1. 2008 CAFO Roundtable October 16,2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management

2. Welcome to Indiana and the 2008 CAFO Roundtable  Welcome to Indianapolis  Wednesday’s Egg Farm tour  Indiana is both urban and rural  Well managed animal feeding operations provide opportunities to our rural communities 2

3. My Pre-IDEM Background  Over 30 yrs as an Environmental Professional  12 yrs Environmental Engineer for the New York State Department of Environmental Conservation  13+ yrs as an environmental manager in the Steel industry  2+ yrs as an environmental manager in the regulated gas and electric utility industry  Environmental consultant 3

4. Mission and Environmental Goal 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. IDEM’s goal is to increase the personal income of all Hoosiers to the national average while maintaining and improving Indiana’s environmental quality. 4

5. Pilot 2006 Environmental Performance Index  Yale Center for Environmental Law & Policy Yale University  Center For International Earth Science Information Network (CFIESIN) Columbia University  http://www.yale.edu/epi/ 5

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7. IDEM: Four Environmental Offices  Office Of Air Quality  Office Of Land Quality (CFO/CAFO Program)  Office Of Water Quality  Office Of Pollution Prevention and Technical Assistance 7

8. Office of Land Quality  Water-based programs in our Land Office  CFO/CAFO permitting and compliance  Wastewater haulers & Land Application Permits  Resources in facility design, engineering and geology are shared with other land programs  Solid Waste statutes set minimum inspector levels and provided an opportunity to share resources 8

9. Office of Pollution Prevention & Technical Assistance  Voluntary Compliance (CTAP)  Technically part of the Federal Clean Air Act  Indiana extends these assistance opportunities to all regulated programs  Agricultural Liaison  Voluntary beyond-compliance programs  Environmental Stewardship & Clean Community Challenge 9

10. Indiana Demographics  Indiana Farms for 2006 – 59,000* * Data from the USDA National Agriculture Statistics Service  Indiana Regulated Farms - 2,211 3.7% of Indiana Farms are Regulated 10

11. CFO and CAFO Regulatory Program History - Indiana  1971 – Passage of Confined Feeding Control Law (Over 4,000 farms approved in first 20 years)  2000 – All farms required to submit Manure Management Plans (3,200 state approved farms)  March 2002 – Confined Feeding Operations Rule 327 IAC 16 Finalized (2,400 state approved farms)  Currently 2,211 state approved farms (1,555 CFOs, 656 CAFOs) 11

12. What Make Indiana Unique?  Indiana has a Confined Feeding Operation Rule (CFO)  CFO Rule contains smaller animal numbers threshold than federal rules  Design standards for Manure Storage Structures  Construction Inspections  New Facility Compliance Assistance Inspections 12

13.  Three types of approvals or permits – CFO approval/permit for smaller farms (state only) – CAFO Program established by U.S. EPA General NPDES permit, standards set in rules Individual NPDES permit, standards from rules, but can include provisions that address site specific water quality protections Regulation Basics 13

14. Species/SectorCFOCAFO Cattle3001,000 Dairy300700 Swine6002,500 Sheep60010,000 Duck*10,00030,000 Chicken (Layers)30,00082,000 Turkey30,00055,000 * Not in a liquid manure system Threshold Number of Animals 14

15. Synopsis of Currently Regulated Farms Animal Type # of Regulated Farms CFOCAFOTotal** Swine1,2494771,726 Beef16425189 Dairy13074204 Chickens6792159 Turkeys13715152 Ducks1910 Sheep707 Horses10212 State Total1,5556562,211 **Sums within the “State Total" row for "CFO", "CAFO" and "Total" columns are less than the sum of the actual column because of combination farms. 15

16. SpeciesTotal Animals in State# Regulated 1971 *2007 *Jan 2005June 2008 Swine5,020,0003,700,0004,055,2775,064,588 Beef314,000110,00054,05651,607 Dairy236,000166,000142,987218,915 Chickens39,956,000No data41,639,89645,407,004 Turkeys4,750,00015,900,0006,061,5406,066,440 DucksNo data 271,700253,700 Sheep228,00046,0003,337 * Data from the USDA National Agriculture Statistics Service Total Number of Animals by Species 16

17. CFO/CAFO Organizational Improvements  Compliance Assistance Inspections  Formalized routine inspection selection criteria  Automation of the inspection process using digital inspector  Reduced Permitting backlog 17

18. Results  Indiana inspections at regulated farm increased by 34% in FY 2008  CFO/CAFOs being inspected once every 5 years on average  Permits being issued within statutory and regulatory timeframes 18

19. CFO and CAFO Inspections FY 2007 vs. FY 2008 Inspection ReasonNumber of Inspections 2007 Number of Inspections 2008 Paperwork (CoC) Follow-Up83 Compliance Assistance76149 Construction124157 Complaint Inspection5128 Follow-Up Inspection67112 Routine Inspection212273 Spill Response Inspection76 Voidance3049 Total:580777 19

20. CFO and CAFO Violations FY 2007 vs. FY 2008 Citation (Violation)20072008 Approval and Performance Standards1415 Discharge & Spill Requirements7446 Land Application Records206315 Operating Record263361 Operational Standards210252 Records/Reports110 Total Violations Cited:778989 20

21. Spill Information 3,100 total spills reported to IDEM from Sept. 1, 2007 to Aug. 31, 2008 – 84 Animal Waste Spills 20 CAFOs 18 CFOs 46 unregulated farms 21

22. Enforcement Actions FY 2007 vs. FY 2008  Notice of Violation Issued 2007 – 122008 – 19  Agreed Orders Adopted 2007 – 122008 – 19  Preliminary Injunctions 2007 – 12008 – 0 22

23. Challenges  Large farms becoming larger for economic survival  Small, unregulated farms constitute roughly half of the reported spills/emergency responses in the Ag sector  Public opinion about regulated farms (NIMBY)  Siting and zoning authorities  Good character disclosure laws/bad actors 23

24. Questions for Informal Discussion  How are you handling challenges?  What innovations are happening in your state? 24

25. QUESTIONS? 25