IDEM 2011 Outlook NIRPC Environmental Management Policy Committee March 3, 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

5 Performance Metrics Dec 2010 Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers in counties meeting air quality standards 99.99%100%80%Muncie Lead—675 people % of CSO Communities with approved programs to prevent the release of untreated sewage 95.4%100%20% 94+9 (103) out of 98+9 (108) % of Hoosiers receiving water from facilities in compliance with safe drinking water standards 99.3%99%95% Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 12,40266,56586,864 Air 21,789207,000385,000 Water 24,55848,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 96.45%97%75% Self reporting 96.60%99%95% Continuous monitoring (COM) 99.82%99.90%99% * Tracks observations and not just inspections

6 Performance Metrics June 2005 Quality of Hoosiers' EnvironmentResultTargetComments % 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%100%20%75% by 2007 is goal Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 100,01366,56586,864 Air 511,000207,000385,000 Water 301,00048,000200,000 * 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

Discussion Topics IDEM Legislative Agenda. Rules: – Antidegradation. – Greenhouse Gas Permitting. – Outdoor Hydronic Heaters. Water Issues including NPDES Permit Issuance. Land Issues. Northwest Indiana Air Quality. 7

2011 IDEM Legislative Agenda No fee increase proposals. IDEM Issuance of NPDES General Permits. – SB200 Passed Senate Energy & Environment Committee January 18, Permit Terms. Conflict of Interest of board members. SB565 Solid Waste Management Districts. – Define duties and funding for SWMDs. 8

2011 IDEM Legislative Agenda SB 433 Environmental issues is the IDEM general bill that passed the senate last year. – Authorization to pursue delegation for U.S. ACE 404 and U.S. EPA UIC programs. – EQSC study of funding for environmental programs. – Solid Waste Landfill instead of Sanitary Landfill. – Replace “wastewater” with “septage.” – Many other fix-up issues (47 sections). 9

Other Environmental Bills Over 1,800 bills have been introduced this year. There are at least 40 introduced bills which relate to environmental matters in some way. IDEM’s legislative liaison works with bill sponsors and members of the legislature to make them aware of the environmental impacts of proposed legislation. 10

Antidegradation Second Notice Comment Period closed January 30, 2010—31 different commenters submitted hundreds of comments. IDEM is drafting the response to comments and revised proposed rule language. There will be a third notice comment period on the rule as preliminarily adopted. 11

Antidegradation Major Issues Raised – Trigger for Antidegradation Review – What pollutants should be covered (Pollutant of concern) – BADCT – Level of deminimis – Exemptions 12

Antidegradation Need to submit rule fiscal analysis at least 66 days before proposed preliminary adoption. Earliest preliminary adoption possibility is May Plan to distribute the proposed rule and response to comments to stake holders at least 60 days prior to preliminary adoption. 13

GHG Air Permits All permits issued after 1/1/2011 that require PSD review and also increase GHG emissions by at least 75,000 tpy need GHG BACT. All permits issued after 6/30/2011 that increase GHG emissions by 75,000 tpy need GHG BACT and all sources with GHG emissions of at least 100,000 tpy need operating permits. 14

GHG Air Permits IDEM has used the expedited Section 8 rulemaking process and emergency rulemaking to obtain legal authority to issue the federally required GHG permits starting on 1/3/2011. We can use the same process to adjust the rule for any changes due to congressional or court action. 15

Outdoor Hydronic Heaters Rule scheduled for final adoption consideration at the March 2, 2011 Air Pollution Control Board meeting in Lafayette, IN. The current issue of the Air and Waste Management Association’s Environmental Manager publication has articles on the air pollution impacts of these devices. 16

Indiana Water Issues Environmental Group Petition for Withdrawal of Approval of the NPDES Program. –Antidegradation. –General Permits. –Coal Mines. Algae issues and nutrient regulations. – Great Lakes, Gulf of Mexico, Ohio River, Indiana lakes, rivers and reservoirs. Pesticide General Permit. 17

NPDES Permit Backlog Reduction. –2005: 263 backlogged permits. –2011: 4 backlogged permits. –List includes: US Midwest. Issued. ArcelorMittal Burns Harbor. Issued. ArcelorMittal Indiana Harbor East. Under U.S. EPA review. ArcelorMittal Indiana Harbor West. Drafting. Office of Water Quality Permits 18

Potential Regulatory Issues--Land RISC guidance Nonrule Policy Document and regulations implementing HB1162. Coal combustion waste regulations. U. S. EPA to speed up review of pollutant risk evaluations. 19

W.A.R.N. Assistance Visits Worker Adjustment and Retraining Notification. – Companies with >100 employees. – 60 day notice of closing or mass layoff. Bankruptcy Notices. Indiana Economic Digest ( service). Other Sources. 20

W.A.R.N. Assistance Visits Identify “at risk” companies. – Ones with potential waste generation. Schedule Compliance Assistance Visit. Identify any areas of concern relative to waste management. Identify measures needed to return to compliance. 21

W.A.R.N. Assistance Visits 137 companies on W.A.R.N. list. 50% determined “at risk”. 42% identified as generating waste. 28% of inspected facilities had compliance issues. 190,000 pounds of waste generated due to closing. One company with 4 sites declaring bankruptcy with intention to abandon their waste and hazardous products. After visiting with IDEM they properly managed the waste. 22

Northwest Indiana Air Quality On May 11, 2010, U.S. EPA took final action to designate Lake and Porter Counties to Attainment for the 0.08 ppm 8 hour ozone standard. EPA has not yet acted on any Indiana PM 2.5 attainment designation requests, but is working with us to take action based upon U.S.EPA’s final Transport rule. 23

New Air Pollution Standards All monitors in Northwest Indiana indicate attainment with all current air quality standards. New 75 ppb 1 hour SO 2 Air Quality Standard— Modeling Challenges. New 100 ppb 1 hour NO x Air Quality Standard. EPA reconsideration of ozone standard— postponed until July

NO x Modeling Issues Indiana Air Quality Modeling indicates that many point sources, including natural gas peaking plants, model over the new one-hour standard. One source has modeled: – Over 1,000 times the standard at the fence line. – Above the standard at least 38 kilometers downwind. 25

IDEM’s TOXWATCH Report Air toxics risk levels in Indiana are comparable to levels normally found in urban areas in the U.S. Except for two pollutants associated with motor vehicle emission (benzene and acrolein) and one pollutant no longer produced (carbon tetrachloride), all measured air toxics are at levels considered safe. 26

IDEM’s TOXWATCH Report xwatch_report.pdf xwatch_report.pdf 27

Northwest Indiana Region 28

Northwest Indiana Region 29

Carbon Monoxide 30

Carbon Monoxide 31

Lead 32

Nitrogen Dioxide 33

Ozone 34

Changing Particulate Standards 35

Particulate Matter 36

Particulate Matter 37

Particulate Matter 38

Particulate Matter 39

Particulate Matter 40

Particulate Matter 41

Sulfur Dioxide 42

Sulfur Dioxide 43

Sulfur Dioxide 44

Thank You Tom Easterly Commissioner Indiana Department of Environmental Management