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IDEM Update Indiana Steel Environmental Group July 9, 2014

IDEM Update Indiana Steel Environmental Group July 9, 2014. Thomas W. Easterly, P.E., BCEE Commissioner IN Department of Environmental Management. IDEM’s Mission. Protecting Hoosiers and Our Environment While Becoming the Most Customer-Friendly Environmental Agency

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IDEM Update Indiana Steel Environmental Group July 9, 2014

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  1. IDEM UpdateIndiana Steel Environmental GroupJuly 9, 2014 Thomas W. Easterly, P.E., BCEE Commissioner IN Department of Environmental Management

  2. IDEM’s Mission Protecting Hoosiers and Our Environment While Becoming the Most Customer-Friendly Environmental Agency IDEM’s mission is to implement federal and state regulations to protect human health and the environment while allowing the environmentally sound operations of industrial, agricultural, commercial and government activities vital to a prosperous economy.

  3. How Does IDEM Protect Hoosiers and Our Environment? • Develop regulations and issue permits to restrict discharges to environmentally safe levels. • Inspect and monitor permitted facilities to ensure compliance with the permits.

  4. How Does IDEM Protect Hoosiers and Our Environment? • Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. • Educate people on their environmental responsibilities. • Clean up contaminated sites to eliminate public exposure to toxics and return properties to productive use.

  5. Performance Metrics March 2014

  6. Performance Metrics June 2005

  7. Permits--Percent of Statutory Days

  8. Best in NPDES Permitting

  9. Water Quality Indiana Combined Sewer Overflow Status

  10. IDEM Water Initiatives Developed guidance on 316(a) thermal variances and have met with stakeholders who have provided feedback. We will work with people to implement this guidance. Implementing electronic reporting for DMRs (NetDMR). Developing administratively issued general permits.

  11. NPDES General Permit Update • Five permits have been drafted and reviewed by U.S. EPA. • Hydrostatic Testing Water • Sand and Gravel • Noncontact Cooling Water • Petroleum Products Terminals • Ground Water Petroleum Remediation Systems • IDEM is scheduling meetings with stakeholders to discuss template and permits.

  12. Waters of the United States • On April 21, 2014, U.S. EPA published a proposed definition of “Waters of the United States” impacting 11 separate rules. • In discussions with the States, U.S. EPA states that while section (1) is very expansive, the key to the rule is the exemptions in section (2) of the rule(s).

  13. Waters of the United States • Definition includes: • Waters which are currently used, were used in the past, or may be susceptible to use in interstate or foreign commerce, including all waters which are subject to the ebb and flow of the tide. • All interstate waters, including interstate wetlands. • The territorial seas.

  14. Waters of the United States • Definition includes: • All impoundments of those waters. • All tributaries of those waters. A tributary is physically characterized by the presence of a bed, banks and ordinary high water mark. • All waters, including wetlands, adjacent to those waters. • On a case—specific basis, other waters which have a “significant nexus” to those waters.

  15. Waters of the United States • Exemptions: • Waste treatment systems designed to meet the requirements of the Clean Water Act. • Prior converted cropland. • Ditches that are excavated wholly in uplands, drain only uplands, and have less than perennial flow. • Ditches that do not contribute flow to section (1) waters.

  16. Waters of the United States • Exemptions: • Artificially irrigated areas. . . . • Artificial lakes or ponds created by excavating and/or diking dry land and used exclusively for such purposes as stock watering, irrigation, settling basins, or rice growing. • Artificial reflecting pools or swimming pools created by excavating and/or diking dry land.

  17. Waters of the United States • Exemptions: • Small ornamental waters created by excavating and/or diking dry land for primarily aesthetic reasons. • Water-filled depressions created incidental to construction activities. • Groundwater, including groundwater drained through subsurface drainage systems. • Gullies and rills and non-wetland swales.

  18. Waters of the United States • The comment period has been extended to October 20, 2014. U.S. EPA has asked States to help clarify the language to meet their stated intent of simply clarifying, not expanding, the definition of Waters of the U.S. • IDEM is very interested in concerns expressed about this proposal and wants to make sure any final regulation is acceptable.

  19. Current Air Quality Status • At the end of 2009, all of Indiana met every currently effective NAAQS for the first time since NAAQS were established in the 1970’s. • IDEM was successful in working with U.S. EPA to have all of the state designated as attainment for those pollutants except: • Clark and Floyd Counties PM2.5

  20. New Air Quality Standards • Since the end of 2009, new air quality standards have resulted in U.S. EPA designating the following new nonattainment areas: • Lake and Porter Counties Ozone (2008 standard) • Lawrenceburg Township (Dearborn County) Ozone • City of Muncie Lead

  21. 2011-20138-Hour Ozone Design ValuesCompared to the standard at 0.075 ppm

  22. Michigan City Ozone

  23. Plummer (Greene County) Ozone

  24. Charlestown State Park Ozone

  25. New Albany Ozone

  26. New Air Quality Standards • All monitors in Indiana currently meet the 100 ppb short term NO2 standard established in 2010. • On July 25, 2013, U.S. EPA designated nine townships in five counties as nonattainment for the 1-hour, 75 ppb SO2 standard established in 2010.

  27. New PM2.5 Standard • The new annual standard is 12 micrograms per cubic meter which is a 20% reduction from the previous 15 micrograms per cubic meter standard. • Standard became effective March 18, 2013. • New nonattainment designations likely in early 2015.

  28. Preliminary PM2.5 Annual Design Values (3-yr Average) Based on 2011-2013* Monitoring Data Standard at 12 µg/m3 *Data Certified Through November 2013

  29. President’s Climate Directives • U.S. EPA to issue proposed carbon pollution restrictions for: • New power plants by September 20, 2013 111(b). • Existing power plants by June 1, 2014, and finalize those restrictions by June 1, 2015 111(d). • States will be required to submit implementation plans under Section 111(d) of the Clean Air Act by June 30, 2016.

  30. New Source Proposal—111(b) • In September, 2013, U.S. EPA proposed New Source Performance Standards (NSPS) for Greenhouse Gas (GHG) Emissions for certain Electric Utility Generating Units (EGUs)—111(b). • - Combined cycle gas turbines will meet the rule. • - Coal fired units will not meet the rule without using carbon capture and storage.

  31. New Source Proposal—111(b) • Carbon capture and storage (CCS): • is not yet commercially available, • has not yet been demonstrated at commercial scale, and • is likely to be prohibitively expensive. • Due to the energy used for CCS, the total greenhouse gas emissions per unit of useful energy produced from a coal fired plant using this technology and meeting the lower emission limits will likely be no lower than emissions from a modern plant without CCS.

  32. Existing Source Proposal—111(d) • In accordance with the President’s directive, on June 2, 2014, (June 1 was a Sunday) U.S. EPA Administrator McCarthy signed a proposed rule to reduce emissions from existing fossil fueled Electrical Generating Units (EGUs) starting in 2020. • The proposed rule was actually published on June 18, 2014, at 79 FR 34829-34958. Comments are due by October 16, 2014.

  33. Existing Source Proposal—111(d) Each State has an individual carbon intensity goal developed from four “Building Blocks” Increase the thermal efficiency at coal fueled EGUs by 6%. Increase utilization of natural gas combined cycle plants to 70%. Increase zero carbon renewable generation. Increase energy efficiency (load reduction). Choice of rate based or mass based regulations.

  34. Existing Source Proposal—111(d) The proposed goal for Indiana is to reduce our net emissions from the 2012 level of 1,924 lb CO2/MWh to 1,607 lb CO2/MWh for the period 2020 to 2029 and 1,531 lb CO2/MWh after 2029. Goal is based upon: Increase coal EGU efficiency by 6%. Increase NGCC utilization from 53% to 70%. Increase renewable energy generation to 7%. Reduce energy demand by 3.2% by 2020 and 11.11% by 2030 through energy efficiency.

  35. Existing Source Proposal—111(d) • U.S. EPA estimates on a national level that: • Coal production will decrease 25 to 27%, and the price of coal will decrease by 16 to 18% by 2020. • Natural gas production will increase by 12 to 14% with a price increase of 9 to 12% by 2020. • Renewable generation capacity will increase by 12 GW, NGCC capacity will increase by 20 to 22 GW. • Coal generation capacity will decrease by 46-49 GW, and oil generation capacity by 16 GW.

  36. Existing Source Proposal—111(d) • Annual incremental compliance costs of $5.5 to $7.5 billion in 2020 and $7.3 to $8.8 billion in 2030. • Job increases of 25,900 to 28,000 in the electricity, coal and natural gas sectors by 2020. • Job increases of 78,000 for demand-side energy efficiency by 2020. • IDEM is currently evaluating both the feasibility and estimated cost of meeting U.S. EPA’s goals.

  37. Climate Impacts—111(d) Proposal This rule will have virtually no impact on modeled global climate change. It is projected to reduce: • Global CO2 concentrations by less than 1%. • Global average temperatures by less than 0.02o F • Sea level increases by 0.01 inch.

  38. State Goals as % Reduction from 2012 Source: Bloomberg New Energy Finance

  39. Percentage Change in CO2 Emissions from Utilities (2005 – 2012) Decreasing >15% Decreasing 0 – 15% Increasing No Data Location of the State Capitals State Boundaries

  40. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management (317) 232-8611 teasterly@idem.IN.gov

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