Underground Storage Tank Branch Updates

MSECA Quarterly MeetingAugust 22, 2013

Craig Schroer, ChiefUnderground Storage Tank

Branch(317) 234-0974

cschroer@idem.IN.gov

UST Branch Organization

Craig Schroer, ChiefUST Branch

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

Jay GouletCorrective Action and

Claims Specialist(317) 234-5064

jgoulet@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

UST Section Responsibilities

• UST registration• UST fee assessment• Financial responsibility

verification• Operator training

certification• Compliance inspections• UST closure approval

LUST Section Responsibilities

• Release reporting oversight

• Corrective actionreview and oversight

• No further action and institutional controls review and approval

ELTF Technical SectionResponsibilities

• Corrective actionreview and oversight

• No further action and institutional controls review and approval

• ELTF eligibility determination

ELTF Claims SectionResponsibilities

• Review and approve ELTF claims for corrective action costs

• Support Attorney General’s office review of third party claims and process these claims

Statutes and Rules

• USTs (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.PDF

Nonrule Policy Documents• Risk-based Corrective Action

– Remediation 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

Web Page Information,Reports and Announcements

• UST - www.idem.IN.gov/4997.htm• LUST - www.idem.IN.gov/4999.htm • ELTF - www.idem.IN.gov/5063.htm

UST BranchContinuous Improvement

• Integration of programs• Administrative processes - VFC• Timeliness and consistency of reviews• Compliance especially for prevention• Fostering relationships with our customers

UST Program

UST Program Statistics

• Registered USTs/facilities:– In use:

13,200/4,230– Permanently out of service: 39,340/15,490– Total: 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)

Current UST ProgramGoals and Initiative

• Notification• Fees/Intent to Reinstate ELTF Eligibility• Financial Responsibility• Operator training• Inspections• Delivery Prohibition• Abandoned USTs

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 transfer

• System upgrades or modifications – Within 30 days of change

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 closure– May request waiver of 30 days with justification– May request waiver of removal closure with

justification due to access• Permanent Closure – Within 30 days of

closure with UST Closure Report

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.

USTs Fees andIntent to Reinstate ELTF Eligibility

• UST fees are a tax and required for using ELTF for financial responsibility

• IDEM works with DOR for billing and collection– Annual billing– Back billing

• IDEM 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!

Financial Responsibility (FR) How does the UST owner verify

that 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.

Operator TrainingWhat is required?

• All facilities must have an:– A Operator and B Operator– C Operator(s), when required– A 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.

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.

Inspection Goals

• IDEM 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)

Inspection Process• Pre-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 detection– Review records, i.e. operator certification, FR,

maintenance, testing (corrosion, tightness), inventory, and inspections (lining)

• Follow-up inspection– Review records and documentation– Inspect installation and repairs

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.

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)

Abandoned USTs

• 272 known facilities• Registered and unregistered facilities• USTs not upgraded and must be closed• USTs often contain product• USTs generally accessible• Voluntary and enforcement driven closures

Future UST ProgramGoals and Initiatives

• UST notification form – annual updates• Digital inspector• Delivery prohibition web page• Compliance binder• UST Rulemaking

– Technical corrections and updates– Waiting for final U.S. Environmental Protection

Agency rule

LUST Program

LUST Program Statistics

• Confirmed releases – 9,520• Cleanups completed – 7,200• Confirmed release in 2013 – 116• Cleanups completed in 2013 – 270

(10/1/12-08/22/13)• Active LUSTs – 2,320

LUST Statistics - Trends

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Annual Confirmed ReleasesAnnual Cleanups CompletedTotal Confirmed ReleasesTotal Cleanups CompletedTotal Active Releases

Calendar Year

Tota

l

Current LUST ProgramGoals and Initiatives

• Standardized report forms• Streamlined site-characterization process

(formerly known as FastTRACK)

Streamlined Site Characterization and Report Formats

• Use of standardized report formats for– Initial 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 less

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.

Future LUST ProgramGoals and Initiatives

• Abandoned LUST facilities (about 500)– Open/active LUSTs sites– Many are either vacant buildings and lots– Many are unused and are underutilized– The owner is either unknown, unable or unwilling

to take actions

ELTF Program

ELTF Program Statistics

• Eligible 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 $81,028,000

ELTF Program Statistics

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

RevenueExpensesClaims PaidBalance

(Claims Paid includes Expenses for 1995-2000)

Add Diesel & IncreaseInspection Fee

Current ELTF ProgramGoals and Initiatives

• ELTF Report• Administrative denials of claims• ELTF Kaizen

ELTF Report

• Interested 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 information

Administrative ReviewsTriage

• IDEM 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.

ELTF KaizenContinuous Improvement

• Five areas were identified by IDEM staff and consultants for improvement– Rates and Incidental Costs– Resubmittals– Three (3) Bids for Corrective Action– Drilling and Excavation– Update ELTF Application

Rates and Incidental Costs

• Common supplies, equipment, laboratory analysis, etc. without rates

• Claim submittal and review is onerous• Nonrule policy development identifying rates

is proposed in the midterm• Rule change proposed in the long-term

Resubmittals

• It takes too long for applicants to see the reasons for cost denials in VFC

• Administrative 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 VFC

Three (3) Bidsfor Corrective Action

• It 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 proposed

Drilling and Excavation

• These issues are complicated• The list of issues is long• Rates do not change in the rule like labor and

mileage• Some costs are not addressed, according to

stakeholders• Rates are often confusing

ELTF Application• IDEM is enhancing the ELTF Application

– Eligibility 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 data– Enhanced instructions

ELTF Kaizen Summary• Short-term

– Make 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 NPD– For example, develop NPD for rates and incidentals

• Long-term– Update ELTF rule– For example, create rates for those we need and allow for

rate increases based on applicable index or reference like we have for labor and mileage

ELTF Payment and VendorInformation Announcements

• 3/13 – 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.

ELTF Payment and VendorInformation Announcements

• Information on ELTF applications must match AOS vendor information form for payment– Legal name (including name changes for consultants),– Legal mailing address and– Federal tax ID#.

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

ELTF Payment and VendorInformation Announcements

• Applications 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)] or

– Assignee when assignee has an AOR and POA.

• Two party, paper checks must go to the owner, operator or property owner, not the consultant.

ELTF Payment and Vendor Information Announcements

• AOR and POA must include– Full 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.

Future ELTF ProgramGoals and Initiatives

• Assess ELTF eligibility process• ELTF Rulemaking planned to begin in 2014

Questions or Comments

Thank you for listening!