Utah GOP legislative leaders say EnergySolutions offer to pay the state upwards of $100 million a year over the next decade to dump overseas low-level radioactive waste at its West Desert site is "all but dead."
The state is in perilous economic times, down $1.5 billion in tax revenue over two years. Facing either deep cuts to state services or possible tax hikes, the offer is enticing to lawmakers.
In fact, GOP legislative leaders are now talking about some kind of tax increase this session so "critical, vital" state programs won't be "crippled" by cutbacks in fiscal 2010, which starts July 1.
One proposal would place all of the state sales tax back on to unprepared food, raising about $180 million.
But the EnergySolutions deal would require the state getting out of the Northwest Compact, a hazardous waste agreement between a number of states. "And there are real, serious problem with that," one leader said Monday.
However, Senate Majority Leader Sheldon Killpack, R-Syracuse, said it's too soon to predict the fate of the Energy Solutions proposal.
"I'm not saying it's active or it's dead," Killpack said.
Various options were still being discussed, he said. However, some of them don't have a chance, like pulling out of the Northwest Compact that governs waste disposal among Utah and other states or expanding the company's capacity he said.
And there are real political concerns in taking international waste in Utah, as well.
"There are great risks involved — it's just a no-go, I believe," said one GOP leader who asked that his name not be used because his caucus has not yet taken a position on the waste company's offer. "There are both policy and political risks."
Gov. Jon Huntsman Jr. has drawn a line in the sand, saying if such a bill is sent to him he will veto it. His spokesperson Lisa Roskelley said Huntsman would be pleased if the firm's plan dies in the Legislature.
A veto override would take two thirds votes in both the House and Senate for the international hazardous waste firm to get the needed state authorization to bring in Class A low-level nuclear waste from overseas.
Two-thirds is 50 votes in the House and 20 in the Senate. And while Republicans have those majorities (barely), it would take only a few GOP defections for Huntsman's veto to stand up.
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