Transcript IDEM Update Central Indiana Technical and Environmental Societies (CITES) April 17, 2007 Thomas W.

IDEM Update
Central Indiana Technical and
Environmental Societies (CITES)
April 17, 2007
Thomas W. Easterly, P.E., DEE, QEP
Commissioner
IN Department of Environmental Management
New State Laws impacting IDEM
from the 2006 Legislative Session
HB1110—Removal of Mercury Convenience
Switches from End of Life Motor Vehicles.
SB 234—Improving the rulemaking process
for wet weather discharges and authorizing
the Environmental Stewardship Program.
HB1117—Simplifying the solid waste statutes
and eliminating the groundwater task force.
SB 146—Removing the Property Transfer
Disclosure Form from Statute.
IDEM’s Environmental Goal
Increase the personal income of all Hoosiers
from the current $0.88/$1.00 of the national
average to at least $1.00/$1.00 of the national
average while maintaining and improving
Indiana’s Environmental Quality.
Pilot 2006 Environmental
Performance Index
Yale Center for Environmental Law & Policy
Yale University
Center for International Earth Science Information
Network (CIESIN)
Columbia University
http://www.yale.edu/epi/
How Will IDEM Help Increase
Personal Income?
Clear, consistent and speedy decisions
Clear regulations
 Assistance first, enforcement second
 Timely resolution of enforcement actions
 Every regulated entity will have current valid
permits without unnecessary requirements
 Written Standard Operating Procedures
 Improved staff training and development

Performance Metrics
Quality of Hoosiers' Environment
Result
Target
Comments
% of Hoosiers that live in counties that meet air
quality standards
85%
100%
80%
2 counties @ 964,725 of
6,271,973 failed
% of CSO Communities with approved
programs to prevent the release of untreated
sewage
48%
100%
20%
75% by 2007 is goal
Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute
Land
Air
Water
81,726
66,565
86,864
208 permits
321,262
207,000
385,000
699 permits
85,443
48,000
200,000
82 permits
* Places emphasis on back logged permits
Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards
Inspections
96.84%
97%
75%
Self reporting
94.99%
99%
95%
Continuous monitoring (COM)
99.61%
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
$3,100,00
$0
$3,447,017
Will require increase in
head count to accomplish
Counties above AQ Standards
January 10, 2005
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Allen--Ozone
Boone--Ozone
Clark—PM & Ozone
Dubois--PM
Elkhart--Ozone
Hamilton--Ozone
Hancock--Ozone
Madison--Ozone
Marion—PM & Ozone
Shelby--Ozone
St. Joseph--Ozone
January 1, 2007
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Clark--PM
Marion--PM
Ozone Attainment Status
PM2.5 Attainment Status
PM 2.5 Status
New 24 hour standard issued in September,
2006—Annual standard retained
Designations will initially be based upon
2004-2006 air quality, but the process will
allow the use of data up to 2009
New nonattainment designations April 2010,
SIPS due 2013
SIPS for current nonattainment areas due
April, 2008—we may try redesignations
PM 2.5 Status
Based upon monitored 2004-2006 Air
Quality, the following locations exceed the
new 35 microgram per cubic meter short
term PM 2.5 Standard:
Jeffersonville (Clark County) 37
 SW Purdue Ag Center (Knox County) 36
 Gary IITRI (Lake County) 38
 Gary Burr St. (Lake County) 38
 Indianapolis S. West St. (Marion County) 38
 Indianapolis English Ave (Marion County) 37
 Indianapolis W 18th St. (Marion County) 37

Permitting
IDEM is still meeting
the statutory
deadlines for permit
issuance, as
reported in past
years
IDEM now tracks the
total calendar days
a permit is in house
and is applying a
deadline to permits
that traditionally do
not have a statutory
deadline; as a new
interpretation to the
intent of statutes
Total Permit Calendar Days
600000
500000
400000
300000
200000
100000
0
5
5
6
6
6
7
/200 /30/200 /31/2005/31/200 /30/200 /30/200 /31/2006/31/200 GOAL
0
3
/
6
9
3
6
9
3
12
12
AL
INITI
Air
Water
Land
Air Permits for New Facilities
New Toyota Production at Lafayette
Subaru Facility
Louis Dreyfus Soy Biodiesel Plant—
Largest in the US
A dozen new Ethanol Production
Facilities with ten pending
Honda Greensburg NSR permit issued
in 94 days
Percent of Activities Meeting Regulations
100.00%
98.00%
96.00%
94.00%
92.00%
90.00%
88.00%
Inspections
005 0/2005 /2005 1/2006 0/2006 0/2006 /2006 1/2007
AL Self Reporting
2
/
O
0
1
1
G
3
3
3
3
3
3
/
/
/
/
/
/
6
9
3
6
9
3
IAL
12/3
12/3
T
I
N
I
Emission Monitoring
Office of Enforcement
2002-2007
2002 2003 2004 2005 2006 2007*
Referrals
887
607
467
547
591
134
Violation Letters
Notice of
Violations
Agreed Orders
Commissioner's
Orders
Dismissals
17
33
47
203
231
47
561
457
318
202
427
66
311
349
314
258
417
62
15
15
6
41
38
7
125
121
44
48
46
5
Major Regulatory Initiatives
Regulations to facilitate the proper
management of e-Scrap
Rulemaking to require the removal of
mercury convenience switches from
automobiles prior to crushing or shredding
Rulemaking to allow Performance Track
(Indiana Environmental Stewardship
Program)—Charter Members Announced in
February 2007
Major Regulatory Initiatives
Outdoor Wood Fueled Boilers—EQSC Report
recommended waiting to proceed until EPA
issues its model rule in January 2007
Utility NOx, SO2 and Mercury emission rules:
CAIR, which regulates NOx and SO2, was adopted
by the Air Pollution Control Board in November.
 CAMR, regulating mercury, was due to EPA on
November 17, but Indiana does not have a Final
Rule because there has been no resolution of
issues between Utilities which favor the federal
program and the Hoosier Environmental Council
which favors a 90% reduction—APCB May 2, 2007
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Major Regulatory Initiatives
Rulemaking to establish presumptive 8-1-6 VOC
BACT controls to streamline permitting:
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Acid Scrubbers for foundry core making amines—
Withdrawn at Request of INCMA
Compliance with certain NESHAPs--Continuing
Ethanol Plant BACT—Final Adoption 12/6/2006
Possible statewide regulations on the formulation of
consumer products (i.e. air fresheners, deodorants,
etc.) and paint products to ensure continued
compliance with the Ozone standard and reduce our
impact on neighboring States—First Notice Soon
Adjustments to the Title V fees to fully fund the
program—Air Board Adoption 12/6/2006
IDEM Fees & Fund Balances
Title V Example
Significant Communication Challenge:
Auditor reports the “check book balance” for each
fund on June 30
 IDEM collects almost all of its Title V fees in the
2nd Quarter of each year.
 IDEM’s June 30 fee balance is similar to a
person’s check book balance right after
depositing their paycheck
 IDEM must pay all of its bills until the next pay
day (next June 30) without overdrawing

IDEM Fees & Fund Balances
Title V Example
For the last five years (FY 02-FY 06), Title V
fund expenditures have exceed revenues by
$5,771,277, yet the June 30, 2006 check
book balance was $10,039,779 which many
people believe is a healthy fund balance.
This fund balance is insufficient to cover the
estimated $10,587,184 in expenditures up to
the date of receipt of new funds in the 2nd
Quarter of 2007.
IDEM Fees & Fund Balances
Title V Example
The “payday checkbook balance” minus the
expenditures before the next pay day gives
the “minimum cash in the check book” which
is projected to be negative by $547,405
during FY 06.
The actuarial fund balance (assets less
contracted liabilities) is much worse because
the fund has $6,131,187 in contractual
obligations and its projected lowest net worth
is actually a debt of $6,678,592.
05-06 Available Cash by Month
FY 2006
7-31-2005
Available Cash Balance
5,160,120
8-31-2005
5,106,237
9-30-2005
2,670,495
10-31-2005
391,762
11-30-2005
(1,197,329)
12-31-2005
(1,170,121)
1-31-2006
2-28-2006
(2,876,751)
889,278
3-31-2006
5,464,556
4-30-2006
5-31-2006
4,763,721
4,182,213
6-30-2006
3,767,774
Available Cash Balance
6,000,000
$5,464,556
$5,106,237
5,000,000
$5,160,120
$4,763,721
4,000,000
$4,182,213
3,000,000
2,000,000
$2,670,495
1,000,000
$889,278
$391,762
0
(1,000,000)
(2,000,000)
(3,000,000)
(4,000,000)
($1,170,121)
($1,197,329)
($2,876,751)
$3,767,774
2007 Legislative Issues
Budget—SB432
Federal Funds continuing to decrease
 State General Funds fluctuate
 Dedicated Funds: Except for Title V, fees
collected for do not relate to program costs—
some programs like Methamphetamine Clean-up
and Mercury Switch Management completely
unfunded (Recently adjusted Title V fees)

Consider Prohibiting the Commissioner from
renewing a permit for a facility that was not
constructed or has not operated for the past 5
years—SB205
IDEM Budget Comparisons
(w/o ELTF)
2005-2007
$240,798,257
Federal: $84,618,622
(35.1%) Red
Dedicated: $91,318,803
(37.9%) Green
2007-2009
$206,249,350
Federal: $57,530,097
(27.9%) Red
General: $64,860,832 Dedicated: $86,969,087 General: $61,750,166
(29.9%) Lt. Aqua
(42.2%) Green
(29.9%) Lt. Aqua
IDEM Fees (Thousands)
FY 07-09
Air
Water
Land
Total
Income
$19,815
$22,100
$27,500
$69,415
Expense
$25,008
$27,296
$37,571
$89,875
Spend
Down
-$5,193
-$5,196
-$10,071
-$20,460
Annual
-$2,596
-$2,598
-$5,036
-$10,230
Proposed
Increase
$2,500
$2,461
$4,094
$9,056
Efficiency
$96
$137
$942
$1,174
Environmental Crimes Task Force
SB286
Environmental Crimes Task Force
Created by SEA 195 (2005) has been
meeting since October, 2005.
Chaired by Senator Kenley then Rep
Walorski
Developing more specific environmental
criminal statutes.
2007 Legislative Issues
Streamlined Rulemaking when adopting
Federal Requirements (including deadlines)
without change SB154
Ask the 2007 EQSC to study Environmental
Rulemaking Process SB154
Current Roles of Environmental Districts
Regional Water and Sewer Districts
 Solid Waste Management Districts (Recycling)
SB154

Questions?
Tom Easterly
100 N. Senate Ave. IGCN 1301
Indianapolis, IN 46204
(317) 232-8611
Fax (317) 233-6647
[email protected]