Indiana Update2015 Tri-State Electric Utility

Environmental MeetingMay 7, 2015

Thomas W. Easterly, P.E., BCEE, CommissionerIndiana Department of Environmental Management

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IDEM’s MissionProtecting 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.

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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.

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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.

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Performance Metrics March 2015Result Targets Comments

Quality of Hoosiers' Environment

% of Hoosiers that live in counties that meet air quality standards

91.00 100% 80%

Muncie Lead; Ozone in LaPorte County; Sulfur Dioxide in parts of Daviess, Marion, Morgan, Pike and Vigo Counties

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

98.17% 100% 90%98+9 (107) out of 99+10 (109). Not Gary or Edinburgh

% of Hoosiers that receive water from facilities in full compliance with safe drinking water standards

99.69% 99% 95%Turbidity Violations at Jasper, Lowell and Stucker Fork 

Permitting EfficiencyTotal calendar days accumulated in issuing environmental permits, as determined by state statute*

Land 39,387 52.424 58,591 61,675 statutoryAir 39,957 48,080 53,737 56,565 statutoryWater 32,962 63,725 71,222 74,970 statutory

* Places emphasis on back logged permits

ComplianceTotal percentage of compliance observations from regulated customers within acceptable compliance standards*Inspections 97.55% 97% 75%  Self reporting 95.77% 99% 95%  

Continuous monitoring (COM) 99.81% 99.9% 99.0%  

* Tracks observations and not just inspections5

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Performance Metrics June 2005Quality of Hoosiers' Environment Result Target Comments

% of Hoosiers in counties meeting air quality standards

61% 100% 80%12 counties & 2,408,571 of 6,195,643 above standard

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

4% 100% 20% 75% by 2007 is goal

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

Land 100,013 66,565 86,864

Air 511,000 207,000 385,000

Water 301,000 48,000 200,000

* Places emphasis on back logged permits

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

Inspections 95.46% 97% 75%

Self reporting 97.11% 99% 95%

Continuous monitoring (COM) 99.19% 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 $6,179,367 $0 $3,447,017

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Permits--Percent of Statutory Days

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50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Percentage of allowable days

Best in NPDES Permitting

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2nd Best in Title V Permits

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Water QualityIndiana Combined Sewer Overflow Status

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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

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2015 Legislation• HB 1350—IDEM’s General Improvements

– Allows variances for all programs to be issued for up to five years.

– Allows IDEM to require electronic reporting.– Allows the Ivy Tech fee for operator certification

exams.– Clarifies the wetland in-lieu fee program

requirements.– Adjusts various reporting and fee dates.

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2015 Legislation• SB 311—Clarifies cost recovery for IDEM

oversight of clean up of contaminated property.

• SB 312—Enhanced Drinking Water Protection.– Requires surface water quality threat minimization

and response plan for public water supplies.– Requires one time registration of above ground

tanks, not otherwise reported to government agencies, in the critical zone of concern.

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Federal Initiatives to Watch• President’s climate change initiative.

• Revised ozone air quality standard.

• Waters of the United States definition.

• eDMRs—possible expansion of reporting requirements and mandatory electronic reporting.

• Air pollution transport to downwind states.

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U.S. EPA’s Clean Power Plan

• Regulates Carbon Dioxide (CO2) emissions from power plants using fossil fuels

• New Source Standards under 111(b)• Existing Source Standards under 111(d)

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Indiana Carbon Dioxide Emission Rates(pounds of CO2 per Megawatt Hour)

2012 Baseline U.S. EPA 2030 Goal

Indiana 2030 Estimate

1,924 1,531 1,615 to 1,683

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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.

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Existing Source Proposal—111(d)

• Coal generation capacity will decrease by 46-49 GW, and oil generation capacity by 16 GW.

• 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.

Impacts on Indiana• This regulation will increase the costs of

energy in the United States—both natural gas and electricity prices expected to rise by 10%--the impact on Hoosiers may be greater due to our current reliance on coal.

• The number of Hoosiers who lose utility services for non-payment is likely to increase.

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Impacts on Indiana• This increased cost of energy will likely

reduce the international competitiveness of Hoosier businesses resulting in a shift of emissions from Indiana to other countries.

• The worldwide greenhouse gas emissions may actually increase when manufacturing moves from Indiana (and the rest of the United States) to other countries.

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Climate Impacts—111(d) ProposalThis rule will have virtually no impact on

modeled global climate change. It is projected to reduce:

• Global CO2 concentrations by 1.5 ppm by 2050. This represents 0.3% of the expected projected average global average CO2 concentrations in 2050.

• Sea level increases by 0.01 inch.29

Climate Impacts—111(d) ProposalThe proposed rule is also projected to reduce:• Global average temperatures by 0.016o F

(0.009o C) based upon U.S. EPA’s climate models. – This projected temperature reduction is based

upon the projected 1.5 ppm reduction in global CO2 concentrations.

– Since 1998, global average CO2 concentrations have increased by 33 ppm or 9%, but global average temperatures have not increased. 30

State Goals as % Reduction from 2012

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Source: Bloomberg New Energy Finance

Percentage Change in CO2 Emissions from Utilities (2005 – 2012)

Decreasing >15%

Decreasing 0 – 15%

Increasing

No Data

Location of the State Capitals

State Boundaries 32

Indiana’s Response to the 111(d) Proposal

• The proposed regulation is not consistent with our goal of affordable reliable energy.

• Governor Pence, Attorney General Zoeller and IDEM Commissioner Easterly have taken numerous actions to opposing U.S. EPA’s proposal.

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Indiana’s Response to the 111(d) Proposal

• Indiana is pursuing other options in case the legal and policy challenges do not succeed.– IDEM is preparing possible options for a State

plan to meet the proposed regulations.– IDEM and the IURC are working with other

MISO states as the Midcontinent States Energy and Environmental Regulators (MSEER) to evaluate possible regional plans.

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Midcontinent States Environmental and Energy Regulators

Questions?

Tom EasterlyCommissioner

Indiana Department of Environmental Management(317) 232-8611

teasterly@idem.IN.gov

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