1. We Protect Hoosiers and Our Environment IDEM Update NIRPC EMPC January 3, 2008 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

2. We Protect Hoosiers and Our Environment Presentation Outline IDEM Progress and 2008 Legislative Outlook Wastewater Permitting including: Barnes Report on BP Permit Antidegredation rulemaking Progress in Issuing Permits Northwest Indiana Air Quality Update

3. We Protect Hoosiers and Our Environment 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.

4. We Protect Hoosiers and Our Environment Pilot 2006 Environmental Performance Index Yale Center for Environmental Law & Policy Yale University Center for International Earth Science Information Network (CIESIN) Columbia University http://www.yale.edu/epi/

5. We Protect Hoosiers and Our Environment

6. 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 Written Standard Operating Procedures Improved staff training and development

7. We Protect Hoosiers and Our Environment Performance Metrics Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers that live in counties that meet air quality standards 85%100%80% 2 counties @ 964,725 of 6,271,973 failed % of CSO Communities with approved programs to prevent the release of untreated sewage 65%100%20% 64+9 (73) out of 98+9 (108) Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 21,76166,56586,864 91 permits 538 permits 29 permits Air 187,860207,000385,000 Water 27,42648,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 97.15%97%75% Self reporting 95.68%99%95% Continuous monitoring (COM) 99.65%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 $2,800,000$0$3,447,017 $1,5 OLQ + $1.3 OAQ

8. We Protect Hoosiers and Our Environment Performance Metrics

9. We Protect Hoosiers and Our Environment Possible 2008 Legislative Issues We Expect Property Tax Reform the be the Major Issue in the 2008 Legislative Session IDEM will request Technical Corrections— Include authorization to pay for removal of mercury ABS assemblies from end of life vehicles Remove requirement of IDEM to have an “Office of Laboratory” Move Lead program from IDEM to ISDH

10. We Protect Hoosiers and Our Environment Possible 2008 Legislative Issues Technical Corrections— Allow electronic signatures for environmental compliance reports and permit applications Reduce work site posting requirements for wastewater operator certifications Eliminate the requirement that septage haulers obtain two permits—one as a septage hauler and one for land application Eliminate social security numbers from good character requirements in solid waste law Clarify Rule Sunset Requirements

11. We Protect Hoosiers and Our Environment Dr. Barnes Review of BP NPDES Permit

12. We Protect Hoosiers and Our Environment BP Permit Public Outreach IDEM considers all stakeholders when making a permit decision. We respond to all comments received and include the responses in the fact sheet before making the final permit decision. In January, 2007, IDEM, EPA and BP commenced an extraordinary outreach to and consultation with the Northwest Indiana environmental community during the development of the final draft permit

13. We Protect Hoosiers and Our Environment BP Permit Public Outreach A public comment period on the draft permit was offered from March 16 to May 11, 2007. A public meeting held in Whiting on April 26, 2007—attended by BP representatives, the environmental community and one citizen. IDEM received and responded to comments from 46 people before issuing the final permit on June 21, 2007.

14. We Protect Hoosiers and Our Environment BP Permit Public Outreach IDEM coordinated with EPA to ensure compliance with the Clean Water Act. On April 5, 2007, EPA issued a written notice of no objection concerning the BP Permit. The 18-day appeal period for the permit ended on July 9, 2007 and no appeal was filed within that period. The permit became effective August 1, 2007 and the permit expires July 31, 2012.

15. We Protect Hoosiers and Our Environment BP Permit Media Post Tribune Article stating that IDEM’s NPDES permit for BP did not require treatment. Lee Botts wrote letter to the editor pointing out that the Post Tribune article was not correct Sunday July 15 Article in Chicago Tribune “BP gets break on dumping in Lake— Refinery expansion entices Indiana”

16. We Protect Hoosiers and Our Environment BP Permit Media The July 15 Tribune article resulted in: July 16 letters from Senator Durbin and Representative Emanuel of Illinois to EPA and others criticizing IDEM’s permit action. July 19 th Commissioner Media Availability re BP House Concurrent Resolution #187 on July 26, 2007 “Expressing the sense of Congress regarding the dumping of industrial waste into the Great Lakes” An EPA led August 15 “Great Lakes Summit” Numerous petitions, letters, etc.

17. We Protect Hoosiers and Our Environment BP Permit & Barnes Report Governor Daniels Requested the Barnes Review on August 13, 2007 Dr. Barnes is the former Dean of the School of Public and Environmental Affairs—he served USEPA both times Bill Ruckelshaus was the Administrator Deputy Administrator General Counsel Dr. Barnes Issued His Report on December 3, 2007

18. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “Permit complies with existing regulations and the explicit requirements of state and federal law.” “The wastewater discharge would not be expected to cause a violation of water quality standards or interfere with designated uses in Lake Michigan (including full body contact recreation such as swimming, maintaining the aquatic community, and drinking water supply).”

19. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “The limitations in the BP permit are as demanding, and in several instances much more restrictive than, those issued by adjoining states to refineries.” “With a flat ban on new or increased discharges of bioaccumulative chemicals of concern (BCCs) to Lake Michigan, Indiana is more protective of the Lake than the adjoining states…”

20. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “Indiana should clarify its antidegredation regulations for Lake Michigan to make them easier for permit applicants and the public to understand and for the agency to apply.” “By modifying the regulations to address the shortcomings that I identified, Indiana can readily provide a more transparent process with clear requirements for making antidegredation decisions…”

21. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “The initial press reports that mischaracterized some of the material that BP is authorized to discharge as “sludge” created a misconception in the minds of many members of the public officials that does not accord with the actual facts in this case.”

22. We Protect Hoosiers and Our Environment BP Permit & Barnes Report “Knowledgeable observers in both the environmental and business communities gave IDEM and its commissioner, Tom Easterly, credit for cutting the backlog of expired permits and for their efforts to engage the public early in the permit process.”

23. We Protect Hoosiers and Our Environment BP Permit & Barnes Report In addition to the antidegradation demonstration, public concerns include: The “Necessity” Decision Mixing Zone/Diffuser Mercury (especially the compliance schedule) Monitoring and Reporting Requirements

24. We Protect Hoosiers and Our Environment Future IDEM Actions IDEM will process an antidegradation regulation Will apply to entire State Special protection for Lake Michigan IDEM will require more documentation for Compliance Schedules IDEM will obtain an EPA non-objection determination prior to placing an NPDES permit on public notice

25. We Protect Hoosiers and Our Environment Antidegradation Rulemaking History Indiana has had an antidegradation policy for all waters in its Water Quality Standards since the 1970s IDEM was formed in 1986 In 1997 IDEM adopted antidegradation implementation procedures for the Great Lakes Basin under EPA’s Great Lakes Initiative In November 2002, IDEM established an antidegradation workgroup

26. We Protect Hoosiers and Our Environment Antidegradation Rulemaking History March 1, 2003, First Notice of proposed Antidegradation regulations published— extensive comments received. March 2003 to April 2005 Work Group Continued to meet April 1, 2005, Second Notice of proposed Antidegration regulations published—the summary of comments received is 49 pages long

27. We Protect Hoosiers and Our Environment Antidegradation Rulemaking History In 2005 IDEM formed an internal workgroup to develop recommendations on responses to the public comments received This group found that even if IDEM could adequately address all of the comments raised, the proposed regulations would be extremely difficult to implement and follow After evaluating many alternatives, staff recommended a new approach to rulemaking

28. We Protect Hoosiers and Our Environment Antidegradation Rulemaking History The new concept is more like the Prevention of Significant Deterioration regulations for air pollution New concept presented to interested parties between August 2, 2007 (here at NIRPC) and November 21, 2007 Staff is now drafting proposed regulatory language for presentation to interested parties

29. We Protect Hoosiers and Our Environment Permit Backlog Reduction In 2005, there were 263 administratively extended NPDES permits Six of those 263 remain to be issued: US Steel Gary Works US Steel Midwest Division Arcelor Mittal Indiana Harbor East Arcelor Mittal Indiana Harbor West Arcelor Mittal Burns Harbor Hoosier Energy Merom Plant

30. We Protect Hoosiers and Our Environment Northwest Indiana Air Quality Update

31. We Protect Hoosiers and Our Environment Counties above AQ Standards January 10, 2005 Allen--Ozone Boone--Ozone Clark--PM & Ozone Dubois--PM Elkhart--Ozone Hamilton--Ozone Hancock--Ozone LaPorte--Ozone Madison--Ozone Marion--PM & Ozone Shelby--Ozone St. Joseph--Ozone January 1, 2007 Clark--PM Marion—PM Possible Addition Lake—Ozone (Whiting Monitor)

32. We Protect Hoosiers and Our Environment Ozone Monitoring Trends AreaCity2002200320042005200601-03 DV 02-04 DV 03-05 DV 04-06 DV 07 Critical Values Lake/PorterWhiting0.1000.0820.0640.0880.0810.0900.0830.0780.0770.086 LaPorteMichigan City 0.1070.0840.0700.0840.0750.0930.0860.0810.0770.096

33. We Protect Hoosiers and Our Environment Lake and Porter NOx and VOC

34. We Protect Hoosiers and Our Environment Lake and Porter Counties Redesignation All of Indiana except Lake and Porter Counties has been redesignated to attainment for the ozone standard The Lake and Porter Redesignation was Submitted to EPA on September 12, 2006 U.S. EPA proposed approval –May 31, 2007— Comment Period Ended July 2, 2007. Illinois filed comments strongly objecting to Indiana becoming attainment “because of Indiana’s impact on Illinois air quality”

35. We Protect Hoosiers and Our Environment Lake and Porter Counties Redesignation A recent California court decision partially reinstated the 1-hour ozone standard EPA is currently evaluating methods to comply with the court decision. High Ozone Levels at the Whiting Monitor on 5/22, 6/11, 6/15, 6/16 and 6/17. The 4 th high value appears to be 0.088, the critical value for this monitor was 0.086, we apparently have calculated nonattainment

36. We Protect Hoosiers and Our Environment ChiWaukee Monitor

37. We Protect Hoosiers and Our Environment Michigan City Monitor

38. We Protect Hoosiers and Our Environment Hammond Monitor

39. We Protect Hoosiers and Our Environment Holland Michigan Monitor

40. We Protect Hoosiers and Our Environment Controlling Chicago Monitor

41. We Protect Hoosiers and Our Environment What Does Redesignation Mean for the Area? Area redesignated to attainment and classified maintenance. Different New Source Review permitting requirements. Controls that lead to attainment must remain in place. If an unexpected re-violation of the standard occurs, warning and action level response triggers in place.

42. We Protect Hoosiers and Our Environment Additional Measures to Provide Margin of Safety Portable Fuel Container rule Off-road engine controls Auto Refinishing Solvents and Degreasers Consumer/Commercial Products Automotive and Industrial Maintenance (AIM) Coatings Outdoor wood furnaces

43. We Protect Hoosiers and Our Environment PM 2.5 Monitoring Trends NOTE: Only Lake and Porter counties have been designated nonattainment for PM under the annual PM 2.5 standard

44. We Protect Hoosiers and Our Environment Lake and Porter PM PM2.5 Redesignation Partial nonattainment area redesignation request 2005 Base Year 2020 Planning Horizon and Conformity Budget Draft is on my desk for final review Public notice/comment January 2008 Final Submittal to EPA– March 2008

45. We Protect Hoosiers and Our Environment New 24 Hour PM2.5 Standard

46. We Protect Hoosiers and Our Environment Questions? Tom Easterly 100 N. Senate Ave. IGCN 1301 Indianapolis, IN 46204 (317) 232-8611 Fax (317) 233-6647 teasterly@idem.in.gov