1. Confined and Concentrated Animal Feeding Permitting Indiana Soybean Alliance December 12, 2006

2. Confined Feeding, CFOs and CAFOs  Confined Feeding (IC 13-11-2-39) : Animals fed and maintained at least 45 days in any 12 month period and Vegetation covers less than 50% of confinement area  Confined Feeding may be: Exempt from regulation due to size. Regulated as a CFO (Confined Feeding Operation) under State Law. Regulated as a CAFO (Concentrated Animal Feeding Operation) through IDEM’s Administration of Federal Regulations.

3. Confined Feeding, CFOs and CAFOs  Confined Feeding Operation (CFO) laws apply to any person who owns, operates, designs, constructs or closes a permitted site  Minimum number of animals to become a CFO (IC 13-11-2-40) Cattle – 300 Swine & Sheep – 600 Fowl – 30,000  Smaller operators may elect to be permitted as a CFO  Smaller operators that violate water quality standards may be required to become permitted as a CFO

4. CFO – Nutrient Management  Manure storage facilities must be structurally sound and provide at least 6 months storage capacity  Must demonstrate access to sufficient acreage suitable for land application  Land application is based upon agronomic rate calculations including: The nutrient needs of crops to be grown The nutrient levels in the manure and commercial fertilizer Soil nutrient levels

5. CFO – Permit Requirements  Record keeping  IDEM Facility Inspections – on site Monitoring equipment Waste management systems Farm practices Sampling  Adherence to the permit terms Enforcement  IDEM CFO’s and CAFO’s are regulated as “zero discharge” facilities  CFO Permits are not federally enforceable.

6. Concentrated Animal Feeding Operations - CAFO  Animal Feeding Operations where large numbers of animals are fed and raised on a small plot of land rather than grazed  EPA considers CAFOs a potential point source of pollution and requires them to obtain an NPDES because of the potential for waste to enter waters of the U.S. through accidental discharges  A recent US court decision (2 nd Circuit) found that EPA could not regulate based on the “potential” for a facility to have a discharge  EPA will change the CAFO regulatory requirements to comply with the court ruling

7. CAFO – Size Definitions SpeciesLargeMedium**Small** Cattle1,000+300 to 999<300 Dairy700+200 to 699<200 Swine2,500+750 to 2,499<750 Sheep10,000+3,000 to 9,999<3,000 Duck*30,000+10,000 to 29,999<10,000 Chicken*82,000+25,000 to 81,999<25,000 Turkey55,000+16,500 to 54,999<16,500 *not a liquid manure system **regulated if they have discharged into waters of the US

8. CAFOs  There are currently 575 CAFOs in Indiana  CAFOs produce approximately 80 percent of the animals from regulated farms  IDEM is EPA’s CAFO permitting authority in Indiana  CAFOs are subject to more regulatory requirements than CFOs  CAFO environmental requirements may be enforced by EPA and private citizens

9. Compliance Inspections  IDEM has 16 CAFO/CFO Inspectors These inspectors are also responsible for landfills, transfer stations, open dumps, and tire processors Trained in various aspects specific to CAFOs/CFOs, such as nutrient management calculations  Changing Inspection Focus Inspections becoming more complex Assistance Inspections for new facilities and/or significant new requirements For new CAFOs, one or two inspections during construction, an assistance inspection within six months of start-up and a formal inspection six months later Biosecurity Issues

10. Number of Farms (CFO & CAFO) Species08/200601/200501/2001 Swine1,7091,8032,325 Beef189201299 Dairy188201259 Chickens153157206 Turkeys148158156 Ducks111216 Sheep779 Total2,1792,2972,965

11. Number of Animals Raised in Indiana Species08/200601/200501/2001 Swine4,393,0004,089,8544,183,753 Beef53,83154,05694,208 Dairy169,270142,987113,394 Chickens43,221,81641,639,89641,279,690 Turkeys5,896,2406,061,5405,797,880 Ducks268,700271,700441,200 Sheep3,337 3,591 * On CFO and CAFO regulated farms

12. Average Number of Animals per Farm Species08/200601/200501/2001 Swine2,5712,2681,799 Beef285269315 Dairy900711438 Chickens282,496265,222200,387 Turkeys39,83938,36437,166 Ducks24,42722,64227,575 Sheep477 399 * On CFO and CAFO regulated farms

13. IDEM Today  CFO permits are issued on average at 71 calendar days, 90 permit days is the statutory limit  IDEM is continuing to look for ways to improve permit turn-around  IDEM is using a compliance assistance approach to help producers understand their environmental responsibilities in response to regulatory changes

14. IDEM Today  Regulations do protect the environment  Illegal discharges and permit violations result in enforcement actions  IDEM is receptive to considering best practices and alternatives to traditional land application  Joining ISDA in examining fragmented State regulatory structure ISDA, IDEM, Office of State Chemist, Board of Animal Health

15. Unresolved CFO & CAFO Issues  Odor management & Air Pollution ISDA task force U.S.EPA study  Local zoning and planning Suburbs encroaching upon farms Environmental regulation addresses the question: “Is human health and the environment protected?” IDEM does not address local land use issues  Continued Inspector Training  Incentive for good performers  2 nd Circuit Court Ruling—EPA Final Rule “soon”

16. Summary Comments  CFO/CAFO Regulation is evolving  IDEM is working in conjunction with ISDA and U.S. EPA for sensible approaches to agricultural production and processing  Farm community has always been concerned about the environment  Strong economy means better environmental protection