IDEM Update

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IDEM Update Air Quality OverviewNIRPC
EMPCJanuary 4, 2007

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

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New State Laws impacting IDEM from the 2006
Legislative Session

• HB1110Removal of Mercury Convenience Switches
  from End of Life Motor Vehicles.
• SB 234Improving the rulemaking process for wet
  weather discharges and authorizing the
  Environmental Stewardship Program.
• HB1117Simplifying the solid waste statutes and
  eliminating the groundwater task force.
• SB 146Removing the Property Transfer Disclosure
  Form from Statute.

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IDEMs 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 Indianas
  Environmental Quality.

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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/
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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

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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

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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

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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

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Types of Facilities IDEM Regulates

• Livestock 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.

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IDEMs Decisions Often Impact Land Use Decisions

• IDEM regulates both public water supplies and
  sewer districtsthe 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 decisionse.g. Honda

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IDEMs 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

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IDEMs Decisions Often Impact Land Use Decisions

• IDEMs permits require that the applicant also
  comply with all local requirements, including
  land use restrictionsapplicants sometimes use
  IDEMs permit to apply leverage in obtaining
  local approval
• IDEM does not consider
• Compatibility with adjacent land uses
• Potential impacts on property values
• Esthetic issues

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Local Land Use Decisions Impact IDEMs
Responsibilities

• Land use patterns impact
• Transportation related air emissions from
• Commuting
• Commercial 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

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Local Land Use Decisions Impact IDEMs
Responsibilities

• IDEMs programs to address previously
  contaminated properties impact future development
  of the site
• Voluntary Remediation Programcovenant not to sue
• Comfort Letters
• RCRA Corrective Action
• Superfund (CERCLA)
• State clean-up program

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Performance Metrics
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Counties above AQ Standards

• January 10, 2005
• Allen--Ozone
• Boone--Ozone
• ClarkPM Ozone
• Dubois--PM
• Elkhart--Ozone
• Hamilton--Ozone
• Hancock--Ozone
• Madison--Ozone
• MarionPM Ozone
• Shelby--Ozone
• St. Joseph--Ozone

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

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Ozone Attainment Status
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PM2.5 Attainment Status
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PM 2.5 Status

• New 24 hour standard issued in SeptemberAnnual
  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,
  2008we may try redesignations

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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

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Total Permit Calendar Days
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Air Permits for New Facilities

• New Toyota Production at Lafayette Subaru
  Facility
• Louis Dreyfus Soy Biodiesel PlantLargest in the
  US
• A dozen new Ethanol Production Facilities with
  ten pending
• Honda Greensburg NSR permit issued in 94 days

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Percent of Activities Meeting Regulations
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Office of Enforcement2002-2006
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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

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Major Regulatory Initiatives

• Outdoor Wood Fueled BoilersEQSC Report
  recommended waiting to proceed until EPA issues
  its model rulenow 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 reductionSecond Notice

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Advantages of Outdoor Wood Fueled Boilers

• Reducing or eliminating heating bills
• Improving indoor air quality
• Reducing the incidence of asthma or allergies
• Benefiting the environment by reducing the
  greenhouse emissions
• Increasing safety of heating by removing the
  heating unit from the building
• Requiring less time to operate than other wood
  burning devices
• Reducing dependence on fossil fuels

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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 steam
• Higher exposure of people to concentrated
  emissions (smoke) due to low stack heights
• Emissions all year for water, hot tub and pool
  heating, rather than just the heating season

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Why is IDEM Concerned About Incomplete Combustion?

• The goal of complete combustion is to convert
  every constituent to its oxidized statetypically
  to carbon dioxide and water
• Incomplete combustion generates
• Carbon Monoxidecolorless, odorless, often deadly
• Complex organics that are often carcinogens
  including benzene, dioxins, furans

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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.

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Regulation of Outdoor Wood Fueled Boilers

• Outdoor 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/mmbtuthis 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

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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

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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

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Status of IDEMs Outdoor Wood Fueled Boiler
Rulemaking

• First Notice of Rulemaking Published in the
  Indiana Register December 15, 2005
• Comment period closed March 3, 2006
• 1,600 Comments with 3,300 signatures opposing
• Wood Smoke is no more harmful than other
  emissions
• Regulating OWBs will result in regulation of
  other forms of wood burning
• The new rulemaking is for the benefit of gas
  companies
• Regulation 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

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Some Options for Consideration

• Rules 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
  neighbors 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.

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Recommendation to EQSC

• IDEM proceed with regulations focused on keeping
  the problem from getting worse
• Focus on ensuring that any new units are clean
  and adequately spaced from neighbors
• IDEM explore options to deal with problems caused
  by some existing OWBs
• These options would not require the forced
  removal of existing units without compensation
• The options may require clean dry wood and
  adequate stack heights

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Major Regulatory Initiatives

• Rulemaking to establish presumptive 8-1-6 VOC
  BACT controls to streamline permitting
• Acid Scrubbers for foundry core making
  aminesWithdrawn at Request of INCMA
• Compliance with certain NESHAPs--Continuing
• Ethanol Plant BACTFinal 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 StatesFirst
  Notice Soon
• Adjustments to the Title V fees to fully fund the
  programAir Board Adoption 12/6/2006

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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.
• IDEMs June 30 fee balance is similar to a
  persons 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

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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.

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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.

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05-06 Available Cash by Month
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Possible Issues for 2007 Legislation
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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 costssome
  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

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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 Walorski
• Developing more specific environmental criminal
  statutes.
• Plan to develop legislation for consideration in
  the 2007 session.

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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

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Questions?

• Tom Easterly
• 100 N. Senate Ave. IGCN 1301
• Indianapolis, IN 46204
• [phone]
• Fax [phone]
• teasterly_at_idem.in.gov