IDEM Update & Air Quality OverviewNIRPC EMPC

January 4, 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

How Does IDEM Protect the Environment?

Measure the air, water and land to determine the existing state of the environmentCompare 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

How Does IDEM Protect the Environment?

Develop regulations and issue permits to restrict discharges to the environment to safe levelsInspect and monitor permitted facilities to ensure compliance with the permitsEnforce against people who exceed their permit levels or violate regulationsEducate people on their environmental responsibilities

IDEM Makes Environmental Decisions, Not Land Use Decisions

When an entity applies for an IDEM permit, the decision to approve or deny the permit is based upon the question: “Does this project meet the requirements designed to protect the environment?”

This is different than deciding: Is this the best use of this land? or Is this the best location for this project?

In Indiana, these are local land use decisions, not State decisions

Types of Facilities IDEM RegulatesLivestock farms (CFO & CAFO)

Manufacturing facilities

Solid waste management facilities including landfills and transfer stations

Sewage treatment plants

Dredging projects including disposal sites

Clean-up of contaminated property

Many projects are exempted from IDEM review due to size, etc.

IDEM’s Decisions Often Impact Land Use Decisions

IDEM regulates both public water supplies and sewer districts—the provision of public water and sewer service influences the future potential use of certain land

IDEM regulates the preservation and mitigation of wetlands which have land use impacts

IDEM permits major facilities that may impact future land use decisions—e.g. Honda

IDEM’s Decisions Often Impact Land Use Decisions

IDEM will permit “Locally Undesirable Land Uses” if they meet the regulations required to protect the environment

IDEM requires certain solid waste management facilities to have proper local land use approval prior to permitting

Removing obstacles to new development (like air non-attainment designations) impacts local development

IDEM’s Decisions Often Impact Land Use Decisions

IDEM’s permits require that the applicant also comply with all local requirements, including land use restrictions—applicants sometimes use IDEM’s permit to apply leverage in obtaining local approval

IDEM does not consider:Compatibility with adjacent land usesPotential impacts on property valuesEsthetic issues

Local Land Use Decisions Impact IDEM’s Responsibilities

Land use patterns impact:Transportation related air emissions from

CommutingCommercial activities

Quantity and quality of water runoff from impervious and developed areas

Generation of waste that must be properly managed

Public acceptance of or opposition to new commercial facilities

Local Land Use Decisions Impact IDEM’s Responsibilities

IDEM’s programs to address previously contaminated properties impact future development of the site:Voluntary Remediation Program—covenant

not to sueComfort LettersRCRA Corrective ActionSuperfund (CERCLA)State clean-up program

Performance MetricsQuality of Hoosiers' Environment Result Target Comments

% of Hoosiers that live in counties that meet air quality standards81% 100% 80%

4 counties @ 1,178,770 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

October 1, 2006 Clark--PM Dubois--PM Marion--PM Vanderburgh--PM

Ozone Attainment Status

PM2.5 Attainment Status

PM 2.5 StatusNew 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

D a i l y D e s i g n V a l u eP r o p o s e d N A A Q S V a l u e = 3 5 u g / m 3

3 0 3 3 3 6 3 9 4 2 4 5

A l l e n B e a c o n S t

C l a r k S p r i n g S t

J e ff e r s o n v i l l e

J a s p e r

N e w A l b a n y

K o k o m o

E a s t C h i c a g o

G a r y B u r r S t .

L a k e 6 5 0 M a d i s o n S t

L a k e F e d e r a l B l d g

H a m m o n d R o b e r t s d a l e

L a P o r t e

M a n n R o a d

M a r i o n E n g l i s h A v e

M a r i o n 7 2 5 0 E . 7 5 t h S t

M a r i o n E . M i c h i g a n S t .

O g d e n D u n e s

S t . J o e s e p h A n g e l a & E d d y

S p e n c e r D a l e

T i p p e c a n o e 3 4 0 1 G r e e n b u s h S t

V a n d e b u r g h C i v i c C e n t e r

U n i v o f E v a n s v i l l e

V i g o D e v a n e y S c h o o l

Sit

e

D e s ig n V a lu e

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

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)—Will be accepting applications in September

Major Regulatory InitiativesOutdoor Wood Fueled Boilers—EQSC Report recommended waiting to proceed until EPA issues its model rule—now late January

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

Advantages of Outdoor Wood Fueled Boilers

Reducing or eliminating heating billsImproving indoor air qualityReducing the incidence of asthma or allergiesBenefiting the environment by reducing the greenhouse emissionsIncreasing safety of heating by removing the heating unit from the buildingRequiring less time to operate than other wood burning devicesReducing dependence on fossil fuels

E s t im a t e d O u t d o o r W o o d B o i le r s b y S t a t e 2 0 0 5

0

5 0 0 0

10 0 0 0

15 0 0 0

2 0 0 0 0

2 5 0 0 0

3 0 0 0 0

3 5 0 0 0

S t a t e

Un

its

Environmental Concerns With Outdoor Wood Fueled Boilers

High air pollution emissions per unit of fuel due to incomplete combustion because of:Starved air operation to extend the time before

refueling (not enough oxygen)Cool temperatures due to water wall design and

need to avoid dangerous high temperature steamHigher exposure of people to concentrated emissions (smoke) due to low stack heightsEmissions all year for water, hot tub and pool heating, rather than just the heating season

E s t im a t e d P M E m is s io n s ( g r a m s p e r h o u r )

0

5 0

10 0

15 0

2 0 0

2 5 0

3 0 0

Why is IDEM Concerned About Incomplete Combustion?

The goal of complete combustion is to convert every constituent to its oxidized state—typically to carbon dioxide and water

Incomplete combustion generates:Carbon Monoxide—colorless, odorless, often

deadlyComplex organics that are often carcinogens

including benzene, dioxins, furans

Why is IDEM Concerned About OWB Particulate Matter Emissions?

PM2.5 monitoring indicates that Marion, Dubois, Clark and Vanderburgh Counties exceed the current annual PM2.5 Air Quality Standard.

PM2.5 monitoring indicates that these counties plus Allen, Lake, Tippecanoe and Vigo Counties currently exceed the new 24-hour PM2.5 Air Quality Standard.Modeling and measurements indicate that people living within a few hundred feet of an OWB are exposed to air above the new 24-hour PM2.5 Air Quality Standard.

Regulation of Outdoor Wood Fueled BoilersOutdoor wood fueled Boilers are not currently regulated by U.S. EPA: On August 11, 2005 seven states (Connecticut, Maryland,

Massachusetts, Michigan, New Jersey, New York and Vermont) petitioned EPA to regulate OWBs

EPA plans to release a “model state rule” and a “voluntary labeling program” for OWBs in January 2007

The “voluntary labeling program” is expected to be implemented in April 2007 and will give EPA recognition to OWBs meeting 0.6 lbs/mmbtu—this is about a 50% reduction

The “model state rule” would require units to meet 0.44 lbs/mmbtu by 2008 and some lower value in 2010

The “model state rule” may also address stack height and distance to neighboring residences

Regulation of Outdoor Wood Fueled Boilers

Local ordinances have been adopted in some areas of Indiana to ban new units: Batesville Evansville Indianapolis (Marion County) Loogootee Petersburg

Many other local governments are considering banning new units

Regulation of Outdoor Wood Fueled Boilers

Some States have adopted their own regulations focusing on stack heights and distances to the nearest neighbor

These States report that these regulations have not satisfactorily addressed the air quality issues from these units in their States

Status of IDEM’s Outdoor Wood Fueled Boiler Rulemaking

First Notice of Rulemaking Published in the Indiana Register December 15, 2005Comment period closed March 3, 20061,600 Comments with 3,300 signatures opposing

Wood Smoke is no more harmful than other emissionsRegulating OWBs will result in regulation of other forms of

wood burningThe new rulemaking is for the benefit of gas companiesRegulation of wood burning will cause economic hardship

for people unable to afford other heat

Rulemaking process was suspended until IDEM made a presentation to the EQSC

Some Options for ConsiderationRules or Regulations: Define and limit smoke opacity. Define minimum stack height. Define performance specifications. Define and require dried wood fuel. Restrict use up to a certain distance from a neighbor’s house. Phase out the use of wood furnaces. Ban sale of outdoor wood furnaces completely. Consider a “grandfather clause” for existing units Wait for possible federal regulation

Outreach:• Create an education/outreach campaign to promote regulation at

the local level.

Recommendation to EQSCIDEM proceed with regulations focused on keeping the problem from getting worseFocus on ensuring that any new units are “clean”

and adequately spaced from neighbors

IDEM explore options to deal with problems caused by some existing OWBsThese options would not require the forced

removal of existing units without compensationThe options may require clean dry wood and

adequate stack heights

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

Possible Issues for 2007 Legislation

Possible 2007 Legislative IssuesBudgetFederal 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

Environmental Crimes Task Force

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

Possible 2007 Legislative IssuesStreamlined Rulemaking when adopting Federal Requirements (including deadlines) without change

Ask the 2007 EQSC to study Environmental Rulemaking Process

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

Questions?

Tom Easterly

100 N. Senate Ave. IGCN 1301

Indianapolis, IN 46204

(317) 232-8611

Fax (317) 233-6647

teasterly@idem.in.gov