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<br />gaps in the state's General Fund. Additionally the program faces a deficit of approximately $60 <br />million in the FY 2009-10 budget. <br /> <br />The Governor proposes to repay loans to the fund by transferring $58.4 million from the General <br />Fund to address the current deficit and $98.2 million in FY 2010-11. <br /> <br />In addition to loan repayments, the Governor is pursuing changes to the program's structure. <br />Provisions that would eliminate a guaranteed city grant program, providing funding for city <br />recycling and curbside collection programs are of considerable concern for cities. Current law <br />provides a $10.5 million annual allocation to cities and counties for grant payments of $5,000 for <br />beverage container recycling and litter cleanup activities. <br /> <br />Current law also provides a $15 million annual allocation to curbside programs. These funds are <br />typically used to supplement city curbside container pick-up programs, making recycling of <br />containers convenient for city residents. The Governor's proposal, as of July 1, would eliminate <br />these guaranteed grant funds and force cities and counties to annually compete for these funds. <br />The overall amount of funding available would vary from year-to-year based on the money <br />available in the fund. <br /> <br />Included in the Governor's FY 2010-11 proposed budget is language that would change the <br />definition of "supermarket" and a convenience zone recyclers' ability to locate within the <br />immediate vicinity of a supermarket. Current law defines a supermarket by gross annual sales of <br />$2 million or more. <br /> <br />The Governor's proposal would increase the gross annual sales threshold to $6 million. Certain <br />supermarkets in rural areas may not meet this new threshold. Convenience zone recyclers would <br />not be allowed to locate near these supermarkets. If this happens, rural communities will not have <br />a convenient way to recycle their beverage containers and will further add to the material <br />disposed of in landfills. <br /> <br />The Governor declared a fiscal emergency and called the Legislature into special session to <br />address the larger budget deficit, including the Bottle Bill proposal. <br /> <br />Take Action <br /> <br />The League is requesting feedback from city officials to demonstrate how the Governor's <br />proposed changes will affect cities. <br /> <br />. What will be the impact of losing the $5,000 city grant? <br />. What will be the impact of losing funds under the curbside supplemental program? <br />. Are there other opportunities for city residents to recycle if the supermarket definition is <br />changed? <br /> <br />Please e-mail your responses to Kyra Ross, legislative representative at krossliUcaclties.ora or <br />Dane Wadle, legislative analyst, at dwadleliUcacities.ora. <br /> <br />U.S. EPA Seeks Input on Proposed Rulemaking to Strengthen Stormwater <br />Program <br /> <br />The U.S. Environmental Protection Agency (EPA) announced that it will initiate national <br />rulemaking in 2010 to improve and strengthen its existing stormwater program. EPA is seeking <br />input from stakeholders, including cities on a number of stormwater issues. including the <br />promotion of practices that retain stormwater on-site through infiltration, evapotranspiration, or <br />stormwater reuse to reduce these impacts nationwide. <br /> <br />The agency is also considering how to strengthen the municipal separate stormwater sewer <br />system (MS4) permit regulations, including expanding the MS4 regulated area to include rapidly <br />developing areas and establishing specific post construction requirements for stormwater <br /> <br />9A <br />Page 17 <br /> <br />6 <br />