1. We Protect Hoosiers and Our Environment IDEM Update Indiana Chamber of Commerce Environmental Issues Conference March 6, 2008 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

2. We Protect Hoosiers and Our Environment IDEM’s Mission and Environmental Goal 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. Our goal is to increase the personal income of all Hoosiers to the national average while maintaining and improving Indiana’s Environmental Quality.

3. We Protect Hoosiers and Our Environment Pilot 2006 Environmental Performance Index Yale Center for Environmental Law & Policy Yale University Center for International Earth Science Information Network (CIESIN) Columbia University http://www.yale.edu/epi/

4. We Protect Hoosiers and Our Environment

5. How Is IDEM Protecting Hoosiers and Our Environment? Clear, consistent and speedy decisions Clear regulations Assistance first, enforcement second Timely resolution of enforcement actions Every regulated entity will have current valid permits without unnecessary requirements Written Standard Operating Procedures Improved staff training and development

6. We Protect Hoosiers and Our Environment Performance Metrics Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers that live in counties that meet air quality standards 85%100%80% 2 counties @ 964,725 of 6,271,973 failed % of CSO Communities with approved programs to prevent the release of untreated sewage 65%100%20% 64+9 (73) out of 98+9 (108) Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 21,76166,56586,864 91 permits 538 permits 29 permits Air 187,860207,000385,000 Water 27,42648,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 97.15%97%75% Self reporting 95.68%99%95% Continuous monitoring (COM) 99.65%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 $2,800,000$0$3,447,017 $1,5 OLQ + $1.3 OAQ

7. We Protect Hoosiers and Our Environment Performance Metrics

8. We Protect Hoosiers and Our Environment Counties above AQ Standards January 10, 2005 Allen--Ozone Boone--Ozone Clark--PM & Ozone Dubois--PM Elkhart--Ozone Hamilton--Ozone Hancock--Ozone LaPorte--Ozone Madison--Ozone Marion--PM & Ozone Shelby--Ozone St. Joseph--Ozone January 1, 2007 Clark--PM Marion—PM Possible Addition Lake—Ozone (Whiting Monitor)

9. We Protect Hoosiers and Our Environment Permit Backlog Reduction In 2005, there were 263 administratively extended NPDES permits Six of those 263 remain to be issued: US Steel Gary Works US Steel Midwest Division Arcelor Mittal Indiana Harbor East Arcelor Mittal Indiana Harbor West Arcelor Mittal Burns Harbor Hoosier Energy Merom Plant

10. We Protect Hoosiers and Our Environment Office of Enforcement 2003-2007 20032004200520062007 Referrals 607467547591606 Violation Letters 334720323177 Notice of Violations 457318202427420 Agreed Orders 349314258417372 Commissioner Orders 156413839 Dismissals 12144484657 Complies/ Closed 308312317577568 AG Referral 131743352

11. We Protect Hoosiers and Our Environment 2008 Legislative Issues Property Tax Reform is the Major Issue in the 2008 Legislative Session SB 45—The Great Lakes Water Compact with implementing legislation was signed into law by Governor Daniels HB 1120—Ban phosphates in residential dishwasher detergent sold after July 1, 2010 was signed into law by Governor Daniels

12. We Protect Hoosiers and Our Environment 2008 Legislative Issues SB 200 addresses a number of issues including Transfers lead program from IDEM to ISDH Clarifies mercury switch removal program requirements to: Allow payment for removal of mercury containing ant- lock braking switches and other mercury containing devices Exempt wrecked vehicles where the mercury switch is not easily accessible Allows IDEM to accept electronic signatures

13. We Protect Hoosiers and Our Environment 2008 Legislative Issues SB 200 Continued Removes the requirement that IDEM have a laboratory division Removes the requirement to display operator certificates at a treatment plant Allows a single vehicle ID and land application permit approval for a septage hauler Eliminates the requirement that IDEM obtain social security numbers as part of good character approval process Allows IDEM to use ELTF for tank inspections

14. We Protect Hoosiers and Our Environment 2008 Legislative Issues SB 43 Requires public notice of rules that are proposed to sunset Protects a community from being required to pay storm water fees to two entities SB 46 modifies the marketable record title for real property to eliminate the need to renew a environmental restrict covenant every 50 years—Signed by the Governor Other issues could be added in conference

15. We Protect Hoosiers and Our Environment Dr. Barnes Review of BP NPDES Permit

16. We Protect Hoosiers and Our Environment BP Permit Permit issued June 21, 2007 after extensive public outreach and no apparent opposition. Post Tribune Article stating that IDEM’s NPDES permit for BP did not require treatment. Sunday July 15 Article in Chicago Tribune “BP gets break on dumping in Lake— Refinery expansion entices Indiana”

17. We Protect Hoosiers and Our Environment BP Permit Media The July 15 Tribune article resulted in: July 16 letters from Senator Durbin and Representative Emanuel of Illinois to EPA and others criticizing IDEM’s permit action. July 19 th Commissioner Media Availability re BP House Concurrent Resolution #187 on July 26, 2007 “Expressing the sense of Congress regarding the dumping of industrial waste into the Great Lakes” An EPA led August 15 “Great Lakes Summit” Numerous petitions, letters, etc.

18. We Protect Hoosiers and Our Environment BP Permit & Barnes Report Governor Daniels Requested the Barnes Review on August 13, 2007 Dr. Barnes is the former Dean of the School of Public and Environmental Affairs—he served USEPA both times Bill Ruckelshaus was the Administrator Deputy Administrator General Counsel Dr. Barnes Issued His Report on December 3, 2007

19. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “Permit complies with existing regulations and the explicit requirements of state and federal law.” “The wastewater discharge would not be expected to cause a violation of water quality standards or interfere with designated uses in Lake Michigan (including full body contact recreation such as swimming, maintaining the aquatic community, and drinking water supply).”

20. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “The limitations in the BP permit are as demanding, and in several instances much more restrictive than, those issued by adjoining states to refineries.” “With a flat ban on new or increased discharges of bioaccumulative chemicals of concern (BCCs) to Lake Michigan, Indiana is more protective of the Lake than the adjoining states…”

21. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “Indiana should clarify its antidegredation regulations for Lake Michigan to make them easier for permit applicants and the public to understand and for the agency to apply.” “By modifying the regulations to address the shortcomings that I identified, Indiana can readily provide a more transparent process with clear requirements for making antidegredation decisions…”

22. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “The initial press reports that mischaracterized some of the material that BP is authorized to discharge as “sludge” created a misconception in the minds of many members of the public officials that does not accord with the actual facts in this case.”

23. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “Knowledgeable observers in both the environmental and business communities gave IDEM and its commissioner, Tom Easterly, credit for cutting the backlog of expired permits and for their efforts to engage the public early in the permit process.”

24. We Protect Hoosiers and Our Environment BP Permit & Barnes Report In addition to the antidegradation demonstration, public concerns include: The “Necessity” Decision Mixing Zone/Diffuser Mercury (especially the compliance schedule) Monitoring and Reporting Requirements

25. We Protect Hoosiers and Our Environment Future IDEM Actions IDEM will process an antidegradation regulation—Governor’s Stakeholder Meeting March 7 at 1 PM in IGCS Conference Rm A Will apply to entire State Special protection for Lake Michigan IDEM will require more documentation for Compliance Schedules IDEM will obtain an EPA non-objection determination prior to placing an NPDES permit on public notice

26. We Protect Hoosiers and Our Environment Forbes “America’s Greenest States” Article 10/17/2007 “So who’s at the bottom? Mississippi, Louisiana, Alabama, Indiana and, at No. 50, West Virginia. All suffer from a mix of toxic waste, lots of pollution and consumption and no clear plans to do anything about it. Expect them to remain that way.”

27. We Protect Hoosiers and Our Environment Forbes Continued “We ranked each state in six equally rated categories: Carbon footprint (Carbon Dioxide per capita) Air Quality (American Lung Assn 2007) Water Quality (PIRG 2007 “Troubled Waters”) Hazardous Waste Management (per capita) Policy Initiatives (American Council for an Energy- Efficient Economy’s energy efficiency Scorecard) Energy Consumption (per capita)”

28. We Protect Hoosiers and Our Environment Forbes Continued “Regarding energy consumption and lifestyle choice, we examined a number of factors, including vehicle miles traveled and the number of alternative fuel and hybrid-electric vehicles per capita by state, as well as the number of buildings that have received the U.S. Green Building Council’s energy efficient “LEED” certification. We have also relied on information from the EIA, EPA, DOT, NRDC and the Sierra Club.”

29. We Protect Hoosiers and Our Environment Carbon Footprint Indiana does not have nuclear power generation—about 20% of the power generation in the US (and rest of the Midwest) is nuclear. Indiana’s coal is a secure home grown source of energy.

30. We Protect Hoosiers and Our Environment Indiana Projects to Reduce Our Carbon Footprint The recently permitted Duke Edwardsport plant will be the first commercial scale IGCC plant to sequester carbon in the US The largest wind-farm east of the Mississippi River is under construction in Indiana and additional projects are on the horizon

31. We Protect Hoosiers and Our Environment 2006 Air Quality (EPA) ForbesOzonePM Average Greenest State Vermont 1 st 1 st 1 2 nd Oregon 1 st 1 st 1 3 rd Washington 1 st 1 st 1 4 th Hawaii 1 st 1 st 1 5 th Maryland 46 th 39 th 42.5 6 th Connecticut 49 th 1 st 25 7 th New Jersey 48 th 35 th 41.5 8 th Rhode Island 37 th 1 st 19 9 th New York 38 th 42 nd 40 10 th Arizona 1 st 1 st 1 11 th Massachusetts 34 th 1 st 17.5 49 th Indiana 1 st 40 th 20.5

32. We Protect Hoosiers and Our Environment PIRG Troubled Waters Ranking Greenest State Vermont23 rd 2 nd OregonDid not supply useful data 3 rd Washington 7 th 4 th Hawaii20 th 5 th Maryland 6 th 6 th Connecticut45 th 7 th New Jersey16 th 8 th Rhode Island48 th 9 th New York44 th 10 th Arizona11 th 11 th Massachusetts49 th 49 th Indiana40 th

33. We Protect Hoosiers and Our Environment EPA 2006 Water Permits Ranking Greenest State Vermont 19 th 93.0% 2 nd Oregon42 nd 63.9% 3 rd Washington14 th 94.4% 4 th Hawaii13 th 94.7% 5 th Maryland31 st 79.7% 6 th Connecticut39 th 70.3% 7 th New Jersey35 th 76.8% 8 th Rhode Island26 th 83.2% 9 th New York8 th 96.8% 10 th Arizona23 rd 88.7% 11 th Massachusetts45 th 52.1% 49 th Indiana16 th 93.2%

34. We Protect Hoosiers and Our Environment Hazardous Waste Management No Data Source Provided in Report Indiana has about 2% of the US Population, but makes 25% of the steel and over 50% of the of the Recreational Vehicles produced in the US. Pollution Prevention does reduce waste generation, but as long as our manufacturing sector is strong, waste will be (properly) managed in Indiana

35. We Protect Hoosiers and Our Environment Policy Initiatives Spending on Utility and Public Benefits Energy Efficiency Programs (0/15) Energy Efficiency Resource Standards: Requiring Utilities to meet electric and gas savings targets (0/5) Combined Heat and Power Including Renewable Portfolio Standards and Energy Efficiency Resource Standards (3/5) Building Energy Codes (2/5)

36. We Protect Hoosiers and Our Environment Policy Initiatives Transportation—California GHG tailpipe emission standards; exemplary land use policies; transit funding and state fleet requirements (0/5) Appliance and Equipment Efficiency Standards (0/3) “Green” Tax Incentives (0/3) State Lead by Example Programs: Facilities, Equipment, Procurement, R&D (0/3) Total (5/44) tied for 41st

37. We Protect Hoosiers and Our Environment Energy Consumption (per Capita) No Data Source Provided in Report Indiana uses energy to make products consumed in other states. We have 2% of the US population, but make 25% of the Steel and over 50% of the recreational vehicles in the US.

38. We Protect Hoosiers and Our Environment Forbes Report Conclusion The Forbes Report does not rank States based upon government verified environmental quality data The Forbes Report appears to be a ranking based upon the adherence of States to a group of policies advocated by the NGO’s providing information used in the rankings

39. We Protect Hoosiers and Our Environment Questions? Tom Easterly 100 N. Senate Ave. IGCN 1301 Indianapolis, IN 46204 (317) 232-8611 Fax (317) 233-6647 teasterly@idem.in.gov