee to obtain a new hazardous waste identification number
  • Create Hazardous Waste Compliance Assistance Fund
  • Increase the hazardous waste tonnage fee and the fee cap

120

Pedersen

States that DEQ needs adequate funding to maintain the authorization to implement the federal hazardous waste law. Believes that without a fee increase, DEQ will potentially lose its business assistance program.

190

Sen. Shields

Asks for clarification on how EPA would manage the business assistance program.

205

Pedersen

Responds that DEQ has established a good partnership with local businesses while EPA is not locally based.

226

Sen. Fisher

Asks about how much waste remains hazardous after processing.

242

Pedersen

Offers to research the issue.

260

Dave Barrows

Chemical Waste Management. Provides testimony in support of SB 196. Explains that having the hazardous wastes program adequately funded is critical because it permits the program to be delegated to DEQ.

297

Don Haagenson

Chemical Waste Management Attorney. Provides testimony in support of SB 196. Explains why DEQ should manage the program instead of EPA.

357

Sen. Fisher

Asks if a metric ton is heavier than a regular ton.

370

Haagenson

Affirms.

374

Sen. Fisher

Asks about fee limits.

384

Haagenson

Explains the fee process.

TAPE 28, A

027

Chair Shields

Comments that generating waste is an unavoidable byproduct of industry.

033

Haagenson

Agrees.

042

Sen. Fisher

Reiterates the concern that small businesses might end up paying a larger share of fees than big businesses under the SB 196 fee schedule.

060

Haagenson

Discusses working with businesses to reduce hazardous wastes.

080

Sen. Fisher

Inquires if businesses are not required to pay fees on hazardous wastes that can be recycled.

084

Haagenson

Affirms.

103

Sen. Beyer

Asks how a bill that raises fees would not have a revenue impact.

107

Mazen Malik

Legislative Revenue Office. Explains that the bill imposes fees and should by definition offset costs.

120

Chair Shields

Inquires if fees always cover costs.

127

Basil

Explains that by definition, fees should offset costs as opposed to a tax or a penalty.

136

Sen. Beyer

Asks why the fee needs to be in statute.

142

Bob Danko

DEQ. Explains that the fee is an administrative rule and it would be beneficial to have it as statute.

152

Sen. Beyer

Asks about the budget for the Hazardous Waste program.

156

Danko

Defers to Dick Pedersen.

161

Sen. Beyer

Asks for clarification.

163

Danko

Responds that there would be no fee on waste water that goes through a sewage treatment plan and explains how fee calculations apply to hazardous wastes.

180

Sen. Beyer

States that historically the aluminum industry generated most of the waste and asks how the fee plan will be affected.

188

Pedersen

Explains the fee plan.

206

Sen. Beyer

Inquires about the program budget.

208

Pedersen

Replies that the overall budget is $10 million dollars a biennium.

220

John Ledger

Association of Oregon Industries. Provides testimony in support of SB 196. States that AOI supports the state taking over the program. Discusses concerns about the use of penalty money in the general fund.

304

Chair Shields

Asks about AOI’s participation in the work group for SB 196.

321

Ledger

Describes AOI’s participation in the work group.

357

Bill Linden

Oregon Metals Industry Council. Supports SB 196 but expresses concern over funding issues.

380

Chair Shields

Asks about other funding options.

405

Linden

Discusses funding options.

TAPE 27, B

005

Sen. Beyer

Asks if DEQ would have to get the fee increase approved during the next legislative session without this bill.

011

Callens

Explains that the legislature must approve any kind of fee increase regardless of whether it is an administrative rule or in statute.

015

Sen. Beyer

Comments on putting the fee into statute.

020

Danko

Explains the procedure for making administrative rule.

031

Sen. Corcoran

Asks if Oregon Metals Industry Council participated in the work group.

034

Linden

Replies that Schnitzer Steel participated in the work group.

036

Sen. Corcoran

Comments that Ways and Means will make the final decision.

050

Linden

Replies that the Oregon Metals Industry Council has suggestions for alternative funding sources.

058

Sen. Beyer

Recommends that any amendments should not be adopted until  Ways and Means has reviewed the bill.

065

Sen. Fisher

Suggests DEQ might benefit from streamlining.

090

Tom Gallagher

Schnitzer Group. Expresses concerns about DEQ funding issues.

165

Sen. Fisher

Comments that government agencies can do more streamlining similar to private industry.

182

Gallagher

Suggests SB 196 needs another work group.

242

Matt Blevins

Oregon Environmental Council. Provides testimony in support of SB 196 (EXHIBIT B). Believes that SB 196 will provide essential funding for DEQ’s hazardous waste programs.

333

Dan Opalski

U.S. Environmental Protection Agency. Provides testimony in support of SB 196 (EXHIBIT C) but expresses concern about EPA participation in DEQ hazardous wastes programs.

406

Sen. Beyer

Inquires about the amount of federal funds EPA provides to Oregon DEQ.

408

Opalski

Replies that EPA provides about $700,000 per biennium.

410

Sen. Beyer

Asks if there will be $700,000 less spent in Oregon if the DEQ program is no longer supported by EPA.

412

Opalski

Explains EPA operating procedures.

TAPE 28, B

010

Sen. Beyer

Comments that EPA should fund state control over the hazardous waste program.

025

Opalski

Remarks on funding the program.

038

Chair Shields

Asks how EPA operates programs in other states.

042

Opalski

Offers to research that information.

050

Sen. Fisher

Asks about other states’ fees for waste disposal per ton.

052

Opalski

Offers to research that information.

070

Sen. Fisher

Asks how many fines have been imposed in Oregon

080

Pedersen

Responds that hazardous wastes violations average 25 to 30 cases a year.

101

Rhett Lawrence

Oregon State Public Interest Research Group. Provides testimony in support of SB 196 (EXHIBHT D).

120

Kathryn VanNatta

Northwest Pulp and Paper Association. Provides testimony in support of SB 196. Talks about issues from the work group and discusses funding problems.

174

Chair Shields

Asks is she agrees that general funds will not apply to the fee program.

176

VanNatta

Comments on technical assistance programs and general funds.

198

Chair Shields

Suggests convening a work group for the bill before it goes to Ways and Means. Closes public hearing on SB 196 and adjourns meeting at 12:00 p.m.

 

EXHIBIT SUMMARY

 

A – SB 196, written testimony, Dick Pedersen, 8 pp.

B – SB 196, written testimony, Matt Blevins, 2 pp.

C – SB 196, written testimony, Dan Opalski, 2 pp.

D – SB 196, written testimony, Rhett Lawrence, 1 p.