2004 OLQ FOCUS

Petroleum

Pigs Piles

Tank Universe

14,500 Registered Underground Storage Tanks

7,870 Total Releases reported to date4,025 have been cleaned up3,845 active sitesAverage 200 new releases each yearAverage cleanup costs covered by ELTF

$139,000

Purpose of Petroleum Storage Tank Excess Liability Trust Fund (ELTF)

ELTF effective April 1, 1988 to: Assist owners / operators to establish

financial responsibility required by Federal Law

Provide money to satisfy costs /liabilities incurred for corrective action

Provide money for indemnification of third parties

Provide money for expenses incurred by the Department to administer the fund

Underground Storage Tank Fees $90/tank/year

(split 50/50 with PetroleumTrust Fund)

generates ~ $650,000 annually for ELTFOil Inspection Fees

$0.40/50 gallon of gasoline or kerosene (diesel fuel excluded)

generates ~ $32,000,000 annually

Sources of Money for the Trust Fund

Fund Activity in Millions

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

1999 2000 2001 2002 2003

RevenueExpensesFund Bal.

Why is the Fund Balance going down?

Number of claims has increased significantly 1996 400 claims submitted 1998 648 claims submitted 2000 1626 claims submitted 2002 2719 claims submitted

Possible Consequences of Declining ELTF Balance

Statute requires the Financial Assurance Board (FAB) establish a priority for paying claims to facilities that represent an immediate and significant threat to the environment.

FAB rules require only high priority claims be paid if Fund balance drops below $25 million.

Consequences (cont.)It is expected that the fund will go below

$25 million in the next year.Claim payments would be delayed for

cleanups not considered a high priority.Risk of EPA determining the fund is not

solvent and no longer adequate to provide financial assurance.

Owners/operators required to obtain insurance.

ELTF Rule Revisions

ELTF Rule is being revised to address several issues. Making remedies cost effective Adjusting cost allowances Reducing mark up of subcontractor costs Prioritization of claims

Preliminary Adoption in Feb. or Mar. 2004

Who is Regulated?

Pursuant to Confined Feeding Control Law confined feeding operation defined as: Confined Feeding of at least:

300 Cattle600 Swine600 Sheep30,000 Fowl

Operation that causes a water quality violation

Who is Regulated?

The state has had a program to regulate CFOs since the mid 1970’s.

The Water Pollution Control Board adopted rules in 2001 to govern design, construction, operation of all CFOs in the state.

EPA has passed rules that bring in other species of animals and requires an NPDES permit for larger facilities.

Confined Feeding Operations

Indiana has 2400 Confined Feeding Operations that have state Confined Feeding Operation (CFO) approvals

Indiana has about 550 CFOs that meet the federal definition of Concentrated Animal Feeding Operations (CAFO)

Indiana has believed and argued to U.S. EPA, that the state program is functionally equivalent to the federal program

Confined Feeding Operations

Developing a General NPDES Rule

Workgroup with Industry, Environmentalists, Purdue and NRCS

Rule to Water Board in January 2004

Guidance and implementation

Waste Tires

Regulatory Program

Clean up Program

Market Development

Tire Regulatory Program

Currently there are 30 Waste Tire Processors, 2 Storage Sites and 89 Transporters that are registered

Ban on disposal of whole tires into landfills

Dealers required to manifest tires

Tire Pile Clean Up

1993 - $.25 per tire fee Since 1993 removed ~7.6 million

tires and spent $6.7 millionCleaned up states largest pile2004 $1.3 million budgetedConcern with processing sites

Enforcement

Since Oct. 31st IDEM has obtained court ordered Temporary Restraining Orders for 4 Tire Processing Facilities

Cumulative their storage amounts to2.5 million passenger tire equivalents

Market Development

FY 03 IDEM gave $90K to five schools for field amendment pilots

FY 04 budgeted $300K for tire reuse / recycling projects

Identifying obstacles to Tire Derived Fuel

Applications in septic leach fieldsINDOT - lightweight fill in embankments