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  • Model Toxics Control Accounts Ten-Year Financing Report 2016 Toxics Cleanup Program OCTOBER 2016 Publication No. 16-09-060

  • MTCA Ten-Year Financing Report 2016

    Washington State Department of Ecology Publication No. 16-09-060

    Publication and Contact Information This report is available on the Department of Ecologys website at https://fortress.wa.gov/ecy/publications/SummaryPages/1609060.html For more information contact:

    Toxics Cleanup Program Financial Services P.O. Box 47600 Olympia, WA 98504-7600

    Phone: (360) 407-7170

    Washington State Department of Ecology www.ecy.wa.gov

    o Headquarters, Lacey (360) 407-6000 o Northwest Regional Office, Bellevue (425) 649-7000 o Southwest Regional Office, Lacey (360) 407-6300 o Central Regional Office, Yakima (509) 575-2490 o Eastern Regional Office, Spokane (509) 329-3400

    To request ADA accommodation including materials in a format for the visually impaired, call Ecologys Toxics Cleanup Program at 360-407-7170 or visit http://www.ecy.wa.gov/accessibility.html. Persons with impaired hearing may call Washington Relay Service at 711. Persons with speech disability may call TTY at 877-833-6341.

    https://fortress.wa.gov/ecy/publications/SummaryPages/1609060.htmlhttp://www.ecy.wa.gov/http://www.ecy.wa.gov/accessibility.html

  • Model Toxics Control Accounts Ten-Year Financing Report 2016

    Toxics Cleanup Program

    Toxics Cleanup Program Washington State Department of Ecology

    Olympia, Washington

    October 2016 Publication No. 16-09-060

  • MTCA Ten-Year Financing Report 2016

    Washington State Department of Ecology Publication No. 16-09-060

    This page left intentionally blank.

  • MTCA Ten-Year Financing Report 2016

    Washington State Department of Ecology i Publication No. 16-09-060

    Table of Contents

    Tables and Figures ....................................................................................................... iv Acronyms and Abbreviations ...................................................................................... v Acknowledgments....................................................................................................... vii Summary ........................................................................................................................ 1

    Overview: MTCA Ten-Year Financing Report 2016 ..................................................... 2

    Overview: Sustained Drop in Crude Oil Prices Impacts Hazardous Substance Tax Forecasts and Collections ............................................................................................ 3

    Overview: Financing Needs for Local Governments Remedial Action Grants ........... 4

    Overview: Financing Needs for State-Directed Work ................................................... 6

    Overview: Financing Needs for Large Multi-Biennia Cleanup Projects ........................ 8

    Learn More about Ecologys Work and Remedial Action Benefits ............................... 9

    Chapter 1: Introduction ............................................................................................... 11 Ecology and the Toxics Cleanup Program ................................................................. 11

    The Model Toxics Control Act .................................................................................... 11

    Legislative Changes Direct Ten-Year Reporting Requirements ................................. 12

    MTCA Amendments in 2007 and 2013 ................................................................... 12

    Legislature Establishes Criteria for Prioritizing Funding during 201517 Biennium 13

    Ecologys Legislative Reports as of September 2016 ............................................. 13

    Ecologys Two MTCA Financial Reports Work in Tandem ......................................... 13

    MTCA Ten-Year Financing Report ......................................................................... 14

    MTCA Biennial Report ............................................................................................ 14

    Assumptions in the 2016 MTCA Ten-Year Financing Report..................................... 15

    Chapter 2: Model Toxics Control Act Funding and Uses ........................................ 17 Hazardous Substance Tax Funds the Model Toxics Control Accounts ...................... 17

    201517 Biennium Capital Budget and MTCA Revenue Decline .............................. 19

    Ecology Actively Managing MTCA Revenue Shortfall ................................................ 21

    MTCA Funding Alternatives ....................................................................................... 23

    201719 Biennium Capital Budget Requests............................................................. 23

  • Table of Contents

    Washington State Department of Ecology ii Publication No. 16-09-060

    Chapter 3: Remedial Actions and the Ten-Year Financing Plan ............................ 25 Remedial Actions Remove Hazardous Threats ......................................................... 25

    Funding in Context ..................................................................................................... 26

    Soliciting, Identifying, and Ranking Cleanup Projects for the MTCA Ten-Year Financing Report 2016 ............................................................................................... 28

    Soliciting and Identifying Local Government Cleanup Projects ............................... 28

    Identifying State-Directed Cleanup Work ................................................................ 28

    Ranking Cleanup Projects ...................................................................................... 29

    MTCAs Cleanup Process Informs Project Prioritization ......................................... 29

    Financial Stability Key for Successful Cleanups ........................................................ 31

    Additional Challenges Impact Rate of Cleanups ........................................................ 36

    Financing Large Cleanups ...................................................................................... 36

    Extended Grant Agreements .................................................................................. 36

    Brownfields Cleanup and Redevelopment .............................................................. 37

    Area-wide Contamination ....................................................................................... 38

    Site Complexity Affects Cleanup Speed ................................................................. 38

    Strong Tools Benefit Staff and Help Speed Rate of Cleanups ................................... 39

    Chapter 4: Local Government Remedial Action Grant Financing Needs .............. 41 Partnering with Local Governments to Outline the Need ........................................... 41

    Remedial Action Grant Program ................................................................................ 41

    Rules Governing Cleanup under MTCA ................................................................. 42

    Types of RAG Grants ............................................................................................. 43

    Ranking Projects for RAG Program Funding ............................................................. 44

    Summary of Estimated Local Government Cleanup Costs ........................................ 45

    Ten-Year Funding Estimates for MTCA Account Funding ...................................... 45

    201719 Biennium Budget Request for Local Government RAG Funding ............. 46

  • MTCA Ten-Year Financing Report 2016

    Washington State Department of Ecology iii Publication No. 16-09-060

    Chapter 5: State-Directed Work Financing Needs ................................................... 47 Orphaned & Abandoned Sites / Sites with Non-Compliant Owners / Emergency Needs ........................................................................................................................ 47

    Ranking State-Directed Projects for MTCA Funding .................................................. 47

    New Sites Will Require MTCA Funding in the Future ................................................ 48

    Summary of Estimated Cleanup Costs for State-Directed Work ................................ 48

    Ten-Year Funding Estimates for State-Directed Work ............................................ 48

    201719 Biennium Budget Request ....................................................................... 49

    Chapter 6: Large Multi-Biennia Cleanup Project Financing Needs ........................ 51 Conclusion ................................................................................................................... 55 Appendix A: Financing Tables ................................................................................... 63

    Appendix B: Reporting Requirements for MTCA Ten-Year Financing Report (RCW 70.105D.030(5)) ................................................................................................. 85

    Appendix C: House & Senate Bills that Direct the MTCA Ten-Year Financing Report ........................................................................................................................... 87

  • Table of Contents

    Washington State Department of Ecology iv Publication No. 16-09-060

    Tables and Figures

    Table 1: Summary of estimated local governments financin

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