Kentucky 2023 2023 Regular Session

Kentucky House Bill HB222 Introduced / Bill

                    UNOFFICIAL COPY  	23 RS BR 1060 
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AN ACT relating to the hazardous waste management fund. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
Section 1.   KRS 224.46-580 is amended to read as follows: 3 
(1) The General Assembly declares that it is the purpose of this section to promote the 4 
development of statewide programs, under the responsibility of a single agency, 5 
which are intended to protect the health of the citizens and the environment of the 6 
Commonwealth from present and future threats associated with the management of 7 
hazardous wastes and the release of toxic chemicals regulated under Title III, 8 
Section 313 of the Superfund Amendments and Reauthorization Act of 1986, 9 
including disposal, treatment, recycling, storage, and transportation. The intent of 10 
the General Assembly is to add to and coordinate, and not replace, existing efforts 11 
and responsibilities in the areas of hazardous waste management, toxic chemical 12 
manufacture, processing, or other use, and to leave the primary burden and 13 
responsibility for hazardous waste and toxic chemical reduction on private industry; 14 
and further to finance assistance and coordination by imposing assessments on the 15 
generation of hazardous waste. The assessments are intended to produce a reduction 16 
in waste generated; to promote the use of new techniques in recycling, treatment, 17 
and alternatives other than land disposal; and to place the burden of financing 18 
additional hazardous waste management activities necessarily undertaken by state 19 
agencies on the users of those products associated with the generation of hazardous 20 
waste. The General Assembly further finds that Kentucky's industries need 21 
assistance in developing and implementing pollution prevention goals and that a 22 
fund should be established to provide technical and financial assistance to those 23 
industries. 24 
(2) The Energy and Environment Cabinet is given the authority to administer the 25 
provisions and programs of this section and the responsibility to achieve the 26 
purposes of this section. 27  UNOFFICIAL COPY  	23 RS BR 1060 
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(3) In addition to all specific responsibilities contained elsewhere in this chapter, the 1 
cabinet shall: 2 
(a) Respond effectively and in a timely manner to emergencies created by the 3 
release of hazardous substances, as defined in KRS 224.1-400, into the 4 
environment. The cabinet shall provide for adequate containment and removal 5 
of the hazardous substances in order that the threat of a release or actual 6 
release of the substance may be abated and resultant harm to the environment 7 
minimized. The provisions of KRS 45A.695 to 45A.725 may be suspended by 8 
the cabinet if necessary to respond to an environmental emergency;[.] 9 
(b) Provide for post-closure monitoring and maintenance of hazardous waste 10 
disposal sites upon termination of post-closure monitoring and maintenance 11 
responsibilities by persons permitted to operate the facility pursuant to this 12 
chapter; and[.] 13 
(c) Identify, investigate, classify, contain, or clean up any release, threatened 14 
release, or disposal of a hazardous substance where responsible parties are 15 
economically or otherwise unavailable to properly address the problem and 16 
the problem represents an imminent danger to the health of the citizens and 17 
the environment of the Commonwealth. 18 
(4) The cabinet shall have the authority to finance the nonfederal share of the cost for 19 
clean up of sites under the Comprehensive Environmental Response, Compensation 20 
and Liability Act of 1980 (Pub. L. 96-510). 21 
(5) The cabinet shall recover, when possible, actual and necessary expenditures 22 
incurred in carrying out the duties under this section. Any expenditures recovered 23 
shall be placed in the hazardous waste management fund. 24 
(6) It is the expressed purpose of this section to accomplish effective hazardous waste 25 
and toxic chemical management that results in a reduction of the generation of 26 
hazardous wastes and the release of toxic chemicals within the Commonwealth; 27  UNOFFICIAL COPY  	23 RS BR 1060 
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further, it is a purpose of this chapter to allocate a portion of the cost of 1 
administering necessary governmental programs related to hazardous waste and 2 
toxic chemical management to those industries whose products are reasonably 3 
related to the generation of hazardous waste. 4 
(7) There is hereby imposed upon every person engaged within this state in the 5 
generation of hazardous waste an annual hazardous waste assessment to be 6 
determined pursuant to this section according to the quantity by weight of 7 
hazardous waste generated, except that no assessment shall be levied against 8 
generators for any quantity of "special wastes," waste oil, or spent material from air 9 
pollution control devices controlling emissions from coke manufacturing facilities. 10 
The assessment shall not be imposed upon any person for any quantities of 11 
hazardous waste generated by others for which that person is a secondary handler 12 
that stores, processes, or reclaims the waste. The assessment shall be reported and 13 
paid to the Energy and Environment Cabinet for the generation of hazardous waste 14 
on an annual basis on January 1 of each year. The payment shall be accompanied by 15 
a report or return in a form that the cabinet may prescribe. If a federal law is 16 
enacted which accomplishes or purports to accomplish the purposes set forth in this 17 
section and which levies an assessment or tax upon any business assessed pursuant 18 
to this section, the amount of the assessment to be levied upon the business under 19 
this section shall be reduced by the amount of the federal assessment or tax upon 20 
the business. The reduction shall only be authorized when funds raised by the 21 
federal assessment or tax are made available to the state for any of the activities to 22 
be funded under this section. If federal moneys are available to carry out the duties 23 
imposed by subsection (3) of this section, the assessment shall cease to be levied 24 
and collected until such time as federal moneys are no longer available to the 25 
Commonwealth for these purposes. The assessment shall be charged against 26 
generators of hazardous waste until June 30, 2032[2024]. After this date, no further 27  UNOFFICIAL COPY  	23 RS BR 1060 
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hazardous waste management assessment shall be charged against generators. The 1 
hazardous waste assessment shall be waived for any generator owing less than fifty 2 
dollars ($50) for the year. However, a return must be filed by generators to whom a 3 
payment waiver applies. 4 
(8) The assessment on generators shall be one and two-tenths cents ($0.012) per pound 5 
if the waste is liquid, or two-tenths of a cent ($0.002) per pound if the waste is 6 
solid. 7 
(a) Hazardous waste that is injected into a permitted underground injection well 8 
shall be assessed on a dry weight basis; 9 
(b) Hazardous waste treated, detoxified, solidified, neutralized, recycled, 10 
incinerated, or disposed of on-site shall be assessed at one-half (1/2) of the 11 
appropriate rate, except for recycled waste used in the steel manufacturing 12 
process which shall be exempt; 13 
(c) Waste that is subject to regulation under Section 402 or 307B of the Federal 14 
Clean Water Act shall be exempt; 15 
(d) Emission control dust and sludge from the primary production of steel that is 16 
recycled by high temperature metals recovery or managed by stabilization of 17 
metals shall be exempt; and 18 
(e) Waste that is delivered from the generator to an on-site or off-site industrial 19 
boiler or furnace and burned for energy recovery in accordance with state and 20 
federal laws and regulations shall be assessed at one-half (1/2) of the 21 
appropriate rate. 22 
(9) Except for waste brought into the state by a company to an affiliated manufacturing 23 
facility of the company receiving the waste, any person who transports hazardous 24 
waste into the state for land disposal or treatment which is generated outside of the 25 
state shall pay an assessment to the hazardous waste facility which first receives the 26 
waste for storage, treatment, or land disposal. The assessment rate shall be identical 27  UNOFFICIAL COPY  	23 RS BR 1060 
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to the rate described in subsection (8) of this section. The facility shall remit the 1 
assessment to the cabinet on an annual basis on January 1 of each year. The 2 
payment shall be accompanied by a return the cabinet shall prescribe. 3 
(10) If any generator or hazardous waste facility subject to the provisions of subsection 4 
(8) or (9) of this section fails or refuses to file a return or furnish any information 5 
requested in writing by the cabinet, the cabinet may, from any information in its 6 
possession, make an estimate and issue an assessment against the generator or 7 
hazardous waste facility and add a penalty of ten percent (10%) of the amount of 8 
the assessment so determined. This penalty shall be in addition to all other 9 
applicable penalties in this chapter. 10 
(11) If any generator or hazardous waste facility subject to the provisions of subsection 11 
(8) or (9) of this section fails to make and file a return required by this chapter on or 12 
before the due date of the return or the due date as extended by the cabinet, unless it 13 
is shown to the satisfaction of the cabinet[,] that the failure is due to reasonable 14 
cause, five percent (5%) of the assessment found to be due by the cabinet shall be 15 
added to the assessment for each thirty (30) days or fraction thereof elapsing 16 
between the due date of the return and the date on which it is filed, but the total 17 
penalty shall not exceed twenty-five percent (25%) of the assessment. 18 
(12) If the assessment imposed by this chapter, whether assessed by the cabinet[,] or the 19 
generator, or any installment or portion of the assessment is not paid on or before 20 
the date prescribed for its payment, there shall be collected, as a part of the 21 
assessment, interest upon the unpaid amount at the rate of eight percent (8%) per 22 
annum from the date prescribed for its payment until payment is actually made to 23 
the cabinet. 24 
(13) (a) There is hereby created within the State Treasury a trust and agency fund, 25 
which shall not lapse, to be known as the hazardous waste management fund. 26 
The fund shall be deposited in an interest-bearing account. The cabinet shall 27  UNOFFICIAL COPY  	23 RS BR 1060 
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be responsible for collecting and receiving funds as provided in this section[,] 1 
and all such assessments collected or received by the State Treasury shall be 2 
deposited in the hazardous waste management fund. All interest earned on the 3 
money deposited in the fund shall be deposited to the fund. When the State 4 
Treasurer certifies to the cabinet that the uncommitted balance of the 5 
hazardous waste management fund exceeds six million dollars ($6,000,000), 6 
assessments shall not be collected until the State Treasurer certifies to the 7 
cabinet that the balance in the hazardous waste management fund is less than 8 
three million dollars ($3,000,000). The implementation of the cap on the fund 9 
shall be suspended from July 13, 1990, until July 1, 1991. In addition, for 10 
assessments paid after July 1, 1991, the cabinet shall refund or grant a credit 11 
against the next assessment to come due, on a pro-rated basis, any money 12 
collected in one (1) year in excess of the cap. 13 
(b) In any fiscal year in which the fees assessed under this section total less than 14 
one million eight hundred thousand dollars ($1,800,000) in fiscal year 2007-15 
2008 dollars, adjusted annually to reflect any increase in the cost-of-living 16 
index, the difference between the fee receipts and the adjusted minimum 17 
balance shall be transferred from funds collected pursuant to KRS 224.60-18 
130. 19 
(c) The cabinet shall file with the Legislative Research Commission a biennial 20 
report, beginning two (2) years after July 15, 2008, on the revenues and 21 
expenditures of the fund. 22 
(14) There is hereby created within the State Treasury a trust and agency account, which 23 
shall not lapse, to be known as the pollution prevention fund. The fund shall be 24 
placed in an interest-bearing account. The fund shall be administered by the Center 25 
for Pollution Prevention. The cabinet shall remit to the fund each fiscal year twenty 26 
percent (20%) of the funds received by the hazardous waste management fund 27  UNOFFICIAL COPY  	23 RS BR 1060 
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subject to the enacted budget bill. 1 
(15) Upon request of the secretary, moneys accumulated in the hazardous waste 2 
management fund shall be released in amounts necessary to accomplish the 3 
performance of the duties imposed by subsection (3) of this section. However, 4 
moneys from the fund shall not be used when federal moneys are available to carry 5 
out these duties, except when immediate action is required to protect public health 6 
or the environment, in which case the cabinet shall actively pursue reimbursement 7 
of the fund by any available federal moneys. 8 
(16) If any person responsible for a release or threatened release of a hazardous 9 
substance fails to take response actions or to make reasonable progress in 10 
completing response actions ordered by the cabinet, the cabinet may bring an action 11 
to compel performance or may take appropriate response actions and order the 12 
responsible person to reimburse the cabinet for the actual costs incurred by the 13 
cabinet. 14 
(17) If disposal activities have occurred at a hazardous waste site, the cabinet shall 15 
record, in the office of the county clerk in the county in which a waste site is 16 
situated, a notice containing a legal description of the property that discloses to any 17 
potential transferee that the land was used to dispose hazardous waste and that 18 
further information on the hazardous waste site may be obtained from the cabinet. 19 
(18) No person shall affect the integrity of the final cover, liners, or any other 20 
components of any containment system after closure of a hazardous waste site on or 21 
in which hazardous waste remains without prior written approval of the cabinet. 22