REQUIRED LEGISLATIVE CHANGE
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1 DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES Division Of Environmental Management-Leaking Underground Storage Tank Program Recommendation Follow-Up RECOMMENDATION We recommend management continue its operational improvement efforts and continue to seek outside assistance in its attempt to standardize operational procedure costs for site assessment, cleanup and remediation. Partially implemented 80% complete We recommend LUST management consider revising operational policy and procedures to place a minimum dollar limit on reimbursement claim packages (except final payments) to reduce the volume of requests for payment. We also recommend that management take the necessary steps to fill the accounting specialist I position through upgrading the existing personnel on staff. This will allow that position to work full-time in reducing the backlog of claims. Filling the position with qualified personnel who has experience in reviewing these packages will also eliminate the down time required to train new staff. The present flow of claims received monthly will justify the position. This is an ongoing process which will be improved with new innovative ways when available. Adopted a policy to submit claims of $20,000 or only once every three months for the commercial fund claims. Created an additional accounting technician IV position. 1
2 To alleviate the increasing workload for the central office and regional office technical staff, we recommend the EHNR explore the utilization of college students majoring in environmental engineering and/or geology in a cooperative program similar to the programs used in other state agencies. These individuals could assist in technical activities such as inspection, compliance, monitoring, sampling, etc. Detailed guidelines established on all phases of LUST cleanup activities including appropriate site assessments, tank removals, excavation of materials, remediation methods should be adequately documented, enforced statewide and consistently followed by all regional offices. Standardized time tables should also be developed to budget and track the time necessary to perform these technical reviews in the regional offices. Documentation should be maintained on dates the claims are received, when reviews begin, dates and time spent performing the reviews and completed dates. We recommend LUST management petition the Environmental Review Commission and the General Assembly to consider management's assessment of budgetary changes needed for effective program operations and adjust the $1.35 million administrative cost "cap" accordingly. Requests for program changes should include adequate equipment and personnel to accommodate program operational modifications, particularly in the area of compliance. Yes July 1995 No Partially implemented 80% complete Have alleviated workload by utilizing temporary technical staff in regional offices where workload presented major problems. Not implemented New guidelines established in 1997 to address cleanup. New database to track claims put in place in Senate Bill 1012 addressed these issues. 2
3 We recommend LUST management provide the necessary equipment to the central office and regional office staff to assist in the on-site inspections of facilities and tanks. We also support and recommend expansion of the compliance group's current efforts to seek voluntary involvement of local and county officials, such as county inspectors and fire marshals, to perform compliance activities. We recommend the Department of Environment, Health and Natural Resources consider the development of a cooperative agreement with the Department of Agriculture to provide support for the tank compliance testing portion of the Leaking Underground Storage Tank program. Regional offices and/or central office purchase supplies needed through appropriate contracts. Partially implemented 25% complete DENR has signed Memorandum of Agreement with Guilford and Mecklenburg Counties and has been trying to extend these agreements to other counties. DWM and UST sections are continuously working with county inspectors and fire marshalls to train and encourage their involvement and participation in the compliance effort. Not implemented The Department of Agriculture conducts limited site inspections. Data is provided to UST section. 3
4 We agree with management's decision of temporary reassignment of regional personnel and recommend this process continue in the regional offices until the backlog of claims has been alleviated. Permanent reassignment of personnel may also be an option. This action will assist regional office staffs to focus more time and effort to on-site field responsibilities. The State should re-evaluate the existing standards for cleanup of contaminated groundwater to determine if the guideline should be revised. Inconsistencies between the groundwater standards and drinking water standards should be examined by Departmental officials and adjustments be made to reflect the appropriate guidelines. We agree with this concept of a certification process for individuals and/or businesses who perform underground storage tank installation and removals. This will strengthen the current efforts of the Department to ensure proper installation and removal of tanks. Partially implemented 75% complete Backlog was successfully alleviated shortly after recommendation made. Part of an ongoing process to streamline and improve process. Not implemented Risk-based rules for USTs were introduced and implemented. The guidelines for the cleanup of soil and groundwater were revised. Continued revisions of groundwater standards through the EMC are performed. t implemented Legislation was proposed but not enough support in DENR or regulated community, 4
5 We recommend the state LUST program administration develop a list of preapproved contractors based on appropriate qualifications to be used as a contractor resource document. We recommend the state LUST program administration use one region to initiate a pilot project using the three-phase contract process to accommodate the cleanup of contaminated sites. We recommend the state LUST program administration in coordination with the Office of State Attorney General develop appropriate contract formats for the three phases of the cleanup process. t implemented Not implemented because of administration and additional funding requirements. No funding was provided. Partially implemented 10% complete Has decided to implement pay-forperformance as a pilot project basis as an improved way to speed up cleanups and reduce costs. Partially implemented 60% complete Issued risk-based cleanup guidelines which indicates exactly what needs to be done to assess and cleanup UST sites. 5
6 We recommend that one region selected for the contractual process be provided with one qualified staff person to manage the contractual operations of the region. Upon the successful operation of the pilot project for contractual cleanup, we recommend the state LUST program administration should implement the contract program in the remaining six regions. Before closure of any site which has identified contamination, we recommend a regional staff person or a contracted independent licensed engineer or geologist obtain appropriate soil samples for an independent analysis confirmation. t implemented Regional project managers have to oversee 8,500 incidents/projects which presents an enormous workload. Additional projects including contractual administrator selection and management was not feasible. t implemented See above response. Partially implemented 50% complete Study requested by Senate Bill 1012 to determine the use of professional engineers and licensed geologists to perform independent analysis was completed. Subsequent to this study legislation was passed to not need professional engineer or licensed geologist to confirm if at UST closure there was no contamination. 6
7 We recommend LUST management continue to carefully evaluate cleanup costs which appear to be excessive. We feel the contractual method of cleanup as discussed previously in this report will reduce costs through the competitive bid process. Program personnel should re-evaluate the reasonable reimbursement costs allowable for each service utilized during a site cleanup from the initial site assessment to the final remediation. Estimates for each type of service should be obtained from industry experts statewide to determine either a low cost approach or an industry average. We recommend LUST program administration take assertive action in attempting to identify these unknown sites. Some potential sources of data could come from the Department of Agriculture, Department of Revenue, the listing of distributors from the oil jobbers association and major oil and gasoline suppliers. Reimbursement by task has been implemented to replace time and materials. All corrective action plans have to use competitive bid. Not implemented Implemented during Study has been completed to indicate how many abandoned tanks there are the cost to remove them. 7
8 We recommend changing the guidelines for investigation and remediation to a less frequent test basis. The majority of remediation and cleanup activities have proven to be long-term, therefore frequent test results are not necessary. Less frequent comprehensive testing will still provide the necessary information relating to the effectiveness of the remediation process. This will decrease the time required for examining status reports by central office and regional staff, allowing more time to perform actual site work. Comprehensive test analyses should only be required for initial comprehensive site assessment and at site closure. We recommend the General Assembly enact legislation to require state agencies owning property to take an active role in identifying all underground storage tanks on their properties and their status of compliance with UST regulations. We further recommend that all affected agencies submit a status report to the LUST program management by a date established by legislation. Yes No Risk-based rules were developed and implemented on January 1, Used phased approach to site assessment and allows risk-based closure t implemented Under UST Rules 15A NCAC 2N, state agencies must register and obtain annual operating permits for regulated USTs. Compliance status is required when permit application is reviewed. No need for proposed legislation. 8
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