Indiana Chapter of AWMA 10 th Annual Winter Technical Meeting December 15, 2011 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management 1

2 IDEM’s Mission We Protect Hoosiers and Our Environment IDEM’s mission is to implement federal and state regulations to protect human health and the environment while allowing the environmentally sound operations of industrial, agricultural, commercial and government activities vital to a prosperous economy.

How Does IDEM Protect Hoosiers and Our 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. 3

How Does IDEM Protect Hoosiers and Our Environment? Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. Educate people on their environmental responsibilities. 4

25 Years of Progress 5

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25 Years of Progress Air Quality: –At the end of 2009, for the first time since ambient air quality standards were developed, all of Indiana met all of the health based ambient air quality standards (including the ozone standard). –During 2010, the new 0.15 microgram per cubic meter lead standard became effective and almost 700 people may be breathing air above that new standard. IDEM is working to make sure that those Hoosiers have clean air to breathe. 7

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25 Years of Progress Cleanup of Contaminated Sites: –Indiana has a fully funded Excess Liability Trust Fund to pay for petroleum clean ups from currently operated tanks. –Indiana will issue an updated RISC Closure Guidance Document in early –Exposure to hazardous constituents is under control at 58 of Indiana’s 66 RCRA Corrective Action sites, while Groundwater contamination is under control at 55 of those 66 sites. 10

25 Years of Progress Cleanup of Contaminated Sites: –Since 2005, Indiana has cleaned up more than 2,500,000 illegally dumped waste tires. –All 1,269 tons of VX Agent stored at the Newport Chemical Agent Facility since 1969 has been safely destroyed. VX destruction started in May of 2005 and was completed in August

25 Years of Progress Water Quality Improvements: –IDEM has assessed the water quality in 83% of Indiana’s waters to identify areas in need of improvement and has updated our Water Quality Monitoring Strategy to increase targeted monitoring. –IDEM has used the 319 grant process to fund watershed improvement projects over the past five years that have prevented annual discharges of: 12

25 Years of Progress Water Quality Improvements: 500,508,000 pounds of sediment 546,871 pounds of nitrogen 332,270 pounds of phosphorus IDEM has documented the water quality improvements from these program efforts and removed the watersheds listed on the next page from the list of impaired waters. 13

25 Years of Progress Water Quality Improvements: Big Walnut Creek Clifty Creek Pigeon Creek

25 Years of Progress Administratively extended NPDES permits. – In 2005, there were 263 administratively extended NPDES permits—All of them have now been successfully renewed (last ones in October 2011). 15

Comparison of Region 5 States Permitting Program Status compiled by U.S. EPA Region 5 for March 10, 2011 State Environmental Directors Meeting 16

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18 (573)(650)(385) (295)(597)(467) (Total Number of Title V Permits)

25 Years of Progress Water Quality: Combined Sewer Overflows –All 98 State lead CSO Communities and 6 of the 10 Federal lead Communities have entered legal agreements to address their CSO issues. –We are working with USEPA to speed the progress on the remaining 4 Federal lead CSO communities. –At least 27 of the CSO communities have completed their projects to address the release of untreated sewage during rain events. 19

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22 MERCURY MACT (NESHAP) Proposal Published: May 3, 2011 Final Deadline: Currently December 16, 2011 Annual rule cost $10.9 billion. Annual rule HAP benefit $5,000 to $6,000,000 ( IQ points per exposed person or IQ points per year in US out of 31 billion IQ points) Rule cost is between $1,211 and $2,180,000 per $1 of HAP benefit. Estimated annual co-benefits $53 to $140 billion.

23 MERCURY MACT (NESHAP) HAPS: Hg, HCL, PM, THC, Dioxins / Furans Rule requires about 90% reduction in mercury emissions. No MACT trading (except units at a single site). Mercury emissions in Indiana have decreased by approximately 20% over the past 14 years, but measured mercury deposition has decreased by only 7% and there is no apparent change in mercury fish concentrations in Indiana.

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25 CO 2 (Green House Gasses) The National Academy of Sciences report, “America’s Climate Choices” recommends that actions be taken now to start reducing U.S. greenhouse gas emissions to levels between 50% and 80% below 1990 levels. Achieving an 80% reduction from 1990 levels would require a 81.4% reduction from 2009 levels. If we converted all U.S. fossil fuel use from coal and oil to natural gas, we would achieve a 23.9% reduction from 2009 levels.

26 CO 2 (Green House Gasses) The remaining emissions would need to be reduced by 73.8% to reach the 80% target. Apparent choices are: –Energy conservation. –Increasing non-hydro renewable energy sources from the current 5.5% market share. –Carbon sequestration. –Nuclear electricity. Is it possible to achieve the additional 73.8% reduction?

27 REMARKABLE AND CURIOUS TIMES Power plants are getting cleaner and cleaner. Air quality is getting better and better. The economy is on its back. Worldwide debate over the future of energy policy. Increasing restrictions on the mining and burning of coal and the disposal of coal ash. An avalanche of new action directly against power generation in general and coal-fired generation, in particular.

28 UNPRECEDENTED FEDERAL INITIATIVES Clean Air Act o CAIR (Clean Air Interstate Rule)/Transport rule/CSAPR (Cross State Air Pollution Rule) o NAAQS revisions—SO 2, NO x, Ozone, PM 2.5 o Mercury / HAPS (Hazardous Air Pollutants) o Greenhouse Gasses including CO 2

29 UNPRECEDENTED FEDERAL INITIATIVES Clean Water Act o Intake structures (316(b)) o Effluent guidelines Resource Conservation and Recovery Act (RCRA) o Coal combustion residuals (CCR)

Protection of Downwind States The concept of the series of air transport rules: –Clean Air Interstate Rule (CAIR) –Transport Rule –Cross States Air Pollution Rule (CSPAR) is that emissions in some states were interfering with the attainment of air quality standards in other states. 30

Protection of Downwind States In 2005 a number of Counties including three in Indiana did not meet all ozone and PM 2.5 air quality standards. U.S. EPA projected that over 100 counties would still not meet standards by By the end of 2010 air quality in Indiana and the rest of the country had improved to meet the Ozone and PM 2.5 air quality standards addressed by CSAPR (except for two areas impacted by local sources). 31

Protection of Downwind States OzonePM 2.5 (Annual)PM 2.5 (24-Hour) EPA predicted 2012 Non Attainment counties (based upon 2005 air quality) Counties Attaining by Counties still needing improvement at end of Counties with remaining local source issues

Protection of Downwind States Modeled projections by some groups indicate that all areas of the country impacted by transport may achieve the Ozone and PM standards without the emission reductions being required by CSAPR—actually happened in The use of the 2005 as the base year instead of a more recent year and U.S.EPA’s triple weighting of the base year are bad for Indiana. 33

34 CAIR/Transport Rule/CSAPR IDEM expected to meet the Transport Rule Statewide caps for 2012 without additional controls, CSAPR reduced those caps by 29%-- not currently achievable. IDEM expected that we would need one current project completed and another source controlled to meet the 2014 caps. CSAPR reduced the caps by 20%. CSAPR annual cost estimated to be $2.4 billion.

35 CAIR/Transport Rule/CSAPR U.S. EPA is implementing CSAPR through a Federal Implementation Plan (FIP) before allowing the States to implement the rule. The State has no role in CSAPR unless we modify our State Implementation Plan (SIP). U.S. EPA is moving to approve our requests to redesignate the State of Indiana to attainment for PM 2.5 now that CSAPR is in effect. This rule will also allow U.S. EPA to approve our BART SIP submission.

36 CAIR/Transport Rule/CSAPR The State of Indiana has filed three actions to respond to CSAPR: –A petition to reconsider the rule with U.S. EPA. –A petition for judicial review of the rule with the DC Court of Appeals. –A request for a stay of the rule with the DC Court of Appeals. We are also working with LA, OH, TX and WV to advocate reconsideration of the rule.

IDEM GOALS AND CHALLENGES 37

IDEM Major Goals Complete Antidegradation Rulemaking Process. WPCB Preliminary Adoption September 19, Third Notice Comment Period December 7 to December 30, Final Adoption consideration by WPCB in Obtain U.S. EPA approval of attainment designations for PM 2.5 for all of Indiana: Evansville is Final and effective. NW Indiana is Final and effective 2/6/2012. Indianapolis and Cincinnati direct final published— U.S. EPA is responding to comments received. 38

IDEM Major Goals Complete CAFO/CFO Rulemaking Process. Done Final Adoption November 9, Adopt RISC Closure Guidance as an NPD. Released for public comment May 6, Final Presentation to SWMB in 1 st Quarter Reissue NPDES General Permits Administratively and address antidegradation requirements. 39

IDEM Challenges Attainment and nonattainment designations for new SO 2 Standard and Ozone Standard. Complete implementation of major IT initiatives: Virtual File Cabinet, Digital Inspector, TEMPO. Respond to U.S. EPA’s Cross States Air Pollution Rule (CSAPR) which replaced the Transport Rule. 40

IDEM Challenges Other possible U.S. EPA decisions such as 316(b) cooling water intakes, no Coal Combustion Waste decision expected in Develop and implement plan for seamless implementation of water program responsibilities currently assigned to: IDEM, ISDH, IDNR, IDHS, and ISDA. 41

Questions? Tom Easterly Commissioner Indiana Department of Environmental Management