Indiana Department of Environmental Management: Budget Challenges and Response Strategies

1. IDEM 2010 OutlookNIRPC Environmental Management Policy Committee January 7, 2010 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

2. Indiana State Budget Challenges • Indiana’s most recent revenue forecast is $1.88 Billion below the budgeted amount for the FY 2010-2011 biennium. • State Agencies reduced by 20+% • Higher Education reduced by 6% • K-12 Education reduced by 3% • Budget surplus will need to be spent

3. Response to Reduced State Income • Eliminated 2009 & 2010 raises. • Strategic Hiring Review—Using attrition to reduce spending. • Reduce/eliminate grants, contracts, etc. • Restrictions on travel and purchasing. • Will maintain essential State services.

4. New IDEM Budget Actions • Returning staffing to January 2005 levels through attrition. • Moving most of Shadeland staff to IGCN and renegotiating the lease. • Canceling or renegotiating a number of service contracts. • Voluntary unpaid leave program.

5. IDEM Staffing Levels

6. IDEM Grant and Loan Program Suspension • Grants and Loans from the following non-reverting funds were suspended as of December 19, 2008: (as listed in budget report to legislature) • 2580 Recycling Promotion Assistance Fund • 2530 Solid Waste Recycling Fund • 2640 Waste Tire Fund

7. IDEM’s Mission IDEM is responsible for protecting human health and the environment while providing for safe industrial, agricultural, commercial and governmental operations vital to a prosperous economy.

8. How Does IDEM Protect the 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. Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. Educate people on their environmental responsibilities.

9. Performance Metrics Dec 2009

10. Performance Metrics June 2005

11. 2009 Environmental Laws • SB 202—Transfers the lead based paint program from IDEM to ISDH. • SB 221—Confined Animal Feeding • Requires CAFOs to also meet Indiana CFO requirements • Establishes good character disclosure for new or expanding CFOs • Notify all people within ½ mile of a new or expanding CFO

12. 2009 Environmental Laws • HB 1589 Electronic Waste • Requires manufacturers of video display devices to recycle covered electronic devices that weigh at least 60% of the total weight of video display devices sold during the most recent 12 month period and prohibits some landfill disposal • Requires manufacturers, collectors and recyclers to register with IDEM • Requires reports and fees

13. 2009 Environmental Laws • HB 1162 Environmental Matters • Environmental Restrictive Ordinances • Environmental Restrictive Covenants • Prospective Purchaser Protection for Petroleum Contamination • Recognition of Institutional Controls when evaluating corrective action options • Allows subsequent conditions in project completion decisions

14. 2009 Environmental Laws • Total Maximum Daily Loads (TMDLs) that address pollutants not listed on the 303(d) list must be public noticed before the new pollutant can be included in the TMDL • Waters designated as Exceptional Use Waters are now Outstanding State Resource Waters • Requires the Antidegradation process to include a one time review of general permits • Clarifies that a person must have both any required local approvals and an IDEM permit

15. IDEM Enforcement * 2009 data is complete through November 30. 2009 Violation Letters do not include those issued directly by the programs.

16. Criminal Pleas and Convictions • Erler Industries, North Vernon, IN, Falsified Title V Certifications • $1,000,000 criminal fine • $25,000 in restitution to Midwest Environmental Enforcement Association • $100,000 in restitution to IDEM (hybrid vehicles) • Develop an environmental training program • Implement a zero tolerance policy for violations • Public apology in the local newspaper

17. Criminal Pleas and Convictions • Herb Corn—Rochester Indiana POTW Operator, falsification of DMRs, MROs and NPDES permit renewal application. • Sentenced to 12 months in federal prison • Alan Hersh—Hassan Barrel RCRA felonies (Fort Wayne). • Sentenced to 15 months plus restitution • Wainwright, Gary, IN—gun charges • Sentenced to 108 months in federal prison

18. Agency Initiatives • Virtual File Cabinet—electronic filing system with over 59,000,000 pages now online. • TEMPO—Enterprise wide electronic integration of all IDEM information—part of the infrastructure to receive and process electronic permit applications and reports: • Two programs accepting electronic submittals, 401 Certifications and Community Right to Know.

19. Agency Initiatives • EDMR—Electronic reporting of waste water discharge monitoring reports. • Currently available for all facilities. • EPA is considering a rule to require electronic reporting for all DMRs. • Agency-wide adoption of Continuous Improvement using Lean/Kaizen and other methodologies to improve processes and increase efficiency.

20. The New EPA • Administrator Jackson’s Stated Priorities: • Environmental Justice • Children's Health • Climate Change • The Initiatives we observe include: • Air Toxics Monitoring at Schools • Reemphasis of Enforcement and publishing of compliance information • Progressing of Greenhouse Gas Regulations

21. Air Accomplishments Entire State has met the 0.08 ppm Ozone air quality standard since the 2006-2008 period, and we are working with USEPA to have Lake and Porter Counties designated attainment. Entire State also meet the 0.075 Ozone air quality standard for years 2008 & 2009. Entire state met current PM2.5 Air Quality Standards for the period 2007-2009.

22. Air Quality Update Indiana is currently in attainment for all NAAQS but: EPA keeps raising (in this case lowering) the bar! Air Quality Standards At the end of 2009, all monitors in Indiana measured attainment for all NAAQS for the first time since Standards were established. How low will they go?!?!

23. Ozone Insert new graph from Catherine

24. Current Status of 8-Hour Ozone Areas through 2009 0.085 ppm

25. New 8-Hour Ozone Standard at 0.075 ppm Based on 2007-2009 monitoring data

26. Current Status of Annual PM 2.5 Areas (15 ug/m3) End of 2008

28. 24-Hour PM 2.5 (35 ug/m3) designations to be based on data from 2006-2008 28

30. Status of 2008 revised Lead Standard 0.15 ug/m3 30

31. Status of Redesignations • Ozone • Lake and Porter Counties • Redesignation petition originally submitted in September 2006 • Revised petition using ’06-’08 monitoring data at EPA, proposed • approval expected any day • Dearborn County (Lawrenceburg Township) • Redesignation petition under development • Final submission expected in early 2010 • PM2.5 • Lake and Porter Counties • Redesignation petition submitted to U.S. EPA on April 3, 2008 for • approval • EPA prepared to proceed now that Chicago portion of MSA meets std • Southwest Indiana • Redesignation petition submitted to U.S. EPA on April 3, 2008 for approval • U.S. EPA is in the process of drafting a proposed notice of approval • Central Indiana • Redesignation petition submitted to U.S.EPA on October 20, 2009 for approval

32. MOVING TARGETSStatus of Review of NAAQS

33. Indiana Air Rulemaking Update These rules will assist Indiana in maintaining compliance with the current ozone standard, attain the new ozone standard, and help address interstate transport: • Degreasing - Extend Statewide • Consumer/Commercial Products - Add Statewide • Architectural and Industrial Maintenance (AIM) Coatings - Add Statewide • Stage I Vapor Recovery - Extend Applicability • Auto Refinishing - Extend Statewide

34. Indiana Air Rulemaking Update Outdoor Hydronic Heater Rule Second Notice Published in Indiana Register on January 6, 2010 Rule First Noticed in 2005 Reviews by EQSC and EPA/NESCAUM Model Rule Proposed Rule will require new units to meet emission limits Proposed Rule will require existing units that do not meet the proposed emission limits to install smoke stacks and cease operations in the warmer part of the year

35. BP Whiting Title V Permit Objection IDEM Construction Permit Issued May 1, 2008 after extensive USEPA review Petitioners Request for Permit Objection filed with USEPA on June 18, 2008 EPA signed the Objection Order October 16, 2009 IDEM plans to meet all of EPAs objections

36. Office of Water Quality Priorities Anti-Degradation Rule Steel Mill Permits Rethinking OWQ Preparing for new Drinking Water Rules Watershed Initiative NPDES Compliance: Small Systems and SSOs Virtual File Cabinet Tempo Expedited Compliance Initiative Compliance Assistance

37. NPDES Permits. Combined Sewers—97 IDEM lead and 3 EPA lead complete. Seven EPA lead communities left: Anderson, Elkhart, Evansville, Gary, Hammond, Mishawaka, South Bend. Dredging—West Branch Grand Cal in progress. Blue Green Algae. Office of Water QualityActivities

38. NPDES Permit Backlog Reduction 2005: 263 backlogged permits 2009: 6 backlogged permits List includes: USS Gary Works. Public Noticed. Comment Period Ended. Next step is issuance. US Midwest. Under EPA review. Arcelor Mittal Burns Harbor. Under EPA review Arcelor Mittal Indiana Harbor East. Drafting. Arcelor Mittal Indiana Harbor West. Drafting. Hoosier Merom. Drafting. Office of Water QualityActivities

39. Office of Water QualityActivities Blue Green Algae Blue Green Algae in Central Indiana Reservoirs This Algae known as Cynobacteria that can produce toxins Microcystins - liver, tumor promotor Saxitoxins - neurotoxin Anatoxin-a - neurotoxin Anatoxin-b - neurotoxin Nodularins - liver, tumor promotor Lipopolysaccharide - inflammation Cylindrospermopsin – liver other organs

40. Office of Water QualityActivities Blue Green Algae Center for Earth and Environmental Science, DNR, ISDH, IDEM Collaboration. Dr. Lenore Tedesco from the Center for Earth and Environmental Science collecting and analyzing samples in Geist, Morse, and Eagle Creek Reservoirs. IDEM Monitoring Upper Fall Creek Watershed IDEM updates conditions in reservoirs and posts to website: Idem.in.gov/algae EQSC Report calls for expanded monitoring.

41. Office of Water QualityRulemaking: Antidegradation What is Antidegradation? Federal requirement that allows for discharge of pollutants to water under specific circumstances. Indiana law defines how we will make those allowances and the rulemaking addresses implementation of the law.

42. Office of Water QualityRulemaking: Antidegradation Where does this rule apply? The current antidegradation rule only applies to the Great Lakes basin. The proposed Draft Rule expands the antidegradation procedures to apply to all waters across the entire state;

43. Office of Water QualityRulemaking: Antidegradation What will this rule do? Increases public opportunities for information and input; Protects current "fishable/swimmable“ and other existing uses of waters; Allows for the issuance of legal permits for discharges to water; and, Does not allow the violation of water quality standards.

44. What is the process for this rule? IDEM held Stakeholder meetings over two years and drafted rule language. IDEM held four public meetings. Draft rule language was ‘second noticed’ for 45 days in the December 16, 2009 Indiana Register. After public notice, IDEM summarizes comments, may make changes to the rule Draft Rule will be presented to the Water Pollution Control Board for preliminary/final adoption. EPA will review the rule as well. Office of Water QualityRulemaking: Antidegradation

45. Office of Land Quality Activities • Revisions to RISC • ELTF Rule Revision • CFO Rule Revisions • Clean Yard Program • Compliance Assistance (W.A.R.N.)

46. Revisions to RISC Risk HEA 1162 Focus shifted to managing risk Greater consideration of engineering and institutional controls Removal still an option Institutional Controls Registry Environmental Restrictive Covenants Environmental Restrictive Ordinances www.in.gov/idem/files/institutional_controls_registry_report.pdf

47. ELTF Rule Revisions Updating Excess Liability Trust Fund Rule Revising allowable costs Clarifying claim process Clarifying substantial compliance definition Second Notice with proposed language Oct 09 Reviewing comments and making revisions Financial Assurance Board meeting

48. CFO Rule Revisions Federal CAFO Rule Changes Eliminate General NPDES permits for CAFOs CFO Rule Revisions to incorporate CAFO’s Significant Topics for Consideration Phosphorus limits on land application Winter pump down Mortality management Public notice requirements

49. Clean Yard Program ≈ 500 Auto Salvage Yards in Indiana Initial compliance evaluation (multi-media) Workbook, 3 workshops, DVD Criteria for Clean Yard Recognition (50) 33 submitted return to compliance plans Gold Level Awards (3) Follow-up on non-participants

50. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov