South Dakota Department of Environment & Natural Resources - PowerPoint PPT Presentation

South Dakota Department of Environment & Natural Resources (DENR) FY 2021 Budget Request Presented to the JOINT APPROPRIATIONS COMMITTEE January 28, 2020 1

DENR’s Budget History: “Getting the Job Done with No Expansions” 2

DENR Workforce Changes Employees that Left DENR in Calendar Year 2019 Employees that Left DENR in Calendar Year 2018 CLASSIFICATION YEARS REASON DATE CLASSIFICATION YEARS REASON DATE of for LEFT of for LEFT Exp. LEAVING Exp. LEAVING Env Scientist II 24 Retired Jan 2018 Engineering Manager I 38 Retired Jan 2019 Env Scientist II 4 Work for St. of Arizona Jan 2018 Program Assist I 18 Moved to Sioux Falls Jan 2019 Env Scientist II 10 Work for Private Firm in Wtn Feb 2018 Env Scientist III 20 Retired Apr 2019 Secretary 36 Work for Lake Area Tech Mar 2018 Env Scientist II 15 Retired Apr 2019 Division Director 38 Retired Mar 2018 Administrator 39 Retired Apr 2018 Env Scientist II 10 Work for SD DOT May 2019 Env Sci Manager II 36 Retired Apr 2018 Finance Officer 37 Retired June 2019 Env Scientist I 1 Moved to St of Washington May 2018 Env Scientist III 33 Retired June 2019 Env Scientist II 33 Retired June 2018 Env Sci Manager I 34 Retired June 2019 Engineer IV 40 Retired June 2018 Information Spec 21 Retired June 2018 Engineer I 0 Personal Reasons July 2019 Senior Secretary 18 Retired June 2018 Engineer II 13 Personal Reasons July 2019 Engineer II 13 Retired July 2018 Env Scientist II 41 Retired July 2019 Engineer II 4 Work for a Private Firm in SF July 2018 Env. Scientist II 7 Work for Fed Govt July 2019 Grant/Loan Spec I 1 Work for a SD County Aug 2018 Engineer I 1 Work for SD Rural Water Sept 2018 Dept. Secretary 44 Retired Aug 2019 Engineering Manager I 32 Retired Oct 2018 Engineering Manager III 33 Retired Oct 2019 Senior Secretary 2 Work for Women’s Prison Oct 2018 Civil Engineer Tech 7 Work for Private Sector Oct 2019 Engineer II 7 Work for SD DOT Oct 2018 Senior Secretary 9 Personal Reasons Dec 2019 Engineer III 30 Retired Nov 2018 Total = Engineer l 2 Moved to St. of Michigan Nov 2018 Env Sci Manager II 42 Retired Dec 2018 350 Total = 434 2018 Summary – 12 retired 2019 Summary – 9 retired 3 went to work for another government agency 2 went to work for another government agency 4 went to work for a private firm 4 left for personal reasons 3 left for family reasons 3 1 went to work in the private sector

DENR Staffing Vacancies Vacated Position Program Title Date Status DFTA 200056 Sec Director N 03/30/2018 Will Be Announced 200161 WWF Engineer I 07/19/2019 Reannounced 200022 GS Environmental Scientist I 01/10/2020 Will Be Announced 200136 GS Environmental Scientist I 01/10/2020 Will Be Announced 200098 GS Civil Engineer Technician 10/08/2019 Announced 200293 WS Environmental Scientist I 08/09/2019 Open-Not Announced ES 200203 ES Admin Director O 01/08/2017 Will Be Announced 200117 WR Engineer IV 06/08/2018 Using Seasonals 200201 AQ Senior Secretary 11/08/2018 Will Be Announced 200238 WM Senior Secretary 12/25/2019 Announced 200251 AQ Engineering Manager I 10/09/2019 Repost in Spring 130675 FP Engineer I 01/05/2018 Reannounced Other Staffing Class # Needed Job Title and Function Temporary 4 Engineers to conduct backlogged water rights licensing inspections Seasonal 4 Water well readers to collect data for DENR groundwater monitoring network of wells Seasonal 3 Roughnecks to help operate DENR's two drill rigs, collect geologic and hydrolog data Intern 2 Env. Scientist interns to collect data for beneficial use reviews of rivers and streams 4 Intern 3 Env. Scientist interns to collect data for total maximum daily loads analysis.

Year In Review-2019 National Awards Dell Rapids Wastewater Treatment Facility Improvements Project • 2019 Performance and Innovation in the State Revolving Fund Creating Environmental Success (PISCES) • Only 13 Projects Recognized East Rapid City Water Systems Expansion Project • 2019 Drinking Water State Revolving Fund AQUARIUS Exceptional Project • Only 10 Projects Recognized 5

Year In Review—2019 Accomplishments Providing Infrastructure to South Dakotans • Implementation of New Flood Information System for the Big Sioux River • Basin DENR Permitting Helps Grow our Agriculture Economy • Innovative Stream Buffer Practice Reduces Sediment Loading to Big Sioux • from Skunk Creek DENR has led SD to one of the best safe drinking water records in the nation • 6

DENR Vision Challenges • Flooding • Per-and Polyfluoroalkyl Substance (PFAS/PFOS) • Sioux Falls • Ellsworth • Federal Regulatory Authority Goals • Timeliness in Issuing Permits • IT Improvements • Continue to Ensure Federal Partners Contribute • Improve Surface Water Quality 7

Special Appropriations Special Appropriation for Restoration of Natural Gas Wells Spyglass Cedar Creek, LP abandoned 40 unplugged natural gas wells in southern Harding County. The estimated • plugging and surface reclamation costs associated with the wells is $887,700, whereas the state holds only $30,000 in financial assurance pursuant to SDCL § 45-9-15. The SD Board of Minerals and Environment revoked Spyglass’s 40 well permits and ordered forfeiture of Spyglass’ • surety in January 2019. The board filed suit against Spyglass in 2019 for the maximum penalty provided under SDCL § 45-9 ($15,494,000); Spyglass maintains the company does not have the financial capability to plug and reclaim the 40 orphaned wells. Uses $727,700 of one time General Funds. • HB 1026 amends SDCL 34A-10 to provide general authority for use of environmental securities forfeited under titles • 34, 45 and 46 for site-specific environmental reclamation. Governor’s Annual Omnibus Water Funding Bill Revenues to the Water and Environment Fund are all dedicated and federal funds - no general funds in the bill. • The funds in the bill are critical to provide financial assistance to construct needed water, wastewater, and solid waste • projects while keeping rates affordable. It has been extremely successful in helping to upgrade water, wastewater, and solid waste projects statewide that are • needed to protect public health and the environment. 8

Omnibus Bill Improves South Dakota Consolidated Water Facilities Construction Program Awards (1993-2019) Solid Waste Management Program Awards (1992-2019) $154.4 million in awards to 313 recipients $52.7 million in awards to 195 recipients 9

Gilt Edge Superfund Mine Site In 1998 the Brohm Mining Company started to have financial difficulties and left the site in July 1999. • 150 million gallons of acidic heavy metal-laden water stored in its pits and an un-reclaimed waste rock dump and heap leach pad. • Listed on the EPA National Priority List on December 1, 2000. • Superfund law: State responsible for 10% of the cleanup costs and 100% of the water treatment and maintenance costs after EPA • completes the cleanup and leaves. Superfund cleanup schedule is based on congressional appropriations, funding dictates the cleanup schedule. • In 2018, EPA, SD DENR, and Agnico Eagle USA Limited entered into an administrative order on consent for Agnico to perform environmental • studies and core drilling as a CERCLA bona fide prospective purchaser (lessee). The focus of the Agnico environmental investigations is to provide additional data in determining the sources of cadmium entering • Strawberry Creek. The investigations will help EPA and the State develop future cleanup remedies for surface and groundwater. No mining is allowed under the current agreement. • In 2020, Agnico will continue drilling their approved boreholes and prepare a geochemical report. Agnico will then evaluate the data • and decide if additional exploration and environmental investigations are needed to evaluate the economic viability of a mining project. 10

Volkswagen Mitigation Trust Eligible Mitigation Action Funding % Amount Awarded 2019 Replacing Large Diesel Trucks 50 $ 4,062,500 $ 36,255 Replacing Large Diesel Buses 35 $ 2,843,750 $ 563,383 Developing Electrical Vehicle Infrastructure 5 $ 406,250 $ - Administrative Costs 10 $ 812,500 $ 7,559 Total 100 $ 8,125,000 $ 607,197 2019 HB1258 •South Dakota’s amount from the settlement is $8,125,000 • Must be used by calendar year 2027 Buses • DENR has been implementing a rebate program for buses for the last 10 years. • In 2019, the Volkswagen funds were used as a match to receive additional federal funds. • In 2019, the $563,383 Volkswagen funds assisted in purchasing 52 new buses. • In 2020, $423,998 of Volkswagen funds will used as match and will assist in the purchase of approximately 35 more buses. Trucks • In 2019, the $36,255 Volkswagen funds have been awarded to assist in the purchase of one new truck. • For 2020, approximately $575,000 Volkswagen funds are available to replace large diesel trucks. • Applications are being accepted in two rounds. The first deadline is January 30, 2020, and the second deadline will be in June 2020. Electric Vehicle Charging Stations • Anticipate offering Volkswagen funds for Electrical Vehicle Infrastructure in 2020. 11