1. 2004 OLQ FOCUS Petroleum PigsPiles

2. Tank Universe z14,500 Registered Underground Storage Tanks z7,870 Total Releases reported to date z4,025 have been cleaned up z3,845 active sites zAverage 200 new releases each year zAverage cleanup costs covered by ELTF $139,000

3. Purpose of Petroleum Storage Tank Excess Liability Trust Fund (ELTF) zELTF effective April 1, 1988 to: yAssist owners / operators to establish financial responsibility required by Federal Law yProvide money to satisfy costs /liabilities incurred for corrective action yProvide money for indemnification of third parties yProvide money for expenses incurred by the Department to administer the fund

4. zUnderground Storage Tank Fees $90/tank/year (split 50/50 with PetroleumTrust Fund) generates ~ $650,000 annually for ELTF zOil Inspection Fees $0.40/50 gallon of gasoline or kerosene (diesel fuel excluded) generates ~ $32,000,000 annually Sources of Money for the Trust Fund

5. Fund Activity in Millions

6. Why is the Fund Balance going down? zNumber of claims has increased significantly y1996 400 claims submitted y1998 648 claims submitted y2000 1626 claims submitted y2002 2719 claims submitted

7. Possible Consequences of Declining ELTF Balance zStatute requires the Financial Assurance Board (FAB) establish a priority for paying claims to facilities that represent an immediate and significant threat to the environment. zFAB rules require only high priority claims be paid if Fund balance drops below $25 million.

8. Consequences (cont.) zIt is expected that the fund will go below $25 million in the next year. zClaim payments would be delayed for cleanups not considered a high priority. zRisk of EPA determining the fund is not solvent and no longer adequate to provide financial assurance. zOwners/operators required to obtain insurance.

9. ELTF Rule Revisions zELTF Rule is being revised to address several issues. yMaking remedies cost effective yAdjusting cost allowances yReducing mark up of subcontractor costs yPrioritization of claims zPreliminary Adoption in Feb. or Mar. 2004

10. Who is Regulated? zPursuant to Confined Feeding Control Law confined feeding operation defined as: yConfined Feeding of at least: x300 Cattle x600 Swine x600 Sheep x30,000 Fowl yOperation that causes a water quality violation

11. Who is Regulated? zThe state has had a program to regulate CFOs since the mid 1970’s. zThe Water Pollution Control Board adopted rules in 2001 to govern design, construction, operation of all CFOs in the state. zEPA has passed rules that bring in other species of animals and requires an NPDES permit for larger facilities.

12. Confined Feeding Operations zIndiana has 2400 Confined Feeding Operations that have state Confined Feeding Operation (CFO) approvals zIndiana has about 550 CFOs that meet the federal definition of Concentrated Animal Feeding Operations (CAFO) zIndiana has believed and argued to U.S. EPA, that the state program is functionally equivalent to the federal program

13. Confined Feeding Operations zDeveloping a General NPDES Rule zWorkgroup with Industry, Environmentalists, Purdue and NRCS zRule to Water Board in January 2004 zGuidance and implementation

14. Waste Tires zRegulatory Program zClean up Program zMarket Development

15. Tire Regulatory Program zCurrently there are 30 Waste Tire Processors, 2 Storage Sites and 89 Transporters that are registered zBan on disposal of whole tires into landfills zDealers required to manifest tires

16. Tire Pile Clean Up z1993 - $.25 per tire fee zSince 1993 removed ~7.6 million tires and spent $6.7 million zCleaned up states largest pile z2004 $1.3 million budgeted zConcern with processing sites

18. Enforcement zSince Oct. 31st IDEM has obtained court ordered Temporary Restraining Orders for 4 Tire Processing Facilities zCumulative their storage amounts to 2.5 million passenger tire equivalents

19. Market Development zFY 03 IDEM gave $90K to five schools for field amendment pilots zFY 04 budgeted $300K for tire reuse / recycling projects zIdentifying obstacles to Tire Derived Fuel zApplications in septic leach fields zINDOT - lightweight fill in embankments