Chase Applauds Hearing for Fair Competition for the Environment Act

Bill Will Aid Small Business by Ending Cross Subsidization; Encouraging Recycling

Feb. 10, 2009

Rep. Maralyn Chase applauded the House Ecology and Parks Committee for scheduling a hearing on her bill, HB 1863, the Fair Competition for the Environment Act (the FCEA). The bill will be heard by the committee on Friday, February 13, at 8:00, in House Hearing Room C.

The FCEA will prevent regulated garbage companies from using their monopoly to compete unfairly with small businesses outside the area of municipal solid waste by preventing cross subsidization. Cross subsidization is the practice of using profits generated from one product or service to support another provided by the same operating entity, and is generally prohibited in regards to utilities.

The FCEA will require garbage companies to entirely separate their regulated garbage activities from their other business activities. The state has acted similarly in the past to prevent regulated utilities from competing unfairly with small businesses. For example, Washington Natural Gas was prevented from selling furnaces and water heaters, and forced to create the separate Washington Energy Services.

Chase, and others, believes that garbage companies are using the advantages of their monopoly to unfairly compete with other construction related small businesses, such as paper shredders, providers of portable toilets and liquid handling equipment, and especially, independent recyclers.

"This bill is good for small business and good for the environment," said Chase, the Vice Chair of the House Environmental Health Committee. "Independent recyclers recycle a far higher percentage of the material they take in than do garbage companies, keeping millions of tons of debris out of landfills which helps our state meet it's recycling and climate protection goals. We need to encourage this emerging green industry, and give them a level competitive playing field."