1. IDEM and Agricultural Organizations Meeting February 17, 2011 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management 1

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. 5 Performance Metrics Dec 2010 Quality of Hoosiers' EnvironmentResultTargetComments % of Hoosiers in counties meeting air quality standards 99.99%100%80%Muncie Lead—675 people % of CSO Communities with approved programs to prevent the release of untreated sewage 95.4%100%20% 94+9 (103) out of 98+9 (108) % of Hoosiers receiving water from facilities in compliance with safe drinking water standards 99.3%99%95% Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute Land 12,40266,56586,864 Air 21,789207,000385,000 Water 24,55848,000200,000 * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards Inspections 96.45%97%75% Self reporting 96.60%99%95% Continuous monitoring (COM) 99.82%99.90%99% * 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. Discussion Topics IDEM Legislative Agenda. Rules: – Greenhouse Gas Permitting. – Outdoor Hydronic Heaters. Water Issues. Land Issues. 7

8. 2011 IDEM Legislative Agenda No fee increase proposals. IDEM Issuance of NPDES General Permits. – SB200 Passed the Senate on January 25, 2011. Permit Terms. Conflict of Interest of board members. SB565 Solid Waste Management Districts. – Define duties and funding for SWMDs. – Will be referred to the EQSC for further study. 8

9. 2011 IDEM Legislative Agenda SB 433 Environmental issues is the IDEM general bill that passed the senate last year (passed Senate this year). – Authorization to pursue delegation for U.S. ACE 404 and U.S. EPA UIC programs. – EQSC study of funding for environmental programs. – Solid Waste Landfill instead of Sanitary Landfill. – Replace “wastewater” with “septage.” – Many other fix-up issues (47 sections). 9

10. Other Environmental Bills HB 1187 Satellite manure storage passed House. HB 1451 Mint distilling operations—to EQSC. SB 202 Satellite manure storage, anaerobic digestion and gasification facilities, storm water exemption passed Senate. 10

11. Other Environmental Bills Over 1,800 bills have been introduced this year. There are at least 40 introduced bills which relate to environmental matters in some way. IDEM’s legislative liaison works with bill sponsors and members of the legislature to make them aware of the environmental impacts of proposed legislation. 11

12. Why GHG Air Permits? On 1/1/2011 EPA made GHG emissions subject to Clean Air Act permitting requirements. Without the “Tailoring Rule” a farm with 101 cows or using 4 mmcf (40 therms) of natural gas would require a permit. The Tailoring Rule increases those permitting thresholds to 40,000 cows or 16,670 therms of natural gas use. 12

13. GHG Air Permits All permits issued after 1/1/2011 that require PSD review and also increase GHG emissions by at least 75,000 tpy need GHG BACT. All permits issued after 6/30/2011 that increase GHG emissions by 75,000 tpy need GHG BACT and all sources with GHG emissions of at least 100,000 tpy need operating permits. If IDEM does not issue the permits, EPA will. 13

14. GHG Air Permits IDEM has used the expedited Section 8 rulemaking process and emergency rulemaking to obtain legal authority to issue the federally required GHG permits starting on 1/3/2011. We can use the same process to adjust the rule for any changes due to congressional or court action. 14

15. Outdoor Hydronic Heaters Rule scheduled for final adoption consideration at the March 2, 2011 Air Pollution Control Board meeting in Lafayette, IN. The current issue of the Air and Waste Management Association’s Environmental Manager publication has articles on the air pollution impacts of these devices. 15

16. Indiana Water Issues Environmental Group Petition for Withdrawal of Approval of the NPDES Program. –Antidegradation. –General Permits. –Coal Mines. Algae issues and nutrient regulations. – Great Lakes, Gulf of Mexico, Ohio River, Indiana lakes, rivers and reservoirs. Pesticide General Permit. 16

17. Potential Regulatory Issues--Land RISC guidance Nonrule Policy Document and regulations implementing HB1162. Coal combustion waste regulations. U. S. EPA to speed up review of pollutant risk evaluations. 17

18. Thank You Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov 18