IDEM 2010 Update House Environmental Affairs Committee January 13, 2010 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

New IDEM Budget Actions Returning staffing to January 2005 levels through attrition. Moving most of Shadeland staff to IGCN and renegotiating the lease. Canceling or renegotiating a number of service contracts. Voluntary unpaid leave program.

IDEM Staffing Levels YEAR 2004 2005 2006 2007 2008 2009 Current 2010 Target Actual FTE 895 918 915 927 954 950 912 900

IDEM’s Mission IDEM is responsible for protecting human health and the environment while providing for safe industrial, agricultural, commercial and governmental operations vital to a prosperous economy.

How Does IDEM Protect the Environment? Develop regulations and issue permits to restrict discharges to the environment to safe levels. Inspect and monitor permitted facilities to ensure compliance with the permits. Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. Educate people on their environmental responsibilities.

Performance Metrics Dec 2009 Quality of Hoosiers' Environment Result Target Comments % of Hoosiers in counties meeting air quality standards 100% 80% % of CSO Communities with approved programs to prevent the release of untreated sewage 93.5% 20% 91+9 (100) out of 98+9 (107) % of Hoosiers receiving water from facilities in compliance with safe drinking water standards 98.0% 99% 95% Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 19,928 66,565 86,864 Air 45,159 207,000 385,000 Water 20,785 48,000 200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 97.61% 97% 75% Self reporting 95.80% Continuous monitoring (COM) 99.83% 99.90% * Tracks observations and not just inspections And this is where we are today – we have moved from ‘in the red’ to meeting most of our goals or ‘green’. We have done this by setting goals and holding ourselves accountable. We have tried to change inefficient decision making processes to improve workflow. I’ll go over some accomplishments and then focus on some of these areas that we want to improve. 6

Performance Metrics June 2005 Quality of Hoosiers' Environment Result Target Comments % of Hoosiers in counties meeting air quality standards 61% 100% 80% 12 counties & 2,408,571 of 6,195,643 above standard % of CSO Communities with approved programs to prevent the release of untreated sewage 4% 20% 75% by 2007 is goal Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 100,013 66,565 86,864 Air 511,000 207,000 385,000 Water 301,000 48,000 200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 95.46% 97% 75% Self reporting 97.11% 99% 95% Continuous monitoring (COM) 99.19% 99.90% 98.95% * Tracks observations and not just inspections Organizational Transformation Budgetary agency dollars spent on key outside contracts for core agency functions. Dollars spent on outside services per year $6,179,367 $0 $3,447,017 This is where we started on key measures - current permits or backlogs and compliance with permits, state air quality and combined sewer status 7

The New EPA Administrator Jackson’s Stated Priorities: Environmental Justice Children's Health Climate Change The Initiatives we observe include: Air Toxics Monitoring at Schools Reemphasis of Enforcement and publishing of compliance information Progressing of Greenhouse Gas Regulations

Air Quality Update At the end of 2009, all monitors in Indiana measured attainment for all NAAQS for the first time since Standards were established. Indiana is currently in attainment for all NAAQS but: EPA keeps raising (in this case lowering) the bar! In the past the policy was for internal use and not transparent, we have made every effort to make the enforcement decision-making transparent without making enforcement a ‘cost of doing business’ paradigm. Air Quality Standards How low will they go?!?! 9

Ozone Insert new graph from Catherine ○ Based on preliminary 2008 monitoring data, the statewide average 8-Hour Ozone annual 4th high is well-below the standard.

○ Based on preliminary 2008 monitoring data, the statewide average 8-Hour Ozone annual 4th high is well-below the standard.

○ Based on preliminary 2008 monitoring data, the statewide average 8-Hour Ozone annual 4th high is well-below the standard.

MOVING TARGETS Status of Review of NAAQS Current/Previous Status of Review What to Expect 8-Hour Ozone .085 ppm EPA is reconsidering .075 ppm standard .060 - .070 ppm Annual PM 2.5 15 µg/m3 EPA is reconsidering 2006 review of standard 12 µg/m3 CO 9 ppm 8-hour; 35 ppm 1-hour Early stages of review process Little to no change NO2 0.053 ppm annual Comment period on proposed new standard closed 0.065 ppm-0.150 ppm (99th percentile of 1-hour max.) SO2 0.03 ppm annual; 0.14 ppm 24-hour Currently under review 0.05 ppm – 0.10 ppm 1-hour Lead 1.5 µg/m3 quarterly avg. EPA finalized new standard October 2008 0.15 µg/m3 rolling 3-month; 1.5 quarterly avg.

Outdoor Hydronic Heaters (aka Wood Boilers) Outdoor Hydronic Heater Rule Second Notice Published in Indiana Register on January 6, 2010 Rule First Noticed in 2005 Reviews by EQSC and EPA/NESCAUM Model Rule Proposed Rule will require new units to meet emission limits Proposed Rule will require existing units that do not meet the proposed emission limits to install smoke stacks and cease operations in the warmer part of the year ○ The Degreasing Rule currently applies to Clark, Floyd, Lake and Porter Counties. ○ The revised Consumer/Commercial Products Rule is a proposed rule at both the state and federal level and would apply state-wide.

BP Whiting Title V Permit Objection IDEM Construction Permit Issued May 1, 2008 after extensive USEPA review Petitioners Request for Permit Objection filed with USEPA on June 18, 2008 EPA signed the Objection Order October 16, 2009 IDEM plans to meet all of EPAs objections ○ No 112(j) applications have submitted at this time. Purdue is currently considering submitting a 112(g) application.

Office of Water Quality Activities Combined Sewers—97 IDEM lead and 3 EPA lead complete. Seven EPA lead communities left: Anderson, Elkhart, Evansville, Gary, Hammond, Mishawaka, South Bend. Dredging—West Branch Grand Cal in progress. Blue Green Algae.

Office of Water Quality Activities NPDES Permit Backlog Reduction 2005: 263 backlogged permits 2009: 6 backlogged permits List includes: USS Gary Works. Public Noticed. Comment Period Ended. Next step is issuance. US Midwest. Under EPA review. Arcelor Mittal Burns Harbor. Under EPA review Arcelor Mittal Indiana Harbor East. Drafting. Arcelor Mittal Indiana Harbor West. Drafting. Hoosier Merom. Drafting.

Office of Water Quality Activities Blue Green Algae Center for Earth and Environmental Science, DNR, ISDH, IDEM Collaboration. Dr. Lenore Tedesco from the Center for Earth and Environmental Science collecting and analyzing samples in Geist, Morse, and Eagle Creek Reservoirs. IDEM Monitoring Upper Fall Creek Watershed IDEM updates conditions in reservoirs and posts to website: Idem.in.gov/algae EQSC Report calls for expanded monitoring.

Office of Water Quality Rulemaking: Antidegradation What will this rule do? Increases public opportunities for information and input; Protects current "fishable/swimmable“ and other existing uses of waters; Allows for the issuance of legal permits for discharges to water; and, Does not allow the violation of water quality standards.

Office of Water Quality Rulemaking: Antidegradation What is the process for this rule? IDEM held Stakeholder meetings over two years and drafted rule language. IDEM held four public meetings. Draft rule language was ‘second noticed’ for 45 days in the December 16, 2009 Indiana Register. After public notice, IDEM summarizes comments, may make changes to the rule Draft Rule will be presented to the Water Pollution Control Board for preliminary/final adoption. EPA will review the rule as well.

Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov