1. Corporate Environmental Enforcement Council June 3, 2009 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management 1

2. 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. 2

3. Pilot 2006 Environmental Performance Index  Yale Center for Environmental Law & Policy Yale University  Center For International Earth Science Information Network (CFIESIN) Columbia University  http://www.yale.edu/epi/ 3

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5. 5 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

6. 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. Enforce against people who exceed their permit levels or violate regulations. Educate people on their environmental responsibilities. 6

7. Office of Enforcement 200320042005200620072008 Referrals607467547591606437 Violation Letters5,2224,9804,2684,0243,9584,092 Notices of Violation457318202427420321 Agreed Orders349314258417372364 Commissioner’s Orders15641383932 Dismissals1214448465740 Complies/Closed308312317577568386 7

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9. IDEM Enforcement Changes Returned enforcement function to the air, water and land programs and eliminated the separate office of enforcement. Publishing our Compliance and Enforcement Response Policy as a Non-rule Policy Document to facilitate understanding of the enforcement process. 9

10. Reasons for Enforcement Change No improvement in compliance rates in 4 years. EPA HQ told me both enforcement models (separate office or in program) are used effectively. Enforcement was regularly “waiting on program staff” under the control of other managers. Unpublished enforcement policies resulted in unexpected actions—too timid and too aggressive. 10

11. Compliance and Enforcement Response Policy (CERP) CERP was last revised in 2003 and was an internal IDEM document. In order to meet our goal of transparency we decided to update the CERP and publish it as a Non Rule Policy Document under IC 13-14-1- 11.5. Draft signed for 45 day public comment period on 10/31/08. 11

12. Criminal Convictions Wabash Environmental Technologies and Derrik Hagerman—Clean Water Act felonies. Sixty months of imprisonment and $237,000 in restitution (Terre Haute). Miller Environmental and Anthony MuCullough—Clean Water Act felonies. Four months imprisonment and $510,000 in penalties (Shelbyville and Rushville). 12

13. Criminal Convictions Richard Reece—RCRA felonies. Six months in half way house, six months home detention and $60,000 restitution (Muncie). Hassan Barrel and Alan Hersh—RCRA felonies. Fifteen months of imprisonment plus $2.7 million in restitution (Fort Wayne). 13

14. Criminal Convictions Erler Industries—Clean Air Act Criminal Pleas for false reporting (North Vernon). – $1,000,000 Criminal Fine. – $100,000 to IDEM for Hybrid Vehicles. – $25,000 to the Midwest Environmental. Enforcement Association for training. Individual Operators and Laboratories—False reporting cases. 14

15. Agency Initiatives Electronic Permits and Reporting – Virtual File Cabinet—electronic filing system with over 42,500,000 pages now online. – TEMPO—Enterprise wide electronic integration of all IDEM information—part of the insfrstructure to receive and process electronic permit applications and reports Two programs accepting electronic submittals, 401 Certifications and Community Right to Know 15

16. Agency Initiatives EDMR—Electronic reporting of waste water discharge monitoring reports. – Currently being piloted by about 100 facilities. – Expect to be available for all facilities in June of 2009. Active assistance to facilities that announce layoffs and closing to prevent environmental Incidents. 16

17. Challenges--2009 New Administration—Possible new directions: – Greenhouse Gasses. – Great Lakes Protections. Wise Stewardship of Economic Stimulus Funds. Final Resolution of Unresolved Issues Including: 17

18. US Courts Overturning Rules 2007—Industrial, Commercial and Institutional (ICI) Boiler MACT—directly impacted about 10 sources with coal fired boilers May 2008—Clean Air Mercury Rule (CAMR) impacted all Power Plants July 2008—Clean Air Interstate Rule (CAIR) impacted all Power Plants and most Indiana air pollution strategies 18

19. BP Air Permit—Indiana 38 day public comment period, 342 written comments received Public meeting and hearing – 1,200 attended, 44 commented Construction permit issued May 1 and operation permit issued June 16 Multiple appeals of these permit decisions to OEA, Federal Court and the EPA Administrator 19

20. NRDC Statement on Tar Sands “BP’s decision to tap into the Canadian wilderness is ‘based on addiction, not reality,’ says Ann Alexander, senior attorney at the Natural Resource Defense Council (NRDC), a nonprofit environmental group. ‘Tar sands crude oil is dirty from start to finish. It’s bad enough that [BP is] fouling our natural resources here in the Midwest, but it’s completely destroying them up in Canada. There are good sources of energy we can turn to that don’t involve turning entire forests into a moonscape.’” 20

21. Duke-Edwardsport Power Plant First commercial Integrated Gasification Combined Cycle (IGCC) plant in the U.S. 44 day public comment period Public meeting and hearing – over 600 citizens attended Construction permit issued January 25 and operation permit issued in March Permit decision appealed 21

22. Company Communications Styles Minimum Required Communications – Require formal information requests from government – Litigation Response Cooperate But Don’t Volunteer Actively Lead The Discussion – Actions must match words 22

23. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov 23