Optimal Air Quality Management Service A Sedibeng District
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1 Considerations for the delivery of an Optimal Air Quality Management Service A Sedibeng District Municipality i Case Study THE 4 th ANNUAL AIR QUALITY GOVERNANCE LEKGOTLA 2009 Emarald Casino, Vanderbylpark, yp Monday 12 to Tuesday 13 October 2009 Presenter: Ralempotse Mosia, Director: Environmental Management, Sedibeng District Municipality ralempotsem@sedibeng.gov.za, or
2 Presentation Outline Aim of the Study Overview Situational Analysis District Capacity AQM Functional Analysis Envisaged AQM Service Process Flow Literature, Legal aspects, Current service, gap analysis, workload, capacity, resources, skills Business Plan Income Generation based on AEL Budget Estimation Proposed organogram g Recommendations Lessons Learnt
3 AIMS OF THIS STUDY Atmospheric Emissions Licensing Districts and Metros
4 SDM Structure SDM Sub-directorate of Air quality management in the Directorate Environment at the District This varies with LM s
5 Indiscriminate Burning
6 Fire Baptism in the Vaal
7 Reality of the Vaal
8 Sisokola Sonke!
9 From a Distance!
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12 0km 20km 40km 60km 80km Vaal Triangle Identified Hotspots FREQUENCY OF EXCEEDANCE OF DAILY PM10 LIMIT OF 75 µg/m³ ALL CURRENT SOURCES Residential area of Soweto Activ: Domestic fuel burning Emissions: PM10, SO2 and NO2, VOCs 6 Residential developments of Orange Farm, Evaton and Ennerdale Activ: Domestic fuel burning Emissions:PM10, SO2 and NO2, VOCs 3 5 Residential developments of Vereeniging and Meyerton Activ: Industrial activities (viz. Mittal Vaal Works, Mittal Klip Works, Metalloys, commercial boilers, and other small industrial activities) and domestic fuel burning Developments of Vanderbijlpark and Sebokeng Activ:Industrial activities (viz. Iron and Steel process (Mittal and Davsteel), 4 Commercial boilers and other smaller industrial i activities), iti and domestic Fuel burning. Emissions: PM10, SO2, NO2 and odours, Ozone, VOCs 2 South of Vereeniging RA no residential but potential impacts 1 Actv: mining (viz. New Vaal Colliery), power generation (viz. Lethabo Power Station) and other industrial activities Emissions: PM10, SO2, NO2, 1 day 5 days 25 days Sasolburg, Zamdela and Coalbrook Industrial actv: (viz. Sasol, Omnia and Natref), mining activities (viz. Sigma Colliery) and domestic fuel burning Emissions: PM10, SO2 and NO2, Ozone, VOCs
13 Overview of the Study Definition: iti The SDM s Optimal AQ Management Service o The provision of all air quality management services to include but not limited to the following: 1. Atmospheric emission licensing (Act as the atmospheric emission licensing authority for the region), 2. Monitor ambient air quality and point, non-point and mobile source emissions, 3. Undertake compliance, monitoring and enforcement activities in regards to air quality management issues (including, permitting, licensing, EIA compliance, directive compliance etc) for the Sedibeng region, 4. Responding to air quality complaints, and 5. Undertaking any other air quality management related activities iti for the Sedibeng region.
14 Situational Analysis 1645 industries in SA with APPA permits reviewed licensing process. SDM has 51 industries in total Emfuleni local municipality has 28 industries Midvaal local municipality has 17 industries Lesedi local municipality has 6 industries The total number of permits in the SDM constitutes only 3.1% of the total for the whole of South Africa.
15 Situational ti Analysis cont. Industries - not scheduled processes - permitted ito i.t.o. section 23 & 26 AQA as controlled emitters No quantification of numbers for SDM = the exact workload cannot be calculated Unlikely viable workload for each individual municipality to have their own full air quality unit Rather it is envisaged sufficient workload to support one consolidated unit serving all three local municipalities and the SDM itself
16 District Capacity Currently SDM does not have adequate/ sufficient capacity to render these new functions for the following reasons: Insufficient n human capital in SDM with the required AQM skills No personnel trained calibrations available - monitoring and station management - outsourced A new sub-directorate dealing AQ will need to be inserted into the SDM current organogram SDM s current capacity and resources will be stretched even further Local municipalities current capacity and resources will be stretched even further SDM and the local municipalities expand their structures, capacity and asset base to allow for these new and additional functions to be undertaken e
17 AQM FUNCTIONAL AREAS
18 Envisaged AQM Services If SDM wants to provide an Optimal AQM service, services must include, but not limited to the following: 1. Atmospheric emission licensing (Act as the atmospheric emission licensing authority for the region), 2. Monitor ambient air quality and point, non-point and mobile source emissions, 3. Undertake compliance, monitoring i and enforcement activities i i in regards to air quality management issues (including, permitting, licensing, EIA compliance, directive compliance etc) for the Sedibeng region, 4. Responding to air quality complaints, and 5. Undertaking any other air quality management related activities for the Sedibeng region.
19 Process Flow Diagram
20 Literature Review o Place the project in terms of a regional context: t Sedibeng regions locality, populations p and local municipality distributions o Place the project in terms of a regional air quality context C i li i i i i i i i o Current air quality initiatives in or impacting on the Sedibeng region 13 initiatives identified and considered
21 LEGAL ASPECTS o Reviewed the terms of reference project mandate clarification o Conducted d the constitutional i authority and legal l obligations analysis - identifying the scope of the AQM service the SDM should be providing o Formulation of a Optimal AQM Services Definition from the constitutional authority and legal obligations analysis o Determination of the optimal AQM service core functions from the definition
22 CURRENT SERVICE Current level of services delivered by District and local municipalities was determined by: o discussions held at the project steering committee meetings and b h i f i d ( bd i i o by the review of various documents (e.g. Job descriptions displaying the functions which the personnel must/are required to undertake etc) q )
23 Gap Analysis. The gaps analysis was conducted by comparing the current level of AQM services provided by the SDM to the optimum air quality management service definition: o gaps in terms of what mandated functions should be undertaking Secondary analysis undertaken: o gaps in terms of procedures, studies and/or agreements which need to be undertaken and or established to allow the mandated functions to be undertaken.
24 Workload Analysis Industries that will have to be permitted by SDM - scheduled d processes with APPA registration ti certificates t This statement formed the basis for the determination of the workload Process: o APPA data base was accessed o o o Number of industries with APPA permits in the SDM were determined Assumed data on the data base was valid and current Industry names were then captured in an Excel spreadsheet system
25 Workload Analysis cont. o o o o o DWEA license fee calculator used to classify the industry type Industries estimated banding classification was determined in alignment with DWEA s estimated Band banding The completed SDM permit spreadsheet was then copied into another three Excel worksheets Data sorted - only data relevant to the specific local municipality remained The spreadsheet data was then analysed and conclusions were drawn
26 Workload Analysis cont. Note: o Not all industries are scheduled processes - permitted as part of a holistic reduction strategy o o o No quantification of the number of industries which fall into this category in SDM For this reason the exact workload could not be calculated l Part of the envisaged workload would also include appeals to the issued AEL s: Appeals board As & when required Once reviewed DWEA for final decision.
27 SDM ORGANISATION STRUCTURE Undertaken as follows: o Collation of information: SDM organization charts, LM organization Outputs from the legal review Salary scales for SDM for Profile of SDM including the latest IDP Profile of the local l authorities o Structure reviewed and cognisance was taken of the levels of seniority and grades o The salary levels given matched against the grading levels J b d i ti l i d i t th di d o Job descriptions samples reviewed against the grading and salary levels.
28 CAPACIT Y ASSESSMENT Determination of the capacity of the SDM to render the new mandated functions was undertaken in the following manner: o Assessment was conducted concurrently with the gaps analysis - focus human resources available o discussions held at the project steering committee meetings to determine the current human resources capacity available o SDM organogram was consulted to determine if there were any filled posts which could have their job description expanded to fulfill the new mandated functions
29 RESOURCE REQUIREMENTS ASSESSMENT Four sections: o Proposed sub-directorate structure developed o Staff skills required o Job description development o Training requirements
30 SUB-DIRECTORATE STRUCTURE DEVELOPMENT Process followed: o The legal review and documentation was analysed - functions that legally have to be performed o Comprehensive list of functions were drawn up o Became apparent other administrative and support functions required o These functions were added to the function list o The defined functions were analysed and similar y functions were grouped
31 SUB-DIRECTORATE STRUCTURE DEVELOPMENT Cont. o Functional charts were then prepared detailing all the grouped functions o The functional chart was transferred into an outline organogram (no human resources included) o The initial structure was compared to those from DWEA, SDM and the local municipalities to ensure consistency o The initial i i structure + job functional areas + existing i organogram from SDM, was analysed further to determine the grades of the various components of the proposed structure o An organogram was revised to include the staff grades (levels) as identified.
32 SUB-DIRECTORATE STRUCTURE DEVELOPMENT Cont. o To determine the number of staff referred to the workload analysis o From this analysis the number of potential staff was determined and added to the organogram o Once the organogram was finalised the cost of the new sub-directorate staff was determined - salary levels
33 STAFF SKILLS LEVELS Process followed: o Post functions set out in the job description were analyzed and interpreted for the skill set required to perform the specified functions o Comparison of the skill set to tertiary education was completed and qualifications added o Generic skill sets such as computer literacy and communication skills were added
34 JOB DESCRIPTION DEVELOPMENT Process followed: o A sample of JD s was obtained from SDM and authorities o A review of each format was completed- SDM format used o JD s were developed for each post on the organogram o JD s completed with all job functions defined and the reporting requirements o In conjunction with the JD s staff skills levels required where determined and documented
35 OPERATIONAL REQUIREMENTS Station ti calibration & maintenance requirements: o SDM will be taking over the operation, maintenance and calibration of monitoring: need capacitated human resources and assets for calibration and maintenance o Based on GES experience - list of assets & human resources were recommended
36 5 YEAR BUSINESS PLAN DEVELOPMENT Started with a prioritization analysis key tasks Focus get SDM AQM operational and fully functional Tasks: o Task 1: Project initiation and management (Situational Analysis) o Task 2: Legal mandate resolutions & negotiations o Task 3 : SDM restructuring o Task 4 : Funding securing for 5 years o Task 5 : Recruitment o Task 6 : Staff capacity training o Task 7 : Provision of optimal AQM services for the Sedibeng region for 2010 to 2014 Business plan was then developed in alignment with the Business plan was then developed in alignment with the above list of priorities in the format required by the SDM.
37 5 YEAR INCOME ESTIMATION DETERMINATION Cont. APPLICATION BANDS APPLICATION FEE DESCRIPTION BAND 1 R 15, Simple and routine application with low ongoing monitoring implications and applicant falls into categories supported by government policy BAND 2 R 60, Relatively routine application with relatively low ongoing monitoring and compliance responsibilities BAND 3 R 150, Moderately complex application or moderately onerous ongoing monitoring and compliance responsibilities BAND 4 R 275, Highly complex application withhighongoinghigh monitoring and compliance responsibilities BAND 5 R 650, Very high complexity and non routine application with high workload and high ongoing compliance and monitoring responsibilities Period Payable % of New Rands Yrs Application Fee Annual Fee NEW APPLICATION % RENEWAL % TRANSFER % VARIATION % TRADE % Annual interest rate 15% Interest rate to be applied established by DEAT annually (Benchmark: SA Reserve Bank current prime rate )
38 5 YEAR INCOME ESTIMATION DETERMINATION Cont. The number of industries per band were then counted and captured in the tables APPA database The application band fees were then brought into the table and multiplied by the number of industries per band Legislation allows for the fees to be paid either once off or over 5 years. It was assumed that most industries would decide on the latter approach. The annual fees were then calculated via the Excel PMT function. The PMT function allows for the calculation of a loan/debt/payable fee based on constant payments at a constant interest rate [-PMT (rate,nper,pv,fv,type)]
39 5 YEAR CAPEX BUDGET ESTIMATION A detailed budgetary costing was undertaken to reflect the estimated total CAPEX budget costs for the various unit options Financial period of 2010 to 2014 Financial year Year Four separate units Multi Jurisdictional unit SDM Unit (licencing only) (SDM+3x LM's) (SDM AQ sub directorate) DR CR DR CR DR CR Setup costs Computer Expenses Vehicle purchases/replacements Furniture & office equipment Purchase office & archiving space Compliance monitoring equipment Budget totals Budget shortfall
40 5 YEAR BUDGET SUMMARY Financial year Year SDM Unit (licencing only) Four separate units Multi Jurisdictional unit (SDM+3x LM's) (SDM AQ sub directorate) DR CR DR CR DR CR Income Emissions licensing fees (Annual application fees over 5 years) Budget allocated from central treasury Interest received CAPEX Budget OPEX Budget Budget totals Budget shortfall Income from the license fees will only become available in 2013 hence income is zero until Income passed 2013 remains constant as the income was calculate l via the annualized method with the PMT Excel function.
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42 RECOMMENDATION AQMwillhavetobefundedviamechanismsotherthan the license fees, the fees generated will not be sufficient for the unit/s to be sustained. Form a AQM multi-jurisdictional i lservice unit Structured within the current SDM structure to form the SDM Sub-directorate of Air Quality Management (SDM AQM). SDM will have to establish agreements with the local municipalities, thus allowing the SDM AQM to fulfill the legal mandate of the local municipalities as well as those for the SDM
43 Lessons Learnt The study has provided the following pointers Compliance requirements for SDM The Costs estimates for rendering an optimal AQM service by the district Required Capacity and Programmatic intervention approach Functional Analysis The provisions of Section 77 and 78 of the Municipal Systems Act (No.32 of 2000) with regard to the Sedibeng District Municipality performing the functions of a Licensing Authority Sec 78 process?
44 Lessons Learnt The study has provided the following pointers Compliance requirements for SDM The Costs estimates for rendering an optimal AQM service by the district Required Capacity and Programmatic intervention approach Functional Analysis The requirements for Sec Seventy eight?
45 Thank You
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