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Environmental Fees March 2007

Environmental Fees March 2007. Thomas W. Easterly, P.E., DEE, QEP IDEM Commissioner. IDEM’s Business is Protecting Human Health and the Environment. Protecting human health and the environment costs money—IDEM spends money to: Issue Permits

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Environmental Fees March 2007

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  1. Environmental FeesMarch 2007 Thomas W. Easterly, P.E., DEE, QEP IDEM Commissioner

  2. IDEM’s Business is Protecting Human Health and the Environment • Protecting human health and the environment costs money—IDEM spends money to: • Issue Permits • Review and approve Long Term Control Plans to address Combined Sewer Overflows • Develop regulations to protect the environment • Petition EPA to recognize that our air quality meets all health based standards • Inspect facilities for compliance

  3. Funding for environmental regulation comes from three sources: Federal Funds– currently 35% State General Funds– currently 27% Dedicated Funds from Users of the Environment– 38% Note: IDEM’s total budget also includes funding for the Excess Liability Trust Fund (ELTF) which reimburses companies for cleaning up leaks of petroleum products Environmental Fees

  4. IDEM’s proposed budget includes no increased fees • The proposed budget is balanced and will allow us to continue to provide current levels of service through the biennium. • The public is asking for improvements in a number of IDEM programs including: • CFO/CAFO (livestock agriculture) inspections • Storm water pollution and erosion control programs • Expedited permits • Water quality improvement projects • Better operation of Wastewater treatment plants

  5. Programs funded by users • I believe the most responsible funding for environmental programs is user-based fees. • I propose increasing fees or establishing new fees to fully support and improve Indiana’s environmental programs. • The Indiana Department of Environmental Management (IDEM) will be working with legislators during the 2007 session to bring our environmental fees to levels that will adequately fund the programs.

  6. Programs funded by users • Incremental move towards fee supported programs • Faster permits, trained staff, quality assessments require fully funded programs • Improved technologies to make doing business with IDEM easier

  7. Last major IDEM fee increase was in 1994 Recent Fee increases adequately fund a few programs: • 2003 the Indiana General Assembly passed a fee for drinking water systems. • 2005 the Excess Liability Trust Fund received an additional $0.002 per gallon and a full $0.01 on special fuels, formerly exempt. • 2006 the Air Pollution Control Board increased Title V air permits by 25%

  8. Recent IDEM Accomplishments • Reduced permit backlogs in all programs by 50%, plan to be current by the end of 2007 • Petitioned EPA to redesignate all communities to attainment for Ozone • Reduced use of outside contracts for core regulatory functions (air permits, ELTF) • Reduced administrative duplication by combining support functions with other state agencies (e.g. IOT, SPD, OLC)

  9. IDEM Goals • IDEM’s overall goal is to “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.” • In order to achieve that goal, IDEM will continue to strive to be clear, consistent and speedy. • In order to meet even higher standards of responsiveness some IDEM programs need more stable funding.

  10. 2005-2007 $240,798,257 2007-2009 $206,249,350 IDEM Budget Comparisons (w/o ELTF) Federal: $57,530,097 (27.9%) Red Federal: $84,618,622 (35.1%) Red General: $61,750,166 (29.9%) Lt. Aqua Dedicated: $86,969,087 (42.2%) Blue Dedicated: $91,318,803 (37.9%) Blue General: $64,860,832 (29.9%) Lt. Aqua

  11. Fee Proposals • NPDES – 79 staff • Fee Revenue: $3.8M • Expenses: $6.2M • Proposed Fee Revenue: $4.75M • Annual Number of permits issued: 340 • Proposed increase is 25%

  12. Fee Proposals • Drinking Water/Wastewater Operator Certification – 6 current staff • Fee Revenue: $146,000 • Current Expenses: $471,000 • Proposed Fee Revenue: $526,000 (would add 3 staff) • Annual Number Certifications/tests issued: 4469

  13. Fee Proposals • Wetland/Water Quality Certification – 7 staff • Fee Revenue: $0 (60% federal funds/40% state funds) • Expenses: $538,000 • Proposed Fee Revenue: $96,900 • Proposed General Permit Fee $100 • Proposed Individual Permit Fee $200 • Annual Number of permits issued: 760

  14. Fee Proposals • Storm-water Fees – 8 current Staff • Fee Revenue: $365,000 • Expenses: $698,000 • Proposed Fee Revenue: $1.4M (add field staff for inspections) • Annual Number of permits issued: 4,050 • Rules 5, 6 and 13 have been funded through fees and enforcement fines

  15. Fee Proposals • Hazardous Waste – 96 staff • Fee Revenue: $1.3M • Expenses: $8M • Proposed Fee Revenue: $4.1M • Permit Review, renewal, modifications and Corrective action plan reviews: 375 • Federal funding (currently) 33% • State funding (currently) 31% • Fee funding (currently) 36%

  16. Questions Please contact either of these staff members with questions or for assistance: Sandra Flum, 232-9479 or sflum@idem.in.gov Bowden Quinn, 233-3835 or bquinn@idem.in.gov

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