IDEM Update & Air Quality OverviewIndiana Cast Metals Association

March 6, 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 & PolicyYale 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 decisionsClear regulationsAssistance first, enforcement secondTimely resolution of enforcement actionsEvery regulated entity will have current valid

permits without unnecessary requirementsWritten Standard Operating Procedures Improved staff training and development

Performance MetricsQuality of Hoosiers' Environment Result Target Comments

% of Hoosiers that live in counties that meet air quality standards85% 100% 80%

2 counties @ 964,725 of 6,271,973 failed

% of CSO Communities with approved programs to prevent the release of untreated sewage 50% 100% 20% 75% by 2007 is goal

Permitting EfficiencyTotal calendar days accumulated in issuing environmental permits, as determined by state statute

Land 93,916 37,430 86,864 208 permits

699 permits

82 permits

Air 337,792 207,731 385,000

Water109,016 44,550 200,000

* Places emphasis on back logged permits

ComplianceTotal percentage of compliance observations from regulated customers within acceptable compliance standards

Inspections 93.20% 97% 75%

Self reporting 95.55% 99% 95%

Continuous monitoring (COM) 99.91% 99.90% 98.95%

* Tracks observations and not just inspections

Organizational TransformationBudgetary agency dollars spent on key outside contracts for core agency functions.

Dollars spent on outside services per year$3,179,367 $0 $3,447,017

Will require increase in head count to accomplish

Counties above AQ StandardsJanuary 10, 2005 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 Clark--PM Marion--PM

Ozone Attainment Status

PM2.5 Attainment Status

PM 2.5 StatusNew 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 StatusBased 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) 37SW Purdue Ag Center (Knox County) 36Gary IITRI (Lake County) 38Gary 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

0

1 0 0 0 0 0

2 0 0 0 0 0

3 0 0 0 0 0

4 0 0 0 0 0

5 0 0 0 0 0

6 0 0 0 0 0

A i r

W a t e r

L a n d

Air Permits for New Facilities

New Toyota Production at Lafayette Subaru FacilityLouis Dreyfus Soy Biodiesel Plant—Largest in the USA dozen new Ethanol Production Facilities with ten pendingHonda Greensburg NSR permit issued in 94 days

Percent of Activities Meeting Regulations

8 8 . 0 0 %

9 0 . 0 0 %

9 2 . 0 0 %

9 4 . 0 0 %

9 6 . 0 0 %

9 8 . 0 0 %

1 0 0 . 0 0 %

I n s p e c t i o n sS e lf R e p o r t i n gE m i s s i o n M o n i t o r i n g

Office of Enforcement2002-2006

2002 2003 2004 2005 2006

Referrals 887 607 467 547 591

Violation Letters 17 33 47 203 231

Notice of Violations

561 457 318 202 427

Agreed Orders 311 349 314 258 417

Commissioner's Orders

15 15 6 41 38

Dismissals 125 121 44 48 46

Foundry Air IssuesIDEM started rulemaking to accept acid scrubbers as presumptive 8-1-6 VOC BACT for core making amines—withdrawn at the request of INCMA. BACT still applies.

Applicability of New Source Performance Standards (NSPS) Subpart UUU to sand reclamation operations and cooling towers at foundries. EPA’s October 16, 2006 letter.

Foundry Air IssuesCO Permitting Issue—IDEM’s Office of Enforcement worked with INCMA to develop “CO Emissions Guidelines” as a pathway for facilities that may not have considered all of their CO emissions to obtain the proper permit. So far, very few foundry operations have submitted information under this program. At the end of this program, normal enforcement procedures will apply to any improperly permitted CO emissions.

Major Regulatory InitiativesRegulations 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 InitiativesOutdoor 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—Second Notice

Major Regulatory InitiativesRulemaking to establish presumptive 8-1-6 VOC BACT controls to streamline permitting: 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 MonthFY 2006 7-31-2005 8-31-2005 9-30-2005 10-31-2005 11-30-2005 12-31-2005 1-31-2006 2-28-2006 3-31-2006 4-30-2006 5-31-2006 6-30-2006

Available Cash Balance 5,160,120 5,106,237 2,670,495 391,762 (1,197,329) (1,170,121) (2,876,751) 889,278 5,464,556 4,763,721 4,182,213 3,767,774

$391,762

($2,876,751)

$3,767,774$4,182,213

$4,763,721

$5,464,556

$889,278

($1,170,121)

$5,106,237

$5,160,120

$2,670,495

($1,197,329)

(4,000,000)

(3,000,000)

(2,000,000)

(1,000,000)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Available Cash Balance

2007 Legislative IssuesBudget—SB432Federal Funds continuing to decreaseState General Funds fluctuateDedicated 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

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 IssuesStreamlined Rulemaking when adopting Federal Requirements (including deadlines) without change SB154

Ask the 2007 EQSC to study Environmental Rulemaking Process SB154

Current Roles of Environmental DistrictsRegional Water and Sewer DistrictsSolid Waste Management Districts SB154

Questions?

Tom Easterly

100 N. Senate Ave. IGCN 1301

Indianapolis, IN 46204

(317) 232-8611

Fax (317) 233-6647

teasterly@idem.in.gov