1 IDEM Thomas W. Easterly, P.E., DEE, QEP, Commissioner Indiana Department of Environmental Management

2 IDEM Environmental Goal Increase the personal income of all Hoosiers from the current $0.88/$1.00 of the national average to at least $1.00/$1.00 of the national average while maintaining and improving Indiana’s Environmental Quality.

3 How is Personal Income Linked to Environmental Improvement? Maslow’s Pyramid reminds us that people meet their basic needs for food, shelter and security before addressing other needs. In most of Indiana, personal autos for transportation are a basic need. People with lower incomes can often only afford older more polluting automobiles which contribute more than their share to our transportation related air quality issues.

4 Income and the Environment? People with more income typically purchase newer cars that pollute less. Similarly, newer industrial processes have less waste (more product per unit of input). Waste typically becomes pollution. Financially successful industries typically are able to purchase these newer processes that pollute less.

5 Income and the Environment? Businesses that are struggling financially still must pay their workers and their suppliers. One of the few places to reduce is maintenance. At some point, deferred maintenance leads to reduced equipment availability and increased pollution.

6 Income and the Environment? People and businesses who have met their basic needs look past their own needs to the greater good including the general quality of life. Pursuit of improved quality of life includes support for better environmental quality.

7 How Will IDEM Help Increase Personal Income? Clear, predictable 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.

8 Actions to Date Two agency-wide meetings with Governor Daniels to champion the new direction and answer questions. Met with all agency staff to reiterate the message of change and answer questions. Regular s to staff to reinforce direction. IDEM Streamlining and Efficiency Task Force.

9 Actions to Date Delegated authority and responsibility to Assistant Commissioners and Branch Chiefs with the direction to do their jobs while considering economic development. Asking people to first go to the staff responsible for the issue and let the staff do the right thing—let me know when there is a problem.

10 Future IDEM Structure Less management and more empowerment of technical staff Eliminated the deputy commissioner layer Manage by objectives EnPPA QMP or equivalent Meaningful Performance Assessment System Generally implement government efficiency commission recommendations

11 Major Strategic Issues CSO’s/Long Term Control Plans Air Quality Non-Attainment Designations: PM2.5, Ozone & SO2 Redevelopment of Contaminated Sites Brownfields Voluntary Remediation Program LUST RCRA Corrective Action

12 Significant Issues Electronic Permits and Reporting Administratively extended NPDES permits Water Quality Standards or Variances Not yet issued Title V permits Appealed Title V and NPDES permits Unwritten “policy” applied as regulation

13 Compliance & Enforcement Focus is on Compliance, not penalties or “gotcha” Goal is for every regulated entity to understand and comply with their environmental responsibilities. Will continue to enforce against those who do not meet their environmental responsibilities—working to speed up the enforcement process.

14 Performance Report IDEM implements federal and state regulations to protect human health and the environment. IDEM provides permits to allow the environmentally sound operation of industrial, agricultural, commercial and government operations vital to a prosperous economy. IDEM provides compliance assistance, incentive programs and educational outreach to aid and encourage businesses and citizens in protecting and improving Indiana’s environment. IDEM pursues enforcement action when a party disregards environmental regulations.

15 Performance Report Discovery: The department was top heavy in terms of management positions. Action Taken: Reorganized the department and eliminated a complete layer of executive management staff. (Estimated annual savings = $400,000)

16 Performance Report Discovery: When the Governor arrived in January, IDEM had significant backlogs of unresolved issues in a number of areas including: Resolution of enforcement actions-- Approximately 120 unresolved actions that were over two years old. Approval of long term control plans to address Combined Sewer Overflows (CSO’s)—these are municipal sewer systems that discharge untreated sewage during rain events. Only 1 of 105 plans was approved between 2002 and January 10, 2005.

17 Performance Report Major (Title V) Air Permits for electrical power plants had not been issued since their 1996 application deadline. A number of major water pollution (NPDES) permits had not been renewed since Over 3,000 reported leaks from underground storage tanks had not been properly investigated.

18 Performance Report Action Taken: Progress has been made on each of the backlog issues by identifying the cause of the backlog and taking steps to address these issues. 90 of the 120 unresolved Resolution of Enforcement Actions have been resolved to date. Additional staff were assigned to review and approve long term control plans to address CSO issues as IDEM recognizes this to be a serious environmental issue. To date, IDEM has approved 3 more plans and has developed a schedule to approve at least 80 plans within the next 2 years with the remaining plans to be approved within 3 years.

19 Performance Report On January 11, 2005, there were 10 electric power plants that had not yet received their Title V Operating Permits. All of the major utility companies had appealed the permits that had previously been issued, and the remaining 10 were sure to be appealed if issued with the same conditions. There are more than a dozen issues included in these "global appeal issues." IDEM is negotiating new positions on these issues which will address those permits currently in litigation under appeal and will allow IDEM to begin issuing Title V permits in the future without the threat of an automatic appeal.

20 Performance Report IDEM has been working thru major issues with USEPA and as part of the new Environmental Performance Partnership Agreement both parties have committed both agencies to backlog completion by September To date, sixty-five (65) of the major NPDES permits have been administratively extended and two have expired. Sixty-seven (67) have not yet been renewed. The original leaking underground storage tank (LUST) universe was approximately 8,000 of which 5,000 have been closed. Of the remaining 3,000, IDEM has initiated a response, either direct investigation or written correspondence, to approximately 2,500 and have plans to address the remaining 500.

21 Performance Report Discovery: The Environmental Performance Partnership Agreement which details U.S. EPA’s and IDEM’s commitments to each other on federally funded environmental programs for was 167 pages and contained commitments that were not met. Action Taken: IDEM worked closely with EPA and the agreement was reduced to only 36 pages and IDEM is confident that it can meet all the goals and commitments contained in the agreement.

22 Performance Report Discovery: A consulting company was used by IDEM to review Excess Liability Trust Fund claims. These are claims regarding leaking gasoline or diesel tanks. Action Taken: IDEM has decided to utilize existing staff to review these claims. (Estimated annual savings = $1 million)

23 Performance Report Discovery: IDEM receives over $50 million annually in primarily federal grants; however, because there was no coordination of the grants process within the agency some grant money has not been spent and had to be returned to the federal government. Action Taken: IDEM has consolidated grants management and is working with the newly formed Office of Federal Grants and Procurement within Governor Daniels office to be certain it is making full and proper use of every federal dollar it receives.

24 Performance Metrics

25 Questions? Tom Easterly 100 N. Senate Ave. IGCN 1301 Indianapolis, IN (317) Fax (317)