IDEM Update CITES Annual Environmental Symposium April 24, 2009 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

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Current State Budget Balances

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Response to Reduced State Income

• • • • • Eliminated 2009 raises.

Strategic Hiring Review—Using attrition to reduce spending.

Reduce/eliminate grants, contracts, etc.

Restrictions on travel and purchasing.

Will maintain essential State services.

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IDEM Staffing Levels

Fiscal Year Budgeted Filled 1,100

N U M B E R

900 700 500 300 2004 1,054 895 2005 1,054 918 2006 1,063 915 *2007 1,063 927 *2008 1,031 954 *2009 1,031 950 *2010 983 983 *2011 983 983 100 * The increases in staff reflect the following:

(4) new LUST Inspectors to meet Federal Energy Policy Act (7) OLQ staff to replace the outsource contract for UST technical reviews, saving $1.6M

(11) OAQ staff to replace the outsource of permitting contracts, saving $5M (15) SFR and Brownfield staff at IFA (5) OWQ staff from ISDA to meet Rule 5 requirements (2) OPPTA staff from Lt Gov Office 4

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.

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Pilot 2006 Environmental Performance Index

  

Yale Center for Environmental Law & Policy

Yale University

Center For International Earth Science Information Network (CFIESIN)

Columbia University http://www.yale.edu/epi/ 6

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• • • •

How Does IDEM Protect the 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.

Enforce against people who exceed their permit levels or violate regulations.

Educate people on their environmental responsibilities.

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Performance Metrics Mar 2009

Quality of Hoosiers' Environment

% of Hoosiers in counties meeting air quality standards Result

98% 100%

Target

80%

Comments

1 county & 106,673 of 6,376,792 above standard

% of CSO Communities with approved programs to prevent the release of untreated sewage

93% 100% 20% 90+9 (99) out of 98+9 (107) Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute

Land

27,110 66,565 86,864 174 permits

Air

82,806 207,000 385,000 365 permits

Water

34,500 48,000 200,000 109 permits * Places emphasis on back logged permits Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards

Inspections

97.14% 97% 75%

Self reporting Continuous monitoring (COM)

92.90% 99% 95% 99.66% 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 $1,400,000 $0 $3,447,017 $1.4 OLQ 9

Performance Metrics June 2005

Quality of Hoosiers' Environment

% of Hoosiers in counties meeting air quality standards % of CSO Communities with approved programs to prevent the release of untreated sewage Result

61% 4% 100% 100%

Target

80% 20%

Comments

12 counties & 2,408,571 of 6,195,643 above standard 75% by 2007 is goal Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute

Land

100,013 66,565 86,864

Air

511,000 207,000 385,000

Water

301,000 48,000 200,000 * 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 Continuous monitoring (COM)

97.11% 99% 95% 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 10

New Drinking Water Metric

• Percent of Hoosiers Drinking Safe Water: – Percentage of Indiana population that receives drinking water from facilities that are in full compliance with safe drinking water regulations.

– Federal (EPA) Goal is 95%.

– Indiana Goal is 99%.

– Indiana Current Actual is 98.5%.

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Accomplishments

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Air Quality Non-Attainment Designations: PM2.5, Ozone & SO

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– Entire State Designated Attainment for SO 2 .

– Entire State met the 0.08 ppm Ozone air quality standard for the period 2006-2008, and we are working with USEPA to have Lake and Porter Counties designated attainment.

– Entire State also met the 0.075 Ozone air quality standard for the year 2008.

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Accomplishments

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Air Quality Non-Attainment Designations: PM2.5, Ozone & SO

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– All but Clark County met the PM 2.5

Air Quality Standards for the period 2006-2008.

– All but a small portion of Muncie in Delaware County appears to meet the new lead standard— more monitors will be needed.

– Hoosiers are breathing healthier air.

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Accomplishments

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CSO’s/Long Term Control Plans

– All 97 State lead CSO Communities and 2 of the Federal lead Communities have entered legal agreements to address their CSO issues.

– We are working with USEPA to speed the progress on the remaining 8 Federal lead CSO communities.

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Accomplishments

Redevelopment of Contaminated Sites Including: Brownfields; Voluntary Remediation Program; LUST; and RCRA Corrective Action.

– Indiana has a fully funded Excess Liability Trust Fund to pay for petroleum clean ups from currently operated tanks.

– Indiana is updating its Risk Integrated System of Clean-ups Guidance Document.

– We plan to have a Lean/Kaizen event this year to improve the transparency of these programs.

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Accomplishments

• • All 1,269 tons of VX Agent stored at the Newport Chemical Agent Facility since 1969 has been safely destroyed. VX destruction started in May of 2005 and was completed in August 2008. Digital Inspector Tool is in use for solid waste inspections including CAFOs, and Auto Salvage Yards.

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• • •

Accomplishments

Not yet issued Title V permits—All Issued by early 2007.

Lean/Kaizen Methodology to improve efficiency

– Significant Source Modifications (Construction Approvals) 9/07 Event • Process time reduced from 220 days to 121 days avg. – Permit Renewals 12/07 Event • Process time reduced from 678 day avg. to all those issued in ’08 within 270 days allowed (calendar days)

Eliminate backlog of administratively extended permits

– 1/1/08 - 156 permits—currently no backlogged permits.

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Accomplishments

Administratively extended NPDES permits.

– 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 18

Referrals Violation Letters Notices of Violation Agreed Orders Commissioner’s Orders Dismissals Complies/Closed AG Referrals

Office of Enforcement

2003

607 5,222 457 349 15 121 308 13

2004

467 4,980 318 314 6 44 312 17

2005

547 4,268 202 258 41 48 317 4

2006

591 4,024 427 417 38 46 577 33

2007

606 3,958 420 372 39 57 568 52

2008

437 4,092 321 364 32 40 386 22 19

Criminal Convictions

• • Wabash Environmental Technologies and Derrik Hagerman—Clean Water Act felonies. Sixty months of imprisonment and $237,000 in restitution (Terre Haute).

Miller Environmental and Anthony MuCullough—Clean Water Act felonies. Four months imprisonment and $510,000 in penalties (Shelbyville and Rushville).

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Criminal Convictions

• Richard Reece—RCRA felonies. Six months in half way house, six months home detention and $60,000 restitution (Muncie).

• Hassan Barrel and Alan Hersh—RCRA felonies. Fifteen months of imprisonment plus $2.7 million in restitution (Fort Wayne).

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Criminal Convictions

• • Erler Industries—Clean Air Act Criminal Pleas for false reporting (North Vernon).

– $1,000,000 Criminal Fine.

– $100,000 to IDEM for Hybrid Vehicles.

– $25,000 to the Midwest Environmental. Enforcement Association for training.

Individual Operators and Laboratories—False reporting cases.

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Agency Initiatives

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Electronic Permits and Reporting

– Virtual File Cabinet—electronic filing system with over 42,500,000 pages now online.

– TEMPO—Enterprise wide electronic integration of all IDEM information—part of the insfrstructure to receive and process electronic permit applications and reports • Two programs accepting electronic submittals, 401 Certifications and Community Right to Know 23

Agency Initiatives

• • EDMR—Electronic reporting of waste water discharge monitoring reports.

– Currently being piloted by about 100 facilities.

– Expect to be available for all facilities in June of 2009.

Active assistance to facilities that announce layoffs and closing to prevent environmental Incidents.

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Agency Initiatives

• • Returned enforcement function to the air, water and land programs and eliminated the separate office of enforcement.

Provide consistent Statewide air quality permitting, monitoring and enforcement services by directly managing the air program functions previously contracted to: Anderson, Evansville, Gary, Hammond, Indianapolis, and Vigo County.

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Reasons for Enforcement Change

• • • • No improvement in compliance rates in 4 years.

EPA HQ told me both enforcement models (separate office or in program) are used effectively.

Enforcement was regularly “waiting on program staff” under the control of other managers.

Unpublished enforcement policies resulted in unexpected actions—too timid and too aggressive.

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Percent of Activities Meeting Regulations

102,00% 100,00% 98,00% 96,00% 94,00% 92,00% 90,00% 88,00% 01.06.2005

01.12.2005

01.06.2006

01.12.2006

01.06.2007

01.12.2007

01.06.2008

01.12.2008

Inspections Self Reporting Emission Monitoring 27

Compliance and Enforcement Response Policy (CERP)

• • CERP was last revised in 2003 and was an internal IDEM document.

In order to meet our goal of transparency we decided to update the CERP and publish it as a Non Rule Policy Document under IC 13-14-1 11.5. Draft signed for 45 day public comment period on 10/31/08. 28

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Compliance and Enforcement Response Policy (CERP)

The 45 day comment period ended in Mid December; but because of the changes to the enforcement structure, the CERP has been revised and was posted for another 45 day comment period on March 2, 2009.

After the end of the comment period, the CERP will be presented to the Air, Water and Solid Waste Boards.

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Challenges--2009

• • • New Administration—Possible new directions: – Greenhouse Gasses.

– Great Lakes Protections.

Wise Stewardship of Economic Stimulus Funds.

Final Resolution of Unresolved Issues Including: 30

US Courts Overturning Rules

• • • 2007—Industrial, Commercial and Institutional (ICI) Boiler MACT—directly impacted about 10 sources with coal fired boilers May 2008—Clean Air Mercury Rule (CAMR) impacted all Power Plants July 2008—Clean Air Interstate Rule (CAIR) impacted all Power Plants and most Indiana air pollution strategies 31

NRDC Statement on Tar Sands

• “BP’s decision to tap into the Canadian wilderness is ‘based on addiction, not reality,’ says Ann Alexander, senior attorney at the Natural Resource Defense Council (NRDC), a nonprofit environmental group. ‘Tar sands crude oil is dirty from start to finish. It’s bad enough that [BP is] fouling our natural resources here in the Midwest, but it’s completely destroying them up in Canada. There are good sources of energy we can turn to that don’t involve turning entire forests into a moonscape.’” 32

Questions?

Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 [email protected]

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