Voluntary Action Program Updates Certified Professional Coffee February 24, 2016

WORKLOAD AND NFA LETTER UPDATE

VAP Projects Workload

Status of NFA Letter Reviews Since CP Training 9 NFA Letters 17 CNS Issued 12 “old” rules 5 “new” rules 38 Pending NFA Letters 11 “old” rules 27 “new” rules

CNS Amendments Allow adequate time for CNS amendments – Plan on 60 to 90 days – Technical and legal documents must be drafted – Signoff includes Director’s office Notify agency of your plans early – TA can help facilitate timely amendments – Communicate deadlines

VAP RULE CHANGES: CORRECTING ERRORS & OMISSIONS

Activity Since Last Update Completed draft rule language – November 2015 Interested party review of draft rule language – Began early December – Business Impact Analysis and Common Sense Initiative Office Review, finalized after conclusion of IP review – Competed January 4, 2016

Next Steps File with JCARR: Early March 2015 JCARR jurisdiction lasts 65 days – Public Hearing 31 to 40 days after filing date – JCARR Hearing at end of jurisdiction period Finalize rules & set effective date – Final file rules with JCARR – Rules effective May 2016

SELECTION OF NFA LETTERS FOR AUDIT

Audit Selection Process Annual audit goal per the statute – 25% with a remedy – 25% without a remedy 2014 Rule Change – Random Audit Pool (excludes MOA-Track) – Discretionary Audit Pool

Audit Selection Process Program Goal – Equal split between random and discretionary audits Multi-step nomination process for discretionary audits balanced with random audit selections Nominations begin with reviewers in district Pre-determined selection criteria

Audit Selection Process Step 1 – Nominations for discretionary audit – Poll districts to establish list for discretionary audits – Based on pre-determined selection criteria – Based on number of NFA letters received – Due by end of February

Based on Number of NFAs Received Range of NFA Letters ReceivedSelections 1 to 51 6 to to 153 > 154  District nominations based on number of NFA letters received, i.e., districts with more NFA letters receive more selections

Selection Criteria Criteria from Rule [OAC (C)] – Suspicion of fraud – CP or CL license revocation – New facts warrant new look – Property-specific risk assessment – Remedy includes an institutional control or an engineering control – Other considerations

Selection Criteria (Continued) Other Considerations – Migration of COCs to sensitive receptors – Quality of NFA letter to clearly summarize voluntary action (significant INOD/FNOD comments) – Non-traditional approaches to assessment and/or remedy decisions outside of what is standard and customary practice – CP with limited number of NFA letters or is newly certified

Example for 2015 District# of NFAs received# of Selections CDO41 NEDO133 NWDO82 SEDO00 SWDO82 Total338

Audit Selection Process Step 2 – Random audit list (early March) Step 3 – Compare lists (early March) – All matches retained for audit – Unmatched NFAs from random list may be replaced (see Step 4) with unmatched NFAs from discretionary list

Compare Lists: Example Random List NFA Letter ABC NFA Letter DEF NFA Letter GHI NFA Letter JKL NFA Letter MNO NFA Letter PQR NFA Letter STU NFA Letter XYZ Discretionary List NFA Letter ABC NFA Letter DEF NFA Letter 101 NFA Letter 202 NFA Letter 303 NFA Letter 404 NFA Letter 505 NFA Letter 606 Matched Unmatched  Management has option to swap out up to half of unmatched NFA letters, i.e., up to 3 NFAs in this example

Audit Selection Process Step 4 – Finalize audit list – Swap out up to half of unmatched NFAs from random list with those from discretionary list – Late March (monthly managers meeting) Step 5 - Publish audit list (early April) – Send to VAP interested party list

Questions?