1

Compliance Index –

Environmental Compliance/Performance Measure

Poor Average High0 100

National Environmental Partnership Summit, Baltimore, Maryland

May 20th, 2008

2

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

3

Some Details….

Ontario is a province just over 1 million square kilometres (400,000 sq mi)

Ontario could cover as many as 13 states

4

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 the 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

5

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

Conducts a proximity analysis to rank the facilities in a specific industrial sector according to distance to their sensitive receptors

120 m

65 m

6

Select High-Risk

Sectors

Conduct Risk Assessment

Sector PlanningProvincialInspection

Sweep

EnforcementAction

Undertake Sector

Diagnostics

Measure Compliance

Levels

Public Reporting

SectorOutreach

Internal*Compliance Assistance*Gaps / Issues

Compliance Improvement Activity

SCB Business Model…..

7

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

8

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 CofA conditions, etc.)

CI Formula: Vw + Cw

Vw = weighted legislative violationCw = weighted CofA conditions violation

9

Steps in CI Development…..

Identify the number of potential legislative violations that may result from an inspectionCategorize violations into four contravention categories (e.g, reporting and record keeping)Assign weights to each contravention category that reflect level of environmental significanceProvide weights to each violation VwRepeat steps for C of A condition violations CwDetermine CI value (by Company, by media, by program)

10

CI score represents a baseline numerical value for a facility environmental compliance levels

Higher the score, the lower the compliance with environmental legislation

Facility Score…..Hazardous Waste Processing and Transfer Site

Sector - Waste ManagementNon-Compliance Vw Cw

Air - No C of A 0 7Air - Failure to Comply with C of A 0

Failure to operate or maintain equipment according to terms and conditions of the CofA 4Waste Disposal Site (Transfer) - C of A Non-Compliance 0

Failure to notify MOE or obtain approval because of equipment modification or process changes 2Failure to prepare or maintain operational manuals and instructions as per C of A 1Failure to report (notify) to MOE of major issue. (e.g: exceedences) 4Failure to keep or have available appropriate records. <10% of records missing (minor) 1Failure to report based on regulatory or periodic requirements (e.g: Reg 127) 1

Waste Disposal Site (Processing) - No C of A 0 7Reg 347 - Generator Requirement 2Regulation 903 - Water Well Not Maintained 2

Vw 4Cw 27

Total 31

Primary Metal SiteSector - Primary Metals

Non-Compliance Vw CwGenerator - Fail to Register 2Land - Inadequate Spill Containment 2Waste Water - Discharge Without C of A 0 7Air - No C of A 0 7Air Monitoring / Reporting - Fail to Prepare Report 1Contaminant Discharge - Adverse Effect 4Contaminant Discharge - Water 4

Vw 13Cw 14

Total 27

11

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

12

CI score provided relative compliance level of facilities within different media inspections.

Higher the score, the lower the compliance with environmental legislation

Company Name MediaPass/Fail Vw Cw CI

A……. Waste Fail  0 20 20

B…… 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

Score for All Media inspections…..

13

The CI score provided relative compliance level of facilities within air media inspections.

Company Name MediaPass/Fail Vw Cw CI

A Air Fail 0 15 15

B 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

Score for Air Media inspections…..

14

SECTOR InspectionsTotal 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

CI Sector Index

0

2

4

6

8

10

12

14

16

Hazardous Waste Auto wrecking/recycling Primary Metals Used Tire Sites

CI

Av

g S

co

re

Score for Sector…..

15

  TIMMINS  Fiscal 2004/05

Fiscal 2005/06 (till Aug 06)

Company Name Program Module Type Pass/Fail CI Pass/Fail CI Compliance Performance

AWaste - Hazardous & Liquid industrial Subject Waste Generator Fail 7 Fail 7 No Change

B Waste - Solid/Non-hazardousSolid Non-Hazardous Waste Disposal Site Fail 15 Fail 15 No change

CWaste - Hazardous & Liquid industrial Subject Waste Generator Pass 0 Pass 0 No change

D Air Air Facility Fail 4 Pass 2 - 2

E Air Air Facility Fail 4 Fail 8 + 4

F Waste - Solid/Non-hazardous Closed Waste Disposal Site Fail 7 Pass 6 - 3

G Air Air Facility Fail 10 Pass 0 Total Compliance

H Waste - Solid/Non-hazardousSolid Non-Hazardous Waste Disposal Site Fail 2 Pass 0 Total Compliance

I Waste - Solid/Non-hazardousSolid Non-Hazardous Waste Disposal Site Fail 4 Fail 10 + 6

jWaste - Hazardous & Liquid industrial Subject Waste Generator Fail 5 Pass 0 Total Compliance

Change in numerical value indicates compliance performance status: (-)improvement /(+)decline

Comparison of CI Score on re-inspection…..

16

All Sector inspectors are required to enter violations information in CAMEO for all inspections that have been conducted. 

    Officer identifies non- compliance (Y/N)

Score is calculated in the

background

How to in System (Cameo)…..

17

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 riskComponent of larger risk assessment framework for the divisionKey indicator of compliance improvement as well as program success

Benefits of Compliance Index…..

18

Rajeev NarangMinistry of the EnvironmentSector Compliance BranchContinuous Improvement Unit

305 Milner Avenue, Suite 1000Scarborough, Ontario M1B 3V4Tel: (416) 314-0335Email: rajeev.narang@ontario.ca

Contact…..