1. IDEM Update Indiana Industrial Operators Association April 9, 2013 Thomas W. Easterly, P.E., BCEE Commissioner Indiana Department of Environmental Management 1

2. 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

3. 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

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. Clean up contaminated sites to eliminate public exposure to toxics and return properties to productive use. 4

5. Performance Metrics December 2012 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 98.15%100%90% 97+9 (106) out of 99+9 (108) % of Hoosiers that receive water from facilities in full compliance with safe drinking water standards 99.30%99%95% Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute* Land25,70623,67826,856 27,856 statutory Air47,79050,03355,919 58,863 statutory Water34,50155,97262,557 65,850 statutory * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards* Inspections97.67%97%75% Self reporting97.45%99%95% Continuous monitoring (COM)99.82%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 6

7. 25 Years of Progress http://www.in.gov/idem/files/state_of_environment_2011.pdf 7

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9. 9 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.

10. 10 Permits — Percent of Statutory Days

11. 11 Comparison of Region 5 States Permitting Program Status Compiled by U.S. EPA Region 5 for July 26, 2012, State Environmental Directors Meeting

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13. 13 Status of All Facilities Covered by Current NPDES Permits (as of 7/6/12) Status of All Facilities Covered by Current Permits (as of 7/6/12)

14. 14 25 Years of Progress Water Quality: Combined Sewer Overflows −All 98 State lead CSO Communities and 8 of the 10 Federal lead Communities have entered legal agreements to address their CSO issues. −We are working with U.S. EPA to finish the remaining 2 Federal lead CSO communities. −At least 41 of the CSO communities have completed their projects to address the release of untreated sewage during rain events.

15. 15 Water Quality

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18. 18 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.

19. 19 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%

20. 20 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 1970s. 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

21. 21 Attains Does Not Meet the PM Standards Does Not Meet the Ozone Standard Does Not Meet Ozone and PM Standards Location of the State Capitals State Boundaries Ozone and Particulate Air Quality 2009 to 2011

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26. 26 CO 2 (Greenhouse Gasses) In April 2012, U.S. EPA proposed New Source Performance Standards (NSPS) for Greenhouse Gas (GHG) Emissions for certain Electric Utility Generating Units (EGUs). The rules only apply to large new fossil fired Electrical Generating Units in the continental United States. −Simple cycle gas turbines are exempt (even though the more efficient ones currently meet the rule).

27. 27 CO 2 (Greenhouse Gasses) Combined cycle gas turbines will meet the rule. Coal fired units will not meet the rule without using carbon capture and storage. Carbon capture and storage: −is not yet commercially available, −has not yet been demonstrated at commercial scale, and −is likely to be prohibitively expensive.

28. 28 CO 2 (Greenhouse Gasses) Is a rule which effectively prohibits the construction of new electrical generating facilities that use coal in the United States going to make a significant difference in emissions? 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.

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30. CO 2 (Greenhouse Gasses) In the spring of 2012, the Environmental Council of the States (ECOS) passed resolution 12-1, “Challenges of Achieving Significant Greenhouse Gas (GHG) Emissions Reductions.” A copy of this resolution is available at: www.ecos.org/files/4711_file_Resolution_12 _1_Challenges_of_GHG_reductions.doc 30

31. 31 CO 2 (Greenhouse Gasses) The resolution requests that the U.S. EPA develop one or more scenarios that will produce an 80% 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.

32. 32 CO 2 (Greenhouse Gasses) U.S. EPA has decided not to spend the resources required to develop the requested scenario, but rather to develop rules to reduce GHG emissions, even if these rules do not materially reduce U.S. emissions. The NSPS for EGUs effectively bans new coal fired facilities in the U.S. without any public plan to actually reduce U.S. (or world) GHG emissions to the levels advocated by the National Academy of Sciences.

33. 33 Questions? Tom Easterly Commissioner Indiana Department of Environmental Management (317) 232-8611 teasterly@idem.IN.gov