1. 111 Indiana Department of Environmental Management Budget Presentation FY ’10 & ’11

2. 222 IDEM’s mission is to protect human health and the environment while allowing for environmentally sound activities of industrial, agricultural, commercial and governmental operations vital to a prosperous economy. IDEM Mission Statement

3. 33 Agency Structure  Core Programs  The Office of Air Quality  The Office of Land Quality  The Office of Water Quality  Support Programs  The Office of External Affairs (All Administrative Offices)  The Office of Legal Counsel & Criminal Investigations  Outreach Program  The Office of Pollution Prevention & Technical Assistance

4. 44 Office of Air Quality  The mission of the Office of Air Quality is to assure all Hoosiers breathe air that meets all health based air quality standards. The Office achieves this by: developing & implementing state air quality control plans, evaluating & issuing construction & operating permits, inspecting facilities to verify that they continue to meet regulatory requirements & monitoring air quality across the state.

5. 55 Major Accomplishments 2007-2009 Office of Air Quality (OAQ)  Midwest Clean Diesel Initiative targeted towards retrofitting vehicles & locomotives with pollution controls reducing emissions.  501 retrofits completed.  EPA approval of Indiana’s petitions recognizing the ozone air quality improvement in 14 counties; only Lake & Porter Counties remain designated as “Non-Attainment” for ozone. 5

6. 66 Major Accomplishments 2007-2009 OAQ  Issuance of key economic development permits:  BP Refinery Plant  Duke Energy IGCC Plant  Honda  Ethanol facilities  Converted 32 of Indiana’s 45 continuous air quality monitors to real-time data acquisition systems (Leading Environmental Analysis & Display System -LEADS). 6

7. 77 Office of Land Quality  The mission of the Office of Land Quality is to protect, restore & maintain the quality of Indiana’s land by assuring the proper management of waste, clean-up of contaminated sites & the protection of public health & the environment from environmental emergencies. The office issues permits & provides compliance assistance to facilities including waste processing facilities, solid & hazardous landfills, auto salvage yards, superfund sites & confined feeding operations. 7

8. 88 Major Accomplishments 2007-2009 Office of Land Quality (OLQ)  “Shovel ready” sites.  38 sites restored & ready for reuse.  Safe destruction of all VX nerve agent previously stored at Newport.  Meth lab clean-up contractor certification program.  20 contractors certified  Increased inspection frequency of CFO/CAFO operations. 8

9. 99 Major Accomplishments 2007-2009 OLQ  Contaminated sites cleaned-up  1005 Covenants Not-To-Sue, No-Further Action letters or Environmental Restrictive Covenants.  End of life Motor Vehicle Mercury switch removal program.  35,340 switches recovered.  Implemented a rule to allow for the safe recycling of electronic waste (e-Waste Rule). 9

10. 10 Office of Water Quality  The mission of the Office of Water Quality is to monitor, protect & improve Indiana’s water quality to ensure its continued use as a drinking water source, habitat for wildlife, recreational resource & economic asset. The Office achieves this by: developing rules, guidance, policies & procedures, assessing surface & ground water quality, regulating & monitoring drinking water supplies & waste water facilities, protecting watersheds & wetlands, providing outreach & assistance to the public & regulated community while supporting environmentally responsible economic development. 10

11. 11 Major Accomplishments 2007-2009 Office of Water Quality (OWQ)  Great Lakes Compact: Indiana became the first state to pass laws including implementation language.  Beach Program monitoring at 9 Lake Michigan beaches providing real-time computer access to information on beach water quality & closures.  Completed 466 Total Maximum Daily Load (TMDL) plans to improve water quality.  Creation of a comprehensive Storm water Manual to help Hoosiers understand their responsibilities.

12. 12 Major Accomplishments 2007-2009 OWQ  Co-authored the Blue-Green Algae web-site with BOAH, DNR, ISDH & IUPUI.  Contacted & coordinated outreach efforts for over 450 water & wastewater treatment plants during recent southern Indiana flooding.  Implemented the small drinking water system lab assistance program.  Addressed Indiana’s 107 Combined Sewer Overflow communities

13. 13 Major Accomplishments 2007-2009 OWQ  Adopted a suite of rules to address small community wastewater treatment plants.  Adopted a certified operator rule & created an apprentice program.

14. 14 Office of External Affairs  The mission of the Office of External Affairs is to provide support activities & necessary oversight to agency offices allowing those offices to accomplish their objectives. The Office of External Affairs’ programs include Human Resources, Information Technology, Budget, & Policy & Public information.

15. 15 Major Accomplishments 2007-2009 Office of External Affairs (OEA)  Policies & SOPs  Completed & adopted approximately 620 out of an estimated 1,000 Standard Operating Procedures & Agency Policies.  Digital Inspector  Developed & implemented a tablet/laptop compliance inspection process allowing for standardization & consistency of the inspection program.

16. 16 Major Accomplishments 2007-2009 OEA and Agency Wide AW  Internal Efficiencies/Program Reductions  Lead monitoring program transferred to ISDH.  IDEM Human Resources consolidated with SPD.  IDEM IT functions consolidated with IOT.  Reduced the number of external contractors performing key core agency functions.  Re-allocated personnel to address permitting backlogs.  Eliminated automotive emissions inspection programs in Clark & Floyd counties.

17. 17 Major Accomplishments 2007-2009 Agency Wide (AW)  The dramatic reduction & virtual elimination of program permit backlogs.  The reduction of enforcement action backlogs.  Virtual File Cabinet  Indexed & electronically scanned over 30,000,000 agency files for public view via the WEB.

18. 18 Office of Legal Counsel & Criminal Investigations  The mission of the Office of Legal Counsel& Criminal Investigations is to provide in-house counsel services, rules & legislation services, & criminal investigation services, creation & review of all contracts & grants as well as the preparation of cases for referral to the Attorney General in support of the agency’s core programs.

19. 19 Major Accomplishments 2007-2009 Office of Legal Counsel & Criminal Investigations (OLC)  Internal Efficiencies/Program Reductions  Eliminated the backlog of duplicate enforcement cases.  State Deputy Attorneys General imbedded in the Office of Legal Counsel, Enforcement & Criminal Investigations.

20. 20 Office of Pollution Prevention & Technical Assistance  The mission of the Office of Pollution Prevention & Technical Assistance is to find better ways to help Hoosiers voluntarily prevent pollution as well as understand, achieve & exceed their environmental responsibilities through confidential technical assistance, education & financial support.

21. 21 Major Accomplishments 2007-2009 Office of Pollution Prevention & Technical Assistance (OPPTA)  9 communities awarded membership in the Clean Community Challenge in which they agree to improve their environment beyond their legal obligations.  38 companies awarded membership in the Environmental Stewardship Program in which they agree to improve their environmental performance beyond their legal obligations.

22. 22 Indiana Department of Environmental Management Budget & Staffing

23. 23 Current & Proposed Budget Comparison Current: 2007-2009 - $307,801,214 *Dedicated: $187,620,951 (60.96% of Total Budget) *Includes $97,769,864 from Excess Liability Trust Fund (ELTF) *Dedicated: $196,513,180 (62.75% of Total Budget) *Includes $95,493,102 from Excess Liability Trust Fund (ELTF) Proposed: 2009-2011 - $313,161,990 ELTF Federal: $56,589,438 (18.07%) General: $60,059,372 (19.18%) Federal: $57,530,097 (18.69%) General: $62,650,166 (20.35%)

24. 24 Funding Sources  General Funds  Agency’s general funding allocation has remained fairly consistent for the last 10 years, averaging approximately $33,500,000 per year. FY ’10 & ’11 is projected at $30,000,000 per year.

25. 25 10-Year General Funding Allocation

26. 26 Funding Sources  Dedicated Funds (Fees & Fines)  State Solid Waste Management Fund  Recycling Promotion & Assistance Fund  Waste Tire Management Fund  Voluntary Remediation Fund  Title V Operating Permit Trust Fund  Environmental Management Permit Operation Fund

27. 27 Funding Sources  Dedicated Funds (Fees & Fines)  Environmental Management Special Fund (fees, fines & penalties)  Hazardous Substance Response Trust Fund  Asbestos Trust Fund  Petroleum Storage Tank Trust fund  Excess Liability Trust Fund

28. 28 Funding Sources  Federal Funds  On average, a state match of 46% of our Federal funds is required.  Grant funds are becoming more competitive as EPA funding is being cut by Congress.  In light of national budgetary concerns relative to the current economy, further cuts in EPA funding are likely.

29. 29 Proposed Budget & Staffing Budget: $313,161,990Staff: 981 ELTF OLQOPPTAOWQ OAQOE/OCIOLCOEA OLQ OPPTAOWQ OAQOE/OCIOLCOEA 50.27%5.31%17.21% 17.90%.56%1.16%7.59% 33.44% 3.98%25.38% 22.02%1.12%1.73%12.33%

30. 30 IDEM Staffing Levels

31. 31 IDEM’s Key Challenges  Maintaining environmental progress in the face of recent federal court vacatures of several key federal environmental rules.  Assisting small drinking water systems to achieve compliance with new federal requirements.  Improving the implementation of the storm water programs under Rules 5, 6, 13 & the industrial wastewater pretreatment program.

32. 32 IDEM’s Key Challenges  Helping the State meet the infrastructure needs for water & wastewater systems.  Working with stakeholders in clarifying the remediation requirements for contaminated sites across the state.  Maintaining the enhanced levels of confined feeding facility inspections.

33. 33 2009 – 2011 Biennium Objectives  Ensure that every Indiana county meets all air quality standards.  Continue elimination of Combined Sewer Overflows to protect our water from untreated sewage.  Continue to decrease the number of days to process and issue permits while maintaining the quality of the review process.

34. 34 2009 – 2011 Biennium Objectives  Continue to implement an internal & external data management system allowing the agency to receive environmental data, applications & correspondence electronically from the regulated community.  Finalize the water Anti-Degradation rule.  Maintain Indiana’s Drinking Water rules to be consistent with federal requirements.  Finalize the Risk Integrated System of Closure (RISC) Rule.