Environment & Energy Issues 2005-2006 Presentation by: Vince Griffin, REHS, MPA Vice President, Energy and Environmental Policy Indiana Chamber of Commerce

Environment & Energy Issues

2005-2006

Presentation by: Vince Griffin, REHS, MPA

Vice President, Energy and Environmental Policy

Indiana Chamber of Commerce

• August 22, 1787 – Delaware River• John Fitch and the Constitutional

Convention• Forty-five foot steamboat

Legislation

2005 Session Key Points• UST $• Brownfields

Legislation

2005 Session continued…• Wetlands• Clean Water Indiana• CSO/NPDES variances

Legislation

2005 Session continued…• VX bill• Biodiesel• Ethanol• Coal gasification

Legislation

2006 Session Key Points• No More Stringent Than• Waste Tire Fee• Wetlands• Mercury switches in cars/recycling• Outdoor Wood Burning Furnaces (OWF)

“NMST”

Regulatory

How’s IDEM doing?• Carrot vs. Stick• Performance Track

Vs.

RegulatoryWater Issues• Annex 2001/ Great Lakes Water Use Plan

Past Actions Taken and Challenges Facing the Great Lakes Basin

• 1985 – Great Lakes Charter Uneven implementation by State

• 1986 – U.S. federal statute (WRDA) Diversions only, no standard• 1998 – Nova Group proposal

Past Actions Taken and Challenges Facing the Great Lakes Basin

• 1999 – Recurring lower lake levels• 2000 – WRDA amendment• 2000 – IJC report• 1992-2002 – Canadian federal and

provincial bans on diversions

The Historic Measure

• October 1999: Great Lakes Governors’ and Premiers’ commitment

• June 18, 2001: Governors and Premiers came together in Niagara Falls

• All 10 signed the Great Lakes Charter Annex 2001– To update the way Great Lakes Basin water will

be managed– To protect, conserve, restore and improve the

Great Lakes Basin for future generations

Draft Annex Implementation Documents

• Released on July 19, 2004 • Public review period• 30+ public meetings in the region• 10,000+ comments received• Substantial revisions have been

made based on comments

Regulatory

Water Issues continued…• Drought Plan• Indiana’s future water resources• Clean Water Indiana

Regulatory

Air Issues• Ozone-attainment/nonattainment• PM 2.5

Energy: Crisis or Comfort???

U.S. Energy Mix

Nuclear21%

Petroleum3% Renewables

1%

Hydro9%Gas

10%

Coal56%

U.S. Average Price 6.8¢

Indiana Energy Mix

Gas0.69%

Hydro0.42%

Petroleum0.73%

Coal98%

Indiana Price 5.5¢

Ohio Energy Mix

Gas0.35%

Hydro0.28%

Petroleum0.24%Nuclear

11%

Coal88%

Ohio Price 6.4¢

Kentucky Energy Mix

Gas0.58%

Hydro3%

Petroleum0.15%

Coal96%

Kentucky Price 4.2¢

Pennsylvania Energy Mix

Hydro1%

Petroleum2%

Nuclear35%

Coal62%

Pennsylvania Price 7.7¢

Michigan Energy Mix

Gas3%

Hydro0.41%

Petroleum1%

Nuclear15%

Coal81%

Michigan Price 7.2¢

Indiana Energy Facts

• Adequate, reliable, cost-effective supply of electricity –- Historically, an Indiana business draw- Need state policy promoting- Incentives

• Electricity is:- Hard to store- Produced as needed- Travels at 186,000 miles/second


• Customers want it instantly without restrictions – no busy signals allowed

• Indiana needs 17,000 MW of power at peak demand; can generate 20,000 MW

• Today’s reserve margin = 10% to 12% and dropping; was 30% in 1985


• Last Indiana base load power plant in early 1980’s; California was 1985

• Indiana annual load growth is 1-3%; California is 10%

• By 2016 will need an ADDITIONAL 7000MW; That is more than 1/3 of our current generating capacity in 15 years!


• It takes about 5 to 15 years to build a base load power plant

• U.S. Coal reserves = 300 years; Indiana Coal reserves = 500 years; Oil and Gas reserves worldwide = 50 to 90

years

• The use of coal to produce electricity has increased three fold since 1970 while the pollutants coming from that coal burning has decreased 35%.


• Over Next 20 Years:• U.S./Oil Consumption 33%• N.G. Consumption 50%• Elec. Consumption 45% = 1500

New Plants


• U.S. oil production 40% less than1970

• Since 1973 U.S. economy 126%

• Since 1973 U.S. energy use 30%


• Indiana is the #2 consumer of coal in the nation (Texas is #1)

• Indiana mines 35 million tons/year

• Indiana uses 50 million tons/year

Elements of Indiana’s Energy Supply

• Adequate

• Reliable

• Cost Effective

Supply and Demand

SUFG’s 1999 Competitive Model

Exogenous imports and exports assumed for MAPP, SPP, TVA, VP and PJM


Energy Leadership Elements• A diversified fuel mix including clean

coal technologies, natural gas, nuclear and renewable energy sources

• Investment in new energy technologies • such as the fuel cell • Assessment of our electric power

infrastructure, including transmission and distribution capabilities


Energy Leadership Elements• Sensible regulatory controls that

promote • the responsible building of new

electric • power stations• Energy efficiency and conservation

Waste Tires – Not Just a Burning Issue in Indiana!

Indiana produces 6,000,000 waste tires per year

If stacked end-to-end, that would surround the earth in less than 10 years!!

• 10 Million in known dump sites in Indiana

• It costs Indiana $1.42/tire in a dump clean up – and that is rising

• Atwood facility cost the state over $3 million to clean up

• 300 Million in US dump sites

• US EPA goal is to clean up 55% by 2008

Why a problem?

• Pests – mosquito breeding ground• West Nile virus (one death in Indiana this year)• Dengue fever• Encephalitis

• Fires• Difficult to extinguish• Toxic air emissions

– Polycyclic aromatic hydrocarbons, dioxin, benzene, PCDFs, styrene, butadiene and phenols

• Runoff from Site• Contaminated area difficult to clean up

How CAN waste tires be used?

• Tire derived from fuel (TDF) (US>40%)– More BTU’s than coal– Cleaner than most coal– Can be burned whole or chipped–

• Civil Engineering (14%)– Septic systems– Drainage systems– Road construction– Landfills– Replace clay, soil, aggregate

How CAN waste tires be used?

• Ground Rubber (12%)– Playgrounds– Athletic fields– Horse arenas– Mats– Tiles– Bricks– Agricultural and horticultural applications– Guard rails– Dock bumpers

What is happening in Indiana?

Virtually nothing in a beneficial way!!

• What can be done in Indiana?

• Create an incentive program.

• Increase the current 25 cents/tire fee to at least $1

• Legislation to establish the program

• Work with IDEM and the Department of Commerce

• Recycling and Energy Development Board

What IS being done?

• Lehigh Cement in Mitchell• 4 million kiln modification• Accept whole tires• Save natural resources• Supplemental fuel• Cleaner emissions• Help an Indiana industry

What can you do?Plenty!

• Identify the “tire problem” in your community

• Communicate with your legislators – NOW!!

• Tell them that there is a public and environmental health problem that is hurting their constituents and community

• Tell them that THEY can do something about it

• Tell them what to do –– Increase the waste tire fee to $1– Pass legislation creating an incentive program

Contacting Your State Legislator

Your Voice is Critical

http://www.in.gov/legislative/session/audio.html

There’s NO Replacing Your Own Personal Involvement

• Each legislative session, hundreds of proposals are introduced that can potentially impact how you operate your business.

• As an Indiana Chamber member, you have access to all our resources.

• By understanding the legislative process and holding your legislators accountable for their actions, you can affect the outcome.

Identify and Contact Your Legislators

• If you aren’t sure who your state representative and state senator are, visit the “grassroots” section of www.indianachamber.com

• Phone numbers: – House (317) 232-9600 or (800) 382-9842– Senate (317) 232-9400 or (800) 382-9467

Other Ways to Contact Your Legislators

MailLegislators NameIndiana House of Representatives or Indiana SenateStatehouse200 W. Washington St. Indianapolis, IN 46204

* When writing to your state legislators, the proper salutations are “Dear Senator_______” and “Dear Representative_______” respectively.


E-Mail• Visit the “grassroots” section of

www.indianachamber.com for legislators’ addresses.

• While e-mail can be a quick form of communication, be aware that the high volume of such messages and legislator preferences for other forms of communication may hinder effectiveness.


In Person• Most legislators participate in community forums,

often hosted by local chambers, to talk about pending and future legislation.

• Or, contact your legislator’s office to set up a personal visit.

* Ask about our legislative directories the IndianaChamber updates and sells annually!

Procedures to Follow

• If possible, refer to the bill number of the legislation in which you are interested.

• Be clear and concise in explaining how the proposed legislation affects your business and why you support or oppose.

• Request your legislator take a specific action by telling him or her what outcome you seek.

• Discuss only one issue per call/e-mail/letter and ask the legislator to specify his or her position on the issue.

Procedures to Follow

• If the legislator is unavailable, his or her staff will take a message relaying your opinion. If you would like the legislator to call back, leave your work and home phone numbers and the best times to reach you.

• For ALL communication, don’t assume the legislator knows you are from his/her district. Always include your mailing address and telephone number and state that you are a constituent or district resident.

Tips for Advocating Your Issues

1. Be informed. Do your own thinking and research. Above all, be accurate.

2. Get involved. Participate in public meetings. Go beyond merely identifying problems to crafting solutions.

3. Get to know your legislators. Make it personal. Understand their roles and keep communicating with them.

4. Understand the law and policy-making process.

Tips for Advocating Your Issues

5. Know the strengths and weaknesses of your issue.

6. Understand the importance of compromise and consensus building.

7. Understand the need for fiscal responsibility. Your issue is not the only good cause that needs new/sustained/increased funding.

8. Be passionate and persistent, yet patient.