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NOTICE: ~_- INCREASED CHARGES FOR ENVIRONMENTAL CLEANUPS August 1997 For approximately six years, the.Department of Environmental Quality (Department) has been holding its Waste Management and Cleanup (WMC) program's indirect rate for oversight of hazardous substance and leaking underground storage tank cleanups at a level below actual costs. We have been able to do this because fees on the disposal of hazardous w~ste at the g:~vately oper~t~d hazardous waste disposal fac:lity rieai Arlington, Oregon have been used to supplement program revenues. Unfortunately, the Department will no longer be able to continue this practice. The amount of hazardous waste going to the Arlington facility has taken a significant downturn. The result is a major reduction in revenue for environmental protection work. The Department and others (industry and environmental representatives, legislators, and the Governor's Office) worked hard during the legislative session to solve the revenue shortfall. The legislative outcome was a combination of solutions that included charging responsible parties the full amount of WMC indirect costs. This change took effect July l, 1997, and will first appear on invoices for the July 1997 billing cycle to be sent out in late August 1997. Other solutions that will be implemented include a general fund contribution and WMC program reductions. The WMC program indirect rate includes such things as: program administration, general technical support to all cleanups, rent, and general supplies and services. This rate is reviewed and adjusted annually. It is important to note that the only indirect rate being increased on cleanup invoices is the WMC program indirect rate which reflects program- specific costs. The effect of this increase on total invoice amounts will be approximately 35%, on average, as shown in the example below: Category Current Invoice Future Invoice Personal Services $100.00 $100.00 Supplies and Services 20.00 20.00 Agency Indirect 19.70 19.63 WMC Program Indirect 99.00 187.00 12% Rule Rewrite Surcharge 12.00 12.00 Total Invoice $250.70 $338.63