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Explore the impact of reduced federal funding on state-run environmental programs, the shift in funding sources, and the tough decisions states face in prioritizing tasks to meet regulatory requirements.
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DOING MORE WITH LESS Shellie Chard-McClary Assistant Director, Policy and Planning Oklahoma DEQ
FEDERAL PROGRAMS OPERATED BY THE STATES • CWA • SDWA • RCRA • CAA • SUPERFUND
CWSRF – decrease of ~$662 million DWSRF - decrease of ~$4 million 106 – increase of ~$21 million ($18 million for monitoring –FY07) 319(h) – decrease of ~$44.5 million 104(b)(3) – eliminated PWS – decrease of ~$3.5 million Underground tanks – increase of ~$25.8 million Air – decrease of ~$43 million Operator training - eliminated FEDERAL FUNDING TO STATES Compared to FY04:
OTHER FUNDING REQUIRED TO ADMINISTER FEDERAL PROGRAMS • State appropriated dollars • Generally decreasing with focus on education, healthcare, prisons, transportation needs, etc. • Fees paid by regulated community • Generally increasing to make up for shortfall in federal and state funding
FUNDING BREAKDOWNS • Federal Grants – 18% • State General Revenue –30% • Fees Paid by Regulated Community – 52%
STATE QUESTIONS • How high can fees be raised to supplement federally administered programs? • Which programs will get cut or eliminated? • Which programs get returned to EPA? • What are the states priorities?
WHICH TASKS WILL STATES FORGO? • Data entry will suffer in order to perform inspections • Compliance assistance will be reduced to focus more on enforcement actions • Performance Track participation or other voluntary programs will be reduced or eliminated
WHICH PROGRAMS WILL STATES GIVE BACK TO EPA? • TMDLs • Stormwater • CAFOs • SSO/CSO • PWS • Air Toxics / MACT Standards • RCRA
PRIORITIES Which is more important, • Core programs or voluntary programs? • Performing inspections or doing data entry on inspections? • Enforcement or outreach? • Protecting the environment and citizens from arsenic: • in the air or • in water bodies or • in drinking water or • in contaminated land?
Current Determination of Priorities Local Governments Politics States
EPA BIG EXPENDITURES IMPACTING STATES • Significant number of EPA contractors • Funding for voluntary programs
BOTTOM LINE • States can’t do everything • There must be some trade offs • EPA must publicly support states fee efforts • EPA must bare some of the cuts not just pass through to states