IDEM Update Indiana Industrial Operators Association April 18, 2007 Thomas W. Easterly, P.E., DEE, QEP Commissioner IN Department of Environmental Management
Dec 25, 2015
IDEM UpdateIndiana Industrial Operators
AssociationApril 18, 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 standards 85% 100% 80% 2 counties @ 964,725 of
6,271,973 failed
% of CSO Communities with approved programs to prevent the release of untreated sewage
48% 100% 20% 75% by 2007 is goal
Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute
Land 81,726 66,565 86,864 208 permits
699 permits
82 permits
Air 321,262 207,000 385,000
Water 85,443 48,000 200,000
* Places emphasis on back logged permits
Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards
Inspections 96.84% 97% 75%
Self reporting 94.99% 99% 95%
Continuous monitoring (COM) 99.61% 99.90% 98.95%* Tracks observations and not just inspections
Organizational Transformation Budgetary agency dollars spent on key outside contracts for core agency functions.
Dollars spent on outside services per year $3,100,00 $0 $3,447,017Will 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
Communities with Approved CSO Long Term Control Plans
Akron
Albion
Angola
Aurora
Avilla
Berne
Bluffton
Boonville
Brazil
Bremen
Brownsburg
Butler
Centerville
Chesterfield
Columbia City
Columbus
Communities with Approved CSO Long Term Control Plans
Crawfordsville
Crown Point
Decatur
Frankfort
Goshen
Greenfield
Indianapolis
Kendallville
Knox
LaGrange
LaPorte
Lowell
Madison
Markle
Michigan City
Milford
Communities with Approved CSO Long Term Control Plans
New HavenNorth VernonOssianPlainfieldPlymouthRockportRemingtonSeymourSouth Whitley
SullivanValparaisoVeedersburgWakarusaWarrenWarsawWaterlooWinamac
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
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 Enforcement2002-2007
2002 2003 2004 2005 2006 2007*
Referrals 887 607 467 547 591 134
Violation Letters 17 33 47 203 231 47
Notice of Violations
561 457 318 202 427 66
Agreed Orders 311 349 314 258 417 62
Commissioner's Orders
15 15 6 41 38 7
Dismissals 125 121 44 48 46 5
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—APCB May 2, 2007
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
IDEM Budget Comparisons (w/o ELTF)
2005-2007 $240,798,257
2007-2009 $206,249,350
Federal: $57,530,097(27.9%) Red
General: $61,750,166
(29.9%) Lt. Aqua
Dedicated: $86,969,087
(42.2%) Green
Dedicated: $91,318,803
(37.9%) Green
Federal: $84,618,622
(35.1%) Red
General: $64,860,832
(29.9%) Lt. Aqua
IDEM Fees (Thousands)FY 07-09 Air Water Land Total
Income $19,815 $22,100 $27,500 $69,415
Expense $25,008 $27,296 $37,571 $89,875
Spend Down
-$5,193 -$5,196 -$10,071 -$20,460
Annual -$2,596 -$2,598 -$5,036 -$10,230
Proposed Increase
$2,500 $2,461 $4,094 $9,056
Efficiency $96 $137 $942 $1,174
Fee Proposals
CAFO/CFO – 25 staff (17 FTEs)
Fee Revenue: $42,000
Expenses: $1.2M
Proposed Fee Revenue: $2.8
Annual Number of permits issued: 121
Annual Number of Permit renewals: 435
Number of Compliance Inspections: 1100 (Proposed)
Fee Proposals
NPDES – 79 staff
Fee Revenue: $3.8M
Expenses: $6.2M
Proposed Fee Revenue: $4.75M
Annual Number of permits issued: 340
Proposed increase is 25%
Fee Proposals
Drinking Water/Wastewater Operator Certification – 6 current staff
Fee Revenue: $146,000
Current Expenses: $471,000
Proposed Fee Revenue: $526,000 (would add 3 staff)
Annual Number Certifications/tests issued: 4469
Wastewater Operator Biennial Renewal Fees
Classification Current New IncreaseAnnual
Increase
Class I-SP $30 $60 $30 $15
Class I $30 $60 $30 $15
Class A-SO $30 $60 $30 $15
Class A $30 $60 $30 $15
Class II $30 $80 $50 $25
Class B $30 $80 $50 $25
Class III $30 $100 $70 $35
Class C $30 $100 $70 $35
Class IV $30 $120 $90 $45
Class D $30 $120 $90 $45
Water System Operator Triennial Renewal FeesAll $30 $150 $120 $40
Fee Proposals
Wetland/Water Quality Certification – 7 staff
Fee Revenue: $0 (60% federal funds/40% state funds)
Expenses: $538,000
Proposed Fee Revenue: $96,900Proposed General Permit Fee $100Proposed Individual Permit Fee $200
Annual Number of permits issued: 760
Fee Proposals
Storm-water Fees – 8 current Staff
Fee Revenue: $365,000
Expenses: $698,000
Proposed Fee Revenue: $1.4M (add field staff for inspections)
Annual Number of permits issued: 4,050
Rules 5, 6 and 13 have been funded through fees and enforcement fines
Current Proposed Increase
Rule 5 $100 $400 $300 per NOI
Rule 6 $100 $150 $50 Annually
MS 4 by Population
1-999 $0 $250 $250 per NOI
1,000-2,999 $0 $500 $500 per NOI
3,000-4,999 $0 $750 $750 per NOI
5,000-6,999 $0 $1,000 $1,000 per NOI
7,000-9,999 $0 $1,500 $1,500 per NOI
10,000 and up $0 $2,000 $2,000 per NOI
MS 4 by Type
Non-municipal $0 $500 per NOI
County System $0 $2,000 per NOI
Note: 25% reduction if MS4 is co-permitted
Fee ProposalsHazardous Waste – 96 staffFee Revenue: $1.3MExpenses: $8MProposed Fee Revenue: $4.1MPermit Review, renewal, modifications and Corrective action plan reviews: 375Federal funding (currently) 33%State funding (currently) 31%Fee funding (currently) 36%
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 (Recycling)
SB154
Questions Submitted in AdvanceQ. Where are we with the wastewater operator
rule?
A. Work group completed its work in August 2006, Second Notice scheduled for May, 2007. Fees in SB 432.
Q. What are we seeing in terms of alternative fuel in IN. Are we actually going to have convenient gas stations where you can buy bio fuel?
A. There are now 82 E-85 and 8 B-20 public pumps list is at: www.in.gov/isda/biofuels
Questions Submitted in Advance
Q. What is IDEM doing in terms of economic development to help attract or keep industry?
A. Clear, Consistent and Speedy decisions.
Q. Why are we getting Copper numbers on industrial permits that are lower than background?
A. Aquatic toxicity.
Questions Submitted in AdvanceQ. We have heard that several departments
have been downsized and wonder if that will impact our permit?
R. IDEM total staff is up 6 full time and 11 part time people since 12/31/2004. Permitting staffs have been increased and permit backlogs are going down. Still need staff in industrial pretreatment, operator certification, and storm water programs.
Questions Submitted in AdvanceQ. When will the continuing education
coordinator be replaced?
R. The current person is Tonja Fuller-White.
Q. Where are we on the CSO Issue?
R. Answered in presentation.
Questions Submitted in AdvanceQ. Where are we with the future of electronic
reporting?
A.1. Let $5.9 million contract with CGI for overall
system. Going program by program, three years to completion.
2. First State approved by EPA for CROMEER.
3. Digital Inspector
4. Virtual File Cabinet—some programs are on IDEM’s website now.
Questions?
Tom Easterly
100 N. Senate Ave. IGCN 1301
Indianapolis, IN 46204
(317) 232-8611
Fax (317) 233-6647