Document rRBBwN4rj0w5wpvnY8r3NQZV

2052645443 01/24/1995 11:17 2052645443 ALACHEM (Alabama Chemical Association) PASE 01 FACSIMILE TRANSMITTAL FORM FROM: CYNDI BROCK FAX #: (334) 265-7795 Date: / W^95 TO:-- JuOOd&J1 FAX#: (3V) & 9V- ..... Number of pages including this one. Message; ' AAl / /r stAA? 7j J/c .% /t yte/ je*0 d? /o/^yLj -5 % ? cAyzs. // <s j4 tdtf yfy /?/). / : . ........... Business Center of Alabama - 4th Floor 2 North Jackson Street Ma itgomery. AL 36104 Telephone: (334) 265-2154 * FAX: (334) 265-779 3 ' DSW 133505 STLCOPCB4033463 01/24/1995 11:17 2052645443 PAGE 02 Issue No. 32______ Biennial Report Edition 1993-94 JVDEM Dear Alabamians: Ensuring the quality of Alabama's air, land, water and coastal resources is the mission of he Alabama Department of Environmental Management. In pursuing this charge, the Department strives to adequately and suitably implement the state and federal laws it enforces while dealing with increasing demands for environmental scrvices precipitated by economic growth, industrial expansion and public awareness of pollution problems. This edition of ADEM Update is devoted to highlights of the 1993-94 fiscal years, a few <j>f the most notable of which include the following: Gov. Jim Folsom appointed five new members of the Alabama Environmental Managemle:nt Commission (EMC); Richard E. Brown, a retired opthalroologist. and Ronald W, Wise, an attorney, both of Montgonjrcry. in 1993: Dr. John Lester, an Enterprise veterinarian. Dr. Charlotte Carter, chair of the Mathematics and Science Department at Stillman College in Tuscaloosa, and R.D. Hicks, president of Hicks Enterprises in Stevenson, in 1994: In 1993, ADEM's Public Water Supply Branch was selected from among eight state pro.; Tams in Region IV by the U.S. Environmental Protection Agency, for the second consecutive year, as having the best man iged safe drinking water program; The EMC voted in 1994 to increase the fish consumption rate, used in setting water quaity standards for toxic pollutants, from 6.5 to 30 grains-par-day, based on a study commissioned by ADEM which indi rated that the EPA national average of 6.5 grams-per-day was inconsistent with consumption in Alabama. Only New York i ow has a more restrictive fish consumption rate than Alabama; For three successive years, dioxin levels in fish sampled downstream of Alabama's 10 bis;ach pulp mills have been well below the 7 parts-per-trillion level at which EPA recommends issuance of a fish consumptibwi advisory: Alabama was selected by EPA as one of 10 states and two Indian communities to partici i>; ate in a pilot program for accelerated development of a Comprehensive State Ground Water Protection Program. ADEM' plan was among the first three in the nation approved by EPA; 1993 marked the fourth consecutive year in which the Birmingham area (including Shell ry County), the state's only nonattainment area, failed to violate the ozone standard. ADEM petitioned EPA in July 1993 to reclassifv the area as attainment. This biennium, however, was not without its challenges: Appropriations from the State General Fund remained fairly static, federal funding decli red slightly and fees generated through permits and fines, while also declining, provided an increasing percentage o: the Department's operatic budget; For the third straight year, ADEM failed in the 1994 session of the Alabama Legislature to successfully promote passage of a solid waste bill designed to strengthen and provide financial support necessary to r anage the state's existing solid waste program, to make it consistent with federal laws and regulations and to provide edu^iation on solid waste " reduction, recycling and management. I consider the tasks that this Department performs to be among the most significant in sta [ie government. Nothing is more important to the quality of life than the quality of our air. land and water. 1 look forward n leading what I believe to be one of the finest and most dedicated groups of employees in state government in pursuit of tl e goal of protecting and preserving Alabama's environment. I encourage the interest and support of all Alabamians in tliis objective. Sincerely, John M. Smith ADEM Directo ` DSW 133506 STLCOPCB4033464 01/24/1995 11:17 2052645443 PAGE 03 ADEM Esviroxmextal Update, IssieNo, 32 Biexnial Report Editiox Commiassion tJaps Sn m1i,t1h as ADEMA -Ta mt cihiienf Staff report John M. Smith was appoint ed ADEM director by the AlabamaEnvironmental Commission at its Nov. 29 meeting. Smith is a graduate of Livingston University with a bachelor of science degree and served a four-year stint in the U.S. Air Force. He served as public rela tions director for the Alabama Department of the American Legion from 1974 to 1977 and founded a political public rela tions firm in 1977. In 1983. Smith founded International Hytec, a computer services firm specializing in providing technological support to both the public and private sectors. Maxwell Laboratories, based in San Diego, acquired Smith's company in 1992. At that time, he was named presi dent of the Strategic Technolo gies Group of Maxwell Labora tories, where he was responsible for applying the company's high technology base to new opportu nities in the high-growth markets ofenvironmental engineering. In addition to his role at Maxwell Labs. Smith has had a variety of leadership roles in the high technology and educational arenas, the most visible of which has been his participation in the Cambridge Technology Group's seminar series on the strategic use of technology. This series is hosted by Harvard University and the Massachusetts Institute ofTechnology in Cambridge, Mass. Smith also played a key role in the birth of a new research consortium of Historically Black Colleges and Universities (HBCUs) in 1993. This consortium, supported by the U.S. Environmental Protection Agency, is comprised ofcolleges and universities from the five states bordering the Gulf of Mexico and is a primary source of support for the EPA's Gulf ofMexico Initiative. Since 1991, Smith has assisted in proposal development for EPA funding of environmen tal projects at Florida A&M University, Troy State Universi ty. Bishop State Community' College, Dillard University and Prairie View A&M University. He also worked with Au burn University and the U.S. Department of Agriculture in the development of Auburn's Food Institute. Smith is chairman of the board of trustees for Livingston University. He previously served as the board's treasurer and was a member of its finance and budget committee. He served as a member of Livingston's athletic hall of fame committee and was president of the school's national alumni association from 1980 until 1982. Smith is a member of the Montgomery Area Chamber of Commerce and the National Association of State Information Resource Executives. Smith was named to the 1994 list of Who's Who Among Outstanding Ameri cans. Smith's appointment makes him the third director since ADE]M's creation in 1982. Joe Broi udwater served in that capacity f om the agency's inception unti 1985. Leigh Pegues served as e ADEM chief from 1985 unti his retirement in November ofl* st year. Environmental Update published bi-monthly by Alabama Department of Environmental Management P.O. Box 301463 Montgomery- Ala, 36130-1413 HonorableJim Folsom Governor John M. Smith Director James W.Warr Deputy Director Catherine Lamar, Editor David Granger. Associate Ed[tor Clark Brnner, Assistant Editor Environmental Management Commission W. David McGUTert Chairman Richard E. Brown, MD. Charlotte Carter, Ph. D. Stanley I*. Graves R.D, Hicks John Lester, D.V.M. Ronald W. Wise,Esquire Permission is grantedto ntpiint any article originating in APEM Environmental Updete provided credit is given this publication. ' Third Class postage paid at Montgomery. Alabama . . ^ ' r* *i' % ' IXJSrMASlR;Xddraasduiiga '.. requested ' Page 2 DSW 133507 STLCOPCB4033465 01/24/1995 11:17 2052645443 STLCOPCB4033466 invironmental chiefs Vi*.-**- raises questions CD LJ -f.I>ocumjrit%jppafcntly: $#; for emrlier contracts; ____ y,:.whoiwas.^cling exqcuttye.directpr-Ju Smith wrote Ih'his resume tharihepjayed 1993, when Smith' claims to have worked <E ^veratatMfsotfie ifrork vtfiije'; "the key role" In putting together a consor with the group. CL Emitting John H. Smith's ! tium of black colleges for the Environmental ,The topic he says he worked on with the Protection Agency's Gulf of Mexico Program. -Latin America Association was "goals , and involvement with a hazardous Waste disposal business The acting director oi the Gulf program, objectives for the incoming administration." Douglas Lipka, told The Montgomery Adver Mrs. Laverdy said that topic did not sound tiser that Smith's claim Is not true. familiar. AMQdatad PrM Writ*-. v MONTGOMERY -- The state's new envi- ~rouMeutM-;ri&cctor submitted a resume to state;officials--that/apparently overstated Some of.his-work while leaving offi his in volvement 'With a hazardous waste disposal Jwsiness. .... ..y, / ; l'. On the-recommendation of Gov. Jim Fol som, the state Environmental Management Commission voted 4-3 Tuesday to hire John H. Smith as director of the Alabama Depart ment of Environmental Management. Smith had worked in' Folsom's campaigns, includ ing his losing effort for governor, "He did not play (the) key role," Lipka Absent from Smith's resume was his con -- ----------said. "We have had no direct communication sulting work for Asbvins Inc., a company with.him on that project." . that wanted to barge hazardous waste down lipka said Smith attended many of the Alabama rivers to Central and South Ameri- Gull ol Mexico program's meetings and pov~ sibly assisted some of the black colleges. Ashvlns was never able to get a permit to Another participant said Smith played a ship the hazardous waste. In an interview on significant role in putting the program'to Tuesday, Smith described, his work for the gether, but not the key role. firm as a "favor for a friend." But after ques "He asked some good questions and made tions arose about his resume, 'be did not a contribution at meetings," said Mack Fel return phone calls seeking comment. ton, a biologist at Dillard University in New Smith's resume also did not include a con Orleans. tract with the Alcohol Beverage Control Smith also helped Dillard officials write a Board. His company. International Hytec, re grant proposal for some environmental ceived $500,000 to computerize ABC, but equipment, but the proposal was rejected, never completed the work, state examiners j Smith's resume listed his occupation as Felton said. He said Smith did not have a said. president of the Strategic Technologies scientific background, but was a conscien W. David McGiffert, chairman of the Envi Group of Maxwell Laboratories, a defense tious worker and "brings very good leader ronmental Management Commission, said he and environmental contractor in San Diego, ship qualities." . voted against Smith because he had not had Calif. ' In another entry on Smith's resume, he time to check out his resume. "1 wanted to - A Maxwell official, who asked not to be lists working with the Latin American Man look into his past" identified, told The Anniston Star that Smith agement Association in Washington, D.C. Commission member Ron Wise said he had not worked for the company for several "Nobody here knows anything about Mr. voted for Smith because he felt he was well ! months, but was still receiving commissions Smith or his company," said Marina Laver- qualified for the job. co o tn m fri Jt uy a 01/24/1995 11:17 2052645443 133509 LO Enviromenta 'ists protest n w ADEM chief L<<DiJr Q. ByCkwf Jaffe ADVERTISER STAFF WHITER got to figure out our options and how we can U.S. Environmental Protection Agency's Gulf legally challenge this." of Mexico program. Mac Parsons, a former state senator, said Environmentalists said that despite his The Alabama Environmental Management Commission, tupped a controversial friend of Gov. Jim Folsom's to head the state's envi ronmental agency. John M. Smith was named Tuesday as di rector of the Alabama Department of Envi he would fight Mr. Smith's appointment on the grounds that he was not qualified for the position. "Apparently someone has a grudge against the environment," Mr. Parsons said. "Any ex perience he has dealing with the environment work in the Gulf of Mexico, Mr. Smith's re cord on the environment has been spotty. In the early 1980s, according to ADEM re cords, Mr. Smith was a public relations con sultant for Ashvins Inc., a company that sought to transport barges of hazardous waste ronmental Management by a 4-3 vote. -is-a bad experience."------------------------------------ down the Warrior and Tombigbee rivers. Tha "f am appalled.'' said Sheila Holbrook- Mr. Smith did not attend the meeting, but company planned on dumping the waste in White. the Alabama coordinator for the Sier said Tuesday night that his experience for the ra Club, shortly after the vote. "1 think we've position consists of extensive work with the Please turn toADEM, 8A ttr v </> o? Q 01/24/1995 11:17 2052G45443 PAGE 06 M3EM JhLpagelA Central and South America, but never received a permit. In a news release at the time, Ashvins Inc. promised to remove hazardous waste and dump it in foreign countries without reveal ing the names of the companies that generated the waste. "Once the foreign company takes the waste material, it assumes complete responsibility," the pews release states. "... While it is known what substances are handled, it is not known where (the hazardous material) was gen erated. This method holds the generator's name in confidentiali ty and eliminates any liability." Mr. Smith said he never worked for the company, but pro vided advice to a friend who was involved. "My advice to them was to fold up and get out of Jef ferson County," where the com JULIE HUNTER-COBB/STAFF Dr. John Lostor,a mombor of ft* Emironmontal Manatfamfttit CommlMlon, nominates John Smith to load ADEM. pany had planned to store waste temporarily, he said. The man who headed Ashvins Inc., Everett O. Harwell, was sen tenced in 1987 to three years in federal prison for illegally dump ing hazardous chemicals in Dal ton, Ga. He also lied to federal officials about the hazardous waste, according to court records. The dumping occurred in the early 1980s, about the same time Mr. Smith was associated with Ashvins Inc., according to ADEM records. Mr. Harwell's company now operates the landfill in Haleyvjlje, which is regulated by ADEM. The three commission members who voted against Mr. Smith complained that no other candi dates were considered. "I believe it would be a serious mistake to (name John Smith di throw his name out today ajnd not vote on it." Mr. Wise said the commissiinn had tapped the best man for i he job and that environmentalistts who were complaining about he selection would be upset rega rdless of who was selected "For what this position pays, it will be very difficult to get any-One any better," Mr. Wise said. Mr. Smith will replace act{:ng director Jim Warr and will be paid 571,000 a year. Mr. Wkrr was named acting director in iPecember 1993, when then-direejtor Leigh Pegues resigned. Gov. Folsom's office distiibuted Mr. Smith's resume to Ei vironmental Management Comm ission members several months ago and encouraged his selection. rector) and not look at anyone Mr. Smith's work for the az- else," said Stanley Graves, the ardous waste company Ash'll:ns only commission member not apv Inc. does not appear on the re pointed by Gov, Folsom- ' sume, but is documented in But Mr. Smith's supporters ADEM records. said it would be unfair to put off Ms. Holbrook-White, poim ing behalf." Prior to his appointment, Mr, Smith was best known as the owner and founder of Montgom ery-based International Hytec. in ternational Hytec was the recipi ent of a controversial contract tc computerize the Alcoholic Bever age Control Board. State examin ers said Mr. Smith accepter 5500,000 in state money for the project but did not complete th< work- ; But it is Mr. Smith's relation ship with Mr. Harwell anc Ashvins Inc. that worries environ mentalists the most. Several residents of Haleyviili have fought the expansion of Mr Harwell's landfill, saying that Mr Harwell's past, which include serving 10 months in federal pris on for dumping chemicals, shoul< disqualify him. ] Even Gov. Folsom sought ti distance himself from Mr. Har well, when the landfill operato donated $7,500 to his campaigf voting on Mr. Smith after stories to Mr. Smith's lack of experiemce, Gov. Folsom returned the money about his candidacy appeared in said his appointment wo uld said Peggy Roberts, a spokes Alabama newspapers. "appear to be a political favor, woman for the governor. "John Smith's name has been thrown out in the papers as a Fol som crony," said Ron Wise, a Montgomery lawyer who serves on the commission. "It's unfair to Mr. Smith responded that he and the governor "have `bee'n friends for years and years. I! ha've never asked my friend to in flli i ence anything or anyone on my "It sounds like it's the fo guarding the henhouse." sal Gene Church, a Halcyville law yer, when he learned of Mi Smith's appointment. OSW 133510 STLCOPCB4033468 01/24/1995 11:17 2052645443 PAGE 07 6A Monday. Novembe 28,1994 No Cronies At ADEM Agency Needs Fair But Tough Chief t THERE WILL BE a great hoopla in coming weeks as the ' incoming James admi listraiion names new directors for many state agencies. But at! east o.ne agency -- the Alabama Depart-: ; rnent of Environment; I Management -- will be getting a new ^/director even though t ic change is not directly tied to the e.j``change in governors. . } ; But don't let the fat l that the ADEM director will be named ' by a state board instea J of the new governor fool you; this ap pointment could provf just as political as any change made by the incoming adminisi ration. It Is crucial to envir jnmcntal protection and to industry alike that the new director c f ADEM is not someone who will be seen as a political croi y or a tool of any special interest. But a crony may well be wh tt the state gets. ADEM. the state's ] irimary environmental regulatory agency, is overseen by a seven -member panel, the Environmental Man- agemeiu Commission. The commission hires the director of ADEM. The members of the panel are appointed by the gover nor, with the consent r f the Senate. So while the govern or doesn't directly hire the ADEM direc tor, he does name the | ople who do the hiring. Usually, how ever, no single govern >r dominates that process because the terms of commission t lembers are staggered so that no single governor names all of hem. ' But the staggering p rocess has been undercut by the current Folsom administratior. Thanks to stalling tactics in the Senate led by, according to at least one source. Sen. Crum Foshee, sev eral Environmental Mi nagement Commission members named by former Gov. Guy F unt were never confirmed. So Gov. Jim Folsom named replace ments for those commission members as well as a couple of oth srs. giving him influence over almost all of the current commis; ioiwrs. ' ,: That sets the stage f >r Folsom -- or someone close to him,.. perhaps even Foshee - - to try in the waning days ofthe Folsom, administration to press ure the Environmental Management ' Commission to name i crony to be the director of ADEM. THAT POSSIBILi TY IS enhanced by reports that John . Smith, a Folsom politi :al backer with no expertise in environpnental management, i< in the running for the director's post. Smith was the recipi snt of several controversial contracts with the state Alcohol leverage Control Board and served as spokesman for a busini iss that wanted to set up a hazardous waste storage facility s sverai years ago in Jefferson County. The Environmental Management Commission has had a year now to choose a new d rector for ADEM. It has a career agency employee serving as ac ting director, so there is no harm in the commission taking a fe w months more to conduct a full search for a qualified director. After the search has latrowed the choices to a few finalists, their names should be t nade public so that the citizens of Alaba ma can judge whether i he best candidate is ultimately chosen. ' The Environmental 1 Management Commission will be doing the public a grave disse price if it chooses ajwliiical crony for tHis^ll-important post. ADEM desperately needs as its director someoh vjith professic nal credentials who'can earn the respect of environmentalists ar j developers alike.., S*i >- A Ji OSW 133511 STLCOPCB4033469 01/24/1995 11:17 2052645443 PAGE 08 Environmental agement Commission Names ohn Sl...th Director of ADEM Sierra Club Sues At its November 29 meeting, the Alabama Enviro amenta! Management Commissior by a 4 to 3 vote, named John Smith as the new director of ADEM. The appointment was sure to be controversial In fact, the Sierra Club has sued th seven-member Commission over the appointment. The su it claims Mr. Smith lacks the need experience to manage the environmental agency. The Sier a, Club also claims that Mr. Smith i a crony of outgoing Governor Jim Folsom. Sierra Club Alabama chapter coordinator Sheil Holbrook-White said, "The Sierra Club opposes political cronyism that thwarts the will of th people and hurts the environment and the public health in the process''. In the weeks before the Commission meeting, it appeared that the panel would nc consider a director appointment, instead waiting for Gove:mor-elect Fob James to take office However, days before the meeting, the possibility of the appointment of Smith, a friend c Folsom, began to be considered a reality. News that the a; apointment may be made received great deal of media criticism across the state with cries c f cronyism. Governor Folsom ha circulated Mr. Smith's resume to several commission me:mbers last summer and has been lot bying for the appointment. ADEM has been without a di.i ector since the resignation of Leig Pegues last December. At that time, the commission said ;hat it would not name a director fc the agency until after the November elections. Six of th : seven commission members wer appointed by Folsom, three of whom were sitting on their first commission meeting. Mr. Smith's nomination was made by Dr. John L<:ster, a veterinarian from Enterpris and one of the newest commission members. The Commtssion had made no search to fill th director position which pays approximately $71,000. N x. Smith was never formally inte: viewed by the Commission and the nomination did not appear on the commission meetin agenda. Mr. Smith worked briefly as a consultant for a com pany attempting to transport hazarc ous waste to South America. He also played a role in orgar izing a consortium of black college for the EPA. His company. International Hytex, received a contract to computerize the AB< Board. State examiners claim that he accepted payment 1 rom the state for the job but did n( complete the work. DSfei 133512 STLCOPCB4033470 01/24/1995 11:17 SCAN SYSTEM 2052645443 r PAGE 09 r Tuesday, November 29, 1994 4:24 PM Subj; New ADEM Director The Alabama Environmental Management Commission today, by a vote of 4-3, approved the nomination of John Smith as the director of ADEM. This appointment is surely to be controversial. During the last few days, the possibility of the appointment has received a great deal of media criticism across the state claiming Mr. Smith is a Folsom crony. Governor Folsom circulated Mr. Smith's resume tjo several commission members last summer and has been lobbying for tftie appointment. ADEM has been without a director since the resignatitj*n of Leigh Pegues last December. At that time, the commission said tha it would not name a director for the agency until after the November genera election. Six of the seven commission members were appointed by F<tlsom. Three of these assumed their duties with the commission at today1s meeting. There could be a legal challenge of these three appointing:mts. possibly bF the incoming Attorney General. The nomination was made by Dr. John Lester, a veterinarian :rom Enterprise and one of the newest commission members. Voting for t ii.6 appointment were: Mr. Hicks, Dr. Brown, Mr. Wise, and Dr. Lester, Voting againsthe appoin d Dr. Carter. Just before the vote, the commission failed to approve, by a vote jf 3-4, a motion by Mr. Graves to table the nomination and establish national search. According to an article in today's Montgomery Advertiser, mlots of the opposition to Mr. Smith was from environmental groups claimL:r.g that he lacks the necessary experience and that the appointment woUld simply be a political favor. Mr. Smith's company, International H/tec, received a controversial contact to computerize the ABC Board. St ate examiners claim that he accepted payment from the state for the jo o but did not complete the work. Now using your own catalog again. ARE YOU FINISHED? (YES/NO) : yes 2 133513 STLCOPCB4033471