Compliance Index Environmental CompliancePerformance Measure 0 Poor Average

Compliance Index – Environmental Compliance/Performance Measure 0 Poor Average High 100 National Environmental Partnership Summit, Baltimore, Maryland May 20 th, 2008 1

Compliance Index – Overview Present Ontario’s experience in conducting an inspection & enforcement program Discuss compliance performance indicator Present methodology and actual results Benefits of Compliance Index 2

Some Details…. Ontario is a province just over 1 million square kilometres (400, 000 sq mi) Ontario could cover as many as 13 states 3

Sector Compliance Branch…. Conducts province-wide inspections of industrial sectors, to ensure that they are in compliance with Ontario’s environmental laws, in order to reduce threat to human health and environment Undertakes education and outreach initiatives to help promote compliance Publicly reports compliance performance and trends to encourage proactive compliance Committed to continuous improvement in compliance programs 4

Risk Based Approach…. . SCB employs a risk assessment method to assess the relative environmental risks of industrial and commercial sectors for the purposes of prioritizing planned inspections 120 m 65 m Conducts a proximity analysis to rank the facilities in a specific industrial sector according to distance to their sensitive receptors 5

SCB Business Model…. . Compliance Improvement Activity Conduct Risk Assessment Select High-Risk Sectors Sector Planning Provincial Inspection Sweep Enforcement Action Undertake Sector Diagnostics Sector Outreach Measure Compliance Levels Internal *Compliance Assistance *Gaps / Issues Public Reporting 6

Why Compliance Index…. . Provide Ministry with an outcome based performance measurement for facility and sector compliance levels Provide a real-time compliance assessment methodology Facilitate effective decision-making when targeting sectors and facilities Provide an effective tool to evaluate results and provide comparisons 7

Compliance Index…. . The Compliance Index is a measure of relative compliance levels, based on types of legislative violations (e. g. , exceedance of a regulatory limit, non-compliance with permit or Cof. A conditions, etc. ) CI Formula: Vw + Cw Vw = weighted legislative violation Cw = weighted Cof. A conditions violation 8

Steps in CI Development…. . Identify the number of potential legislative violations that may result from an inspection Categorize violations into four contravention categories (e. g, reporting and record keeping) Assign weights to each contravention category that reflect level of environmental significance Provide weights to each violation Vw Repeat steps for C of A condition violations Cw Determine CI value (by Company, by media, by program) 9

Facility Score…. . CI score represents a baseline numerical value for a facility environmental compliance levels Higher the score, the lower the compliance with environmental legislation 10

Facility Score within Haz. Waste Sector…. . Company Name Pass/Fail Vw Cw CI Score _____A Fail 3 32 35 _____B Fail 4 27 31 _____C Fail 7 23 30 _____D Fail 2 28 30 _____E Fail 13 14 27 _____F Fail 8 19 27 _____G Fail 5 21 26 _____H Fail 0 26 26 _____I Fail 6 18 24 _____J Fail 9 14 23 _____K Fail 4 19 23 _____L Fail 0 21 21 _____M Fail 3 17 20 _____N Fail 9 9 18 _____O Fail 4 14 18 11

Score for All Media inspections…. . CI score provided relative compliance level of facilities within different media inspections. Higher the score, the lower the compliance with environmental legislation Company Name Media Pass/ Fail A……. Waste B…… Vw Cw CI Fail 0 20 20 Water Fail 4 14 18 C…… Waste Pass 1 15 16 D…… Air Fail 8 7 15 E…… Air Fail 4 7 11 F…… Waste Fail 4 7 11 G…… Waste Fail 4 7 11 H…… Air Fail 4 7 11 I……. . Water Fail 4 7 11 J…… Air Fail 4 7 11 K…… Waste Fail 6 4 10 L…… Air Fail 2 7 9 M…… Air Fail 4 4 8 N…… Waste Fail 1 7 8 O…… Water Pass 0 8 8 P…… Waste Fail 8 0 8 Q…… Waste Fail 4 4 8 12

Score for Air Media inspections…. . ØThe CI score provided relative compliance level of facilities within air media inspections. Company Name Media Pass/ Fail A Air B Vw Cw CI Fail 0 15 15 Air Fail 4 7 11 C Air Fail 0 8 8 D Air Fail 0 7 7 E Air Fail 7 0 7 F Air Fail 0 7 7 G Air Fail 0 7 7 H Air Fail 0 7 7 I Air Pass 0 7 7 J Air Fail 0 7 7 K Air Fail 6 0 6 L Air Pass 6 0 6 M Air Pass 6 0 6 N Air Fail 6 0 6 O Air Fail 6 0 6 P Air Fail 2 0 2 q Air Fail 2 0 2 13

Score for Sector…. . SECTOR Inspections Total CI Score Sector Avg CI Max CI Min CI SD CI Var Hazardous Waste 40 589 14. 73 35 0 9. 69 93. 90 Auto wrecking/recycling 48 477 9. 94 36 0 7. 39 54. 66 Primary Metals 41 369 9. 00 27 0 6. 59 43. 45 Used Tire Sites 36 78 2. 17 7 0 3. 26 10. 60 14

Comparison of CI Score on re-inspection…. . TIMMINS Fiscal 2005/06 (till Aug 06) Fiscal 2004/05 CI Compliance Performance Fail 7 No Change 15 Fail 15 No change Pass 0 No change Air Facility Fail 4 Pass 2 -2 Air Facility Fail 4 Fail 8 +4 F Waste - Solid/Non-hazardous Closed Waste Disposal Site Fail 7 Pass 6 -3 G Air Facility Fail 10 Pass 0 Total Compliance H Waste - Solid/Non-hazardous Solid Non-Hazardous Waste Disposal Site Fail 2 Pass 0 Total Compliance I Waste - Solid/Non-hazardous Solid Non-Hazardous Waste Disposal Site Fail 4 Fail 10 +6 j Waste - Hazardous & Liquid industrial Subject Waste Generator Fail 5 Pass 0 Total Compliance Company Name Program Module Type Pass/Fail CI A Waste - Hazardous & Liquid industrial Subject Waste Generator Fail 7 B Waste - Solid/Non-hazardous Solid Non-Hazardous Waste Disposal Site Fail C Waste - Hazardous & Liquid industrial Subject Waste Generator D Air E Pass/Fail Change in numerical value indicates compliance performance status: (-)improvement /(+)decline 15

How to in System (Cameo)…. . All Sector inspectors are required to enter violations information in CAMEO for all inspections that have been conducted. Officer identifies noncompliance (Y/N) Score is calculated in the background 16

Benefits of Compliance Index…. . Provides performance measurement for facility, sector and media/program compliance levels Increases the objectivity in compliance ratings that will help avoid different facilities being ranked at the same levels (Fail/Pass) of non-compliance Improves determination of inspection targets, and also provides an indicator to gauge the level of compliance improvement Reduces subjectivity and provides provincial consistency when ranking facilities based on risk Component of larger risk assessment framework for the division Key indicator of compliance improvement as well as program success 17

Contact…. . Rajeev Narang Ministry of the Environment Sector Compliance Branch Continuous Improvement Unit 305 Milner Avenue, Suite 1000 Scarborough, Ontario M 1 B 3 V 4 Tel: (416) 314 -0335 Email: rajeev. narang@ontario. ca 18