State Innovation Grants

EPA 2005-2006 State Innovation Grants Competition Pre-Proposals

Project Title
Auto Salvage Environmental Results Program

Applicants
Indiana Department of Environmental Management (IDEM)

Project Contacts
Matthew Deaner
Quality Management Plan Coordinator, Office of Planning and Assessment
Indiana Department of Environmental Management
Indiana Government Center North
100 N. Senate Avenue
Indianapolis, IN 46206-6015
Phone: (317)-233-3187
Toll-free: (800) 451-6027 ext., 33187
E-mail: mdeaner@idem.in.gov

Other Federal Program Assistance
The project proposal is not executed with or funded by another Federal program.

Regulatory Flexibility Needs
The project does not require regulatory flexibility.

Approval of the project by the Commissioner
The Commissioner of IDEM, Thomas W. Easterly endorses this proposed innovative permitting effort for grant funding under the State Innovation Grant Program.

PRE-PROPOSAL NARRATIVE

Past inspections have shown that air, land, and water violations are commonplace for Indiana auto salvage facilities (see Figure 1: Noncompliance rates for categorized violation classes (sample of 50 facilities)). The Indiana auto salvage sector has historically been a lightning rod for pollution complaints, netting over 100 auto salvage-related complaints per year. IDEM expends a great deal of resources in addressing these complaints. IDEM recognizes the need to address sector-wide environmental problems in a comprehensive manner.

IDEM is in the process of institutionalizing a past OECA-funded auto-salvage compliance pilot program. In building on this past effort, IDEM seeks to implement an integrated, results oriented approach to ameliorate the systemic and ubiquitous environmental problems associated with the auto salvage sector. IDEM is interested in transitioning the OECA-funded auto salvage pilot to an Environmental Management System (EMS), built using the Massachusetts Environmental Results Program (ERP) model. IDEM intends to expand on guidance / inspection materials and lessons learned from the past OECA grant, with an eye towards actuating sector-wide improvement in compliance and management practices using an ERP in concert with an aggressive, multimedia inspection regimen, with an innovative violation resolution model (See Figure 2: Inspection and Outcome Model). IDEM will benefit from learning innovative compliance methodologies such as ERP, and may extend the ERP approach to other regulated sectors.

IDEM's Auto Salvage ERP grant proposal has the following components:

Database upgrade,
Facility self-certification,
Inspections,
Statistically-derived performance measurement, and
Compliance workshops, and on-site pollution prevention and technical assistance.

Database upgrade

Expand current auto salvage facility data storage system by linking to facility data in the Indiana Bureau of Motor Vehicles' (BMV) system (contains regulated universe of auto salvage facilities). This will improve interagency partnership and keep the permitting universe current. A "permitting universe" is essential for mailings and outreach, and for using Environmental Business Performance Indicator (EBPI) based performance measures in conjunction with statistical extrapolation to compute sector-wide compliance rates.
Improve current storage system by adding additional reporting capabilities.
Improve/repair violation recording functionality.

Facility self-certification

Alternative to traditional enforcement (See Figure 2: Inspection and Outcome Model)
Alternative to permitting for stormwater
Includes self-certification worksheet and form
Use EBPIs to track progress and reduce pollution.
Use Return to Compliance Plans to assist problem facilities with coming back into compliance.

Inspections
Inspections are performed by multimedia-trained staff from IDEM's Office of Land Quality. Staff are certified to issue regulatory citations on behalf of IDEM's Office of Air, Land, and Water quality.

Build on past auto salvage sector-specific inspection efforts by improving existing multimedia inspection protocol and inspection checklist form.
An aggressive inspection schedule will encourage the regulated community that it is in their best interest to self-certify, thus taking advantage of the one-year Return to Compliance Plans.
Use a statistically derived inspection target to obtain a baseline sample number, and perform random inspections. Repeat the random inspection regimen the following two years (using statistically significant sample). Perform targeted inspections at a minimum of 5% of the universe per-year. Targeting based on complaints received and referrals from city/county officials and law enforcement.
Involvement of local and county officials (i.e. health departments) in inspections and in identifying facilities operating outside the permitting universe.
Teach local and county officials to identify problematic environmental practices at auto salvage facilities. Develop referral process between the local and county agencies and IDEM.
Build on compliance referral partnership with BMV by incorporating ERP solicitation in BMV inspections.

Statistically-derived performance measurement
IDEM will use guidelines and methodologies presented in "Generic Guide to Statistical Aspects of Developing and Environmental Results Program" EPA OPEI - April, 2003

Compute 95% confidence level for sample size with respect to permitting universe. Inspect random sample of this number for baseline analysis. Evaluate performance of project by continuing sampling for two subsequent years.
Evaluate program effectiveness using EBPI's. EBPI's gathered during the baseline survey represent the starting point. Subsequent surveys will show progress.
Use statistics to find program or requirement specific compliance problems.
Evaluate long-term effect that compliance inspections have on facilities in all violation categories. Does inspecting facilities improve environmental outcomes? Are there "spillover" effects that carry over to non-inspected facilities?
Determine if there is a relationship between size and throughput of facility and compliance rates.
Use correlation to infer sector-wide reporting accuracy, individual facility accuracy, and individual indicator accuracy.
Other performance measures include Workshop attendance, number of self-certifications, number of inspections, and "case-studies" of documented environmental successes.

Compliance workshops, and on-site pollution prevention and technical assistance.
Workshops held by IDEM Office of Pollution Prevention and Technical Assistance, using materials developed by IDEM Office of Land Quality and IDEM Office of Planning and Assessment.

Workshops and on-site assessments.
Media outreach
Additional guidance materials on the Internet
Work with Office of Land Quality-Industrial Waste on EBPI's. These can be P2 driven Bumps and/or required operating procedures.
Refined version of our auto salvage workshop video as a work product of the grant.

5.2.1.1 Program Criteria

This project is aligned with the following 2003-2008 EPA Strategic Goals:

Goal 2: Clean and Safe Water
Goal 4: Healthy Communities and Ecosystems
Goal 5: Compliance and Environmental Stewardship

This project is aligned with the following Environmental Innovation strategic visions and goals:

Vision

Focus on environmental performance and results
Integrate environmental management fore fully across facilities, problems, and media
Use market-based incentives to achieve environmental results - through non-traditional enforcement actions that steer problem facilities toward using ERP and Return to Compliance Plans in lieu of enforcement action with civil penalties.
Emphasize partnership and stakeholder collaboration - Partnership established with local health departments and city/county officials

Goals

Focus on Priority Issues

Restore and maintain water quality

Diversify Environmental Protection Tools and Approaches

Target tools and approaches for strategic development – encourage use of EMS's
Develop results-based performance goals and measures

5.2.1.2 Likely Improvements from Project Implementation

IDEM's Auto Salvage ERP will improve management practices at auto salvage facilities and will address ubiquitous and persistent environmental problems arising from this sector. Monitoring of EBPI's and reduced pollution complaint rates will show a measurable improvement in land and water quality.

5.2.1.2.1 How does the proposed tool or approach differ from traditional approaches?

Sector-based, multimedia approach.
Outcome-focused approach – presenting ERP as a viable and cost-effective alternative to enforcement action for low-level violations.
Statistically-derived performance measures improve IDEM's ability to monitor key indicators and quickly adjust project parameters to address deficiencies.

5.2.1.2.2 How does the project build on "lessons learned” from prior experience?

ERP proposal is modeled after the Massachusetts ERP.
Statically-derived performance measurement adapted from Massachusetts ERP and "Generic Guide to Statistical Aspects of Developing and Environmental Results Program" EPA OPEI - April, 2003
Project guidance, workshop materials, inspection forms and protocols adapted from previous auto salvage compliance program funded through OECA grant.

5.2.1.2.3 What are the quantifiable improvements in environmental outcome expected?

Reduced number of complaints.
Baseline and follow-up inspections will focus on improvement in land and water quality by measuring the incorporation of EBPIs in salvage-yard work practices.

Possible EBPI's

Battery storage and disposal

Spill reporting and cleanup

Mercury switch storage and disposal

Sorbent disposal

Waste tires

Solvent storage and disposal

Hazardous waste determinations

SQG/LQG registration

Fluid removal from vehicles upon arrival or before crushing

Crushing equipment (pad, draining spike)

Solid waste disposal

Used oil storage and disposal

UST's/ASTs (IDEM and SPCC registration)

MVACs

Antifreeze storage and disposal

Used oil filters storage and disposal

Cold degreaser operations

5.2.1.2.4 What are the measurable improvements in administrative efficiency and program operational costs?

Reduced staff time spent on complaints filed against auto salvage yards.
Long-term reduction in enforcement actions will reduce burden on Office of Enforcement staff.

5.2.1.2.5 What are the likely savings in costs and efficiency for permit holders and regulated entities?

Alternate enforcement plan will favor ERP implementation over civil penalties.
Regulated entities who take advantage of training opportunities and guidance will have less need to hire an environmental consultant.

5.2.1.2.6 What are the public involvement processes that will be used to ensure public knowledge of and participation in the project?

The current auto salvage website has a comment form that will be used to request input from public and regulated community during program development stage.

5.2.1.2.7 What factors will be taken into consideration in the design and implementation of the project as it relates to concerns in communities with environmental justice issues?

The Indiana Auto Salvage ERP project will reduce impact to environmental justice communities of concern, as salvage facilities tend to locate in close proximity to these areas. Guidance materials will raise public awareness of the environmental regulations salvage yards are subject to, giving environmental justice communities the knowledge they need to report violations.

5.2.1.3. Measuring improvement and accountability

5.2.1.3.1 What are the indicators of environmental improvement that will be used to show improvement, and is the relationship to the specified outcome goal clear? (Goal and objective measures should be both qualitative and quantitative and should assess the project’s measurable benefits.)

Please see 5.2.1.2.3 What are the quantifiable improvements in environmental outcome expected?

The EBPI's in the aforementioned section are linked to the overarching goals of this program, which are mitigating air, land, and water environmental problems associated with the auto salvage sector.

5.2.1.3.2 How and when will the baseline measurements be developed?

The baseline will be developed during the second quarter of 2006. IDEM will inspect, at a minimum, a statistically significant, random sample of facilities and will release a compiled report with the results.

5.2.1.3.3 What is the plan, timeline, and commitment for measuring and evaluating how well the project meets its goals and objectives?

Project Schedule and Time Frame

Initiation	Completion	Task Description
Q3-2005	Q1-2006	- Database upgrade - Program development (develop EBPIs and supporting materials, develop Return to Compliance and Certification forms, expand on outreach materials, definition of high-level and low-level violations from Office of Enforcement.) - Gather stakeholder/public comment. - Multimedia inspector training
Q2-2006	Q3-2006	- Conduct baseline inspections. Analyze data. - Conduct compliance workshops. - Media campaign to encourage self-certification. - Perform on-site compliance assistance (as requested).
Q3-2006	Q3-2007	- Implement program. - Introduce ERP as viable alternative to traditional enforcement (for low-level violations) - Enforce incorrect / misleading self-certifications - Perform on-site compliance assistance (as requested). - Perform targeted inspections.
Q3-2007	Q3-2007	Second round of survey inspections. Evaluate performance and report to EPA.
Q3-2007	Q3-2008	- Implement program. - Enforce Return to Compliance Plans - Enforce incorrect / misleading self-certifications - Perform on-site compliance assistance (as requested). - Perform targeted inspections. - Develop long-term (non-grant) implementation plan.
Q4-2008	Q4-2008	- Evaluate success of program. Provide detailed report on web and to EPA. - Offer all supporting materials to EPA and/or interested states. - Examine applicability of ERP to other IDEM regulatory programs.

SUMMARY BUDGET PROPOSAL

[Removed by EPA]

State Innovation Grants

EPA 2005-2006 State Innovation Grants Competition Pre-Proposals

5.2.1.1 Program Criteria

5.2.1.3. Measuring improvement and accountability

Local Navigation