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Potential CUPA Applicants HW Generator Fee Offset December 27, 1995 Page 2 completing a compr hensive hazardous waste program fee review by January 1, 1997. ntil DTSC completes this fee review, a permanent resoluti n of the generator fee offset issue is not possible. An inte im solution is needed which answers the concerns of local overnments and businesses. To provide this interim solution, DTSC will develop a limited MOU for use with a CUPA specifically covering the generator fee credit. DTSC will only offer to enter into this new MOU with CUPAs where businesses were covered by an MOU with DTSC in calendar year 1995. The new MOU will specify that only businesses utilizing the fee offset in calendar year 1995 and the dollar amount allowjed for the offset in calendar year 1995 will be offset during th term of the new MOU. This new MOU will be designed so that itmust be reviewed and renewed annually by both DTSC and the CUPA. This will allow DTSC to terminate the new MOU if or when a new ha ardous waste fee system is put in place. This mechanism will provide for the continuation of a fee offset program for those 1 cal governments and for those businesses who have used it histor cally. DTSC will begi the development of this new limited MOU immediately. The new MOU will be fully developed prior to certifying the firsts CUPA that currently has a hazardous waste management MOU with IDTSC. The first certifications are not expected to be completed until after April 1996. This interim solution should ease the transition to the new Unified Program within those el'igibl local governments, and provide a more stable source of loc 1 revenues until a permanent hazardous waste fee reform proposal is completed in accordance with SB 1222 . If you have any questio�s, please feel free to contact me at (310) 590-5523 or yo r assigned DTSC liaison. Sincerely, P0.46& Paula Rasmussen, Chief State Regulatory Programs Division Hazardous Waste Management Program