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

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                                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.

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                               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

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              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.

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      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

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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

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 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

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 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

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 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,

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.   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

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