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Toxics Cleanup Funds

Port of Tacoma position

The Port will work toensure that the LocalToxics Account be usedto fully fund the $72million Remedial ActionGrant priority project listprepared by theDepartment of Ecologyfor the 2013-2015biennium.

Contact:

Sean EaganGovernment Affairs Directorseagan@portoftacoma.com(253) 428-8663

(Printed December 2012)

The Issue

Ports currently receive Remedial Action Grants (RAGs) from the Local Toxics Account(LTCA) to clean up contaminated properties. The account is funded by a dedicated tax ontoxics in the state. While the Department of Ecology identified $170 million in clean-up needs

statewide for the 2013-2015 biennium, it identified a prioritized project list worth $72 million.At this funding level, Ecology anticipates being able to support four Port of Tacoma clean-upprojects (see back). Inadequate funding of Remedial Action Grants-- or diversion of LTCAfunds out of the account-- jeopardizes those multi-year clean-up projects.

Cleanups Create Family Wage Jobs

Often the potential liability associated with contamination complicates business development.Industrial cleanups allow for the redevelopment of abandoned, idled and underused facilities.The result: property is put back into productive use, the tax base expands, and jobs arecreated. For example, the Port of Tacoma envisions developing its Kaiser property into amarine terminal for exports.

According to a recent Department of Ecology study, every dollar spent on remediation resultsin $7 in long-term payrolls, $32 in business revenue and $6 in tax revenue as cleaned-upproperties are put into productive use

Industrial Cleanups Help the Environment

The state contains hundreds of hazardous waste sites which threaten the states waterresources, including Puget Sound, and present serious threats to human health and theenvironment. For example, an arsenic plume on the Arkema property on Tacomas Tideflatsthreatens re-contaminating Commencement Bay. The costs of eliminating these threats oftenare beyond the financial means of local governments. Using RAGs, the Port has beenespecially effective at cleaning up near-shore properties and aquatic lands contaminated bydecades of industrial practices by previous owners that threaten the health of the Puget

Sound.

Remedial Action Grants LeverageLocal Government Contributions

To date, the Port of Tacoma has alreadyspent $48.2 million on its five priority clean-up projects (see back). It plans to spend anadditional $26.8 million, but only if the stateprovides matching funds through RemedialAction Grants. RAGs are provided to localgovernments after they enter into an

Agreed Order with Ecology to clean up acontaminated property. Local govern-

ments assume tremendous risk when theyagree to undertake these projects. Theirability to assume this risk depends on thestates commitment to remain a dedicated,long-term partner that will continue toprovide matching funds for cleanup projectsthat often span several biennia. If the integrityof this traditional partnership becomes quest-ionable, it could serve as a strong disincentiveto pursue these projects.

Putting contaminatedproperties back intoproductive use

Through the use of state RemedialAction Grants, the Port of Tacoma hasspent $10 million cleaning up 96 acresof the former Kaiser Aluminum site In

Tacoma. This will allow for thedevelopment of a new, modern bulkcargo facility. An estimated $150 millionin private capital is expected to beinvested into the facility, creating bothconstruction and permanent jobs on thispreviously contaminated property.

mailto:seagan@portoftacoma.commailto:seagan@portoftacoma.com

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ort o acoma

LTCA Eligible Sites

Estimated Schedules and Remedial Action Grant Funding Required

2013-2015 Biennium 2015-2017 Biennium 2017-2019 Biennium 2019-21 Biennium

Arkema Mound $ 3,100,000

Design

Construction

Monitoring

Arkema Manufac tu ring $ 1,000,000 $ 1,000,000 $20,000,000 $ 150,000

Design

Construction

MonitoringEBC $ 300,000 $ 150,000

Design

Construction

Monitoring

Parcel 2 $ 1,000,000 $ 150,000 $ 90,000

Design

Construction

Monitoring

Parcel 88 COMPLETED-- NO FUNDING NEEDED

Kaiser COMPLETED-- NO FUNDING NEEDEDTOTAL $ 5,400,000 $ 1,300,000 $20,090,000 $ 150,000