2014 -- H 7088

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LC003216

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO HEALTH AND SAFETY - RHODE ISLAND RESOURCE RECOVERY

CORPORATION

     Introduced By: Representatives Ucci, Fellela, Carnevale, and Costantino

     Date Introduced: January 15, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 23-19-13 of the General Laws in Chapter 23-19 entitled "Rhode

Island Resource Recovery Corporation" is hereby amended to read as follows:

     23-19-13. Municipal participation in state program. -- (a) (1) Any person or

municipality which intends to transfer, treat, or dispose of solid waste originating or collected

within the state, or which intends to make arrangements to do so, shall utilize, exclusively, a

system or facility designated by the corporation as provided under this chapter. All transfer

stations in existence as of December 1, 1986 are empowered so long as they maintain the

appropriate license to continue their operations, and the corporation shall not exercise its powers

under this chapter to compete with their operation and activity. No municipality shall have power

to engage in, grant any license, or permit for or enter into any contract for the collection,

treatment, transportation, storage, or disposal of solid waste, and no municipality or any person

shall engage in any activities within the state, including disposal of solid waste, which would

impair the ability of the corporation to meet its contractual obligations to its bondholders and

others, or which would be in competition with the purposes of the corporation as provided in this

chapter. The corporation shall not be empowered to engage in the transportation, transfer, or

storage of solid waste, except in temporary situations where a municipality has defaulted in its

obligation under this section, or in conjunction with its activities at its disposal sites. Provided,

however, that municipal contracts which were in existence on March 1, 1985, are excepted from

this requirement until expiration of the original term of the contract or the expiration of any

extension approved by the corporation, or sooner termination of the contracts, and provided,

further, that municipalities operating their own landfills on December 1, 1986 shall be free to

continue to use the landfills until closure of the landfills. Without limiting the generality of the

preceding, municipalities and persons are expressly empowered to contract with the corporation

and/or, subject to the approval of the corporation, with a duly licensed private disposal facility for

the disposal of solid wastes. The approval shall be conditioned upon a finding by the board of

commissioners of the corporation that any proposed contract with a Rhode Island municipality or

person is in conformity with the statewide resource recovery system development plan and this

chapter, and that the proposed contract will not impair the ability of the corporation to meet its

contractual obligations to its bondholders and others. The contracts may have a maximum total

term, including all renewals, of up to fifty (50) years.

      (2) The corporation shall charge fees for its solid waste management services that,

together with other revenues available to the corporation, will, at a minimum, be sufficient to

provide for the support of the corporation and its operations on a self-sustaining basis, including

debt service on its bonds and other obligations.

      (b) Insofar as the provisions of this chapter are inconsistent with the provisions of any

other laws of this state, general, special, or local, restricting the power of any municipality to

enter into long term contracts with the corporation, the provisions of this chapter shall be

controlling. The corporation shall provide suitable and appropriate assistance to communities

under these circumstances. Notwithstanding the preceding, if the corporation deems it desirable,

it may from time to time permit municipalities to contract among themselves for the disposal of

their wastes.

      (c) Municipalities, along with private producers of waste which contract with the

corporation for disposal of their wastes, shall continue to be free to make their own arrangements

for collection of wastes at the source and/or the hauling of wastes to the designated processing

and/or transfer stations, so long as those arrangements are in compliance with the provisions of

chapter 18.9 of this title and with this chapter, and any municipal license relating thereto.

      (d) All municipalities and state agencies which are participants in the state waste

disposal program shall initiate a separation and recycling program within one year after the date

on which the resource recovery facility utilized by that municipality or agency is operational and

accepting waste for incineration.

      (e) (1) The corporation and any municipality may enter into a contract or contracts

providing for or relating to the disposal of solid waste originating in the municipality and the cost

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and expense of the disposal.

      (2) The contract may be made with or without consideration and for a specified or

unspecified time not to exceed fifty (50) years, and on any terms and conditions which may be

approved by the municipality and which may be agreed to by the corporation in conformity with

its contracts with the holders of any bonds or other obligations. Subject to the contracts with the

holders of bonds, the municipality is authorized and directed to do and perform any and all acts or

things necessary, convenient, or desirable to carry out and perform the contract and to provide for

the payment or discharge of any obligation under the contract in the same manner as other

obligations of the municipality.

      (3) All municipalities that contract with the corporation for the disposal of solid waste

shall prepare as an addendum to its fiscal year 2010 contract with the corporation and any

contracts with the corporation for the subsequent years a plan that includes a description of the

process by which thirty-five percent (35%) of its solid waste will be recycled and fifty percent

(50%) of its solid waste will be diverted beginning July 1, 2012 July 1, 2014. This addendum

shall include a residential and municipal waste stream evaluation, a plan for the reduction of solid

waste and recyclables generated and the process by which recyclable materials are to be

segregated. The corporation shall have the right to execute or deny execution of the municipal

solid waste and recycling services contract pending approval of the addendum. Once the

corporation approves this addendum, the municipality must implement the plan and report on the

results annually to the corporation. The corporation shall enforce the provisions of this section

pursuant to subdivision 23-19-13(g)(3).

      (4) The corporation shall notify every city or town that it contracts with as to the

addendum requirements that must be included in contracts to recycle thirty-five percent (35%)

and divert fifty percent (50%) of solid waste beginning July 1, 2012.

      (f) The municipalities and the state have shared responsibility for the payment of the cost

of municipal solid waste disposal. The state will pay its share of the cost of the solid waste

disposal services to be provided by the corporation to the municipalities at its solid waste

management facilities and its central landfill in the town of Johnston, and at any back-up facility

which the corporation is required to provide, by providing solid waste disposal operating

subsidies as provided in subsections (i) and (j).

      (g) (1) The corporation shall charge each municipality with which it has a long-term

contract for solid waste disposal services a tipping fee per ton of source separated solid waste

excluding separated recyclable materials, sludge, and demolition debris delivered to any

corporation facility computed in accordance with this subsection. For purposes of this chapter,

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"fiscal year" shall mean the twelve-month period, July 1 to June 30. The municipal tipping fee

shall be equal to one hundred seven and one-half percent (107.5%) of the prior fiscal year's

municipal tipping fee through the end of the 2009 fiscal year. One dollar and ten cents ($1.10) per

ton on all garbage, including recycled garbage, collected by the corporation as tipping fee shall be

paid to the town of Johnston. In addition to any other fees the corporation shall also charge a

three dollar ($3.00) tipping fee per vehicle. Any vehicle carrying municipal solid waste shall be

exempt from this three dollar ($3.00) tipping fee. All fees collected shall be paid to the town of

Johnston on a biannual basis. Notwithstanding any provision of the general or public laws to the

contrary, and in addition to other sums paid to the town of Johnston, the corporation shall

annually pay to the town of Johnston the amount of six million dollars ($6,000,000). No tipping

fee shall be charged for recyclable materials delivered to a recycling facility provided by or

through the corporation.

      (2) Notwithstanding the provisions of subdivision (g)(1), the municipal tipping fee may

be increased, if, due to the commencement of operation of a new resource recovery facility during

the previous fiscal year, the state subsidy as calculated pursuant to subsection (i), not considering

landfill revenues and losses, is projected to be greater than the state subsidy projected by the

corporation and the department of administration when the projections were officially accepted

by the corporation on the basis of contracts entered into for the initial resource recovery facility.

The amount by which the projected state subsidy exceeds the original projections will be

apportioned between the state and the municipalities in the same ratio as the state subsidy for the

previous year divided by the number of tons of municipal solid waste processed by the

corporation bears to the municipal tipping fee for that year. The increased municipal tipping fee

herein provided shall be subject to the same escalation factor as the municipal tipping fee set forth

above.

      (3) The corporation shall establish in the contract, the maximum amount of municipal

solid waste that each municipality will be entitled to deliver to the corporation at the municipal

tipping fee. Solid waste in excess of the contract amount will be charged to the municipality at the

non-municipal rate. In determining the maximum amount of municipal solid waste which will

qualify for the municipal tipping fee, the corporation shall consider the municipality's solid waste

per capita average, the statewide solid waste per capita average, and any other factors that it shall

deem appropriate.

      (4) Seaweed collected and removed by a municipality shall be deemed "yard waste" for

purposes of this chapter and any rules, regulations and/or plans promulgated by the corporation

pursuant to this chapter, and shall be accepted by the corporation at the same rate and cost as all

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other municipal yard waste.

      (h) The corporation, after the initial resource recovery facility becomes operational, shall

charge each non-municipal user of its facilities a fee per ton equal to the projected annual

resource recovery system cost less energy revenues and interest earnings on bond reserve funds,

if any, divided by the projected tons to be processed by the corporation at its resource facilities

for the year. Landfill costs shall not be considered in the calculation unless landfill costs exceed

revenues generated at the landfills; in those cases, excess landfill costs will be added to the

system costs.

      (i) The annual state subsidy for the cost of disposal of municipal solid waste shall be

calculated for each fiscal year or portion of each fiscal year according to the following formula:

The annual state subsidy shall equal the total projected annual resource recovery system costs

(minus costs associated with the central landfill) for the next fiscal year less the sum of the

following: (1) projected resource recovery system revenues for the year; and (2) projected landfill

revenues; provided, however, that in the event that the landfill is projected to operate at a loss, the

amount of the loss shall be added to the subsidy.

      (j) (1) On or before October 1 of each year, the corporation shall submit a budget to the

director of administration for the succeeding fiscal year using actual resource recovery system

revenues and costs, and the audit of the preceding fiscal year prepared by the corporation's

independent auditors and accepted by the auditor general. On or before December 1 of each year,

the director of administration, in consultation with the corporation, shall review the budget of the

corporation and shall determine and certify the annual state subsidy for the succeeding fiscal year

to the governor who shall submit to the general assembly printed copies of a budget which shall

include the state subsidy as previously determined in this subsection. The state subsidy

appropriation shall be on a system basis but shall contain specific appropriations for each

resource recovery facility. If the amount appropriated exceeds the amount needed for a specific

facility, the corporation, with the approval of the director of administration, may reallocate the

appropriated but unadvanced funds to other corporation facilities or costs. If the audit prepared by

the corporation's independent auditors indicates that the amounts appropriated and disbursed to

the corporation as a subsidy were in excess of the amounts which would have been required for

the year if actual resource recovery system revenues and costs had been used in the calculation of

the subsidy, the excess shall be credited against the current fiscal year's subsidy.

      (2) At any time, if the corporation determines that the state subsidy will be insufficient to

discharge the corporation's obligations for the current fiscal year, it shall request, in writing, to

the director of administration for a supplemental appropriation. After review, the director of

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administration will recommend to the governor additional funding for the corporation, and the

governor after further review, shall submit a supplemental appropriation bill request for the funds

to the general assembly.

      (3) From the appropriations made by the general assembly, the state controller is

authorized and directed to draw his or her orders upon the general treasurer every month for the

payment of those sums that may be required upon receipt by him or her of properly authenticated

vouchers.

      (k) If, in any fiscal year, the appropriation for the state subsidy is not made and if the

corporation has insufficient other funds to discharge its obligations to holders of its bonds and

notes as certified by the state auditor general, the corporation shall be empowered to charge both

municipal and non-municipal users whatever fees are necessary to discharge its obligations to

holders of its bonds and notes, and the municipal tipping fee set forth in subsection (g) shall not

be applicable for the fiscal year.

      (l) On or after the date established for separation of recyclable solid waste in the

statewide plan for separation of recyclables by the department of environmental management,

only segregated solid waste shall be accepted at the corporation's facilities.

      (m) Costs associated with participation in the state program shall not constitute state

mandated costs under section 45-13-7.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY - RHODE ISLAND RESOURCE RECOVERY

CORPORATION

***

     This act would require the resource recovery corporation to pay to the town of Johnston

annually six million dollars ($6,000,000) in addition to any other tipping fees monies paid to the

town by the corporation.

     This act would take effect upon passage.

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