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Drinking Water Operating Permit Fees

In 2011, the Washington State Legislature approved a bill to raise the operating permit fee for public water systems. We have adopted rule changes to carry out this legislative requirement.

The fee increase allows us to continue helping water systems meet their responsibilities to provide safe and reliable drinking water, now and into the future.

How much will my system pay?

The fee structure includes a $100 base fee for all systems and per-connection fees based on the size of the system. We are phasing in the per-connection fees over three years:

  2012 2013 2014
Base fee for all water systems: $100 $100 $100
Per-connection fee:
     14 or fewer services $0.65 $0.98 $1.30
     15 - 99 services $0.63 $0.94 $1.25
     100 - 499 services $0.60 $0.90 $1.20
     500 - 999 services $0.58 $0.86 $1.15
     1,000 - 9,999 services $0.55 $0.83 $1.10
     10,000 - 95,000 services $0.53 $0.79 $1.05
     95,001 or more services $50,000 per year $75,000 per year $100,000 per year

Late fees will remain unchanged. If assessed a late fee, a water system will pay an additional 10 percent or $25, whichever is greater.

We have estimated each water system’s fee, based on the Water Facilities Inventory information available to us October 1, 2011. Click to see your estimated fee.

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Satellite management agencies

The new fee structure provides a break to satellite management agencies (SMAs) for the systems they own. An SMA is charged a single $100 base fee to cover all the systems it owns, plus a per-connection fee based on the total number of connections for all systems. The online fee calculator will not work properly for SMAs that own multiple systems. Click here to see a listing of SMA fees. If you need help calculating your fee, contact John Aden at (360) 236-3157.

Systems managed but not owned by an SMA pay the same fees as individual systems, and can look up their estimated fees with the online fee calculator.

Reducing the impact of the fee increase

We know this is a difficult time to increase fees. That’s why we’re phasing in these changes.

Phasing in the per-connection fee increase over a three-year period will allow water systems to budget for the fee increase over time.

In addition, we eliminated monitoring waiver fees for water quality testing from the Group A rule (WAC 246-290-990(1)(h)). The new revenue from operating permit fees will fund the costs of providing these waivers. Many systems will save hundreds of dollars each year by not paying this separate fee.

All Group A systems will pay a fee

Under the old fee structure, almost two-thirds of Group A water systems (about 2,700 systems) paid nothing or just $25 per year for their operating permit. These are the smallest Group A water systems, which often have the most challenges and create much of the demand on the state’s time and resources. A recent report to the Legislature showed that many small systems are not meeting basic water quality requirements, jeopardizing the public’s health.

All Group A water systems will now pay a $100 base fee regardless of size. The additional revenue allows us to put more emphasis on technical assistance and compliance for small Group A water systems. This will help systems better assess and improve their capacity to deliver safe and reliable drinking water.

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Improving the billing statement

We heard from water systems that the annual billing statement has not been clear enough. We made improvements so that your billing statement will be easier to understand.

Counting service connections

Water systems must report their service connections and population on the Water Facilities Inventory (WFI). We use this information to calculate operating permit fees and set monitoring requirements.

Community water systems
During the legislative session, we heard two major concerns from community water systems about our current method for counting service connections.

  1. “Not all systems report residential service connections the same way.”
    We are working with systems to improve service connection reporting. Some water systems have told us it is difficult for them to accurately count the number of dwelling units in multifamily housing and apartment buildings. Counting multifamily dwelling units describes methods some systems have used to accurately report that information on their WFI.
     
  2. “Basing the fee on both residential connections and nonresidential populations leads to inequities.”
    Under the existing fee structure, people may have been counted twice: once as non-residential consumers and once as residents in their homes, leading to higher fees for water systems. Or, residential customers of water systems could have borne the costs of serving large numbers of consumers who don’t live on the system (such as shoppers or employees).

To make sure this doesn’t happen, we changed the way we calculate service connections for community water systems by counting only residential and nonresidential connections. Each dwelling unit counts as one residential service connection. Population served isn't used to calculate operating permit fees for community water systems.

Noncommunity water systems
The operating permit fee is based on the population reported on the WFI, using an equivalent number of service connections. These systems no longer pay an additional fee for residential connections.

WFI reporting
Water systems are required to update their WFI information each year. Systems will not have to change the way they report information on the WFI, because service connections and population are already reported. We will use this information to calculate your operating permit fee.

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For more information

 

Operating Permit Fees home

Online fee calculator

List of SMA fees (PDF)

Frequently Asked Questions

Counting multifamily dwelling units

 

 

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