1. Underground Storage Tank Branch Updates MSECA Quarterly Meeting August 22, 2013 Craig Schroer, Chief Underground Storage Tank Branch (317) 234-0974 cschroer@idem.IN.gov

2. UST Branch Organization Craig Schroer, Chief UST Branch (317) 234-0974 cschroer@idem.IN.gov Jay Goulet Corrective Action and Claims Specialist (317) 234-5064 jgoulet@idem.IN.gov Tim Veatch, Chief LUST Section (317) 234-0974 tveatch@idem.IN.gov Tom Newcomb Compliance Specialist (317) 234-0357 tnewcomb@idem.IN.gov Bobbi Steiff, Chief ELTF Claims Section (317) 234-0935 rsteiff@idem.IN.gov Bill Davis, Chief ELTF Technical Section (317) 232-8921 bdavis@idem.IN.gov Roy Harbert, Chief UST Section (317) 232-7957 rharbert@idem.IN.gov

3. UST Section Responsibilities UST registration UST fee assessment Financial responsibility verification Operator training certification Compliance inspections UST closure approval

4. LUST Section Responsibilities Release reporting oversight Corrective action review and oversight No further action and institutional controls review and approval

5. ELTF Technical Section Responsibilities Corrective action review and oversight No further action and institutional controls review and approval ELTF eligibility determination

6. ELTF Claims Section Responsibilities Review and approve ELTF claims for corrective action costs Support Attorney General’s office review of third party claims and process these claims

7. Statutes and Rules USTs (IC 13-23) www.IN.gov/legislative/ic/code/title13/ar23/ 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 www.IN.gov/legislative/ic/code/title13/ar12/ch3.pdf UST (329 IAC 9) www.IN.gov/legislative/iac/T03290/A00090.PDF www.IN.gov/legislative/iac/T03290/A00090.PDF ELTF (328 IAC 1) www.IN.gov/legislative/iac/T03280/A00010.PDF www.IN.gov/legislative/iac/T03280/A00010.PDF

8. 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 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 www.idem.IN.gov/files/RISC_closure_guidance.pdf

9. Web Page Information, Reports and Announcements UST - www.idem.IN.gov/4997.htmwww.idem.IN.gov/4997.htm LUST - www.idem.IN.gov/4999.htmwww.idem.IN.gov/4999.htm ELTF - www.idem.IN.gov/5063.htmwww.idem.IN.gov/5063.htm

10. UST Branch Continuous Improvement Integration of programs Administrative processes - VFC Timeliness and consistency of reviews Compliance especially for prevention Fostering relationships with our customers

11. UST Program

12. 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) www.idem.in.gov/6768.htm

13. Current UST Program Goals and Initiative Notification Fees/Intent to Reinstate ELTF Eligibility Financial Responsibility Operator training Inspections Delivery Prohibition Abandoned USTs

14. UST Notification Form When 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

15. UST Notification Form When 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

16. UST Notification Form What 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.

17. USTs Fees and Intent 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!

18. 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.

19. Operator Training What 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.

20. Operator Training How 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.www.idem.N.gov/5964.htm IDEM does not give reciprocity for certified operators from other states.

21. 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)

22. 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

23. Delivery Prohibition What 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.

24. Delivery Prohibition What 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)

25. 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

26. Future UST Program Goals 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

27. LUST Program

28. 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

29. LUST Statistics - Trends

30. Current LUST Program Goals and Initiatives Standardized report forms Streamlined site-characterization process (formerly known as FastTRACK)

31. 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

32. 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.

33. Future LUST Program Goals 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

34. ELTF Program

35. 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

36. ELTF Program Statistics

37. Current ELTF Program Goals and Initiatives ELTF Report Administrative denials of claims ELTF Kaizen

38. ELTF Report Interested parties can obtain the status of pending ELTF claims on the internet at www.idem.in.gov/5081.htm. www.idem.in.gov/5081.htm Future enhancements will provide real-time information

39. Administrative Reviews Triage 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.

40. ELTF Kaizen Continuous 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

41. 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

42. 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

43. Three (3) Bids for 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

44. 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

45. 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

46. 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

47. ELTF Payment and Vendor Information 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. 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.

48. ELTF Payment and Vendor Information 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)].

49. ELTF Payment and Vendor Information 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.

50. 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.

51. Future ELTF Program Goals and Initiatives Assess ELTF eligibility process ELTF Rulemaking planned to begin in 2014

52. Questions or Comments Thank you for listening!