Underground Storage Tank Branch Updates - PowerPoint Presentation

Slide1

Underground Storage Tank Branch UpdatesMSECA Quarterly MeetingAugust 22, 2013

Craig Schroer, Chief

Underground Storage Tank Branch

(317) 234-0974

cschroer@idem.IN.govSlide2

UST Branch Organization

Craig Schroer, Chief

UST Branch

(317) 234-0974cschroer@idem.IN.gov

Jay GouletCorrective Action and Claims Specialist(317) 234-5064jgoulet@idem.IN.gov

Tim Veatch, ChiefLUST Section(317) 234-0974tveatch@idem.IN.gov

Tom NewcombCompliance Specialist(317) 234-0357tnewcomb@idem.IN.gov

Bobbi Steiff, ChiefELTF Claims Section(317) 234-0935rsteiff@idem.IN.gov

Bill Davis, ChiefELTF Technical Section(317) 232-8921bdavis@idem.IN.gov

Roy Harbert, ChiefUST Section(317) 232-7957rharbert@idem.IN.gov Slide3

UST Section ResponsibilitiesUST registrationUST fee assessmentFinancial responsibility verification

Operator training certification

Compliance inspections

UST closure approvalSlide4

LUST Section ResponsibilitiesRelease reporting oversightCorrective action review and oversightNo further action and institutional controls review and approvalSlide5

ELTF Technical Section

Responsibilities

Corrective action

review and oversightNo further action and institutional controls review and approvalELTF eligibility determinationSlide6

ELTF Claims SectionResponsibilitiesReview and approve ELTF claims for corrective action costsSupport Attorney General’s office review of third party claims and process these claimsSlide7

Statutes and RulesUSTs (IC 13-23) www.IN.gov/legislative/ic/code/title13/ar23/

Environmental Policy – Remediation and closure objectives (IC 13-12)

www.IN.gov/legislative/ic/code/title13/ar12/ch3.pdf

UST (329 IAC 9) www.IN.gov/legislative/iac/T03290/A00090.PDF ELTF (328 IAC 1) www.IN.gov/legislative/iac/T03280/A00010.PDFSlide8

Nonrule Policy DocumentsRisk-based Corrective ActionRemediation Closure Guide (RCG) and Remediation Program Guide (RPG)

Risk Integrated System of Closure (RISC) – Technical Guidance Document and User’s Guide

www.idem.IN.gov/4153.htm

Let’s not forget the 1994 UST Branch Guidance Manual>600 active LUSTs still use it!www.idem.IN.gov/files/RISC_closure_guidance.pdf Slide9

Web Page Information,Reports and AnnouncementsUST -

www.idem.IN.gov/4997.htm

LUST -

www.idem.IN.gov/4999.htm ELTF - www.idem.IN.gov/5063.htmSlide10

UST BranchContinuous ImprovementIntegration of programsAdministrative processes - VFC

Timeliness and consistency of reviews

Compliance especially for prevention

Fostering relationships with our customersSlide11

UST ProgramSlide12

UST Program StatisticsRegistered USTs/facilities:In use: 13,200/4,230Permanently out of service: 39,340/15,490Total: 52,540/19,520

Average USTs per facility: 3

Inspections: 1,500-1,800/year

(UST Compliance Inspection Area map found at www.idem.in.gov/6768.htm) Slide13

Current UST ProgramGoals and InitiativeNotification

Fees/Intent to Reinstate ELTF Eligibility

Financial Responsibility

Operator trainingInspectionsDelivery ProhibitionAbandoned USTsSlide14

UST Notification FormWhen must the owner submit?

New facilities

– Within 30 days of being put into use (put product into UST)

Change in ownership – Within 30 days of transferSystem upgrades or modifications – Within 30 days of changeSlide15

UST Notification FormWhen must the owner submit?

Temporary Closure

– Within 30 days of change in status upon completion

Notice of Intent to Close – At least 30 days prior to closureMay request waiver of 30 days with justificationMay request waiver of removal closure with justification due to accessPermanent Closure – Within 30 days of closure with UST Closure ReportSlide16

UST Notification FormWhat must be included?It must be

complete and accurate

.

It must include property deed for new facilities and new owners.If the UST owner does not own the property, IDEM requires contract or documentation verifying UST ownership. Note that the property owner where the USTs are located is the UST owner, if the USTs were brought into use after November 8, 1984.Slide17

USTs Fees andIntent to Reinstate ELTF EligibilityUST fees are a tax and required for using ELTF for financial responsibility

IDEM works with DOR for billing and collection

Annual billing

Back billingIDEM expects buyers of UST facilities to complete and submit the “Intent to Acquire UST and Reinstate Eligibility” form per 328 IAC 1-3-3(d).This is a tool designed to ensure that new owners have financial responsibility.

Don’t take a chance with your client’s ELTF eligibility!Slide18

Financial Responsibility (FR) How does the UST owner verifythat they meet FR requirements?

Owners and operators must demonstrate substantial compliance including notification, fee payment, system design, system operation and maintenance, and record keeping; and

Owners and operators must demonstrate ability to pay for ELTF deductible using one of the acceptable mechanisms in 329 IAC 9-8.Slide19

Operator TrainingWhat is required?

All facilities must have an:

A Operator and B Operator

C Operator(s), when requiredA or B Operator ensure training of C Operator(s)A single person may be the A, B and C.At least one Certified Operator must be present during all times of operation of the USTs.The Operator(s) may be an employee or contractor.

Unattended and partially attended facilities are not required to have C Operators.Slide20

Operator TrainingHow does someone get certified?A& B Operators must be certified by creating the account and completing the on-line training starting from the IDEM’s Regulatory Services Portal at

www.idem.N.gov/5964.htm

.

IDEM does not give reciprocity for certified operators from other states.Slide21

Inspection GoalsIDEM inspects every operating facility at least once every 3 years.

Focus surplus inspection resources on facilities that

Require annual testing.

Are noncompliant facilities and owners. Are located in areas where drinking water supplies are susceptible.Focus on Significant Operational Compliance (SOC)Slide22

Inspection ProcessPre-inspection

Review notification, fees, past inspections, and property ownership (county assessor and secretary of state)

Initial inspection

Inspect equipment, i.e. under dispenser, sumps, fill ports, spill buckets, corrosion protection, and leak detectionReview records, i.e. operator certification, FR, maintenance, testing (corrosion, tightness), inventory, and inspections (lining)Follow-up inspection

Review records and documentationInspect installation and repairsSlide23

Delivery ProhibitionWhat is it?IDEM has authority to prevent delivery to a noncompliant UST system per IC 13-23-1-4:

30-day Warning Letter followed by Red-tag with Temporary Emergency Order (TEO) for failure to maintain tank systems, failure to submit UST notification form, or failure to pay UST fees.

Immediate Red-tag with TEO for failure to install equipment – corrosion protection, leak detection, overfill protection, or spill prevention.Slide24

Delivery ProhibitionWhat is IDEM doing?IDEM judiciously uses its authority for noncompliant UST systems.

First notice comment period ended 7/26/13 for proposed rulemaking to update the current rule (329 IAC 9-4.5)Slide25

Abandoned USTs272 known facilitiesRegistered and unregistered facilitiesUSTs not upgraded and must be closedUSTs often contain product

USTs generally accessible

Voluntary and enforcement driven closuresSlide26

Future UST ProgramGoals and InitiativesUST notification form – annual updates

Digital inspector

Delivery prohibition web page

Compliance binderUST RulemakingTechnical corrections and updatesWaiting for final U.S. Environmental Protection Agency ruleSlide27

LUST ProgramSlide28

LUST Program StatisticsConfirmed releases – 9,520Cleanups completed – 7,200Confirmed release in 2013 – 116

Cleanups completed in 2013 – 270

(10/1/12-08/22/13)

Active LUSTs – 2,320Slide29

LUST Statistics - TrendsSlide30

Current LUST ProgramGoals and InitiativesStandardized report forms

Streamlined site-characterization process (formerly known as FastTRACK)Slide31

Streamlined Site Characterization and Report FormatsUse of standardized report formats forInitial Site Characterization (ISC) Report and Checklist and

Further Site Investigation (FSI ) Report

Other report formats are being developed as well

IDEM plans to review the ISC report within 60 days or lessSlide32

Streamlined Site Characterization and Report Formats Site characterization should be completed within one year from date of confirmed release date.In order to be successful, IDEM and consultants must change the way we interact.

IDEM will utilize compliance tools to address grossly inadequate ISCs and FSIs.Slide33

Future LUST ProgramGoals and InitiativesAbandoned LUST facilities (about 500)

Open/active LUSTs sites

Many are either vacant buildings and lots

Many are unused and are underutilizedThe owner is either unknown, unable or unwilling to take actionsSlide34

ELTF ProgramSlide35

ELTF Program StatisticsEligible and ineligible releases Total - 2,325/485

Active - 868/195

Results for 7/1/12-6/30/13

Claims received - 2,630 ($56,391,000)Claims reviewed - 2660 ($56,370,000)Costs approved - $34,620,000 (61%)Costs denied - $21,750,000 (39%)Balance as of 6/30/13 $81,028,000Slide36

ELTF Program StatisticsSlide37

Current ELTF ProgramGoals and InitiativesELTF Report

Administrative denials of claims

ELTF KaizenSlide38

ELTF ReportInterested parties can obtain the status of pending ELTF claims on the internet at www.idem.in.gov/5081.htm.

Future enhancements will provide real-time informationSlide39

Administrative ReviewsTriageIDEM reviews claims –

for completeness and accuracy within 10-15 business days of receipt,

that are incomplete or inaccurate are denied administratively, and

applicant information and Federal Tax ID# must match State Auditor Vendor information.This does not count as a cost denial for the “three-strikes” rule.Slide40

ELTF KaizenContinuous ImprovementFive areas were identified by IDEM staff and consultants for improvementRates and Incidental Costs

Resubmittals

Three (3) Bids for Corrective Action

Drilling and ExcavationUpdate ELTF ApplicationSlide41

Rates and Incidental CostsCommon supplies, equipment, laboratory analysis, etc. without ratesClaim submittal and review is onerousNonrule policy development identifying rates is proposed in the midterm

Rule

change proposed

in the long-termSlide42

ResubmittalsIt takes too long for applicants to see the reasons for cost denials in VFCAdministrative changes were made to speed up the time it takes IDEM to make this available in VFC

Applicants should expect to see the claim letter along with backup documentation within 5-10 business days in VFCSlide43

Three (3) Bidsfor Corrective ActionIt is sometimes difficult to obtain three competitive bids

Applicants must demonstrate that lower costs for specified work “is not practical or possible” when three bids are not provided for corrective action per the rule

A standardized form and guidance are proposedSlide44

Drilling and ExcavationThese issues are complicatedThe list of issues is longRates do not change in the rule like labor and mileage

Some costs are not addressed, according to stakeholders

Rates are often confusingSlide45

ELTF ApplicationIDEM is enhancing the ELTF ApplicationEligibility and cost claims will be on separate state forms to eliminate confusion

Enhanced form fillable features to minimize errors and omissions

Where rates exist, they will be calculated automatically based on date of cost. (Applicants will still be able to enter their cost when it is more or less than the approved cost.)

Electronic submittal to improve transfer of dataEnhanced instructionsSlide46

ELTF Kaizen SummaryShort-termMake changes that don’t require NPD or rule change

For example, get information to consultants quicker about cost denials and update ELTF application

Mid-term

Develop NPDFor example, develop NPD for rates and incidentalsLong-termUpdate ELTF ruleFor example, create rates for those we need and allow for rate increases based on applicable index or reference like we have for labor and mileageSlide47

ELTF Payment and VendorInformation Announcements3/13 – The Auditor of the State (AOS) notified IDEM that the vendor specific requirements for vendor information and the method of payment were not being implemented correctly.

4/2/13 – IDEM announced that applications received on or after May 1 must be correct. Those in process before May 1 would be addressed by the AOS,

www.in.gov/idem/files/eltf_announcement_20130402.pdf

.4/23/13 – IDEM hosted an information session with State Auditor.4/30/13 – IDEM announced again at IDEM Consultants Day.

5/1/13 – IDEM fully implements change as required by the AOS.Slide48

ELTF Payment and VendorInformation AnnouncementsInformation on ELTF applications must match AOS vendor information form for payment

Legal name (including name changes for consultants),

Legal mailing address

andFederal tax ID#.Single party, electronic payments may go to the owner, operator, property owner, or assignee [328 IAC 1-3-1(a)].Slide49

ELTF Payment and VendorInformation AnnouncementsApplications for single party payments must be signed by the

Owner, operator or property owner

or

Owner , operator or property owner and assignee, if assignee has an assignment of rights (AOR), but no power of attorney (POA) [328 IAC 1-5-1(b)] orAssignee when assignee has an AOR and POA.Two party, paper checks must go to the owner, operator or property owner, not the consultant.Slide50

ELTF Payment and Vendor Information AnnouncementsAOR and POA must includeFull legal name of who is assigning the rights - generally the owner, operator or property owner

They are duly authorized to assign these rights

Full legal name of who is being assigned the rights – generally the consultant name

The specific facility address(s), FID#(s) and LUST#(s).The AOR may be per site or for multiple sites, but all FID#s and LUST#s must be listed in the AOR, not in the appendix.The POA may be per site or for multiple sites, but all FID#(s) and LUST#(s) must be listed in the POA, not the appendix.

The AOR and POA may be combined or separate, but each must contain the above information.Slide51

Future ELTF ProgramGoals and InitiativesAssess ELTF eligibility process

ELTF Rulemaking planned to begin in 2014Slide52

Questions or CommentsThank you for listening!