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Thomas W. Easterly, P.E., DEE, QEP Commissioner IN Department of Environmental Management

IDEM Update & Air Quality Overview Air and Waste Management Association Winter Technical Meeting December 12, 2006. Thomas W. Easterly, P.E., DEE, QEP Commissioner IN Department of Environmental Management. New State Laws impacting IDEM from the 2006 Legislative Session.

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Thomas W. Easterly, P.E., DEE, QEP Commissioner IN Department of Environmental Management

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  1. IDEM Update & Air Quality OverviewAir and Waste Management AssociationWinter Technical MeetingDecember 12, 2006 Thomas W. Easterly, P.E., DEE, QEP Commissioner IN Department of Environmental Management

  2. 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.

  3. 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.

  4. 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/

  5. 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

  6. How Does IDEM Protect the Environment? • Measure the air, water and land to determine the existing state of the environment • Compare the measured values to levels that protect human health and the environment • Ambient Air Quality Standards • Water Quality Standards • Safe soil and ground water clean up levels • Use modeling to determine how much of a substance can be added to the environment

  7. 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

  8. Performance Metrics

  9. January 10, 2005 Allen Boone Clark Dubois Elkhart Hamilton Hancock Madison Marion Shelby St. Joseph October 1, 2005 Clark Dubois Hamilton Marion Counties above AQ Standards

  10. January 1, 2006 Clark Dubois Hamilton Marion Vanderburgh October 1, 2006 Clark Dubois Marion Vanderburgh Counties above AQ Standards

  11. Ozone Attainment Status

  12. PM2.5 AttainmentStatus

  13. PM 2.5 Status • New 24 hour standard issued in September—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

  14. 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 Permitting

  15. Total Permit Calendar Days

  16. Air Permits for New Facilities • New Toyota Production at Lafayette Subaru Facility • Louis Dreyfus Soy Biodiesel Plant—Largest in the US • Seven new Ethanol Production Facilities with eight pending • Honda Greensburg NSR permit issued in 94 days

  17. Percent of Activities Meeting Regulations

  18. Office of Enforcement2002-2006 * December 7, 2006

  19. 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)—Will be accepting applications in September

  20. Major Regulatory Initiatives • Outdoor Wood Fueled Boilers—EQSC Report recommended waiting to proceed until EPA issues its model rule • 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

  21. Major Regulatory Initiatives • Rulemaking 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

  22. 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

  23. 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.

  24. 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.

  25. FY 06 Available Cash by Month

  26. Possible Issues for 2007 Legislation

  27. Possible 2007 Legislative Issues • Budget • 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 (Considering adjusting 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

  28. EnvironmentalCrimes Task Force • Environmental Crimes Task Force Created by SEA 195 (2005) has been meeting since October, 2005. • Chaired by Senator Kenley • Developing more specific environmental criminal statutes. • Plan to develop legislation for consideration in the 2007 session.

  29. Possible 2007 Legislative Issues • Streamlined Rulemaking when adopting Federal Requirements (including deadlines) without change • Ask the 2007 EQSC to study Environmental Rulemaking Process • Current Roles of Environmental Districts • Regional Water and Sewer Districts • Solid Waste Management Districts

  30. Possible 2007 Legislative Issues • Streamline the OEA (Office of Environmental Adjudication) Process, especially for permit appeals. Issues include: • Standing (i.e. who can appeal) • Timeliness of Decisions • The Standard of Review (i.e. Arbitrary and Capricious) • Potential for the Collection of Damages • Inactive legislative issue—Supplemental Environmental Project Banking.

  31. Questions? Tom Easterly 100 N. Senate Ave. IGCN 1301 Indianapolis, IN 46204 (317) 232-8611 Fax (317) 233-6647 teasterly@idem.in.gov

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