FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Arizona Department of Environmental Quality GENERAL FUND

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2 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES GENERAL FUND FY 2010 General Fund Budget 13,247,700 AGENCY REDUCTION TARGET - GENERAL FUND $1,987,200 Priority Issue Title 1 Reductions Amount 1 Staff separations and other operating reductions $937,200 2 Reduction to WQARF Corporate Income Tax Transfer $1,050,000 Issue Total $1,987,200 Fund Total as a Percentage of General Fund Reduction Target 100% GF Page 1 of 1

3 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES ALL NON-GENERAL FUNDS FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Fund Reductions Amount Percent Reductions Underground Storage Tank Revolving Fund (2271) $9,023,500 67% Emissions Inspection Fund (2082) $2,084,300 16% Air Quality Fund (2226) $1,009,500 8% Permits Administration Fund (2328) $121,200 1% Water Quality Fee Fund (4100) $159,500 1% Centralized Monitoring Fund (2308) $320,000 2% Voluntary Remediation Program (2564) $146,400 1% Hazardous Waste Management Fund (2178) $200,000 1% Indirect Cost Recovery Fund (7000) $381,600 3% Issue Total $13,446,000 All Non-General Funds Total as a Percentage of Agency Non-GF Reduction Target 100% Non-GF Page 1 of 1

4 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Air Quality Fund (2226) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Reductions Amount 1 Staff separations and other operating reductions $259,500 5 Eliminate South Phoenix Project funding $350, Eliminate ASU Technical Contract for DOAS $35,000 9 Reduce transfer to counties SLI for Pima County $104,500 7 Reduce Air Assessment all other operating and equipment repair & maintenance $260,500 Issue Total $1,009,500 Fund Total as a Percentage of Non-General Fund Reduction Target 8% Non-GF Page 1 of 1

5 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Centralized Monitoring Fund (2308) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 6 Eliminate MAP refunds and reduce professional contracted services $320,000 Issue Total $320,000 Fund Total as a Percentage of Non-General Fund Reduction Target 2% Non-GF Page 1 of 1

6 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Emissions Inspection Fund (2082) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 1 Staff separations and other operating reductions $46,200 3 VEI contractor payment management $1,600,000 4 Set TRP at reduced FY 2009 expenditure level $438,100 Issue Total $2,084,300 Fund Total as a Percentage of Non-General Fund Reduction Target 16% Non-GF Page 1 of 1

7 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Hazardous Waste Management Fund (2178) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 8 Lengthen permitting times for Hazardous Waste facilities $200,000 Issue Total $200,000 Fund Total as a Percentage of Non-General Fund Reduction Target 1% Non-GF Page 1 of 1

8 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Indirect Cost Recovery Fund (7000) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 1 Staff separations and other operating reductions $381,600 Issue Total $381,600 Fund Total as a Percentage of Non-General Fund Reduction Target 3% Non-GF Page 1 of 1

9 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Permits Administration Fund (2328) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 1 Staff separations and other operating reductions $121,200 Issue Total $121,200 Fund Total as a Percentage of Non-General Fund Reduction Target 1% Non-GF Page 1 of 1

10 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Underground Storage Tank Revolving Fund (2271) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 1 Staff separations and other operating reductions $397,100 2 Ranking of SAF eligible claims $8,626,400 Issue Total $9,023,500 Fund Total as a Percentage of Non-General Fund Reduction Target 67% Non-GF Page 1 of 1

11 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Voluntary Remediation Program (2564) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 1 Staff separations and other operating reductions $46, Reducing Voluntary Remediation Program technical reviews and approvals $100,000 Issue Total $146,400 Fund Total as a Percentage of Non-General Fund Reduction Target 1% Non-GF Page 1 of 1

12 FY 2010 BUDGET REDUCTIONS - SUMMARY OF ISSUES Water Quality Fee Fund (4100) Priority FY 2010 All Non-General Funds Budget (less Federal Funds) 89,640,000 AGENCY REDUCTION TARGET - ALL NON-GENERAL FUNDS (w/o Federal Funds) $13,446,000 Issue Title Reductions Amount 1 Staff separations and other operating reductions $159,500 Issue Total $159,500 Fund Total as a Percentage of Non-General Fund Reduction Target 1% Non-GF Page 1 of 1

13 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Staff separations and other operating reductions General Fund and Other Funds Issue Priority: 1 Reduction Amounts: General Fund (1000): $937,200 Other Funds Underground Storage Tank Revolving Fund (2271): $397,100 Emissions Inspection Fund (2082): $ 46,200 Air Quality Fund (2226): $259,500 Permits Administration Fund (2328): $121,200 Water Quality Fee Fund (4100): $159,500 Voluntary Remediation Program Fund (2564): $ 46,400 Indirect Cost Recovery Fund (7000): $381,600 Subtotal $1,411,500 Total: $2,348,700 Issue Description and Statement of Effects The functions of the program being eliminated or reduced EXECUTIVE & ADMINISTRATIVE SERVICES Central administrative job functions being eliminated, assumed by remaining staff or being deferred: Safety Awareness Part of compliance and preventative measures to manage exposure to risk, OSHA, etc. The safety officer s duties are being assigned to a Safety Committee. Training and Education The training officer s duties are being transferred to existing staff within the HR function, and to the Administrative Counsel. Fleet Management and billing coordination This function is being distributed to division level business management. Billing oversight, maintenance coordination and fleet assignment to travelers will lose efficiency. Materials, supply oversight and central storekeeping No centralized coordination will be done. There will be reductions in economies of scale for materials and supplies management. External communications coordination This is being absorbed by other staff in the communications and media center.

14 Procurement duties Purchase negotiations will be less intensive and therefore less effective. The duties are being absorbed by other buyers.

15 AIR PROGRAMS Air programs job functions being eliminated, assumed by remaining staff or being deferred: Air Quality Management o Air quality data analysis performed by an Environmental Program Specialist will be delayed into future years. The analysis of air quality monitoring results in comparison with federal, health-based standards and acceptable levels of hazardous air pollutants will be delayed and will risk untimely discovery of unhealthful levels of air pollution in Arizona communities. o Loss of an Environmental Engineering Specialist will delay responses to citizens, contractors and local governments seeking guidance on proper testing, identification and handling of asbestos-containing building materials. Less timely responses will increase the likelihood of public exposure to asbestos, a known human carcinogen o Program planning support for plans to improve unhealthful air in Arizona communities will be delayed and will impede economic development in affected communities due to stricter control measures with higher costs, which make those communities less attractive to companies seeking to locate or expand industrial facilities. o The loss of an Economist will delay and reduce the quality of economic analyses associated with plans and rules. Oversight of rule review and fee structure analyses will be delayed, increasing uncertainty of the adequacy of revenues. o Loss of three administrative support staff will move clerical duties and functions to professional and scientific staff. All documents and reports related to Title V and Non-Title V pollution sources will be filed and maintained by professional and scientific staff, reducing their productivity. Vehicle Emissions Loss of an Environmental Instrument Technician will reduce or delay service to motorists and emissions repair technicians, who are inquiring about the causes and proper repair of failing vehicles, delaying their timely re-registration and increasing air pollution in metro Phoenix and Tucson from unrepaired, high-polluting vehicles.

16 WASTE PROGRAMS Waste programs job functions being eliminated, assumed by remaining staff or being deferred: Voluntary Site Remediation project management o The project manager s duties will be distributed to other project managers, including project managers outside of VRP. This will hinder expedited review and approval of cleanup activities where Property owners, prospective purchasers and other interested parties are working cooperatively and willingly with ADEQ. General Fund/WQARF Legal Support Personnel o Loss of an enforcement coordinator position in the Waste Programs Legal Support Unit within the Remedial Projects Section will allow responsible parties to avoid complying with clean up actions they are required to do. Responsibilities of the enforcement coordinator include preparing all consent orders and generating all notices of violation related to any Remedial Project Section consent orders. There would be limited enforcement actions taken as a result of this reduction. This position also provides support to Motorola 52 nd Street Operable Unit 2 area, another function which would be moved to remaining staff. Staff will be reduced from 3 to 2. One of the staff provides administrative support to the entire section as a result of previous job consolidation and absorption. Hazardous and Solid Waste permitting, inspection and compliance o Hazardous Waste Permit Writers will be reduced from four to three. It will take longer to issue hazardous waste permits. This increases the length of time hazardous waste treatment, storage or disposal facilities have to wait to begin or expand operations in Arizona. o Loss of a Solid Waste Inspections and Compliance Officer will reduce the unit to six compliance officers who are currently tasked with inspection and investigation of over 2,400 regulated facilities in Arizona such as landfills and bio-hazardous medical waste treatment facilities. As a result of already less frequent inspections, ADEQ has seen increased noncompliance in landfills and bio-hazardous medical waste treatment facilities. o With no Illegal Dumping Coordinator ADEQ s illegal dumping program efforts will be reduced to only providing available information to interested parties. ADEQ no longer initiates discussion amongst stakeholders.

17 Underground Storage Tanks Site Remediation Tank Programs functions being eliminated: o Loss of an Environmental Health Specialist II will limit the ability to inspect and report the reduction of public health impacts achieved by remediation of soil and groundwater contaminated by leaking underground storage tanks. This function will only be performed when time is available which may affect our ability to attain federal funds. o Loss of an Environmental Program Supervisor will require management of Site Investigation and Remediation Units to be combined. The remaining Unit Supervisor will perform all UST Site Investigation and Remediation management functions, and now will supervise more staff. o The loss of three administrative support staff will require administrative functions related to the State Assurance Fund to be performed by other staff within the Tanks Division and by central service units. These duties include: personnel administration budget tracking revenue and expenditure tracking payment tracking timesheet coordination federal grant administration case file management correspondence

18 WATER PROGRAMS Water programs job functions being eliminated, assumed by remaining staff or being deferred: Reducing three Environmental Engineering positions will slow the processing of permit actions in o Individual Aquifer Protection Permits (APP) o general APP s o Reclaimed Water permits, and o permit amendments along with reducing investigations of water quality complaints. These duties will be absorbed by other staff or deferred when possible. Loss of a Program Specialist restricts facility inspection and monitoring of pesticides entering the water systems in Arizona. These duties will be absorbed by other staff or deferred when possible.

19 REGIONAL OFFICES Regional office job functions being eliminated, assumed by remaining staff or being deferred: The position of Environmental Regulation Policy Administrator serves as the northern regional program director for all environmental regulation activities for the Air Quality, Water Quality and Waste programs. Regional operations management will be deferred to the Phoenix headquarters. The loss of an Environmental Engineering Specialist focusing on compliance in Northern Arizona will require these duties be deferred and when necessary, conducted from remaining inspectors in the Northern Regional office. Increases in regional travel will take place for compliance issues. The loss of an Administrative Assistant position provided will require support duties being absorbed by remaining Southern Regional Office. Elimination of the community liaison in Yuma will require public education, event planning and other duties to be conducted from Tucson.

20 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Ranking of SAF Eligible Claims Other Funds Issue Priority: 2 Reduction Amounts: Underground Storage Tank Revolving Fund (2271): $8,326,400 Total: $8,326,400 Issue Description and Statement of Effects The functions of the program being eliminated or reduced The program will reduce its reimbursement of owners and operators who have advanced funds to clean up soil and groundwater contaminated by leaking underground storage tanks. The SAF was established in 1990 to assist eligible Underground Storage Tank (UST) owners, operators and others in meeting the potentially high costs of leaking UST cleanups and to fund ADEQ s cleanup of orphaned leaking UST s where the owner or operator cannot be located or is not otherwise capable of performing cleanups [A.R.S ]. The SAF is funded through a $0.01/gallon excise tax on the operation of regulated UST s [A.R.S ]. Costs eligible for reimbursement to UST owners may include those incurred for cleanups that are reasonable, necessary, cost-effective and technically feasible; for sampling, analysis and reporting that verifies the existence of an UST release that requires cleanup; and, under specific circumstances, closure of the UST The effects of not performing those functions Citizens seeking reimbursement will wait longer to be reimbursed. The proposed reductions in expenditures from the State Assurance Fund (SAF) will likely lead to a Director s determination of the necessity to rank (prioritize) claims for payment as the SAF balance may not be sufficient to pay all approved claims that are in process or are anticipated to be submitted. Upon declaration of a ranking period by the Director, affected claims will be reviewed and priority ranking points assigned to each for financial need, risk to human health and the environment and adverse affects of delay of corrective action [R (C)].

21 As a result: responsible parties and/or their contractors could be financially harmed through delayed payment of eligible claims; responsible parties may not proceed with cleanup actions absent regular and predictable payment of eligible claims; restoration of soil and groundwater resources may be slowed; redevelopment of former UST sites may be slowed. ADEQ s cleanup of orphaned leaking UST s through its state lead program where the owner or operator cannot be located, or is not otherwise capable of performing cleanups, will also be slowed or suspended. Possible alternative ways to fund the program Extend the life of the UST tax beyond its current sunset date. Use all of the American Recovery and Reimbursement Act funds ADEQ receives to fund the state lead cleanups which ADEQ has already begun. Where in the agency is this function located The Tank Programs Division, State Assurance Fund Section Provide a legal citation for this function. A.R.S (Assurance Account) A.R.S (Underground Storage Tank Tax) A.A.C. R through 615 (Claims Ranking)

22 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Reduction to Water Quality Assurance Revolving (WQARF) Fund Corporate Income Tax Transfer (Considered General Fund Savings) Issue Priority: 2 Reduction Amounts: General Fund (1000): $1,050,000 Total: $1,050,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced Through the WQARF program, ADEQ identifies, investigates and cleans up soil, groundwater and surface water contaminated with hazardous substances. WQARF was created in 1986 and amended in There are currently 35 WQARF sites in the state. The following functions would be impacted by the proposed reduction: Response to hazardous waste emergencies; Operation of at least four remediation systems; Groundwater and soil contamination monitoring; Other critical activities mandated by statute and necessary to maintain program function including potentially responsible party searches, community involvement and preliminary investigations to identify new sites, and support for other state agencies including ADHS, ADWR and AAGs. ADEQ operates the WQARF program to cleanup Arizona sites and to encourage EPA to defer federal action in Arizona in which US EPA would use joint and severable liability to compel responsible parties to clean up Arizona sites. The effects of not performing those functions; 1. ADEQ may be unable to respond to hazardous waste emergencies. 2. Four remediation systems will be impacted including shutdown of the Central and Camelback (Phoenix) pump and treat groundwater cleanup system and the Soil Vapor Extraction (SVE) soil cleanup system; shut down of the West Central Phoenix North Plume/F&B SVE system; withdraw of funding $50,400 to the Town of Payson for continued operation of the drinking water/pump and treat system; and withdraw of funding for the Main Street and Kofa pump and treat/sve system in Quartzsite. Expenses associated with the operation of the Kofa and Main Street system will be diverted to the State Assurance Fund. These actions may result in further migration of contamination, unknown future

23 exposure to contamination, increased remediation costs, and significant delay in the time necessary to complete remediation. No active drinking water wells will be impacted and these sites were chosen for shutdown because their shutdown represents the least risk to public health among all operating clean up systems, except for Payson in which the Town of Payson will continue to operate its drinking water system and the pump and treat clean up system that the WQARF program built for Payson. 3. Elimination of soil and groundwater monitoring would significantly limit ADEQ s ability to determine if contamination is impacting drinking water wells, surface water, or other pathways of potential exposure. 4. Recovery of costs incurred by ADEQ will stop because responsible parties will not be identified; communities impacted by contamination will not be informed of potential health and property value impacts of the contamination; new sites won t be identified; and support functions executed by other state agencies will stop. Possible alternative ways to fund the program; Site may be placed on the EPA s National Priorities List if clean-up isn t conducted under the WQARF program. EPA uses a joint liability system and ADEQ uses a fair share liability system. Where in the agency is this function located Waste Programs Division, Remedial Projects Section Provide a legal citation for this function. All functions of the WQARF program are impacted by the proposed reductions. Uses of the fund are described at A.R.S (E) - Uses of the Water Quality Assurance Revolving Fund. Functions which may have the greatest impact on ADEQ's ability to protect human health and the environment are: A.R.S Water Quality Assurance Revolving Fund - Emergency Response; and A.R.S Interim Remedial Actions.

24 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: VEI contractor payment management Other Funds Issue Priority: 3 Reduction Amounts: Emissions Inspection Fund (2082): $1,600,000 Total: $1,600,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced During FY 2009, the State managed its cost of the contracted services for Vehicle Emissions Inspections (VEI) provided in the Phoenix and Tucson metropolitan areas. While ADEQ analyzes the full cost of the VEI program, these funds are available for permanent reduction. The emissions inspection program is an integral part of the management systems ensuring Arizona s air is clean, presents as few health risks as possible and meets established quality standards. The effects of not performing those functions The VEI program full costs of monitoring air quality conducting inspection and compliance, assessing progress in fleet inspections, and contract oversight will not be recovered. Possible alternative ways to fund the program Increase fees to motorists. Where in the agency is this function located Air Quality Division, VEI Section. Provide a legal citation for this function This function is established under Title 49, Chapter 3, Article 5, A.R.S

25 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Set TRP at reduced FY 2009 expenditure level Other Funds Issue Priority: 4 Reduction Amounts: Emissions Inspection Fund (2082): $438,100 Total: $438,100 Issue Description and Statement of Effects The functions of the program being eliminated or reduced The Trip Reduction Program (TRP) will be reduced from FY 2010 funded level of $1,638,100 to the FY2009 level of $1,200,000. This action reduces the funding for Maricopa County, Pima County, Pima Association of Governments and Pinal County from the FY2010 levels appropriated in HB2006, Laws 2009, Ch. 11, Set 6, Page 16, Lines 7+13 back to their reduced FY 2009 levels. Funding these local governments at this level reduces the impact TRP has on encouraging alternate commute options to reduce vehicle miles of travel and thereby improve air quality. This state and federally mandated program is an integral part of the approved plans for continued attainment of the carbon monoxide and ozone health standards in Maricopa County and the carbon monoxide standard in Pima County. They are committed measured and therefore must be funded. A.R.S , thru and require the TRP for state employees. The reduction will impact the vital reporting requirements necessary to report travel control measures. The effects of not performing those functions It is estimated that the Regional Trip Reduction Program reduced vehicle miles of travel by 3.4 percent and carbon monoxide emissions by 15 tons per day in the Maricopa County Serious Area Carbon Monoxide Maintenance Plan and is also essential to Pima County s Limited Maintenance Plan for Carbon Monoxide. It would be very difficult to find a substitute measure with this magnitude of impact. Possible alternative ways to fund the program Transfer funding to the Counties. Where in the agency is this function located Air Quality Division. Provide a legal citation for this function

26 HB2006, Laws 2009 Ch. 11, Section 6, P.16, Lines 7 and 13, A.R.S

27 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Eliminate South Phoenix Project funding Other Funds Issue Priority: 5 Reduction Amounts: Air Quality Fund (2226): $350,000 Total: $350,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced The South Phoenix Project funding would be eliminated. This money would have been used to allow the Maricopa County Department of Public Health to conduct health screening and treatment referral services for the people living in the area most heavily affected by the Quality Printed Circuits and Arizona Garden and Supply industrial fires. The effects of not performing those functions Air and Soil monitoring for the project has been completed and the final technical report is being written. The effects will be no follow up with residents to assess health effects of air pollution. Possible alternative ways to fund the program At present there are no alternative sources of funding for this part of the South Phoenix Project. Where in the agency is this function located Air Quality Division. Provide a legal citation for this function A.R.S (c)

28 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Eliminate MAP refunds and reduce professional contract services Other Funds Issue Priority: 6 Reduction Amounts: Centralized Monitoring Fund (2308): $320,000 Total: $320,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced ADEQ s Monitoring Assistance Program (MAP) was established in 1998 to assist small public water systems with regulatory compliance water monitoring requirements to ensure the provision of safe and reliable drinking water. MAP provides for the scheduling, collection, transport and analysis of compliance drinking water samples, as well as the review and reporting of those analytical results by use of an outside contractor. Through economies of scale, MAP is able to provide a low cost, high return service program for the roughly 900 public water systems serving nearly 1,000,000 Arizonans. The effects of not performing those functions Prior to the origination of MAP, many small public water systems did not comply with the regulatory monitoring requirements leaving customers vulnerable to receiving water of unknown quality and/or resulted in systems in significant non-compliance for missed monitoring. Continual fund transfers and reduction of appropriation authority will quickly force MAP into the red operationally and either the scope of MAP coverage will have to be reduced to cover fewer parameters (e.g., nitrate, nitrite, asbestos, etc.) or fewer systems covered. It is important to note that regardless of the extent or lack of MAP sampling coverage, all compliance monitoring as outlined in Arizona statute and rule will remain in effect Arizona s small water systems. Since MAP operates within a very slim financial margin, the threat to public health is potentially high should program coverage be curtailed or entirely eliminated as water of unknown quality will be served to the general public. Transfer of this $320,000 will eliminate refunds to the contributing water systems as has been done in prior years. Possible alternative ways to fund the program Increase annual fees under A.R.S (F).

29 Where in the agency is this function located Water Quality Division Drinking Water Section. Provide a legal citation for this function A.R.S establishes the Monitoring Assistance Program.

30 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Reduce Air Assessment all other operating and equipment repair and maintenance Other Funds Issue Priority: 7 Reduction Amounts: Air Quality Fund: (2226) $260,500 Total: $260,500 Issue Description and Statement of Effects The functions of the program being eliminated or reduced This reduction will further reduce the amount of air monitoring equipment parts and maintenance supplies available for the Assessment Section to keep field equipment operational at ADEQ s federally-mandated monitoring sites for concentrations of air pollutants for which EPA has developed National Ambient Air Quality Standards. The effects of not performing those functions If the remaining funds are totally expended before the end of the fiscal year, equipment could be shut down. AQD s allocation of $20,000 for building security is cut due to the additional significant impact to AQFF. Possible alternative ways to fund the program Since EPA grant funding mainly covers personnel-related costs, there are no other funding sources available for spare parts and utility bills for service at our sites unless EPA agrees to modify the grant. Where in the agency is this function located Air Quality Division, Air Assessment Section Provide a legal citation for this function Statutory Authorization A.R.S

31 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Lengthen permitting times for Hazardous Waste Facilities Other Funds Issue Priority: 8 Reduction Amounts: Hazardous Waste Management Fund (2178): $200,000 Total: $200,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced The Hazardous Waste Management Fund was established to inform, educate, and train the general public and hazardous waste facility owners and operators on proper hazardous waste management practices; support statewide hazardous waste planning and program development activities; process, issue and maintain permits for treatment, storage or disposal facilities; monitor compliance, investigate and conduct enforcement activities pertaining to the management of hazardous waste; administer the pollution prevention program and fund the pollution prevention technical assistance grant. ADEQ s hazardous waste program regulates a universe of approximately 10,500 facilities and activities. Inspections and Compliance Program ADEQ currently employs six hazardous waste compliance officers who conduct approximately 120 inspections a year. Inspections are conducted at all types of facilities that generate, treat, store or dispose of hazardous waste. Compliance officers must comply with performance measures including responding to complaints within five days and issuing inspection reports in a timely manner. They are also tasked with overseeing the cleanup of 27 Resource Conservation and Recovery Act (RCRA) sites contaminated with hazardous waste. Through a delegation agreement, ADEQ staff also monitor the Pima County Department of Environmental Quality s (PDEQ) hazardous waste inspections program. This oversight includes conducting staff training and oversight inspections, reviewing inspection reports and enforcement documents, and providing assistance and regulatory guidance to PDEQ as needed. Permitting Program

32 ADEQ currently has two hazardous waste permit writers. Because of limited staff, ADEQ utilizes contractors to perform expedited hazardous waste permitting activities. Permit applications, permit renewals, permit modifications and regulations governing hazardous waste facilities are complex and require many months of review and discussion between the applicant and ADEQ staff, prior to approval, in order to ensure that permitted facilities operate in a manner that will prevent the release of hazardous waste into the environment. The effects of not performing those functions The proposed reduction would result in an approximate 38 percent reduction in the budget line for professional and outside services, and prevent ADEQ from filling position vacancies that may arise in the future. ADEQ will take approximately six months longer to issue hazardous waste permits, increasing the length of time hazardous waste treatment, storage or disposal facilities are unable to begin or expand operations in Arizona. The proposed reduction would also significantly reduce ADEQ s ability to implement other critical program functions including collection of samples during inspections to determine the regulatory status of potential hazardous waste; collection of groundwater quality data to ensure hazardous waste is being cleaned up appropriately. Possible alternative ways to fund the program Increase permit fees, collected in accordance with and generator fees, collected in accordance with Where in the agency is this function located Waste Programs Division, Inspections and Compliance Section and Permits Section Provide a legal citation for this function A.R.S

33 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Reduce transfer to counties SLI for Pima County Other Funds Issue Priority: 9 Reduction Amounts: Air Quality Fund (2226): $104,500 Total: $104,500 Issue Description and Statement of Effects The functions of the program being eliminated or reduced Each year, the Air Quality Fund provides monies to the Pima County Department of Environmental Quality (PDEQ) to operate carbon monoxide (CO) air quality monitors at two intersections where historic violations were observed. Although the CO standards were violated frequently in the region during the 1970s, there have been no violations of the CO standard since CO levels are currently around 25% of the EPA health Standard. Therefore CO is no longer considered a health threat in metro Tucson. The effects of not performing those functions Monitoring continues, however, under the Pima Association of Governments (PAG) Carbon Monoxide Maintenance Plan. This reduction of $104,500 from the FY 10 allocation still leaves PDEQ with $41,200 to use while PDEQ and PAG negotiate options with EPA. The total appropriation for FY2010 to Pima County was $145,700. Possible alternative ways to fund the program EPA Funding Provide a legal citation for this function HB2006, Laws 2009 Ch. 11, Section 6

34 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Reducing Voluntary Remediation Program technical reviews & approvals Other Funds Issue Priority: 10 Reduction Amounts: Voluntary Remediation Fund (2564): $100,000 Total: $100,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced Through ADEQ's Voluntary Remediation Program (VRP), property owners, prospective purchasers and other interested parties investigate and clean up contaminated sites in cooperation with ADEQ. VRP provides a streamlined process for program participants who work with a single point of contact at ADEQ to address applicable cross-program remediation efforts. ADEQ reviews voluntary remedial actions and provides a closure document for successful site remediation that is accepted by all relevant ADEQ programs. There are currently 90 sites in the VRP at which contaminant characterization or remediation is being conducted. ADEQ has provided oversight and closure for 155 sites since the program was established in The VRP is funded through a $2,000 non-refundable application fee (upon acceptance into the VRP, the fee is credited against total reimbursable costs) and an hourly oversight rate of $110 per hour [A.A.C. Title 18, Chapter 7, Article 5). The effects of not performing those functions; The technical review and approval process may slow as a result of the proposed budget reduction. Site remediation is generally a lengthy process. One of the key benefits of joining the VRP is expedited review and approval of work plans and faster cleanup of contamination. Expedited remediation often results in the contaminated property being put back into productive use faster. Entities interested in cleanup through the VRP may decide against joining the VRP, if timeframes are extended because ADEQ is unable to provide expedited review and approval. ADEQ s ability to meet the intent of the VRP will be reduced by the Budget reduction.

35 possible alternative ways to fund the program; Increase application fees and oversight hourly rate. where in the agency is this function located; Waste Programs Division, Remedial Projects Section provide a legal citation for this function A.R.S

36 STATE OF ARIZONA FY 2010 BUDGET REDUCTIONS - ISSUE DESCRIPTIONS Issue Title: Eliminate ASU Technical Contract for DOAS Other Funds Issue Priority: 11 Reduction Amounts: Air Quality Fund (2226): $35,000 Total: $35,000 Issue Description and Statement of Effects The functions of the program being eliminated or reduced Reduction of this contract will eliminate the operation of the Differential Optical Absorption Spectroscope (DOAS) ($30,000) and reduce our account for Computer cluster maintenance ($5,000) at ASU. The effects of not performing those functions Loss of the DOAS will completely halt our study of mobile source emissions at the junction of Routes 202 and 101 and their impact on Tribal lands and take two students and two consultants off the ASU payroll who maintained the instrument, analyzed the data and wrote the technical reports. Possible alternative ways to fund the program There is no alternative funding for this issue unless EPA agrees to fund this activity. Provide a legal citation for this function A.R.S (C) Air Assessment Citation is (2) (4)