Alabama Drycleaning Environmental Response Trust Fund. Pamela Wilson Alabama Department of Environmental Management

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1 Alabama Drycleaning Environmental Response Trust Fund Pamela Wilson Alabama Department of Environmental Management

2 Alabama Drycleaning Environmental Response Trust Fund (DERTF) Passed into Law May 24, 2000 Creates self-insurance program for drycleaners to cover environmental contamination Voluntary participation, not mandatory Establishes performance standards for drycleaners and wholesale chemical distribution facilities

3 Alabama Drycleaning Environmental Response Trust Fund (DERTF) To be used to address drycleaner contamination only ADEM provides oversight of remediation Administered by ADEM and DERTF board State treasurer collects fees/disburses funds

4 Alabama Drycleaning Environmental Response Trust Fund (DERTF) ADEM will adopt rules and regulations to administer: Establish performance standards for new and existing drycleaning facilities Establish criteria for reporting contamination Establish criteria to prioritize sites and cleanup standards Adopt a schedule to retrofit existing facilities

5 Alabama Drycleaning Environmental Response Trust Fund (DERTF) The DERTF Board includes: 3 members from drycleaner facilities 1 member from a wholesale chemical facility 1 member from an environmental group 1 member who is an environmental engineer 1 member from a group of property owners where drycleaners are or have been located

6 Criteria for voluntary participation and fee schedules: If unobligated funds exceed $8 million, fees not collected Fee collection resumes when unobligated funds are less than $4 million State not obligated for any remediation funding not covered by this act Fees equal to 2% of gross receipts, not to exceed $25,000 per year

7 Criteria for voluntary participation and fee schedules: New facilities pay $5000 first year, then 2% each year Wholesale distributors of chemicals pay $5000 each year Abandoned facilities and impacted third parties can participate in the fund by paying an annual fee of $5000 Adjacent property owners whose property has been contaminated by a drycleaning facility are not required to pay fees

8 Procedures for payments from the fund: Participating facilities must pay a deductible: Drycleaners pay $10,000 Wholesale Chemical Distributors pay $50,000 Board establishes payment procedures Each site limited to $250,000 per year If Fund balance <$1 million, the Board will not obligate funds unless an emergency exists

9 Limitations of liability allowed by the Act: Participants are not liable to the State or third parties for costs of remediation of releases Participants must submit and implement remediation plans for liability limitations Small business limitations of liability extends to all damages/claims except personal injury No exemption from personal injury liabilities

10 Administration allowances and Appropriations Department of Revenue is paid $50,000 per year to collect and administer fees ADEM is paid $75,000 per year for administration plus any costs incurred for rulemaking and oversight Attorney General s office is paid $25,000 per year for providing legal assistance to ADEM and the DERTF Board A Consultant to the DERTF Board is paid a maximum of $75,000 per year An administrative group to the DERTF Board is paid $35,000 per year

11 ADEM s Regulations The initial process Looked at other state programs Collaborative effort with the DERTF Board Departmental Review Stake holder's Meeting Public notice for 30 days Public hearing Approval by the Environmental Management Commission Regulations became effective July 25, 2003

12 Setting performance standards for new and existing drycleaners: Compliance must occur by May 23, 2005 Performance standards include: Storage in closed containers to minimize spillage Dikes around each machine and storage area All agents delivered to machines via closed or directcoupled systems Compliance with 40 CFR 63, subpart M (National Perchloroethylene Air Emission Standards) Prohibit release of wastewater containing drycleaning agents

13 Criteria for ADEM s Prioritization of Sites Initial Investigation must include: Actual or estimated timeframe the release occurred Type and approx. amount of constituents released Information regarding the surrounding population, well inventory within 1500 feet of the site, location of public water supply wells, receptors survey, groundwater samples (1 up gradient, 3 down gradient), and soil and vapor samples Work must be done by a board approved consultant/contractor

14 Assessment Property Assessment Actions planned to perform a risk assessment Full delineation of soil and groundwater contaminants Identification of applicable remediation standards Format consistent with the Alabama Environmental Investigation and Remediation Guidance document Departmental approval Implementation of the Property Assessment Assessment Report

15 Remediation Process Property Remediation Plan How each area of known contamination will be remediated How remediation will be conducted An estimate of the maximum inventory of remediation wastes/contaminated media onsite during remediation Description of methods and decontamination procedures An estimate of the time frame remediation will be completed for utilization of trust fund monies

16 Remediation Process Establish Criteria for Cleanup Standards May be based on specific requirements of environmental laws or regulations (Clean Water Act, RCRA, CERCLA, etc.) Current and future use scenarios for the property Impact on surrounding areas Departmental approval of Remediation plan Public Participation Public notification of remediation Submission of a written comments up to 30 days after notice Public hearing on remediation plan if necessary At the discretion of the Department whether changes will be made to the remediation plan

17 The final steps Implementation of the Remediation Plan ADEM may revoke liability protection if activities are not consistent with the plan Modifications may be made if site conditions change Certification of Compliance Submitted within 60 days of completion of remediation Followed by a Remediation Status Report ADEM then issues a Letter of Concurrence with restricted or unrestricted use Voluntary Cleanup Inventory List Sent out no later than July 1 st of each year to the clerk of each probate court of the state Restricted or Unrestricted Use

18 DERTF Board Board Review and Approval of Claims Criteria for making a decision: The order the claim for reimbursement is received Ranking on ADEM s Prioritization List Balance of Trust Fund Money available Payment of Registration Fees Expenditures No more than $250,000 per year per site Fund balance must not drop below $1 million Board pre-approves all expenditures based on non-binding budget estimates submitted by consultants/contractors If work is done under ADEM s oversight, the Board will approve

19 DERTF Board Consultants/Contractors Must be board approved 3 Categories of Companies Initial Investigations Property Assessments Property Remediation Must submit a written application that includes: Organizational history of the company Latest financial statement Proof of valid insurance and Alabama Contractor s License Proof of experience in at least 3 previous sites 2 Letters of Recommendation

20 Problems encountered Late payments Fair rate schedule The Act attempts to circumvent RCRA The Act states that ADEM may not seek out contamination Contractor concerns for payment of services Non-Board Approved Contractors have performed work ADEM must approve work done by Contractors in order for payment from the Fund

21 And finally More information regarding Alabama s Drycleaning Trust Fund can be found on the ADEM s website: drycleaners.html Information regarding the DERTF Act (Title 22, Chapter 30 D) can be found at: html

22 QUESTIONS???