2009-2011 LAND QUALITY DIVISION
Wendy Wiles Administrator, Land Quality Division PEMG Z7012 (38X) 0668
EMERGENCY RESPONSE/ SOLID WASTE HAZARDOUS WASTE & TANKS ENVIRONMENTAL CLEANUP
Jeffrey Christensen Loretta Pickerell Andree Pollock Manager Manager Manager PEME X7008 (33X) 0571 PEME X7008 (33X) 0693 PEME X7008 (33X) 0359
LAND QUALITY PROGRAM Total Positions FTE HQ REG LAB 2007-2009 LAB 232 229.94 63.36 159.16 7.42 2009-2011 Modified Essential Budget Level 232 230.20 67.81 154.97 7.42 2009-2011 Program Packages 4 3.83 1.83 2.00 0
Total 2009-2011 Legislatively Adopted Budget 236 234.03 69.64 156.96 7.42
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-1 LAND QUALITY PROGRAM NARRATIVE
LAND QUALITY
I. OVERVIEW OF LAND QUALITY Land Quality consists of five program areas that are focused primarily on DEQ’s strategic direction of protecting human health and the environment from toxics. Land Quality achieves these goals through activities that: help Oregonians reduce the use of toxic chemicals and the generation of waste; manage materials used and waste generated to minimize the release of toxics to the air, water and land; reduce the risk from exposure to contaminants already in our environment by requiring cleanup of contaminated sites; and prepare for and minimize the danger from the release of hazardous substances from accidents or other emergency events. The aim of many program activities is to protect Oregon’s valuable water resources by ensuring that harmful substances are removed from the environment, or are safely managed. For example, ensuring compliance with landfill management requirements and with petroleum tank operation standards prevent hazardous substances from polluting Oregon’s groundwater. Similarly, requiring cleanup of historical toxic pollution reduces runoff of harmful chemicals to our rivers and streams.
Land Quality addresses its environmental goals through five main program areas that are distinguished by the laws and regulations they carry out, and by segregated funding sources. The programs and their primary goals are: Solid Waste: promotes reduction of solid waste generation and toxics use in materials and in households; promotes recovery of resources in waste that is generated; ensures safe management of waste disposal. Conducts projects to increase understanding of the significant greenhouse gas emissions associated with products and materials and strategies to reduce those impacts. Hazardous Waste: promotes reduction of hazardous waste generation and toxics use; ensures that companies safely manage the hazardous waste they generate; provides oversight of the disposal and management of hazardous waste; and provides oversight of operations that eliminate chemical agents stored at the Umatilla Army Depot. Underground Storage Tanks: ensures underground storage tanks (USTs) containing petroleum or hazardous substances are properly operated to prevent leaks; oversees cleanup of releases from petroleum tanks. Protecting groundwater is the highest priority. Environmental Cleanup: ensures those responsible for contaminated sites take appropriate action; undertakes cleanup when necessary; supports voluntary and independent cleanups to facilitate property transfers and redevelopment. The environmental goal is to minimize exposure to contaminants that have been released into the environment and present an unacceptable risk to people or the environment. Emergency Response and Preparedness: ensures that new releases of oil and hazardous materials – including those caused by terrorist events and natural disasters– are contained and cleaned up. As the state lead agency for cleanup of oil and hazardous spills, DEQ
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-2 LAND QUALITY PROGRAM NARRATIVE
provides 24-hour a day, 7 days a week response capabilities for chemical and oil emergencies. Land Quality focuses on prevention and preparedness activities to minimize the effects of releases, especially to water, including minimizing the impacts of aquatic non-native species into Oregon’s waterways.
Land Quality, like all of DEQ, is striving to meet the environmental challenges of the future. Climate change, for example, will make the reduction of greenhouse gases an increasingly important focus of waste prevention and management. It may also increase the number and severity of weather-related events, placing increased demand on our emergency preparedness and response resources. Currently, Land Quality continues to focus much of our time and resources on “core work” required under existing state and federal mandates. But as we move forward, we will look for both ways to shift our core work and to change the tools we use so in order meet new challenges like climate change and becoming more sustainable. For example: Although our waste management strategy has always identified reduction as the highest priority, we have been moving in the past several years to take a more comprehensive approach that examines the impacts of products over their life cycle, so that we encourage or require the most environmentally appropriate action. Our regulation of landfills is a way not only to protect water quality, but also to prevent emissions of greenhouse gases. And we try to use “greener” methods to clean up contaminated sites and encourage responsible parties to do the same.
We will be able to make some of these changes within our current structures and with existing resources. But we also believe we will need new tools and some additional resources. DEQ’s proposals for the 2009 Legislative session are designed to help us address new environmental challenges. In particular, we are proposing a policy package to develop a framework for increasing product stewardship programs, similar to the electronic waste recycling program established by the 2007 Legislature. Product stewardship programs place the responsibility on manufacturers to provide opportunities to recycle their products and therefore provide an incentive to make products more reusable and recyclable. Land Quality’s goals will also be furthered by the policy package request (not included in the Governor’s Recommended Budget) in DEQ’s Cross Program budget unit that will strengthen toxic chemical reduction efforts. The additional staff requested will enable DEQ to improve our ability to reduce the use of toxic chemicals, rather than simply reducing or controlling waste produced.
II. ACTIVITIES AND PROGRAMS Land Quality programs use a variety of approaches to protect the environment. In addition to traditional enforcement activities, Land Quality also focuses on providing education, technical assistance and outreach as important ways to meet its goals and objectives and achieve environmental protection.
Land Quality subprograms carry out the following activities to achieve our goals:
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-3 LAND QUALITY PROGRAM NARRATIVE
Waste Reduction:
Land Quality programs help Oregonians, both businesses and citizens, to reduce the use of all resources, especially toxic chemicals, and to minimize waste generated by: Providing technical assistance to toxic users to assist them in reducing the amount of toxic material used, toxic wastes generated, and the proper disposal of those materials; Providing technical assistance, educational and outreach efforts to achieve the statewide waste prevention goal of no increase in solid waste generated by 2009; Measuring statewide and regional material recovery rates; Providing technical and financial assistance to local government for recycling and waste prevention programs; Developing product stewardship management approaches for toxic and difficult-to-manage waste streams, such as electronics, pharmaceuticals, mercury thermostats, fluorescent lights, and other mercury-containing products; and Using life cycle analysis and other information to promote better understanding of significant resource consumption and greenhouse gas emissions associated with materials and products Oregonians use and consume.
Safe Management:
Land Quality Programs ensure that those who use hazardous products or generate or handle hazardous and solid waste do so properly to minimize releases to the environment by: Issuing permits for landfills and other waste disposal facilities, and monitoring compliance with permit requirements; Providing on-site technical assistance to hazardous waste generators to promote safe management practices; Conducting compliance inspections of hazardous waste generators to ensure proper waste management; Ensuring that hazardous waste generators and handlers notify DEQ of their operations and by inspecting them as necessary; Issuing permits to compost facilities and providing technical guidance and training to assure compliance with state and federal regulations; Providing opportunities for households and businesses to manage toxic wastes in an environmentally protective manner; Ensuring that owners of underground storage tanks know how to operate and maintain equipment to prevent and detect leaks, by providing technical assistance and conducting on site inspections; Reviewing underground tank facility plans and inspecting new installations prior to issuing certificates permitting the tanks to be operated; Ensuring that fuel is not delivered to unsafe tanks; Ensuring that underground storage tank owners are financially able to pay for prompt cleanup, should a leak occur; Decreasing the incidence of marine oil spills by requiring and approving industry spill prevention and response plans for major oil handling facilities and vessels, and through drills and exercises to test approved oil spill contingency plans; and
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-4 LAND QUALITY PROGRAM NARRATIVE
Minimizing the risk of introduction of aquatic non-native species into Oregon’s waterways through implementation of the state’s ballast water requirements.
Cleanup and Emergency Response:
Land Quality Programs reduce the risk to people and the environment from contaminants already in our environment by: Requiring responsible parties to clean up contamination from various sources – such as commercial and industrial facilities, petroleum tanks and contaminated sediments – that pose an unacceptable risk to public health or the environment; Encouraging responsible parties and other willing parties to investigate and clean up lower-risk properties under Voluntary Cleanup Program oversight; Ensuring that investigation accurately reveals the extent of contamination to be addressed and that methods used to control or clean it up are adequate to protect public health and the environment; Using state funds to clean up high-risk contaminated sites when responsible parties aren't able to do so; Identifying sources of contamination not being addressed and assess the risk from those sites; and Working through all available avenues – including review and oversight of voluntary cleanups, technical consultation, and incentives to prospective purchasers – to encourage environmental cleanup and return contaminated property to productive use.
Land Quality Programs protect human health and the environment from the release of hazardous materials by: Preparing for and responding to chemical and oil releases – including those resulting from terrorist actions or natural disasters such as earthquakes or tsunami; Ensuring that spills of oil and hazardous materials are cleaned up; Providing on-scene incident command at oil or hazardous material release sites; Cleaning up spills when responsible parties aren't able to do so; Coordinating with local governments to ensure that the environment and public health are not threatened by new releases of oil or hazardous materials; Minimizing the impact of oil and hazardous material spills through planning and preparedness activities, such as drills and exercises; Coordinating with other state and federal agencies under the National Emergency Response Framework, Northwest Area Contingency; Plan, and State of Oregon Emergency Operations Plan, as lead agency for oil and hazardous materials response actions and in a support capacity for Health and Medical Services; and Developing, maintaining and testing the DEQ Emergency Operations Plan that controls the agency’s response to all emergency events, which is also linked to the agency’s Business Continuity Plan.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-5 LAND QUALITY PROGRAM NARRATIVE
Land Quality programs are implemented locally by staff in each of DEQ’s three regions. Regional staff conduct inspections, issue permits, oversee cleanups and provide technical assistance. They are supported by centralized Land Quality support functions and DEQ’s Laboratory. Some program functions are centralized, such as hazardous waste facility data collection, UST facility permits and service provider licensing. Other centralized functions include program coordination; liaison with the Environmental Protection Agency; development and maintenance of administrative rules, policies and guidance; billing and related financial operations; federal grant and contract administration; budget and information management; and responding to general public inquiries. The Laboratory performs monitoring activities and analyzes samples to support Land Quality programs. Data provided by the Laboratory is used, for example, to determine that contamination from a landfill or hazardous waste facility is contained.
The following pages provide more detailed information on each of the five subprogram areas.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-6 LAND QUALITY PROGRAM NARRATIVE
A. Solid Waste Management
The Solid Waste Program promotes the prevention, recovery and proper management of solid waste. To do that we issue solid waste management facility permits; conduct inspections to ensure compliance with federal requirements at municipal solid waste SOLID WASTE PROGRAM OBJECTIVES landfills; measure waste generation, disposal, and recovery rates; provide technical assistance to local government and industry to assure compliance with state recycling Reduce waste generation by implementing a laws; and work with business, industry, and local government entities to assist their new waste prevention strategy, expanding voluntary waste generation prevention efforts. The Solid Waste Program works to partnerships to leverage waste prevention work, reduce toxics in the environment by providing technical and financial assistance to and increasing efforts to reduce purchase and local governments for planning and building local household hazardous waste use of household toxics. management facilities; develop statewide programs for managing materials such as Optimize waste recovery by assessing materials mercury-containing products; coordinate household hazardous waste collection events recovery efforts in Oregon, targeting waste statewide; develop statewide product stewardship programs where producers take streams for recovery, revising the Bottle Bill, responsibility for managing their products at end of life and design more and developing a beneficial use program. environmentally friendly products; and provide education and outreach to Oregonians on how to prevent waste generation, recycle, and choose less toxic alternatives in Implement the new electronics waste recycling their daily activities. law and promote other product stewardship initiatives. Promote understanding of significant Projects and Issues: greenhouse gas impacts associated with products and materials and potential for DEQ is working with electronics manufacturers to develop statewide recycling reduction. programs for televisions, computers, and computer monitors under Oregon’s Assure proper management of solid waste by 2007 Electronics Recycling Law. Collection and recycling begins January 2009. updating composting facility rules, planning for DEQ and other partners are supporting product stewardship initiatives in Oregon emergencies, and improving permitting and for paint, pharmaceuticals, mercury thermostats, mercury lamps, and other compliance. products. DEQ is moving forward legislation for 2009 to establish a common Plan long-term for program development. framework for developing product stewardship programs. The Bottle Bill Task Force established with the 2007 Bottle Bill amendments is developing recommendations for further amendments to the Bottle Bill for 2009.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-7 LAND QUALITY PROGRAM NARRATIVE
Methods for curbside collection of recyclables are shifting from source separation in bins to commingling for later separation at centralized material recovery facilities. The amounts of recyclables collected increase with commingling, but so does contamination of recyclables and difficulty in sorting materials for recovery. Work is ongoing to increase recovery of recyclables collected curbside. Increasing composting to recover more organic materials necessitates better regulations and coordination with groups such as the Compost Council of Oregon and the Department of Agriculture. DEQ plans to recommend changes in administrative rules for composting facilities to the Environmental Quality Commission for adoption in 2009. Emerging technologies that recover energy from wastes or make beneficial use of wastes require new strategies for regulation and are changing how wastes are managed. Stakeholders are evaluating regulatory approaches that make sense for Oregon. For example, a tire pyrolysis demonstration project in Morrow County and a plastics pyrolysis operation in Marion County began testing operations in 2008. Cleanup work is increasing as contamination is found at old disposal facilities. The household hazardous waste program has shifted emphasis from a volume-based collection program to a risk-based approach focusing on the most toxic materials. The program also provides grants and technical assistance to promote local development of permanent collection facilities to handle household hazardous waste. Both total and per capita solid waste generation continue to climb each year, along with the significant energy use, greenhouse gas, and other impacts that occur over the life of the products and materials Oregonians produce and consume. DEQ is implementing a new waste prevention strategy focusing initially on reducing packaging with businesses (including Wal-Mart’s national program) and developing best management practices for materials use in residential buildings. Expanding understanding of the significant life cycle impacts (from extraction and manufacture through use and end-of life-management) of products and materials is building awareness and support for waste prevention. DEQ is conducting a life cycle inventory and impact analysis of drinking water delivery to illustrate the environmental burdens and impacts of tap water vs. bottled water and more broadly recycling vs. disposal. DEQ is helping policy makers and others in the climate change community to understand how reducing waste can significantly reduce greenhouse gas emissions. Part of this effort involves calling attention to the manner in which conventional greenhouse gas inventories used to identify GHG reduction strategies significantly underestimate the greenhouse gas impacts of materials. DEQ is supporting development of a supplemental accounting system to better quantify materials-related emissions and inform policy. In partnership with DEQ Emergency Response staff and Oregon Emergency Management, Oregon Department of Transportation, other state agencies, and local governments, the Solid Waste Program is developing a state debris management plan to facilitate and coordinate the removal and management of debris following a disaster.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-8 LAND QUALITY PROGRAM NARRATIVE
Trends in Workload:
More state, regional, and national resources will be devoted to improving understanding of greenhouse gas impacts associated with materials and to strategies to reduce those impacts. Waste prevention efforts will increase to reverse the continuing climb in waste generation. Oregonians are not on track to achieve the statewide goal of no increase in solid waste generation after 2009. National, regional, and state efforts to develop product stewardship programs will shift costs and responsibilities for end-of-life management for toxic and difficult to manage products from state and local governments to the producers of those products. Expanded recovery programs for organics and construction-demolition material are needed to achieve the statewide recovery goal of 50% by the end of 2009. While Oregon is currently recovering 47.5% of its waste, meeting the 2009 recovery goal will be a challenge because waste generation is increasing faster than recovery. More work is needed to adapt tools for evaluating full life cycle impacts of the materials we use to reduce energy consumption, greenhouse gas emissions, and environmental impacts. The regionalization of landfills, the need for more transfer stations, and more emphasis on compost facilities and permanent household hazardous waste collection facilities means a broader variety of permit types and issues than the program has handled in the past. Significant time will also be spent on cleanup at contaminated sites. Emerging technologies to recover energy or develop beneficial uses for waste products are requiring new regulatory strategies to support resource recovery that protects the environment.
B. Hazardous Waste Management
The Hazardous Waste Program promotes the reduction and safe management of hazardous waste. We accomplish this by issuing waste management facility permits; conducting inspections of hazardous waste facilities, generators, handlers and used oil processors; providing hazardous waste regulatory compliance assistance; reviewing industry toxic use reduction plans and providing technical assistance to help implement these plans; and responding to complaints and issuing enforcement actions for hazardous waste management violations.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page _____ 6-9 LAND QUALITY PROGRAM NARRATIVE
Projects and Issues HAZARDOUS WASTE PROGRAM OBJECTIVE: The Hazardous Waste program works with Oregonians, Oregon businesses and the EPA to create efficiencies while satisfying federal requirements. The following Reduce generation and ensure safe management of improvements and workload issues are worth noting: hazardous waste by: Focusing resources on areas with the greatest Efficiency/service: The law does not required Conditionally Exempt environmental needs, including geographic areas, Generators (CEGs), who generate less than 220 pounds of hazardous waste priority business sectors and facilities; in a month, to register or have Hazardous Waste Generator ID numbers. In the past, DEQ registered CEGs at their request and, once registered, Carrying out coordinated sustainability efforts for required annual reporting. The number of registered CEGs represent only a the hazardous waste program; fraction of the companies with small amounts of hazardous waste, making Ensuring statewide compliance with hazardous the data collected low in value. As a result, there is no environmental regulations; benefit to this registration or reporting. DEQ reduced the burden of reporting for companies with small amounts of hazardous waste by Expanding partnerships to achieve greater success eliminating the requirement for annual reports. This change, coupled with with program priorities; an outreach effort, reduced the number of registered CEGs by 3,000 Reducing the threat of exposure to hazardous companies. waste through compliance monitoring and Authorization: The workload of EPA information management assistance; enforcement and permitting tools; and requirements, rulemaking and program authorization remains heavy because through cleanup actions; of the need to satisfy grant requirements and to maintain equivalency with Reducing toxic materials use and hazardous waste the federal hazardous waste program. generation through technical assistance, Watershed Protection: DEQ continues to provide technical assistance to education and outreach, and compliance and help protect watersheds. For example, the Hazardous Waste program has enforcement efforts; and worked with DEQ Drinking Water Protection staff to identify hazardous Continuing work to eliminate all chemical waste generators in known protection areas, focusing resources on a high- weapons and secondary wastes stored at the risk area. Once identified, the generators are provided with technical Umatilla Chemical Depot. assistance and trainings. Other examples include: working with auto body repair facilities recyclers to use best management practices that reduce waste, emissions and runoff; providing technical assistance to businesses in the Columbia Slough Watershed as part of a joint effort with the City of Portland Bureau of Environmental Services to reduce sources of contamination to the slough; and cross program outreach to Portland Harbor facilities to implement best management practices to reduce runoff and reduce waste generation.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-10 LAND QUALITY PROGRAM NARRATIVE
Toxics Use Reduction: As part of the improved Toxics Use and Hazardous Waste Reduction program approved during the 2005 session, over 350 Oregon businesses submitted to the agency a one-time Implementation Summary detailing how they reduced toxic chemicals and hazardous waste. DEQ staff also added new features and tools to the full internet-based reporting system in preparing to add another 300 businesses that must plan and report their toxic chemical and hazardous waste reductions. The public will have access to Implementation Summary information through a web-based clearinghouse scheduled to go online by the end of 2008.
Trends in Workload:
DEQ continues to use technical assistance to help businesses understand and comply with the complexities of the federal requirements. We evaluate and determine the best use of our technical resources by using an environmental assessment tool that allows us to measure the results of our site visits. After a steady decline over the previous decade, the number of large and small generators of hazardous waste has started to increase slightly. Production waste remains relatively stable, although hazardous waste from cleanups can vary substantially. Although EPA continues to emphasize traditional compliance and enforcement aimed at larger companies, DEQ continues to work with them to gain their recognition of other approaches that will obtain greater environmental benefits, including technical assistance and alternative inspection goals that focus efforts on small quantity and conditionally exempt generators.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-11 LAND QUALITY PROGRAM NARRATIVE
C. Underground Storage Tanks UNDERGROUND STORAGE TANKS PROGRAM OBJECTIVE: The Underground Storage Tank (UST) Program, ensures sound management of underground storage tanks to prevent leaks and Prevent leaks, detect leaks early, ensure the tank owner has the oversee petroleum cleanups when a leak occurs. We regulate tanks financial resources available to pay for cleanup, and reduce or through annual operating certificates and inspections; provide eliminate the risk from UST leaks by: technical assistance to tank owners to help them properly operate and maintain leak detection, corrosion protection and spill and overfill Inspecting facilities to ensure tank systems meet equipment equipment; oversee tank installation and decommissioning (properly standards and are properly operated; removed or filled in place); and license companies and project Ensuring that out-of-service tanks are properly supervisors providing tank services. We provide technical assistance and regulatory oversight of petroleum cleanups performed by tank decommissioned and that fuel is only delivered to those owners, by tracking, prioritizing, reviewing and approving cleanups. tanks with valid operating permits; For heating oil tanks, we review certified heating oil tank cleanup and Verifying that tank owners meet financial responsibility (i.e. voluntary decommissioning reports from licensed service providers and insurance) requirements, thus ensuring quick cleanup of new audit cleanups by conducting sampling and reviewing contractor and leaks; laboratory records. Requiring training for all operators of facilities that dispense fuel; Trends in Workload: Completing risk screening on all tank cleanup projects so work is focused on high environmental priority projects; During the 2007 legislative session, important changes were made to Overseeing the cleanup of leaks from underground storage the statutes governing USTs. The changes updated the law so that tanks; DEQ meets the requirements of the Federal Energy Policy Act, which Improving public outreach about abandoned tanks, best was enacted in August 2005. Rules implementing these changes were adopted by the Environmental Quality Commission and went into management practices for heating oil tanks and requirements effect on March 10, 2008. These changes and the increased fee funding for pumping oil from heating oil tanks when they are no approved by the legislature ensure DEQ meets the requirements for longer in use and encouraging the public to voluntarily State Program Approval. DEQ expects to apply for program approval decommission heating oil tanks; and late in 2008 or early in 2009. Reducing the overall risk from heating oil tank leaks by reviewing certified reports from service providers and EPA set aggressive cleanup goals requiring states to increase the evaluating the work of service providers. number of tank cleanups completed. The increasingly complex nature of the remaining cleanup projects works counter to this goal as cleanups are taking longer. DEQ continues to work with EPA to implement creative ways to accomplish these goals and expects to
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-12 LAND QUALITY PROGRAM NARRATIVE
receive supplemental grants from EPA to further this effort. These grants should help increase the marketability and reuse of underutilized properties as cleanups are completed or more data is available for investors.
The UST program continues to lead DEQ in implementing alternative approaches to DEQ’s formal enforcement process. With the passage of statutory changes in the 2007 session, the program has significantly expanded its use of field tickets which streamlines the enforcement process.
D. Environmental Cleanup
The Environmental Cleanup Program discovers, investigates and cleans up hazardous substances that have been released into the environment. Sites may be contaminated from current or former operating practices at the sites, or from spills. Cleanup of leaks from underground petroleum tanks are for the most part handled separately by the Underground Storage Tank staff, although high priority “orphan” tank cleanups may be handled by the Environmental Cleanup Program.
ENVIRONMENTAL CLEANUP PROGRAM The program manages contaminated sites in several ways: OBJECTIVES
Site Assessment and Brownfields: Identify and initiate investigation and cleanup activities at high priority sites that threaten Site assessment identifies sites contaminated with hazardous substances that human health or the environment. may threaten public health or the environment, and manages information about these sites. The first step is to identify sites that, based on historical activities Improve responsiveness to community or other information, are likely to be contaminated. Once sites are identified, brownfield and economic development needs. they are assessed to determine whether hazardous substance releases occurred and to prioritize the need for further investigation or cleanup. As required by Maintain financial stability of the Cleanup statute, DEQ maintains a statewide list of facilities that have confirmed Program. releases of hazardous substances and need further cleanup action. Site assessment also helps facilitate the investigation and cleanup of brownfield sites, including working with local communities and EPA to enable redevelopment of contaminated sites.
Site Response and Orphan Sites: If a site is identified as a high priority for cleanup, DEQ may require that the responsible party or parties take action. Cleanup personnel oversee responsible party-funded actions at these high priority sites to ensure that work is carried out properly. Responsible parties pay for both the cleanup and for DEQ’s oversight costs. In high priority cases where the responsible party is unknown, or is unwilling or unable to conduct the work, DEQ uses state Orphan Site Account funds for investigation and cleanup. Some of Oregon’s cleanup sites are
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-13 LAND QUALITY PROGRAM NARRATIVE
also on the federal National Priorities List (NPL). Cleanup staff participate in these federally-funded cleanups, known as Superfund sites, to ensure they also meet the legislatively mandated Oregon cleanup standards.
Voluntary Cleanup and Prospective Purchaser Agreements In many cases, property owners don’t wait for DEQ to require them to clean up contaminated properties. These parties typically enter DEQ’s voluntary cleanup program in order to receive state oversight and approval for the cleanup. The program’s Independent Cleanup Pathway (ICP) allows responsible parties with low or medium priority sites to conduct investigation and cleanup activities on their own and then submit a final report to DEQ for review. This option is now widely used by program participants. Voluntary cleanup staff also provide requested technical assistance to local governments and others. Properties that have been idle on the tax rolls can be redeveloped and once again produce tax revenue. Another tool used by the Cleanup program is the Prospective Purchaser Agreement, through which DEQ limits a prospective buyer’s liability for known contamination in return for the buyer’s taking actions that will provide a substantial public benefit.
Dry Cleaner Program The dry cleaner program is industry-funded and managed by Environmental Cleanup, with support from the Air and Hazardous Waste programs. The program addresses the cleanup of past releases from dry cleaner facilities and institutes new requirements for safe management of dry cleaning chemicals to avoid future releases.
Projects and Issues
Brownfields. Industrial and commercial properties where redevelopment is hindered by real or perceived contamination have emerged as a significant subset of cleanup projects. The Environmental Cleanup Program provides technical assistance and oversight of investigations and cleanups, assists with grant applications to obtain cleanup funding, and coordinates with property owners, developers and other state and local agencies to successfully complete brownfield redevelopment projects. This is an important emerging issue, because it combines site cleanup with economic redevelopment and community enhancement.
Contaminated Sediment Cleanup. Contaminated sediment issues, such as what ecological risk assessment values should be used and what are the options for completing these risk assessments, have become increasingly important as DEQ and the EPA continue work on the Portland Harbor Superfund site.
Trends in Workload:
Sustainable Cleanup Program Financing: Demand for brownfield project work, prospective purchaser agreements, Superfund project support, and voluntary cleanup program activity remain strong in 2008. However, during the previous biennium, the Environmental
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-14 LAND QUALITY PROGRAM NARRATIVE
Cleanup Program realized adjustments were necessary in the number of employees involved in spill response and cleanup project work. At the time, we projected that revenue from available funding sources, including hazardous waste disposal fees, cost recovery, and federal grants would be short of the amount needed to pay for the existing level of program staff. To avoid exhausting the fund balances, the program reevaluated priorities and expenses, and reduced the number of FTE in the program by leaving vacancies open and reassigning staff to other DEQ program work. The Legislatively Adopted Budget eliminated 9.67 FTE that the program can no longer afford. Because cost recovery revenues pay for the majority of Environmental Cleanup Program personnel costs, budgeting for the program hinges on accurately predicting the demand for DEQ’s oversight of cleanup projects.
E. Emergency Response and Preparedness
The Emergency Response and Preparedness Program ensures the state is prepared for oil and hazardous material spills and protected from these incidents. We accomplish this goal by: developing emergency response plans and by providing and participating in training, drills and exercises with government and industry; reviewing and approving oil spill contingency plans for regulated facilities and vessels; directing the cleanup of oil and hazardous material spills where there is no responsible party; and overseeing responsible party cleanups. Oregon DEQ responds to more than 2,300 emergency notifications per year. The program also represents Oregon on the Northwest Area Regional Response Team which integrates state and federal assets and management of releases of oil or hazardous chemicals – including those from domestic terrorism events and natural disasters.
DEQ is designated as the State's lead agency for the environmental cleanup of oil and hazardous material spills. DEQ's specialized spill cleanup personnel are available around the clock to receive notifications from the Oregon Emergency Response System (OERS). DEQ staff prioritizes these notifications for further action based on the threat to public health and the environment. Further actions may involve any of the following: serving as the state on-scene coordinator for large, complex spills involving multiple state and federal agencies; providing technical assistance to responsible parties who clean up their own spills, and coordinating actions of other agencies and providing oversight to ensure adequate cleanup of more significant spills. Spill cleanup staff also gather evidence for enforcement actions as necessary, and review or document cleanup of spills and releases. In addition to responding to oil and hazardous material spill events, spill cleanup staff also arrange for the cleanup of illegal drug labs at the request of law enforcement agencies.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-15 LAND QUALITY PROGRAM NARRATIVE
The Emergency Response and Preparedness Program encompasses a Marine Oil Spill Prevention program designed to protect the waters of the state and aquatic life and habitat from damage caused by petroleum spills from ships and marine facilities. Oil spill prevention staff work to prevent spills and to ensure damage is minimized when they do occur by: requiring risk and hazard analyses at marine facilities to reduce the number of releases; ensuring marine facility and vessel spill preparedness by requiring contingency plans; reducing the environmental impact of marine spills by establishing pre-approved response strategies and coordinating quick and appropriate response to spills that do occur.
Projects and Issues
Development of the DEQ Emergency Operations Plan: After the events of September 11, 2001 and the 2005 hurricane season, the need for DEQ to develop a plan of detailed policies and procedures for responding to emergencies of all types became apparent. In order to better serve the citizens of Oregon, should either a natural or man made disaster occur, DEQ has developed a plan so its personnel can respond quickly in the most aggressive and efficient manner with specialists in all technical and geographical areas. As part of this effort, the agency has expanded EMERGENCY RESPONSE AND PREPAREDNESS its 24 hour per day, 7 days a week emergency contact program to include its top PROGRAM OBJECTIVES administrators.
Emergency Support Functions: The program has been working closely with Provide time critical emergency containment other state agencies, particularly the Office of Emergency Management, Oregon and/or cleanup of chemical and oil spills – Department of Transportation, and Human Services, Health Division to define and including those caused by terrorist action or coordinate our roles in oil, hazardous materials and other local, state and natural disaster. national emergencies. Ensure private industry, local, state and Response to Emergency Notifications: The program received more than 2300 federal chemical emergency response plans emergency notifications in each of the last two years. Each notification requires are integrated, tested and improved. a minimum level of response to determine the risk to public health and the environment. During this time DEQ has reduced existing staff resources while Focus on outreach and coordination with striving to adequately prevent spills and to be available to respond to significant local emergency response agencies such as and major events. Approximately 40% of these notifications require additional fire, HAZMAT teams and police. follow-up and coordination by DEQ personnel. Implement and test the DEQ Emergency Development of Incident Management Teams: Although dedicated staff Operations Plan. resources for emergency response activities are limited, we rely on on-call staff Decrease the incidence of spills or releases from other DEQ programs to provide After Hour Duty Officer response to Oregon which impact human health and the Emergency Response System (OERS) notifications, and to support DEQ response environment. and field actions at major incidents.
Insufficient Emergency Response and Preparedness Staff Resources: Despite
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-16 LAND QUALITY PROGRAM NARRATIVE
the efforts listed above to prepare DEQ and the state to address the environmental consequences of major emergencies, our current response resources are not sufficient to provide coverage for significant events such as last spring’s floods or when multiple emergencies occur simultaneously, and they would be inadequate to respond to a catastrophe such as a tsunami. Policy Package 131 (not included in the Governor’s Recommended Budget) proposes to add staff to enable us to undertake more preparedness and planning and to provide backup response resources. Oil Spill Contingency Planning: Oil spill contingency plans continue to be reviewed and personnel continue inspections and participate in the planning, execution and review of emergency drills and exercises. Four Liquefied Natural Gas (LNG) proposals are currently under consideration. Both LNG ships and LNG facilities will require DEQ approved contingency plans.
Trends in Workload:
In light of the events of September 11, 2001, and the 2005 hurricane season, DEQ has initiated efforts to coordinate with other emergency programs and respond to threats not anticipated in the past. DEQ continues to develop an Emergency Response and Recovery Plan to ensure that our employees are utilized in the best possible way, should a disaster occur. DEQ coordinates with several state agencies to ensure that we can respond on behalf of the State in the most aggressive and efficient manner. During a multi-agency tsunami exercise this past year several areas in need of improvement were identified. Much of this increased effort has resulted in closer coordination with the US Department of Homeland Security, the US EPA and US Coast Guard, and with the State Offices of Homeland Security and Health Services. The most critical coordination effort has been with Health Services. Under national emergency response plans and the State of Oregon Emergency Operations Plan, DEQ is responsible for emergency support functions related to the release of chemicals to the environment. Similarly, Health Services is responsible for Emergency Support functions related to biological and radiological releases. Chemical, biological and radiological release are so interrelated with regard to sampling, monitoring, lab analysis and response that our two agencies need to work more closely together. A portion of this workload has been absorbed by current DEQ personnel, but there is a need for additional personnel to assist with planning and implementation in the regional offices. Policy Package 131 (not included in the Governor’s Recommended Budget) would provide critically needed resources.
III. 2009-11 BUDGET ISSUES
A. Environmental Cleanup – Industrial Orphan Site Account
Funding for the state’s industrial Orphan Site Account is a significant and ongoing issue. The 1989 Oregon Legislature established the Orphan Site Account to pay for the cleanup of contaminated orphan sites – where responsible parties are not known or are unable or unwilling to conduct needed cleanup. The orphan site cleanup program was designed to be funded with long-term bonds financed by two fee sources. However, using the petroleum load fee for cleanups was determined to violate the constitutional dedication of gas taxes to highway purposes, so
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-17 LAND QUALITY PROGRAM NARRATIVE
the Legislature has relied on General Funds for bond debt service since 1995. Because funding is limited, only sites designated as high environmental priorities are cleaned up using Orphan Site Account funds. Ninety-five cleanup sites have been declared orphan since the program was initiated in 1991. In DEQ’s 2007 budget request, we estimated we would need $7.5 million for orphan site cleanup work over the next four years (2009-11 and 2011-13). The Legislature funded a bond sale at a lower amount – $4.5 million. DEQ faces three Orphan Site Account funding issues in 2009-11 and beyond:
1) DEQ needs to be able to pay for on-going “operations and maintenance” (O&M) of cleanup remedies installed at orphan sites, such as groundwater treatment systems, which are necessary to protect public health and complete cleanup. At these sites, hazardous substances have impacted groundwater sources for community and private drinking water supplies and therefore are public health concerns. Without continued operation of these currently installed treatment systems, affected residents would be drinking contaminated water.
2) DEQ is also obligated, by federal law, to contribute 10% of the costs of remedial action at federal Superfund (NPL) sites as well as 100% of long term O&M costs. With completion of cleanup activities at McCormick and Baxter and other federal Superfund sites, these costs will also be significant.
3) DEQ estimates that as of the beginning of the 2009-11 biennium there will be about 15 to 20 orphan sites requiring additional investigation and cleanup. In addition to the designated orphans, there are several more identified as potential orphan sites, and an unknown number may come to our attention in the future.
To address the first two issues, Policy Package 133 (not included in the Governor’s Recommended Budget), Orphan Site Cleanup Operations & Maintenance, proposes a General Fund appropriation to provide funding for 2009-11 and into the future for on-going operations and maintenance costs. This would reduce the amount requested in future bonds sales, which would be used primarily for investigation and cleanup.
B. Emergency Response & Preparedness Program Funding
Until 2003, General Fund was the primary funding source for the emergency response program. In order to help address statewide budget shortfalls, General Funds were shifted to other purposes and the program has been funded primarily with Hazardous Substance Remedial Action Fund (HSRAF). This shift was part of the reason for environmental cleanup program cuts in 2005-07. Cleanup program funding has been stabilized, however there is not sufficient HSRAF revenue to fund the additional emergency response and preparedness resources DEQ believes are necessary. To address this issue, Policy Package 133 (not included in the Governor’s Recommended Budget) requests two positions, funded by General Funds (67%) and HSRAF cost recoveries and fees (33%).
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-18 LAND QUALITY PROGRAM NARRATIVE
C. Drop in Heating Oil Tank Revenues
In 2007, the Legislature enacted Senate Bill 106, which increased the filing fees DEQ charges to fund its oversight of third party certifications of tank decommissionings and leaking tank cleanups. In addition to provide funding for regular program costs, the increase was also intended to pay for an additional staff position to enable DEQ to provide adequate inspection and auditing of tank service providers. In fiscal year 2008, however, revenues have been far below the projected level, because the volume of tank cleanups has decreased as a result of decreased home sales. Consequently, revenues have not been sufficient to hire the additional staff person. On the other hand, because the volume of certifications has declined, existing staff have been able to take on the auditing function for the time being. When the housing market recovers, we expect that both the number of certifications and revenue received will return to the projected level, at which point the newly authorized position could be filled.
IV. ACCOMPLISHMENTS AND EXPECTED RESULTS
A. 2007-09 Major Accomplishments (Projected):
Solid Waste
Initiated a green building project to develop and promote best management practices for materials use in design, demolition, remodeling, and construction of residential buildings. Reducing waste in the residential building industry is a major focus area for DEQ’s waste prevention strategy. Expect to complete a supplemental greenhouse gas inventory to account for greenhouse gas impacts associated with the provision of products and materials. Worked with the climate change community to gain an understanding of and support for materials-related greenhouse gas reduction strategies. Established a statewide recycling program for electronic wastes funded by manufacturers using a product stewardship approach. The program will provide convenient and accessible statewide collection and environmentally sound recycling for over 12 million pounds of electronic waste in 2009. Updated composting facilities rules to promote environmentally sound composting and increase recovery of organic wastes. Worked with contractors and retailers to continue collection of mercury thermostats.
Hazardous Waste
Received a one-time Implementation Summary from over 350 Oregon businesses detailing how they reduced toxic chemicals and hazardous waste as part of the toxics use and hazardous waste reduction program. DEQ staff also added new features and tools to the
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-19 LAND QUALITY PROGRAM NARRATIVE
full Web-based reporting system in preparing to add another 300 businesses that must plan and report their toxic chemical and hazardous waste reductions. Oversaw the safe processing of the last 3000 Sarin projectiles. This constituted the last of the 1014 tons of Sarin nerve agent in the Umatilla stockpile. Oversaw the safe processing of 62,425 munitions (14,513 rockets; 36,065 projectiles; 11,685 land mines; 157 bulk tanks) and the destruction of all 364 tons of VX nerve agent in the Umatilla stockpile. Reduced the amount of paper used for annual reporting by providing excellent customer service to companies explaining how to use the electronic reporting system. Ninety-one percent of all reporters used the electronic system.
Underground Storage Tanks
Conducted 1200 underground storage tank compliance inspections, helping to ensure the safe operation of these facilities. Logged and screened 282 reported leaks for regulated underground storage tanks, plus over 3,300 reported leaks from heating oil tanks. The heating oil tank program exceeded 20,000 cumulative closures in February 2008. Approved 370 cleanups of regulated tanks. To date, DEQ has closed 5,860 sites and exceeds the national average (78 percent) for site closures with an 83 percent closure rate. Worked with local communities to reuse abandoned or underutilized properties. Three of these cleanups received recognition at the Oregon’s Brownfields Conference. One, Sequential Biofuels, received a national Phoenix award (for excellence in brownfield redevelopment) as a blighted former service station became the Nation’s first biofuel-only services station.
Environmental Cleanup
Provided oversight on approximately 300 voluntary cleanups (including 130 sites in the Independent Cleanup Pathway). Cleanup actions were completed at about 105 voluntary sites. Provided additional oversight on about 60 high priority, orphan and dry cleaner program sites; cleanup actions were completed at 11 of these sites. Completed 14 prospective purchaser agreements to assist in returning contaminated properties to productive use.
Emergency Response and Preparedness
Provided technical assistance or cleanup oversight for major spills or releases of oil and/or hazardous materials including tanker truck accidents, marine spills, rail accidents, airplane crashes, the winter 2007 Nehalem River flood recovery response action, and the New Carissa Wreck Removal.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-20 LAND QUALITY PROGRAM NARRATIVE
Reviewed facility and vessel oil spill contingency plans, conducted inspections, and participated in drills and exercises to assure compliance and readiness of industry and government agencies to respond to emergencies. Completed and implemented the Emergency Response and Recovery Plan, including training, exercising and revising the plan as necessary.
B. Expected Results In the 2009-11 Biennium
With the proposed budget resources, including policy packages, DEQ expects to undertake these efforts and accomplish the following:
Solid Waste
Waste Prevention Provide grants for waste prevention and reuse programs as actions toward meeting statewide waste generation goals. Provide training and technical assistance to community programs and business/industry on waste prevention and resource efficiency. Implement the new Waste Prevention Strategy and the Business Waste Prevention Packaging outreach and education program that expands prevention efforts and assists businesses in reducing packaging requirements. Provide grants for recycling and waste recovery programs that will assist in meeting the statewide recovery goals. Provide technical assistance to local governments and businesses to implement successful recycling programs, including composting of organics and construction and demolition wastes. Increase efforts toward establishing food waste composting facilities. Measure and report on statewide recovery efforts. Complete a waste composition study and assessment of materials recovery efforts to identify opportunities to improve waste prevention and recovery. If Legislative Concept 888 and policy package 132 (Product Stewardship for Waste Products) are approved, develop and implement a product stewardship system that can effectively incorporate toxic and difficult to manage products over time. The system will require producers to take responsibility for management of their products at the end of their useful life and show progress in reducing the use of toxics in their products as well as improve reusability and recyclability.
Safe Management Coordinate and help fund local household hazardous waste collection events across the state. Fund local household hazardous waste planning and facility construction grants. Continue to implement a mercury/toxics collection strategy to assist households and small businesses with financial and logistical assistance to remove mercury and mercury containing products from use. Permit, inspect and assure compliance by solid waste disposal facilities, waste tire storage and disposal facilities, and compost facilities.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-21 LAND QUALITY PROGRAM NARRATIVE
Launch at least two new product stewardship initiatives with industry and local government partners based on product priorities to be identified in the Household Hazardous Waste Priority Assessment. Continue implementation of electronics recycling program.
Hazardous Waste
Waste Prevention Provide on-site technical assistance to several hundred small businesses. The projects will be developed based on geographic, cross media, and industry specific priorities. Work with regulated community to reduce the use of toxic chemicals through chemical substitution, recycling, process changes and other reduction strategies. Promote zero waste generation through product take-back programs and recycling.
Safe Management Provide ongoing regulatory compliance oversight of chemical agent operations at the Umatilla Chemical Agent Disposal Facility and Umatilla Chemical Depot. Oversee the processing of 1750 bulk containers and the destruction of 1554 tons of HD blister agent at the Umatilla Chemical Agent Disposal Facility. Continue to inspect 50 large facilities in accordance with our commitments to EPA and 125 smaller facilities. (The Governor’s Recommended Budget reduces compliance staff by 10%, resulting in a corresponding reduction of inspections.) Renew all commercial hazardous waste treatment, storage, and disposal facility permits. Continue technical assistance visits for small businesses, and provide informational workshops and group presentations on hazardous waste activities. Continue implementation of the 2005 TURHWAP amendments by working with approximately 300 companies to develop toxic use and hazardous waste reduction plans or implement environmental management systems.
Underground Storage Tank Program
Waste Prevention Maintain 134 licenses for tank service companies and 328 licenses for individual project supervisors. Respond to an estimated 10,000 technical assistance requests from homeowners and real estate agents on heating oil tanks. Conduct approximately 1200 facility inspections to make sure tanks are operating properly to avoid leaks of gasoline; issue field citations or initiate enforcement actions for more serious violations.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-22 LAND QUALITY PROGRAM NARRATIVE
Safe Management Respond to a projected 6,000 technical assistance requests from tank owners and service providers on compliance regulations. Conduct 1200 inspections of UST facilities for compliance with operation and maintenance requirements, with an emphasis on leak detection.
Cleanup Log and screen an estimated 150 reported leaks from regulated tanks and an estimated 3,300 leaks from heating oil tanks. Approve a projected 300 cleanups for regulated tanks and a projected 3,800 heating oil tank cleanups certified by service providers. Respond to an estimated 6,000 technical assistance requests from responsible parties and consultants on cleanup projects.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-23 LAND QUALITY PROGRAM NARRATIVE
Environmental Cleanup
Cleanup With essential budget level resources, most hazardous substance cleanup activities are expected to remain at the 2007-09 operating level. Specifically, with the essential budget level funding, DEQ will:
Provide oversight at approximately 300 active voluntary cleanup projects and 100 higher priority, dry cleaner and orphan projects; maintaining an average of 50 projects on the waiting list. Complete investigation and cleanup at approximately 225 sites. Add approximately 350 new sites to the Environmental Cleanup Site Information Database (ECSI). Add a projected 50 sites to the confirmed release list and/or inventory of sites requiring further investigation or cleanup. Investigate 20-30 local government brownfield sites using EPA funding, at least half of which will be targeted at rural and/or economically distressed areas. Support the Governor’s Industrial Lands Certification program by completing reviews of contamination assessments at an estimated 30-40 candidate sites. Complete approximately 15 requested prospective purchaser agreements to assist returning contaminated properties to productive use.
However, the state’s Industrial Orphan Site Account balances will not be adequate to provide funding to investigate and cleanup up high priority contaminated sites, continue operating already installed treatment systems, and meet the State of Oregon’s obligations at federal Superfund (NPL) orphan sites. DEQ has developed Policy Package 133 (not included in the Governor’s Recommended Budget) to address long-term operations and maintenance costs associated with sites where remedies have been installed. This will provide adequate funds for ongoing investigation and cleanup work of high priority sites at already identified orphan sites. Without the requested General Funds, there will be little funding available for continuing investigation and cleanup during 2009-11.
Emergency Response and Preparedness
Waste Prevention Continue risk and hazard analysis to prevent marine oil spills at petroleum-handling facilities. Review and approve vessel and facility oil spill contingency plans required under the state's oil spill prevention statutes. Participate in approximately 24 industry oil spill drills and exercises. Maintain and improve measures to prevent introduction of aquatic invasive species into Oregon waterways in conjunction with the Legislatively-established “Oregon Task Force on the Shipping Transport of Aquatic Invasive Species”.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-24 LAND QUALITY PROGRAM NARRATIVE
Cleanup Continue to receive and prioritize the approximately 2,300 spill notifications received annually. Maintain existing capability to respond to significant spill events in each of DEQ's regions. Refine and enhance the ability of DEQ and its federal partners at USEPA and US Coast Guard to respond to oil and hazardous materials spills including national incidents involving chemical terrorism or natural disasters.
Currently, the regional offices each have one State On-Scene Coordinator, and no other dedicated FTE available at the regional level for emergency preparedness or response. To address the shortage of staff resources in regional offices to prepare for a respond to emergencies, DEQ is proposing Policy Package 131 (not included in the Governor’s Recommended Budget), Emergency Preparedness and Response.
V. REVENUE SUMMARY
Solid Waste
The Solid Waste Program is funded entirely by fees. The solid waste disposal fee is charged on solid waste disposed at municipal solid waste sites in the state or generated in Oregon and transported out of state. Disposal fee revenue supports the solid waste management program including programs to promote waste prevention and recycling statewide. Permit fees are assessed on all facilities accepting solid waste for disposal and vary with type of facility and volume of waste disposed. Permit revenue supports compliance assurance, permitting and waste reduction activities, including partial funding of the Oregon Recycling Act. A small amount of waste tire revenue comes from waste tire carrier and storage permit fees, which are used for waste tire storage site monitoring, cleanup and enforcement. Beginning in 2008, two new fees provide funding for the electronics recycling program established by the Legislature in 2007. The Oregon Electronics Recycling Law (HB2626), established a registration fee, to be paid by all manufacturers who sell “covered electronic devices” in the state. Rates set in the bill are in effect through 2011. It also authorized DEQ to establish a recycling “fee” to cover the costs of a contractor-operated statewide recycling program. The recycling fee is paid by manufacturers who choose to participate in the state contractor program, rather than to provide recycling services themselves. Finally, the General Fund appropriation to Land Quality was increased in both 2005 and 2007 to fund the increased rent costs for DEQ’s new laboratory space. In Land Quality, the Solid and Hazardous Waste programs are the primary users of laboratory services.
Hazardous Waste
The Hazardous Waste Program is funded by a variety of sources, including a General Fund appropriation, fees, cost recovery, and federal grants. Hazardous waste fee revenues includes assessments on businesses generating hazardous waste, based on the volume of waste generated and the manner in which the waste is treated or disposed; Hazardous Substance Possession fees collected by the State Fire Marshal under the Community Right-to-Know laws for support of toxics use reduction; fees assessed on each ton of hazardous waste taken in to the hazardous waste
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-25 LAND QUALITY PROGRAM NARRATIVE
management facility near Arlington for treatment or disposal; and annual compliance and permit fees assessed on facilities that treat, store or dispose (TSD) of hazardous waste. This revenue supports a variety of program activities including development of administrative rules, technical assistance, toxics use reduction, compliance assurance, complaint response, and program management. Solid waste disposal fees also pay for hazardous waste staff to provide technical assistance to generators of smaller quantities of hazardous waste, known as conditionally exempt generators.
General Fund revenue supports all program activities, including technical assistance, compliance and program management. The program is also authorized to collect cost recovery revenue on certain TSD activities: processing new and renewal permit applications and for TSD corrective actions. Federal grant funds support the development and implementation of authorized hazardous waste management programs administered by the State and for DEQ technical analysis.
DEQ’s oversight of activities at the Umatilla Chemical Agent Disposal Facility is funded through a cooperative agreement with the US Army. The agreement pays for administration and modification of the hazardous waste and air contaminant discharge permits, compliance, enforcement and public outreach.
Underground Storage Tanks
The Underground Storage Tank Program is funded from several sources including fees, cost recovery, penalties and federal grants. The largest funding source for Underground Storage Tank (UST) compliance assistance and oversight fee is the annual per tank compliance fee. Additional revenues come from permit modification and tank installation fees charged to tank operators. We also charge license fees to “service providers” – the contractors and supervisors who install, remove, test, or perform cleanups of underground storage tanks. These licensing fees are charged to service providers working on regulated tanks, as well as on heating oil tanks. The fees pay DEQ’s costs related to licensees, including test development, issuing licenses and enforcement. Federal grant funds from EPA are used for UST compliance assistance and oversight. The amount of federal funding has been increased in order to help states meet the requirements of the Federal Energy Policy Act enacted in 2005.
Most of the funding for the heating oil tank program comes from filing fees paid by home owners or other persons requesting certification of a heating oil tank decommissioning or tank cleanup. A portion of funding for this program comes from licensing fees charged to heating oil tank service providers.
The Leaking Underground Storage Tank (LUST) program – the investigation and cleanup of petroleum leaks from underground storage tanks – is paid for with federal funds from the federal LUST Trust Fund and cost recoveries from responsible parties whose tank cleanups DEQ oversees. During the 2007-09 biennium, EPA has made supplemental awards to help reduce the backlog of sites not cleaned up, typically due to lack of
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-26 LAND QUALITY PROGRAM NARRATIVE
viable responsible parties to do so. A significant portion of these funds will be expended in 2009-11. In addition, the LUST program receives some hazardous waste disposal fees in order to provide the 10% match for its federal grant.
State statute authorizes DEQ to retain penalties received for violation of statutes in any of the three tank programs – UST compliance, heating oil tanks or leaking USTs – and to use the funds to pay program costs. These penalties come from “traditional” enforcement actions as well as the expedited penalties (field tickets), authorized on a pilot basis in 2001 and made permanent by SB 104 in 2007 .
Environmental Cleanup
Environmental cleanup activities are funded by cost recovery, fees and federal grants. The environmental cleanup program is designed such that most of DEQ's costs are be financed through cost recovery from the parties performing cleanups. DEQ recovers costs for both environmental cleanup oversight and, if necessary, the cost of contractors hired to perform cleanup. Like the Hazardous Waste, Leaking Underground Storage Tank and Emergency Management programs, the Environmental Cleanup Program also receives revenues from hazardous waste disposal fees collected at the hazardous waste landfill near Arlington. The disposal fees used for cleanup and emergency response are directed to the Hazardous Substance Remedial Action Funds (HSRAF). Finally, fees paid by dry cleaning facility operators pay for site assessment and/or cleanup of qualifying dry cleaner sites.
The Orphan Site Account funds cleanups where responsible parties have not been identified, or where they are unable or unwilling to finance the cleanup. It has two components: The Solid Waste Orphan Site Account is funded by a component of solid waste tipping fees. The Industrial Orphan Site Account is intended to be financed by long-term bonds, but proceeds remaining from the most recent issue (April 2008) will not be sufficient to cover both ongoing operations and maintenance and investigation and cleanup costs. The Agency Request Budget proposes to supplement the fund with a General Fund appropriation to support operations and maintenance work (Policy Package 133 - not included in the Governor’s Recommended Budget). In the essential budget level, expenditures are funded by revenues from two sources: the balance of the 2008 bond issue and cost recoveries of funds previously expended on industrial orphan sites.
Environmental Cleanup programs receive federal funds primarily from EPA for several purposes, including development and administration of cleanup programs, general support of efforts to redevelop brownfield sites, federal-level site assessments and brownfield site assessments, and to enable DEQ staff to participate in decisions related to EPA cleanups of Superfund sites in Oregon. In 2007-09, site assessment funding was supplemented by an appropriation of federal Clean Water Act monies (called 104(b)3 funds, for the section of the law) and these expenditures continue in the 2009-11 budget.
Emergency Response and Preparedness
Emergency response and preparedness and oil spill prevention are funded by cost recovery, fees, federal grants and hazardous waste disposal fees (HSRAF). As a result of General Fund reductions made permanent in the 2003-05 budget, the program no longer receives a General Fund
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-27 LAND QUALITY PROGRAM NARRATIVE
appropriation, and Hazardous Substance Remedial Action Funds (HSRAF) have been used instead. DEQ recovers from responsible parties the cost of responding to spill events whenever possible, but these revenues make up only a small portion of the cost of maintaining readiness of emergency events. Two other sources are available to help pay for specific kinds of events: Petroleum load fees are dedicated to highway spill cleanups, and drug lab asset forfeiture funds (when available) pay for cleanup of illegal drug labs. Emergency response costs not covered by cost recovery or these dedicated funds, are now paid for by HSRAF, which reduces funding for long term cleanup activities. Policy package 131 (not included in the Governor’s Recommended Budget) proposes to increase emergency response and preparedness staff resources by returning some General Funds to this program’s budget. Oil Spill Prevention fees, which are levied on facilities and vessels handling petroleum products at ports and rivers, pay for oil spill prevention and preparedness activities.
VI. SUMMARY OF POLICY PACKAGES
Electronics Recycling Law Implementation, Policy Package 082
(Note: This package was requested by DEQ as policy package 134, but has been included in the Governor’s budget as package 82, which carries forward limitation approved by the September 2008 Emergency Board.)
This package requests professional services limitation to cover the 2009-11 costs to be paid to the contractor selected to run the statewide electronic waste recycling program. This cost was not included in the fiscal impact statement for 2007 HB 2626, because there was too little information to make a reasonable estimate. As a result, the costs are not included in the 2009-11 essential budget level. The actual cost will be covered by recycling fees from those manufactures choosing to participate in the state contractor program.
Emergency Preparedness and Response, Policy Package 131
(Note: This package was proposed by the Department, but not included in the Governor’s Recommended Budget)
This policy package improves DEQ's emergency preparedness by adding two FTE to DEQ’s regional offices. The additional positions will increase DEQ’s bare-bones response capabilities by (1) adding back-up State-on-Scene Coordinators (2) allowing DEQ to develop relationships with local governments and key stakeholders. Such outreach, training and coordination is essential to effective catastrophic planning and maintaining a high degree of readiness. The package also complements OEM’s efforts to regionalize preparedness, training and exercise activities. General Fund is requested to pay for two-thirds of the cost of these positions because the hazardous waste disposal fees (Hazardous Substance Remedial Action Fund, or HSRAF) currently funding the program are insufficient to support additional emergency response positions and because the use of HSRAF is not authorized for all proposed emergency preparedness activities. The remainder of the costs could be funded by HSRAF, primarily from increased cost recoveries.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-28 LAND QUALITY PROGRAM NARRATIVE
Product Stewardship for Waste Products, Policy Package 132
This package will provide resources to enable DEQ to work with stakeholders to develop product stewardship policy and to draft legislation for the 2011 session. Product stewardship programs require producers of products to take responsibility for managing their products at the end of their useful life. An example is Oregon’s electronic waste recycling program established by the 2007 Legislature. Other types of waste products could also be better managed through a product stewardship program. Product stewardship legislation would provide producers an efficient, effective, and predictable system for managing multiple waste products and adding more over time. The package proposes to add two positions to develop policies and principles and screen products to develop product stewardship legislation for 2011. The positions will be paid for with solid waste disposal fee revenue for the 2009 – 11 biennium. Once a product stewardship framework is developed and adopted and specific products are part of the system, administrative fees paid by producers of the products will provide the revenue to support the new positions.
Orphan Site Cleanup Operations & Maintenance, Policy Package 133
(Note: This package was proposed by the Department, but not included in the Governor’s Recommended Budget)
This policy package is necessary because the balance in the industrial Orphan Site Account is insufficient to both maintain and operate remedies already installed at orphan cleanup sites and to perform investigation and cleanup at sites where remedies are not yet in place. General Funds are requested to pay for a portion of operation and maintenance (O&M) and monitoring costs for orphan sites where treatment systems or other measures to protect public health and the environment have been installed or constructed. The request would also provide funding to meet Oregon’s obligation for long-term O&M costs at federally-funded cleanup sites. This would allow DEQ to use the remaining fund balance in 2009- 11 to pay for the balance of projected O&M costs and to continue investigation and cleanup at other sites where the remedy has not yet been installed or completed. Including a General Fund appropriation in DEQ's Essential Budget Level would provide stable funding for on-going O&M costs in future biennia, and reduce the amount of future bond issues.
LQ-Narrative ___ Agency Request X Governor's Recommended ___ Legislatively Adopted Budget Page ____ 6-29 LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Solid Waste Disposal Fee
This fee is charged on solid waste disposed in the state or generated in Oregon and transported out of state for disposal, at a rate of 81 cents a ton. The fee is based on the waste amounts reported by disposal facility operators and transporters. A separate disposal fee of 13 cents a ton, collected to provide for cleanup up solid waste orphan sites, is included in the “Orphan Site Account - Solid Waste Sites” narrative.
Revenues support the management of solid waste, including programs to promote and enhance waste prevention, reuse, recycling, household hazardous waste management, groundwater protection at disposal facilities, and other safe management requirements statewide.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $3,070,450 $8,459,726 $1,279,334 $689,537 $9,561,306
7/1/09 - 6/30/11 $3,089,180 $10,003,192 $1,309,386 $1,972,647 $9,810,339
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-30 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Solid Waste Permit Fees
Collection of Solid Waste Permit Fees is authorized under ORS 459.235 and rates are established by Oregon Administrative Rules, Chapter 340, Division 97. Fees are assessed on all facilities accepting solid waste for disposal and vary with the type of facility (e.g., landfill, transfer station, composting or treatment facility, etc.) and the volume of waste disposed. Revenues fund compliance assurance, permitting and waste reduction activities.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $990,374 $3,889,282 $656,415 $299,007 $3,924,234
7/1/09 - 6/30/11 $1,099,462 $4,561,019 $749,901 $437,917 $4,472,663
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-31 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Waste Tire Fees
The waste tire fee, $1 for each new replacement tire sold, was collected from January 1988 through September 1992. Fees were used to carry out provisions of the waste tire bill including storage site cleanup assistance, promoting markets for re-use and recycling of waste tires, permitting, and program administration. Beginning July 1, 1992, revenues were no longer used for reimbursement of waste tire reuse expenses. Legislative action during 2003 transferred $625,000 of the existing fund balance to the General Fund.
The remaining tire fee revenue now supports a minimal waste tire program of tire storage site monitoring and enforcement and, when there is sufficient revenue, cleanup. Revenue forecasts for this fund are based on estimates of waste tire carrier and storage permit fees and interest earned on the remaining account balance.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $33,608 $15,800 $3,872 $23,249 $22,287
7/1/09 - 6/30/11 $32,824 $13,300 $3,112 $24,375 $18,637
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-32 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Electronic Waste Fees (Covered Electronic Devices Fund)
Oregon’s Electronics Recycling Law enacted in 2007 (House Bill 2626) creates and finances a statewide collection, transportation, and recycling system for televisions, desktop and portable computers, and computer monitors (covered electronic devices). Beginning January 2009, the system will provide recycling options for households, small businesses and nonprofits, will be financed by manufacturers and must be available at no charge to consumers. The law established two new fees to pay for the program:
A manufacturer registration fee, assessed on all manufacturers selling covered electronic devices in the state. The law establishes registration fee categories, defined by the manufacturer’s percentage of market share of covered electronic devices sold in the state in the previous calendar years. The registration fee is intended to cover DEQ’s administrative costs, except for the administrative costs associated with the contractor program DEQ is required to set up to provide recycling services for those manufacturers who do not provide their own recycling programs. Based on 2008 registrations, DEQ estimates that the registration fee will generate about $379,000 per year. The fee is collected annually (beginning 2008). A recycling fee, to be assessed on all manufacturers who participate in the contractor program (i.e., manufacturers who choose not to establish their own or join a manufacturer’s group recycling program). The fee to individual manufacturers participating in the contractor program will be based on their “return share” or “market share,” if they are a television manufacturer. Publicly available data will be used initially and then sampling return data in Oregon’s program will be used when available. The amount of revenue to be raised through the recycling fees will be the cost to operate the contractor program, including the contractor’s costs for collection, transportation, recycling and administration, and DEQ’s cost to oversee the contractor program. The revenue estimate for 2009-11 is set to cover the limitation requested in Policy Package 082 in addition to DEQ costs.
The law also established a fund, the Covered Electronic Devices Account, into which the two fees are to be deposited. Interest earned is credited to the account.
Because revenues are collected to cover a calendar year, the ending balance at the end of the biennium is needed to cover expenditures for the last 6 months of the 2011 calendar year. Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $0 $33,243 ($284,076) $250,832 7/1/09 - 6/30/11 $1,848,554 $9,288,000 $100,279 $2,186,709 $8,849,566
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-33 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Hazardous Substance Possession Fees (Toxics Use Reduction)
This fee, authorized by ORS 453.400 -.402, is paid annually by persons who are required to report chemical possession under the Community Right-to-Know laws. The amount of the fee is based on the type and quantity of the substance possessed in a fee schedule set by the State Fire Marshal. A set amount of revenue transferred to DEQ annually in accordance with expenditures approved by the Legislature. These funds support Oregon's Toxics Use and Hazardous Waste Reduction (TUHWR, sometimes referred to as TUR) program. Hazardous Substance Fees also support debt service for orphan site cleanup bonds; those figures are reported in the “Orphan Site Account – Industrial Sites” revenue narrative. ORS 453.402 requires that separate fee schedules be established for these two activities, as well as for the State Fire Marshal’s Community Right-to-Know program.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $137,021 $984,869 $153,010 $59,126 $909,754
7/1/09 - 6/30/11 $319,542 $985,127 $177,514 $77,048 $1,050,107
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-34 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Hazardous Waste Disposal Fee
ORS 465.375 - .376 assesses a fee on each ton of waste brought into the hazardous waste management facility, near Arlington, for treatment or disposal. One-third of the revenue from this fee funds hazardous waste program management and technical assistance activities; the other two- thirds pay for site cleanups (see separate revenue narrative for the Hazardous Substance Remedial Action Fund). Half of the hazardous waste program revenues from this fee are dedicated by statute to hazardous waste generator technical assistance.
The statute sets a primary rate of $30 a ton for materials defined as hazardous waste or polychlorinated biphenyl (PCB). There are, however, several alternate rates charged when certain conditions are met: Rates graduate downward for large quantities of waste resulting from environmental cleanup and received from a single property or facility, to a low of $2.50 per ton for more than 25,000 tons. Lower rates are also charged for waste treated at the facility so that it no longer meets the statutory definition of a solid waste ($15/ton) and for waste treated to eliminate its hazardous characteristics and certain other wastes ($2/ton).
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $146,225 $746,508 $110,481 $92,568 $689,684
7/1/09 - 6/30/11 $545,283 $750,378 $115,984 $465,690 $713,987
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-35 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Hazardous Waste Generator Fees
There are two fees assessed on regulated generators of hazardous waste. The first is the Generator Identification Fee which is assessed on generators of hazardous waste that are required to obtain a United States Environmental Protection Agency identification number from the DEQ pursuant to federal law. This $200 processing fee is charged once to each generator upon submittal of the application for an identification number. The second fee is the annual hazardous waste generator fee authorized by ORS 466.165. By rule, the fee has two components: (1) a flat fee based on the generator’s status (large or small quantity generator) and (2) an amount that varies based on the volume of waste generated and the manner in which the waste is treated or disposed. ORS 466.165 (3) establishes a base rate of $130 per metric ton for the calculation of the second fee component. It also sets a cap on this component of $32,500 a year per generator. Both fees are used to support the Department's generator inspection, compliance and enforcement programs.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $207,252 $2,837,695 $427,809 $104,505 $2,512,633
7/1/09 - 6/30/11 $561,657 $3,079,578 $451,920 $513,884 $2,675,431
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-36 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Hazardous Waste Treatment, Storage and Disposal (TSD) Fees
Fees and cost recovery charges are assessed on facilities that treat, store or dispose (TSD) of hazardous wastes. Fees include annual compliance determination fees for various categories of treatment, storage and disposal activities and for modifications to permits. Legislation passed in 1997 required the Department to recover from facilities its actual costs of corrective action (cleanup) and processing applications for new permits and permit renewals. The revenue collected through fees and cost recovery support the permitting, plan review, hydrogeologic assessments, compliance monitoring, legal and technical engineering review of hazardous waste facilities.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $178,277 $674,505 $117,988 $48,419 $686,375
7/1/09 - 6/30/11 $287,916 $789,476 $119,720 $257,822 $699,850
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-37 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Leaking Underground Storage Tanks Cost Recovery
The Department is required, under the terms of EPA's Grant for Leaking Underground Storage Tank (LUST) Trust Funds, to recover from responsible parties the LUST funds spent on cleanup activities, primarily the Department’s oversight costs. Use of the recovered funds is restricted to expenditure on cleanups at sites eligible for LUST funding and special projects approved by EPA.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $595,133 $2,725,173 $438,793 $332,010 $2,549,503
7/1/09 - 6/30/11 $416,626 $2,600,418 $419,037 $156,570 $2,441,437
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-38 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Underground Storage Tank Permit Fees
The Underground Storage Tank Permit Fee was established by the Legislature to pay for activities such as operation, installation and closure permits and compliance inspections. ORS 466.785 sets the current fee at $135 per regulated tank per calendar year. It also authorizes fees for new tank installations ($400) and modifying a permit when the ownership changes ($75).
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $46,570 $1,804,936 $220,772 $372,925 $1,257,809
7/1/09 - 6/30/11 $205,275 $1,503,906 $207,966 $326,208 $1,175,007
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-39 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Underground Storage Tank Contractor Licensing Fees
ORS 466.750 authorizes DEQ to establish licensing programs for companies that provide underground storage tank services and construction supervisors who install, remove or test underground storage tanks. Licensing is also required for cleanup of petroleum leaks. Fees are charged to administer these programs which test development, licensing and enforcement. ORS 466.787 establishes an annual service provider fee of $300 and a biennial supervisor fee of $150.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $187,879 $154,538 $16,473 $217,346 $108,598
7/1/09 - 6/30/11 $226,070 $145,545 $15,775 $249,824 $106,016
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-40 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Heating Oil Tank Filing and Licensing Fees
There are two types of fees associated with heating oil tanks.
(1) ORS 466.872 establishes certification filing fees for heating oil tank cleanups and decommissionings (taking tanks out of service). These fees are currently set at $200 and $75, respectively.
(2) The DEQ also assesses fees to issue licenses to individuals and companies who provide heating oil tank services to homeowners and other tank owners. ORS 466.868 sets an annual fee of $750 for a business engaged in the performance of heating oil tanks services and $75 for each individual charged with supervisory responsibilities.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $107,401 $922,796 $136,036 $97,983 $796,178
7/1/09 - 6/30/11 $20,000 $1,033,834 $150,508 $29,448 $873,878
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-41 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Underground Storage Tanks Compliance and Corrective Action Fund
This fund was established by ORS 466.791 to pay for various activities and financing programs to help clean up underground storage tank (UST) leaks and prevent future leaks. However, fees authorized to provide revenue for this purpose were discontinued due to conflict with the constitutional provision dedicating petroleum revenues to highway uses. The only revenues that continue to accrue to this fund are civil penalties collected from enforcement actions for underground storage tank compliance violations. The Department is authorized to retain these penalties to support administration of the underground storage tank program. The beginning balance also includes funds remaining from petroleum load fees authorized by the Legislature for an UST Insurance study.
A portion of the penalty revenues comes from “expedited penalties” or “field tickets” issued in lieu of formal enforcement for certain violations. In 2007, Senate Bill 104 provided permanent authority to issue field tickets and increased the maximum amounts that can be assessed per violation ($500) and per facility per inspection date ($1500).
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $48,467 $115,000 $20,987 $19,028 $123,452
7/1/09 - 6/30/11 $77,331 $72,500 $17,130 $30,944 $101,757
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-42 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Dry Cleaning Environmental Response Account
Fees paid by the dry cleaning industry are used for cleanup of contamination from dry cleaning facilities and to support a program preventing future releases of dry cleaning solvent into the environment. The Legislature set the current dry cleaner fee structure in 2003. There are four components of the fee: (1) A $500 annual facility fee for any facility that used any solvent prior to 1998; (2) A $500 fee for any facility that uses the solvent perchloroethylene during the fee year; (3) A fee equal to 1% of gross revenue from dry cleaning services; (4) Fees based on solvent purchases: $10 per gallon of perchloroethylene and $2 per gallon of other solvents. In addition, inactive dry cleaner facilities also pay fees in order to qualify for program benefits and sites qualifying for cleanup with fund revenues also pay a deductible that varies with the size of the business. The 2003 bill removed the statutory provision that automatically increased fees when fees collected were less than $1 million a year, the new fee structure has produced only about $750,000 a year.
The fees are used to assist dry cleaners in meeting environmental management requirements; to administer the reporting process; to prioritize cleanup sites; and to perform investigations and cleanups.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $403,351 $1,363,619 $75,654 $157,380 $1,533,936
7/1/09 - 6/30/11 $462,761 $1,333,987 $85,359 $93,889 $1,617,500
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-43 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Hazardous Substance Remedial Action Fund (HSRAF)
The Hazardous Substance Remedial Action Fund (HSRAF) is one of DEQ’s primary revenue sources for addressing environmental contamination. The Department is authorized to use HSRAF to investigate sites potentially requiring remedial action, to oversee cleanup activities performed by responsible parties, to clean up sites when necessary to protect human health and the environment and to pay for administrative costs.
There are four sources of revenue for this fund:
(1) ORS 465.375 - .376 assesses a fee on each ton of waste brought into the hazardous waste management facility, near Arlington, for treatment or disposal. Two-thirds of the revenue from this fee pay for site cleanups; the other one-third funds hazardous waste program management and technical assistance activities (see separate revenue narrative for the Hazardous Waste Disposal Fee). The statute sets a primary rate of $30 a ton for materials defined as hazardous waste or polychlorinated biphenyl (PCB). There are, however, several alternate rates charged when certain conditions are met: Rates graduate downward for large quantities of waste resulting from environmental cleanup and received from a single property or facility, to a low of $2.50 per ton for more than 25,000 tons. Lower rates are also charged for waste treated at the facility so that it no longer meets the statutory definition of a solid waste ($15/ton) and for waste treated to eliminate its hazardous characteristics and certain other wastes ($2/ton).
(2) The second primary source of HSRAF revenue is cost recoveries. DEQ’s cleanup oversight activities and other costs at individual sites are reimbursed by the responsible party, usually the owner or operator. HSRAF monies are spent and cost recoveries sought for work at hazardous substance contaminated sites, both voluntary cleanups and enforcement sites (where the party is under Department order to clean up), as well as for contemporaneous spills. Cost recoveries account for about 85% of the projected 2009-11 HSRAF revenues.
(3) The third source, interest received on the HSRAF balance, is continuously appropriated to the Department.
(4) The fund also contains cost recovery payments received in advance from parties responsible for cleanup. These funds are dedicated to specific projects and are not available for general program use. The reasons for these advance deposits vary from site to site and are the result of negotiation with the responsible parties. In one example, several parties contributed a share of cleanup costs, enabling DEQ to undertake cleanup actions on their behalf, and providing funds for long-term operation of a groundwater treatment system. These revenues account for more than $2.9 million of the projected 2009-11 ending balance.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-44 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
7/1/07 - 6/30/09 $6,874,643 $13,105,334 $2,084,219 $4,140,652 $13,755,106
7/1/09 - 6/30/11 $9,699,251 $15,339,869 $2,446,703 $4,006,383 $18,586,034
Note: $2.9 million of the budgeted 2009-11 ending balance is dedicated to specific cleanup sites. See item (4) above.
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-45 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Orphan Site Account – Industrial Sites
The Orphan Site Account was established in 1989 to fund investigation and cleanup at sites, known as orphans, where the responsible parties are unknown, unable or unwilling to perform cleanup-related work. The Legislature authorized the financing of orphan cleanups with long-term pollution control bonds and initially established three fees to pay debt service on the bonds. The legislation also provided that the fees may be spent directly on orphan cleanups.
The law established two categories of orphan sites – industrial orphans, originally financed by fees on hazardous substances and petroleum, and solid waste disposal sites (landfills), funded by solid waste disposal, or tipping fees. Because of constitutional issues, the petroleum fees are no longer used for orphan cleanups. The solid waste industrial orphan revenues are discussed in the " Orphan Site Account – Solid Waste Sites" narrative.
Revenues for industrial orphan site cleanups can come from four sources: hazardous substance fees, bond proceeds, cost recoveries and interest earnings.
Hazardous Substance Fees: As indicated in the Hazardous Substance Possession Fee narrative, ORS 453.402 authorizes the assessment of hazardous substance fees to help fund the Orphan Site Account, in addition to paying for DEQ’s toxics use reduction activities and the State Fire Marshal’s Community Right-to- Know program. The fees are paid annually by persons who are required to report chemical possession under the Community Right-to-Know laws; the amount of the fee is based on the type and quantity of the substance possessed. The fee schedule is set by the State Fire Marshal, collection administered by the Department of Revenue, and a set amount of revenue transferred to DEQ in accordance with uses approved by the Legislature.
Hazardous substance fees can fund orphan site cleanups in two ways: They are used to fund half of the debt service on the first two orphan site bond issues (1992 and 1994), with the other half funded by General Funds. Just over $1.0 million of hazardous substance fees will be collected for this purpose in 2009-11. Revenues needed for debt service are transferred for payment from DEQ’s debt service accounts. As a result, the net amount in the Orphan Site Account in 2009-11 is $0 and no revenue is shown in the chart below. Hazardous substance fees can also be spent directly on orphan site cleanup expenditures, if there are more revenues available than needed for debt service. DEQ does not expect to have any hazardous substance fees available for direct expenditures in 2009-11.
Bond sales: There have been seven bond sales since 1992, generating about $41.6 million for industrial orphan cleanups. DEQ requested authorization and funding for a $7.5 million bond sale during the 2007-09 biennium; the Legislature authorized a reduced sale of $4.5 million. DEQ is not requesting authorization for an additional bond sale in 2009-11. Instead, Policy Package 133 (not included in the Governor’s Recommended Budget) requests a General Fund appropriation for operations and maintenance of sites where cleanup remedies have been installed. The requested General Fund revenues are not shown in the chart below.
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-46 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Cost recoveries and interest: Revenue estimates below include cost recoveries of previously expended orphan funds – approximately $250,000 in 2009-11. Interest earnings account for about $80,000 of 2009-11 revenues. Note that net revenue during 2009-11 is less than $0, due to inter-fund transfers.
The planned beginning balance on July 1, 2007 will be comprised of both bond proceeds and cost recoveries.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $1,768,615 $3,943,723 $145,581 ($382,556) $5,949,313
7/1/09 - 6/30/11 $2,300,000 ($7,526) $84,444 $55,897 $2,152,133
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-47 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Orphan Site Account - Solid Waste Sites
As described in the Industrial Orphan Site Account revenue narrative, the Orphan Site Account was established in 1989 to fund investigation and cleanup at sites, known as orphans, where the responsible parties are unknown, unable or unwilling to perform cleanup-related work. The legislation authorized the financing of orphan cleanups with long-term pollution control bonds, to be financed with fees, and also provided that the fees could be spent directly on orphan site cleanups. The orphan site legislation established two categories of orphan sites – solid waste disposal sites (landfills) and industrial orphan sites. Industrial orphan funding is discussed in the “Orphan Site Account – Industrial Sites” revenue narrative.
The orphan site legislation authorized the Environmental Quality Commission to establish a separate solid waste disposal, or tipping, fee (ORS 459.236) for solid waste orphan cleanups. Collection of the fee, which was set at 13 cents per ton, began in 1993. Interest earned on the balance is also credited to the fund. 2009-11 revenue estimates include about $1.6 million in fees and about $500,000 in interest earnings.
Statute (ORS 459.236) makes funds from this account available to local government for cleanup of municipal landfills only after the local government contributes a share of the funding specified in ORS 459.311. DEQ can also spend money independently at orphan landfills.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $8,206,334 $1,988,444 $0 $9,380,127 $814,651
7/1/09 - 6/30/11 $7,000,000 $2,102,119 $0 $7,364,658 $1,737,461
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-48 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Highway Spill Fund (including Petroleum Product Withdrawal Delivery Fees)
The petroleum load fee authorized by ORS 465.101-.131 is assessed on each withdrawal of a petroleum product from a bulk facility and for importation of petroleum products in a cargo tank or barge for delivery into a storage tank. The fee, which is established by administrative rule by the Office of the State Fire Marshal, is currently $4.75 per load. A portion of this revenue is transferred to DEQ annually in accordance with expenditures approved by the Legislature.
One of the originally intended purposes of the fee was to fund the state's emergency response program. Because the fee is assessed on petroleum, it has been restricted to highway-related response activities since 1993. When possible, DEQ recovers highway spill fund expenditures from the party responsible for the release and replenishes the fund. The 2009-11 budgeted revenue includes about $68,000 of petroleum load fee and the remaining approximately $85,000 is estimated cost recovery.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $49,641 $157,080 $22,537 $24,613 $159,571
7/1/09 - 6/30/11 $108,756 $153,711 $28,042 $42,539 $191,886
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-49 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Illegal Drug Lab Cleanup Fund
The Illegal Drug Lab Cleanup Fund was established in 1989 to partly fund the Department’s activities to remove and dispose of chemicals and wastes associated with illegal drug manufacturing, when requested by local and state law enforcement agencies.
Revenue comes from three sources: DEQ receives 10% of the net drug-related assets forfeited to the Oregon State Police and 5% of forfeitures to local law enforcement agencies. Contributions from both sources are capped at $250,000. The fund also receives cost recovery from parties responsible for cleanup (e.g., landlords) and restitution from convicted parties when directed by the courts. Revenues from asset forfeitures have dropped off significantly as a result of Measure 3 in 2000.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $41,325 $121,000 $7,758 $19,786 $134,781
7/1/09 - 6/30/11 $157,879 $75,400 $3,944 $113,697 $115,638
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-50 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Oil Spill Prevention Fees
The fees are assessed (ORS 468B.405) on cargo and tank vessel and oil storage and transportation facilities, both on-shore and off-shore. Vessel fees are assessed per trip, which range from $70 for cargo and passenger vessels and up to $100 for barges ships to $1200 for tank vessels over 300 gross tons. Facilities are charged an annual fee of $5,900.
The fees are used to administer the Oil Spill Prevention Act, including the cost of reviewing spill prevention and response plans, inspections of vessels and facilities, conducting training and response exercises, and reviewing and revising the state's oil and hazardous materials spill response plan.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $7,240 $800,477 $106,113 $56,610 $644,994
7/1/09 - 6/30/11 $210,275 $839,421 $114,146 $245,298 $690,252
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-51 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Spill Penalty Funds
DEQ has authority under two chapters of Oregon law to assess civil penalties related to spills of oil and hazardous materials. Unlike most civil penalties, these funds are continuously appropriated to DEQ for expenditure for spill response related activities.
ORS 468B.450-.455 allows penalties to be assessed in cases of willful or negligent discharges of oil into the waters of the state. The penalties are authorized in addition to penalties under other statutes and are intended to be commensurate with the amount of damage incurred. The law established an Oil Spillage Control Fund for receipt and expenditure of these oil discharge penalties. Revenues in the Oil Spillage Control Fund may be used by DEQ for costs incurred in carrying out cleanup activities and for the rehabilitation of affected fish and wildlife.
ORS 466.992 allows the Department to assess penalties against any person who violates a provision of the state's laws and rules covering spill response and cleanup of hazardous materials (ORS 466.605 to 466.680). These penalties are also in addition to penalties under other statutes and may be up to $10,000 a day. These penalties are to be deposited into the Oil and Hazardous Materials Emergency Response and Remedial Action Fund established in ORS 466.670. This fund may be used for the administration and enforcement of the spill response and cleanup statutes, and for emergency cleanup operations.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $38,003 $25,000 $3,983 $24,015 $35,005
7/1/09 - 6/30/11 $17,477 $38,000 $4,126 $15,127 $36,224
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-52 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Hazardous Waste Grant Funds
Section 3011 of the Resource Conservation and Recovery Act (RCRA) authorizes funding to states for the development and implementation of authorized state hazardous waste management programs. A twenty-five percent state match is required for the federal funds.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $1,373,162 $198,198 $0 $1,174,964
7/1/09 - 6/30/11 $0 $1,364,724 $193,782 $16,058 $1,154,884
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-53 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Leaking Underground Storage Tank Trust Funds
In 1986, the U.S. Congress established a $500 million fund, the Leaking Underground Storage Tank (LUST) Trust, for states to use for investigation and cleanup of petroleum leaks from underground storage tanks. These funds are transferred to states via Cooperative Agreements. A 10% state match is required, which DEQ finances with Hazardous Substance Remedial Action Funds (HSRAF). The revenues shown below include about $175,000 of supplemental “cleanups completed” funding, made available to states increase the number of sites cleaned up.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $1,997,217 $276,629 $0 $1,720,588
7/1/09 - 6/30/11 $0 $2,175,116 $278,945 $26,392 $1,869,779
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-54 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Underground Storage Tanks Grant
EPA provides assistance to states for the development and implementation of its underground storage tank regulatory program from two sources. Historically, funds have been provided as authorized by Section 9010 of the Resource Conservation and Recovery Act (RCRA). The funds are used to supplement state funds for activities ensuring that regulated petroleum tanks comply with installation and operational regulations designed to prevent leaks. A twenty-five percent state match is required, which comes from Underground Storage Tank Permit fees. In 2008-09, EPA has supplemented the traditional funding with new LUST Prevention Energy Act funding. These funds are to assist with compliance of the Underground Storage Tank provisions of the federal Energy Act of 2005. The revenue estimates below assume funds will be available in 2009-11 at the same level as in state fiscal year 2009 – $454,000 from both sources combined.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $592,591 $86,840 $0 $505,751
7/1/09 - 6/30/11 $0 $907,999 $131,080 $11,057 $765,862
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-55 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Environmental Cleanup Grants and Cooperative Agreements
DEQ receives funding for environmental cleanup activities through several grants from and cooperative agreements with EPA. Some of the funding is authorized through the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), commonly known as Superfund, to assist state cleanup programs. In 2000, additional funds became available through the passage of federal brownfields legislation.
(1) Environmental cleanup program administration and development. These “Core cooperative agreement” expenditures require a 10% state match. (2) Brownfield funding to enhance the state cleanup program, including site specific assessments to assist local governments and private parties in determining the extent of contamination at selected sites and other activities related to brownfield sites. Awarded as a “State Response Cooperative Agreement.” No match required. (3) Site assessment and discovery, including preliminary assessments of selected medium- to high-priority sites, provision of state perspectives on sites being assessed by EPA, and program administration. There is no matching requirement for these funds. In 2005, Oregon’s Congressional delegation secured an additional $250,000 for site assessment work specifically for Oregon. These funds, available through a section of federal Clean Water Act known as 104 (b) 3, have supplemented DEQ’s site assessment work in 2007-09. We expect to complete expenditure of these funds in 2009-11. (4) Funding for state participation in the cleanup of Oregon sites on the National Priorities, or Superfund, List. These cleanups are conducted by EPA under federal CERCLA cleanup authorities. There is no match on the cooperative agreement funds, although the state is required to provide a 10% match on cleanup costs EPA incurs at sites where there is no private party to finance the cleanup. (5) Funding for characterization and assessment of brownfield sites contaminated with hazardous substances and/or petroleum. The revenue estimate below assumes awards of about $420,000 in 2009-11. (6) DEQ also plans to pursue any other avenues that might become available to assist in cleanup or redevelopment of contaminated or brownfield sites. Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $4,724,674 $575,844 $0 $4,148,830 7/1/09 - 6/30/11 $0 $4,890,068 $608,831 $47,208 $4,234,029
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-56 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Defense-State Memorandum of Agreement (DSMOA)
Many units of the Defense Department require that state environmental agencies enter into an agreement, known as a Defense-State Memorandum of Agreement (DSMOA), in order for the state to be paid for its costs to oversee environmental cleanup at both active and formerly used defense facilities. Oregon entered into such an agreement in 2004. The DSMOA provides funding for DEQ’s direct costs of ensuring that cleanups meet state requirements, as well as associated overhead costs. No matching funds are required.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $259,635 $38,378 $0 $221,257 7/1/09 - 6/30/11 $0 $150,000 $23,631 $1,695 $124,674
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-57 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Superfund Grant - McCormick and Baxter
In most cases, the U.S. Environmental Protection Agency (EPA) spends Superfund monies directly on sites being cleaned up under its Comprehensive Environmental Response Compensation and Liability Act, or CERCLA, authorities. However, since 1995 EPA has granted funds for the McCormick and Baxter Creosoting Company site on the Willamette River in Portland, for DEQ to carry out the cleanup. DEQ expected funding to be terminated following the completion of construction of the third phase of the remedy in 2005. However, in March, 2008, EPA informed DEQ that it would provide funding for continued maintenance of the remedy and for additional monitoring to determine if the remedy is “operational and functional.” The revenue estimate below includes a carryover of the amount awarded in 2008 and an estimate of potential additional funding in 2010. Much of the requirement to match 10% of the cleanup costs has already been satisfied by state expenditures from the Orphan Site Account incurred at the site in the period prior to the additional federal funding.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $0 $0 $0 $0
7/1/09 - 6/30/11 $0 $587,024 $36,236 $2,878 $547,910
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-58 _ LOTTERY, OTHER, AND FEDERAL FUND REVENUE: LAND QUALITY
Federal Funds – Umatilla Chemical Agent Disposal Facility Cooperative Agreement
The Department of Defense has been mandated by Congress to dispose of the Army's chemical stockpile, including the munitions and agents stored at the Umatilla Chemical Agent Disposal Facility.
Federal funds are provided through an annual cooperative agreement between DEQ and the Army. Funds pay for administration and modification of the hazardous waste and air contaminant discharge permits, compliance, enforcement and public outreach.
Summary of Projected Revenues
Actual/Planned Actual/Estimated Actual/Planned Available For Period Beginning Balance Revenue Indirect Cost Ending Balance Program Use
7/1/07 - 6/30/09 $0 $3,589,762 $366,372 $0 $3,223,390
7/1/09 - 6/30/11 $0 $3,389,685 $378,461 $30,190 $2,981,034
LQREVNAR.docx Agency Request X Governor's Recommended Legislatively Adopted Budget Page ______6-59 _ DETAIL OF OTHER FUNDS AND FEDERAL FUNDS REVENUE
Source Fund 2005-2007 Actuals 2007-2009 2009-2011 Legislatively Agency Governor's Legislatively Approved Request Recommended Approved
Land Quality
Dry Cleaning Environmental Response Account OF 1,332,226 1,533,936 1,623,310 1,617,500 0 Electronic Waste Recycling OF 0 250,832 8,857,000 8,849,566 0 Hazardous Substance Fees OF 1,049,112 909,754 1,061,936 1,050,107 0 Hazardous Substance Remedial Action Fund OF 11,552,435 13,755,106 18,864,772 18,586,034 0 Hazardous Waste Disposal Fees OF 791,797 689,684 721,055 713,987 0 Hazardous Waste Generator Fees OF 2,234,684 2,512,633 2,706,361 2,675,431 0 Hazardous Waste TSD Fees OF 804,180 686,375 708,820 699,850 0 Heating Oil Tank Filing & Licensing Fees OF 731,372 796,178 885,485 873,878 0 Highway Spill Fund OF 259,676 159,571 193,755 191,886 0 Illegal Drug Lab Cleanup OF 84,125 134,781 115,850 115,638 0 LQ Miscellaneous Other Funds OF 267,656 0 0 0 0 LUST Cost Recovery OF 1,828,724 2,549,503 2,466,238 2,441,437 0 Marine Oil Spill Prevention OF 448,435 644,994 698,996 690,252 0 Oil Spill Penalty Funds OF 42,249 35,005 36,463 36,224 0 Orphan Site Account - Industrial Sites OF 3,594,823 5,949,313 2,158,956 2,152,133 0 Orphan Site Account - Solid Waste Sites OF 365,942 814,651 1,737,461 1,737,461 0 Solid Waste Disposal Fee OF 7,317,686 9,561,306 9,906,778 9,810,339 0 Solid Waste Permit Fees OF 3,554,046 3,924,234 4,525,503 4,472,663 0 SW Tire Storage OF 4,050 22,287 18,878 18,637 0 Underground Storage Tank Permit Fee OF 1,135,391 1,257,809 1,189,494 1,175,007 0 UST Compliance and Corrective Action Fund OF 158,884 123,452 103,002 101,757 0 UST Contractor Licensing Fees OF 133,344 108,598 107,539 106,016 0 Subtotal 37,690,837 46,420,002 58,687,652 58,115,803 0
BPR012 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-60 DETAIL OF OTHER FUNDS AND FEDERAL FUNDS REVENUE
Source Fund 2005-2007 Actuals 2007-2009 2009-2011 Legislatively Agency Governor's Legislatively Approved Request Recommended Approved
Land Quality
Federal Cleanup Grants & Coop. Agreements FF 3,494,790 4,148,830 4,274,052 4,234,029 0 Federal DSMOA FF 121,906 221,257 126,105 124,674 0 Hazardous Waste Base Grant FF 1,413,402 1,174,964 1,168,562 1,154,884 0 LUST Trust Grant FF 1,730,482 1,720,588 1,892,557 1,869,779 0 McCormick & Baxter NPL Funds FF 6,917,509 0 550,359 547,910 0 Umatilla Chemical Demilitarization FF 2,556,185 3,223,390 3,006,868 2,981,034 0 UST Compliance Grant FF 334,504 505,751 775,269 765,862 0 Subtotal 16,568,778 10,994,780 11,793,772 11,678,172 0
BPR012 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-60 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: Vacancy Factor and Non-PICS Personal Services (#010)
Purpose:
This package applies adjustments to personal services costs that are not generated by the Position Inventory Control System:
Updates the vacancy factor to project budget savings reasonably expected from staff turnover. Applies the standard general inflation factor of 2.8% to non-PICS generated personal services costs, such as temporaries, overtime, and shift differential. Adjusts for changes in the contribution for debt service on the PERS Pension Obligation Bonds Adjusts for mass transit taxes (excluding federal funds).
Budget: $ 29,141 General Fund $ 0 Lottery Fund $ -23,912 Other Fund $ 6,560 Federal Fund
Staffing Impact: None
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-61 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-62 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-63 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: Cost of Phased-in Programs or one-time increases (#021)
Purpose:
To identify Non-PICS related budget adjustments due to activities that phase-in for 2009-11 or are one-time costs.
How Accomplished: This package reflects non-PICS related budget adjustments for the following activity that started in the 2007-09 biennium and has phase-in increases in the 2009-11 biennium:
Electronic waste recycling as authorized by the Oregon Electronics Recycling (HB 2626)
Budget: $ 0 General Fund $ 0 Lottery Fund $ 6,602 Other Fund $ 0 Federal Fund
Staffing Impact: FTE phase-ins occur in the base budget (#000)
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-64 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-65 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-66 PROGRAM POLICY PACKAGE NARRATIVE
Title: Cost of Phased-out Programs or one-time eliminations (#022)
Purpose:
To identify Non-PICS related budget adjustments due to activities that phase-out in 2009-11 or eliminate one-time expenditures from 2007-09 .
How Accomplished: This package reflects non-PICS related budget adjustments for the following activities from the 2007-09 biennium that have phase-out decreases in the 2009-11 biennium:
None in Land Quality
Budget: $ (0) General Fund $ (0) Lottery Fund $ (0) Other Fund $ (0) Federal Fund
Staffing Impact: FTE phase-outs occur in the base budget (#000)
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-67 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: Inflation and Price List Adjustments (#031, 032, 033)
Purpose:
Inflation and price list adjustments are applied to Services and Supplies, Capital Outlay, and Special Payment amounts in the 2009-11 base budget.
How Accomplished:
Package 031 applies standard inflation, State Government Service Charge, and other price list adjustments o General inflation of 2.8% o Attorney General inflation of 23% o State Government Service Charge price list adjustments o Central Government Service Charge price list adjustments o Self Support Rent Agreement Price List (DEQ Laboratory Facility)
Package 032 applies above standard inflation with BAM analyst approval, including non-uniform rent up to 4.7%.
Package 033 applies inflation rates requiring Exception Committee approval, and includes only the amount over and above Package 031 or 032 amounts. For Intra-Agencies Charges (General and Lottery Funds), which help fund the Agency Management program, an incremental 6% rate was approved.
Budget: Package General Fund Lottery Fund Other Fund Federal Fund 031 3.456 0 488,548 97,786 032 1,737 0 88,586 20,670 033 17,951 0 0 0
Staffing Impact: None
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-68 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-69 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-70 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-71 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: Fund Shifts (#050)
Purpose:
The package records position/budget shifts among funding types within the program.
How Accomplished: This package shifts positions, services and supplies, and special payments between Federal Funds and Other Funds to reflect changes in work and funding. The significant shifts were in the Environmental Cleanup and Underground Storage Tanks (UST) programs. In Environmental Cleanup, funding from the Defense Department (DSMOA) and some EPA grants has decreased, but is partially offset by increased funding for the former McCormick and Baxter Superfund site. There was a net shift of .40 FTE and about $133,000 to the Hazardous Substance Remedial Action Fund. In the UST program, the availability of additional federal funding from the 2005 Energy Act enabled a shift of .60 FTE and about $147,000 from UST Storage Tank Permit Fees to federal funding. Combined with other small shifts to realign work with funding in other programs, there was a small net shift from Other Funds to Federal Funds in Land Quality.
Budget: $ 0 General Fund $ 0 Lottery Fund $ (3,226) Other Fund $ 3,935 Federal Fund
Staffing Impact: None
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-72 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-73 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-74 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-75 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: Technical Adjustments (#060)
Purpose:
The package records technical adjustments that do not fit in the standard Essential Packages.
How Accomplished: None
Budget: $ 0 General Fund $ 0 Lottery Fund $ 0 Other Fund $ 0 Federal Fund
Staffing Impact: None
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-76 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: Revenue Shortfalls (#070)
Purpose:
The package includes Other and Federal Funds expenditure reductions necessary to adjust essential service level to available revenue. Where appropriate, an ending balance is maintained to allow continuity of the program into the next biennium.
How Accomplished: Package 070 includes permanent reductions, as well as reductions that are being requested for restoration in Policy Packages.
None in Land Quality
Title: General Fund Reductions from Essential Budget Level (#090)
Background: State General Fund receipts for 2009-2011 are projected to fall short of the revenue required to support state agencies at their Essential Budget Level.
How Accomplished: This package reduces GF limitation and appropriation by $264,122.
Budget: General Fund $ (264,122)
Staffing Impact – 2009-11:
Position Class Position Authority Position Number FTE by Division NRS4 1 PF 0138 1.00 ER-Hazardous Waste Total 1 1.00
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-77 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-78 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
BPR013: LQ_Essential.docx (2/16/2009) Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page 6-79 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
Title: #082 Electronics Recycling Law Implementation
(Note: This package was requested by DEQ as policy package 134, but has been included in the Governor’s budget as package 82, which carries forward limitation approved by the September 2008 Emergency Board.)
Purpose:
This policy package requests 2009-11 expenditure limitation to implement the contractor program under the Oregon Electronics Recycling Act established by the 2007 legislature. The law requires that manufacturers of computers, computer monitors, and televisions provide for the recycling of their products statewide. Manufacturers can choose to implement their own statewide program or pay a recycling fee and participate in a program run by a private contractor which the DEQ is required to establish. This request is for professional services limitation to pay for the contractor program.
The 2007 legislature authorized positions to implement the Oregon Electronics Recycling Act, but did not add the professional services limitation required for the operation of the contractor program because there was too little information available at the time about the elements of cost, including: Amount of electronic waste estimated to be recycled in Oregon; Number of manufacturers expected to participate in the contractor program, rather than operating their own; and Operating costs for the contractor program.
The program begins operation in January 2009 and limitation to cover contractor program costs for the 2007-09 biennium will be requested from the Emergency Board. Because this request will not be made to the Emergency Board prior to Agency Request Budget submittal, the contract limitation is not included in the Essential Budget Level and is requested in this policy package.
How Achieved:
Manufacturers who choose to participate in the contractor program are required to pay an annual fee to DEQ to cover contractor administration and operating costs, including the cost to collect, transport, and recycle the required amount of computers, computer monitors, and televisions. Each manufacturer who participates in the contractor program is also assigned an annual performance goal to recycle a minimum number of pounds of covered electronic devices.
The recycling fee paid by the manufacturers is determined each year based on: Estimated price per pound to collect, transport, and recycle covered electronic devices; Estimated amount of covered electronic devices each manufacturer is responsible to recycle; and Contractor administrative costs.
107BF02:LQ_082 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-80 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
The minimum amount required to be recycled is determined based on how much was recycled the previous calendar year.
Each year, any manufacturer selling products in Oregon must tell DEQ if they will be participating in the contractor program for the coming calendar year. By September 1 each year, the manufacturers who participate in the contractor program are invoiced and pay the recycling fee for the following calendar year. At the end of the calendar year, the actual costs and fees are reconciled and a balance owing is paid or a refund or credit is issued. Actual costs may vary because the actual amount of material recycled and the price per pound paid for collection, transportation, and recycling will vary from the estimates used to develop the budgeted amounts.
Without electronics recycling program history, it is difficult to estimate the cost of the contractor program. In particular, some cost elements are unknown as of the writing of this policy package. Better information will be available at various points in the budget process and this request will be adjusted as appropriate. The professional services limitation requested is based on the following assumptions or information: Contractor administration costs are based on the costs contained in the contract covering calendar years 2009 – 2011; As of the Agency Request Budget submittal deadline, DEQ did not know how many manufacturers would choose to participate in the contractor program, rather than providing their own collection and recycling service, for 2009. Rather than guess at a figure, we have assumed that all manufacturers will participate in the state contractor program. By the fall of 2008, we will know this figure for 2009, which will provide a better basis for a 2010-11 estimate; We assume that a total of about 12 million pounds of covered electronic devices will be recycled in the state in 2009. This figure is based on an assumption of 3.3 pounds per capita per year; a consensus arrived at by stakeholders participating in the planning process. The actual amount could be higher or lower. Calendar year 2009 results should enable us to make a more educated estimate for future years. By assuming 100% manufacturer participation in the state program, we are assuming that the full 12 million pounds will be processed by the state contractor; and The cost per pound is based on the contract not-to-exceed amount for 2009; this figure is to be renegotiated with the contractor each year.
Approval of this package will benefit Oregonians and the environment by ensuring that:
DEQ will be able to meet its requirements under the law by providing the contractor program option to manufacturers; The contractor program will be available to manufacturers to meet their requirements to recycle the covered electronic devices they are required to recycle each year; Consumers in Oregon will have a convenient statewide collection and recycling system available to them at no charge; Collectors, transporters, and recyclers who operate under the contractor program will meet established environmental standards and get paid to collect, transport, and recycle covered electronic devices; For this continuously growing waste stream, there will be an increase in safely recycled covered electronic devices and a reduction in stockpiled, disposed, and mismanaged devices, resulting in less harm to public health and environment; and Progress will be made in reducing the amount of waste landfilled or incinerated per capita in Oregon (Oregon Benchmark 84) and achieving Oregon’s statutory waste recovery and waste prevention goals: 50% of waste recovered by 2009 and no increase in total waste generation by 2009 and beyond.
107BF02:LQ_082 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-81 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
Risks to Oregonians and the environment without this package are: DEQ will not be able to offer the state-administered electronic waste recycling opportunities provided for by the Oregon Electronics Recycling Act; The contractor program that will be established as of January 2009 would have to be shut down, causing a dislocation in electronic waste recycling service provision; and The public in Oregon will continue to have relatively few convenient, no cost, environmentally safe recycling and reuse options for this growing waste stream.
Budget: $8,220,000 Other Funds
Staffing Impact:
2009-11: None. Positions to administer the Electronics Recycling program are included in the Essential Budget Level.
2011-13: No change from Staffing Impact in 2009-11 Biennium
Revenue Source
This package is funded by the recycling fee authorized by the Oregon Electronics Recycling Act. The fees are to be set at an amount to cover the cost of the state contractor program established by DEQ. The revenues are deposited in a separate fund, entitled the Covered Electronic Devices Account, established under the Act. Revenues to pay for the contractor program are shown in the policy package, rather than the Essential Budget Level, to better match revenue and expenditures.
107BF02:LQ_082 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-82 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
Title: #131 Emergency Preparedness and Response
(Note: This package was proposed by DEQ, but not included in the Governor’s Recommended Budget)
Purpose:
Recent events in the state – such as the last winter’s coastal wind and flood event – and nationally – including Hurricane Katrina and the terrorist attacks of 9/11 – vividly demonstrate the importance of state government being prepared and sufficiently staffed to protect public health and the environment when faced with major emergencies. At current staff levels, DEQ is already hard-pressed to respond when large incidents or multiple events occur simultaneously. DEQ would not be able to provide adequate response in the event of a catastrophic earthquake, tsunami or major oil spill such as the November 2007 shipping incident that spilled over 50,000 gallons of fuel oil into San Francisco Bay. The lack of staff also means we aren’t able to do the up-front planning and coordination with local governments and others that is crucial to an effective response.
This policy package allows DEQ regional offices to more effectively prepare for and respond to spill emergencies, minimizing the impacts caused by the release of oil and hazardous materials. Currently, DEQ’s regional offices each have one State On-Scene Coordinator and no other dedicated staff. As such, when faced with multiple emergencies or any type of prolonged incident, our existing resources are quickly exhausted. In addition to improving emergency response at the regional level, this package provides the first real resources for DEQ to work with local governments, industry and others in preparing for emergencies before they actually occur. This request also complements the Office of Emergency Management’s efforts to regionalize preparedness, training and exercise activities under the Department of Homeland Security program as well as the State Emergency Response Commission’s efforts to work with Local Emergency Planning Committees that are currently being established. DEQ participation and coordination within both of these groups would provide expertise in planning and preparedness to ensure that Oregon’s policies and procedures for responding to releases of oil and hazardous materials are as effective as possible.
Emergency Response: Because so many emergencies involve oil or hazardous materials, DEQ manages more reports from Oregon’s Emergency Response System (OERS) than any local or state agency – more than 2300 calls annually. Notifications of “reportable releases” of oil and hazardous materials are received 24 hours a day, 7 days a week. DEQ relies on one daytime duty officer and several on-call after hours duty officers to: follow up on notifications; collect and evaluate spill release information and site conditions; and verify and direct cleanup actions as needed.
The lack of available resources makes it difficult for DEQ to respond effectively to large incidents, when emergencies require 24-hour operations, when more than one emergency occurs at a time, or when the nearest regional State On-Scene Coordinator is otherwise not available. This package helps address the current lack of existing resources.
Under state law, DEQ is charged with the safe management and cleanup of oil and other hazardous material releases. For example, in the case of a trucking company whose vehicle has spilled its contents, DEQ evaluates the risk associated with the spilled cargo and fuel releases, the potential for public health and environmental impacts and completed cleanup actions.. At larger spills, DEQ serves as the “On-Scene Incident Commander” and directs the establishment and implementation of cleanup objectives, tactics and strategies. These larger spills – including maritime incidents involving a significant oil release, industrial facility fires releasing harmful air-borne chemicals into residential neighborhoods, or highway and rail
107BF02:LQ_131 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-83 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE accidents resulting in a ruptured gasoline tanker – require immediate deployment of DEQ response personnel to the scene to direct response operations. The potential is high. Last year there were over 4000 transits of vessels in Oregon carrying volumes of oil similar to the vessel responsible for the November 2007 spill in San Francisco Bay.
When a significant spill occurs, DEQ staff resources are needed for: State On-Scene Coordination; environmental analysis; planning; community liaison; logistical and communications support; and other roles. Depending on the size and complexity of the emergency, on-site DEQ resources may be needed for days, weeks or even months. This policy package adds resources needed for emergency response.
Emergency Preparedness: As evidenced by many recent local, national and international disasters and incidents, much more needs to be done to prepare for response to natural, human and security emergencies. Oregon may be especially ill-prepared, because the few emergency staff at DEQ are devoted almost entirely to response and have little time to work with our public agency and private industry partners to provide technical assistance to prevent and respond to spills or to prepare for catastrophic emergencies.
Emergency preparedness is the work necessary before a spill or major disaster occurs to make sure equipment, supplies and other resources needed for response actions are readily-available; personnel are trained; working relationships are built; and plans for responding are developed and regularly exercised by the personnel who will be responding. At the community level, this work requires outreach, consultation, and technical assistance to coordinate with local industries that transport or use oil and hazardous materials, oil and hazardous material spill response contractors, community emergency preparedness groups, and local, state, federal and tribal government agencies.
This policy package will provide the resources DEQ needs to participate more effectively in coordinating with local industry and communities to prevent and respond to emergencies, and provide technical assistance and training. DEQ will work with industry and with local, state and federal agency planners to develop response strategies and initiate programs to ensure local communities recover from catastrophic events in the quickest time possible. The primary focus will be to put plans in place designed to stop and contain oil and hazardous substance spills, oversee debris management, restore water treatment and wastewater treatment systems, permit emergency landfills and transfer stations, and develop a consistent and ongoing incident management structure. As an example, such planning efforts would have been of great benefit in assisting the citizens of Vernonia, Oregon recover from the floods of the winter of 2007-08. The response by DEQ and others would have been more efficient with a plan to access available response and recovery resources and to recover hazardous materials from the environment in an expedited fashion.
How Accomplished:
This package requests two positions to be located in two of DEQ’s three regions. The proposed positions would make it possible for DEQ to help Oregon prepare for significant emergencies and also provide back-up State On-Scene Coordinators for emergency response, enhancing the existing level of response.
By adding these positions DEQ will be able to lead and participate in the development, implementation, and exercise of plans needed for responding to disasters. DEQ’s emergency response team members will work with facilities and transporters, emergency responders, communities and other stakeholders before a catastrophic event occurs and have plans and resources available to expedite recovery, rather than trying to figure it out
107BF02:LQ_131 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-84 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE after the emergency has occurred. When needed, these positions will respond to current emergencies. Having fully-trained, experienced back- up responders will provide significantly better protection of the environment.
Approval of this package will benefit Oregonians and the environment by providing DEQ resources to: Better prepare Oregon to avoid and mitigate environmental harm from major emergency events, including catastrophes such as tsunamis or major earthquakes; Coordinate in advance with local communities and other emergency responders to ensure that roles are well understood, actions are planned and resources are identified; Make the best use of available resources during emergencies; and Improve response to spills and accidents, especially when several events occur simultaneously.
Risks to Oregonians and the environment without this package are: Oregon will be inadequately prepared to address the environmental consequences of catastrophic events; Public health could be at risk during major emergencies if resources aren’t available to protect, for example, drinking water supplies; and “Ordinary” spill events could adversely affect public health or the environment when staff levels are insufficient to oversee cleanups.
Budget: $253,033 General Funds $109,005 Other Funds
Staffing Impact
2009-11:
Position Class Total Positions Position Number FTE by Division
Natural Resources Specialist 3 1 2808 1.00 Northwest region Natural Resources Specialist 3 1 2809 1.00 Western region
2011-13:
No change in 2009-11 staffing impact.
Revenue Source: Hazardous Substance Remedial Action Fund (HSRAF) and General Funds.
107BF02:LQ_131 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-85 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE A portion of the revenue for this package (an estimated $87,000) will come from increased cost recovery collected from parties responsible for spill cleanups. Revenues will increase because the additional staff will enable us to respond to more events. The balance of the Other Funds cost of this package will be paid for with existing Hazardous Substance Remedial Action Fund (HSRAF) fee revenues and/or fund balances.
We are requesting General Fund to pay for the remainder of this package for two reasons: (1) Until 2003, General Fund was the primary funding source for the emergency response program. In order to help address statewide budget shortfalls, General Funds were shifted to other purposes and the program has been funded primarily with HSRAF. This shift was part of the reason for environmental cleanup program cuts in 2005-07. Cleanup program funding has been stabilized, however there is not sufficient HSRAF revenue to support additional emergency response and preparedness resources. General Fund is an appropriate source for this purpose because the program protects public health, safety and welfare and benefits all Oregonians. (2) In addition, some of the preparedness activities to be performed by the additional staff – e.g. spill prevention, emergency preparedness including non-hazardous debris management – are not allowable uses of HSRAF, which is restricted to activities associated with removal and remediation (cleanup) of oil and hazardous materials.
107BF02:LQ_131 Agency Request X Governor's Recommended Legislatively Adopted Budget Page 6-86 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Title: # 132 Product Stewardship for Waste Products
Purpose:
This package will provide resources to enable DEQ to work with stakeholders to develop product stewardship policy and to draft legislation for the 2011 session. Product stewardship programs require producers of products to take responsibility for managing their products at the end of their useful life. An example is Oregon’s electronic waste recycling program established by the 2007 Legislature. Other types of waste products could also be better managed through a product stewardship program. Product stewardship legislation would provide producers an efficient, effective, and predictable system for managing multiple waste products and adding more over time. Our solid waste stream has changed over the past decades. Today consumers throw away more products containing toxics and multiple materials, making them costly and difficult to recycle or safely dispose in the traditional waste management system. Our current recycling systems are not able to provide convenient, efficient, and safe options for recovering these resources and handling the residual waste. As a result, we have: Minimal reuse or recycling of many waste products; Increased risk of mismanagement and adverse impacts on human health and the environment from products with toxic components; Missed incentives for designing products that are more reusable and recyclable and contain fewer toxics; and Local governments and rate/tax payers bearing the costs for dealing with these products at the end of their useful life.
Oregon’s Electronic Recycling Law established a product stewardship program for computers, monitors, and televisions. Initiatives or discussions are currently underway locally and nationally to establish product stewardship programs for pharmaceuticals, paint, fluorescent lights, mercury thermostats, batteries, beverage containers (an expanded Oregon bottle bill), and other difficult-to-manage products. A product-by-product approach without the benefit of a common framework will create inefficiencies and reduced effectiveness such as: Consumer confusion about different collection systems and locations for each type of product, potentially resulting in less material reused and recovered; Increased staff and costs for government to implement and oversee individualized programs with different requirements and systems set-up for each product; and Lack of clarity for producers to understand product stewardship goals and expectations.
For these reasons, it will be most effective to develop a common approach to address toxic and difficult-to-manage waste products. A single product stewardship framework could:
Address multiple products more effectively – by identifying, evaluating, and handling waste products using a common process; Include agency analysis to focus on priority products to maximize environmental gains and at the same time benefit from lessons learned from other countries who are leaders in product stewardship;
132_LQ Agency Request X Governor’s Recommended ____ Legislatively Adopted Budget Page ______6-87 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Allow for administrative and service delivery efficiencies such as common and convenient collection locations for multiple products, and agency efficiencies by using the same staff to review plans, oversee compliance, and administer common system elements for multiple products; Evaluate incentives and other approaches to encourage producers to improve product design; and Be more streamlined and require less government involvement than the 2007 Electronics legislation, which required a state-established contractor program and extensive manufacturer registration.
How Achieved:
The proposed policy package will provide resources to develop a common process in which to add products and evaluate products most appropriately addressed under a product stewardship program. This policy package requests two new permanent full-time positions to enable DEQ to research, evaluate, and establish product stewardship policy and products. The Program Analyst 1 will primarily be responsible for administrative tasks, stakeholder coordination, collection and organization of data and information, and information research related to general product stewardship programs and product specific data and information. The Natural Resource Specialist 3 will provide the technical background to assist in the development of criteria, and evaluate potential products. Work accomplished will include the following:
Conduct technical research and evaluate specific products; Develop materials and technical information related to fiscal impacts; Design and develop program evaluation tools; and Work with an advisory committee, including producers, to develop program and product-specific product stewardship policy such as product selection process and criteria, plan requirements, and performance goals.
In addition to using existing staff for product stewardship program development work, the DEQ requests the two new positions to accelerate this priority solid waste policy work. The positions will be paid for with solid waste disposal fee revenue for the 2009 – 11 biennium. Once a product stewardship framework is developed and adopted and specific products are part of the system, administrative fees paid by producers of the products will provide the revenue to support the new positions.
Results:
Approval of this package will benefit Oregonians and the environment by ensuring that DEQ has sufficient resources to develop product stewardship policy and evaluate a variety of waste products that may contain toxics or are difficult to manage. Package approval will result in the evaluation and development of policy recommendations that will:
Improve the effective and safe management of toxic and difficult-to-manage waste products; Reduce the environmental impact over the entire lifecycle of these waste products, potentially including greenhouse gas emissions and energy use;
132_LQ Agency Request X Governor’s Recommended ____ Legislatively Adopted Budget Page ______6-88 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
Recommend a common framework to establish product stewardship programs for specific products, providing more certainty to manufacturers and minimizing state resources needed to oversee multiple programs; Create a statewide waste collection system that is convenient and free for consumers who use the products, making the recycling, reuse and safe disposal of difficult-to-manage products easier and more widely practiced; Improve the capturing of resources embodied in the product for use in future manufacturing, reducing waste generation “upstream”, energy consumption, and greenhouse gas impacts; Shift costs from local governments and ratepayers in Oregon to producers and users of the products. Provide incentives for producers to improve the design of their products to reduce toxicity, reduce public health and environmental impacts, reduce waste generation, increase recycled content, and make products more easily reusable and recyclable; and Reduce the amount of waste landfilled or incinerated per capita in Oregon (Oregon Benchmark 84) and achieving Oregon’s statutory waste recovery and waste prevention goals: 50% of waste recovered by 2009 and no increase in total waste generation by 2009 and beyond.
Risks to Oregonians and the environment without this package are: Reduced ability to develop policy to improve the reuse, recovery and safe disposal of products with toxic materials, leading to a higher likelihood of environmental and health impacts; Reduced ability to develop policy that will shift the cost of managing the toxic and difficult to manage waste products from the general public and local governments, to those who have the most influence over the products, the manufacturers and users of the products; Reduced ability to research and recommend incentives for producers to use less toxics in their products, reduce waste generation, increase recycled content and make products that are more easily reused and recycled and Greater inefficiencies for DEQ and local governments as products and product stewardship programs are proposed and implemented in a piecemeal, ad-hoc fashion rather than a, systematic way using a common approach.
Budget: $277,890 Other Funds
Staffing Impact:
2009-11:
Position Class Total Positions Position Number FTE by Division
Natural Resources Specialist 3 1 2810 .92 Headquarters Program Analyst 1 1 2811 .92 Headquarters
132_LQ Agency Request X Governor’s Recommended ____ Legislatively Adopted Budget Page ______6-89 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
2011-13: Position Class Total Positions Position Number FTE by Division
Natural Resources Specialist 3 1 2810 1.00 Headquarters Program Analyst 1 1 2811 1.00 Headquarters
Revenue Source: In 2009-11, existing solid waste disposal fees will be used to pay for these positions.
132_LQ Agency Request X Governor’s Recommended ____ Legislatively Adopted Budget Page ______6-90 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
132_LQ Agency Request X Governor’s Recommended ____ Legislatively Adopted Budget Page ______6-91 LAND QUALITY PROGRAM POLICY PACKAGE NARRATIVE
132_LQ Agency Request X Governor’s Recommended ____ Legislatively Adopted Budget Page ______6-92 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
Title: #133 Orphan Site Cleanup Operation and Maintenance
(Note: This package was proposed by DEQ, but not included in the Governor’s Recommended Budget)
Purpose:
The balance in the industrial Orphan Site Account is insufficient to maintain and operate remedies already installed at orphan cleanup sites and to perform investigation and cleanup at sites where remedies are not yet in place. This policy package requests General Funds to pay for a portion of operation & maintenance (O&M) and monitoring costs associated with orphan sites where long-term treatment systems or other measures to protect public health and the environment have been installed or constructed. The request would also provide funding to meet the State of Oregon’s obligation for long-term O&M costs at federally-funded cleanup sites. This would allow DEQ to use the industrial Orphan Site Account fund balance to pay for the balance of projected O&M costs and to continue investigation and cleanup at other sites where the remedy has not yet been installed or completed.
Background: DEQ protects public health and the environment by cleaning up highly contaminated properties when the parties responsible for the contamination are unknown, unwilling or unable to do so. DEQ designates sites as orphans only if they are high priorities for cleanup. The Orphan Site Account, established in 1989, traditionally has been funded primarily by sales of General Fund-backed pollution control bonds. Since 1992, DEQ has designated 95 sites as orphans. Although cleanup activities at some orphans can continue for years, 15 have received DEQ’s “no-further-action needed” (NFA) designation. Many of these NFA sites (and several additional orphans) now support enhanced uses and economic redevelopment. At other orphans, such as those with complex areawide groundwater concerns, the program has provided significant environmental protection by stabilizing contamination. Benefits will continue to accrue at all active orphans, as DEQ continues its investigation and cleanup activities, as well as maintenance/monitoring of long-term treatment systems.
Over the life of the program, bonds have been issued seven times, providing a total of $41.6 million, including the $4.8 million sale authorized by the 2007 Legislature. The 2007-09 Governor’s Budget proposed a higher figure – $7.5 million – in order to fund the program for 4 years. The Legislature only funded a portion of this request, which will not provide enough funding to perform O&M and monitoring work and to continue investigation and cleanup at other sites. With the approval of this policy package, there will be sufficient funding for management of orphan sites through the 2009-11 biennium based on current projections.
Based on current projections of work needed at already identified sites, DEQ anticipates having 30 to 35 active orphans in 2009-11, if sufficient funding is available. Of these, about 20 to 25 will require O&M and/or monitoring. In addition to currently designated sites, we identify, on average, about five orphan sites needing investigation and cleanup each year.
Proposed Funding for Operations, Maintenance and Monitoring (O&M): This package proposes to pay for on-going orphan site O&M costs with a General Fund appropriation, rather than relying on bond financing. Cleanup remedies include groundwater treatment systems and engineered soil or sediment caps. O&M activities are performed to ensure that
133_LQ Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page ______6-93 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE groundwater treatment systems perform as designed and that protective soil caps are not breached or compromised. Monitoring ensures that constructed treatment systems or other protective measures are performing as designed to protect public health and the environment. By funding O&M and monitoring costs directly from General Fund, this package will help preserve existing Orphan Site Account bond sale proceeds to pay for the front-end work needed to investigate contaminated sites and construct cleanup remedies in the 2009-11 biennium.
Many of the cleanup sites that DEQ has addressed over the years involve contamination of groundwater that serves as a private or community drinking water supply. At these sites, we have often invested in treatment systems that must be operated for many years to clean up the groundwater. If DEQ does not have sufficient funding to continue operation of these treatment systems, affected residents would be drinking contaminated water and past investments will be lost or diminished. At other sites, other protective measures, such as engineered soil caps, prevent human exposure to contaminants. Similarly, if these measures aren’t maintained, human health and the environment continue to be at risk.
This policy package would also fund Oregon’s obligation, under federal law, to pay for the costs of O&M and other post-construction costs associated with implemented remedies at federally-funded Superfund (National Priorities List or NPL) sites. For example, EPA and DEQ have implemented a final cleanup remedy at the former McCormick and Baxter Creosoting Company facility, an NPL site, and the State of Oregon is required to contribute an estimated $800,000 in 2007-09 for matching funds and O&M costs.
Examples of NPL sites where the State of Oregon will be required to provide matching funds for remedial action and/or operation and maintenance costs in 2009-11 are: McCormick and Baxter Creosoting Company in Multnomah County, a former wood treatment facility, where DEQ and EPA have completed remedial action and are transitioning to O&M. DEQ anticipates a 2009-11 biennium match and O&M obligation of approximately $900,000; NW Pipe and Casing in Multnomah County, with projected O&M costs for the biennium of approximately $30,000; and Taylor Lumber in Yamhill County, with currently projected O&M costs for the biennium of approximately $77,000.
Other examples of orphan sites where O&M and monitoring costs are required for long-term maintenance of remedies that have been installed include: Clackamas County (Surgichrome), Klamath County (Keno Areawide project), Multnomah County (NuWay Oil), Linn County (Lebanon Areawide project), Malheur County (Frenchglen and Nyssa), and Wheeler County (Lone Elk Market). In most cases, the installed treatment systems are protecting drinking water supplies. Typical O&M and monitoring costs at these sites range from $50,000 to $200,000 per biennium.
133_LQ Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page ______6-94 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
How Achieved:
This package requests a $1,500,000 General Fund appropriation for O&M, monitoring and federal Superfund post-construction obligations required for orphan sites. Total projected professional services cost for all O&M, monitoring and match obligations for 2009-11 is $1.6 to $2.1 million. The General Fund request would pay for a portion of this cost and the balance would come from the estimated $2.3 million industrial Orphan Site Account balance to be carried forward from 2007-09.
The 2009-11 beginning balance will consist of remaining bond proceeds and of cost recoveries of previously expended industrial Orphan Site Account funds. DEQ has been successful in partially replenishing the fund by pursuing recovery from insurance policies, from previous owners and operators that are legally responsible and from proceeds when the cleaned up properties are sold. From program inception in 1991 through June 2008 we had recovered about $8.7 million. We continue to work actively with property owners, prospective purchasers and developers to facilitate the sale and redevelopment of sites, and recovery of expended funds. Cost recoveries supplement program revenues and delay the need for additional bond sales, but are not a dependable source of funding for either cleanup or O&M.
DEQ projects that O&M costs will continue at a similar or higher level in future biennia. An on-going General Fund appropriation will provide a stable source of funding for existing costs and will protect previous investments made in site cleanups. Future bond sales will still be needed to continue investigation and cleanup work, but the amount financed will be less if O&M is funded by an ongoing appropriation.
Approval of this package will benefit Oregonians and the environment by ensuring that DEQ has the resources to: Operate already-installed treatment systems that continue to remove pollution from contaminated sites; Monitor sites where contamination has not been or cannot be removed, to ensure that the contamination will not affect people or the environment; Start the cleanup process at orphan sites that have been declared but where work has not started; in 2009-11; Continue during 2009-11 the investigation and cleanup of known sites identified as high risk and, depending on costs, new sites that are discovered during 2009-11; and Ensure that required operation, maintenance and monitoring work will continue in future biennia, without having to rely on uncertain bond financing for this work.
Risks to Oregonians and the environment without this package are: Orphan site work will be significantly curtailed in 2009-11; possibly resulting in exposure of Oregonians to contamination, because most available funding will be directed to ongoing O&M and monitoring work, including obligations at federal Superfund sites; In some cases, O&M and monitoring will be reduced, undermining the effectiveness of past orphan investments; Unaddressed orphan contamination will remain in place, prolonging risks to public health, including potential contamination of drinking water; and There will be no funding for O&M and monitoring after 2009-11, unless a bond sale is approved or funds are appropriated for that purpose.
133_LQ Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page ______6-95 LAND QUALITY PROGRAM OPTION PACKAGE NARRATIVE
Budget: $1,500,000 General Funds
Staffing Impact
2009-11: There is no staffing impact of this proposal. Existing positions are sufficient to manage the orphan site cleanups.
2001-13: No change from Staffing Impact in 2009-11 Biennium
Revenue Source: General Funds
The orphan site cleanup program was originally designed to be funded with long-term bonds financed by two fee sources. However, using the petroleum load fee for cleanups was determined to violate the constitutional dedication of gas taxes to highway purposes, so the Legislature has relied on General Funds for bond debt service since 1995. Given the program’s funding history, we are proposing that this policy package be funded by a General Fund appropriation as well.
133_LQ Agency Request X Governor's Recommended ____ Legislatively Adopted Budget Page ______6-96 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-97 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-98 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-99 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-100 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-101 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-102 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-103 BPR007A Land Quality Oregon DEQ Governor's Recommended Budget Budget Page 6-104 PPPDFISCAL Oregon DEQ Governor's Recommended Budget Budget Page 6-105 PPPDFISCAL Oregon DEQ Governor's Recommended Budget Budget Page 6-106 PPPDFISCAL Oregon DEQ Governor's Recommended Budget Budget Page 6-107 Oregon Department of Environmental Quality Governor's Recommended Budget 2009-11
Table of Contents
EQC Certification of Budget Document
01 Legislative Action
02 Agency Summary
03 Revenues
04 Air Quality Division
05 Water Quality Division
06 Land Quality Division
07 Cross Program
08 Agency Management
09 Debt Services
10 Nonlimited
11 Capital Budgeting
12 Special Reports part 1
part 2
part 3
part 4
part 5