1. Environmental Quality Service Council IDEM Report – August 15, 2012 Thomas W. Easterly, P.E., BCEE, QEP Commissioner, Indiana Department of Environmental Management

2. 2 IDEM’s Mission We Protect Hoosiers and Our Environment 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.

3. How Does IDEM Protect Hoosiers and Our Environment? Develop regulations and issue permits to restrict discharges to the environment to safe levels. Inspect and monitor permitted facilities to ensure compliance with the permits. 3

4. 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. 4

5. Performance Metrics July 2012 5 ResultTargetComments Quality of Hoosiers' Environment % of Hoosiers that live in counties that meet air quality standards 99.99%100%80% Lead in a small portion of Muncie % of CSO Communities with approved programs to prevent the release of untreated sewage 97.2%100%90% 96+9 (105) out of 99+9 (108) % of Hoosiers that receive water from facilities in full compliance with safe drinking water standards 99.88%99%95% Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land33,67441,51446,398 Air70,77365,99473,758 Water43,03461,78769,056 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections97.54%97%75% Self reporting98.57%99%95% Continuous monitoring (COM)99.77%99.9%99.0% * Tracks observations and not just inspections

6. 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 7

8. Comparison of Region 5 States Permitting Program Status compiled by U.S. EPA Region 5 for July 26, 2012 State Environmental Directors Meeting 8

9. 9

10. Status of All Facilities Covered by Current NPDES Permits (as of 7/6/12) 10 Status of All Facilities Covered by Current Permits (as of 7/6/12)

11. IDEM Backlogs Eliminated On January 10, 2005, there were 263 administratively extended NPDES permits and 289 unissued Title V permits. All of those have been issued and IDEM now issues permits using less than 85% of the statutorily allowed days. On January 10, 2005, there were 250 unresolved enforcement cases over 2 years old. Now the oldest referral on our tracking list is June, 2010. 11

12. Office of Water Quality NPDES Permit Backlog Reduction 2005: 263 administratively extended Permits. 2012: 6 administratively extended permits –One renewal application submitted late. –All extended permits have been public noticed. –Four major industrial power plant permits under final review after public notice and will be issued within next three weeks. –One minor municipal. –One major municipal. 12

13. 108 communities with combined sewers. 102 communities have IDEM approved LTCPs. 6 communities remain to have their LTCPs developed and approved. Of those, 3 are in an enforceable mechanisms to get their LTCPs developed, approved and implemented, and 3 are currently in negotiations with EPA and IDEM to enter into an agreeable enforcement mechanism for the development and implementation of LTCPs. 34 communities have completed the implementation of their CSO controls. Office of Water Quality Combined Sewer Overflows (CSOs) 13

14. Water Antidegradation (Water) Antidegradation—Applies to new or increased loadings of regulated pollutants due to deliberate actions. There are exemptions for: –Short term temporary discharges. –De minimis discharges (<10% of available capacity). –Changes in loadings covered by an existing permit. 14

15. Water Antidegradation Three basic tests: –Is the new loading necessary? –Is the proposed treatment (discharge) level appropriate? –Do the social and economic benefits of the activity outweigh the environmental degradation? Additional protection requirements for Outstanding State Resource Waters. 15

16. Office of Water Quality Blue Green Algae Initiative Concerns from citizens around Geist Reservoir in 2007, Senator Gard urged agencies to investigate. 2009 EQSC report recommended expanded sampling of lakes. IDEM is sampling at 13 locations at 11 DNR managed lakes this year. 16

17. Office of Water Quality Blue Green Algae Initiative Chain O’Lakes State Park - Sand Lake Fairfax State Recreation Area on Monroe Lake Hardin Ridge U.S. Forest Service Recreation Area on Monroe Lake Hardy Lake State Recreation Area Lost Bridge West State Recreation Area on Salamonie Lake Miami State Recreation Area on Mississinewa Lake Mounds State Recreation Area on Brookville Lake Paynetown State Recreation Area on Monroe Lake Pokagon State Park - Lake James Potato Creek State Park - Worster Lake Quakertown State Recreation Area on Brookville Lake Raccoon State Recreation Area on Cecil M. Hardin Lake (Raccoon Lake) Whitewater Memorial State Park - Whitewater Lake 17

18. Office of Water Quality Blue Green Algae Initiative Citizens Water also samples at: –Eagle Creek Reservoir –Geist Reservoir –Morse Reservoir The Center for Earth and Environmental Science at IUPUI samples Patoka Lake monthly at five sites. All results and health warnings are posted at http://www.in.gov/idem/algae/ http://www.in.gov/idem/algae/ 18

19. Fish Tissue Mercury 19

20. 20 Fish Tissue Mercury Mercury emissions in Indiana have decreased by approximately 50% over the past 14 years. Measured mercury deposition has decreased by 7% during this time. In spite of these reductions, there is no apparent change in mercury fish concentrations in Indiana.

21. Fish Tissue Mercury U.S. EPA’s “acceptable” fish mercury levels are 0.3 mg/kg which is 300 ppb. While the average fish tissue mercury levels in Indiana have not changed, they are less than one half of this level. Indiana has historically called a stream impaired for mercury if a single analytical result (average of 3 fish) exceeded 300 ppb. 21

22. Fish Tissue Mercury At the end of 2010, U.S.EPA issued new guidance on the proper interpretation of the fish tissue data. U.S.EPA’s guidance indicates that a properly calculated average mercury value is the appropriate interpretation of the limit. IDEM has reevaluated its mercury data using the U.S.EPA guidance. 22

23. Fish Tissue Mercury ( Note: Lake data does not include Lake Michigan) Year Mercury Impaired Stream Reaches Mercury Impaired Stream Miles Mercury Impaired Lakes Mercury Impaired Lake Acres 2010 2721,6893744,540 2012 424171514,582 Change -84%-75%-60%-67% 23

24. Fish Tissue Mercury ( Note: Lake data does not include Lake Michigan) Year Stream Reaches OK for Mercury Stream Miles OK for Mercury Lakes OK for Mercury Lake Acres OK for Mercury 2010 4892,6525425,172 2012 1,3945,3698055,979 Change +185%+102%+48%+122% 24

25. 25 U.S. EPA Mercury Air Toxics Rule (MATS) Final Rule Effective: April 16, 2012 Annual rule cost $9.9 billion. Annual rule HAP benefit $5,000 to $6,000,000 (0.00209 IQ points per exposed person or 510.8 IQ points per year in US out of 31 billion IQ points). Rule cost is between $1,650 and $1,980,000 per $1 of HAP benefit. Estimated annual co-benefits $53 to $140 billion.

26. 26 Current Air Quality Status At the end of 2009, all of Indiana met every currently effective NAAQS for the first time since NAAQS were established in the 1970’s. IDEM has succeeded in working with U.S. EPA to have all of the state designated as attainment for those pollutants except: –Central Indiana PM 2.5 –Clark and Floyd counties PM 2.5

27. 27 New Air Quality Standards Since the end of 2009, new air quality standards have resulted in U.S. EPA designating the following new nonattainment areas: –Lake and Porter counties Ozone (2008 standard) –Lawrenceburg Township (Dearborn County) Ozone –City of Muncie Lead All monitors in Indiana currently meet the 100 ppb short term No x standard established in 2010. A number of townships in seven counties will likely be designated as nonattainment for the 1-hour 75 ppb SO 2 standard established in 2010.

28. NWI 75 ppb OZONE DESIGNATION September 22, 2011, U.S. EPA announces it is proceeding with ozone nonattainment designations. December 9, 2011, U.S. EPA notifies Governor Daniels that all of Indiana will be designated attainment except Lawrenceburg in Dearborn County. 28

29. NWI 75 ppb OZONE DESIGNATION January 31, 2012, U.S. EPA notifies Governor Daniels that due to data provided by Illinois on December 7, 2011; Lake, Porter and Jasper counties will be designated as nonattainment for ozone. April 13, 2012, Indiana sends package explaining why Lake, Porter and Jasper counties should be designated as attainment. 29

30. NWI 75 ppb OZONE DESIGNATION Reasons for Indiana ozone attainment recommendation: –A single monitor out of 22 apparently exceeded the standard by 0.4 ppb (0.0004 ppm). –Illinois caused the violation by discontinuing full implementation of its automotive inspection program in 2008 without making a 110 (l) demonstration, thereby violating its SIP and the Clean Air Act. 30

31. NWI 75 ppb OZONE DESIGNATION –Milwaukee, which is designated as attainment, has a higher contribution to the violating monitor than Lake County or Porter County. On May 31, 2012, Administrator Jackson signed the nonattainment designation for the Chicago Area including Lake and Porter counties in Indiana—Milwaukee remains designated as an attainment area. 31

32. NWI 75 ppb OZONE DESIGNATION Remedies being implemented: –Petition court for reconsideration of nonattainment designations—July 19, 2012. –Petition court for a stay of the designations— August 8, 2012. –Petition U.S.EPA to reconsider the May 31, 2012 designations—August 10, 2012. –Ask impacted congressional delegation for help. 32

33. Why is Illinois I & M Key? Beginning in 2007, Illinois went to the OBD inspection system which exempts 1968 through 1995 vehicles from inspection. Data from Indiana’s system shows that inspection of 1968 through 1995 vehicles accounted for 67% of the HC, 85% of the NOx, and 79% of the CO reductions in 2008. 33

34. 34

35. 35 Sulfur Dioxide Design Values 2002-2011 Compared to 2010 1-hour Standard of 75 ppb

36. 36 Sulfur Dioxide Annual 99 th Percentile Values 2000-2011

37. 37 2010 Sulfur Dioxide Standard Nonattainment Designation Recommendations

38. 38 2008 Lead Standard Nonattainment Designations

39. Protection of Downwind States In 2005 a number of counties, including three in Indiana, did not meet all ozone and PM 2.5 air quality standards. U.S. EPA projected that over 100 counties would still not meet standards by 2012. By the end of 2010 air quality in Indiana and the rest of the country had improved to meet the Ozone and PM 2.5 air quality standards addressed by CSAPR (except for two areas impacted by local sources). 39

40. Protection of Downwind States OzonePM 2.5 (Annual)PM 2.5 (24-Hour) EPA predicted 2012 Nonattainment counties (based upon 2005 air quality) 1132103 Counties Attaining by 2009 92783 Counties still needing improvement at end of 2009 2520 Counties with remaining local source issues 2010 111 40

41. 41 CAIR/Transport Rule/CSAPR IDEM expected to meet the Transport Rule statewide caps for 2012 without additional controls, CSAPR reduced those caps by 29%-- not currently achievable. IDEM expected that we would need one current project completed and another source controlled to meet the 2014 caps. CSAPR reduced the caps by 20%. CSAPR annual cost estimated to be $2.4 billion.

42. 42 CAIR/Transport Rule/CSAPR Success to Date: On December 30, 2011, the DC Circuit Court of Appeals issued a stay of CSAPR and a hearing on the merits of the appeals was held in April—no decision yet. Cost of Success: U.S. EPA placed a hold on the PM 2.5 attainment designation for the Indianapolis Area which had been sent to the Federal Register, but not published.

43. 43 CAIR/Transport Rule/CSAPR The State of Indiana has filed three actions to respond to CSAPR: –A petition to reconsider the rule with U.S. EPA. –A petition for judicial review of the rule with the DC Court of Appeals. –A request for a stay of the rule with the DC Court of Appeals. We are also working with LA, OH, TX and WV to advocate reconsideration of the rule.

44. Air Quality Compared to CSAPR Goals 2008 to 2010 Attains Does Not Meet the PM Standards Does Not Meet the Ozone standard Does Not Meet the Ozone and PM Location of the State Capitals State Boundaries 44

45. State of the Air Status 2008 to 2010 Attains Does Not Meet the PM Standards Does Not Meet the Ozone standard Does Not Meet the Ozone and PM Location of the State Capitals State Boundaries 45

46. 46 CO 2 (Greenhouse Gasses) The National Academy of Sciences report, “America’s Climate Choices” recommends that actions be taken now to start reducing U.S. greenhouse gas emissions to levels between 50% and 80% below 1990 levels. Achieving an 80% reduction from 1990 levels would require a 81.4% reduction from 2009 levels. If we converted all U.S. fossil fuel use from coal and oil to natural gas, we would achieve a 23.9% reduction from 2009 levels.

47. 47 CO 2 (Greenhouse Gasses) The remaining emissions would need to be reduced by 73.8% to reach the 80% target. Apparent choices are: –Energy conservation. –Increasing non-hydro renewable energy sources from the current 5.5% market share. –Carbon sequestration. –Nuclear electricity. Is it possible to achieve the additional 73.8% reduction?

48. 48 CO 2 (Greenhouse Gasses) This spring, the Environmental Council of the States (ECOS) passed resolution 12-1 “Challenges of Achieving Significant Greenhouse Gas (GHG) Emissions Reductions”. The resolution requests that the U.S. EPA develop one or more scenarios that will produce an 80 percent reduction in GHG emissions nationally, from a 2005 baseline, in 2050 or beyond; and to conduct an analysis of the costs and the benefits associated with each such scenario along with an estimate of the costs and benefits of not obtaining these GHG reductions.

49. Office of Air Quality Air Monitoring OAQ operates 81 air monitoring sites throughout the State. Total data points generated by OAQ every year = 2,548,160. The Indiana Network Description is located at… http://www.in.gov/idem/files/air_ambient_2013_net work_review.pdf http://www.in.gov/idem/files/air_ambient_2013_net work_review.pdf 49

50. Office of Air Quality Mint Farms—HEA1451 There are 16 Mint Farms across Northern Indiana. The farms produce a concentrated mint oil extract by steam distillation and separation of mint oil from the mint plant itself. No emission factors existed to determine Volatile Organic Compound (VOC) emissions for air permit applicability. House Enrolled Act No. 1451 required that a study be conducted of the actual and potential air emissions from the distillation of mint. 50

51. Office of Air Quality Mint Farms—HEA 1451 In May 2011, IDEM awarded a contract to test VOC emissions at the Lawrence Farm. The test was conducted on July 27, 2011. Test results indicated that there are VOC emissions from mint distilling, but the levels are below the threshold requiring air permits. Through cooperation with the mint farmers, we were able to determine that all these farms are exempt from air permitting requirements. 51

52. Office of Land Quality Accomplishments Supported Super Bowl host committee with approvals for successful food waste composting demonstration project. Implementing plain writing improvements in permit documents across all programs. Streamlined hazardous waste permit renewal review process. Streamlined waste tire program work flows. 52

53. Office of Land Quality Permitting Issued 887 permit decisions last fiscal year. 39% of the decisions were relative to confined feeding permits. On average the decisions were issued in 66% of the time required under the statute based on calendar days. 53

54. Office of Land Quality New CFO/CAFO Rules New rules became effective July 1, 2012. Many farms exited the NPDES program. –The NPDES General Permit category for CAFOs is discontinued. All 504 CAFOs holding NPDES General Permits elected to transition out of the NPDES program into the CFO program. –4 CAFOs that do not discharge requested to transition out of their NPDES Individual Permit into the CFO program. There are now 13 CAFOs under NPDES CAFO Individual Permits and 1,984 CFOs and CAFOs under CFO Approvals. 54

55. Office of Land Quality New CFO/CAFO Rules (cont.) Phosphorus limits on land application and restrictions on land application to frozen and snow-covered ground are among new requirements protecting water quality. Updated application forms, CFO guidance and permit documents are in place to support the new rules. IDEM is reviewing and approving new applications on schedule. IDEM is partnering with Indiana Corn & the Indiana Soybean Alliance in their effort to develop web-based guidance to help CFOs understand new requirements. 55

56. Office of Pollution Prevention and Technical Assistance Focus on statutory purpose of promoting cooperation between IDEM and regulated entities. Work with over 400 entities in voluntary participation programs (education, recognition, and financial support) that improve the environment beyond environmental requirements. Answer over 4000 inquiries (annually) to help people understand and comply with their regulatory responsibilities. Administratively support compliance program activities through Regional Offices. 56

57. Environmental Rules Board Change is response to questions from the Select Committee on Government Reduction. This 16 Member Board Replaces: –Air Pollution Control Board. –Water Pollution Control Board. –Solid Waste Management Board. 57

58. Environmental Rules Board Ex Official MembersRepresentative of Labor Commissioner, State Department of Health Representative of Environmental Interests Director, Natural Resources DepartmentRepresentative of Local Government Lieutenant GovernorRepresentative of Small Business Secretary of CommerceLicensed Health Professional Commissioner, IDEM (Non Voting)Representative of Solid Waste Management Industry PUBLIC MEMBERSRepresentative of Public Electric Utility Representative of AgricultureGeneral Public Representative of ManufacturingGeneral Public 58

59. Environmental Rules Board Board shall select, from a list of 3 qualified individuals recommended by the governor, an independent third party who is not an employee of the State to serve as technical secretary. –$50 per meeting plus travel expenses. –Subject to Conflict of Interest Laws prohibiting doing other Environmental Work in Indiana. 59

60. Environmental Rules Board Board may select, from a list of 3 qualified individuals recommended by the governor, an independent third party who is not an employee of the State to serve as legal counsel. –$50 per meeting plus travel expenses. –Subject to Conflict of Interest Laws. 60

61. Environmental Rules Board Governor to Appoint Board Members before December 31, 2012. Board Member Appointments are for Four Year Terms—Terms Continue until a Replacement is Named. Governor Annually Appoints Chair and Vice Chair of the Board. 61

62. IDEM 2011-2012 GOALS AND CHALLENGES 62

63. 2011-2012 IDEM Major Goals Complete Antidegradation Rulemaking Process. Done WPCB Final Adoption March 14, 2012. Obtain U.S. EPA approval of attainment designations for PM 2.5 for all of Indiana: Evansville, Cincinnati and Northwest Indiana are final and effective. U.S. EPA will not proceed with attainment designations for the Indianapolis and Louisville areas until the court rules on the CSAPR litigation. 63

64. 2011-2012 IDEM Major Goals Complete CAFO/CFO Rulemaking Process. Done Final Adoption November 9, 2011. Adopt Remediation Closure Guidance and Remediation Program Guidance as NPDs. Done presented to SWMB February 21, 2012. Effective March 22, 2012. Start Rulemaking for Numeric Nutrient WQS. 64

65. 2011--2012 IDEM Challenges Administratively reissue NPDES General Permits and address antidegradation requirements. Develop and implement plan for seamless implementation of water program responsibilities currently assigned to: IDEM, ISDH, IDNR, IDHS, and ISDA. 65

66. Questions? 66

67. 67 Brad Baughn Business & Legislative Liaison bbaughn@idem.in.gov 317-234-3386