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Regulatory Update: Pretreatment and User Charge Issues

Regulatory Update: Pretreatment and User Charge Issues Louis Kollias, Director of Monitoring and Research Metropolitan Water Reclamation District of Greater Chicago Industrial Water, Waste & Sewage Group Chicago, Illinois Wednesday, November 17, 2010. TOPICS • Pretreatment Update

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Regulatory Update: Pretreatment and User Charge Issues

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  1. Regulatory Update: Pretreatment and User Charge Issues Louis Kollias, Director of Monitoring and Research Metropolitan Water Reclamation District of Greater Chicago Industrial Water, Waste & Sewage Group Chicago, Illinois Wednesday, November 17, 2010

  2. TOPICS • Pretreatment Update • User Charge Update • IPCB Rulemaking Update • Contact Information 2

  3. PRETREATMENT UPDATE • Compliance Performance • Noncompliance Enforcement Charges 3

  4. SIU COMPLIANCE PERFORMANCE Compliance Year 20052006200720082009 • SIUs 447 427 407 394 373 • Exemplary 244 253 267 283 259 • SNC 39 43 39 36 30 4

  5. SIGNIFICANT NONCOMPLIANCE TRENDS Compliance Year 20052006200720082009 • No. of companies 50 43 36 36 30 • Effluent limits 12 10 10 13 6 • Reporting 44 35 25 25 23 • Total violations 56 49 36 40 34 5

  6. NONCOMPLIANCE ENFORCEMENT (NCE) CHARGE • Reflect administrative cost and sampling charge incurred by the District for enforcement actions. • Change in OM&R cost impacts NCE charges. • 2011 NCE charges* – decreased 12% from 2010 charges. Beginning January 1, 2011, the NCE charges are: Sampling Charge Administrative Charge Enforcement Level20102011*20102011* Notice of Noncompliance $809 $712 $958 $843 Cease and Desist Order (C&D) $1,867 $1,643 $958 $843 (Single-sample SNC) C&D (Chronic/Acute) or $4,725 $4,158 $958 $843 C&D (Recurring) Show Cause/Legal Action To be addressed in resolution of the enforcement action * Subject to Board Approval 6

  7. USER CHARGE UPDATE • User Charge Rates for 2011 • Appeals 7

  8. OPERATION, MAINTENANCE ANDREPLACEMENT (OM&R) COST 20092010 Total OM&R Cost $425,444,642 $374,102,175 OM&R Cost Recovered $280,538,000 $266,588,000 by User Charge 8

  9. WATER RECLAMATION PLANT LOADINGSFROM LARGE COMMERCIAL-INDUSTRIAL USERS 20082009 Volume (MG) 19,067 16,905 BOD (Klbs) 116,192 141,149 SS (Klbs) 35,574 33,313 9

  10. DETERMINATION OF TOTAL OM&R COST ADJUSTED FOR REVENUES FROM OTHER SOURCES AND FOR ADMINISTRATIVE COST For 2010 From For 2011 From % Revenue/Cost Item 2009 Budget2010 BudgetDifferenceChange Total OM&R Cost $425,444,642 $374,102,175 $(51,342,467) -12.1% Less: Net Assets Appropriable (90,572,842) (66,824,000) $23,748,842 -26.2% Revenue from Investments, Land Rentals, (20,250,000) (15,772,000) $4,478,000 -22.1% Sewer Permit Fees, Service Agreements and Electricity Generation Revenue from Personal Property Replacement Tax (25,780,000) (17,044,000) $8,736,000 -33.9% Revenue from Miscellaneous Sources of Administrative (1,624,000) (1,419,000) $205,000 -12.6% Penalties but not Including Village of Glenview Payment Village of Glenview Payment (225,000) (225,000) $0 0.0% Subtotals of Revenues from Other Sources (138,226,842) (101,284,000) $36,942,842 -26.7% Administrative Costs to be Recovered through (6,679,716) (6,229,812) ($449,904) -6.7% Charges Under the UCS Revenues from Other Sources & Administrative Costs (144,906,558) (107,513,812) $37,392,746 -25.8% Adjusted Total OM&R Cost 280,538,084 266,588,363 $(13,949,721) -5.0% Rounded Off Figure 280,538,000 266,588,000 $(13,950,000) -5.0% 10

  11. USER CHARGE RATESLarge Commercial-Industrial User Classification Percent 20102011 Change Flow $262.44 per $243.99 per -7.03 million gallons million gallons BOD $270.68 per $247.48 per -8.57 thousand thousand pounds of BOD pounds of BOD SS $200.33 per $194.18 per -3.07 thousand thousand pounds of SS pounds of SS OM&RC 0.557 0.473 -15.09 11

  12. USER CHARGE RATESTax Exempt Classification Percent 20102011Change Flow $269.25 per $250.31 per -7.03 million gallons million gallons BOD $ 277.70 per $253.89 per -8.58 thousand thousand pounds of BOD pounds of BOD SS $205.53 per $199.21 per -3.08 thousand thousand pounds of SS pounds of SS 12

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  15. NUMBER OF APPEALS REQUESTED PER YEAR YearDirector AppealsBoard Appeals 2003 23 2 2004 20 1 2005 26 1 2006 7 1 2007 21 2 2008 9 1 2009 21 0 2010* 25 4 *Through November 16, 2010 15

  16. CHICAGO AREA WATERWAY SYSTEM USE ATTAINABILITY ANALYSIS RULEMAKING UPDATE (IPCB R08-9) • Rulemaking proposes new recreational and aquatic life uses for CAWS and Lower Des Plaines River. • Rulemaking proposes new dissolved oxygen (DO) and temperature water quality standards to protect proposed aquatic life uses (20-year total present worth compliance cost for DO = $657 million). • Rulemaking proposes effluent fecal coliform limits that would require disinfection at the North Side, Stickney and Calumet WRPs (20-year total present worth compliance cost = $920 million for UV). • IPCB has moved to first notice of rulemaking on Recreational Use designations (Subdocket A). 16

  17. CHICAGO AREA WATERWAY SYSTEM USE ATTAINABILITY ANALYSIS RULEMAKING UPDATE (IPCB R08-9) (Continued) • District is currently presenting results of CAWS epidemiological study in Subdocket B – Effluent Standards to protect Recreational Uses. Incidence of illness among incidental contact recreators (fishing, paddling, motor boating) was as low in the CAWS as in General Use waters in northeastern Illinois including Lake Michigan. No apparent correlation of illness with water quality or level of exposure. • Subdocket B currently scheduled to close December 31, 2010, but IPCB has requested more information from the District to assess reasonableness of IEPA effluent disinfection proposal. 17

  18. Key Personnel • Louis Kollias, P.E., BCEE, • Director • Monitoring and Research Department •   • Thomas Granato, Ph.D. • Deputy Director • Monitoring and Research Department • Industrial Waste Division/Administration • Industrial Waste Division • Enforcement Section - Mathew Joseph, P.E. • User Charge and Technical Services Section - Patricia Kalinowski • Field Services Section, North Area - Gregory Yarnik • Field Services Section, South Area - Robert Renaud 18

  19. CONTACT INFORMATION • Enforcement/Pretreatment Questions (312) 751-3044 • User Charge Questions (312) 751-3000 • Website www.mwrd.org 19

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