State Innovation Grant Program: Arizona
Developing an Automated Permitting Process (2002 Competition)
ie innovation urani rrogram 10 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. Asummary of the awards by year
appears in the table below.
State Innovation Grant Program Statistics, 2002-2007
Competition Proposals Proposals Total Program
Year Submitted Selected Funding ($)
2002/2003
$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
Innovation Grants website at httD://www.eDa.aov/innovation/statear '
Project Background:
In early 2003, the Arizona Department of
Environmental Quality (AZ DEQ) was facing a
significant fiscal problem as it worked to undertake
additional responsibilities in its stormwater permitting
program. Prior to 2003, AZ DEQ typically processed
approximately 2,000 National Pollution Discharge
Elimination System (NPDES) permit applications per
year. However, as part of the Federal Clean Water
Act Phase II Storm Water Regulations, an EPA rule
change in March 2003 lowered the threshold amount
of land development construction acreage requiring
an NPDES permit from five acres to one acre. AZ
DEQ estimated that due to this change it would have
to address 3,000 to 5,000 construction permit
applications - roughly doubling the amount of permit
work each year - with no increase in staffing levels.
Under AZ DEQ's Stormwater General Permit program
for the construction sector, applicants eligible for a
general permit needed only to file a Notice of Intent
to Discharge (NOI) 48 hours before construction
began. However, the general permit was processed
by hand, which was time and labor intensive for AZ
DEQ staff. Arizona needed to find a way to get
ahead of the curve, before being overwhelmed by
the expected huge increases in the number of NOIs.
AZ DEQ turned to the State Innovation Grant Program
to help fund its transition from a traditional paper-
based permit system to an on-line automated permit
processing system.
In 2002, AZ DEQ received a State Innovation Grant
for the development of a web-based stormwater
permit application system under the NPDES. The
system was designed to streamline the permit
application process through information systems
automation.
NCE
NATIONAL CENTER FOR
ENVIRONMENTAL INNOVATION
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Project Description
AZ DEQ began its automated stormwater permit pilot
project with the hope of saving time and money for
applicants, while creating a more simplified permitting
process for the state. The goals of the project, called
"Smart NOI,"were to:
• Develop an internet portal to help publicize the
general permit and allow potential dischargers to file
their NOIs online; and
• Streamline the processing of NOIs through the use
of an automated, Geographic Information System
(GlS)-based review.
Arum Department of Knvironmcrilal Quality - Sman NOI -1 laae
I Services Home
Smart HOI
Notice of Termination
Revisions to NOI/Wa.vcr
Interactive Aniorta Map
Help
Survey
Return to ADEQ
Ari20na 9 Your Service
This web-based system is
designed to be user-
friendly for applicants, while
allowing AZ DEQ to more
easily screen applications
through an automated
process to determine
which projects require site-
specific permits or other
detailed review by AZ DEQ
staff.
When applicants complete
initial screening questions,
project data are uploaded
to a secure AZ DEQ site.
There, automated validation
programs evaluate which projects require a full permit
application by verifying the application completeness
and data quality and using CIS to determine if a
proposed construction site impinges on an
environmentally sensitive area. Approved applications
are moved to an AZ DEQ permitting database, and
flagged applications are sent on for further review by
the state's permitting staff. This automated approach
allows AZ DEQ staff to focus their efforts on
construction sites that require greater oversight.
Applicants also benefit from Smart NOI. After entering
project information, they receive an instant response
from the Smart NOI system based on the automated
screening indicating if a more detailed review (through
a permit application) is necessary. If not, developers
Page lofl
.
can complete the basic NOI online immediately and
start construction after 48 hours. In cases where a site-
specific permit is required, the program generates the
necessary permit application forms for the applicant to
print, complete, and mail to AZ DEQ. This process is a
vast improvement over the previous paper application
process, where applicants waited several weeks for a
response before they could complete the necessary
permit application paperwork.
Results
AZ DEQ's Smart NOI system went live in May 2003,
and has met many of its program goals including
reduced permit processing time, increased program
participation, and
improved response time
to customers. With Smart
NOI, AZ DEQ reduced its
total processing by 2-5
days for basic NOIs.
Also, customers who
had to wait 5-7 days
under the old system to
hear if their permit
required additional
follow-up are now
notified immediately.
Arizona estimates that
the new system helped
increase its NOI
processing rate from 25
per day under the old
system to several hundred per day with Smart NOI. AZ
DEQ reached its original goal of 50 percent
participation by NOI applicants in 2006, two years
before its target date.
AZ DEQ continues to improve the Smart NOI system,
with features such as electronic signatures that allows
applicants to submit their permit applications
electronically, rather than having to print out and mail in
the permit application. The state also updated the CIS
functions of Smart NOI with new mapping tools to more
accurately screen sites for proximity to environmentally
sensitive areas. The state hopes such upgrades will
raise participation rates to 80 percent by 2008.
Thanks to positive reviews from stakeholders, the state
of Arizona decided to completely fund ongoing
Welcome to the Smart NOI program Tins site n designed 10 provide you with • quick and
Notice Of intend < NQt| tor ptrrnil covtrage. apply tor a warrtf or fee a Now* of Tetmuiatio
terminal* coverage under the AZPDE& ComIructw Genenl Permit. A2G2W3-Q01
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• Electronically sign your Smart -SO: To create an a-agnaflLife account, 00:0
From me left column, select Crea:& n MyS*cureA2 Acccunt Enltjf your email a Vi
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operations of the Smart NOI web portal. Interest in
the program's success is growing in other states
such as Minnesota and New Mexico, each
considering replicating AZ DEQ's Smart NOI system
for their own stormwater program needs.
Connection to EPA's Goals
The Smart NOI program directly supports EPA's
Strategic Goal #5, focused on compliance and
environmental stewardship, by promoting an
innovative approach to improve environmental
performance through pollution prevention measures.
The project also supports EPA's Strategic Goal #2,
to promote clean and safe water through watershed
protection, as well as EPA's Cross-Goal Strategy of
promoting innovation and collaboration with states.
Program Contact:
Sherri Walker
State Innovation Grant Program
U.S. Environmental Protection Agency
Washington, DC 20460 (MC1807T)
(202)-566-2186; FAX (202) 566-2220
walker.sherri@epa.gov
Project Contacts:
For more specific information on the Arizona
State Innovation Grant, please contact one of
the individuals below:
Wayne Hood
Arizona Department of Environmental Quality
Phoenix, AZ
602.771.4427
Hood.Wayne@ev.state.az.us
John linger
U.S. Environmental Protection Agency- Region 9
San Francisco, CA
415.972.3518
tinger.john@epa.gov
Gerald Filbin
U.S. Environmental Protection Agency
National Center for Environmental Innovation
Washington, DC
202.566.2182
filbin.gerald@epa.gov
Smart NOI Website
http://az.gov/webapp/noi/main.do
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
February 2008
EPA-100-F-08-013
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