1. Environmental Quality Restricted Account (EQRA) Options Discussion Bill Sinclair Deputy Director Utah Department of Environmental Quality June 18, 2009

2. EQRA Immediate Need for FY10 (July 1, 2009 - June 30, 2010) Will need to address the 2.3 M shortfall projected to occur DEQ will be submitting a General Fund supplemental appropriation request as part of the budgeting process

3. EQRA Immediate Need for FY10 (July 1, 2009 - June 30, 2010) Strategy: –Reduce GF Appropriation Supplemental Request from other sources: Potential for some revenue to be lapsed into the account FY09 Carryover from EDO, DRC, DSHW and hiring freeze for positions on EQRA (range from $500,000 to $800,000) –Request would be in the range of $750,000 to $1 million –Will need support of the Governor, Legislature, and Stakeholders

4. Options for stabilizing EQRA into the future (FY11 and beyond)

5. Monies that are required or “may” come out of EQRA

6. Options to stop the bleeding 19--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.

7. Options to stop the bleeding 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

8. Options to stop the bleeding Years transferred occurred: 8 Years not transferred: 7 Total contribution to HSMF to date: 3.2 M Handout: Hazardous Substances Mitigation Fund

9. Options to stop the bleeding 19-1-108: (5)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. This does not address appropriation of “other” monies - should this be revised to discourage such use?

10. Additional disbursements: High level nuclear waste (FY93- FY98) $2,239,000 General Fund (FY99 and FY03)$737,000 Air Quality (FY08)$500,000 Water Quality (FY08)$66,500 Total$3,542,500 Options to stop the bleeding

11. 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.

12. Options to stop the bleeding Years disbursement occurred: 9 FY96-FY02, FY08-09 Total: $1,800,000

13. Options to stop the bleeding 19-6-118. Hazardous waste and treated hazardous waste disposal fees.19-6-118 (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.

14. Options to stop the bleeding Years Disbursed: FY96-FY09 Range of Payments: $173,062 - 276,782 Total: $3,158,612

15. Summary of the options to stop the bleeding - next steps

16. Option 1 - Maintain Current Fee Structure + Annual General Fund Supplemental Appropriation Is this a viable option to further explore?

17. Option 2 - Increase Current Fee Structure Rates Discussion of handout by Craig Silotti

18. Option 2 - Increase Current Fee Structure Rates What other information is needed for further consideration?

19. Option 3 - Develop A Flat Fee Structure Discussion by Craig Silotti regarding some of the issues associated with this option Do you still want to continue pursuit of this option, if so, what information do you need?

20. Other considerations Other suggestions by Stakeholders

21. Other considerations Charge hourly fees for license review for DRC (levels the playing field for HW/RW) For one time bailout, utilize monies within the Radioactive Waste Perpetual Care Fund (with payback provisions) - must be statutory change Reduce DEQ staff positions tied to EQRA

22. Where do we go from here? Timeframe for deliberations: –July 2009 - Stakeholder meeting to develop consensus on path forward –August/September 2009 - Develop strategy for path forward (including potential legislation)