1. IDEM Update Indiana Steel Environmental Group July 9, 2015 Thomas W. Easterly, P.E., BCEE Commissioner IN Department of Environmental Management 1

2. IDEM’s Mission Protecting Hoosiers and Our Environment While Becoming the Most Customer-Friendly Environmental Agency 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. 2

3. How Does IDEM Protect Hoosiers and Our Environment? Develop regulations and issue permits to restrict discharges to environmentally safe levels. Inspect and monitor permitted facilities to ensure compliance with the permits. 3

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. Clean up contaminated sites to eliminate public exposure to toxics and return properties to productive use. 4

5. Performance Metrics March 2015 ResultTargetsComments Quality of Hoosiers' Environment % of Hoosiers that live in counties that meet air quality standards 91.00100%80% Muncie Lead; Ozone in LaPorte County; Sulfur Dioxide in parts of Daviess, Marion, Morgan, Pike and Vigo Counties % of CSO Communities with approved programs to prevent the release of untreated sewage 98.17%100%90% 98+9 (107) out of 99+10 (109). Not Gary or Edinburgh % of Hoosiers that receive water from facilities in full compliance with safe drinking water standards 99.69%99%95% Turbidity Violations at Jasper, Lowell and Stucker Fork Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute* Land39,38752.42458,591 61,675 statutory Air39,95748,08053,737 56,565 statutory Water32,96263,72571,222 74,970 statutory * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards* Inspections97.55%97%75% Self reporting95.77%99%95% Continuous monitoring (COM)99.81%99.9%99.0% * Tracks observations and not just inspections 5

6. 6 Performance Metrics June 2005 Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers in counties meeting air quality standards 61%100%80% 12 counties & 2,408,571 of 6,195,643 above standard % of CSO Communities with approved programs to prevent the release of untreated sewage 4%100%20%75% by 2007 is goal Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute* Land 100,01366,56586,864 Air 511,000207,000385,000 Water 301,00048,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards* Inspections 95.46%97%75% Self reporting 97.11%99%95% Continuous monitoring (COM) 99.19%99.90%98.95% * Tracks observations and not just inspections Organizational Transformation Budgetary agency dollars spent on key outside contracts for core agency functions. Dollars spent on outside services per year $6,179,367$0$3,447,017

7. 7 Permits--Percent of Statutory Days

8. Best in NPDES Permitting 8

9. 2 nd Best in Title V Permits 9

10. 10 Water Quality Indiana Combined Sewer Overflow Status

11. NPDES General Permits Like other states, Indiana issues general permits for a variety of activities. Issuing general permits is efficient and fast. Indiana General Permit Terms and Conditions are currently embedded in rule. 11

12. NPDES General Permits U.S. EPA told IDEM that embedding general permits in rule had to change. –Petition for Withdrawal of NPDES program. Rules Board members conflict of interest. Permits never expired, so they were not renewed. IDEM is in the process of issuing general permits administratively. –Rule change required. –Permits must be written. 12

13. NPDES General Permits IDEM has public noticed 5 general permits. –Sand and Gravel –Hydrostatic Testing of Commercial Pipelines –Noncontact Cooling Water –Petroleum Products Terminals –Ground Water Petroleum Remediation Systems 13

14. NPDES General Permits IDEM is in the process of changing the general permit rules to remove the terms and conditions of the 5 general permits we are ready to issue administratively. We asked the Environmental Rules Board to final adopt the rule changes at the July 8, 2015, board meeting. 14

15. NPDES General Permits IDEM has not yet drafted storm water general permits for construction, industrial activities, MS4 entities, or coal mines. When IDEM drafts these general permits, they will need to be approved by U.S. EPA. IDEM will share proposed draft permits with stakeholders, and conduct public meetings prior to formal proposal of the permits. 15

16. Operator Certification Concerns: –Low passing rates on water and wastewater exams. –Exam Administration Currently offered only twice a year. Exams proctored by IDEM employees. Resource strain. Slow delivery of results. 16

17. WW Operator Certification Exams New System –Offer exam through Ivy Tech Community College and IDEM. –Test administered electronically. –Ivy Tech has over 25 testing centers. –Ivy Tech offers exam times several times a week. –Results are available immediately. –45 people have taken the exam at Ivy Tech locations around the state. 17

18. How does it work? Apply to IDEM to take the exam with $30 fee. Receive acceptance letter. Log-on to Ivy Tech to arrange a test location and date. Send Ivy Tech $30 convenience fee. Take exam. Professional Licensing Agency sends Operator License. Must reapply to IDEM to retake exam. WW Operator Certification Exams 18

19. U.S. EPA’s proposed rule would require electronic submittal of: DMRs General Permit NOIs, NOTs, No Exposure Exclusions SSO or bypass events Pretreatment Reports CAFO Annual Reports Annual Reports from biosolid generators MS4 Annual Reports NPDES Electronic Reporting Rule 19

20. NPDES Electronic Reporting Rule Time Frames –One year from effective date, 90% of DMRs must be received from permit holders electronically. –Two years from the effective date, 90% of all other reports must be received electronically. 20

21. IDEM suggests that you do not wait for the federal rule to pass. If you sign up with IDEM now, your facility can become familiar and comfortable with NetDMR before it is a requirement! If operators sign up for NetDMR now, IDEM will give 2 CEU credits. IDEM NetDMR Electronic Reporting 21

22. NPDES Electronic Reporting Rule How many have signed up already? –675 NPDES permit holders now use NetDMR. –39% of all NPDES permit holders. –58% of major dischargers use NetDMR. –56% of CSO communities use NetDMR. 22

23. 23 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 was successful in working with U.S. EPA to have all of the state designated as attainment for those pollutants except: –Clark and Floyd Counties PM 2.5

24. 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 24

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33. 2015 Legislation HB 1350—IDEM’s General Improvements –Allows variances for all programs to be issued for up to five years. –Allows IDEM to require electronic reporting. –Allows the Ivy Tech fee for operator certification exams. –Clarifies the wetland in-lieu fee program requirements. –Adjusts various reporting and fee dates. 33

34. 2015 Legislation SB 311—Clarifies cost recovery for IDEM oversight of clean up of contaminated property. SB 312—Enhanced Drinking Water Protection. –Requires surface water quality threat minimization and response plan for public water supplies. –Requires one-time registration of above ground tanks, not otherwise reported to government agencies, in the critical zone of concern. 34

35. Federal Initiatives to Watch President’s climate change initiative. Revised ozone air quality standard. Waters of the United States definition. eDMRs—possible expansion of reporting requirements and mandatory electronic reporting. Air pollution transport to downwind states. 35

36. U.S. EPA’s Clean Power Plan Regulates Carbon Dioxide (CO 2 ) emissions from power plants using fossil fuels New Source Standards under 111(b) Existing Source Standards under 111(d) 36

37. Indiana Carbon Dioxide Emission Rates (pounds of CO 2 per Megawatt Hour) 2012 BaselineU.S. EPA 2030 Goal Indiana 2030 Estimate 1,9241,5311,615 to 1,683 37

38. 38 Existing Source Proposal—111(d) U.S. EPA estimates on a national level that: Coal production will decrease 25 to 27%, and the price of coal will decrease by 16 to 18% by 2020. Natural gas production will increase by 12 to 14% with a price increase of 9 to 12% by 2020. Renewable generation capacity will increase by 12 GW, NGCC capacity will increase by 20 to 22 GW.

39. 39 Existing Source Proposal—111(d) Coal generation capacity will decrease by 46-49 GW, and oil generation capacity by 16 GW. Annual incremental compliance costs of $5.5 to $7.5 billion in 2020 and $7.3 to $8.8 billion in 2030. Job increases of 25,900 to 28,000 in the electricity, coal and natural gas sectors by 2020. Job increases of 78,000 for demand-side energy efficiency by 2020.

40. Impacts on Indiana This regulation will increase the costs of energy in the United States—both natural gas and electricity prices expected to rise by 10%—the impact on Hoosiers may be greater due to our current reliance on coal. The number of Hoosiers who lose utility services for non-payment is likely to increase. 40

41. Impacts on Indiana This increased cost of energy will likely reduce the international competitiveness of Hoosier businesses resulting in a shift of emissions from Indiana to other countries. The worldwide greenhouse gas emissions may actually increase when manufacturing moves from Indiana (and the rest of the United States) to other countries. 41

42. Climate Impacts—111(d) Proposal This rule will have virtually no impact on modeled global climate change. It is projected to reduce: Global CO 2 concentrations by 1.5 ppm by 2050. This represents 0.3% of the expected projected average global average CO 2 concentrations in 2050. Sea level increases by 0.01 inch. 42

43. Climate Impacts—111(d) Proposal The proposed rule is also projected to reduce: Global average temperatures by 0.016 o F (0.009 o C) based upon U.S. EPA’s climate models. –This projected temperature reduction is based upon the projected 1.5 ppm reduction in global CO 2 concentrations. –Since 1998, global average CO 2 concentrations have increased by 33 ppm or 9%, but global average temperatures have not increased. 43

44. State Goals as % Reduction from 2012 44 Source: Bloomberg New Energy Finance

45. Percentage Change in CO 2 Emissions from Utilities (2005 – 2012) Decreasing >15% Decreasing 0 – 15% Increasing No Data Location of the State Capitals State Boundaries 45

46. Indiana’s Response to the 111(d) Proposal The proposed regulation is not consistent with our goal of affordable reliable energy. Governor Pence, Attorney General Zoeller and IDEM Commissioner Easterly have taken numerous actions to opposing U.S. EPA’s proposal. 46

47. Indiana’s Response to the 111(d) Proposal Indiana is pursuing other options in case the legal and policy challenges do not succeed. –IDEM is preparing possible options for a State plan to meet the proposed regulations. –IDEM and the IURC are working with other MISO states as the Midcontinent States Energy and Environmental Regulators (MSEER) to evaluate possible regional plans. 47

48. 2 Midcontinent States Environmental and Energy Regulators 48

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