1. 1 We Protect Hoosiers and Our Environment Indiana Steel Environmental Group June 18, 2008 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

2. 2 We Protect Hoosiers and Our Environment “We Protect Hoosiers and Our Environment” BP NPDES and Air Permit Forbes Green Ranking Both of these issues are discussed in the PowerPoint of my March 6, 2008 IDEM Update - Indiana Chamber of Commerce, Environmental Issues ConferenceIDEM Update - Indiana Chamber of Commerce, Environmental Issues Conference All of my speech PowerPoints are available at www.idem.in.govwww.idem.in.gov

3. 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. 4 We Protect Hoosiers and Our Environment Pilot 2006 & 2008 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. 5 We Protect Hoosiers and Our Environment

6. 6 Currently No Similar Chart for 2008 “Wealth correlates highly with EPI scores. But at every level of development, some countries achieve results that exceed their income-group peers. Statistical analysis suggests that good governance contributes to better environmental outcomes.” US drops from 28 th to 39 th —Climate Change

7. 7 We Protect Hoosiers and Our Environment 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

8. 8 We Protect Hoosiers and Our Environment Performance Metrics Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers that live in counties that meet air quality standards 77%100%80% 3 counties @ 1,458,022 of 6,271,973 failed % of CSO Communities with approved programs to prevent the release of untreated sewage 66%100%20% 65+9 (74) out of 98+9 (107) Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 24,53266,56586,864 205 permits 431 permits 54 permits Air 151,060207,000385,000 Water 29,46448,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 97.08%97%75% Self reporting 93.81%99%95% Continuous monitoring (COM) 99.70%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 $2,700,000$0$3,447,017 $1,5 OLQ + $1.3 OAQ

9. 9 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

10. 10 We Protect Hoosiers and Our Environment Performance Metrics

11. 11 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, 2008 Clark--PM Marion—PM Lake—Ozone (Whiting Monitor)

12. 12 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

13. 13 Total Permit Calendar Days

14. 14 Permitting Rapid Improvement Activities 1. Significant Source Modification Lean Event. - October 2007 2. Permit Renewal Process Lean Event. - December 2007  Teams consisted of internal and external stakeholders.

15. 15 Items MeasuredCurrentNew% Change # of Steps16414412.2% # of Handoffs412929.3% # of Decisions161225% # Loop backs13838.5% # of Value- Added Steps 660 Lead Time 195 – 255 days 120 – 166 days 38.5% - 34.9% Delays312422.6% Significant Source Modification Results Status (avg) : 2/1/08 170 days / 4/1/08 154 days / 6/1/08 124 days

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19. 19 We Protect Hoosiers and Our Environment Enforcement 2003 to 1Q 2008 200320042005200620072008 Referrals607467547591606100 Violation Letters5,2224,9804,2684,0243,9585 Notice of Violations457318202427420108 Agreed Orders34931425841737294 Commissioner Orders 1564138394 Dismissals121444846578 Complies/ Closed308312317577568128 AG Referral1317433522

20. 20 We Protect Hoosiers and Our Environment New 2008 Laws HEA 1001 Property Tax Reform was the Major Issue in the 2008 Legislative Session SEA 45—The Great Lakes Water Compact with implementing legislation HEA 1120—Ban phosphates in residential dishwasher detergent sold after July 1, 2010

21. 21 We Protect Hoosiers and Our Environment New 2008 Laws SEA 43 addresses many environmental issues Clarifies mercury switch removal program requirements to: Allow payment for removal of mercury containing anti-lock braking switches and other mercury containing devices Exempt wrecked vehicles where the mercury switch is not easily accessible Allows IDEM to accept electronic signatures Clarifies Requirements for Local Land Use Approvals for Solid Waste Landfills that have not yet accepted Waste

22. 22 We Protect Hoosiers and Our Environment New 2008 Laws SEA 43 Continued Removes the requirement that IDEM have a laboratory division Removes the requirement to display operator certificates at a treatment plant Allows a single vehicle ID and land application permit approval for a septage hauler Eliminates the requirement that IDEM obtain social security numbers as part of good character approval process Allows IDEM to use ELTF for tank inspections

23. 23 We Protect Hoosiers and Our Environment New 2008 Laws SEA 43 Continued Requires public notice of rules that are proposed to sunset Protects a community from being required to pay storm water fees to two entities Clarifies Environmental Criminal Language SEA 46 modified the marketable record title for real property to eliminate the need to renew a environmental restrictive covenant every 50 years

24. 24 We Protect Hoosiers and Our Environment Other Significant Initiatives Virtual File Cabinet—electronic filing system TEMPO—Enterprise wide electronic integration of all IDEM information—part of the process to allow us to receive and process electronic permit applications and reports. Obtain EPA approval for electronic submittals

25. 25 We Protect Hoosiers and Our Environment Questions & Discussion