Environmental Quality Restricted Environmental Quality Restricted Account (EQRA)Account (EQRA)

Path Forward DiscussionPath Forward Discussion

Bill SinclairBill Sinclair

Deputy DirectorDeputy Director

Utah Department of Environmental QualityUtah Department of Environmental Quality

July 30, 2009July 30, 2009

Agreements in Principle to Date

• UCA 19-1-108(5) states: In order to stabilize funding for the radiation program and the solid and hazardous waste control program, the Legislature shall in years of excess revenues reserve in the restricted account sufficient monies to meet departmental needs in years of projected shortages remains sound. The fund should continue to operate on that basis

Agreements in Principle to Date

There should be a decision to modify or not modify UCA 19-1-108 to address the

following areas:– 19-3-108(3) the first $400,000 into the General fund

as free revenue.– 19-3-108 (4)(c) the Hazardous Substances Mitigation

Fund, up to $400,000– 19-3-108 $200,000 to the Department of Public Safety– 19-6-118 (g)(i)10% of the fees to the county in which

the facility is located.

Agreements in Principle to Date

Throughout the history of the fund where funds were in excess, funds were diverted for a variety of purposes by both the Executive and Legislative branches. If these funds had been left in place, the EQRA would meet its intended purpose described in 19-1-105 and not be in the fiscal crisis that it is facing today. Going forward, all parties agree that future diversions of monies for purposes other than specified in 19-1-105 should not occur.

Agreements in Principle to Date

For FY10, the Department must take independent action to shore up the fund. This could include a combination of requesting diversion of monies from other accounts, carryover monies, furloughs or reduction in force of staff, or request of a general fund appropriation of 25% as allowed in 19-1-108 (6)

Agreements in Principle to Date

• For FY11, the Department and stakeholders will work towards agreement of reasonable steps to ensure the continuation of Department programs for the oversight of waste management in the state.

Possible Path Forward for stabilizing EQRA into the future

(FY11 and beyond)

Path forward - Potential Legislation“Waste Fees Amendments”

3 key components:

• Disbursements from the EQRA (options to stop the bleeding)

• Moving fee adjustments from a statutory to a fees schedule basis

• Increases in fees for FY2011

Component 1 -Disbursements from EQRA Options to stop the bleeding

Lines 49-56 of draft Waste Fees Amendments19-1-108:

(3) In each fiscal year, the first $400,000 collected from all waste disposal fees listed in Subsection (2), collectively, shall be deposited in the General fund as free revenue. The balance shall be deposited in the restricted account created in this section.

Discussion: Keep it, modify it, or kick it

Options to stop the bleeding

Lines 57-58 of draft Waste Fees Amendments19-1-108:

19-1-108:(4) The Legislature may annually appropriate

monies from the Environmental Quality Restricted Account to:

(c) the Hazardous Substances Mitigation Fund, up to $400,000, for purposes set forth in Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation

Discussion: Keep it, modify it, or kick it

Options to stop the bleeding

Lines 67-71 of draft Waste Fees Amendments19-1-108:

19-1-108:(7) The Legislature may annually appropriate not more

than $200,000 from this account to the Department of Public Safety, created in Section 53-1-103, to be used by that department solely for hazardous materials:

(a) management training; and (b) response preparation and emergency response

training.

Discussion: Keep it, modify it, or kick it

Options to stop the bleeding

     Lines 154-157 of draft Waste Fees Amendments19-1-108:

19-6-118.   Hazardous waste and treated hazardous waste disposal fees.

(g) (i) The department shall allocate at least 10% of the fees received from a facility under this section to the county in which the facility is located.

(ii) The county may use fees allocated under Subsections (2)(e) and (f) to carry out its hazardous waste monitoring and response programs.

Discussion: Keep it, modify it, or kick it

Component 2 -Component 2 - Moving fee adjustments from a statutory to a fees schedule basis

• Moving of statutory fees to the “fees schedule”– Radioactive waste fees - lines 78-80a– Hazardous waste fees - lines 126-127a– PCB fees - lines 186-187– Nonhazardous solid waste fees - lines 289-290a

• Why DEQ thinks this is a good idea– As a practical matter, DEQ would still have to discuss

significant fee changes with facility operators– There is a process which includes a public comment period

and hearing prior to finalization of a fiscal year fees schedule– The “legislature” still approves the fees through the

appropriations subcommittee process– Much less cumbersome process for all parties

Component 2 -Component 2 - Moving fee adjustments from a statutory to a fees schedule basis

• Stakeholder discussion:– Could there be support for this idea– Are there “safeguards” that the stakeholders

desire to be able to support this idea

Component 3 -Increases in fees for FY2011Component 3 -Increases in fees for FY2011

• Changes in statutory fees from present rate (indicated by XX) – Radioactive waste fees - lines 87,89,93,96– Hazardous waste fees - lines 129, 133, 140, 153– PCB fees - lines 182, 192– Nonhazardous solid waste fees - lines 211, 212, 221,

234, 238-251, 253, 275, 278, 279

Component 3 -Increases in fees for FY2011Component 3 -Increases in fees for FY2011

Proposed process

• Separate meetings with stakeholders during August - early September 2009– Hazardous waste/PCB hazardous - Clean Harbors– Radioactive waste/PCB radioactive -

EnergySolutions– Nonhazardous solid waste

• Commercial facilities - Allied Waste• Municipal facilities - SL County, Transjordan, Wasatch

Integrated, etc.• Specialty waste - Construction and Demolition waste, etc.

Component 3 -Increases in fees for FY2011Component 3 -Increases in fees for FY2011

Meeting agenda:• DEQ will provide financial information as needed for

discussion (possible disbursements for FY11)• Review of waste projections from the operators • Negotiations as to potential fee increase • Suggestions/considerations regarding legislation• Goal is to reach consensus as to any potential fee

increase

Stakeholder discussion: Are there other discussion items or information needed for the meetings?

Where do we go from here?Where do we go from here?

• Timeframe for deliberations:– August/early September 2009 - Individual meetings

with stakeholders on fee increases/proposed legislation

– September 17, 2009 - Final meeting of stakeholder group