1 Indiana Environmental Issues IEA, September 20, 2007 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

2 IDEM’s Mission and Environmental Goal IDEM is responsible for protecting human health and the environment while providing for safe industrial, agricultural, commercial and governmental operation vital to a prosperous economy. Our goal is to increase the personal income of all Hoosiers to the national average while maintaining and improving Indiana’s Environmental Quality.

3 Pilot 2006 Environmental Performance Index Yale Center for Environmental Law & Policy Yale University Center for International Earth Science Information Network (CIESIN) Columbia University

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5 How Is IDEM Helping to Increase Personal Income? Clear, consistent and speedy decisions Clear regulations Assistance first, enforcement second Timely resolution of enforcement actions Every regulated entity will have current valid permits without unnecessary requirements Written Standard Operating Procedures Improved staff training and development

6 Performance Metrics Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers that live in counties that meet air quality standards 85%100%80% 2 964,725 of 6,271,973 failed % of CSO Communities with approved programs to prevent the release of untreated sewage 50%100%20% 45+9 out of 98+9 Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 61,77966,56586, permits 6972 permits 45 permits Air 311,986207,000385,000 Water 58,80648,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 95.58%97%75% Self reporting 97.77%99%95% Continuous monitoring (COM) 99.66%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 $4,458,843$0$3,447,017 $2.1 OLQ + $2.3 OAQ

7 Counties above AQ Standards January 10, 2005 Allen--Ozone Boone--Ozone Clark--PM & Ozone Dubois--PM Elkhart--Ozone Hamilton--Ozone Hancock--Ozone LaPorte--Ozone Madison--Ozone Marion--PM & Ozone Shelby--Ozone St. Joseph--Ozone January 1, 2007 Clark--PM Marion—PM Possible Addition Lake—Ozone (Whiting Monitor)

8 Ozone Attainment Status

9 PM 2.5 Attainment Status

10 Total Permit Calendar Days

11 Percent of Activities Meeting Regulations

12 Office of Enforcement * Referrals Violation Letters Notice of Violations Agreed Orders Commissioner's Orders Dismissals *August 2007

13 Enforcement Backlog In early 2005, IDEM identified 120 open enforcement cases over 2 years old—all of those cases have been resolved. Our goal is to resolve all enforcement cases within one year of the referral. We currently have 24 cases that are more than 12 months old—no cases over 2 years old.

14 EPA’s Proposed Revisions to NAAQS for Ozone EPA proposing revised Air Quality Standards Primary standard to protect human health Secondary standard to protect public welfare and the environment Both currently.08 parts per million (ppm), effectively.084 due to rounding conventions EPA proposed reduction of primary standard to within the range of ppm EPA proposed two alternative revisions of secondary standard: A new cumulative, seasonal standard, or A standard identical to proposed primary standard

15 Impacts of EPA’s Proposed Revisions to NAAQS for Ozone Non-attainment designation would trigger planning requirements and other potential clean air measures Difficult to predict designations Range of options being considered Nothing finalized in federal rule yet Predictions based on data, recent data shows fewer monitors violate proposal Several control measures implemented that do not take effect until

16 PM 2.5 Status New 35 microgram per cubic meter 24 hour standard issued in September, 2006— Annual standard retained Designations will initially be based upon air quality, but the process may allow the use of data up to 2009 New nonattainment designations will be made April 2010, SIPS due by 2013 SIPS for current nonattainment areas due April, 2008—redesignations and SIPs

17 PM 2.5 Status Based upon monitored Air Quality, the following monitor locations exceed the new 35 microgram per cubic meter short term PM 2.5 Standard: Jeffersonville (Clark County) 37 SW Purdue Ag Center (Knox County) 36 Gary IITRI (Lake County) 38 Gary Burr St. (Lake County) 38 Indianapolis S. West St. (Marion County) 38 Indianapolis English Ave (Marion County) 37 Indianapolis W 18 th St. (Marion County) 37

18 Recent Rulemakings Air Pollution Control Board Outdoor Wood Boilers/Hydronic Heaters - Second notice under review to be issued soon— concept is emission limits for new installations Best Available Retrofit Technology (BART) – final adoption expected 10/07 Control measure for regional haze State Implementation Plan CAIR satisfies rule for EGUs Affects ALCOA, ESSROC Cement Corp., ESSROC Materials, GE Plastics, and Mittal Steel-Burns Harbor East Coast States are asking us to do more even though their class I areas are “below the glide path”

19 Recent Rulemakings Clean Air Mercury Rule – preliminarily adopted 5/07—final adoption hearing 10/07 Based on federal rule Clean Air Interstate Rule – final adopted State Implementation Plan submitted to EPA 2/07 Enhancement to auto emissions inspection – Preliminarily adopted 9/5/07 Lake and Porter County inspection and maintenance plan VOC rules – first and second notice stages Regional effort to reduce Ozone

20 Climate Registry Indiana is one of a handful of States that has not signed on to the Climate Registry We have no objection to voluntary programs to inventory greenhouse gas emissions We do not want to spend Hoosier taxpayer dollars on a not-for-profit organization based in Washington DC Signing on to the Climate Registry might improperly imply that Hoosier businesses need to participate in the Climate Registry

21 Continuous Improvement IT initiatives Tempo – Unified environmental database Virtual File Cabinet – File room via Web Pay for performance Set clear performance expectations Hold staff accountable for their decisions Provides an incentive to go beyond minimum job requirements to assist regulated community

22 BP NPDES Permit IDEM issues permits to protect human health and the environment No exceptions were made with BP’s wastewater permit which is fully protective of drinking water, recreation and aquatic life in Lake Michigan

23 BP NPDES Permit BP’s permitted discharge levels are established at or below the lower of technology based effluent limits and water quality based effluent limits. BP’s New Permit does allow increased discharges of ammonia and Total Suspended Solids to accommodate the processing of Canadian Heavy Crude derived from tar sands

24 BP NPDES Permit This permit had the most extensive public outreach to the environmental community of any permit issued by IDEM. IDEM coordinated with EPA to ensure compliance with the Clean Water Act—On April 5, 2007, EPA issued a written notice of no objection concerning the BP Permit.

25 BP NPDES Permit The permit was issued on June 21, the permit ended on July 9, 2007 and no appeal was filed—the permit effective date is August 1, 2007 and the permit expires July 31, The Alliance for the Great Lakes, which was involved in pre permit discussions with EPA and IDEM has now filed a appeal on the NPDES Permit

26 BP NPDES Permit At the urging of Illinois politicians, the US House passed a resolution critical of the permit The City of Chicago and others have delivered petitions with tens of thousands of signatures objecting to allowing increased discharges to Lake Michigan USEPA originally supported the IDEM BP permit, but is urging BP to go beyond compliance to address public concerns

27 BP NPDES Permit USEPA has also indicated that they will engage in extensive review of all future major IDEM NPDES permits USEPA is also raising numerous issues with IDEM’s draft air pollution permit for BP and is taking very conservative positions Does a legally issued permit allow an activity, or is it the starting point for a beyond compliance negotiation?

28 Thank You — Questions Tom Easterly 100 N. Senate Ave. IGCN 1301 Indianapolis, IN (317) Fax (317)