1. 1 Compliance Index – Environmental Compliance/Performance Measure Poor AverageHigh 0100 National Environmental Partnership Summit, Baltimore, Maryland May 20th, 2008

2. 2 Compliance Index – Overview Present Ontario’s experience in conducting an inspection & enforcement program Discuss compliance performance indicator Present methodology and actual results Benefits of Compliance Index

3. 3 Some Details…. Ontario is a province just over 1 million square kilometres (400,000 sq mi) Ontario could cover as many as 13 states

4. 4 Sector Compliance Branch…. Conducts province-wide inspections of industrial sectors, to ensure that they are in compliance with Ontario’s environmental laws, in order to reduce the threat to human health and environment Undertakes education and outreach initiatives to help promote compliance Publicly reports compliance performance and trends to encourage proactive compliance Committed to continuous improvement in compliance programs

5. 5 Risk Based Approach….. SCB employs a risk assessment method to assess the relative environmental risks of industrial and commercial sectors for the purposes of prioritizing planned inspections Conducts a proximity analysis to rank the facilities in a specific industrial sector according to distance to their sensitive receptors 120 m 65 m

6. 6 Select High-Risk Sectors Conduct Risk Assessment Sector Planning Provincial Inspection Sweep Enforcement Action Undertake Sector Diagnostics Measure Compliance Levels Public Reporting Sector Outreach Internal *Compliance Assistance *Gaps / Issues Compliance Improvement Activity SCB Business Model…..

7. 7 Why Compliance Index….. Provide Ministry with an outcome based performance measurement for facility and sector compliance levels Provide a real-time compliance assessment methodology Facilitate effective decision-making when targeting sectors and facilities Provide an effective tool to evaluate results and provide comparisons

8. 8 Compliance Index….. The Compliance Index is a measure of relative compliance levels, based on types of legislative violations (e.g., exceedance of a regulatory limit, non-compliance with permit or CofA conditions, etc.) CI Formula:  Vw +  Cw Vw = weighted legislative violation Cw = weighted CofA conditions violation

9. 9 Steps in CI Development….. Identify the number of potential legislative violations that may result from an inspection Categorize violations into four contravention categories (e.g, reporting and record keeping) Assign weights to each contravention category that reflect level of environmental significance Provide weights to each violation Vw Repeat steps for C of A condition violations Cw Determine CI value (by Company, by media, by program)

10. 10 CI score represents a baseline numerical value for a facility environmental compliance levels Higher the score, the lower the compliance with environmental legislation Facility Score…..

11. 11 Facility Score within Haz. Waste Sector….. Company NamePass/FailVwCwCI Score __________A Fail33235 __________B Fail42731 __________C Fail72330 __________D Fail22830 __________E Fail131427 __________F Fail81927 __________G Fail52126 __________H Fail026 __________I Fail61824 __________J Fail91423 __________K Fail41923 __________L Fail021 __________M Fail31720 __________N Fail9918 __________O Fail41418

12. 12 CI score provided relative compliance level of facilities within different media inspections. Higher the score, the lower the compliance with environmental legislation Company NameMedia Pass/ FailVwCwCI A……. WasteFail 020 B…… WaterFail41418 C…… WastePass11516 D…… AirFail8715 E…… AirFail4711 F…… WasteFail4711 G…… WasteFail4711 H…… AirFail4711 I…….. WaterFail4711 J…… AirFail4711 K…… WasteFail6410 L…… AirFail279 M…… AirFail448 N…… WasteFail178 O…… WaterPass 088 P…… WasteFail8 08 Q…… WasteFail448 Score for All Media inspections…..

13. 13  The CI score provided relative compliance level of facilities within air media inspections. Company NameMedia Pass/ FailVwCwCI A AirFail015 B AirFail4711 C AirFail088 D AirFail077 E AirFail7 0 7 F AirFail077 G AirFail077 H AirFail077 I AirPass077 J AirFail077 K AirFail606 L AirPass606 M AirPass606 N AirFail606 O AirFail606 P AirFail202 q AirFail202 Score for Air Media inspections…..

14. 14 SECTORInspections Total CI Score Sector Avg CI MaxCI MinCI SDCI Var Hazardous Waste4058914.733509.6993.90 Auto wrecking/recycling484779.943607.3954.66 Primary Metals413699.002706.5943.45 Used Tire Sites36782.17703.2610.60 Score for Sector…..

15. 15 TIMMINS Fiscal 2004/05 Fiscal 2005/06 (till Aug 06) Company NameProgramModule TypePass/FailCIPass/FailCI Compliance Performance A Waste - Hazardous & Liquid industrialSubject Waste GeneratorFail7 7 No Change B Waste - Solid/Non-hazardous Solid Non-Hazardous Waste Disposal SiteFail15Fail15 No change C Waste - Hazardous & Liquid industrialSubject Waste GeneratorPass0 0 No change D AirAir FacilityFail4Pass2 - 2 E AirAir FacilityFail4 8 + 4 F Waste - Solid/Non-hazardousClosed Waste Disposal SiteFail7Pass6 - 3 G AirAir FacilityFail10Pass0 Total Compliance H Waste - Solid/Non-hazardous Solid Non-Hazardous Waste Disposal SiteFail2Pass0 Total Compliance I Waste - Solid/Non-hazardous Solid Non-Hazardous Waste Disposal SiteFail4 10 + 6 j Waste - Hazardous & Liquid industrialSubject Waste GeneratorFail5Pass0 Total Compliance Change in numerical value indicates compliance performance status: (-)improvement /(+)decline Comparison of CI Score on re-inspection…..

16. 16 All Sector inspectors are required to enter violations information in CAMEO for all inspections that have been conducted. Officer identifies non- compliance (Y/N) Score is calculated in the background How to in System (Cameo)…..

17. 17 Provides performance measurement for facility, sector and media/program compliance levels Increases the objectivity in compliance ratings that will help avoid different facilities being ranked at the same levels (Fail/Pass) of non-compliance Improves determination of inspection targets, and also provides an indicator to gauge the level of compliance improvement Reduces subjectivity and provides provincial consistency when ranking facilities based on risk Component of larger risk assessment framework for the division Key indicator of compliance improvement as well as program success Benefits of Compliance Index…..

18. 18 Rajeev Narang Ministry of the Environment Sector Compliance Branch Continuous Improvement Unit 305 Milner Avenue, Suite 1000 Scarborough, Ontario M1B 3V4 Tel: (416) 314-0335 Email: rajeev.narang@ontario.carajeev.narang@ontario.ca Contact…..