Arizona Manufacturers Council Environmental & Sustainability - PowerPoint PPT Presentation

Arizona Manufacturers Council Environmental & Sustainability Summit August 15, 2014

Henry Darwin, ADEQ Director ADEQ: A LASTING LEGACY

Our Ecosystem Our Mission

Our Ecosystem Our Mission

Our Mission

Our Mission ADEQ’s approach emphasizes not only what we do to fulfill the mission, but also how we do it. What we do: How we do it: Planning Lean Management System Permits ADEQ Way Inspections Continuous Improvement Monitoring Career Paths Data Analysis Spot Incentives Cleanups Pay-for-Performance Outreach Training

Our Mission What we strive for: A Lasting Legacy of Sustainable Environmental Stewardship

Demonstrated Results To recap some key highlights, since beginning its Lean transformation in 2012, ADEQ has: Reduced by more than 60% the average permitting timelines for the most • complex permits that industry needs Reduced by more than 50% the average time required to return facilities to • compliance Reduced by more than 70% the average time to retrieve public records • More than doubled the number of state-lead underground storage tank • cleanups (as compared to 2011) Closed two State superfund sites (0 closures in the previous 15+ years) • Avoided unnecessary air quality controls for industry by leading the nation • in Exceptional (Dust) Event demonstrations Completed more than 150 process improvement projects to date, • accounting for 53% of the improvement projects cited in the Government Transformation Office’s 2013 Annual Report

Our Mission What we strive for: A Lasting Legacy of Sustainable Environmental Stewardship

Laura Malone, Director WASTE PROGRAMS DIVISION

Improving the WQARF Process  ADEQ has accelerated work in FY14 – 12 sites moved to the draft RI Phase – Remedial Investigations – 2 years versus 8 years – Feasibility Studies – evaluating process – goal is 2 years or less – Community Involvement – evaluating the process  New contracting mechanism – “Best Value” ensures we have the right talent on the job

WQARF Funding  Fee structure cornerstone of new program  Assured ADEQ would receive $15M from CIT – CIT cover orphan share Other fees  With other fees – total budget $18M

Corporate Tax Revenue Comparison $15,000 FY04 $5,000 $15,000 FY05 $10,000 $15,000 FY06 $11,000 $15,000 FY07 $15,000 Mandated $15,000 All numbers expressed in thousands FY08 $13,000 Received $15,000 FY09 $13,000 $9,947 Retained (post reduction) $15,000 FY10 $7,000 $109 $15,000 FY11 $7,000 $6,623 $15,000 FY12 $7,000 $6,473 $15,000 FY13 $7,000 $15,000 FY14 $7,000

Estimated Future Costs of WQARF $79MM $155MM $424MM $95MM WQARF Sites Federal Sites PI Sites with escalation Salaries/G&A

If Only …

Continuing Challenges  Program implementation significantly hindered by funding shortfalls. WQARF is not sustainable.  39 potential new WQARF sites being evaluated for listing  Orphan shares are significantly higher than the original legislative study committee anticipated  EPA may not continue to defer site action – goes back to joint and severable liability

What You Can Do To Help  Play an active role in supporting full funding  Embrace dynamic work plan implementation in order to accelerate cleanups  Look for innovative ways to get site characterized, remediated and closed  Focus on what’s important…. the environment!

Broadway-Pantano WQARF SITE Above: Driving south on the road through BSL. Note the wavy curb line due to landfill subsidence. It was straight when the road was built . • Oct 2010: ADEQ filed Complaint under WQARF and CERCLA against 21 Settling Parties. • Mar 2011: ADEQ filed Motion to Enter the 18 Consent Decrees with 21 Settling Parties. • Feb 2012: Court approved settlements. • Mar 2012: Appeal filed in the 9 th Circuit by Intervenors.

Broadway-Pantano WQARF SITE • Issue raised in Appeal : whether the court used the proper standard in reviewing the settlements and whether it had insufficient information before it to determine whether to approve the settlements. • February 5, 2014: prior to oral argument and unanticipated by either side, the Court ordered both parties be prepared to discuss the issue of what level of deference does a court owe to a state agency’s interpretation and application of CERCLA. • Feb 10, 2014: Oral argument. • Feb 25, 2014: Supplemental briefs filed. • March 4, 2014: Colorado & Nevada filed amicus letters with the court supporting Arizona’s arguments. • August 1, 2014: Court Reversed in part and remanded the matter back to the district court. The Court found that because the court did not “engage in a substantive analysis of the settlements’ terms” explaining in its finding, “the court deferred completely to [ADEQ’s] judgment that the proposed agreements were fair reasonable and consistent with federal law.”

Broadway-Pantano WQARF SITE Ramifications of 9 th Circuit Court Ruling This ruling may have an adverse impact on all WQARF/CERCLA settlements, especially early settlements, of requiring ADEQ to present detailed facts and calculations to the Court before it will be able to rule whether the settlements should be approved. This may significantly slow the settlement process down as well as increase the burden on ADEQ and the settling parties to justify those settlements.

New ADEQ UST/LUST Programs – Recent Legislation House Bill 2708 (51 st Legislature, 2 nd Regular Session 2014) Delivery prohibition – Penny per gallon reverts back to ADEQ – Extends period for SAF payment claim submittal – through 5pm December 31, 2015 (for releases reported prior to July 1, 2006) Assurance Account funding (A.R.S. 49-1015) will be – used to fund: • A new and revised UST corrective action program • Implement the new corrective action program and existing UST leak prevention program Senate Bill 1314 (51 st Legislature, 2nd Regular Session 2014) Sec. 12. – Alternative to baseline assessment or standard policy ADEQ conducting stakeholder meetings to help design – new program

Michael Fulton, Director WATER QUALITY DIVISION

ADEQ Rules  Safe Drinking Water Fees – Rulemaking subject to legislative authority – Establish fees for safe drinking water program services for which no fees are currently charged – Where fees exist, review and update fees as appropriate

ADEQ Rules  Certified Operator Fees – Proposed Rulemaking: July 11, 2014 (20 A.A.R. 1744) – Establish new and reasonable fees for the certification of drinking water and wastewater system operators – Public hearings held; proposed to be effective 7/1/2015

ADEQ Rules  Surface water quality standards – Docket Opening: January 17, 2014 (20 A.A.R. 135) – Last amended in 2009 – A directed and focused review including: • numeric water quality standards for nutrients • net ecological benefit • adoption of site specific standards • technical corrections – Informal comment period to be conducted with interested parties. Tentative meeting set for 9/4

ADEQ Rules  Repealing biosolids incineration prohibition – Docket Opening: January 17, 2014 (20 A.A.R. 135) – Allow the incineration of biosolids subject to Clean Water Act and Clean Air Act requirements

 Implementation of SB 1274: Aquifer Protection Permit financial assurance demonstrations – Establishing financial assurance review frequency based upon risk. – Will require updates to permit compliance schedules to: • Assure financial assurance mechanism is in force; • Review/update closure cost estimates.

 Proposed EPA/Army Corps of Engineers Rule: Definition of “Waters of the United States” Under the Clean Water Act – Assessing whether/how proposed definition would change AZ CWA Section 402 permitting approach – Vigorous national debate • Preserves current exemptions for farming activities • Categorical inclusion of “tributaries” as jurisdictional • No firm description of how to determine “significant nexus”

Eric Massey, Director AIR QUALITY DIVISION

Air Quality News

Current Challenge 2030 1 2020 2 4 3

Future Challenge