Kentucky … Environmental Priorities, Plans for the Future, Air & Water Permitting Success & Challenges Tony Hatton, Commissioner Kentucky Department for Environmental Protection , Frankfort Wednesday, March 27, 2019 9:30 a.m. to 11 a.m.
Tony Hatton, Commissioner Kentucky Department for Environmental Protection 300 Sower Blvd., Frankfort, KY 40601 Phone: 502-782-6648 Fax: 502-564-4245 Tony.Hatton@ky.gov Tony Hatton is the Commissioner of Kentucky’s Department for Environmental Protection. He has been an employee of the Kentucky Energy and Environment Cabinet since 1999. Prior to becoming an employee of the Commonwealth, he worked as a consulting geologist, based out of Columbia, South Carolina, for 11 years. During his time in consulting he worked on projects for the Department of Defense and did remediation work at a number of Air Force and Army facilities, on issues related to both conventional and chemical weapons. He also worked as a consultant on several larger projects at the U.S. DOE Savannah River Site. In between times, he consulted on cleanups at NPL sites and numerous large hazardous waste and Superfund sites and landfill siting and permitting. In 1999, Tony worked as a staff geologist in the Kentucky Divi sion of Waste Management’s hazardous waste program. Over the course of his career Tony has served as the Assistant Director and then the Director of the Division of Waste Management beginning in 2002 and in 2008, respectively. Tony was recently appointed to the post of Commissioner of the Department for Environmental Protection. Tony holds a Master of Science degree in geology from Eastern Kentucky University and is a registered professional geologist.
Kentucky Department for Environmental Protection Update 28 th Annual Business & Industry’s Sustainability and Environmental, Health & Safety Symposium Tony Hatton, Commissioner Department for Environmental Protection March 27, 2019
WHO WE ARE Mission Protect and enhance Kentucky’s environment to improve the quality of life for all Kentuckians. Vision The Department for Environmental Protection envisions a healthy and productive Commonwealth with balanced stewardship of the land, air and water where future generations enjoy an environment as good as or better than the present. Principles The department will make sound decisions that earn the public’s trust. The department will focus on environmental results rather than programs or procedures. The department will use good scientific information to aid in its decision making. The department will consider the range of environmental benefits and consequences of proposed actions before making final decisions. The department will evaluate its performance using meaningful criteria. 2
OVERVIEW • Changes & Challenges Reorganization, Budget & Personnel • The What Of It All Programs & Success • Where We Go From Here Next Steps & Future Plans 3
CABINET REORGANIZATION Kentucky Energy & Environment Cabinet Charles Snavely, Cabinet Secretary Bruce Scott, Deputy Secretary Department for Department for Office of Office of Nature Public Service Office of Energy Environmental Natural Administrative Preserves Commission Policy Protection Resources Services 502‐564‐3940 502‐573‐2886 502‐564‐0323 502‐564‐0326 502‐564‐7192 502‐564‐3350 Office of Office of Office of Office of Legal Administrative Inspector Communication Services Hearings General 502‐564‐3350 502‐564‐3350 502‐564‐7312 502‐564‐1985 4
DEPARTMENT REORGANIZATION Kentucky Department for Environmental Protection Tony Hatton, Commissioner Sean Alteri, Deputy Commissioner Division of Division of Division of Division of Division of Division for Environmental Waste Compliance Water Enforcement Air Quality Program Management Assistance Support 502‐564‐3410 502‐564‐0323 502‐564‐3999 502‐564‐6716 502‐564‐2150 502‐564‐6120 5
BUDGET CHALLENGES OPERATING EXPENDITURES BY FUND KY Department for Environmental Protection AMOUNT - SFY 2005 - 2017 $35,000,000 $31,689,549 $31,113,090 $30,925,198 $29,225,876 $28,671,575 $30,000,000 $26,910,290 $26,801,546 $26,302,250 $24,487,546 $24,052,734 $25,000,000 $22,122,900 $19,321,358 $20,000,000 $17,419,205 $15,000,000 $10,000,000 $5,000,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 2017 General Funds Road Funds Federal Funds Agency Funds 6
BUDGET CHALLENGES PERSONNEL EXPENDITURES BY FUND KY Department for Environmental Protection AMOUNT - SFY 2007 - 2017 $70,000,000 $62,013,634 $61,450,216 $58,540,074 $56,338,173 $60,000,000 $53,715,001 $53,244,750 $53,142,402 $56,042,339 $54,438,362 $49,486,082 $53,143,728 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 General Funds Road Funds Federal Funds Agency Funds 7
BUDGET CHALLENGES AVERAGE PAYROLL COST PER EMPLOYEE KY Department for Environmental Protection Amount - FY02-FY18 $90,000 900 880 $77,790 $77,642 $80,000 $72,521 $72,286 860 $66,672 $70,000 $64,935 $54,836 $56,539 $58,127 $59,520 $59,691 $61,468 $60,993 840 $60,000 820 $49,498 $49,590 $51,165 $52,608 Personnel Cap $50,000 800 780 $40,000 760 $30,000 740 $20,000 720 $10,000 700 $0 680 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Average Benefits Per Employee $8,418 $7,880 $8,961 $9,994 $11,418 $12,375 $13,201 $13,945 $15,671 $17,947 $18,445 $21,132 $22,753 $28,187 $28,608 $33,179 $33,600 Average Salary Per Employee $41,080 $41,710 $42,204 $42,614 $43,418 $44,164 $44,926 $45,575 $44,020 $43,522 $42,548 $43,803 $43,919 $44,334 $43,677 $44,611 $44,042 Average Total Payroll Per Employee $49,498 $49,590 $51,165 $52,608 $54,836 $56,539 $58,127 $59,520 $59,691 $61,468 $60,993 $64,935 $66,672 $72,521 $72,286 $77,790 $77,642 DEP Personnel Cap 856 884 841 849 863 814 814 795 795 766 766 760 764 759 759 759 759 8
PERSONNEL CHALLENGES 2018 PERSONNEL INDICATORS ENERGY & ENVIRONMENT CABINET & DEPARTMENT FOR ENVIRONMENTAL PROTECTION 37% AVG AGE OVER 50 47% 53% AVG AGE 30‐50 38% 10% AVG AGE UNDER 30 15% 16 MGMT AVG YEARS OF SERVICE 15 13 AVG YEARS OF EXPERIENCE 13 DEP AVG EEC AVG 9
PERSONNEL CHALLENGES SFY 2016‐2019 Postions vs. Funded CAP Department for Environmental Protection 800 600 400 200 0 DEP CAP DEP Positions 10
THE WHAT OF IT ALL PROGRAM UPDATES DIVISION FOR AIR QUALITY DIVISION OF WATER 11
DIVISION FOR AIR QUALITY 2015‐2018 12
DIVISION FOR AIR QUALITY AFFORDABLE CLEAN ENERGY (ACE) PLAN August 21, 2018 Effects ‐ What happens in Kentucky: • 7 Electric Utilities • 41 Electric Generating Units • All Ratepayers In Kentucky Findings: • Regulatory Certainty • Source Specific Factors • Clarifies Process And Timing Of SIPs • Consistent With Section 111(d) of the CAA 13
DIVISION OF WATER 2019 Priorities Legislative: Revise/Amend Regulations on fees Resolution to study/identify alternate sources of water infrastructure funding Workgroups: Convene stakeholder group to evaluate Human Health water quality criteria Convene stakeholder group to identify alternate sources of water infrastructure funding Technology: Programmatic: Launch mobile inspections Complete Triennial Review Improve electronic submittal Finalize the Kentucky Nutrient Management Reduction Strategy process for permit Develop floodplain general permits and/or permits‐by‐rule 14
DIVISION OF WATER WATERS OF THE UNITED STATES (WOTUS) • Currently reviewing the changes from the 2015 rule to the 2019 rule • Developing comments for EPA/USACE pursuant to the review • Conducting a regulatory and programmatic gap analysis • Planning for and making * Photography Source: utahwaterlaw.com recommendations regarding statutory, regulatory, and programmatic changes necessitated by new rule. 15
SUCCESS A Better Kentucky Today & Tomorrow Compliance & Partnerships
Air Quality 0.180 O3: Based upon annual 0.160 statewide averages of all valid fourth highest daily maximum 0.140 8‐hour concentrations; 29 sites used for 2017 average (ppm) 0.120 parts per million (ppm) 0.100 NO2: Based upon annual statewide averages of all valid 98th percentile daily maximum 0.080 1‐hour concentrations; 7 sites used for 2017 average (ppm) 0.060 0.040 SO2: Based upon annual statewide averages of all valid 0.020 99th percentile daily maximum 1‐hour concentrations; 12 sites 0.000 used for 2017 average (ppm) Year 17
Air Quality 120.0 12.0 PM2.5: Based upon annual statewide averages of all valid 100.0 10.0 98th percentile 24‐hour micrograms per cubic meter (µ/m3) concentrations; 18 sites used for 2017 average (µ/m3) 80.0 8.0 parts per million (ppm) PM10: Based upon annual statewide 60.0 6.0 averages of all valid first maximum 24‐hour concentrations; 8 sites used for 2017 average 40.0 4.0 (µ/m3) CO: Based upon annual statewide averages of 20.0 2.0 all valid second highest daily maximum 1‐hour concentrations; 3 sites used for 2017 average 0.0 0.0 (ppm) Year 18
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