Slideshow Transcript

1. Slide 1: Remediation and Redevelopment Division Our cleanup programs are vital to Michigan’s future
2. Slide 2: Today’s presentation will address… Fresh water • Why we’re here • Who we are • What we do Healthy future • Accomplishments • Funding issues/needs • Consequences of Clean land funding shortfalls Clean land
3. Slide 3: Why we’re here Our Legacy . . . • 100+ year industrial heritage • Tens of thousands of contaminated sites • Hundreds of new sites discovered each year ---------------- Aggressive cleanup initiatives are vital to Michigan’s continued economic and environmental health
4. Slide 4: Who we are 260 RRD staff statewide; 8 district and 5 field offices • Geologists • Toxicologists • Engineers • Chemists • Legal experts • Environmental analysts • Equipment technicians
5. Slide 5: What we do After Before Remediation: Manage soil and Redevelopment: Facilitate brownfield groundwater cleanups redevelopment and a strong economy Protect public health Safeguard our natural resources
6. Slide 6: What we do Drum removals Tank removals Abating imminent fire, vapor, explosion hazards Monitor well installation
7. Slide 7: What we do Emergency spill response Demolition Alternate water provisions Investigations and assessments
8. Slide 8: What we do Basic Programs • Michigan Contaminated Site Cleanup Program • Leaking Underground Storage Tank Program • Federal Superfund Program in Michigan • Brownfield Redevelopment/Financial Incentives • State-Owned Sites Cleanup Program
9. Slide 9: Accomplishments • Oversight/assistance on more than 10,000 cleanup projects performed by liable parties • $927 M in state funds committed at nearly 1,800 orphan sites for cleanup/redevelopment activities  1,019 sites with cleanup actions completed  521 of the completed sites prepared for redevelopment  10,000+ homes/businesses provided safe drinking water  16 municipal water supply systems completed  49 abandoned landfills contained/addressed  Hundreds of sites where fire, vapor and explosion risks mitigated, or where abandoned, hazardous buildings demolished
10. Slide 10: Accomplishments Tank Program 12,000 leaking underground storage tank releases have been addressed (closed) -- both liable party and orphan
11. Slide 11: Accomplishments Superfund Program • $853M spent at 82 MI Superfund sites (incl. $32 M in state funds) – 16 sites are completed (cleanups achieved) – 59 sites have final cleanup remedies underway
12. Slide 12: Accomplishments Brownfield Grants and Loans Program • $95 M awarded to 228 Before grant/loan projects statewide • $3.1 B in private investment generated • 18,000 jobs created After
13. Slide 13: Accomplishments Publicly Funded Sites • Goal is risk reduction, not complete cleanup • Range of cleanup costs and timeframe varies per site: – Low: $50,000; 1-3 years – Medium: $500,000; 3+ years – High: $3.5 M - 100+ M; 10+ years
14. Slide 14: Why It Matters Detroit Riverfront Project The Problem
15. Slide 15: Why It Matters Detroit Riverfront Project Lafarge Silo Remediation Holnam Silo Medusa Silo After
16. Slide 16: Why It Matters Detroit Riverfront Project Former Detroit Coke site Remediation Detroit River New Lafarge Plant
17. Slide 17: Why It Matters Detroit Riverfront Project @Water Lofts (former Lafarge silo) Future The Watermark (former Medusa silo) Chene East (former Holnam silo)
18. Slide 18: Detroit International Riverfront Project PROGRESS SO FAR GM Plaza-Riverfront Rivard Plaza - State Park – Carousel Harbor Promenade
19. Slide 19: Detroit International Riverfront Project THE FUTURE Dequindre Cut Walkway Port Authority Phase II enhancements Tri-Centennial Park-Harbor Former Uniroyal Site
20. Slide 20: Why It Matters Six Star Landfill – Rochester Hills The Problem: • Fire and explosion risks from methane gas build- up in soil • House near landfill explodes from methane gas entering home; other homes/occupants threatened • Leaking landfill wastes seep out at multiple locations due to eroded landfill cover
21. Slide 21: Why It Matters Six Star Landfill Site Actions to Date: $2.2M state funds committed • Trench dug near homes to capture leaking landfill wastes • Methane extraction systems installed at affected residences • Monitor/reduce risk of methane migration in the soil Unmet Need: $500K • Operation/maintenance of methane monitoring system at affected residences only
22. Slide 22: Funding Needs • Thousands of sites we already know about need more work: – More than 400 current projects need additional funding to complete, including long term operation and maintenance of treatment systems – At least 1,600 abandoned landfills require assessment/control to address potential methane and groundwater problems – There is a continuing need to provide safe alternative drinking water supplies – 4,500 orphan underground tank releases require action – Thousands of derelict buildings pose public safety hazards and blighting influences in urban communities
23. Slide 23: Funding Needs What will the cleanup program cost? – Current level of cleanup effort – Additional tank program needs
24. Slide 24: Funding Needs (current level) • Total need can’t be quantified • Need will exist for foreseeable future • Continuing level of effort will cost $95 million* per year for: – Liable party oversight – Publicly funded cleanups – Brownfield grants and loans – Brownfield technical assistance *Excludes leaking underground storage tanks and state-owned sites
25. Slide 25: Funding Sources (Historical) • Unclaimed Bottle Deposits – Cleanup & Redevelopment Fund (CRF) • Recovery of State Costs – Environmental Response Fund (ERF) • General Obligation Bonds – 1988 Quality of Life Bond – 1998 Clean Michigan Initiative Bond (CMI) • General Funds (prior to 2002) • Refined Petroleum Fund (RPF) Fee
26. Slide 26: Funding Challenge • One-time funding sources depleted – 1988 Quality of Life Bond – 1998 Clean Michigan Initiative Bond • Continuing revenue (ERF/CRF) is only ~$14 million/year after September 2008 • Brownfield grant funding depleted after September 2008 • Based on $95 million/year program, shortfall is $81 million per year
27. Slide 27: Immediate Consequences • No new projects • Unable to address emergency needs • Existing projects are being scaled back – Threats to public health, natural resources will be uncontrolled – Investment in cleanup systems may be lost – Redevelopment opportunities lost • Work will be sacrificed at some sites so others can proceed.
28. Slide 28: Future Needs (current level) $95 M / Year • $60 M/year for project funding* – Sites with critical public health/natural resource threat – Sites with significant redevelopment potential and environmental contamination issues – Some of these sites may later become brownfield projects • $25 M /year staffing & direct costs – Provide liable party compliance assistance – Provides brownfield and redevelopment assistance • $10 M /year for Brownfield Grants-Loans *Excludes Leaking Underground Storage Tanks and State-Owned Sites
29. Slide 29: Funding Needs (Tank Program) • More than 21,000 confirmed releases • 9,000 remain unaddressed • Almost half of these are “orphan” sites • Expected costs to address orphan sites is > $1.5 billion • About 300 new releases confirmed/year • About 300 releases “closed”/year
30. Slide 30: Funding Needs (Tank Program) • Michigan’s backlog of releases is exceeded only by California and Florida • Our three states account for about a third of all releases unaddressed in the country • California and Florida each have fees that produce more than $200 million/year
31. Slide 31: Funding Needs (Tank Program) Refined Petroleum Fee • 7/8 cent/gallon • Raises $56 million/year • Only 7% of revenue collected in FY 05-07 made available for leaking tank program
32. Slide 32: Funding Needs (Tank Program) $177 M / year* $140 M newly reported releases $ 25 M critical needs at existing orphan sites $ 12 M program administration (7%) *Minimum funding level for tank program, depending on program design
33. Slide 33: To Recap . . . TOTAL ANNUAL FUNDING NEEDS Non-Tank Program $ 95 Million Tank Program $177 Million
34. Slide 34: To Recap . . . • Michigan’s industrial legacy -- while propelling the state’s economic success -- has resulted in significant, long-standing pollution problems • While we’ve done a good job with the funding we’ve had, much remains to be accomplished • Under the current scenario, we will be out of cleanup dollars by September 2008 • We need $95M a year to address current needs, and at least $177 M a year for tank releases • Michigan’s natural resources, public health and economic health will be in jeopardy without long-term, stable funding.