What’s New and Where is IDEM Heading?

IMA, September 27, 2006

Thomas W. Easterly, P.E., DEE, QEP Commissioner

IN Department of Environmental Management

New State Laws impacting IDEM from the 2006 Legislative Session

HB1110—Removal of Mercury Convenience Switches from End of Life Motor Vehicles.SB 234—Improving the rulemaking process for wet weather discharges and authorizing the Environmental Stewardship Program.HB1117—Simplifying the solid waste statutes and eliminating the groundwater task force.SB 146—Removing the Property Transfer Disclosure Form from Statute.

IDEM’s Environmental Goal

Increase the personal income of all Hoosiers from the current $0.88/$1.00 of the national average to at least $1.00/$1.00 of the national average while maintaining and improving Indiana’s Environmental Quality.

Pilot 2006 Environmental Performance Index

Yale Center for Environmental Law & PolicyYale University

Center for International Earth Science Information Network (CIESIN)Columbia University

http://www.yale.edu/epi/

How Will IDEM Help Increase Personal Income?

Clear, consistent and speedy decisionsClear regulationsAssistance first, enforcement secondTimely resolution of enforcement actionsEvery regulated entity will have current valid

permits without unnecessary requirementsWritten Standard Operating Procedures Improved staff training and development

Performance MetricsQuality of Hoosiers' Environment Result Target Comments

% of Hoosiers that live in counties that meet air quality standards 77% 100% 80% 5 counties @ 1,419,455 of

6,271,973 failed

% of CSO Communities with approved programs to prevent the release of untreated sewage 27% 100% 20% 75% by 2007 is goal

Permitting EfficiencyTotal calendar days accumulated in issuing environmental permits, as determined by state statute

Land 122,463 37,430 86,864 238 permits

750 permits

125 permits

Air 445,827 207,731 385,000

Water188,724 44,550 200,000

* Places emphasis on back logged permits

ComplianceTotal percentage of compliance observations from regulated customers within acceptable compliance standards

Inspections 95.33% 97% 75%

Self reporting 98.05% 99% 95%

Continuous monitoring (COM) 99.38% 99.90% 98.95%

* Tracks observations and not just inspections

Organizational TransformationBudgetary agency dollars spent on key outside contracts for core agency functions.

Dollars spent on outside services per year$5,079,367 $0 $3,447,017

Will require increase in head count to accomplish

The following 35 CSO communities have either an approved LTCP or sewer separation

Akron Albion Aurora Avilla Berne Bluffton Boonville Brazil Bremen Brownsburg Butler Chesterfield Columbia City Columbus Decatur Frankfort Goshen

Greenfield Kendallville Knox LaGrange LaPorte Madison Michigan City Milford New Haven Ossian Remington Seymour Sullivan Veedersburg Warren Warsaw Waterloo Winamac

Water Infrastructure Funding

Clean Water Costs MoneyThe most efficient way to fund the projects is directly from the usersAny State or National program requires additional overhead which raises the total cost of the projectWe need to work together to help people understand that they are going to pay for the projects one way or another, and that paying locally is the most economical

Permitting

IDEM is still meeting the statutory deadlines for permit issuance, as reported in past years

IDEM now tracks the total calendar days a permit is in house and is applying a deadline to permits that traditionally do not have a statutory deadline; as a new interpretation to the intent of statutes

Total Permit Calendar Days

0

1 0 0 0 0 0

2 0 0 0 0 0

3 0 0 0 0 0

4 0 0 0 0 0

5 0 0 0 0 0

6 0 0 0 0 0

A i rW a t e rL a n d

Percent of Activities Meeting Regulations

9 1 . 0 0 %9 2 . 0 0 %9 3 . 0 0 %9 4 . 0 0 %9 5 . 0 0 %9 6 . 0 0 %9 7 . 0 0 %9 8 . 0 0 %9 9 . 0 0 %

1 0 0 . 0 0 %

I n s p e c t i o n sS e lf R e p o r t i n gE m i s s i o n M o n i t o r i n g

Office of Enforcement2002-2006

2002 2003 2004 2005 2006*

Referrals 887 607 467 547 324Violation Letters 17 33 47 203 125Notice of Violations 561 457 318 202 281

Agreed Orders 311 349 314 258 237Commissioner's Orders 15 15 6 41 28

Dismissals 125 121 44 48 29* August 1, 2006

The 120 Cases over Two Years Old

March 2005, notified regulated community that IDEM wanted old cases resolved by June: 90 cases resolved (approximately) 20 settlements pending 10 commissioner orders issued

Purpose: clear the process and get on fresh footing with the regulated community

Poor Data Systems Caused Confusion

120 cases over 2 years old 40 Resolved by 6/10/0519 Additional resolved by 10/12/05

Industry asking why they were not included when they had old cases on the books

120 cases reported some of which were oldIssued 8 old and 2 newer Commissioner’s Orders by 6/10/05

40 of these were older than 2 years

Status of the 120 Old Cases112 have been moved through the process:64 Agreed Orders24 Commissioner’s Orders12 Dismissals1 Referred to EPA5 Referred to the Attorney General3 Deferred due to Criminal Prosecution3 Violation Letters Issued

Status of the 120 Old CasesThe Remaining 8 old cases involve 3 facilities5 Air Cases with U.S. Steel2 Air Cases with Grain Processing Corp.1 Water Case with the City of Warsaw

Each of these cases is in active negotiation and each of these parties is taking actions to improve the protection of the environment during the negotiations

Possible Issues for 2007 Legislation

Possible 2007 Legislative IssuesBudgetFederal Funds continuing to decreaseState General Funds fluctuateDedicated Funds: Except for Title V, fees

collected for do not relate to program costs—some programs like Methamphetamine Clean-up and Mercury Switch Management completely unfunded (Considering adjusting Title V fees)

Consider Prohibiting the Commissioner from renewing a permit for a facility that was not constructed or has not operated for the past 5 years

Possible 2007 Legislative IssuesStreamline the OEA (Office of Environmental Adjudication) Process, especially for permit appeals. Issues include:Standing (i.e. who can appeal)Timeliness of DecisionsThe Standard of Review (i.e. Arbitrary and

Capricious)Potential for the Collection of Damages

Current Roles of Environmental DistrictsRegional Water and Sewer DistrictsSolid Waste Management Districts

Environmental Crimes Task ForceEnvironmental Crimes Task Force Created by SEA 195 (2005) has been meeting since October, 2005.Chaired by Senator KenleyDeveloping more specific environmental criminal statutes.Plan to develop legislation for consideration in the 2007 session.

Possible 2007 Legislative IssuesStreamlined Rulemaking when adopting Federal Requirements (including deadlines) without changeAsk the 2007 EQSC to study Environmental Rulemaking ProcessRequest legislative authority to encourage implementation of environmentally beneficial projects by providing credit through tax incentives and the ability to bank the value of Supplemental Environmental Projects

Major Regulatory InitiativesRegulations to facilitate the proper management of e-ScrapRulemaking to require the removal of mercury convenience switches from automobiles prior to crushing or shreddingRulemaking to allow Performance Track (Indiana Environmental Stewardship Program)—Will be accepting applications in September

Air IssuesPaul Dubenetzky, Assistant Commissioner of the Office of Air Quality Retried unexpectedly —his last day was September 1, 2006Currently open to suggestions on excellent replacement candidatesIn the interim, I have delegated most authority and responsibility to the Branch ChiefsKathy Watson—Planning and RulesNisha Sizemore—PermittingPhil Perry—ComplianceDick Zeiler--Monitoring

Counties above AQ StandardsJanuary 10, 2005 Allen Boone Clark Dubois Elkhart Hamilton Hancock Madison Marion Shelby St. Joseph

October 1, 2005 Clark Dubois Hamilton Marion

Counties above AQ StandardsJanuary 1, 2006 Clark Dubois Hamilton Marion Vanderburgh

October 1, 2006 (Projected) Clark Dubois Marion Vanderburgh

Ozone Attainment Status

Major Voluntary Air Emission Control Announcements

Alcoa will add Scrubbers for SO2 Emission Control to all units at its Warrick Power Plant near Newburgh.

Indiana Kentucky Electric Corporation will add Scrubbers for SO2 Emission Control to all six of its units in Madison.

Total Permit Calendar Days

0

1 0 0 0 0 0

2 0 0 0 0 0

3 0 0 0 0 0

4 0 0 0 0 0

5 0 0 0 0 0

6 0 0 0 0 0

A i rW a t e rL a n d

Air Permits for New Facilities

New Toyota Production at Lafayette Subaru FacilityLouis Dreyfus Soy Biodiesel Plant—Largest in the USTen new Ethanol Production FacilitiesDraft Honda Production facility permit now on public notice

Major Regulatory InitiativesRulemaking to establish presumptive 8-1-6 VOC BACT controls to streamline permitting:Acid Scrubbers for foundry core making aminesCompliance with certain NESHAPs

Possible statewide regulations on the formulation of consumer products (i.e. air fresheners, deodorants, etc.) and paint products to ensure continued compliance with the Ozone standard and reduce our impact on neighboring StatesAdjustments to the Title V fees to fully fund the program

Major Regulatory InitiativesOutdoor Wood Fueled BoilersUtility NOx, SO2 and Mercury emission rules:CAIR, which regulates NOx and SO2, has been

preliminarily adopted by the Air Pollution Control Board—general consensus.

CAMR, regulating mercury, has not been second noticed because there has been no resolution of issues between Utilities which favor the federal program and the Hoosier Environmental Council which favors a 90% reduction.

Questions?

Tom Easterly100 N. Senate Ave. IGCN 1301

Indianapolis, IN 46204(317) 232-8611

Fax (317) 233-6647teasterly@idem.in.gov