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February 11, 2005

The $8 million question

OFFICIALS PUSH FOR LARGER SLICE OF YUCCA OVERSIGHT FUNDS

By HEIDI J. BERTOLINO
SPECIAL TO THE PVT

Representation from nine of 10 counties, each considered affected units of local government (AULG) under the Yucca Mountain project, convened in Tonopah Feb. 4 to develop a new formula to distribute $8 million in oversight funds. The funds are dispersed annually through congressional appropriations to fund oversight work of the Yucca Mountain project.

The formula used for distribution of these funds has not seen a change since funding became available in 1992, but this year Nye County sent out word that they intended to ask for a bigger share of the pie.

To begin debate, Nye County asked for $4 million, half of the appropriated funds. Historically, Nye County received 33.5 percent, translating to $2.68 million of this year's appropriations under the old formula. With Nye, Esmeralda and Lincoln counties asking for increases, the combined counties' "wish list" for this year's AULG oversight funding totaled $9,725,000. The counties were left to cut $1,725,000 from their wish lists to meet the $8 million appropriation.

Inyo County in California was the only county to not send representatives and perhaps they will be feeling the crunch in their program this year as a result. When things were all said and done, Inyo and Clark county's percent of the pie was cut the most dramatically. Nye, Lincoln and Esmeralda counties each ended up with more of the pie; Churchill, Eureka, Lander and White Pine counties received amounts comparable to previous years' funding levels.

Nye County Commission Chairwoman Candice Trummell, employee David Swanson and consultant Cash Jaszczak told the other counties Nye needed more funds because of the project's natural evolution. They pointed out Nye County's unique standing as the host county for Yucca Mountain and handed other "Nye County unique" statistics such as 68 percent of the proposed rail would be in Nye.

Each of the counties started the cut by revealing their estimated project account balances. Clark County had yet to even draw on their 2004 funds, leaving at least $1 million still available to them. The counties immediately looked to Irene Navis, a planning manager on the project to make up the difference. She argued there were many unknowns in their project plan. She did not know how intensive a role the county would take in the Yucca Mountain licensing program.

She said she did not want to give up $1 million just because it had not been spent. Eventually, she agreed to ask her superiors for an eight percent cut, leaving Clark with $1.5 million in funding for 2005.

Esmeralda County reported a meager $2,000 left in its project account. Esmeralda County asked for $400,000 to run its oversight program, almost double its prior year appropriation.

"Our work changed overnight with the delegation of the Caliente Corridor. I have property owners and DOE (Department of Energy) reps in and out of my office," said George McCorkell, oversight director for Esmeralda County.

"The circumstances of the past 14 months justify which counties are more impacted or less impacted," said Ace Robison of Robison-Seidler, a consulting firm that does oversight work for both Esmeralda and Lincoln counties. Robison said the recent delegation of the rail line and other DOE decisions justified the change to the formula.

Clark County representatives argued that one county could not dictate, or justify, the needs of another county. Lincoln County ended up with $1.2 million, a 4 percent increase over the prior year.

Most of the representatives did not want to take away any of the funds distributed to the smaller counties, those who historically only receive 2-3 percent of the appropriated funds or $285,000, as discussed last week. Nye County reduced its funding request from $4 million to $3.19 million; still up $1.5 million from the amount it would have received under the old formula.

The focus then turned to Inyo County, which had been appropriated at 7.5 percent in past years, or $600,000 this year under the old formula. The county's program was discussed briefly with many representatives openly frustrated Inyo had not sent a representative to the meeting. They speculated Inyo representatives had revealed a projected $1.6 million budget for 2005, which would mean the county had around $1 million left over from a previous year's appropriation.

Some guessed the county's primary focus for oversight funds had been its water-testing program.

The county representatives discussed reducing Inyo County's portion from the requested $600,000 to $285,000. Commissioner Trummell said that Inyo County was down gradient of Nye County and any water contaminants that traveled from the Yucca Mountain repository to Inyo County would have to travel through Nye County. It was suggested the funds would be more appropriate in the hands of Nye County, with water testing done through a cooperative agreement between Inyo and Nye counties. Nye County would not reduce its request any further to accommodate Inyo's request for full funding, nor would Clark County.

A break was called so Nye County representatives could call Inyo County and try to explain why they wanted to reduce the appropriations to them. Trummell and Swanson indicated Inyo did not want to negotiate and somebody in their oversight office had threatened to litigate if they were not funded at the same level they had historically been funded at.

"They are not here," was the common chime as members discussed Inyo County's funds and programs and the necessity for the counties to reach a unanimous decision. Esmeralda County Commissioner R.J. Gillium said he would have accepted less for Esmeralda County in favor of Inyo County if they had shown up and explained the importance of their projects.

The representatives did not know with certainty if the Energy Department would accept the new formula without a unanimous consensus among the AULG. They discussed the risk of additional cuts to smaller counties if DOE decides to change the distribution because Inyo could not agree.

The congressional appropriation asks the counties to distribute the money and the Energy Department releases the funds, based on each county's work plan.

Ultimately, the counties decided to cut Inyo's request by $310,000. They decided to send a letter to the Energy Department detailing the new distribution, with Nye receiving 39 percent, Lincoln, 15 percent, Esmeralda 5 percent, Clark 18 percent and Inyo, Mineral, Churchill, Lander, White Pine and Eureka each receiving 3.5 percent.

It was expected that Inyo County would formally object to the new formula.



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