The Department of Energy at the Hanford Site in Washington state has notified local counties that it may be able to pay only 20 percent of the counties’ bills for payments in lieu of taxes this year. DOE signed an agreement with the three counties that include parts of Hanford — Benton, Franklin, and Grant counties — in 1996, saying the federal government would offset the taxes lost by not having more than 500 square miles in private ownership. This year those taxes would have come to $9.5 million, the amount billed by the counties for payment in lieu of taxes, or PILT. But the 1996 agreements said the money was not an entitlement and would only be paid if federal funds were available.
In total this year the three counties would in total receive about $1.92 million — $1.5 million for Benton County, $236,000 for Grant County, and $185,000 for Franklin County.
The department has been short of money for PILT at Hanford in recent years but has managed to make the payment by using carryover funds until now. The money appropriated for community and regulatory support at Hanford, which includes PILT, has remained relatively flat over the last few years at slightly less than $20 million annually. The administration in recent budget plans has requested cuts to about $15 million, but Sen. Patty Murray (D-Wash.) has been able to keep community and regulatory support funding for Hanford steady.
At the same time, county bills have increased, particularly for the part of Hanford that likely would be used for irrigated farmland if it had not been seized by the federal government in 1943. Prices for irrigated land suitable for vineyards and orchards in the area have climbed in recent years. The counties’ bill for PILT, based on assessed value for similar land, has increased from $6 million in 2012 to $9.5 million this year.
PILT is one of the few items paid for out of Hanford regulatory and community support that is not a legal or regulatory requirement, making it vulnerable during the current budget shortfall. More than half of regulatory and community support money goes to the Washington state Department of Ecology to pay for regulatory oversight of Hanford. Additional money goes to the state of Oregon for its involvement at Hanford. Funds cover county emergency response because of risks posed by Hanford and pay for the Washington state Department of Health to monitor for off-site releases from Hanford. Regulatory and community support also pays for the Hanford Advisory Board. Federal law requires an advisory board at Hanford, but does not stipulate a funding level. Although DOE continues to pay for the board, the funding has dropped substantially through the years to about $450,000 last year.
The DOE Richland Operations Office is working on a reprogramming request to add $7 million to take money out of cleanup work — specific projects have not been specified — and move it to regulatory and community support in the current budget year. The request must be approved by the White House Office of Management and Budget and then Congress. It comes at the same time as the Washington state congressional delegation is trying to increase the proposed cleanup money in the coming fiscal year for Hanford projects that include the highly radioactive spill under the 324 Building and cleanup of the vertical pipe units at the high hazard 618-10 Burial Ground.
“We need to figure out how we all can help DOE meet its obligations,” said Adam Fyall, sustainable development manager for Benton County, after a recent meeting between DOE and county officials to discuss PILT bills. The counties are interested in working with local governments at other DOE cleanup sites that may be facing similar cutbacks in PILT money, he said. County officials also plan to approach DOE officials at all levels and the congressional delegation to make their case for full PILT payments.
Fyall said the money goes to “kids, hospitals, books and veterans.” The counties receive the money and then distribute it among taxing districts. The largest share of the money is given to Hanford-area school districts, with the Richland School District due $2.6 million this year. The counties keep a share, with much of the money used for road work. Benton County also uses some money for capital projects, human services, and indigent veterans. Rural libraries, ports and hospital districts also receive some of the funds.
