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Local Government Sites
Any local government in Oregon can apply for a SWOSA loan or
grant. Loan amounts for which the local government is liable to repay are
capped at the amount potentially raised by a surcharge or equivalent funding.
This surcharge amount is $12 per capita per year and $60 per capita per local
government unit. Of this loan, the local government has no obligation to repay
the first $100,000, per site, and may treat it as a grant. Funds required for
investigation and cleanup beyond the surcharge amount may be granted to the
local government to complete the removal and remedial actions. A surcharge is
defined in OAR 340-122-0520(2) and ORS 459.311.
Example
A local government applies for SWOSA funds to clean up a sizeable
hazardous release from a historic landfill. The local, governed body is 10,000
people. The cost of the cleanup is $1,000,000. The local government applies for
a loan through the SWOSA and is selected. The maximum amount that can be raised
by the local government through a surcharge is $12 per capita per year up to a
total of $60 per capita. The local government applies the surcharge and raises
$120,000 per year for a maximum of five years, totaling $600,000. The amount of
$600,000 is the maximum liability of the local government, of which there is no
obligation to repay the first $100,000 of the loan. Thus, DEQ pays for the
first $100,000 and the remaining $400,000 of the cleanup cost, and the local
government is responsible for repaying $500,000 to the Solid Waste Orphan Site
Account, the terms of which are laid out in an intergovernmental agreement on a
case-by-case basis.
Private Sites (Solid Waste Orphans)
Private sites qualifying for SWOSA funding are known as
Solid Waste Orphans. For these sites, if the responsible party is known, but
unable to pay, they must submit to an Ability to Pay (ATP) analysis, initiated
by DEQ. Then if DEQ determines the responsible party is unable to pay, and thus
qualifies for solid waste orphan funding, DEQ may attempt to recover its costs
of the cleanup. To recover its costs, DEQ may take actions, including but not
limited to, placing a lien on the property in accordance with ORS 465.335. DEQ may reassess the responsible party’s
ability to pay in the future to update repayment options on an annual or less
frequent basis to update repayment options (e.g., developing a repayment plan,
or reducing payments) in the event the responsible party’s financial situation
changes.