HOUSE OF REPRESENTATIVES
COMMITTEE ON COMMUNITY AFFAIRS
STAFF ANALYSIS AND ECONOMIC IMPACT STATEMENT
BILL# PCB 17 OTHER COMMITTEES OF REFERENCE
SPONSOR Community Affairs Cmte.
RELATING TO Hazardous SIMILAR/COMPANION BILLS
A. Present Situation:
The 1980 Legislative Session adopted Chapter 80-302
regarding hazardous wastes. A portion of this law,
section 403.725 and 403.726, allow for an excise tax
upon generators of hazardous waste to support a
Hazardous Waste Management Trust Fund. This Trust
Fund has accumulated approximately $11,000.
The act also created the Hazardous Waste Policy
Advisory Council (section 403.729) whose purpose was
to study various matters and to report to the
Governor and Cabinet and the Legislature by February
1, 1982. One of the Council's key objectives was for
Florida to plan for appropriate siting of hazardous
waste management facilities so as to reduce
compliance costs and thereby reduce environmentally
unsound hazardous waste management practices.
Presently, generators of hazardous waste are forced
to send wastes to other states, as only one small
permitted commercial hazardous waste facility exists
In order to understand the problems associated with
the siting of hazardous waste facilities; it is
essential to evaluate the circumstances facing both
the regulator and the regulated community.
Approximately one-third of Florida's hazardous waste
can either be reused in secondary markets or it can
be cost-effectively managed on-site. This on-site
option is typically cost effective only for larger
generators. (For instance, Monsanto has a chemical
neutralization system close to their plan in
Pensacola.) The remaining two-thirds of Florida's
hazardous waste requires some type of off-site
management. Florida, however, has only one off-site
management facility, a transfer facility in Pompano
Beach. Therefore, in order to properly manage their
waste, Florida's generators must send their waste out
of state (to Alabama) for treatment or disposal.
There are a number of available alternatives for
proper waste disposal of hazardous waste. Hazardous
waste management facilities include storage,
treatment and disposal facilities (landfills). Due
to Florida's environment, specifically the
permeability of Florida's soils, disposal of
hazardous waste by landfilling should be prohibited.
Appropriate in-state hazardous waste management
facilities include treatment facilities (which
incinerate, neutralize and solidify waste) and
storage facilities (which consolidate the volume of
waste for less costly reshipment). In the short term,
Florida will remain dependent upon out-of-state
disposal. Therefore, storage facilities will best
serve the immediate needs of many of Florida's
hazardous waste generators. In the long term,
i _facilities that treat wastes in a way that renders
April 11, 1983
them non-hazardous or reduces volume should be
considered, as well as modifications in the
industrial processes that either eliminate or reduce
the hazardous waste generated. These types of
facilities, however, are costly to build and require
long periods of time to plan, permit and construct.
The development of non-landfill, hazardous waste
management facilities is hindered significantly due
to the facility siting process legally defined in
section 403.723 of the Florida Statutes.
This process provides local governments and their
appropriate regional planning council with the power
to prohibit facilities from being sited within their
jurisdictions. If local governments reject a request
to site a facility that DER has indicated meets all
environmental standards, the developer may petition
the Governor and Cabinet for a variance to the local
government decision only if the appropriate regional
planning council (which is composed of 2/3 local
government officials) recommends a variance from the
local government decision. There is no provision in
the current law to allow for the petition to go
forward if the local interests are in conflict with
B. Effect of Proposed Changes:
This bill requires all counties to prepare and update
a local hazardous waste assessment. The purpose of
the assessment is: 1) to identify generators of
hazardous waste within the county, 2) to identify
current management practices used by these
generators, and 3) to provide an effective strategy
to ensure better management of hazardous waste in the
future. The cost for the assessment is paid by the
In order to assist local governments in assessing
their hazardous waste situation, a Program for Local
Government Assistance is created with DER to provide
technical help. Also, the Program will prepare a
statewide needs assessment, based on information
gathered at the local, state, and federal level, to
better determine if there is a need for in-state
facilities to properly manage hazardous waste.
The bill also requires that each county develop a
small quantity generator notification program in
order to ensure the proper management of the waste
generated by these small quantity generators who
produce less than 1,000 kgs. a month of waste). The
state has a record of all large and medium quantity
generators, but not the small quantity generators.
In addition, the tax levied on generators, based on
the cost of hazardous waste disposal, is moved from
two percent to five iiercent. The Department of
Revenue collects the tax and returns the tax revenues
to each county based on the percentage of monies
collected from each county on a semiannual basis. If
100 percent collection took place, the tax should
generate between $1.75 million and $8.75 million for
local government in order to administer local
hazardous waste programs (please see attachments).
This bill amends the current siting process so that
needed hazardous waste management facilities can be
developed. Instead of the Regional Planning
Council's recommending a variance from a local
government decision, a Hazardous Waste Facility
C"i wa- Siting Commission is created. This Commission is
April 11, 1983
composed of members from the general public,
hazardous waste generators, transporters, and
facility operators, as well as representatives from
local, regional, and state government. The
Commission's responsibility is to recommend to the
Governor and Cabinet, whether to overturn a decision
by local government to deny the siting of a hazardous
waste management facility.
The bill also indicates the Legislature's intent with
regard to properly siting a multi-purpose facility to
manage Florida's large volume of hazardous waste.
The criteria for this multi-purpose facility is
developed by DER and a site is designated by the
Hazardous Waste Facility Siting Commission.
The bill also prohibits hazardous waste landfills
unless an emergency situation exists and establishes
that all state agencies prepare a program to properly
manage their waste.
C. Section by Section Analysis:
Section 1. Creates the local government Hazardous
Waste Management Program within the Department of
Environmental Regulation to provide technical
assistance to county governments in order to prepare
their hazardous waste assessments. In addition, it
provides that the program also produce a statewide
facility needs assessment on an annual basis.
Section 2. Provides that each county prepare and
update hazardous waste assessments in order to
determine the types and quantities of waste
generated, and current generator management
practices. In addition, the section ensures proper
preparation of the assessments by mandating that
county governments use the program mentioned in
Section 1 for technical assistance. Also, this
section provides a schedule for the completion of all
Section 3. Provides that the counties annually
notify exempt small quantity generators of their
legal responsibilities. In addition, mandates small
quantity generators notify the county of their waste
management practices. Provides penalties for
Section 4. Establishes that all information gathered
through the local assessment and generator
notification program be sent to the department.
Section 5. Establishes a local government Hazardous
Waste Management Trust Fund, within the Department of
Revenue, to fund the local assessments.
Section 6. Allows that the tax on hazardous waste
generators increase immediately to five percent, and
establishes that no tax shall be levied upon
hazardous waste generators who reuse waste as a raw
Section 7. Provides for and establishes procedures
for the collection of a hazardous waste generator tax
by the Department of Revenue.
Section 8. Provides that the Department of Revenue
return all monies received from the generator tax to
Section 9. Details uses by county government for the
revenue collected from hazardous waste generators.
April 11, 1983
Section 10. Creates a Hazardous Waste Facility
Siting Commission and establishes the composition of
the Commission. Also, provides that each member
shall receive no compensation other than the per diem
pursuant to s.112.061, Florida Statutes.
Section 11. Provides for a Hazardous Waste Facility
Siting Commission to hold public hearings and
recommends to the Governor and Cabinet if a local
government decision to prohibit the siting of a
hazardous waste facility should be overturned. In
addition, establishes that the Governor and Cabinet
review the statewide needs assessment in order to
overturn a local decision to site a hazardous waste
Section 12. Establishes a process for siting a
multi-purpose hazardous waste facility in Florida.
Section 13. Provides a tax credit for each taxpayer
on the costs of studies for a proposed hazardous
waste facility permit.
Section 14. Provides a system of credit stacking to
maximize benefits to taxpayers who are proposing the
establishment of a hazardous waste facility.
Section 15. Provides a definition for hazardous
waste landfills and prohibits their development
unless the Governor declares an emergency in which
their use is needed.
Section 16. Establishes a process, to be used by all
state agencies who generate hazardous waste, to
properly dispose of their waste.
Section 17. Deletes the timing requirements for
permit review for a hazardous waste permit pursuant
to s.403.723, Florida Statutes.
Section 18. Eliminates liability of persons who
voluntarily assist in the cleanup of discharge of
Section 19. Provides that nothing in this shall
limit present powers of the department.
Section 20. Provides an appropriation for the Local
Government Hazardous Waste Assessments.
Section 21. Sunsets this act on October 1, 1993.
Section 22. Repeals section s.208.003, Florida
Statutes, which deals with the present collection
process for the tax on generators.
Section 23. Provides an effective date.
II. ECONOMIC IMPACT i.
Increases the tax to the hazardous waste generator
from two to five percent. However, the addition of
in-state facilities will lower storage, treatment,
and disposal costs for generators significantly.
It should be noted that present law provides for an
escalation of the tax to three percent next and four
percent the following year. This bill accelerates
the tax mechanism and raises it to five percent.
i". B. Government:
April 11, 1983
Local governments should receive between $1.75
million to $8.75 million statewide from the hazardous
waste tax (depending on actual amount of waste
disposed of in Florida).
In addition, the monitoring at the local level and
the siting of in-state facilities should drastically
reduce the number of future unmonitored dump sites in
V. PREPARED BY
Steve Paikowsky \5? o:
VI. STAFF DIRECTOR
VII. COPY TO SPONSOR
ESTIMATED HAZARDOUS WASTE TAX REVENUES FOR
SELECTED FLORIDA COUNTIES
1. Transportation is included in the tax base.
2. Revenue estimate base on a five percent rate.
3. One hundred percent compliance by all hazardous waste generators.
4. Wastes now disposed of in surface impoundments would be managed in some
Number of Generators
Compliance Cost/Generator (average)
Total Compliance Cost
Tax Revenues (base x rate)
The estimates for tax revenues are at best rough approximations for actual
revenues. Only after a survey of generators in each of these counties is
completed will total compliance costs be known.
STATEWIDE TAX COLLECTION ESTIMATE
TAX ON GENERATORS OF HAZARDOUS WASTE (CH. 208 F.S.)
Waste Less Requiring Cost for Fiscal
Generated Exemptions Out-of-State Out-of-State 1982-83 Tax
(M.T.) (M.T.) (M.T.) Disposal* Collections (5%)
100,000 30,000 70,000 $35m $1.75m
200,000 60,000 140,000 $70m $3.50m
300,000 90,000 210,000 $105m $5.25m
400,000 120,000 280,000 $140m $7.00m
500,000 150,000 350,000 $175m $8.75m
*Disposal cost is approximately $500 per metric ton.