JvEPA        State  Innovation  Grant  Program:  Indiana
                          Implementing an ERP to Reach Measurable Environmental Results in the
                          Compliance of Indiana's Auto Salvage Sector (2005 Competition)
In 2002 EPA introduced the State Innovation Grant Program to support
efforts led by state environmental agencies to test innovative approaches for
achieving better environmental results and improved efficiency in permitting
programs. Between 2002 and 2007, the State Innovation Grant program
competition awarded over six million dollars to support 35 state projects that
test permitting innovation for a variety of regulated entities including several
small business sectors. A summary of the awards by year appears in the
table below.
   State Innovation Grant Program Statistics, 2002-2007
I Competition   Proposals  Proposals
    Year      Submitted   Selected
  2002/2003  I     9Q     i    fi
Total Program
 Funding ($)
  $618,000
                                       $1.425 Million
                                       $1.479 Million
 Cumulative
                                       $1.243 Million
                                       $1.611 Million
                                       $6.376 Million
"Innovation in Permitting" has been the theme of the State Innovation Grant
competition since its inception. In the last three competition cycles states
received awards for projects in the following three categories:
•  The Environmental Results Program (ERP) is an innovative
  approach to improving environmental performance based on a system
  of the interlocking tools of compliance assistance, self-certification
  (sometimes, where permissible, in lieu of permitting), and
  statistically-based measurement to gauge the performance of an entire
  business sector. The program utilizes a multimedia approach to
  encourage small sources to achieve environmental compliance and
  pollution prevention. (See: http://www.epa.gov/permits/erp/)
•  Environmental Management System (EMS) is a system involving a
  continual cycle of planning, implementing, reviewing and improving the
  processes and actions that an organization undertakes to meet its
  business and environmental goals. EMSs provide organizations of all
  types with a structured system and approach for managing environmental
  and regulatory responsibilities to improve overall environmental
  performance and stewardship. (See: www.epa.gov/ems/info/index.htm)
•  Performance Track is a partnership that recognizes top
  environmental performance among participating US facilities of all types,
  sizes, and complexity, both public and private.
  (See: http://www.epa.gov/performancetrack/)
NCEI has provided awards also for projects testing watershed-based
permitting, and for permit process streamlining in past competitions. For
more information on the history of the programs, including information on
solicitations, state proposals, and project awards, please see the EPA State
     tion Grants website at httD://www.eDa.aov/innovation/state
Project Background:

 Historically, the Indiana Department of Environmental
 Management (IDEM) has had difficulty ensuring
 environmental compliance by the auto salvage sector.
 Investigations conducted at these business sites resulted
 solely from citizen complaints rather than through regular
 compliance assessments. Significantly, IDEM's responses
 to complaints contained no  uniform standards or
 guidelines for addressing cases involvingthe auto salvage
 sector.  These complaint-driven investigations often
 revealed serious violations with significant impacts to the
 air, land, and water. In the past, IDEM also lacked an
 organized system for estimating the extent of unobserved
 violations.

Project Description

 Using resources from a US EPA State Innovation Grant,
 IDEM is adapting the Environmental Results Program
 (ERP) model, first demonstrated by the Massachusetts
 Department of Environmental  Protection for the dry
 cleaning sector and subsquently modified for the Auto
 Salvage  Sector by the State of Rhode Island, to promote
 measurable improvement in compliance in the auto
 salvage  sector.  IDEM will use the ERP approach to
 assist the  Auto Salvage Recyclers (ASR)  sector in
 understanding and complying with program regulations
 and going beyond compliance to prevent pollution and
 enhance protection of public health and die environment.

 IDEM  will implement the ERP program with the
 following activities:
 Phase  1: Initial compliance  inspection  and
 information-sharing
 IDEM will identify and meet with external stakeholders,
 including ASR and the Bureau of Motor Vehicles (BMV),
 to explain, coordinate, collaborate, and plan for project
 implementation. In  addition to those meetings, IDEM
 will conduct baseline inspections of randomly selected
                                                NCEI
                                                NATIONAL CENTER  FOR
                                                ENVIRONMENTAL INNOVATION

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  facilities using a facility listing database provided by the
  BMV.
  Phase 2: Compliance assistance and information
  development
  The next phase of die project includes outreach efforts,
  self-certifications, and compliance assistance, including
  guidance manuals, a web site, workshops, confidential
  phone assistance, and oil-site compliance assistance.
  IDEM will encourage the use of Best Management
  Practices (BMPs), and other effective business methods
  to reduce pollution and achieve improved compliance.
  This phase will also include  utilization of a previously
  designed manual for the auto salvage sector. This phase
  will last approximately two years.
  Phase 3: Second round of enforcement inspections
  IDEM will complete this phase in the third quarter of
  2009. After facilities have an opportunity to participate
  in a self-certification program, IDEM will again establish
  a  random inspection process  from the same BMV
  database  described  above. IDEM will prepare  the
  appropriate multi-media enforcement response and track
  the data from these inspections.
  Phase 4: Analysis of the data and the development
  of a report documenting results
  IDEM will  analyze and  compare baseline, self-
  certification and post-certification data to understand
  changes in facility performance and overall outcomes
  of interest. Compliance results from baseline inspections
  will be compared to compliance results from this second
  round of random inspections.  Improved performance
  will be determined through compliance  rates, pollution
  prevented, and the company's incorporation of BMPs
  in salvage-yard practices.   Any inherent biases will be
  recorded and evaluated.
  In addition, the information developed and  gathered
  during this project will have potential transferability to
  other sectors.
                                                          Connection to EPA's Goals

                                                           Indiana's Auto Salvage Sector ERP Program will address
                                                           EPA's strategic goals by (Goal 2) protecting water sources
                                                           through cleanup, remediation,  and compliance with
                                                           standards, (Goal 3) increasing the number of sites cleaning
                                                           up historical soil contamination, and (Goal 4) improving
                                                           relations with community members through reduction
                                                           in groundwater and soil pollution and increased dialogue
                                                           between community residents  and facility owners/
                                                           operators. The  program also supports EPA's strategic
                                                           goal (Goal 5)  of promoting overall environmental
                                                           innovation and  stewardship.


                                                           Project Contacts:

                                                           Rosemary Cantwell
                                                           Section Chief
                                                           Office of Land Quality
                                                           100 North Senate Avenue (MC: 66-20-2)
                                                           Indianapolis, IN  46204-2251         (317) 308-
                                                           3003; (317) 308-3063-fax
                                                           rcantwel@idem. IN.gov
                                                           Marilou Martin
                                                           US EPA Region 5
                                                           77 WJackson Boulevard
                                                           Chicago, IL 60604
                                                           (312) 353-9660; (312) 353-5374-fax
                                                           martin.marilou@epa.gov
                                                           Scott Bowles
                                                           U.S. Environmental Protection Agency
                                                           Washington, DC 20460; MC (18071)
                                                           (202) 566-2208; (202) 566-2211-fax
                                                           bowles.scott@epa.gov
                                                           Program Contact:
      grant-funded project will last three years until
  September 2009.
This
Sherri Walker
State Innovation Grant Program
U.S. Environmental Protection Agency
Washington, DC 20460 (MCI 8071)
(202)-566-2186; FAX (202) 566-2220
walker.sherri@epa.gov
United States
Environmental Protection
Agency
                                            Office of Policy,
                                            Economics and Innovation
                                            (1807T)
                                        October 2007
                                    EPA-100-F-07-035

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