BUSINESS BENEFITS
:-''^;"^;'fi^;'-^-:;';;-:--
WELLHEAD PROTECTION
Case Studies:
Dayton, Ohio; Xenia, Ohio; and Pekin, Illinois
Source Water Protection
Business and Economic Series
Report No. 1
Office of Water
- Office of Ground Water and Drinking Water
.'',,'. Ground Water Protection Division
' . .' ! ' ' * - > . ' - ' ;
Prepared by
Charles A. Job
October 27,1995
... -» j
Environmental Protection Agency
401 M Street, S.W.
Washington, D.C. 20460
For More Information, Please call (202)260-7077
or the Safe Drinking Water Hotline 1-800-426-4791
-------
-------
Summary
Business Benefits of Wellhead Protection
i Case Studies:
Dayton, Ohio; Xenia, Ohio; and Pekin, Illinois ;
Business participation is a critical factor for three successful local wellhead and
ground water protection programs in Dayton and Xenia, Ohio, and Pekin, Illinois. They
offer three different wellhead and ground water protection models but show common
themes for business involvement and benefits. The business perspective on the costs
and benefits of participating in a local Wellhead and ground water protection program in
these three communities represents a range of companies: auto manufacturer, sand
and gravel dealer, industrial cleaner, chemical products manufacturer, nursery products
distributor, ethanol and agricultural feed producer; heavy equipment manufacturer, and
land developer. While all the business representatives identified costs, many benefits
to thorn and their communities emerged. Bottom-line benefits highlighted by several
companies included: process changes that saved operating costs not previously
anticipated; maintaining water quality that kept industrial water treatment costs down;
and knowing the exact storage location of chemicals which kept emergency response
costs down and allowed better management of existing chemical stocks. All companies
indicated that being within the Wellhead Protection Area (WHPA) caused them to be
conscious of chemical use and thereby reduced liability from releases through better
chemical management. Early involvement by business minimized local regulatory
i burden and promoted education and protective activities at the same time. Business
leaders saw that protecting their communities' water supplies benefitted the community
by making it attractive to other companies and potentially helping their own business
grow. That is, protecting the local water supply is an important and necessary cost of
. ,' '--. . .1 . (.'':..
doing business in these communities.
-------
-------
Table of Contents
Business Benefits of Wellhead Protection
-.-.'.' Case Studies: .
Dayton, Ohio; Xenia, Ohio; and Pekin, Illinois
Section .
Introduction
Business Benefits and Costs: An Overview
Costs
Benefits
Dayton, Ohio
Xenia, Ohio
Pekin, Hindis
Conclusions
Participants
Page
1
i
1
2
3
4
5
6
7
-------
-------
BUSINESS BENEFITS OF WELLHEAD PROTECTION
Case Studies: Dayton, Ohio; Xenia, Ohio; and Pekin; Illinois
Introduction .
Business participation is a critical'
factor for three successful local
wellhead and ground water protection
programs in Dayton and Xenia, Ohio,
and Pekin, Illinois. They offer three
different wellhead and ground water
protection models but show common
themes for business involvement and
benefits. The bottom line is that
business and the community benefit
from cooperative efforts to make their
common water supply clean and safe.
The local wellhead and ground water
protection programs and related
business activities of these.three
communities are described beiow with a
special focus on business benefits as
described by business representatives
and leaders themselves. First, the costs
are described and then the benefits.
Business Costs and Benefits: An
Overview
The business perspective on the
costs and benefits of participating in a
local wellhead and ground water
protection program in these three
communities represents a range of
companies: auto manufacturer, sand
and gravel dealer, industrial cleaner,
chemical products manufacturer,
nursery products distributor, ethanol and
agricultural feed producer, heavy
equipment manufacturer, and land
developer. While all the business
representatives identified costs, many
benefits to them and their communities
emerged.
Costs ; '.-;'
From a cost standpoint, several
companies indicated that they
completed protective activities earlier
than they would have otherwise
because of being in wellhead protection
area. Some of these activities include
double containment and closer
management of chemical inventories.
One representative said that process
and operational changes were needed
and would have been scheduled out
overtime. One company increased its
operating costs by eliminating onsite
fueling, but reduced, its liability from fuel
spills in the process. Another company
was concerned about reduced property
value, but already had an underground
contaminant plume from its operations
that it was managing. In Dayton,
concern about limited business
expansion opportunity Was based on the
local Well Field Protection Area (WFPA)
regulatory requirement that no more
than the previously established
chemical inventory quantity could be
kept on site. Chemicals could be traded
within the quantity limits, allowing;
expansion through closely managed
chemical stocks, which required more
effort.
-------
Benefits ' .
Bottom-line benefits highlighted
by several companies included:
process changes that saved operating
costs not previously anticipated;
maintaining water quality that kept
industrial water treatment costs down;
and knowing the exact storage location
of chemicals which kept emergency
response costs down and allowed better
management of existing chemical
stocks. All companies indicated that
being within the Wellhead Protection
Area (WHPA) caused them to be
conscious of chemical use arid thereby
reduced liability from releases through
better chemical management. The
companies had to do a Superfund
Amendments Reauthorization Act
(SARA) Title III - Community Right-to-
Know inventory anyway, so the
additional chemical inventorying was not
viewed as a significant burden. Being in
the WHPA causes companies to
evaluate operations and improve
efficiency. One company indicated that
it had'worked with its customers to
reduce problem chemical use and
cleaning needs, promoting pollution
prevention. In one case, obsolete.
[chemicals in stock were sent offsite for
proper disposal, further reducing
potential liability.
Several companies in Dayton,
which has a program to assist in
financing best management practice
implementation as well as business
relocation, indicated that they were
taking advantage of "zero interest"
funds to install process changes. One
company saw a benefit in not being
forced to move from the WHPA.
Another took advantage of the 5-year
forgivable loan to help the purchaser of
its property and allow it to relocate out
of the WHPA. In Xenia, business had
actually expanded in its Ground Water
Resource Protection Area (GRPA).
Every company said that taking
actions to protect the. community's water
supply benefited everyone in the
community and made the community
attractive for additional economic
.development and growth. Establishing
the WHPA or GRPA heightened'
awareness of the need to protect the
community water resource,, which most
took for granted. A significant benefit
was the reduced liability for any
company handling chemicals because
of the greater care needed in doing so.
After one company conducted its
inventory and realized its risk of certain
chemical treatments taking place so
close to the city wellfield, it took the
opportunity to get out of high liability
business.
A universal unquantifiable benefit
for all companies was participating at
the beginning of the local WHP
regulatory process. This early
participation made the result of
establishing a local WHPA control
program more business-friendly and
acceptable, reducing regulatory
demands from what they might have
been. The earlier in the process the
information on the need to protect the
WHPA, the more positive the business
response. In Pekin, where a locally
developed educational effort took place
before proposing that an ordinance be
-------
developed, no business opposition
occurred. The successes and their
benefits are further described below.
Dayton. Ohio
...»
In 1984, the detection of trace
levels of volatile organic chemicals
(VQCs) in Dayton's water supply
prompted a.local environmental group to
conduct a preliminary inventory of the
potential sources of contamination.
Extensive publication of that inventory
motivated the City's elected officials to
pursue regional aquifer and local
wellhead protection efforts. In 1987, a
major fire at a paint distribution
warehouse located hear several
drinking water production wells, served
to further highlight the need for
protective measures. In 1988, the Great
Miami Buried Valley Aquifer System was
declared a Sole Source Aquifer under
the Federal Safe Drinking Water Act
and the City passed ordinances
establishing the regulatory aspects of
what is now a multi-jurisdictional,
internationally-recognized welifieid
protection program. Dayton's program
served as the model for the wellhead
protection element of the 1990 five-
county Ground Water Protection
Strategy for the Miami Valley Region
developed through the Miami Valley
Regional Planning Commission. The;
Dayton Department of Water supplies
over 500,0.00 people. Dayton has over
700 businesses located in its Well Field
Protection Areas.
Dayton's program includes limits
set by the land owner/manager based
on current chemical use for the amount
of chemicals stored on site. Since the
sand and gravel aquifer is naturally
sensitive to contamination, the
Department of Water's ordinance
desires to move the chemicals of most
risk out of the Welifieid Protection Area
(WFPA) over time. The city offers
interest free and forgivable loans and
grants to business to implement best
management practices and to help
move large quantity chemjcal users out
and move compatible business in.
These financial incentives are funded by
the water users, all of whom benefit
from a protected water supply. Biennial
reporting of chemical stocks is required;
slightly different than SARA Title III
requirements. Several sites have active
remedial efforts ongoing to prevent
contamination from reaching city wells.
Establishing a good relationship with the
local newspaper helped inform all
Dayton water users of the need and
alternatives for protecting the City's
water supply.
Dayton Business Benefits: .While
one business representative said there
was no benefit to her company, she
indicated that the actions her company
takes benefit the entire community in
protecting its water supply. Other
interviewees, however, said that
changes in production, storage and
service processes encouraged by being
in the WFPA have helped reduce
operating costs and minimize liability in
handling and using chemicals. These
companies have also benefited from
zero interest loans to implement best
management practices. All the
business interviewees agreed that
protecting the communityls drinking
-------
water supply benefited their companies
and the residents of the area.. The
biggest benefit to companies was the
early leadership and participation of the
Dayton Chamber of Commerce in ,
working with the City! This participation
helped ensure that the Dayton WFPP
would not cau.se businesses to close or
move. The City, likewise, wanted to
protect the wellfields and encourage -
business activity at the same time, a
challenge to balance economic and
environmental interests which the City
has met. .
Xenia. Ohio
While Xenia (pop. 24,836) is still
working on its Wellhead Protection
Program (WHPP), it has established a
Ground Water Resource Protection
Area (GRPA) over a sensitive recharge
zone on which half the city sits. Interest
in protecting this future water supply
was sparked by a proposal for an
industrial park in the western half of the
city. The city obtained technical support
from the Miami Valley Regional
Planning Commission, which had also
worked with Dayton. Xeriia's approach
built on existing zoning and local
environmental protection authorities.
Businesses in the GRPA who use
regulated substances beyond a certain
,° quantity must take an inventory of all
hazardous materials under the city's
Hazardous Substances ordinance and
work with the Fire Chief to develop and
implement best management practices
under the Ground Water Protection
Overlay Zoning that may include double
containment, diking, emergency
response and ground water monitoring,
where necessary. All businesses in the
overlay district are required to designate
personnel who will become certified to
respond for ground water protection and
these businesses must develop an
emergency response plan. This
certification is part of an education
ordinance that addresses training for
business personnel and public
education on ground water protection
and establishes a ground water data
bank and research policy. .
The Xenia Economic Growth
Corporation, whose members are
business people, was involved at the
beginning in responding to different
protection proposals developed by the
Planning Division. While their reaction
was concern for not limiting economic
growth, business'early involvement
ensured that protective activities could
be implemented by business while not
reducing growth possibilities. Several
businesses have expanded in the
GRPA since the overlay zoning has
been implemented. Fundamental to
future growth, the city has zoned areas
for different types of industrial growth
based on the sensitivity of the land that
would potentially result in contamination
of the aquifer depending on overlying
land uses and management practices.
As far as is known, this is the first GRPA
program in Ohio for protecting ground
water as a natural resource and as a
source of future water supply.
Xenia Business Benefits:
Businesses have not moved out of the
GRPA as earlier feared, and business
expansion has occurred. Again,
businesses have become more aware
-------
of how chemical use and handling can
be done in protective ways.'As in
Dayton, the existing zoning framework
was used rather than developing a new
layer of local government with which
business must work. Companies now
include ground water protection as a
cost of doing business in Xenia. The
biggest benefit according to the
chairman of the Xenia Economic Growth
Corporation was early and continued
involvement of business to ensure that
the future water supply could be
protected along with business interests.
Pekin. Illinois
. In 1991, the Illinois -
Environmental Protection Agency
(I EPA) produced the results of a pilot
ground water protection needs
assessment, as authorized under the
Illinois Ground Water Protection Act
(IGPA). Pekin (pop. 34,000) was
selected for this pilot initiative primarily .
because of being located in one of three
Priority Ground Water Protection
Planning Regions, established pursuant
to the IGPA. The Department of Energy
and Natural Resources (DENR)
prepared a statewide Potential for
Aquifer Recharge Map specifically for
the purpose of establishing a Regional
Ground Water Protection Planning
Program,
The Central Regional Ground
Water Protection Planning Committee,
established under the IGPA, provided a
forum to the IEPA to publicly present the
findings of the Pekin Needs Assessment
and its recommendations. To assist
Pekin in developing a ground water
protection program, the Central
Committee established the Pekin
Education Committee comprised of
citizens, business, and city leaders.
Their charge was to facilitate education
of business .and the general public and
to develop a proposed ordinance to
provide the necessary ground water
protection requirements described by
the Needs assessment and additional
measures identified by the Pekin
Committee. .
Education had two parts; First, a
primary school education program to
teach students the importance of water
supply protection. Second, a series of
workshops for residents and business in
proximity to the delineated areas to .
inform them about drinking water supply
protection measures and obtain input on
the direction of local protection efforts.
The Illinois Department of Natural
Resources's Hazardous Waste
Research and Information Center
provided the. pollution prevention
component to the workshops and
provided additional assistance to
individual businesses.
Concurrently, the Pekin
Education Committee provided the.
focus to draft the proposed ground
water protection ordinance for the City
of Pekin. After approximately one year
of work on the ordinance, it was
presented to the city .council at a public
hearing and subsequently adopted. Its
provisions include an overlay zone for
the drinking water protection areas
(building on existing zoning authorities
-------
that residents and business already
understood), information to existing
businesses on best management
practices,"and permit requirements for
new businesses and those expanding
floor space by more the 50 percent.
The overall effort, initiated in
February, 1994, was completed in July,
1995, with adoption of the ordinance.
Protection programs will continue under
the Pqkin Committee in conjunction with
the nationally recognized Ground Water..
Guardian Program of the National
Ground Water Foundation
(headquartered in Lincoln, Nebraska).
. ' Pekin Business Benefits:
Business representatives reported no
business opposition.to the Pekin
ordinance. Companies realized that a
clean, safe water supply was vital to
their business and future growth. The
President and CEO of a large ethanol
and agricultural feed processing
company said that, his company benefits
directly because it relies on large
volumes of reliable quality water. The
'director of the Chamber of Commerce
indicated that they see the "Pekin
Protected Water Supply" as a
marketing tool for the community to
expand business and attract companies
there. If the water supplier does not
have to install expensive treatment,
water costs to business are kept low.
Special Note: Pekin's water supplier is
a privately owned utility. The WHPP will
" help keep costs low since less
investment in treatment technology will
be needed, and therefore, lower
operating costs will continue.
Conclusions
Several key steps emerge from
the experience of these three cities.that
may help other communities in obtaining
business support to protect their
drinking water supplies:
1. . Involve business at the earliest
time in developing a community
drinking water protection
program; using existing business
networks, such as the local
Chamber of Commerce, has
proven effective
2. Leave all options open on any
final approach (i.e., do not
develop a range of options or
identify a particular approach) >
until all major stakeholders-
residents and business - have
been informed of protection
needs (e.g., geologic and
hydrologic conditions, potential
for contamination, areas
supplying water to wells, etc.)
3. Use various education and
information mechanisrfis to reach
all .major stakeholders early
before options are identified and
decisions on local response are
made; one reference on such
mechanisms is "Suggestions for
State and Local Ground Water
Protection Programs - Outreach
and Education Efforts to
Encourage Business and Public
Involvement in Ground Water
Protection," Urban Institute (E.
Worley, HP. Hatry.E.B. Liner),
2100 M Street, NW, Fifth Floor,
-------
. A Washington, D.C. 20037,
Telephone 202-857-8687 (April,
1992) '
4. Develop good working
relationships with local
. newspapers to keep residents
. and business aware of progress
in protecting the local drinking
water supply
5. Focus on options that encourage
and help business protect the
water supply
6. Build on existing zoning
ordinances and local
environmental protection codes
already understood by business
to minimize regulatory burden
Ail three communities'business
people identified early participation in
developing the community's
WHPA/GRPA program as a benefit to
make the local program responsive to
business heeds while protecting the
water supply. Early involvement by .
business minimized local regulatory
burden'and promoted education and
protective activities at the same time.
Business leaders saw that protecting
their communities' water supplies
benefitted the community by making it
attractive to other companies and
potentially helping their own business
grow. That is, protecting the local water
supply is an important and necessary
cost of doing business in these
communities.
Participants '
Dayton:
General Motors Corporation-Delphi
Chassis Systems Division
DAP, Inc. ''.' ''..'..'
VanDyne-Crotty, Inc.
Bur-Tex Corporation
Danis Corporation
Dayton Department of Water
Ohio Environmental Protection Agency
Xenia:
Phillips Sand and Gravel, inc.
Mayor, City of Xenia
Xenia Planning Department .
Miami Valley Regional Planning
Commission
Pekin:
Pekin Energy Company
Caterpillar Inc.
Pekin Area Chamber Of Commerce
Mayor, City of Pekin
Pekin Public Works Department
Illinois, Environmental Protection Agency
US Environmental Protection Agency
-------
------- |