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f ' 1 Y State Water Resources Control Board Division of Financial Assistance 1001 1 stmt-Sauameata,(>HOMi3 95814 Arnold Scbwarzen*Uer Linda S.Adams P.0•box 944212•Socnmwnto,CaMmi4.94244-2120 Govtmar nda S.Ada (M)8t3-FUND(3863)•FAX(916)341,5806 6+✓�a.wa4e�bpards-ea�ovlwater_i��uralprogrms/us0 f E,4mmWa!PWr dlon October 23, 2008 To: Underground Storage Tank (UST)Cleanup Fund (Fund) Claimants and Interested Parties IMPORTANT NOTICE DELAY IN FUND REIMBURSEMENTS This letter is to notify you of immediate actions the Fund program is talking in response to a low cash balance. These actions will delay payments and affect all claimants and their consultants. PLEASE READ. Fund payment activity was significantly higher than expected last fiscal year. The Fund processed 4,964 payments (an increase of 7 percent over the year before),with a dollar valve of$239 million (an increase of 18 percent over the prior fiscal year). In addition, other obligations against the Fund have increased over recent years, Including program administration and special account costs. Coupled with this, we have experienced a reduction in revenues partially due to the summer spike in gasoline prices. As a result, the Fund began the current fiscal year with a low cash reserve, and we find it necessary to take the following immediate actions: 1. Holdino Payments: Current and future payments will be held as necessary to ensure sufficient revenue has been collected and appropriate reserves are maintained. Payments will be delayed several months beyond historic processing times. Payments will generally be made in order of Priority Class and date of receipt of the.reimbursement request, as funds are available. 2. Suspend!na Letters of Commitment(LOCsloor LoWer_priorityClaims: The number of active claims will be reduced to bring day-to-day demand into balance with revenues. To accomplish this, the LDCs for several hundred lower priority claims will be suspended. LOC suspensions will occur in reverse priority order based on the claim's Priority Class and date of application. You will be notified by separate letter if your LOC is suspended. Eligible costs incurred up to ten days after the date of the issuance of the notice of LOC suspension will be reimbursable, as funds are available. Costs incurred after that date will not be reimbursed until the LOC suspension is lifted. You will be notified when your claim's LOC is removed from suspension. 3. Approving Budgets: Although payments will continue to be processed as outlined above,the Fund will require that a budget be approved for all active Priority Class li • 5;�l ,nn;K Calltorala Eaviroome ial Proteetfoa Agency t�i . ,'f 1 Reryrhd Piper •'illi . ---_:-