Budget Highlights - 2002-2003

Budget highlights for each of the Cal/EPA Boards, Departments, and Offices:

• Summary: California Environmental Protection Agency
• Secretary for Environmental Protection
• Air Resources Board
• Integrated Waste Management Board
• Department of Pesticide Regulation
• State Water Resources Control Board
• Department of Toxic Substances Control
• Office of Environmental Health Hazard Assessment

California Environmental Protection Agency

Agency-wide Summary
Fiscal Year 2002-03 Budget Highlights
(All Organizations; Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	$267,594	$183,317*	- $84,277	- 31.5%
Federal	$165,898	$165,350	- $548	- 0.3%
Other	$1,228,983	$806,194	- $422,789	- 34.4%
TOTAL:	$1,662,475	$1,154,861	- $507,614	- 30.5%
Personnel Years	5,029.5	4,966,8	- 62.7	- 1.2%

* Excluding general obligation bond debt service ($19.8 million)

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $1.2 billion ($183 million General Fund*) and 4,966.8 personnel years (PYs) for the entire agency. The changes noted above reflect miscellaneous adjustments for one-time expenditures from the prior and current years.

These resources are allocated as shown in Figure EPA-1 below.

Secretary for Environmental Protection
(Office of the Secretary and Special Environmental Programs)
Fiscal Year 2002-03 Budget Highlights-0555
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	$3,684	$2,895	- $789	- 21%
Federal	$0	$0
Other	$5,774	$4,626	- $1,148	- 20%
TOTAL:	$9,458	$7,521	- $1,937	- 20%
Personnel Years	71.8	45.1	- 26.7	- 37%

The Secretary for Environmental Protection, a member of the Governor’s Cabinet, supervises and coordinates the State’s environmental protection programs-with particular focus on improving cross-media collaboration, enhancing risk assessment, enforcing laws consistently and fairly, and measuring and reporting results. The Secretary oversees the Air Resources Board, the Integrated Waste Management Board, the Department of Pesticide Regulation, the State Water Resources Control Board, the Department of Toxic Substances Control, and the Office of Environmental Health Hazard Assessment. In addition, the Secretary administers the following special environmental programs: Unified Program, Scientific Peer Review, Permit Assistance Centers, Circuit Prosecutor Project, and Environmental Enforcement.

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $7.5 million and 45.1 personnel years (PYs) for the Secretary for Environmental Protection and special environmental programs. The major changes to the board’s budget include:

• A reduction of $352,000 (General Fund) to implement a spending reduction in the Scientific Peer Review Program.
• A reduction of 27.4 personnel years related to elimination of 12 Permit Assistance Centers.

Air Resources Board

Fiscal Year 2002-03 Budget Highlights-3900
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	$ 68,870	$ 30,963	-$37,907	-55%
Federal	10,664	10,664	0	0<
Other	137,616	91,978	-45,638	-33%
TOTAL:	$217,150	$133,605	-$83,545	-38%
Personnel Years	1,040.2	1,033.0	-7.2	-1%

The Air Resources Board (ARB) has the responsibility to protect the public health of Californians by ensuring that federal and state health-based air quality standards are achieved and exposure to air toxics is reduced through a variety of controls for mobile and stationary sources of pollution.

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $133.6 million and 1,033.0 personnel years (PYs) for ARB. The major changes to ARB’s budget include:

• A reduction of $10.5 million Motor Vehicle Account to implement a spending reduction of various mobile source-related programs.
• A reduction of $4.4 million General Fund to implement a spending reduction of various stationary source programs.
• $194,000 General Fund to implement Chapter 12, Statutes of 2001 (SBX 28) for the retrofit of electrical generation facilities to minimize air emissions.
• $375,000 Reimbursements to continue support of the Portable Equipment Registration Program.
• Adjustments for one-time costs:
  • Carl Moyer Program: $16 million
  • School Bus Program: $16 million
  • Local District Energy Program: $1.6 million
  • Zero Emission Vehicles Program: $20 million
  • Rice Straw Demonstration Program: $1 million
  • Fuel Cell - Bus Demonstration: $5 million
  • Equipment Infrastructure: $8 million

Integrated Waste Management Board
Fiscal Year 2002-03 Budget Highlights-3910
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	$210	$116	-$94	-0.81
Federal	$55	$66	$11	0.17
Other	$124,097	$117,031	-$7,066	-0.06
TOTAL:	$124,362	$117,213	-$7,149	-0.06
Personnel Years	483.4	478.3	-5.1	-0.01

The Integrated Waste Management Board (IWMB) continues to address the State’s solid waste management/tire needs in the areas of facility permitting and regulation, operational assistance to local governments, and efforts to educate all California citizens on reducing the amount of material disposed in landfills. The IWMB does this by promoting the conservation tenets of “reduce, reuse, recycle, and buy recycled,” and by helping develop markets for recycled materials. In accordance with Chapter 38, Statutes of 2000 (SB 876), IWMB recently adopted a five-year plan establishing goals and priorities for the waste tire program. This plan includes programmatic and fiscal issues as well as performance objectives and measurement criteria for the waste tire recycling program.

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $117 million and 478.3 personnel years (PYs) for the IWMB. The major changes to IWMB’s budget include:

• $1,500,000 Integrated Waste Management Account (IWMA) to establish grant program to promote energy generation through the use of solid waste residuals and gas released from landfills.
• $247,000 IWMA to conduct hearings for entities that do not meet Rigid Plastic Packaging Container requirements and $1,000,000 Rigid Container Account for rigid plastic container recycling programs.
• $1,500,000 IWMA to establish a two-year grant program for the development and implementation of educational programs and to promote the use of existing educational programs, which teach the concepts of source reduction, recycling, and composting (SB 373).

Department of Pesticide Regulation
Fiscal Year 2002-03 Budget Highlights-3930
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	$17,407	$16,962	-445	-2.6%
Federal	2,241	2,192	-49	-2.2%
Other	43,368	40,553	-2,815	-6.5%
TOTAL:	$63,016	$59,707	-3,309	-5.3%
Personnel Years	438.9	425.6	-13.3	-3.0%

The Department of Pesticide Regulation (DPR) protects public health and the environment through the nation’s most rigorous and comprehensive program to evaluate pesticides and control pesticide use. The mission of DPR is to protect human health and the environment by regulating pesticide sales and use and fostering reduced-risk pest management. DPR’s oversight responsibilities include scientific evaluation of pesticides before they are licensed for sale; local enforcement to ensure pesticides are used safely; residue testing of fresh produce; environmental monitoring to detect, reduce, and prevent contamination; and programs to encourage the development and use of pest control practices that are environmentally sound.

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $59.7 million and 425.6 personnel years (PYs) for the Department of Pesticide Regulation. The major changes to DPR’s budget include:

• A reduction of $3.5 million General Fund and 14 positions (13.3 PYs), due to General Fund circumstances. DPR has proposed reductions that minimize the impact on program delivery and preserve the following priorities: strong field enforcement and compliance assistance, protection of workers and the public, and food safety.
• A temporary fund shift of $3.35 million ($1.73 million Department of Pesticide Regulation Fund and $1.62 million Food Safety Account) to the General Fund to address a shortfall in the Department of Pesticide Regulation Fund. This proposal reflects enactment of Chapter 523, Statutes of 2001 (AB 780), which extends the current 17.5 mill assessment rate through June 30, 2004 and requires DPR to report to the Legislature by January 1, 2003 with recommendations to address DPR’s permanent funding needs.

State Water Resources Control Board
Fiscal Year 2002-03 Budget Highlights-3940
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	$109,743	$87,313	-$22,430	-20.4%
Federal	130,163	130,300	137	0.1%
Other	818,336	446,034	-372,302	-45.5%
TOTAL:	$1,058,242	$663,647	-$394,595	-37.3%
Personnel Years	1,729.5	1,730.4	0.9	0.1%

The mission of the State Water Resources Control Board (SWRCB) and the nine Regional Water Quality Control Boards (RWQCBs) is to preserve, enhance and restore the quality of California’s water resources, and to ensure their proper allocation and efficient use for the benefit of present and future generations. SWRCB activities include regulatory oversight of the State’s surface, ground and coastal waters; allocation of unappropriated water; control of unauthorized water diversions; and protection of water quality in watersheds and coastal waters from point source and nonpoint sources of pollution.

The Governor’s Budget for Fiscal Year 2002-03 provides $664 million and 1,730.4 personnel years (PYs) for the SWRCB and RWQCBs. The major budgetary changes are summarized below:

• SWRCB’s core regulatory program controls the discharge of waste into the State’s waters by permitting and monitoring discharges and taking enforcement action where dischargers are out of compliance with their permits. The Governor’s Budget proposes to increase the regulated community’s support of the core regulatory program by increasing fees on dischargers. This proposal would replace $14.9 million in General Fund support with increased fee revenues.
• An augmentation of $4.3 million to continue funding for Phase II of the System for Water Information Management (SWIM II) project. The SWIM II project is designed to ultimately support the goal of providing water resources protection, enhancement and restoration by building an enterprise information management system that will automate core business processes in the SWRCB and RWQCBs.
• An augmentation of $70.8 million for grants under the Safe Drinking Water, Clean Water, Watershed Protection and Flood Protection Act of 2000 (2000 Bond, Proposition 13). This amount includes the Water Recycling Program ($2.5 million), the Watershed Protection Program ($21 million), the Nonpoint Source Pollution Control Program ($27 million), the Coastal Nonpoint Source Control Program ($13.2 million), the Southern California Integrated Watershed Program ($7.1 million), and the Lake Elsinore and San Jacinto Watershed Program ($50,000).
• An augmentation of $22.4 million to pay additional claims from the Underground Storage Tank Cleanup Fund (USTCF). The intent of the USTCF program is to protect public health and safety and the environment by rapidly distributing funds for cleanup of underground storage tank leaks. These funds will be made available to reimburse eligible claimants for their costs incurred for cleanup activities.

Department of Toxic Substances Control
Fiscal Year 2002-03 Budget Highlights-3960
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	52,454*	$31,448	-$21,006	-40.0%
Federal	22,775	22,128	-647	-2.8%
Other	96,702	102,760	+6,058	+6.3%
TOTAL:	$171,931	$156,336	-$15,595	-9.1%
Personnel Years	1099.3	1095.4	-3.9	-0.04%

*This figure does not include a one-time appropriation of $114.5 million to settle the state’s liability at the Stringfellow and Casmalia hazardous waste sites. It also does not include a one-time appropriation of $21.28 million to repay the Superfund Bond Trust Fund.

The mission of the Department of Toxic Substances Control (DTSC) is to restore, protect and enhance the environment, to ensure public health, environmental quality and economic vitality, by regulating hazardous substances, conducting and overseeing cleanups, and developing and promoting pollution prevention.

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $156.3 million and 1,095.4 personnel years (PYs) for the Department of Toxic Substances Control. Major changes include:

2001-02 Major Adjustments

• A transfer of $44 million from the Cleanup Loans and Environmental Assistance to Neighborhoods (CLEAN) Account to the General Fund. The remaining balance of $8 million in CLEAN will fund a pilot loan program, including administrative and oversight support, $500,000 for the brownfield insurance (FAIR) program, and $350,000 to implement SB 32. DTSC is reducing 9.7 PYs to reflect the decrease in CLEAN funding.
• A reduction of $5.99 million in General Fund for removal and remedial actions at the Stringfellow hazardous waste site and contract support to implement removal and remedial actions at military bases.

2002-03 Major Adjustments

• A reduction in General Fund by shifting $7.9 million to the Toxic Substances Control Account to fund direct site cleanup, oversight of military bases, and distributed administration.
• $9.3 million in Special Funds of which $8.6 million is one-time for increased costs related to facilities operations, purchase of vehicles, and office equipment to properly support DTSC employees.
• $1.5 million, one-time, in Special Funds to upgrade and replace obsolete laboratory equipment. This is the third year of a five-year plan to improve equipment in the hazardous materials laboratory.
• $910,000 Special Funds for contracts to fund waste stream studies to evaluate their applicability to hazardous waste criteria and to prepare subsequent California Environmental Quality Act (CEQA) rulemaking environmental documents.
• $460,000, one-time, in Special Funds to provide training and compliance and technical assistance to jewelry manufacturers.
• $688,000 in Special Funds to implement new legislation enacted in 2001 (including SB 32, SB 633, SB 271, and AB 470.
• $216,000 in Special Funds to permanently fund 1.9 PYs for pollution prevention activities.

Office Of Environmental Health Hazard Assessment
Fiscal Year 2002-03 Budget Highlights-3980
(Dollars in Thousands)

Fund Source	Current Year 2001-02	Budget Year 2002-03	Change
			Amount	Percentage
General	15,226	13,620	-1,606	-10.5%
Federal
Other	3,090	3,212	+122	+3.9%
TOTAL:	18,316	16,832	-1,484	- 8.1%
Personnel Years	166.4	159.0	-7.4	- 4.4%

The Office of Environmental Health Hazard Assessment (OEHHA) protects and enhances public health and the environment by objective, scientific evaluation of risks posed by hazardous substances. OEHHA’s primary role is as risk assessor for various programs under the California Environmental Protection Agency, as well as other state and local agencies. OEHHA provides these programs with the scientific tools and information upon which to base risk management decisions.

The Governor’s Budget for Fiscal Year 2002-03 proposes a total of $16.8 million and 159.0 personnel years (PYs) for OEHHA. The major changes to the department’s budget include:

• An increase in reimbursement of $120,000 from the Department of Toxic Substances Control and 2.0 limited-term positions for the California Land Environmental Restoration and Reuse Act (Chapter 764, Statutes of 2001, SB 32), which includes preparing screening numbers for chemical contaminants and identifying appropriate exposure scenarios for restricted land use.
• A reduction of $1,513,000 General Fund and 8.9 positions for scientific studies, literature research, technical services for the development of risk assessments and evaluation of contaminants, and administrative expenditures.

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