Environmental Quality Service Council IDEM Report – August 15, 2012

1. Environmental Quality Service CouncilIDEM Report – August 15, 2012 Thomas W. Easterly, P.E., BCEE, QEP Commissioner, Indiana 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 July 2012

6. Performance Metrics June 2005

7. Permits--Percent of Statutory Days

8. Comparison of Region 5 States Permitting Program Status compiled by U.S. EPA Region 5 for July 26, 2012 State Environmental Directors Meeting

10. Status of All Facilities Covered by Current Permits (as of 7/6/12) Status of All Facilities Covered by Current Permits (as of 7/6/12) Status of All Facilities Covered by Current NPDES Permits (as of 7/6/12)

11. IDEM Backlogs Eliminated • On January 10, 2005, there were 263 administratively extended NPDES permits and 289 unissued Title V permits. All of those have been issued and IDEM now issues permits using less than 85% of the statutorily allowed days. • On January 10, 2005, there were 250 unresolved enforcement cases over 2 years old. Now the oldest referral on our tracking list is June, 2010.

12. Office of Water Quality NPDES Permit Backlog Reduction 2005: 263 administratively extended Permits. 2012: 6 administratively extended permits One renewal application submitted late. All extended permits have been public noticed. Four major industrial power plant permits under final review after public notice and will be issued within next three weeks. One minor municipal. One major municipal.

13. 108 communities with combined sewers. 102 communities have IDEM approved LTCPs. 6 communities remain to have their LTCPs developed and approved.  Of those, 3 are in an enforceable mechanisms to get their LTCPs developed, approved and implemented, and 3 are currently in negotiations with EPA and IDEM to enter into an agreeable enforcement mechanism for the development and implementation of LTCPs. 34 communities have completed the implementation of their CSO controls. Office of Water QualityCombined Sewer Overflows (CSOs)

14. Water Antidegradation • (Water) Antidegradation—Applies to new or increased loadings of regulated pollutants due to deliberate actions. • There are exemptions for: • Short term temporary discharges. • De minimis discharges (<10% of available capacity). • Changes in loadings covered by an existing permit.

15. Water Antidegradation • Three basic tests: • Is the new loading necessary? • Is the proposed treatment (discharge) level appropriate? • Do the social and economic benefits of the activity outweigh the environmental degradation? • Additional protection requirements for Outstanding State Resource Waters.

16. Office of Water QualityBlue Green Algae Initiative Concerns from citizens around Geist Reservoir in 2007, Senator Gard urged agencies to investigate. 2009 EQSC report recommended expanded sampling of lakes. IDEM is sampling at 13 locations at 11 DNR managed lakes this year.

17. Office of Water QualityBlue Green Algae Initiative Chain O’Lakes State Park - Sand Lake Fairfax State Recreation Area on Monroe Lake Hardin Ridge U.S. Forest Service Recreation Area on Monroe Lake Hardy Lake State Recreation Area Lost Bridge West State Recreation Area on Salamonie Lake Miami State Recreation Area on Mississinewa Lake Mounds State Recreation Area on Brookville Lake Paynetown State Recreation Area on Monroe Lake Pokagon State Park - Lake James Potato Creek State Park - Worster Lake Quakertown State Recreation Area on Brookville Lake Raccoon State Recreation Area on Cecil M. Hardin Lake (Raccoon Lake) Whitewater Memorial State Park - Whitewater Lake

18. Office of Water QualityBlue Green Algae Initiative Citizens Water also samples at: Eagle Creek Reservoir Geist Reservoir Morse Reservoir The Center for Earth and Environmental Science at IUPUI samples Patoka Lake monthly at five sites. All results and health warnings are posted at http://www.in.gov/idem/algae/

19. Fish Tissue Mercury

20. Fish Tissue Mercury • Mercury emissions in Indiana have decreased by approximately 50% over the past 14 years. • Measured mercury deposition has decreased by 7% during this time. • In spite of these reductions, there is no apparent change in mercury fish concentrations in Indiana.

21. Fish Tissue Mercury • U.S. EPA’s “acceptable” fish mercury levels are 0.3 mg/kg which is 300 ppb. • While the average fish tissue mercury levels in Indiana have not changed, they are less than one half of this level. • Indiana has historically called a stream impaired for mercury if a single analytical result (average of 3 fish) exceeded 300 ppb.

22. Fish Tissue Mercury • At the end of 2010, U.S.EPA issued new guidance on the proper interpretation of the fish tissue data. • U.S.EPA’s guidance indicates that a properly calculated average mercury value is the appropriate interpretation of the limit. • IDEM has reevaluated its mercury data using the U.S.EPA guidance.

23. Fish Tissue Mercury(Note: Lake data does not include Lake Michigan)

24. Fish Tissue Mercury(Note: Lake data does not include Lake Michigan)

25. U.S. EPA Mercury Air Toxics Rule (MATS) Final Rule Effective: April 16, 2012 • Annual rule cost $9.9 billion. • Annual rule HAP benefit $5,000 to $6,000,000 (0.00209 IQ points per exposed person or 510.8 IQ points per year in US out of 31 billion IQ points). • Rule cost is between $1,650 and $1,980,000 per $1 of HAP benefit. • Estimated annual co-benefits $53 to $140 billion.

26. Current Air Quality Status • At the end of 2009, all of Indiana met every currently effective NAAQS for the first time since NAAQS were established in the 1970’s. • IDEM has succeeded in working with U.S. EPA to have all of the state designated as attainment for those pollutants except: • Central Indiana PM2.5 • Clark and Floyd counties PM2.5

27. New Air Quality Standards • Since the end of 2009, new air quality standards have resulted in U.S. EPA designating the following new nonattainment areas: • Lake and Porter counties Ozone (2008 standard) • Lawrenceburg Township (Dearborn County) Ozone • City of Muncie Lead • All monitors in Indiana currently meet the 100 ppb short term Nox standard established in 2010. • A number of townships in seven counties will likely be designated as nonattainment for the 1-hour 75 ppb SO2 standard established in 2010.

28. NWI 75 ppb OZONE DESIGNATION • September 22, 2011, U.S. EPA announces it is proceeding with ozone nonattainment designations. • December 9, 2011, U.S. EPA notifies Governor Daniels that all of Indiana will be designated attainment except Lawrenceburg in Dearborn County.

29. NWI 75 ppb OZONE DESIGNATION • January 31, 2012, U.S. EPA notifies Governor Daniels that due to data provided by Illinois on December 7, 2011; Lake, Porter and Jasper counties will be designated as nonattainment for ozone. • April 13, 2012, Indiana sends package explaining why Lake, Porter and Jasper counties should be designated as attainment.

30. NWI 75 ppb OZONE DESIGNATION • Reasons for Indiana ozone attainment recommendation: • A single monitor out of 22 apparently exceeded the standard by 0.4 ppb (0.0004 ppm). • Illinois caused the violation by discontinuing full implementation of its automotive inspection program in 2008 without making a 110 (l) demonstration, thereby violating its SIP and the Clean Air Act.

31. NWI 75 ppb OZONE DESIGNATION • Milwaukee, which is designated as attainment, has a higher contribution to the violating monitor than Lake County or Porter County. • On May 31, 2012, Administrator Jackson signed the nonattainment designation for the Chicago Area including Lake and Porter counties in Indiana—Milwaukee remains designated as an attainment area.

32. NWI 75 ppb OZONE DESIGNATION • Remedies being implemented: • Petition court for reconsideration of nonattainment designations—July 19, 2012. • Petition court for a stay of the designations—August 8, 2012. • Petition U.S.EPA to reconsider the May 31, 2012 designations—August 10, 2012. • Ask impacted congressional delegation for help.

33. Why is Illinois I & M Key? • Beginning in 2007, Illinois went to the OBD inspection system which exempts 1968 through 1995 vehicles from inspection. • Data from Indiana’s system shows that inspection of 1968 through 1995 vehicles accounted for 67% of the HC, 85% of the NOx, and 79% of the CO reductions in 2008.

35. Sulfur Dioxide Design Values 2002-2011 Compared to 2010 1-hour Standard of 75 ppb

36. Sulfur Dioxide Annual 99th Percentile Values 2000-2011

37. 2010 Sulfur Dioxide Standard Nonattainment Designation Recommendations

38. 2008 Lead Standard Nonattainment Designations

39. Protection of Downwind States • In 2005 a number of counties, including three in Indiana, did not meet all ozone and PM2.5 air quality standards. U.S. EPA projected that over 100 counties would still not meet standards by 2012. • By the end of 2010 air quality in Indiana and the rest of the country had improved to meet the Ozone and PM2.5 air quality standards addressed by CSAPR (except for two areas impacted by local sources).

40. Protection of Downwind States

41. CAIR/Transport Rule/CSAPR IDEM expected to meet the Transport Rule statewide caps for 2012 without additional controls, CSAPR reduced those caps by 29%--not currently achievable. IDEM expected that we would need one current project completed and another source controlled to meet the 2014 caps. CSAPR reduced the caps by 20%. CSAPR annual cost estimated to be $2.4 billion.

42. CAIR/Transport Rule/CSAPR Success to Date: On December 30, 2011, the DC Circuit Court of Appeals issued a stay of CSAPR and a hearing on the merits of the appeals was held in April—no decision yet. Cost of Success: U.S. EPA placed a hold on the PM2.5 attainment designation for the Indianapolis Area which had been sent to the Federal Register, but not published.

43. CAIR/Transport Rule/CSAPR • The State of Indiana has filed three actions to respond to CSAPR: • A petition to reconsider the rule with U.S. EPA. • A petition for judicial review of the rule with the DC Court of Appeals. • A request for a stay of the rule with the DC Court of Appeals. • We are also working with LA, OH, TX and WV to advocate reconsideration of the rule.

44. Air Quality Compared to CSAPR Goals 2008 to 2010 Attains Does Not Meet the PM Standards Does Not Meet the Ozone standard Does Not Meet the Ozone and PM Location of the State Capitals State Boundaries

45. State of the Air Status 2008 to 2010 Attains Does Not Meet the PM Standards Does Not Meet the Ozone standard Does Not Meet the Ozone and PM Location of the State Capitals State Boundaries

46. CO2 (Greenhouse Gasses) The National Academy of Sciences report, “America’s Climate Choices” recommends that actions be taken now to start reducing U.S. greenhouse gas emissions to levels between 50% and 80% below 1990 levels. • Achieving an 80% reduction from 1990 levels would require a 81.4% reduction from 2009 levels. • If we converted all U.S. fossil fuel use from coal and oil to natural gas, we would achieve a 23.9% reduction from 2009 levels.

47. CO2 (Greenhouse Gasses) • The remaining emissions would need to be reduced by 73.8% to reach the 80% target. • Apparent choices are: • Energy conservation. • Increasing non-hydro renewable energy sources from the current 5.5% market share. • Carbon sequestration. • Nuclear electricity. • Is it possible to achieve the additional 73.8% reduction?

48. CO2 (Greenhouse Gasses) • This spring, the Environmental Council of the States (ECOS) passed resolution 12-1 “Challenges of Achieving Significant Greenhouse Gas (GHG) Emissions Reductions”. • The resolution requests that the U.S. EPA develop one or more scenarios that will produce an 80 percent reduction in GHG emissions nationally, from a 2005 baseline, in 2050 or beyond; and to conduct an analysis of the costs and the benefits associated with each such scenario along with an estimate of the costs and benefits of not obtaining these GHG reductions.

49. Office of Air QualityAir Monitoring • OAQ operates 81 air monitoring sites throughout the State. • Total data points generated by OAQ every year = 2,548,160. • The Indiana Network Description is located at… http://www.in.gov/idem/files/air_ambient_2013_network_review.pdf

50. Office of Air QualityMint Farms—HEA1451 • There are 16 Mint Farms across Northern Indiana. • The farms produce a concentrated mint oil extract by steam distillation and separation of mint oil from the mint plant itself. • No emission factors existed to determine Volatile Organic Compound (VOC) emissions for air permit applicability. • House Enrolled Act No. 1451 required that a study be conducted of the actual and potential air emissions from the distillation of mint.