1. IDEM Update by Commissioner Easterly Indiana Professional Dairy Producers June 4, 2007

2. IDEM’s Environmental Goal Increase the personal income of all Hoosiers from the current $0.88/$1.00 of the national average to at least $1.00/$1.00 of the national average while maintaining and improving Indiana’s Environmental Quality.

3. 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/

5. General Agricultural Issues  Ryan Westerfeld is IDEM’s Agricultural Liaison 317-232-8587  EPA CAFO Rule Status—Proposed extension of deadlines to February 2009  New IN Environmental Criminal Laws (SB 286)  The 2007 Legislature Considered, but did not pass a number of CAFO Bills including: 3 Year Moratorium Increased Fees, Increased Inspections, Increased Notification, Good Character, OISC Shall regulate Nutrient Application Preemption Language

6. IDEM Regulates 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.

7. 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

8. 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

9. 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.

10. 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—target is now February 2009.

11. 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

12. CAFOs  There are currently 625 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  Numerous Recent Legal Challenges to IDEM’s CAFO Permits

13. 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

14. Number of Farms (CFO & CAFO)

15. Number of Animals Raised in Indiana

16. IDEM Today  CFO permits are issued on average at 71 calendar days, 90 permit days is the statutory limit  IDEM is using a compliance assistance approach to help producers understand their environmental responsibilities in response to regulatory changes In 2006 198 Applications Received CAFO 124CFO 74 90Approvals54 32Pending13 2Withdrawn7

17. IDEM’s Regulatory Program  IDEM’s regulations protect human health and 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

18. Unresolved CFO & CAFO Issues  Odor management & Air Pollution No evidence that CAFO’s emit enough air pollution to require regulation as air pollution sources ISDA task force on odors U.S.EPA study on air pollution emissions  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  Increased Number of Inspectors  Continued Inspector Training

19. CFO/CAFO Program Financials  CAFO/CFO – 25 staff (17 FTEs)  Fee Revenue: $42,000  Current program expenses: $1,200,000  Annual Number of permits issued: 121  Annual Number of Permit renewals: 435  Annual Number of Inspections: 1000  2007 Legislature did appropriate $450,000 per year to better fund the program

20. Summary Comments  CFO/CAFO Regulation is evolving  IDEM is working with ISDA and U.S. EPA to develop sensible regulatory approaches to agricultural production and processing  Indiana’s farmers have always been concerned about the environment and the vast majority are good stewards of the environment  A strong economy means farms that are better able to provide excellent environmental protection

21. Questions? Tom Easterly 100 N. Senate Ave. IGCN 1301 Indianapolis, IN 46204 (317) 232-8611 Fax (317) 233-6647 teasterly@idem.in.gov