IN THE MATTER OF:
PROPOSED AMENDMENTS TO:
REGULATION PETROLEUM LEAKING
UNDERGROUND STORAGE TANKS
35 ILL. ADM. CODE 732
IN THE MATTER OF:
PROPOSED AMENDMENTS TO:
REGULATION PETROLEUM LEAKING
UNDERGROUND STORAGE TANKS
35
ILL. ADM. CODE 734
RECE~vED
CLERK’S OFFICE
To:
Dorothy M. Gunn, Clerk
Illinois Pollution Control Board
James R. Thompson Center
100W. Randolph, Suite 11-500
Chicago, Illinois 60601
Ms. Marie E. Tipsord
Illinois Pollution Control Board
James R. Thompson Center
100 West Randolph, Suite 11-500
Chicago, IL 60601
NOTICE OF FILING
PLEASE TAKE NOTICE that on June 18, 2004, via UPS Next Day Air, I filed with the
Clerk of the Illinois Pollution Control Board, via f and an original and nine (9) copies via U.S.
Mail the PRE-FILED TESTIMONY OF BILL F ISCHLI, EXECUT B DIRECTOR OF THE
ILLINOIS PETROLEUM MARKETER’S 7~fwhich~re,uPonYo,,77
CLAIRE A. MANNING
Posegate & Denes, P.C.
111 N. Sixth Street, Suite 200
Springfield, Illinois 62701
(217) 522-6152
(217) 522-6184 (FAX)
claire~posegate-denes.com
Claire A. Manning,. Attorney
BEFORE THE ILLINOIS POLLUTION CONTROL
BOARD
)
)
)
)
)
)
JUN 22 2004
STATE OF ILUNOIS
Pollution Control Board
R04-22
(Rulemaking
—
UST)
R04-23
(Rulemaking
—
UST)
Consolidated
)
)
)
)
)
)
Printed on Recycled l’aper in Accordance with 35111. Mm. Code 101.202 and lOt, 302(g)
PROOF OF SERVICE
The undersigned, being duly sworn, states that a true and correct copy ofthe foregoing
PRE-FILED TESTIMONY OF BILL FLEISCHLI, EXECUTIVE DIRECTOR OF THE
ILLiNOIS PETROLEUM MARKETER’S with the CLERK and the HEARING OFFICER ofthe
ILLINOIS POLLUTION CONTROL BOARD, was served on the individuals as listed below, by
mailing via the United States postal service, Springfield, Illinois on June 21, 2004:
Gina Roccaforte
Kyle Rominger
IEPA
1021 North Grand Ave. East
P.O. Box 19276
Springfield, IL 62794
Thomas G. Safley
Hodge, Dwyer, Zeman
3150 Roland Avenue
P.O. Box 5776
Springfield, IL 62705
William G. Dickett
Sidley, Austin, Brown & Wood
Bank One Plaza
10 South Dearborn Street
Chicago, IL 60603
Barbara Magel
Karaganis & White, Ltd.
414 North Orleans St., Suite 810
Chicago, IL 60610
Bill Fleischli
Illinois Petroleum Marketers Association
112 West Cook Street
Springfield, IL 62704
Joe Kelly, PE
United Science Industries, Inc.
P.O. Box 360
6295 East Illinois Highway 15
Woodlawn, IL 62898-0360
2
Robert A. Messina, General Counsel
Illinois Environmental Regulatory Group
3150 Roland Avenue
Springfield, IL 62703
Kenneth James
Carison Environmental, Inc.
65
E. Wacker Place, Suite 1500
Chicago, IL 60601
Lisa Frede
Chemical Industry Council of IL
2250 B. Devon Ave., Suite 239
DesPlaines, IL 60018
Carolyn S. Hesse
Barnes & Thornburg
1 North Wacker Drive, Suite 4400
Chicago, IL 60606
Michael W. Rapps
Rapps Engineering & Applied Science
821 S. Durkin Drive
P.O. Box 7349
Springfield, IL 6279107349
Joel J. Stemstein
Office ofthe Attorney General
Environmental Bureau
188 West Randolph,
20th
Floor
Chicago, IL 60601
Tom Herlacher
Herlacher Angleton Associates, LLC
8731 Bluff Road
Waterloo, IL 62298
Printed on Recycled Paper in Accordance with 35 Ill. Adm. Code 101.202 and lOt. 302(g)
Buffalo Grove, IL 60089
Jennifer Goodman
Herlacher Angleton Associates
522 Belle Street
Alton, IL 62002
James E. Huff, PE
Huff & Huff, Inc.
512 W. Burlington Ave., Suite 100
LaGrange, IL 60525
Scott Anderson
Black & Veatch
101 N. Wacker Dr., Suite 1100
Chicago, IL 60606
Melanie LoPiccolo, Office Manager
Marlin Environmental, Inc.
1000 West Spring St.
South Elgin, IL 60177
Brian Porter
Terracon
870
40th
Avenue
Bettendorf, IA 52722
Joseph W. Truesdale, PE
CSD Environmental Services
2220 Yale Blvd.
Springfield, IL 62703
Ron Dye, President
CORE Geological Services, Inc.
2621 Monetga, Suite C
Springfield, IL 62704
Monte Nienkerk
Clayton Group Services, Inc.
3140 Finley Road
Downers Grove, IL 60515
Kurt Stepping
PDC Laboratories
2231 W. Altorfer Drive
Peoria, IL 61615
Thomas M. Guist, PB
Atwell-Hicks, Inc.
940
B. Diehl Road, Suite 100
Naperville, IL 60563
Jonathan Furr, General Counsel
Illinois Dept. ofNatural Resources
One Natural Resources Way
Springfield, IL 62702
Joe Kelly, VP Engineering
EcoDigital Development LLC
P.O. Box 360
6295 East Illinois Highway 15
Woodlawn, IL 62898
Glen Lee, Manager
Wendler Engineering Services, Inc.
1770 West State St.
Sycamore, IL 60178
A.J. Pavlick
Great Lakes Analytical
1380 Busch Parkway
JeffWienhoff
CW3M Company, Inc.
701 S. Grand Ave. West
Springfield, IL 62704
Jarrett Thomas, V.P.
Suburban Laboratories, Inc.
4140 Litt Drive
Hillside, IL 60162
Dan King
United Science Industries, Inc.
6295 East Illinois Highway 15
Woodlawn, IL 62898
Richard Andros, PE
Environmental Consulting &
Engineering, Inc.
551 Roosevelt Rd., #309
3
Printed on Recycled Paper in Accordance with 35 III. Mm.
Code 1(11.202 and tOt. 302(g)
Glenn Ellyn, IL 60137
Terrence W. Dixon
MACTEC Engineering & Consulting, Inc.
8901 N. Industrial Road
Peoria, IL 61615
Steve Gobelman
Illinois Dept. ofTransportation
2300 Dirksen Parkway
Springfield, IL 62764
Collin W. Gray
SEECO Environmental Services, Inc.
7350 Duvon Drive
Tinley Park, IL 60477
George Moncek
United Environmental Consultants
119 B. Palatine Road, Suite 101
Palatine, IL 60067
David Rieser
McGuire Woods LLP
77 W. Wacker, Suite 4400
Chicago, IL 60601
Tina Archer
Greensfelder, Hemker & Gale
10 S. Broadway, Suite 2000
St. Louis, MO 63104
CLAIRE A. MANNING
Ill N. Sixth Street, Suite 200
Springfield, Illinois 62701
(217) 522-6152
(217) 522-6184 (FAX)
claire@posegate-denes.com
4
Em Curley
Midwest Engineering Services, Inc.
4243 W.
166th ~
Oak Forest, IL 60452
Ken Miller, Regional Manager
American Environmental Corp.
3700 W. Grand Avenue, Suite A
Springfield, IL 62707
Russ Goodiel
Applied Environmental Solutions, Inc.
P.O. Box 1225
Centralia, IL 62801
Daniel Goodwin
Secor International, Inc.
400 Bruns Lane
Springfield, IL 62702
Eric Minder
Caterpillar, Inc.
100 N.E. Adams St.
Peoria, IL 61629
Daniel Caplice
K-~
600
000
Printed on Recycled Paper in Accordance with 35 Ill. Adm. Code 101.202 and 101. 302(g)
RECE~VED
CLERK’S OFFICE
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
JUN 222004
IN
THE MATTER OF:
)
STATE OF ILLINOIS
PROPOSED AMENDMENTS TO:
)
R04-22
Pollution Control Board
REGULATION PETROLEUM LEAKING
)
(Rulemaking
-
UST)
UNDERGROUND STORAGE TANKS
)
35 ILL. ADM. CODE 732
)
)
IN
THE MATTER OF:
)
)
PROPOSED AMENDMENTS TO:
)
R04-23
REGULATION PETROLEUM LEAKING
)
(Rulemaking
—
UST)
UNDERGROUND STORAGE TANKS
)
Consolidated
35 ILL. ADM. CODE 734
)
TESTIMONY OF BILL FLEISCHLI, EXECUTIVE DIRECTOR. ILLINOIS
PETROLEUM MARKETERS
Chairman Novak and Members of the Illinois Pollution Control Board. My name
is Bill Fleischli. I am the Executive Director ofthe Illinois Petroleum Marketers, known
as PMA. IIPMA has been in existence since 1921, representing the interests ofowners
and operators of gasoline retail stores, basically gasoline and convenience stores. I have
been asked by PIPE to come and give my testimony at this Board hearing on EPA’s
proposed Underground Storage Tank Rules, and I am happy to do so.
As you know, IIPMA has had a large role in the creation and implementation of
the underground storage tank fund. The fund was established with the enactment of
Public Act 86-25 in July of 1989. The Act provided that a tax of$.003 per gallon on the
sale ofcertain petroleum products would be collected (largely, from ourmembership and
other petroleum retail distributors), deposited in the Department ofRevenue and
distributed. Later, in
1995,
an environmental impact fee ($60 per tank truck delivered at
retail) was assessed, for a total revenue stream into the fund on an average ofover 6
million per month, or about $70,000,000 a year. Whatever money isn’t used in servicing
the bond, or paying for the state administrative costs of the program, is supposed to be
used to remediate properties contaminated by leaking underground storage tanks.
Over the course ofthe last several years, the fund grew at a rate greater than the
claims against it were reviewed and paid. Thus, while the fund never had a “surplus”
because all dollars were committed to future and current reimbursement projects, in the
last fiscal year alone, the administration removed at least $25,000.000 from the fund for
general revenue purposes, apparently with no expectation of putting it back.
Printed on
Recycled Paper in Accordance with 35 III. Adm. Code 01.202 and 101.
302(g)
IPMA has continually been a proponent ofprotecting the fund for the purposes
intended. However, the IEPA cannot simply expect to realize those lost dollars by
ratcheting down the costs of legitimate businesses doing remediation for reasonable rates.
There are several points IPMA would like the Board to consider in this
rulemaking prior to adopting the rates and pricing structure advanced by the IEPA.
PIPE has legitimate concerns that the Board should address. These companies
provide needed services to IIPMA. The companies who are part ofPIPE are companies I
believe to be knowledgeable, professional and expert at the job ofremediating LUST
sites. They are companies I recommend to my members. I encouraged these companies
to organize as PIPE and to present their concerns to the Board regarding the EPA’s
proposed rules because it’s important that they be able to do the job my members hire
them to do. On behalf of my members, I sat in the meetings that PIPE had with the EPA.
The pricing and rate structure that the Board sets up in these rules has to be fairly
established. While no one is opposed to rates and payment structures, those rates need to
reflect industry standards and the going rate for doing business in Illinois. They cannot
be based upon someone at EPA picking random files of old LUST sites. Both the
Illinois Department ofTransportation and the Capital Development Board are state
agencies that set construction and building rates as part oftheir agency function. The
Board ought to look to those agencies to see how those agencies develop fair rate
structures.
The review and reimbursement process needs to be quicker and easier. One ofthe
major reasons money was taken from the fund was because it had built up over time
because there was a delay in reviews and payments. Delays add extra costs, because
financing becomes necessary. The EPA says that these rules are intended to streamline
the process and that’s a good thing but, given the controversywith these rules, I don’t see
that happening, and my members are caught in the middle. They are the liable parties,
but the PIPE members are the companies they hire to certify that the remediation is done
in an environmentally protective manner. When the companies and the EPA disagree on
the amount of work that needs to be done, or the costs associated with the project, my
members are caught. Should they appeal the EPA’s decision? Who should pay the costs
of such an appeal?
We proposed that the EPA consider an external review process, much like the one
in place at IDOT
—
so that there’s someone independent looking at costs. Instead, I
understand that the EPA compared this rule to an HMO. A streamlined process isn’t
going to come out ofa rule that takes the same type of approach to cost containment
that’s occurring in the medical profession. We have an industry here that does a
legitimate job, solves a legitimate problem and needs to be reimbursed fairly for it. Many
of these companies have outstanding liabilities and are in the middle ofhuge projects.
The fund was established to remediate these sites, and the companies who perform the
work need to be fairly compensated for it. I don’t believe that the EPA has shown that
this rule will do that.
2
Priiicd on Recycled l’aper in Accordance with 35 III. Adm. Code It) 1.2(12 and 101. 302(g)
