State Initiative 1, Radioactive Waste Restrictions Act
As part of KSL's election 2002 coverage, an impartial analysis of ballot issues is provided here for voter reference.

Impartial Analysis of Initiative 1:
Radioactive Waste Restrictions Act

This information is provided by the Lieutenant Governor's office.

Citizen's State Initiative Number 1 changes Utah's regulatory and tax framework affecting the disposal and storage of radioactive waste. It provides stricter regulations, certain prohibitions, and new and increased fees and taxes. The Initiative distributes 80 percent of all taxes on radioactive waste to education and 20 percent to an endowment to help alleviate homelessness and poverty.

Citizen's State Initiative Number 1 makes the following changes to Utah law:

Restricts certain employment and lobbying
It prohibits the executive director of the Department of Environmental Quality (Department), employees of the Division of Radiation (Division), and members of the Radiation Control Board (Board) from accepting employment with or lobbying for someone who is subject to the Division's regulatory authority for three years after Department or Division employment or Board membership, if that employment or lobbying is in the field of radioactive waste disposal or storage.

Expands circumstances requiring Governor's and Legislature's approval
It expands the circumstances under which the Governor's and Legislature's approval are required to grant or amend a radioactive waste disposal license or restructure a commercial radioactive waste facility.

Prohibits the approval of certain radioactive waste facilities and licenses
It prohibits the Governor, Legislature, and Board from approving new radioactive waste facilities or licenses for higher level radioactive waste, and authorizes a private citizen to sue to enforce this prohibition.

Increases existing and imposes new taxes and fees on radioactive waste
It imposes a new fee on radioactive waste to pay for impact reduction and community and economic development in the county in which the radioactive waste disposal facility is located.

It increases from $400,000 to a minimum of $5,000,000 the annual fee that an owner of a radioactive waste facility must pay for perpetual care and maintenance of the facility and eliminates this annual fee when the total reaches
$100,000,000.

It increases existing taxes on the disposal of radioactive waste and imposes new taxes on some types of radioactive waste not presently taxed.

Uses radioactive waste taxes for education and the homeless and impoverished
It creates a Fund to receive taxes imposed on radioactive waste and establishes a board to administer the Fund.
It creates an Endowment to receive money from the Fund and creates a state authority to administer the Endowment.

It requires 80 percent of the tax revenues in the Fund to be spent on education, specifically for class-size reduction, computer technology, textbooks, classroom supplies, and scholarships, and requires 20 percent, up to a maximum of
$200,000,000, to be given to the Endowment to be distributed to organizations that provide assistance to the homeless and impoverished.

Makes other changes:
It requires the Department to contract with independent scientific organizations to review certain environmental monitoring practices.

It modifies and limits membership on the Board, and removes the Department's executive director from the Board.

It removes the Board's discretion with regard to certain regulatory decisions.

It removes the Board's authority to suspend applications for commercial radioactive waste licenses under certain circumstances.

It accelerates the time at which the Board is required to begin evaluating the adequacy of the fund established for the perpetual care and maintenance of radioactive waste facilities from 2006 to 2004.

It removes a tax presently imposed on radioactive waste received for reprocessing.

It prohibits the Legislature from making appropriations from the Fund or the Endowment.

It prohibits the Legislature from reducing funding levels of programs also receiving money from the Fund or the Endowment.

It requires the tax for radioactive waste disposal or reprocessing to be paid monthly rather than quarterly.

Potential Conflicts with the United States Constitution or Utah Constitution
A limited review of this Initiative raises the following potential conflicts with the United States Constitution or Utah Constitution:

(1) the three-year lobbying prohibition may conflict with the freedom of speech provision of the First Amendment to the United States Constitution;

(2) empowering the Endowment Authority to appropriate Endowment money may improperly delegate legislative authority in violation of Article V, Section 1 of the Utah Constitution; and

(3) to the extent that this Initiative restricts the Legislature from making appropriations or reducing funding levels of state-funded programs, it may conflict with the Legislature's constitutional power to appropriate state funds.

Fiscal Impact
The revenue estimates described in this fiscal analysis depend on the continued viability of the radioactive waste disposal and storage industry in Utah. The ability of the industry to continue operations at present levels may be affected by the fee, tax, and regulatory changes made by this Initiative.

The Legislative Fiscal Analyst estimates that if waste volumes continue at current levels, tax revenues from radioactive waste that would be used for education and for the homeless and impoverished could be approximately $208,000,000 annually. The estimated annual volume of radioactive waste is based on records submitted to the Department of Environmental Quality.

Estimated revenue for impact reduction and community and economic development in Tooele County is $13,850,000.

The fee generated for perpetual care and closure of the disposal site is estimated to be $13,850,000 annually. That annual perpetual care fee would continue until $100,000,000 is accumulated, when the requirement to pay the fee ends.

The state General Fund will lose approximately $918,000 annually from radioactive waste taxes that under this Initiative will now go to education and to the homeless and impoverished. The required independent testing and oversight is estimated to cost $292,500 annually from the state General Fund.

A one-time appropriation of $100,000 from the radioactive waste tax revenues will be made to the Utah State Tax Commission with no provision for reimbursement of ongoing costs of collections. Estimated annual costs for required meetings of the Fund Board and Endowment Authority are $15,300. A one-time expenditure of $80,400 from radioactive waste tax revenues will be needed to develop six required administrative rules. It is assumed that local entities will accept the same administrative rules that are created by the Fund Board and Endowment Authority and will not require additional funds for their required rulemaking.

Effective Date
Citizen's State Initiative Number 1 takes effect January 1, 2003.

Link to more Initiative 1 information, including arguments for and against the Act.