SWRCB Geotracker – ESI Compliance management Solutions
(949) 732-0084

SITE BUDGET CHANGES – FISCAL YEAR 2012/13

The UST Cleanup Fund Update (as of July 16, 2012) provided the following information related to the Fiscal Year (FY) 12/13 annual site budgets:

 

Estimated Funds For Annual Site Budget Changes

Fiscal Year (FY) 12/13 is the second year the UST Cleanup Fund is implementing the new business model adopted pursuant to the recommendations of the 2009 external audit and task force. The
Fund’s new business model includes:
  1. Placing all Priority AB, and C claims on an annual site budget;
  2. Programmatically budgeting for overall annual costs within the amount available each year from petroleum storage fee revenues; and
  3. Avoiding creating new carryover costs from year to year.

 

The most recently updated list of annual site budgets for Priority A, B, and C claims, “Site Budgets for FY 2012_13” is posted on the UST Cleanup Fund web page.  Of the $169 million budgeted for annual site budgets for Priority A, B, and C claims, approximately $102 million have been approved as initial annual site budgets.  The remainder of the $169 million, about $67.4 million, has been identified for budget changes for Priority A, B, and C claims.
 
Nearly the entire statutorily mandated 14 percent minimum has been identified for annual site budgets for Priority C claims leaving about $4.7 million for Priority C budget changes. The remaining $62.7 million is available for annual site budgets for Priority A and B claims.  The amount in the far right column in the table below shows the current estimate of funds available for FY 12/13 budget changes.
 
In addition to that budgeted reserve, an uncertain amount of funding may also become available as claims are identified that do not need their annual site budgets. Throughout the year the Fund is notified of claims that do not intend to expend the approved annual site budgets. These claims include those where (1) the claimant submits a request for a decreased budget; and (2) those where claims close and do not use the budgeted amount.
 
 

Estimated FY 12/13 Funding Available for Priority Class Payments

(Approximate UST Cleanup Fund Budget for Reimbursement of Claims)

Cost Categories

Approximate

Budget by

Category

(Million)

Approximate

Amount Budgeted

(as of 7/16/12)

(Million)

Approximate

Amount Available for

Budget Changes

(Million)

 
TOTAL
$227
$135.6
$67.4

Previously Accrued Costs

Priority A, B, C, D

Old Costs (<7/1/11)

$    9 N/A N/A

New Priority B

Old Costs (< LOC)

$  15 N/A N/A
SubTotal $  24 N/A N/A

Annual Site Budgets:

Priority A, B, C

Priority A

Approximately

$135 for combined

Priority A and B

claims

$    2.0

Less than

$62.7 for combined

Priority A and B

claims

Priority B $  70.3
Priority C (14%) $  34 $  29.3 $  4.7
SubTotal $169 $101.6 $67.4

Annual Budget:

Priority D (14%)

$  34 $  34.0 $    0
SubTotal $203 $135.6 $67.4

Estimated Funding

Available For Priority Class Payments

 

Read more about the California UST Cleanup Fund Budget Change Request
Process for Fiscal Year (FY) 2012/2013 annual site budgets.

 

You might also want to view the original UST Cleanup Fund Program Update Letter dated July 25, 2012.