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H.283

Introduced by Representative Deen of Westminster

Referred to Committee on

Date:

Subject: Conservation; solid waste; mercury-added products; advanced disposal fee

Statement of purpose: This bill proposes to require presorting of mercury-added products in any municipality that sends solid waste to certain municipal waste combustors. It also proposes to establish an advanced disposal fee on certain mercury-added products, to be collected from product wholesalers, with the proceeds to be deposited into the mercury reduction and management account, which the bill creates within the solid waste fund. The bill proposes to allow expenditures from the mercury reduction and management account for purposes of reimbursing municipalities for their mercury presorting and recycling programs.

AN ACT RELATING TO ESTABLISHING AN ADVANCED DISPOSAL FEE FOR CERTAIN MERCURY-ADDED PRODUCTS, AND FINANCING MUNICIPAL PRESORTING OF THOSE PRODUCTS WHEN DISCARDED

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 10 V.S.A. § 6605g is amended to read:

§ 6605g. INCINERATION EMISSIONS

(a) Findings. The general assembly finds that given the regional nature of weather patterns, the incineration of solid waste, whether from incinerators located inside the state or outside its borders, causes negative effects on the health and welfare of the people of the state, and on the state’s natural resources. Accordingly, it is in the public interest to require the use of the best required technology in incinerators, wherever located, if they are to receive solid waste from the state of Vermont, pursuant to new contracts or contract renewal for the disposal of solid waste.

(b) Best required technology requirement. To the extent consistent with federal law, no person shall enter a new contract or renew an existing contract for the incineration of solid waste produced within the state’s borders, at an incinerator, regardless of location, that fails to use the best technology currently required by federal law of any solid waste incinerator in the country, in reducing hazardous emissions from the incinerator.

(c) Presorting requirement. A program for the presorting of mercury-added products shall be developed by the secretary, and implemented in any municipality of the state which sends solid waste to a municipal waste combustor permitted prior to January 1, 2001, with a design capacity to burn less than 250 tons per day but not less than 100 tons per day of municipal solid waste; provided that municipal implementation of this program shall not be required of a municipality that is implementing a comparable program in compliance with the requirements of subsection 6621d(d) of this title. The secretary’s program shall be established with the purpose of reducing the release through incineration of mercury into the air, and shall be implemented so that no unsorted waste is transferred to the municipal waste combustor for incineration.

Sec. 2. 10 V.S.A. § 6621f is added to read:

§ 6621f. ADVANCED DISPOSAL FEE ON MERCURY-ADDED

PRODUCTS

An advanced disposal fee shall be imposed on mercury-added products as specified under section 6621d of this title, to be collected by the secretary from product wholesalers. The amount of the fee shall be eight percent of the wholesale market price of the product. The fee shall be assessed at the point of distribution. Products from manufacturers that have successful mercury reclamation or "take back" programs for mercury-added products shall be exempt from this advance disposal fee. The secretary shall adopt rules that establish the process for fee collection, and rules determining what is a successful mercury reclamation or "take back" program. As of January 1, 2004, the secretary shall begin collecting the advance disposal fee and depositing fees received to the mercury reduction and management account of the solid waste fund.

Sec. 3. 10 V.S.A. § 6618 is amended to read:

§ 6618. WASTE MANAGEMENT ASSISTANCE FUND

(a) There is hereby created in the state treasury a fund to be known as the waste management assistance fund, to be expended by the secretary of the agency of natural resources. The fund shall have *[two]* three accounts: one for solid waste management assistance *[and]*, one for hazardous waste management assistance, and one to reimburse municipalities for local mercury presorting and recycling programs. The hazardous waste management assistance account shall consist of a percentage of the tax on hazardous waste under the provisions of 32 V.S.A. chapter 237, as established by the secretary, the toxics use reduction fees under subsection 6628(j) of this title, and appropriations of the general assembly. In no event shall the amount of the hazardous waste tax which is deposited to the hazardous waste management assistance account exceed 40 percent of the annual tax receipts. The solid waste management assistance account shall consist of the franchise tax on waste facilities assessed under the provisions of 32 V.S.A. chapter 151, subchapter 13, and appropriations of the general assembly. The mercury reduction and management account shall consist of the advance disposal fee assessed on mercury-added products under the provisions of section 6621f of this title, and appropriations of the general assembly. All balances in the fund accounts at the end of any fiscal year shall be carried forward and remain a part of the fund accounts. Interest earned by the fund shall be deposited into the appropriate fund account. Disbursements from the fund accounts shall be made by the state treasurer on warrants drawn by the commissioner of finance and management.

(b) The secretary may authorize disbursements from the solid waste management assistance account for the purpose of enhancing solid waste management in the state in accordance with the adopted waste management plan. This includes:

(1) the costs of implementation planning, design, obtaining permits, construction and operation of state or regional facilities for the processing of recyclable materials and of waste materials that because of their nature or composition create particular or unique environmental, health, safety, or management problems at treatment or disposal facilities;

(2) the costs of assessing existing landfills, and eligible costs for closure and any necessary steps to protect public health at landfills certified or operating after December 31, 1979 and before January 1, 1987, provided those costs are the responsibility of the municipality or solid waste management district requesting assistance;

(3) the costs of preparing the state waste management plan;

(4) hazardous waste pilot projects consistent with this chapter;

(5) the costs of developing markets for recyclable material; and

(6) the costs of the agency of natural resources in administering solid waste management functions that may be supported by the fund established in subsection (a) of this section;

(7) the costs of administering the waste facility panel established under subchapter 5 of chapter 151 of this title;

(8) the costs, not related directly to capital construction projects, that are incurred by a district, or a municipality that is not a member of a district, in the design and permitting of implementation programs included in the adopted solid waste implementation plan of the district or of the municipality that is not a member of a district. These disbursements shall be issued in the form of advances requiring repayment. These advances shall bear interest at an annual rate equal to the interest rate which the state pays on its bonds. These advances shall be repaid in full by the grantee no later than 24 months after the advance is awarded.

(c) The secretary may authorize disbursements from the hazardous waste management assistance account for the purpose of enhancing hazardous waste management in the state in accordance with this chapter. This includes:

(1) The costs of supplementing the state waste management plan with respect to hazardous waste management.

(2) The costs of the agency of natural resources in administering hazardous waste management functions that may be supported by the fund established in subsection (a) of this section.

(3) The costs of administering the hazardous waste facility grant program under section 6603g of this title.

(d) The secretary shall annually allocate from the fund accounts the amounts to be disbursed for each of the functions described in subsections (b) *[and]*, (c), and (e) of this section. The secretary, in conformance with the priorities established in this chapter, shall establish a system of priorities within each function when the allocation is insufficient to provide funding for all eligible applicants.

(e) The secretary may authorize disbursements from the mercury reduction and management account in the form of grants to municipalities to reimburse them for local mercury presorting and recycling programs. The secretary shall adopt rules relative to priority among municipalities eligible to receive grants, and relative to eligibility requirements, with priority being given to municipalities regulated under section 6605g of this title, that send their solid waste to municipal waste combustors as specified under that section. Any other municipality may establish a mercury presorting program, in which case eligible costs may be reimbursed by the secretary, depending upon the availability of funds. Any municipality with a mercury presorting program already in effect may also be eligible for reimbursement of eligible costs. The secretary shall determine the eligible costs of any municipality implementing a mercury presorting program, and shall reimburse the eligible costs. As of January 1, 2005, the secretary shall begin making grants pursuant to this program. The secretary shall submit an annual report by September 1 of each year to the senate and house committees on natural resources and energy, relative to the activities of the advance disposal fee program and disbursements from the mercury reduction and management account.