1. 111 Indiana Department of Environmental Management Budget Presentation FY ’10 & ’11

2. 222 To protect human health and the environment while allowing for environmentally sound activities of industrial, agricultural, commercial and governmental operations vital to a prosperous economy. IDEM Mission Statement

3. 33 Agency Structure  Core Programs  The Office of Air Quality  The Office of Land Quality  The Office of Water Quality  Support Programs  The Office of External Affairs (All Administrative Offices)  The Office of Legal Counsel & Criminal Investigations  Outreach Program  The Office of Pollution Prevention & Technical Assistance

4. 44 Major Accomplishments 2007-2009 Office of Air Quality (OAQ)  Entire state met the old (0.08) Ozone air quality standard for the period 2006-2008, and we are working with USEPA to have Lake and Porter counties designated attainment.  Entire state also met the new (0.075) Ozone air quality standard for the year 2008. 4

5. 55 Major Accomplishments 2007-2009 Office of Air Quality (OAQ)  91 counties met the PM 2.5 Air Quality Standards for the period 2006-2008.  Midwest Clean Diesel Initiative retrofitted 501 vehicles and locomotives with pollution controls.  Converted 32 of 45 continuous air monitors to report real-time air quality data. 5

6. 66 Major Accomplishments 2007-2009 Office of Land Quality (OLQ)  Safe destruction of all VX nerve agent previously stored at Newport.  Meth lab clean-up contractor certification program  18 contractors certified.  Increased inspection frequency of Animal Feeding (CFO/CAFO) operations. 6

7. 77 Major Accomplishments 2007-2009 Office of Land Quality (OLQ)  “Shovel ready” sites  38 sites restored and ready for reuse.  Contaminated site activities  1005 Covenants Not-To-Sue, No-Further Action letters or Environmental Restrictive Covenants issued.  Mercury switch removal program from vehicles  35,340 switches recovered. 7

8. 88 Major Accomplishments 2007-2009 Office of Water Quality (OWQ)  Great Lakes Compact: Indiana became the first state to pass laws including implementation language.  Monitoring at 9 Lake Michigan beaches providing online access to their water quality information.  Completed 466 local plans to improve water quality.

9. 99 Major Accomplishments 2007-2009 Office of Water Quality (OWQ)  Contacted and coordinated outreach efforts for over 450 water and wastewater treatment plants during southern Indiana flooding.  Implemented the small drinking water system lab assistance program.  Addressed Indiana’s 107 Combined Sewer Overflow communities.

10. 10 Major Accomplishments 2007-2009 Office of Pollution Prevention & Technical Assistance (OPPTA)  9 Clean Community Challenge members  47 companies joined the Environmental Stewardship Program  Confidential Assistance provided via site visits and phone calls

11. 11 Major Accomplishments 2007-2009 Support Programs  Digital Inspector - a laptop based program used by inspectors at inspection sites.  Virtual File Cabinet - electronic filing system with 40,000,000 images now online.  Enterprise wide database allowing IDEM to electronically receive and process permits and reports – Two programs accepting electronic submittals, 401 Certifications and Community Right to Know – Remaining programs will be implemented over next biennium.

12. 12 Major Accomplishments 2007-2009 Efficiencies  Lead monitoring program transferred to ISDH.  IDEM Human Resources consolidated with SPD.  IDEM IT functions consolidated with IOT.  State Deputy Attorneys General imbedded in the Office of Legal Counsel  Reduced the number of external contractors performing core agency functions.  Reduced and virtually eliminated permit backlogs.  Reduced backlog of enforcement actions.

13. 13 Indiana Department of Environmental Management Budget & Staffing

14. 14 Funding Sources  General Funds  The Agency’s general fund historical allocation has been approximately $64.5 million per biennium.  The Agency’s FY 10 & ’11 general fund is proposed at $57.3 million.

15. 15 10-Year General Funding Allocation

16. 16 Funding Sources  Federal Funds  Federal Funds require an average of a 46% match  Dedicated and State General funds are used as match.  Grant funds are becoming more competitive as EPA funding is being cut by Congress.  In light of national budgetary concerns relative to the current economy, further cuts in EPA funding are likely.

17. 17 Funding Sources  Dedicated Funds (Fees and Fines)  State Solid Waste Management Fund  Recycling Promotion and Assistance Fund  Waste Tire Management Fund  Voluntary Remediation Fund  Title V Operating Permit Trust Fund  Environmental Management Permit Operation Fund

18. 18 Funding Sources  Dedicated Funds (Fees and Fines)  Environmental Management Special Fund  fees, fines and penalties  Hazardous Substance Response Trust Fund  Asbestos Trust Fund  Petroleum Storage Tank Trust fund  Excess Liability Trust Fund

19. 19 Current & Proposed Budget Comparison Current: 2007-2009 - $307,801,214 *Dedicated: $187,620,951 (60.96% of Total Budget) *Includes $97,769,864 from Excess Liability Trust Fund (ELTF) *Dedicated: $185,684,682 (62.01% of Total Budget) *Includes $92,528,952 from Excess Liability Trust Fund (ELTF) Proposed: 2009-2011 - $299,431,688 ELTF Federal: $56,403,668 (18.84%) General: $57,343,338 (19.15%) Federal: $57,530,097 (18.69%) General: $62,650,166 (20.35%)

20. Proposed Budget & Staffing OfficePercentage of Total BudgetPercentage of Agency Staff Land (OLQ)50.77%33.44% Air (OAQ)18.21%22.02% Water (OWQ)17.51%25.38% Pollution Prevention (OPPTA) 4.15%3.98% Legal (OLC)1.18%1.73% External Affairs (OEA)7.62%12.33% Investigations (OE/OCI)0.56%1.12% 20 Budget: $299,431,688Staff: 983

21. 21 IDEM Staffing Levels

22. 22 Challenges and Biennium Objectives  Ensure that every Indiana county meets all air quality standards.  Maintaining air improvement in the face of recent federal court vacatures of several key federal environmental rules.  Assist small drinking water systems to achieve compliance with new federal requirements.

23. 23 Challenges and Biennium Objectives  Improve storm water programs and the industrial wastewater pretreatment program.  Continue progress on Combined Sewer Overflows to protect our water from untreated sewage.  Help the State meet the infrastructure needs for water and wastewater systems.  Maintaining the enhanced levels of confined feeding facility inspections.

24. 24 Challenges and Biennium Objectives  Continue implementation of data management system  receive environmental data, applications and correspondence electronically from the regulated community.  Finalize the water Anti-Degradation rule.  Continued efficiency gains while continuing environmental improvements.

25. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov 25