mpca update: introduction · shakopee duluth - wdse duluth - lincoln park rochester st. cloud...

MPCA Update: IntroductionSenate Environment and

Natural Resources Committee

Paul AasenCommissioner

March 2011lppt-5bsy11

Introduction

Manage to balance funds

Proactive fiscal planning

Bridge the gap between long-range goals and short term focus

2

Introduction: Business Plan

Biennial Focus Areas

EnvironmentalWatershed Approach

Air Regulations

Ambient Air Quality

OperationalIntegrated Business Systems

3

Individual Work Plan

1 year

Strategic Plan5-10 years

Business Plan2-3 years

Program Plan1-2 years

MPCA Budget Trends, FY2010-2011 Recap and FY2012-2013 Proposal

Myrna HalbachChief Financial Officer

March 2011

Senate Environment and Natural Resources Committee

Presentation Overview

Agency Overview

FY 2010-2011 Recap

Budget Trends

FY 2012-2013 Proposal

5

Agency Overview: Governance

MPCA Citizens’ Board

U.S. Environmental Protection Agency

PartnershipsOther State AgenciesLocal Organizations

Stakeholder Efforts

6

Agency Overview: Structure

900+employeesEight Divisions

IndustrialMunicipalRegionalRemediationPrevention and AssistanceEnvironmental Analysis and OutcomesData and Performance ManagementOperational Support

7

Agency Overview: Mission

Working with Minnesotans to protect, conserve and improve our environment and

enhance our quality of life.

8

Agency Overview: Strategic Direction

Minnesotans take responsibility to protect our environment

Minnesota’s air is clean and clear

Minnesota’s land supports healthy ecosystems and sustainable land uses

Minnesota has clean, sustainable surface and ground water

Excellence in operations

9

FY 2010-2011 Recap: Expenditures by Fund

10

$394.8 million5%

15%

33%20%

12%

11%4%

General$18.3MFederal$59.8MEnvironmental$130.1MRemediation$78.7MClean Water$47.1MMisc Special Revenue$43.4MOther$17.4M

FY 2010-2011 Recap:Expenditures by Program

11

$394.8 million

32%

7%

28%

22%

11%Water, $128.0M

Air, $28.6M

Land, $109.6M

EACM, $87.0M

Admin Support, $41.6M

FY2010-2011 Recap:Air Program Expenditures by Fund

12

$28.6 million

Federal$2.8M

Environmental$24.6M

Misc Special Revenue$1.2M

FY2010-2011 Recap:Air Program

13

The 2011 Air Quality Legislative Report New standards

particulate mattercarbon monoxideozonesulfur dioxidenitrogen dioxide lead

64

6263

65 6567

62

5758

55

6062

6061

59

Current NAAQS

40

45

50

55

60

65

70

75

80

Ozo

ne C

once

ntra

tion

(ppb

) Range of Proposed Standard

14

8-Hour Ozone NAAQS Design Values, 2007-2009

31.0 31.0

28.6

35.9 36.5

29.1

19.7

21.8

30.5

26.5

15.3

Current NAAQS

0

5

10

15

20

25

30

35

40

Apple Valley Mpls -Phillips St. Louis Park St. Paul - RHC St. Paul -Harding

Shakopee Duluth -WDSE

Duluth -Lincoln Park

Rochester St. Cloud Virginia

Conc

entr

atio

n (µ

g/m

3 )

Range of Potential Revised NAAQS

15

Estimated Daily PM2.5 NAAQS Design Values2008-2010 (data through March 2010)

9.610.4

9.99.5 9.5

9.910.3

10.9

6.4

7.5

6.7

10.0

8.7

5.8

Current NAAQS

0

2

4

6

8

10

12

14

16

Conc

entr

atio

n (µ

g/m

3 ) Range of Potential Revised NAAQS

16

Annual PM2.5 NAAQS Design Values: 2007-2009

FY2010-2011 Recap:Land Program Expenditures by Fund

17

$103.7 million

Federal$13.0M

Environmental$13.8M

Remediation$78.5M

Misc Special Revenue$1.4M

Other$2.9M

18

FY2010-2011 Recap:On-site Burning

19

On-site Burning

Closed Landfill Construction Projects

20

FY2010-2011 Recap:Land Program

21

FY2010-2011 Recap:Household Hazardous Waste Participation

200,000

220,000

240,000

260,000

280,000

300,000

320,000

340,000

2005 2006 2007 2008 2009

Par

tici

pati

on

Calendar Year

FY2010-2011 Recap:Water Program Expenditures by Fund

22

$128.0 millionGeneral$14.4M

Federal$15.4M

Environmental$36.8M

Clean Water$47.1M

Misc Special Revenue$0.3M

Other$14.1M

Monitoring 2006-2011

FY2010-2011 Recap: Watershed Approach

360,996,86982%

48,030,000 11%

31,973,1317%

Untreated Sewage Status CY09 in Gallons Per Year(CY07 Baseline = 441 million gallons/year)

Untreated Sewage Discharges Remaining End of 2009 (gal)

Small Communities and Individual SP Fixed in 2008 (gal) 9 communities

Small Communities and Individual SP Fixed in 2009 (gal) 6 communities

FY2010-2011 Recap:SSTS Update

BAU

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Pho

spho

rus

Load

s (M

etri

c Ton

s/ye

ar)

Actual Municipal Phosphorus Load (MT/y)Projected Phosphorus Load Assuming No Phosphorus Treatment (MT/year)Projected P Rule & TMDL Implementation Phase-In Period MT/year)

Metropolitan WWTP 1 mg/L Effluent Limit

Minnesota River Basin General

Phosphorus Permit Phosphorus Rule

Phosphorus Strategy

NPDES Permits – Phosphorus Trends / Projections

FY2010-2011 Recap:EACM Expenditures by Fund

26

$87.0 millionGeneral$1.5M

Federal$28.7M

Environmental$54.2M

Misc Special Revenue$2.2M

Other$0.4M

FY2010-2011 Recap:Community and Business Assistance

Small Business Environmental Assistance Program (SBEAP)

Minnesota Technical AssistanceProgram (MnTAP)

Retired Engineers Assistance Program (RETAP)

27

FY2010-2011 Recap:Diesel Retrofits

Retrofit ~3000 vehicles

Environmental and

economic savings225,000-325,000

gallons of diesel

Up to $1 million for fleet owners

Reduced tons of carbon dioxide, nitrogen oxide and fine particulates

28

4.1

71

2700

Tons

Emission reduction in tonsCarbon dioxide Nitrogen Oxides Small particulates

FY2010-2011 Recap:Administrative Expenditures by Fund

29

$41.6 million

General$2.5M

Environmental$0.6M

Remediation$0.2M

Misc Special Revenue$38.3M

FY2010-2011 Recap: Fleet Management

30

2002 2003 2004 2005 2006 2007 2008 2009

Vehicles placed 144 143 143 140 146 149 151 160

Miles traveled 1,726,096 1,693,890 1,635,974 1,747,491 1,831,150 1,977,054 2,196,055 1,954,500

100

110

120

130

140

150

160

170

180

190

200

-

500

1,000

1,500

2,000

2,500

Thou

sand

Mile

s

Trend of miles traveled & vehicles placedvehicles

Vehicle Reservation System

Leases

31

FY2010-2011 Recap:Administrative Outcomes

FY2010-2011:Budget Reduction

32

General Fund Special Revenue

Water $ (570,020) $ -

Land $ (565,000)

EACM $ (1,492,240)

Admin Support $ (355,740) $ (790,000)

$ (2,983,000) $ (790,000)

Budget Trends:MPCA Budget Over Time

33

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

General Environmental Remediation State Special

Clean Water Federal Other

Budget Trends:MPCA Staffing Over Time

34

726 767 775 821 832901

966 949 936 919

0

200

400

600

800

1000

1200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*

Tota

l FTE

Year

Budget Trends:MPCA Funding Sources

Understanding where the money is in the following funds informs the Governor’s budget

Environmental Fund

Remediation Fund

35

Environmental Fund: $170.3M in FY12-13

36

55%29%

11%

3% 2%

Budget Trends:MPCA Funding Sources

Remediation Fund: $63.6M in FY12-13

37

Budget Trends:MPCA Funding Sources

75%

15%

6% 4%

38

$1,372

$(2,566)

$(7,734)

$(10,000)

$(8,000)

$(6,000)

$(4,000)

$(2,000)

$-

$2,000

Budget Trends:Environmental Fund Deficit

FY2011 FY2012 FY2013

$ in

000

s

39

$369.5 million4.6%

34.5%

18.1%

14.4%

14.3%

14.0%General Fund: $17.1MEnvironmental Fund: $127.7MRemediation Fund: $66.9MFederal Funds: $53.3MClean Water Fund: $52.7MOther Funds: $51.8M

FY2012-2013 Proposal:Budget by Fund

40

$369.5 million

32.5%

7.4%

24.4%

23.9%

11.8%

Water: $120.2M

Air: $27.4M

Land: $90.1M

EACM: $88.3M

Admin: $43.5M

FY2012-2013 Proposal:Budget by Program

FY2012-2013 Proposal:Business Plan

Biennial Focus Areas

EnvironmentalWatershed Approach

Air Regulations

Ambient Air Quality

OperationalIntegrated Business Systems

41

Indiv. Work Plan1 year

Strategic Plan5-10 years

Business Plan2-3 years

Program Plan1-2 years

FY2012-2013 Proposal:Business Plan

Implement the Watershed Approach

Assessment and monitoring

Watershed protection and restoration

Financial and technical assistance

Permitting, compliance and enforcement

Training

42

FY2012-2013 Proposal:Business Plan

Address Federal Air Regulatory Changes and Improve Ambient Air Quality

Air PermittingImplement new regulations

Air ToxicsPollution Prevention

Risk Communication

Stakeholder Input

43

FY2012-2013 Proposal:Business Plan

Improve Agency’s Integrated Business System

Workforce planning

Update fiscal management system

Enterprise technology

44

FY2012-2013 Proposal:Air Program Initiative

Air Emission FeesIncrease: FY12 $166,000

FY13 $335,000Rationale: Maintain service levels in light of increased program expenses Expected Outcomes

Reduce permitting backlogRule updates for Federal Requirements

45

FY2012-2013 Proposal:Land Program Initiatives

Metro Solid Waste Landfill Fee

46

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Tons

/ Y

ear

Metro MSW to Greater MN LFs Metro MSW to Metro LFs

Metro-Area MSW to Metro-Area Landfills and to Greater MN

FY2012-2013 Proposal:Land Program Initiatives

Petrofund ExtensionIncrease: FY13 $9.4M

Landfill Financial AssuranceCost recovery for review

VIC ReductionReduction: FY12 ($590,000)

FY13 ($590,000)

47

FY 2012-2013 Proposal:Water Program Initiatives

Wild Rice Toxicity TestingIncrease: FY12 $1.5M

(one-time funding)

Outcomes: Determine what impacts natural wild rice stands.Review standards based on updated science.

48

FY 2012- 2013 Proposal:Water Program Initiatives

Wastewater Operators Exam & CertificationIncrease: FY12 $27,000

FY13 $27,000Outcomes:

Ensure competence of operators

49

FY2012-2013 Proposal:Clean Water Fund Initiatives

Overall Increase: FY12 $28.0M FY13 $24.6MAssessment $7.5M $7.5M

Restoration /Protection $9.5M $9.6M

Database Enhancement $2.0M over the two yrs

Civic Engagement $300,000 over the two yrs

Groundwater Protection $3.75M $3.75M

Groundwater Assessment $1.1M $1.1M

50

Cont’d.

FY2012-2013 Proposal:Clean Water Fund Initiatives

Clean Water Fund Initiatives, con’t.

FY12 FY13St. Louis River $750,000 $750,000

Clean Water Partnership $2.5M

Stormwater R & D $825,000 over the two yrs

TMDL Implementation $940,000 $750,000

51

FY2012-2013 Proposal:Environmental Assistance Initiatives

EQB Transfer$226,000 each year ($151,000 from GF and $75,000 from Environmental Fund

Outcomes: Improves support to EQB and local gov’t

E-Waste Direct Appropriation

$315,000 direct from Environmental Fund

Statutory requirement to move to direct appropriation

52

FY2012-2013 Proposal:General Fund Reductions

$215,000 each year from CWP Grants

$289,000 each year from Community Assistance

$350,000 each year from monitoring programs

Environmental Fund will absorb $639,000 for program work

53

54

Myrna HalbachChief Financial Officer

myrna.halbach@state.mn.us651.757.2403