1. CLEAN Annual Meeting May 22, 2012 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management 1

2. 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.

3. 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

4. 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. Why is CLEAN Important? Encourages and recognizes environmental improvements that are not otherwise required. Improves communication between IDEM and participants. Helps communities identify and address their most important environmental issues. 5

6. “New” IDEM Programs (Water) Antidegradation—Applies to new or increased loadings of regulated pollutants due to deliberate actions. There are exemptions for: – Short term temporary discharges. – De minimis discharges (<10% of available capacity). – Changes in loadings covered by an existing permit. 6

7. Water Antidegradation Three basic tests: – Is the new loading necessary? – Is the proposed treatment (discharge) level appropriate? – Do the social and economic benefits of the activity outweigh the environmental degradation? Additional protection requirements for OSRWs. 7

8. “New” IDEM Programs Pesticide General Permit—authorizes the application of pesticides and herbicides that result in a discharge to waters. Thresholds: – 6,400 cumulative acres of land per year. – 80 acres of water per year. – 20 linear miles of ditch or waters edge per year. Existing dischargers must submit their Notice of Intent (NOI) by November 1, 2012. 8

9. “New” IDEM Programs Open Burning Amendments—exemption added for prescribed burning by municipalities and county governments for: – Wildlife habitat maintenance, forestry purposes, natural area management, and firefighting and fire prevention. Exemption for respectful retirement of U.S. flags. Allows municipal fire departments to burn two single family dwellings per year for training 9

10. “New” IDEM Programs (Petroleum) Under Ground Storage Tank Operating Training: – Free on-line training accessible from IDEM website www.idem.gov. www.idem.gov – Training must be completed by August 8, 2012. – Further information at http://www.in.gov/idem/4999.htm http://www.in.gov/idem/4999.htm 10

11. 25 Years of Progress http://www.in.gov/idem/files/state_of_environment_2011.pdf 11

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13. Backlogs Eliminated On January 10, 2005 there were 263 administratively extended NPDES permits and 289 unissued Title V permits. All of those have been issued and IDEM now issues permits using less than 85% of the statutorily allowed days. On January 10, 2005 there were 250 unresolved enforcement cases over 2 years old. Now the oldest referral on our tracking list is July 8, 2010. 13

14. Permits--Percent of Statutory Days 14

15. State Air Quality Status 2008 to 2010 Attains Does Not Meet the PM Standards Does Not Meet the Ozone standard Does Not Meet the Ozone and PM Location of the State Capitals State Boundaries 15

16. 25 Years of Progress Water Quality: Combined Sewer Overflows – All 98 State lead CSO Communities and 7 of the 10 Federal lead Communities have entered legal agreements to address their CSO issues. – We are working with U.S. EPA to speed the progress on the remaining 3 Federal lead CSO communities. – At least 31 of the CSO communities have completed their projects to address the release of untreated sewage during rain events. 16

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19. 19 Fish Tissue Mercury Mercury emissions in Indiana have decreased by approximately 20% over the past 14 years. Measured mercury deposition has decreased by 7% during this time. In spite of these reductions, there is no apparent change in mercury fish concentrations in Indiana.

20. Protection of Human Health U.S. EPA’s “acceptable” fish mercury levels are 0.3 mg/kg which is 300 ppb. While the average fish tissue mercury levels in Indiana have not changed, they are less than one half of this level. Indiana has historically called a stream impaired for mercury if a single analytical result (average of 3 fish) exceeded 300 ppb. 20

21. Protection of Human Health At the end of 2010, U.S. EPA issued new guidance on the proper interpretation of the fish tissue data. U.S. EPA’s guidance indicates that a properly calculated average mercury value is the appropriate interpretation of the limit. IDEM will propose revised impairments after reevaluating its mercury data using the new U.S. EPA guidance. 21

22. 22 Mercury Air Toxics Rule (MATS) Final Rule Effective: April 16, 2012 Annual rule cost $9.9 billion. Annual rule HAP benefit $5,000 to $6,000,000 (0.00209 IQ points per exposed person or 510.8 IQ points per year in US out of 31 billion IQ points) Rule cost is between $1,650 and $1,980,000 per $1 of HAP benefit. Estimated annual co-benefits $53 to $140 billion.

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24. 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 2012. 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). 24

25. Protection of Downwind States OzonePM 2.5 (Annual)PM 2.5 (24-Hour) EPA predicted 2012 Non Attainment counties (based upon 2005 air quality) 1132103 Counties attaining by 2009 92783 Counties still needing improvement at end of 2009 2520 Counties with remaining local source issues 2010 111 25

26. 26 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.

27. 27 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.

28. 28 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.

29. 29 CAIR/Transport Rule/CSAPR Success to Date: On December 30, 2011, the DC Circuit Court of Appeals issued a Stay of CSAPR and held a hearing on the merits of the appeals in April. Cost of Success: U.S. EPA placed a hold on the PM 2.5 attainment designation for the Indianapolis Area which had been sent to the Federal Register, but not published.

30. IDEM 2011-2012 GOALS AND CHALLENGES 30

31. 2011-2012 IDEM Major Goals Complete Antidegradation Rulemaking Process. Done WPCB Final Adoption March 14, 2012. Obtain U.S. EPA approval of attainment designations for PM 2.5 for all of Indiana: Evansville and Cincinnati and Northwest Indiana are final and effective. U.S. EPA will discuss the Indianapolis and Louisville areas on May 31. 31

32. 2011-2012 IDEM Major Goals Complete CAFO/CFO Rulemaking Process. Done Final Adoption November 9, 2011. Adopt Remediation Closure Guidance and Remediation Program Guidance as NPDs. Done, presented to SWMB February 21, 2012. Effective March 22, 2012. Start Rulemaking for Numeric Nutrient WQS. 32

33. 2011--2012 IDEM Challenges Administratively reissue NPDES General Permits and address antidegradation requirements. Develop and implement plan for seamless implementation of water program responsibilities currently assigned to: IDEM, ISDH, IDNR, IDHS, and ISDA. 33

34. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov 34