Second Stakeholder Meeting

Discussion on Hazardous Waste Generator Fee Increase

July 31, 2019

1

Agenda

• Introduction

• Discussion of Stakeholder Comments

• Submitted Concepts

• Discussion and Stakeholder Input

• Next Steps

Stakeholder Comments (Discussion)

How much are other state fees?• See handout - Also posted on BaseCamp

• ASTWMO Fee Survey(Association of State and Territorial Solid Waste Management Officials)

• 31 states charge fees

• 10 states do not charge fees

• 9 states did not respond

3

Iowa RCRA - Administered by EPA

• Federal Grant - Approximately $1 million

• State fees collected go to EPA

• EPA total costs and funding unknown

Can MO Increase EPA funding?

• Department pursues additional federal

funding at every opportunity

4

What is causing the increase in fee-

related expenditures?

• RCRA Federal Grant Funding Cuts

• Fixed Cost Increases

• Red Tape Reduction Initiative

• Work is not decreasing proportionate to

revenues

5

Link to DNR’s FY2020 Governor

Recommended Budget

https://oa.mo.gov/sites/default/files/FY_2020_Natura

l_Resources_Budget_Gov_Rec.pdf

Hazardous Waste Program’s budget begins

on page 105

6

Other Staff: Function and Support

• BVCP, Superfund, Federal Facilities, Tanks,

and applicable Budget & Planning staff

• These Sections receive federal grants and

other funding

Environmental Specialist (ES) I/II/III’s

• Multi-allocated positions, allow for career

progression

• Budgeted as III’s and paid commensurate

with experience/level 7

Program FTEStaff Supported by the Hazardous Waste Fund and Federal Grants

(RCRA Subtitle C Function)

Permitting and Corrective Action 21.5

Inspection/Compliance and Assistance 22.8

Generator Registration 3.7

Attorney General and Department Legal Counsel 5.5

Environmental Field Services 1.0

Total 54.5

Program Staff Included Above 34.7

Other Program Areas

Director's Office 4

Budget and Planning 15.3

Federal Facilities 16

Superfund and Natural Resource Damages 21

Tanks 15.1

Enforcement 2.5

Brownfields/Voluntary Cleanup 18

FY 2020 Hazardous Waste Program Core Budget 126.6

Program FTE

9

Hazardous Waste Program (HWP) Budgeted vs Actual Personal Service and FTE

All Funds (Federal & Various Other Funds)

FY16 FY17 FY18 FY19 FY20

Budgeted $ $5,770,424 $5,885,831 $5,885,831 $5,818,797 $5,797,806

Budgeted FTE 134.42 134.42 134.42 131.60 126.60

Actual $ $5,372,635 $5,393,621 $5,113,342 $5,052,352 n/a

Actual FTE 120.61 118.05 109.99 107.94 n/a

Vacancy FTE 13.81 16.37 24.43 23.66 n/a

Vacancy % 10.27% 12.18% 18.17% 17.98% n/a

Hazardous Waste Fund Only (DNR users)

Actual FTE 41.34 43.32 42.94 45.90 n/a

Sources:

FY16-18 Actual: DNR Decision Item Detail

FY19 Actual: SAM II HR Data Warehouse

FY16-20 Budgeted: DNR Decision Item Detail

Who is receiving the service?

10

Inspections Total SFY15 SFY16 SFY17 SFY18 SFY19

Total 3,127 562 608 694 612 651

HW: Compliance Assistance 192 2 1 9 34 146

HW: Compliance Assistance Visit 145 23 15 26 24 57

HW: Data or Record Review 9 2 3 3 1 0

HW: General Assistance 65 1 0 0 12 52

HW: Inspection: Conditionally Exempt Generator 623 141 121 137 128 96

HW: Inspection: E-Waste 118 23 33 36 14 12

HW: Inspection: Focused Compliance Inspection 44 0 16 9 7 12

HW: Inspection: Large Quantity Generator 530 93 101 123 111 102

HW: Inspection: Resource Recovery 47 4 13 15 10 5

HW: Inspection: Site Registry 105 52 53 0 0 0

HW: Inspection: Small Quantity Generator 1,022 169 205 282 210 156

HW: Inspection: Targeted Re-Inspection 20 3 3 7 2 5

HW: Inspection: Treatment Storage Disposal Facility 190 41 39 45 57 8

HW: Investigation 17 8 5 2 2 0

What low-priority work can be

eliminated?

• Department continues to focus on what is

important and look for efficiencies

11

Fee Calculator- Only Addresses Generator

Fees (Other fee adjustments require statutory changes)

Other Fees to Consider for Next Phase

• Lead Acid Battery Fee

• Cost Recovery

• Other fees

12

Who is not paying?

• Unregistered Hazardous Waste Generators

• Generators registered as Conditionally Exempt

• E-Manifest Broker

• Entities that have regulated waste activities that

require an EPA ID number, but are not

generators (See next slide)

13

Who is not paying?

• HW Transporters and Related Activities

• Used Oil Transporters and Related Activities

• Universal Waste Activities

• Facilities (generator, transporter, or receiving

facility) that need an EPA ID for the federal e-

Manifest system, because they might handle an

Illinois-special waste that requires hazardous waste

manifesting

14

Why is there a cap of $57,000?

• Stakeholders required a cap, which was

increased in 2015

15

Concepts Submitted/Proposed

Option 1: $599,970 (stakeholder)

Adjustment of Annual Generator

Registration and Renewal Fees

Option 2: $515,200 (stakeholder)

Adjustment of Annual Generator

Registration and Renewal Fees

Option 3: $1,202,946 (DNR - DRAFT)

Multiple Fee Adjustment

16

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NOTE: Data can be entered into the blue highlighted cells; calculations are automated to show total projected revenue.

Fee Adjustment Proposal Calculated for Use at Fee Stakeholder Meetings

CALCULATOR FOR INPUT

Fee Type & Current Fee Level

Current Revenues

based on Fiscal Year

2018 Reporting data

Fiscal Year 2018

Generators or Tons

per Year

Projected Number of

Generators for 2019

Potential Fee

Level or

Adjustment

Projected Additional

Revenue at Adjusted

Fee Level

Projected Total

Revenue

Fee Structures that can be Changed by Rule by SB642 Process

Generator Registration and Renewal - CESQG - $150 $ 515,200 475 536 $ 175.00 $ 599,970 $ 1,115,170

SQG - $150 1,415 1,422 $ 360.00

LQG - $500 454 443 $ 1,150.00

In-State Generator - $6.10 per ton $ 922,371 270,783 270,783 $ 6.10 $ - $ 922,371

Minimum Fee -$200 (698 generators in Fiscal Year 2018)$ 200.00 Last Ton paying Min 1

Maximum Fee - $57,000 (4 generators in Fiscal Year 2018) $ 57,000

Out-State Generator - $2 per ton $ 377,444 188,722 $ 2.00 $ - $ 377,444

Minimum Fee No $ -

Land Disposal - $29.50 per ton $ 141,777 4,797 $ 29.50 $ - $ 141,777

Offsite Transportation - $2 per ton $ - 0 $ 2.00 $ - $ -

Additional Fees $ 599,970 $ 2,556,762

The calculator accounts for changes resulting from generators now operating under hazardous secondary materials and the current number of generators as of June 18, 2019.

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NOTE: Data can be entered into the blue highlighted cells; calculations are automated to show total projected revenue.

Fee Adjustment Proposal Calculated for Use at Fee Stakeholder Meetings

CALCULATOR FOR INPUT

Fee Type & Current Fee Level

Current Revenues

based on Fiscal Year

2018 Reporting data

Fiscal Year 2018

Generators or

Tons per Year

Projected Number

of Generators for

2019

Potential Fee

Level or

Adjustment

Projected Additional

Revenue at

Adjusted Fee Level

Projected Total

Revenue

Fee Structures that can be Changed by Rule by SB642

Process

Generator Registration and Renewal - CESQG - $150 $ 515,200 475 536 $ 300.00 $ 515,200 $ 1,030,400

SQG - $150 1,415 1,422 $ 300.00

LQG - $500 454 443 $ 1,000.00

In-State Generator - $6.10 per ton $ 922,371 270,783 270,783 $ 6.10 $ - $ 922,371

Minimum Fee -$200 (698 generators in Fiscal Year 2018)$ 200.00 Last Ton paying Min 1

Maximum Fee - $57,000 (4 generators in Fiscal Year 2018) $ 57,000

Out-State Generator - $2 per ton $ 377,444 188,722 $ 2.00 $ - $ 377,444

Minimum Fee No $ -

Land Disposal - $29.50 per ton $ 141,777 4,797 $ 29.50 $ - $ 141,777

Offsite Transportation - $2 per ton $ - 0 $ 2.00 $ - $ -

Additional Fees $ 515,200 $ 2,471,992

The calculator accounts for changes resulting from generators now operating under hazardous secondary materials and the current number of generators as of June 18, 2019.

19

NOTE: Data can be entered into the blue highlighted cells; calculations are automated to show total projected revenue.

Fee Adjustment Proposal Calculated for Use at Fee Stakeholder Meetings

CALCULATOR FOR INPUT

Fee Type & Current Fee Level

Current Revenues

based on Fiscal

Year 2018

Reporting data

Fiscal Year

2018

Generators or

Tons per Year

Projected Number

of Generators for

2019

Potential Fee

Level or

Adjustment

Projected

Additional

Revenue at

Adjusted Fee Level

Projected Total

Revenue

Fee Structures that can be Changed by Rule by SB642

Process

Generator Registration and Renewal - CESQG - $150 $ 515,200 475 536 $ 175.00 $ 599,970 $ 1,115,170

SQG - $150 1,415 1,422 $ 360.00

LQG - $500 454 443 $ 1,150.00

In-State Generator - $6.10 per ton $ 922,371 270,783 270,783 $ 9.25 $ 296,859 $ 1,219,230

Minimum Fee -$200 (698 generators in Fiscal Year 2018)$ 250.00 Last Ton paying Min 1

Maximum Fee - $57,000 (4 generators in Fiscal Year 2018) $ 65,000

Out-State Generator - $2 per ton $ 377,444 188,722 $ 3.10 $ 207,594 $ 585,038

Minimum Fee No $ -

Land Disposal - $29.50 per ton $ 141,777 4,797 $ 50.00 $ 98,523 $ 240,300

Offsite Transportation - $2 per ton $ - 0 $ 2.00 $ - $ -

Additional Fees $ 1,202,946 $ 3,159,738

The calculator accounts for changes resulting from generators now operating under hazardous secondary materials and the current number of generators as of June 18, 2019.

Rulemaking Timeline

• Aug. 15, 2019 - Recommendation to HWMC

• Aug. 30, 2019 - HWMC vote

• Sept. 3, 2019 - File proposed rule

• Oct. 1, 2019 - Proposed rule published in

Missouri Register, begin

public comment period

• Nov. 1, 2019 - Public Hearing

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Rulemaking Timeline (cont’d)

• Nov. 8, 2019 - Public comment period ends

• Nov. 26, 2019 - HWMC votes on Order of

Rulemaking

• Nov. 27, 2019 - File Order of Rulemaking

• Jan. 1, 2020 - Start of General Assembly review

• Jan. 1, 2021 - Rule effective

• Dec. 31, 2021 - Fees due

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Discussion

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