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Environmental Quality Service Council Annual Presentation September 2, 2009

Environmental Quality Service Council Annual Presentation September 2, 2009. Indiana Department of Environmental Management. Presentation Format. Dan Murray – Assistant Commissioner, Air IDEM Accomplishments & Agency Initiatives Office of Air Quality Update

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Environmental Quality Service Council Annual Presentation September 2, 2009

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  1. Environmental Quality Service CouncilAnnual PresentationSeptember 2, 2009 Indiana Department of Environmental Management

  2. Presentation Format Dan Murray – Assistant Commissioner, Air IDEM Accomplishments & Agency Initiatives Office of Air Quality Update Bruno Pigott – Assistant Commissioner, Water Office of Water Quality Update 2009 Legislation Implementation Bruce Palin – Assistant Commissioner, Land Office of Land Quality Update 2009 Legislation Implementation Petroleum Cleanup Programs

  3. IDEM’s Mission 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.

  4. 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.

  5. Performance Metrics June 2005

  6. Performance Metrics July 2009

  7. Agency Accomplishments Virtual File Cabinet (VFC) project is 90% complete with 48.5 million documents now electronically available to the public. Agency-wide adoption of Continuous Improvement using Lean/Kaizen methodologies to improve processes and increase efficiency.

  8. Agency Accomplishments 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 meet the 0.075 Ozone air quality standard for years 2008 & 2009. Entire state currently meets both the annual and daily PM2.5 Air Quality Standards.

  9. Agency Changes IDEM changes to improve service, environmental quality and respond to tough fiscal times Ended contracts with Local Air Pollution Control Agencies Suspended certain grants and loans programs Returned enforcement staff to media program compliance branches Consolidated rulemaking sections into the Office of Legal Counsel

  10. Agency Changes: Local Contracts Continuation of IDEM’s goal to use efficiency gains to reduce contracting out of core environmental protection functions. Local Agency Contracts amounted to about $2M/year, not including IDEM oversight costs. Improves consistency across state with amount of oversight and application of regulations.

  11. Agency Change: Grant and Loan Program Suspension • Grants and Loans from the following non-reverting funds were suspended as of December 19, 2008: (as listed in budget report to legislature) • 2580 Recycling Promotion Assistance Fund • 2530 Solid Waste Recycling Fund • 2640 Waste Tire Fund • During economic crisis, it is critical to adequately fund core government functions such as public safety, education, and public health

  12. Agency Change: Enforcement No improvement in compliance rates in 4 years. Discussed enforcement models (separate office or in program) with EPA headquarters – both in use at EPA and other states and both can be effective Non-technical enforcement staff regularly “waiting on program staff” under the control of other managers to resolve cases. Enforcement-only responsibility = No incentive to resolve cases

  13. Agency Changes: Enforcement Returned enforcement function and staff to the air, water and land programs. Published Internal-Deliberative Compliance and Enforcement Response Policy (CERP) as a Non-rule Policy Document to increase transparency and facilitate understanding of the enforcement process.

  14. Compliance and Enforcement Response Policy (CERP) CERP was last revised in 2003 and was an internal IDEM document. In an effort to increase transparency, we updated the CERP and published it as a Non-Rule Policy Document under IC 13-14-1-11.5. It has been presented to 2 of the 3 rulemaking boards (APCB today) and will be effective 45 days from today.

  15. Agency Changes: Rulemaking In January 2009, consolidated separate air, water and land rulemaking sections into one Rules Development Branch located in IDEM’s Office of Legal Counsel. • Addressed ebb and flow of rulemaking in each media program • Provided opportunity to cross train media-specific rule writers • Better prepared for large rulemaking initiatives • Work closer with legal staff

  16. Ambient Air Quality across the State of Indiana currently meets all effective National Ambient Air Quality Standards (NAAQS). Air quality continues to improve each and every year. Note: Most NAAQS are currently being revised or scheduled for revision. Most, if not all, will be lowered to be more strict. Office of Air QualityAccomplishments

  17. Air Permits Branch Permit Accountability Reduced backlog from 157 permits 1/1/08 to 6 remaining on 2/1/09 Reduced permit days from 187,000 1/1/08 to 66,978 on 7/1/09 Measurement today based on calendar days not permit days Use of Contractors Ended contracts with (3) out-of-state permit contractors - $3.5M/yr. Ended contracts with local agencies, (4) with permit services - $2M/yr. Office of Air QualityAccomplishments

  18. Compliance & EnforcementBranch Integration of Compliance and Enforcement Responsibilities Inspector manages noncompliance issue through resolution Identify unpermitted sources – Surface Coating Industry Letters sent in January (± 600) Local Agency Responsibilities Compliance/Enforcement integration provided resources to inspect additional facilities Office of Air QualityAccomplishments

  19. If NAAQS will continue to be lowered, must have ongoing air quality assessment and planning activities. Each air episode is analyzed for cause and contribution Outreach efforts are targeted at nonattainment and maintenance areas during peak times of year Rulemaking focused on pollutants of concern Partner with IDEM’s Office of Pollution Prevention & Technical Assistance (OPPTA) to promote emission reductions through voluntary efforts Office of Air QualityGoal: Continue to Improve Air Quality

  20. IDEM Rules Website: http://www.in.gov/idem/4087.htm New feature allows users to sign up for rules, permits and other public notices (all IDEM programs) Noteworthy Air Rulemaking in Progress: Outdoor Hydronic Heaters (Woodfired Boilers) Article 2 Permitting Rules – includes public workgroup Office of Air QualityRulemaking

  21. Several state and federal rulemaking initiatives aimed at continued improvement of air quality: Clean Air Interstate Replacement Rule (CAIR) Stage 1 Vapor Recovery- Expand to Statewide Architectural, Industrial and Maintenance Coatings Organic Solvent Degreasing - Expand to Statewide Consumer and Commercial Products Office of Air QualityRulemaking

  22. Questions?

  23. NPDES Permit Backlog Reduction 2005: 263 backlogged permits 2009: 6 backlogged permits List includes: USS Gary Works. Under EPA review. US Midwest. Under EPA review. Arcelor Mittal Burns Harbor. Under EPA review Arcelor Mittal Indiana Harbor East. Drafting. Arcelor Mittal Indiana Harbor West. Drafting. Hoosier Merom. Drafting. Office of Water QualityAccomplishments

  24. Combined Sewer Overflow Reductions 107 Communities with Combined Sewers Two largest Combined Sewer Communities implementing plan to reduce overflows 99 Communities with approved plans or under enforceable mechanism to develop and implement plans 9 Communities being reviewed by USEPA Office of Water QualityAccomplishments

  25. Antidegradation Federal requirement that allows for discharge of pollutants to water under specific circumstances. Indiana law defines how we will make those allowances and the rulemaking addresses implementation of the law. Office of Water QualityRulemaking

  26. Antidegradation (cont.) The current antidegradation rule only applies to the Great Lakes basin. The proposed Draft Rule expands the antidegradation procedures to apply to all waters across the entire state; and: Increases public opportunities for information and input; Protects current "fishable/swimmable“ and other existing uses of waters; Allows for the issuance of legal permits for discharges to water; and, Does not allow the violation of water quality standards. Office of Water QualityRulemaking

  27. Antidegradation (cont.) Legislative changes mandated by House Enrolled Act 1162 have been incorporated into the rule. Stakeholder Workgroup meetings held. Four public meetings around the state. Draft rule to be ‘public noticed’ for 45 days in the Indiana Register. After public notice, IDEM summarizes comments, may make changes to the rule Draft Rule will be presented to the Water Pollution Control Board for preliminary/final adoption. EPA will review the rule as well. Office of Water QualityRulemaking

  28. Questions?

  29. VX Destruction completed August 2008. Decontamination and demolition with final report October 2009. Auto Salvage Initiative – baseline, education, Clean Yard Award Incentive Program, reassessment of compliance. Office of Land QualityAccomplishments

  30. Institutional Controls Registry Identifies sites subject to land use restrictions Ground water Ordinance Environmental Restrictive Covenant (≈400) www.in.gov/idem/5959.htm Link to satellite photo and Virtual File Cabinet Assigned staff position to develop compliance strategy Office of Land Quality Accomplishments

  31. Eliminated renewal backlog. Last quarter 316 decisions issued in 54% of the time allowed. One third of those were septage renewals. Office of Land Quality Permits

  32. UST Operator Training Digester Rule Remediation Rule CFO/CAFO Rule(s) Office of Land Quality Rulemaking in Development

  33. Full report is included in agency reports packet distributed this morning. Total number of inspections decreased due to fewer new farms being permitted. Increased routine inspections by ≈10%. Violations decreased by ≈22% Confined Feeding Report

  34. Spill results are similar to FY 2008 3,199 total spills reported to IDEM from July 1, 2008 to June 30, 2009 66 Total Animal Waste Spills; 10 from regulated farms 8 CAFOs 2 CFOs 56 spills from unregulated farms Confined Feeding Report

  35. IDEM 2009 Legislative Changes SEA 221 – Good Character and Public Notification Requirements for Confined Feeding Operations (CFO/CAFO) HEA 1589 – Electronic Waste (OPPTA Implementation) Manufacturers responsible for assuring collection and recycling of sixty percent (by weight) of electronics they sell to Indiana households, starting January 1, 2010. IDEM working with Indiana Recycling Coalition and Chamber of Commerce and industry to maximize effectiveness and minimize burden.

  36. HEA 1162 Revised Remediation Approach Allows facilities to propose a remediation remedy based on managing risk and preventing exposure in lieu of, or in addition to, reducing contamination to closure levels. Nature and Extent can be determined based on current and expected land use. Gives effect to Environmental Restrictive Covenants and Ordinances as a method to eliminate exposure. IDEM 2009 Legislative Changes

  37. HEA 1162 Environmental Restrictive Ordinance Local ordinance that limits, regulates or prohibits, withdrawal, human consumption or any other use of ground water. Requires local governments to notify IDEM if they are amending or revising an environmental ordinance. IDEM 2009 Legislative Changes

  38. HEA 1162 Environmental Restrictive Covenants IDEM limited to approving only land use restrictions. Required to provide IDEM access to the land. Requires notice to transferees that ERC exists. Specifies location of IDEM files relevant to the property restrictions. IDEM 2009 Legislative Changes

  39. HEA 1162 Covenants and Certificates Allows placement of conditions that must be met in order to maintain a valid Covenant Not to Sue or a Certificate of Completion issued under the Voluntary Remediation Program. Previously remediation had to be completed before issuance, now conditional covenants and certificates may be issued. IDEM 2009 Legislative Changes

  40. Implementation Revision to RISC Technical Guidance Interim procedures development Staff training External work groups assisting with Guidance revision IDEM 2009 Legislative Changes

  41. Questions?

  42. IDEM Petroleum ProgramsIssues and Suggestions for Further Study

  43. Revisions for Consideration Underground Petroleum Storage Tank Excess Liability Trust Fund (ELTF) Deductible Definition of Owner Revised cap on annual claim amounts Clarify cost recovery by IDEM Use of ELTF to address non-ELFT eligible releases

  44. ELTF DeductibleIC 13-23-8-3 Did not upgrade tanks before 12/22/98 $35,000 Deductible Did upgrade tanks before 12/22/98 $25,000 Deductible (Change back to $30,000) Upgraded tanks and has double walled piping $25,000 Deductible Upgraded tanks and has double walled tanks $25,000 Deductible Upgraded tanks and has double walled tanks & piping $20,000 Deductible

  45. Definition of Owner Need clarification that the owner of the property that contains, or contained, a tank is considered the owner of the tank and any contamination resulting from the tank.

  46. Cap on Annual Claim Amounts ELTF statute establishes an annual cap of $3 million for reimbursed cleanup claims per owner. One large distributor has accumulated over $16 million worth of claims since 2004 In FY 2009 they submitted $6.3 million worth of claims. They have averaged $5 million per year.

  47. Cap on Annual Claim Amounts Having unsatisfied liability makes ELTF appear to have a higher balance than it does. Some options include an increased cap or agency flexibility to pay off the liability over time while maintaining some minimum balance.

  48. Cost Recovery Leaking underground storage tanks that are abandoned and not covered by ELTF are also regulated by IDEM. Both Federal and State funds used to address these sites. EPA expects states to do cost recovery to keep cleanup funds viable. Recent challenges to IDEM authority to do cost recovery have identified the need to clarify that authority.

  49. Expanded Use of ELTF ELTF provides federally required financial assurance for tank owners Tank fees paid by owners $750,000/year Inspection fees at $0.01/gallon ≈ $50 M/year Claims averaging $35 M/year Average site cleanup cost ≈ $200,000 Estimate 200 to 250 abandoned tank sites

  50. Expanded Use of ELTF Currently Petroleum Trust Fund is only source to address abandoned sites. Receives ≈$750,000 per year tank fees Expends ≈$700,000 per year on staff salary and contractor review for low and medium priority sites

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