Indiana Steel Environmental Group January 12, 2011

1. Indiana Steel Environmental GroupJanuary 12, 2011 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

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.

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.

5. Performance Metrics Dec 2010

6. Performance Metrics June 2005

7. Discussion Topics • Budget • Legislation • Rules: • Antidegradation • Greenhouse Gas Permitting • Outdoor Hydronic Heaters • Water Issues including NPDES Permit Issuance • Land Issues including RISC Technical Guidance

8. Budget Request • IDEM’s Current FY 2011 budget is $149,715,844. • IDEM’s Requested FY 2012 budget is $134,650,376. • This represents a 15% decrease in both Federal and State General Funds and a 10% decrease in dedicated funds.

9. 2011 IDEM Legislative Agenda • No fee increase proposals. • IDEM Issuance of NPDES General Permits. • Authorization to pursue delegation for U.S. ACE 404 and U.S. EPA UIC programs. • Define duties and funding for SWMDs. • EQSC study of funding for environmental programs. • IDEM general bill that passed senate last year.

10. Antidegradation • Second Notice Comment Period closed January 30, 2010—31 different commenters • There will be a third notice on the rule as preliminarily adopted

11. Antidegradation • Major Issues Raised • Trigger for Antidegradation Review • What pollutants should be covered (Pollutant of concern) • BADCT • Level of deminimis • Exemptions

12. Antidegradation Rule • Drafting response to comments and revised proposed rule language. • Need to submit rule fiscal analysis at least 66 days before proposed preliminary adoption. • Earliest preliminary adoption possibility is April 2011. • Plan to distribute the proposed rule and response to comments to stake holders at least 60 days prior to preliminary adoption.

13. GHG Air Permits • All permits issued after 1/1/2011 that require PSD review and also increase GHG emissions by at least 75,000 tpy need GHG BACT. • All permits issued after 6/30/2011 that increase GHG emissions by 75,000 tpy need GHG BACT and all sources with GHG emissions of at least 100,000 tpy need operating permits

14. GHG Air Permits • IDEM has used the expedited Section 8 rulemaking process and emergency rulemaking to obtain legal authority to issue the federally required GHG permits starting on 1/3/2011. • We can use the same process to adjust the rule for any changes due to congressional or court action.

15. Outdoor Hydronic Heaters • Rule scheduled for final adoption consideration at the February 2, 2011 Air Pollution Control Board meeting in Lafayette, IN. • The current issue of the Air and Waste Management Association’s Environmental Manager publication has articles on the air pollution impacts of these devices.

16. Potential Regulatory Issues--Air • New 75 ppb 1 hour SO2 Air Quality Standard—Modeling Challenges. • New 100 ppb 1 hour NOx Air Quality Standard. • EPA reconsideration of 0.075 ozone standard—postponed until July 2011. • EPA inaction on PM2.5 redesignation requests.

17. SO2 Design Values Based on 2007-2009 Monitoring Data Standard at 75 ppb June 6, 2010: U.S. EPA Announced a New SO2 Standard set at 75 ppb

18. NO2 Design Values Based on 2007-2009 Monitoring Data January 22, 2010:U.S. EPA Announced a New NO2 Standard set at 100 ppb

20. March 15, 2010: U.S. EPA Proposed a Revised PM2.5 Standard with a range of 11-14 µg/m3 PM2.5 Design Values Based on 2007-2009 Monitoring Data Standard at 15 µg/m3

21. Indiana Water Issues Environmental Group Petition for Withdrawal of Approval of the NPDES Program. Antidegradation General Permits Coal Mines Intake Structures (316(b)) Currently, there are no applicable nationwide standards implementing Section 316(b) for existing power plants. As a result, best technology available (BTA) determinations must be made on a case-by-case basis, using best professional judgment.

22. Potential Regulatory Issues-Water • Antidegradation regulations. • Algae issues and nutrient regulations. • Great Lakes, Gulf of Mexico, Ohio River, Indiana lakes, rivers and reservoirs. • Pesticide General Permit. • Pharmaceuticals and other trace pollutants. • IDEM action on the final four extended permits. • More attention to the Great Lakes.

23. NPDES Permit Backlog Reduction 2005: 263 backlogged permits 2011: 4 backlogged permits List includes: US Midwest. Reviewing Public Comments ArcelorMittal Burns Harbor. Reviewing Public Comments ArcelorMittal Indiana Harbor East. Drafting ArcelorMittal Indiana Harbor West. Drafting. Office of Water QualityPermits

24. Potential Regulatory Issues--Land • RISC guidance and regulations implementing HB1162. • Coal combustion waste regulations. • U. S. EPA to speed up review of pollutant risk evaluations.

25. Thank You Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov