1. IDEM 2010 Outlook IN Chapter Air and Waste Management Association December 10, 2009 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management 1

2. Indiana FY 2010 Budget Challenges 2

3. Response to Reduced State Income Eliminated 2009 raises. Strategic Hiring Review—Using attrition to reduce spending. Reduce/eliminate grants, contracts, etc. Restrictions on travel and purchasing. Will maintain essential State services. 3

4. New IDEM Budget Actions Returning staffing to 2005 levels through attrition. Moving most of Shadeland staff to IGCN and renegotiating the lease. Canceling or renegotiating a number of service contracts Voluntary unpaid leave program. 4

5. 5 IDEM Staffing Levels

6. Agency Change: Grant and Loan Program Suspension Grants and Loans from the following non- reverting funds were suspended as of December 19, 2008: (as listed in budget report to legislature) – 2580 Recycling Promotion Assistance Fund – 2530 Solid Waste Recycling Fund – 2640 Waste Tire Fund During economic crisis, it is critical to adequately fund core government functions such as public safety, education, and public health 6

7. IDEM’s Mission 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. 7

8. How Does IDEM Protect the 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. Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. Educate people on their environmental responsibilities. 8

9. 9 Performance Metrics Sept 2009 Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers in counties meeting air quality standards 98%100%80% 1 county & 106,673 of 6,376,792 above standard % of CSO Communities with approved programs to prevent the release of untreated sewage 93%100%20% 90+9 (99) out of 98+9 (107) % of Hoosiers receiving water from facilities in compliance with safe drinking water standards 98.3%99%95% Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 22,51666,56586,864 Air 52,794207,000385,000 Water 21,76748,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 96.74%97%75% Self reporting 96.75%99%95% Continuous monitoring (COM) 99.77%99.90%99% * Tracks observations and not just inspections

10. 10 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

11. 2009 Environmental Laws SB 202—Transfers the lead based paint program from IDEM to ISDH. SB 221—Confined Animal Feeding – Requires CAFOs to also meet Indiana CFO requirements – Establishes good character disclosure for new or expanding CFOs – Notify all people within ½ mile of a new or expanding CFO 11

12. 2009 Environmental Laws HB 1589 Electronic Waste – Requires manufacturers of video display devices to recycle covered electronic devices that weigh at least 60% of the total weight of video display devices sold during the most recent 12 month period and prohibits some landfill disposal – Requires manufacturers, collectors and recyclers to register with IDEM – Requires reports and fees 12

13. 2009 Environmental Laws HB 1162 Environmental Matters – Environmental Restrictive Ordinances – Environmental Restrictive Covenants – Prospective Purchaser Protection for Petroleum Contamination – Recognition of Institutional Controls when evaluating corrective action options – Allows subsequent conditions in project completion decisions 13

14. 2009 Environmental Laws – Total Maximum Daily Loads (TMDLs) that address pollutants not listed on the 303(d) list must be public noticed before the new pollutant can be included in the TMDL – Waters designated as Exceptional Use Waters are now Outstanding State Resource Waters – Requires the Antidegradation process to include a one time review of general permits – Clarifies that a person must have both any required local approvals and an IDEM permit 14

15. IDEM Enforcement 200420052006200720082009* Referrals467547591606437260 Violation Letters4,9804,2684,0243,9584,09218 Notices of Violation318202427420321238 Agreed Orders314258417372364271 Commissioner’s Orders64138393215 Dismissals444846574030 Complies/Closed312317577568386237 AG Referrals17433522224 15 * 2009 data is complete through October 31. 2009 Violation Letters do not include those issued directly by the programs.

16. EPA Enforcement Priorities Clean Water Act - Wet Weather – Combined Animal Feeding Operations (CAFOs) – Combined Sewer Overflows (CSOs)/Sanitary Sewer Overflows (SSOs) – Storm Water 16

17. EPA Enforcement Priorities Clean Air Act - New Source Review/Prevention of Significant Deterioration – Acid Production – Cement Production – Coal-Fired Power Plants – Glass Manufacturing 17

18. EPA Enforcement Priorities Clean Air Act - Air Toxics – Air Toxics in Schools – Flaring – Leak Detection and Repair Resource Conservation and Recovery Act (RCRA) - Mineral Processing 18

19. EPA Enforcement Priorities Resources Conservation and Recovery Act (RCRA) and Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) - Financial Responsibility 19

20. Region 5 Enforcement Priorities Integrated Iron and Steel Concentrated Animal Feeding Operations Lime Plants Non-Recovery Coke Production 20

21. Criminal Pleas and Convictions Erler Industries, North Vernon, IN, Falsified Title V Certifications – $1,000,000 criminal fine – $25,000 in restitution to Midwest Environmental Enforcement Association – $100,000 in restitution to IDEM (hybrid vehicles) – Develop an environmental training program – Implement a zero tolerance policy for violations – Public apology in the local newspaper 21

22. Criminal Pleas and Convictions Herb Corn—Rochester Indiana POTW Operator, falsification of DMRs, MROs and NPDES permit renewal application. – Sentenced to 12 months in federal prison Alan Hersh—Hassan Barrel RCRA felonies (Fort Wayne). – Sentenced to 15 months plus restitution Wainwright, Gary, IN—gun charges – Sentenced to 108 months in federal prison 22

23. Agency Initiatives Virtual File Cabinet—electronic filing system with over 59,000,000 pages now online. TEMPO—Enterprise wide electronic integration of all IDEM information—part of the infrastructure to receive and process electronic permit applications and reports: – Two programs accepting electronic submittals, 401 Certifications and Community Right to Know. 23 We Protect Hoosiers and Our Environment

24. Agency Initiatives EDMR—Electronic reporting of waste water discharge monitoring reports. – Currently available for all facilities. – EPA is considering a rule to require electronic reporting for all DMRs. Active assistance to facilities that announce layoffs and closing to prevent environmental Incidents. – No serious incidents to date. 24 We Protect Hoosiers and Our Environment

25. Agency Initiatives Returned enforcement function to the air, water and land programs and eliminated the separate office of enforcement. Provide consistent Statewide air quality permitting, monitoring and enforcement services by directly managing the air program functions previously contracted to: Anderson, Evansville, Gary, Hammond, Indianapolis, and Vigo County. 25 We Protect Hoosiers and Our Environment

26. Agency Accomplishments Agency-wide adoption of Continuous Improvement using Lean/Kaizen and other methodologies to improve processes and increase efficiency EPA has approved IDEM’s CROMEER Application (electronic signatures) 26

27. The New EPA Administrator Jackson’s Stated Priorities: – Environmental Justice – Children's Health – Climate Change The Initiatives we observe include: – Air Toxics Monitoring at Schools – Reemphasis of Enforcement and publishing of compliance information – Progressing of Greenhouse Gas Regulations 27

28. Governor Daniels on Endangerment “Hoosiers will suffer in lost jobs and doubled utility payments, all for zero environmental benefit, if this extreme measure is put into effect. Rather than submitting to this bureaucratic usurpation, Congress should clarify that CO2 is not covered by the Clean Air Act and should remind this administration that its power is not dictatorial and its agencies are still subject to the consent of those they govern." 28

29. Climate Change Science The unbiased temperature record does not indicate any increase in temperature. – Local heat sources near US measurement stations would be expected to increase the average network temperature by 1.9 o C, yet the “observed temperature increase” is 0.7 o C. – Satellite measurements since 1978 show cycling temperatures but no sustained increase. 29

30. Climate Change Science Geologists believe that the earth was warmer than current temperatures approximately 700 years ago (medieval warming period). Geologists have produced evidence of significant warming 12,000 years ago, 130,000 years ago and 225,000 years ago. Reported 20 th century temperatures are no higher than historical values. 30

31. Climate Change Science Local temperatures may be increased by pavement, air conditioning exhaust, changes in land use and increased atmospheric water vapor from irrigation, etc. CO 2 is a greenhouse gas. However, geological studies, including the recent Vostok ice core work indicate that CO 2 changes lag, rather than lead temperature changes. 31

32. Climate Change Science Current CO 2 levels are about 35% higher than those associated with peak temperatures from about 130,000 years ago as measured in the Vostok ice cores; however the Earth’s temperature is currently lower than those estimated for this historical event. 32

33. CO 2 Cap and Trade Concerns CO 2 is different from SO 2 and NO x. – We know how to change gaseous SO 2 to a solid sulfate (SO 4 ) compound such as gypsum which can be sold as a product or landfilled. – We know how to react NO x with NH 4 (ammonia) to form N 2 (nitrogen gas) and H 2 O (water) which can be released to the environment. – We do not have a treatment process for CO 2. 33

34. CO 2 Cap and Trade Concerns CO 2 is different from SO 2 and NO x. – SO 2 emissions from coal combustion can be reduced by 80% through coal switching and by over 99% through switching to natural gas. – CO 2 emissions from coal combustion can be reduced by 33% by switching to oil and by 50% through switching to natural gas. 34

35. CO 2 Cap and Trade Concerns CO 2 is different from SO 2 and NO x. – When the acid rain provisions passed, US SO 2 emissions totaled 23 million tons per year and almost 70% were from utilities and 24% from industries. – Current US CO 2 emissions are 7,760 million tons per year (337 times historical SO 2 emissions) with 33% from utilities and 19% from industries. 35

36. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov 36