Indiana Rural Water Association 2014 Spring Conference April 29, 2014 Thomas W. Easterly, P.E., BCEE, Commissioner IN Department of Environmental Management 1

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

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

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

Performance Metrics March 2014 ResultTargetComments Quality of Hoosiers' Environment % of Hoosiers that live in counties that meet air quality standards 87.64%100%80% Muncie Lead; Ozone in Clark, Floyd, Greene and LaPorte Counties, 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 99.07%100%90% 98+9 (107) out of 99+9 (108). Not Gary % of Hoosiers that receive water from facilities in full compliance with safe drinking water standards 99.87%99%95% Failure to maintain minimum chlorine residual in Gary, Turbidity in Carmel Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute* Land28,76537,24341,624 43,815 statutory Air54,15855,74862,307 65,586 statutory Water23,95844,70249,961 52,590 statutory * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards* Inspections96.86%97%75% Self reporting96.48%99%95% Continuous monitoring (COM)99.79%99.9%99.0% * Tracks observations and not just inspections 5

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 Permits--Percent of Statutory Days

Best in NPDES Permitting 8

9 Water Quality Indiana Combined Sewer Overflow Status

NPDES General Permit Update Five permits have been drafted and reviewed by U.S. EPA. –Hydrostatic Testing Water –Sand and Gravel –Noncontact Cooling Water –Petroleum Products Terminals –Ground Water Petroleum Remediation Systems IDEM is scheduling meetings with stakeholders to discuss template and permits. 10

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 11

Operator Certification Proposal –Offer exam through Ivy Tech or BMV –Both have several established testing centers –Both could offer exam times several times a week –Both could offer results quickly 12

Operator Certification Considerations –Number of Locations –Test frequency –Cost –Security –Test Environment Goal: Fall Tests conducted by one of our options 13

Reporting & Decertification IDEM continues to uncover instances of discharge monitoring reports (DMRs) which do not agree with the analytical laboratory results. While we have obtained criminal convictions in at least 4 cases and decertified a number of other operators for this issue, we continue to find this problem. The U.S. Attorney will focus on this issue. 14

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Governor Pence’s 2014 Roadmap Increase the speed of business through one-stop permitting. Improve recycling in Indiana through market-based reforms. Implement the first step of a unified, long- term water plan by streamlining Indiana’s water quality permitting responsibilities. 17

2014 Legislation HB 1183—Recycling Reporting, State Goal and Study –Requires reporting of recycling activities by: A recyclable materials broker. The owner or operator of a solid waste disposal facility at which recycling occurs. The owner or operator of a material recovery facility. A Solid Waste Management District. 18

2014 Legislation HB 1183—Recycling Reporting, State Goal and Study –Allows reporting of recycling activities by: A scrap metal processing facility. An automotive salvage recycler. Certain other entities. 19

2014 Legislation HB 1183—Recycling Reporting, State Goal and Study –Sets the goal of the state to recycle at least 50% of its municipal waste. –IDEM must post a uniform recycling activity report on its website by July 1, –IDEM must annually report a summary of the recycling activity information starting by December 31,

2014 Legislation SB 359—CFO Manure Management Plans and Composting –Allows facilities that compost organic material to obtain registrations rather than solid waste processing facility permits. –Clarifies the permit renewal and reporting requirements for Confined Feeding Operations. 21

2014 Legislation HB 1217—Single Point of Contact for Wetlands Permits –Requires IDEM and IDNR to develop a joint process to permit wetlands activities regulated by both departments. HB 1342—Environmentally Restrictive Covenants (ERC) Modifications and DOR Fee Transfer –Allows IDEM to recover costs of processing revisions to ERC. 22

2014 Legislation SB 271—Compartmentalized Underground Storage Tank (UST) & Regulated Drains –Clarifies fees for USTs with multiple compartments. –Makes IDEM and IDNR field visits to projects impacting regulated drains optional. HB 1070—Regional District Trustee –Allows legal trustees for Thralls Regional Sewer District where all property owners and rate payers are part of Saint Mary-of-the-Woods College. 23

Federal Initiatives to Watch President’s climate change initiative. –Regulations to reduce greenhouse gas emissions from new and existing power plants. –Mitigation measures. eDMRs—possible expansion of reporting requirements and mandatory electronic reporting. Air pollution issues from downwind states. 24

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 25

Summary of Concerns There is no clear goal for the President’s Climate Directives. –How will we know when we have achieved success? –How can we develop and evaluate alternative plans to achieve the goal? Since there is no goal, there is no plan to achieve the goal. 26

Summary of Concerns We have started the process of requiring very expensive changes to our electric generating sector with little understanding of how these changes will impact the achievement of the ultimate environmental goal. The increased energy prices caused by these new requirements will have a significant adverse impact on the affordability of electricity and the economies of the states that produce goods and energy. 27

Questions? Tom Easterly Commissioner Indiana Department of Environmental Management (317)