1 We Protect Hoosiers and Our Environment

Indiana Steel Environmental GroupJune 18, 2008

Thomas W. Easterly, P.E., BCEE, QEP Commissioner

IN Department of Environmental Management

2We Protect Hoosiers and Our Environment

“We Protect Hoosiers and Our Environment”

BP NPDES and Air Permit

Forbes Green Ranking

Both of these issues are discussed in the PowerPoint of my March 6, 2008 IDEM Update - Indiana Chamber of Commerce, Environmental Issues Conference

All of my speech PowerPoints are available at www.idem.in.gov

3We Protect Hoosiers and Our Environment

IDEM’s Mission and Environmental Goal

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. Our goal is to increase the personal income of all Hoosiers to the national average while maintaining and improving Indiana’s Environmental Quality.

4We Protect Hoosiers and Our Environment

Pilot 2006 & 2008 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/

5We Protect Hoosiers and Our Environment

6

Currently No Similar Chart for 2008

“Wealth correlates highly with EPI scores. But at every level of development, some countries achieve results that exceed their income-group peers. Statistical analysis suggests that good governance contributes to better environmental outcomes.”US drops from 28th to 39th—Climate Change

7We Protect Hoosiers and Our Environment

How Is IDEM Protecting Hoosiers and Our Environment?

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

8We Protect Hoosiers and Our Environment

Performance MetricsQuality of Hoosiers' Environment Result Target Comments

% of Hoosiers that live in counties that meet air quality standards 77% 100% 80% 3 counties @ 1,458,022 of

6,271,973 failed

% of CSO Communities with approved programs to prevent the release of untreated sewage

66% 100% 20% 65+9 (74) out of 98+9 (107)

Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute

Land 24,532 66,565 86,864 205 permits

431 permits

54 permits

Air 151,060 207,000 385,000

Water 29,464 48,000 200,000

* Places emphasis on back logged permits

Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards

Inspections 97.08% 97% 75%

Self reporting 93.81% 99% 95%

Continuous monitoring (COM) 99.70% 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 $2,700,000 $0 $3,447,017 $1,5 OLQ + $1.3 OAQ

9We Protect Hoosiers and Our Environment

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

65% 100% 20% 64+9 (73) out of 98+9 (108)

Permitting Efficiency Total calendar days accumulated in issuing environmental permits, as determined by state statute

Land 21,761 66,565 86,864 91 permits

538 permits

29 permits

Air 187,860 207,000 385,000

Water 27,426 48,000 200,000

* Places emphasis on back logged permits

Compliance Total percentage of compliance observations from regulated customers within acceptable compliance standards

Inspections 97.15% 97% 75%

Self reporting 95.68% 99% 95%

Continuous monitoring (COM) 99.65% 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 $2,800,000 $0 $3,447,017 $1,5 OLQ + $1.3 OAQ

10We Protect Hoosiers and Our Environment

Performance Metrics

11We Protect Hoosiers and Our Environment

Counties above AQ StandardsJanuary 10, 2005 Allen--Ozone Boone--Ozone Clark--PM & Ozone Dubois--PM Elkhart--Ozone Hamilton--Ozone Hancock--Ozone LaPorte--Ozone Madison--Ozone Marion--PM & Ozone Shelby--Ozone St. Joseph--Ozone

January 1, 2008 Clark--PM Marion—PM Lake—Ozone

(Whiting Monitor)

12We Protect Hoosiers and Our Environment

Permit Backlog ReductionIn 2005, there were 263 administratively extended NPDES permits

Six of those 263 remain to be issued:US Steel Gary WorksUS Steel Midwest DivisionArcelor Mittal Indiana Harbor EastArcelor Mittal Indiana Harbor WestArcelor Mittal Burns HarborHoosier Energy Merom Plant

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Total Permit Calendar Days

0

100000

200000

300000

400000

500000

600000

Air

Water

Land

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Permitting Rapid Improvement Activities

1. Significant Source Modification Lean Event.

- October 2007

2. Permit Renewal Process Lean Event.- December 2007

Teams consisted of internal and external stakeholders.

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Items Measured Current New % Change

# of Steps 164 144 12.2%

# of Handoffs 41 29 29.3%

# of Decisions 16 12 25%

# Loop backs 13 8 38.5%

# of Value-Added Steps

6 6 0

Lead Time195 – 255 days

120 – 166 days

38.5% - 34.9%

Delays 31 24 22.6%

Significant Source Modification Results

Status (avg) : 2/1/08 170 days / 4/1/08 154 days / 6/1/08 124 days

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Net Offset Days for Air Permit Metrics

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Jan-08 Feb-08 Mar-08 Apr-08 May-08

Month

Ca

len

da

r / C

lock

Da

ys

Net Offset Days

Net Offset Days 0 12334 14641 17735

1/1/2008 3/31/2008 4/30/2008 5/30/2008

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Backlogged Air Permit Renewal Reduction: Goal for 2008

0

20

40

60

80

100

120

1/1/2008 2/1/2008 3/1/2008 4/1/2008 5/1/2008 6/1/2008

Month

Per

cen

t P

end

ing

(10

0% =

156

)

Pct Pending

Goal (0%)

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PERMIT METRICS: SUMMARY-LEVEL DATA (ALL PERMITS)

0

50000

100000

150000

200000

250000

300000

350000

Month

Num

ber o

f Day

s In

Hou

se S

ince

App

licat

ion

Rec

eive

d

Actual

07 Goal

Actual 311986 297831 280698 270348 257472 234248 187860 179236 171100 151060 139270 134291

07 Goal 207000 207000 207000 207000 207000 207000 207000

7/1/07 8/1/07 9/1/07 10/1/07 11/1/07 12/1/07 1/1/08 2/1/08 3/1/08 4/1/08 5/1/08 6/1/08

19We Protect Hoosiers and Our

Environment

Enforcement 2003 to 1Q 20082003 2004 2005 2006 2007 2008

Referrals 607 467 547 591 606 100

Violation Letters 5,222 4,980 4,268 4,024 3,958 5

Notice of Violations 457 318 202 427 420 108

Agreed Orders 349 314 258 417 372 94

Commissioner Orders

15 6 41 38 39 4

Dismissals 121 44 48 46 57 8

Complies/ Closed 308 312 317 577 568 128

AG Referral 13 17 4 33 52 2

20We Protect Hoosiers and Our Environment

New 2008 Laws

HEA 1001 Property Tax Reform was the Major Issue in the 2008 Legislative Session

SEA 45—The Great Lakes Water Compact with implementing legislation

HEA 1120—Ban phosphates in residential dishwasher detergent sold after July 1, 2010

21We Protect Hoosiers and Our Environment

New 2008 Laws• SEA 43 addresses many environmental issues

Clarifies mercury switch removal program requirements to:

Allow payment for removal of mercury containing anti-lock braking switches and other mercury containing devices

Exempt wrecked vehicles where the mercury switch is not easily accessible

Allows IDEM to accept electronic signaturesClarifies Requirements for Local Land Use

Approvals for Solid Waste Landfills that have not yet accepted Waste

22We Protect Hoosiers and Our Environment

New 2008 Laws• SEA 43 Continued

Removes the requirement that IDEM have a laboratory division

Removes the requirement to display operator certificates at a treatment plant

Allows a single vehicle ID and land application permit approval for a septage hauler

Eliminates the requirement that IDEM obtain social security numbers as part of good character approval process

Allows IDEM to use ELTF for tank inspections

23We Protect Hoosiers and Our Environment

New 2008 LawsSEA 43 Continued

Requires public notice of rules that are proposed to sunset

Protects a community from being required to pay storm water fees to two entities

Clarifies Environmental Criminal Language

SEA 46 modified the marketable record title for real property to eliminate the need to renew a environmental restrictive covenant every 50 years

24We Protect Hoosiers and Our Environment

Other Significant Initiatives

Virtual File Cabinet—electronic filing system

TEMPO—Enterprise wide electronic integration of all IDEM information—part of the process to allow us to receive and process electronic permit applications and reports.

Obtain EPA approval for electronic submittals

25We Protect Hoosiers and Our Environment

Questions & Discussion