Environmental FeesEnvironmental FeesJanuary 2007January 2007

Thomas W. Easterly, P.E., DEE, QEP Thomas W. Easterly, P.E., DEE, QEP

IDEM CommissionerIDEM Commissioner

IDEM’s Business is Protecting Human Health and the

Environment Protecting human health and the Protecting human health and the

environment costs money—IDEM spends environment costs money—IDEM spends money to:money to:– Issue PermitsIssue Permits– Review and approve Long Term Control Review and approve Long Term Control

Plans to address Combined Sewer OverflowsPlans to address Combined Sewer Overflows– Develop regulations to protect the Develop regulations to protect the

environmentenvironment– Petition EPA to recognize that our air quality Petition EPA to recognize that our air quality

meets all health based standardsmeets all health based standards– Inspect facilities for complianceInspect facilities for compliance

Environmental Fees

Funding for environmental regulation Funding for environmental regulation comes from three sources:comes from three sources:

Federal Funds– currently 28%Federal Funds– currently 28% State General Funds– currently 21%State General Funds– currently 21% Dedicated Funds from Users of the Environment– 51%Dedicated Funds from Users of the Environment– 51%

Note: IDEM’s total budget also includes funding for the Note: IDEM’s total budget also includes funding for the Excess Liability Trust Fund (ELTF) which reimburses Excess Liability Trust Fund (ELTF) which reimburses companies for cleaning up leaks of petroleum productscompanies for cleaning up leaks of petroleum products

IDEM’s proposed budget includes no increased fees

The proposed budget is balanced and will The proposed budget is balanced and will allow us to continue to provide current allow us to continue to provide current levels of service through the biennium. levels of service through the biennium.

The public is asking for improvements in The public is asking for improvements in a number of IDEM programs including:a number of IDEM programs including:– CFO/CAFO (livestock agriculture) inspectionsCFO/CAFO (livestock agriculture) inspections– Storm water pollution and erosion control Storm water pollution and erosion control

programsprograms– Expedited permitsExpedited permits– Water quality improvement projectsWater quality improvement projects– Better operation of Wastewater treatment Better operation of Wastewater treatment

plantsplants

Programs funded by users

I believe the most responsible funding for environmental programs is user-based fees.

I propose increasing fees or establishing new fees to fully support and improve Indiana’s environmental programs.

The Indiana Department of Environmental The Indiana Department of Environmental Management (IDEM) will be working with Management (IDEM) will be working with legislators during the 2007 session to legislators during the 2007 session to bring our environmental fees to levels bring our environmental fees to levels that will adequately fund the programs.that will adequately fund the programs.

Programs funded by users

Incremental move towards fee Incremental move towards fee supported programssupported programs

Faster permits, trained staff, Faster permits, trained staff, quality assessments require fully quality assessments require fully funded programsfunded programs

Improved technologies to make Improved technologies to make doing business with IDEM easierdoing business with IDEM easier

Last major IDEM fee increase was in 1994

Recent Fee increases adequately fund a few Recent Fee increases adequately fund a few programs:programs:

2003 the Indiana General Assembly 2003 the Indiana General Assembly passed a fee for drinking water systems. passed a fee for drinking water systems.

2005 the Excess Liability Trust Fund 2005 the Excess Liability Trust Fund received an additional $0.002 per gallon received an additional $0.002 per gallon and a full $0.01 on special fuels, formerly and a full $0.01 on special fuels, formerly exempt.exempt.

2006 the Air Pollution Control Board 2006 the Air Pollution Control Board increased Title V air permits by 25%increased Title V air permits by 25%

Recent IDEM Accomplishments

Reduced permit backlogs in all programs Reduced permit backlogs in all programs by 50%, plan to be current by the end of by 50%, plan to be current by the end of 2007 2007

Petitioned EPA to redesignate all Petitioned EPA to redesignate all communities to attainment for Ozonecommunities to attainment for Ozone

Reduced use of outside contracts for core Reduced use of outside contracts for core regulatory functions (air permits, ELTF)regulatory functions (air permits, ELTF)

Reduced administrative duplication by Reduced administrative duplication by combining support functions with other combining support functions with other state agencies (e.g. IOT, SPD, OLC) state agencies (e.g. IOT, SPD, OLC)

IDEM Goals

IDEM’s overall goal is to “Increase the IDEM’s overall goal is to “Increase the personal income of all Hoosiers from the personal income of all Hoosiers from the current $0.88/$1.00 of the national average current $0.88/$1.00 of the national average to at least $1.00/$1.00 of the national to at least $1.00/$1.00 of the national average while maintaining and improving average while maintaining and improving Indiana’s Environmental Quality.” Indiana’s Environmental Quality.”

In order to achieve that goal, IDEM will In order to achieve that goal, IDEM will continue to strive to be clear, consistent and continue to strive to be clear, consistent and speedy.speedy.

In order to meet even higher standards of In order to meet even higher standards of responsiveness some IDEM programs need responsiveness some IDEM programs need more stable funding.more stable funding.

Fee ComparisonsFee Comparisons

2005-20072005-2007 2007-20092007-2009Federal:

$57,530,097(18.92%) Red

General: $61,750,166

(20.31%) White

Dedicated: $86,969,087(28.61%)

Dedicated: $91,318,803(30.05%)

Federal: $84,618,622

(27.85%) Red

General: $64,860,832

(21.35%) White

ELTF: $63,047,325(20.75%) Blue

ELTF: $97,769,864(32.16%) Blue

Fee ProposalsFee Proposals

CAFO/CFO – 25 staff (17 FTEs)CAFO/CFO – 25 staff (17 FTEs) Fee Revenue: $42,000Fee Revenue: $42,000 Expenses: $1.2MExpenses: $1.2M Proposed Fee Revenue: $2.8Proposed Fee Revenue: $2.8 Annual Number of permits issued: 121Annual Number of permits issued: 121 Annual Number of Permit renewals: 435Annual Number of Permit renewals: 435 Number of Compliance Inspections: Number of Compliance Inspections:

1100 (Proposed) 1100 (Proposed)

Fee ProposalsFee Proposals

NPDES – 79 staffNPDES – 79 staff Fee Revenue: $3.8M Fee Revenue: $3.8M Expenses: $6.2MExpenses: $6.2M Proposed Fee Revenue: $4.75MProposed Fee Revenue: $4.75M Annual Number of permits issued: Annual Number of permits issued:

340340 Proposed increase is 25%Proposed increase is 25%

Fee ProposalsFee Proposals Drinking Water/Wastewater Drinking Water/Wastewater

Operator Certification – 6 current Operator Certification – 6 current staff staff

Fee Revenue: $146,000 Fee Revenue: $146,000 Current Expenses: $471,000 Current Expenses: $471,000 Proposed Fee Revenue: $526,000 Proposed Fee Revenue: $526,000

(would add 3 staff)(would add 3 staff) Annual Number Certifications/tests Annual Number Certifications/tests

issued: 4469issued: 4469

Fee ProposalsFee Proposals

Wetland/Water Quality Certification Wetland/Water Quality Certification – 7 staff– 7 staff

Fee Revenue: $0 (60% federal Fee Revenue: $0 (60% federal funds/40% state funds) funds/40% state funds)

Expenses: $602,000 Expenses: $602,000 Proposed Fee Revenue: $ 426,000 Proposed Fee Revenue: $ 426,000

to $549,000to $549,000 Annual Number of permits issued: Annual Number of permits issued:

760760

Fee ProposalsFee Proposals Stormwater Fees – 8 current StaffStormwater Fees – 8 current Staff Fee Revenue: $365,000Fee Revenue: $365,000 Expenses: $782,000Expenses: $782,000 Proposed Fee Revenue: $1.4M (add Proposed Fee Revenue: $1.4M (add

field staff for inspections)field staff for inspections) Annual Number of permits issued: Annual Number of permits issued:

4,0504,050 Rules 5, 6 and 13 have been funded Rules 5, 6 and 13 have been funded

through fees and enforcement finesthrough fees and enforcement fines

Fee ProposalsFee Proposals

Hazardous Waste – 96 staffHazardous Waste – 96 staff Fee Revenue: $1.3MFee Revenue: $1.3M Expenses: $8MExpenses: $8M Proposed Fee Revenue: $4.1MProposed Fee Revenue: $4.1M Permit Review, renewal, modifications Permit Review, renewal, modifications

and Corrective action plan reviews: and Corrective action plan reviews: 375375

Federal funding (currently) 33%Federal funding (currently) 33% State funding (currently) 31%State funding (currently) 31% Fee funding (currently) 36% Fee funding (currently) 36%

QuestionsQuestions

Please contact either of these staff Please contact either of these staff members with questions or for members with questions or for assistance:assistance:

Sandra Flum, 232-9479 or Sandra Flum, 232-9479 or sflum@idem.in.govsflum@idem.in.gov

Bowden Quinn, 233-3835 or Bowden Quinn, 233-3835 or bquinn@idem.in.govbquinn@idem.in.gov