IDEM Update NIRPC EMPC January 3, 2008

1. IDEM Update NIRPC EMPC January 3, 2008 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management We Protect Hoosiers and Our Environment

2. Presentation Outline • IDEM Progress and 2008 Legislative Outlook • Wastewater Permitting including: • Barnes Report on BP Permit • Antidegredation rulemaking • Progress in Issuing Permits • Northwest Indiana Air Quality Update We Protect Hoosiers and Our Environment

3. 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. We Protect Hoosiers and Our Environment

4. 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/ We Protect Hoosiers and Our Environment

5. We Protect Hoosiers and Our Environment

6. 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 We Protect Hoosiers and Our Environment

7. Performance Metrics We Protect Hoosiers and Our Environment

8. Performance Metrics We Protect Hoosiers and Our Environment

9. Possible 2008 Legislative Issues • We Expect Property Tax Reform the be the Major Issue in the 2008 Legislative Session • IDEM will request Technical Corrections— • Include authorization to pay for removal of mercury ABS assemblies from end of life vehicles • Remove requirement of IDEM to have an “Office of Laboratory” • Move Lead program from IDEM to ISDH We Protect Hoosiers and Our Environment

10. Possible 2008 Legislative Issues • Technical Corrections— • Allow electronic signatures for environmental compliance reports and permit applications • Reduce work site posting requirements for wastewater operator certifications • Eliminate the requirement that septage haulers obtain two permits—one as a septage hauler and one for land application • Eliminate social security numbers from good character requirements in solid waste law • Clarify Rule Sunset Requirements We Protect Hoosiers and Our Environment

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

12. BP Permit Public Outreach • IDEM considers all stakeholders when making a permit decision. We respond to all comments received and include the responses in the fact sheet before making the final permit decision. • In January, 2007, IDEM, EPA and BP commenced an extraordinary outreach to and consultation with the Northwest Indiana environmental community during the development of the final draft permit We Protect Hoosiers and Our Environment

13. BP Permit Public Outreach • A public comment period on the draft permit was offered from March 16 to May 11, 2007. • A public meeting held in Whiting on April 26, 2007—attended by BP representatives, the environmental community and one citizen. • IDEM received and responded to comments from 46 people before issuing the final permit on June 21, 2007. We Protect Hoosiers and Our Environment

14. BP Permit Public Outreach • IDEM coordinated with EPA to ensure compliance with the Clean Water Act. On April 5, 2007, EPA issued a written notice of no objection concerning the BP Permit. • The 18-day appeal period for the permit ended on July 9, 2007 and no appeal was filed within that period. The permit became effective August 1, 2007 and the permit expires July 31, 2012. We Protect Hoosiers and Our Environment

15. BP Permit Media • Post Tribune Article stating that IDEM’s NPDES permit for BP did not require treatment. • Lee Botts wrote letter to the editor pointing out that the Post Tribune article was not correct • Sunday July 15 Article in Chicago Tribune “BP gets break on dumping in Lake—Refinery expansion entices Indiana” We Protect Hoosiers and Our Environment

16. 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 19th 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. We Protect Hoosiers and Our Environment

17. 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 We Protect Hoosiers and Our Environment

18. 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).” We Protect Hoosiers and Our Environment

19. 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…” We Protect Hoosiers and Our Environment

20. 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…” We Protect Hoosiers and Our Environment

21. 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.” We Protect Hoosiers and Our Environment

22. 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.” We Protect Hoosiers and Our Environment

23. 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 We Protect Hoosiers and Our Environment

24. Future IDEM Actions • IDEM will process an antidegradation regulation • 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 We Protect Hoosiers and Our Environment

25. Antidegradation Rulemaking History • Indiana has had an antidegradation policy for all waters in its Water Quality Standards since the 1970s • IDEM was formed in 1986 • In 1997 IDEM adopted antidegradation implementation procedures for the Great Lakes Basin under EPA’s Great Lakes Initiative • In November 2002, IDEM established an antidegradation workgroup We Protect Hoosiers and Our Environment

26. Antidegradation Rulemaking History • March 1, 2003, First Notice of proposed Antidegradation regulations published—extensive comments received. • March 2003 to April 2005 Work Group Continued to meet • April 1, 2005, Second Notice of proposed Antidegration regulations published—the summary of comments received is 49 pages long We Protect Hoosiers and Our Environment

27. Antidegradation Rulemaking History • In 2005 IDEM formed an internal workgroup to develop recommendations on responses to the public comments received • This group found that even if IDEM could adequately address all of the comments raised, the proposed regulations would be extremely difficult to implement and follow • After evaluating many alternatives, staff recommended a new approach to rulemaking We Protect Hoosiers and Our Environment

28. Antidegradation Rulemaking History • The new concept is more like the Prevention of Significant Deterioration regulations for air pollution • New concept presented to interested parties between August 2, 2007 (here at NIRPC) and November 21, 2007 • Staff is now drafting proposed regulatory language for presentation to interested parties We Protect Hoosiers and Our Environment

29. 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 We Protect Hoosiers and Our Environment

30. Northwest Indiana Air Quality Update We Protect Hoosiers and Our Environment

31. 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) We Protect Hoosiers and Our Environment

32. Ozone Monitoring Trends We Protect Hoosiers and Our Environment

33. Lake and Porter NOx and VOC We Protect Hoosiers and Our Environment

34. Lake and Porter Counties Redesignation • All of Indiana except Lake and Porter Counties has been redesignated to attainment for the ozone standard • The Lake and Porter Redesignation was Submitted to EPA on September 12, 2006 • U.S. EPA proposed approval –May 31, 2007—Comment Period Ended July 2, 2007. • Illinois filed comments strongly objecting to Indiana becoming attainment “because of Indiana’s impact on Illinois air quality” We Protect Hoosiers and Our Environment

35. Lake and Porter Counties Redesignation • A recent California court decision partially reinstated the 1-hour ozone standard • EPA is currently evaluating methods to comply with the court decision. • High Ozone Levels at the Whiting Monitor on 5/22, 6/11, 6/15, 6/16 and 6/17. The 4th high value appears to be 0.088, the critical value for this monitor was 0.086, we apparently have calculated nonattainment We Protect Hoosiers and Our Environment

36. ChiWaukee Monitor We Protect Hoosiers and Our Environment

37. Michigan City Monitor We Protect Hoosiers and Our Environment

38. Hammond Monitor We Protect Hoosiers and Our Environment

39. Holland Michigan Monitor We Protect Hoosiers and Our Environment

40. Controlling Chicago Monitor We Protect Hoosiers and Our Environment

41. What Does Redesignation Mean for the Area? • Area redesignated to attainment and classified maintenance. • Different New Source Review permitting requirements. • Controls that lead to attainment must remain in place. • If an unexpected re-violation of the standard occurs, warning and action level response triggers in place. We Protect Hoosiers and Our Environment

42. Additional Measures to Provide Margin of Safety • Portable Fuel Container rule • Off-road engine controls • Auto Refinishing • Solvents and Degreasers • Consumer/Commercial Products • Automotive and Industrial Maintenance (AIM) Coatings • Outdoor wood furnaces We Protect Hoosiers and Our Environment

43. PM 2.5 Monitoring Trends NOTE: Only Lake and Porter counties have been designated nonattainment for PM under the annual PM 2.5 standard We Protect Hoosiers and Our Environment

44. Lake and Porter PM PM2.5 Redesignation • Partial nonattainment area redesignation request • 2005 Base Year • 2020 Planning Horizon and Conformity Budget • Draft is on my desk for final review • Public notice/comment January 2008 • Final Submittal to EPA– March 2008 We Protect Hoosiers and Our Environment

45. New 24 Hour PM2.5 Standard We Protect Hoosiers and Our Environment

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