Chicago Department of Public Health Air Pollution Enforcement Audit

Executive Summary

CDPH’s inspection program plays a critical role in controlling the amount of pollution emitted by factories, dry cleaners, restaurants, and other facilities in Chicago. The objectives of the audit were to determine if CDPH,
• meets its air-quality inspection frequency goals;
• ensures that applicable facilities maintain a valid Certificate of Operation;
• responds to air-quality complaints within 24 hours; and
• maintains complete and accurate records on the City’s Data Portal.

A. CONCLUSION
OIG concluded that gaps in CDPH’s air pollution permit and inspections program are increasing the risk that facilities emit more pollution than allowed by law. Infrequent inspections reduce incentives for permitholders to annually renew their Certificates of Operation or to request permits for new equipment, because violations are more likely to go undiscovered.

B. FINDINGS

1. CDPH did not meet its internal air-quality inspection frequency goals. For the purpose of fee assessment, City ordinance establishes categories based on volume of emissions, and CDPH sets internal inspection frequency goals ranging from every year to every three years depending on a facility’s category and type of emissions. Between 2015 and 2017, CDPH met its inspection frequency goal for only 17% of the facilities it intended to visit annually. Moreover, 19% of facilities that should have been inspected annually received no inspection at all over the three-year period. CDPH told OIG that its field staff of three engineers is not sufficient to meet its internal inspection frequency goals, but it also does not provide written guidance to inspectors on how to prioritize the highest-risk facilities for inspection.

2. CDPH did not ensure that facilities renewed annual Certificates of Operation. The Department told OIG that City Council created the Certificate of Operation to compensate for the City’s inability to inspect every facility each year. The Certificate of Operation process requires a facility owner to annually self-certify that their facility is operating safely and in compliance with regulatory requirements. Given the low inspection frequencies described in Finding 1, it is especially important that CDPH ensure facilities obtain annual Certificates of Operation. Without a Certificate of Operation or inspection, the Department will not know if a facility has made unauthorized changes to its operations that may negatively impact public health and the environment. In 2017, only 48% of the facilities listed as “Open” in CDPH’s inspection and permit system obtained the required Certificate of Operation. Furthermore, OIG determined that only 39% of the facilities that were required to obtain a Certificate of Operation every year between 2012 and 2017 fully complied. In fact, 8% never obtained a Certificate of Operation during that period. CDPH stated that it does not proactively review its data to identify facilities lacking a current Certificate of Operation due to a lack of office staff. Instead, it relies on inspectors to take enforcement action if they find a non-compliant facility during an onsite inspection. Reliance on inspections is an ineffective enforcement strategy because most facilities are not inspected annually.

3. CDPH did not categorize potential air pollution emissions for 359 facilities. As of October
2018, CDPH had not categorized 26% of the facilities holding active air pollution control
permits issued prior to 2015. Without a category assignment, the Department lacks a
record of how much pollution these facilities may be emitting and may not be charging
the correct Certification of Operation fee. CDPH does not categorize facilities during the
permit review stage. Rather, the Department assigns the category during initial
inspection, which may not occur for up to three years.

4. CDPH does not ensure that violations identified by inspectors are corrected, creating the
risk of avoidable impact on public health and the environment. CDPH told OIG that its
inspectors may exercise their discretion to issue warnings rather than citations for less
serious violations of the City’s Environmental Code. However, OIG found that CDPH did
not ensure inspectors followed up on warnings to determine if the violations had been
corrected.

5. CDPH resolves approximately 84% of air-quality complaints within 24 hours, but the
Department should record complaint-based inspections more consistently. CDPH directs
inspectors to conduct complaint-based inspections before periodic inspections because,
while the latter are intended to prevent violations from occurring, complaints identify
conditions that may constitute immediate threats to public health and the environment.
OIG found some incomplete record-keeping related to complaint inspections, which
makes it harder for CDPH to measure its performance.

6. The information regarding air-quality permits, complaints, and inspections available on
the City’s Data Portal is incomplete. OIG compared the Data Portal to CDPH’s internal
database and found inaccuracies and missing data.

7. CDPH’s environmental records Lookup Table is organized in a manner that is easy for the
public to use and understand. CDPH created a Lookup Table on the City’s Data Portal that
allows users to search addresses and view environmental records related to the site,
including complaint history, periodic inspections, enforcement actions, environmental
permits, and the presence of under- or aboveground storage tanks. In OIG’s assessment,
the Lookup Table provides information in a user-friendly and readily understandable
manner.

C. RECOMMENDATIONS
OIG recommends that CDPH strengthen its permit and inspection program to ensure that permitted facilities are operating in accordance with the Municipal Code of Chicago and minimizing air pollution. Achieving this may include developing inspection priorities and goals based on factors such as the proximity of polluting facilities to overburdened communities, public health data, violation patterns, and inspection practices in peer jurisdictions. CDPH should continue working to fill vacant positions, then determine if additional inspectors and permit reviewers would be needed to safeguard public health and the environment. CDPH should develop, document, and implement a Certificate of Operation enforcement system that takes full advantage of currently available data to ensure facilities renew their Certificates on time, and pay the correct amount. For example, CDPH could run a monthly report identifying facilities that have not renewed their Certificate of Operation and recording the amount of time they have been operating with an expired Certificate. To promote efficiency and consistency, CDPH should draft and adopt an inspection manual that includes guidance on prioritizing inspections, issuing warnings, recording complaint inspections, and following up on violations.

D. CDPH RESPONSE
In response to our audit findings and recommendations, CDPH stated that it will develop inspection frequency goals, continue filling vacant inspection positions, engage a consultant to help determine appropriate staffing levels to achieve internal goals, and finalize an inspection manual for distribution to inspectors. The Department also stated that it would develop and implement an enforcement mechanism to identify facilities that have not renewed their annual Certificate of Operations and ensure they come into compliance. CDPH reported that it obtained annual emissions reports from the Illinois Environmental Protection Agency and has already begun using this information to update permitted facilities’ emission potential categories. The Department has also begun making changes to the annual Certificate of Operations payment process to reduce overpayments and is exploring options for issuing refunds.

CDPH intends to continue allowing inspectors to issue warnings to facilities. However, the Department stated that it will adjust its process to ensure that these are resolved in a timely manner. Finally, the Department stated that it will review missing records on the Data Portal and address any potential system failures that prevent valid records from appearing on the Data Portal. The specific recommendations related to each finding, and CDPH’s response, are described in the “Findings and Recommendations” section of this report.