Michael L. ParsonGovernor
Governor Office Building, Room 470
Jefferson City MO
Start Time: 9:32 a.m.
Chairman McNutt called the meeting to order.
Trustees Present:
Don McNutt, Chairman
Jim Ford, Vice Chairman
John Albert
Harry Bozoian
Tom Kolb
Ski Mariea
Danny Opie
Melvin Schebaum
Renee Slusher
Absent:
Tom Pfeiffer
Staff Present:
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
H. Patrick Eriksen, Williams & Company Consulting
Dan Henry, Williams & Company Consulting, Inc.
Diane James, Executive Assistant
Pat Vuchetich, Williams and Company Consulting
Others Present:
Brian Allen, Environmental Emergency Response Section, DNR
Ken Koon, Tanks Section, Hazardous Waste Program, MDNR
Ron Leone, Executive Director, MPCA
David Pate, Midwest Environmental Consultants
Review and Approval of Minutes – January 16, 2013 Open Session Meeting
Jim Ford moved that the minutes from the January 16, 2013 Board meeting be approved. Harry Bozoian seconded. Motion carried.
Chairman McNutt reminded Trustees that after Danny Opie’s excellent presentation on Diesel Exhaust Fluid (DEF) at the last meeting, a question arose as to whether DEF leaks and spills are subject to any DNR rules or requirements. He reminded Trustees that a leak from a DEF storage tank is not subject to the DNR Tanks Section’s cleanup requirements, but that it had been unclear at the previous meeting whether the DNR has authority under the “Spill Bill” to impose cleanup requirements.
The chairman then introduced Brian Allen and Ken Koon to address the Trustees. Mr. Koon reconfirmed that DEF storage is not regulated by EPA or any DNR program, nor is it a hazardous substance subject to the requirements of DNR’s “Spill Bill.” He noted that any discharge of water containing DEF could potentially be regulated under the DNR program that regulates wastewater discharges and/or issues stormwater permits. In response to a question, he said he didn’t know what the minimum threshold would be and noted that DEF is not currently addressed under stormwater permits. Ms. Eighmey said she would seek further clarification from the DNR’s Water Program, as she is unaware of any basis for DEF to be addressed under stormwater permits and does not think DEF tank facilities or DEF transporters are required to have stormwater permits.
Mr. Allen said the DNR’s EER staff will respond to any call that comes in on their Spill Line and that his staff work closely with local emergency responders and law enforcement officials when there are transportation incidents. He confirmed that there is no legal requirement to call the Spill Line when there is a DEF spill or leak, although there could be legal liability if a large spill caused a fish kill or similar damage to surface water.
Monthly Reports
Chairman McNutt invited questions or comments from the Trustees about the February financial statements or monthly activity reports; there were none.
Financial Projections
Chairman McNutt introduced Pat Eriksen from Williams & Company Consulting to present the Fund’s semi-annual financial projection to Trustees. **Using a presentation that is filed with these minutes, Mr. Eriksen reviewed the latest projection, noting the current estimates result in an increased future liability. He suggested that the Trustees will likely need to start thinking about how to address future funding shortfalls in 2015-2016.
After a short discussion, Chairman McNutt thanked Mr. Eriksen for his presentation.
Ron Leone arrived at meeting.
Legislative Report
Chairman McNutt asked Ms. Eighmey to review the legislative report contained in the Trustees’ notebooks. She briefly summarized the various appropriations bills that contain authority to spend money from the PSTIF, then reported on efforts to assure that changes to the Sunshine Law do not prohibit the Board’s claim appeals procedure. Ms. Eighmey thanked Ron Leone for his assistance contacting legislators to explain this issue.
There was a brief discussion on various proposals to eliminate or change several boards, commissions, and committees that are associated with the DNR, as well as a bill that would eliminate the requirement for a person to be registered to practice geology; Ms. Eighmey noted the latter proposal would save the PSTIF money in cases where the environmental consultant who manages the cleanup is not a registered geologist and must pay an RG to affix his seal to some reports.
Tom Kolb asked whether there are any proposals to “sweep” money from the PSTIF; Ms. Eighmey said she had not seen or heard of any yet.
John Albert corrected the information in the Trustees’ notebooks, noting that SB373 deals with MDA’s metrology fees but not the petroleum inspection fee.
Update – DNR Issues
Chairman McNutt reported there had been an internal training session the previous Friday for DNR and PSTIF staff on the revised RBCA requirements, and that the invitation to consultants to participate in webinars on this subject had drawn a lot of interest. He reiterated the Trustees’ appreciation for the work everyone had done and continues to do on this issue.
The DNR’s quarterly financial report on tanks work was briefly reviewed.
Chairman McNutt mentioned there have been discussions over many years about developing a web-based map of tank sites and said more information would be forthcoming on this subject.
Update EPA Issues
Chairman McNutt asked Ms. Eighmey to review EPA issues. Ms. Eighmey first reviewed the extensive efforts undertaken to persuade EPA that Missouri’s implementation of the FR requirement for equipment companies complies with the 2005 Energy Policy Act, noting the efforts had been to no avail. She then said that, given EPA’s refusal to acknowledge Missouri’s compliance and its withholding of a sizeable portion of the federal money used by DNR for its tanks regulatory program, the DNR had proposed – after discussion with the PSTIF and the MPCA – a plan for imposing a requirement that all new UST installations be double-walled. She expressed appreciation that the DNR’s plan allows adequate time for owners/operators to be informed of the requirement and plan accordingly.
Harry Bozoian left the meeting to attend to another matter.
Discussion ensued about the cost of this change to small businesses, with Ms. Eighmey noting that a fiscal analysis will have to be done by DNR as part of its rulemaking process. Mr. Koon noted that the DNR intends to coordinate this rulemaking with rule changes that will be triggered by changes to EPA’s UST rules, expected in December 2013, and that in response to the DNR’s plan, EPA had finally released all federal funds to Missouri.
Harry Bozoian returned to the meeting.
Chairman McNutt told Mr. Koon that the Board appreciates their advocacy and said he hopes EPA will let Missouri implement this new requirement in a way that minimizes disruption.
Other Updates
FY13 Inspections – Chairman McNutt asked if Trustees had any questions on inspections; there were none.
Free Product Research Project – Chairman McNutt invited questions or comments. Renee Slusher asked what the initial report indicated. Ms. Eighmey responded that the preliminary data from one site was somewhat anomalous and results from the other site indicated significant degradation of free product; a more thorough analysis will be available after the follow-up sampling.
Software Modifications – There were no questions or comments on the information in the Trustees’ notebooks.
Advisory Committee Meeting – Chairman McNutt noted that an Advisory Committee Meeting is scheduled for next month to discuss several current issues.
Administrative Issues
Chairman McNutt reminded Trustees to file their Personal Financial Disclosures by the May 1 deadline, as the Ethics Commission charges penalties if not filed on time.
Chairman McNutt asked if there were any questions about the billings; there were none.
Chairman McNutt thanked those in attendance for coming and reminded all present that the next Board Meeting would be in Columbia on May 29, 2013 at The University Club on MU’s campus.
Chairman McNutt then announced that Ms. Eighmey and Mr. Duggan had conferred regarding Sunshine Law requirements and procedures and have recommended more specific information be provided about why the Board is going into closed session. He then stated that the Board needed to go into closed session for the following purposes:
– To discuss and vote on legal actions, causes of action and litigation;
– To receive confidential communications from our legal counsel;
– To discuss contract bidding specifications for an actuarial study; and
– To discuss issues related to renewal of the inspection contract.
Tom Kolb moved that the Board go into closed session to discuss the matters identified by the Chairman, as authorized by Section 610.021, RSMo. Jim Ford seconded. A roll call vote was taken; motion carried without dissent.
Chairman McNutt adjourned the open session meeting at 10:30 a.m.
**For a copy of the presentation mentioned in these minutes, please contact the PSTIF Office. Please note, if presentation is in electronic format, it will be sent to you as an email attachment per your request. However, as some presentations may be in hard copy only, please provide your mailing address at the time of your email request.