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Midwest Environmental Compliance Conference October 29-30, 2015 Chicago Marriott O’Hare Chicago, IL Indiana Department of Environmental Management (IDEM) Update

Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

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Page 1: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Midwest Environmental Compliance Conference

October 29-30, 2015

Chicago Marriott O’Hare

Chicago, IL

Indiana Department of Environmental Management (IDEM) Update

Page 2: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Presenters

• Nancy King, Rules Branch Chief, Office of Legal Counsel, IDEM

• Hala Kuss, Director, Northwest Regional Office, IDEM

• Valerie Tachtiris, Deputy Assistant Commissioner, Office of Legal Counsel, IDEM

Page 3: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Presentation Overview • IDEM Rules Update

• IDEM CTAP Services

• IDEM Self-Disclosure Policy

• IDEM Self-Disclosure Policy as it relates to Title V permits

• Office of Air Quality Compliance & Enforcement Priorities

• Office of Air Quality Permitting Process

• Questions

Page 4: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

IDEM Rules Update

Page 5: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

CTAP

Compliance and Technical Assistance Program

Page 6: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

• Purpose

o Confidentially assist regulated entities in achieving compliance.

o To encourage cooperation between IDEM and regulated entities.

o To promote IDEM’s goal of “assistance first, enforcement second” by assisting Hoosier businesses in understanding and achieving environmental compliance.

CTAP

Page 7: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Confidentiality IC 13-28-3-4

• Required by State Law to keep your information confidential.

o Information concerning your inquiry or documents identifying or describing your operation may not be shared without your consent.

o Only exception is when there is a clear and immediate danger to public health or the environment.

Page 8: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Meet CTAP • Nine positions, currently

– Five positions in central office

– One position in each of four regions • Northern Regional Office

• Northwest Regional Office, vacant

• Southeast Regional Office, vacant

• Southwest Regional Office, vacant

– Specialize in Air, Waste, and Water regulations and requirements.

– Over 100 years of experience with environmental regulations and requirements.

Page 9: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

CTAP Services • Voluntary, free assistance

o We are a non-regulatory division of IDEM

• Do not issue violations, permits, fees, fines or take enforcement actions

• Assistance is available by: • Phone at (317) 232-8172 or (800) 988-7901 • E-mail at [email protected] • Compliance site visits • CTAP website • Compliance manuals and fact sheets • Initiatives • Outreach and partnerships

Page 10: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Online Services • CTAP Website at www.idem.IN.gov/ctap

o Compliance Site Visit request form

o Compliance Due Dates

o Featured Topics

o Monthly summary of Indiana Register (IR)

o Industrial sector guidance

• Indiana Small Business Guide to Environmental, Safety, and Health Regulations o Designed to help small businesses understand and comply with

regulations applicable to their operation.

• Various IDEM Fact Sheets and Nonrule Policy Documents (NPD) o Self-Disclosure and Environmental Audit Policy, MP-004-R2

o Quality Assurance Guarantee Policy, OPPTA-0001-05

Page 11: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Subscription Service

• CTAP Compliance Due Dates

• CTAP Rulemaking Actions

o Monthly summaries of IR

• CTAP Featured Topics

o Updated quarterly

o IDEM Program’s initiatives

o Updates to rules and policies

o Applicable topics for the season

Page 12: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Quality Assurance Guarantee (QAG)

• The QAG policy means:

o IDEM stands behind CTAP’s compliance assistance.

o IDEM will not issue a Notice of Violation assessing a gravity-based penalty against a regulated entity that has sought out, received, and relied upon CTAP’s written compliance assistance prior to the alleged violation.

Page 13: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

QAG Letter

• The Compliance Site Visit letter will include: o Summary of the assistance sought by the

regulated entity.

o Observations made during the compliance site visit.

o Specific topics or question for which CTAP provided assistance.

o Record of assistance provided by CTAP

o Guarantee statement with directions on how to proceed if necessary.

Page 14: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

How CTAP Can Save You Money

• Helps businesses identify and address compliance issues.

• Identifies pollution prevention and other opportunities to reduce regulatory burdens.

• Empowers businesses to handle compliance issues.

Page 15: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Self-Disclosure and Environmental Audit Policy

Page 17: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

What is an NPD?

• Nonrule Policy Document

o Merely guidance.

o Does not change the law in any way.

o Creates no rights, duties, obligations, defenses.

Page 18: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Purpose of Self-Disclosure and Environmental Audit Policy

• To encourage regulated entities to voluntarily discover, disclose, correct, and prevent violations of environmental laws.

Page 19: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Why Self-disclose?

• Why should a person or company self- disclose? o Reduction or elimination of gravity-based civil

penalties.

• Self-disclosure may result in an Agreed Order (AO) without penalties.

o Indiana Department of Environmental Management’s (IDEM) agreement not to recommend prosecution

o It is the right thing to do.

Page 20: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Gravity-based Penalties

• What are gravity-based penalties?

o The portion of a civil penalty calculated by determining the extent of deviation from the law and the potential for harm to human health or the environment.

o Can be adjusted up or down for:

• Actions before and after the violation

• History of noncompliance

• Ability to pay

• Cost of IDEM enforcement

• Other unique factors

Page 21: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Economic Benefit Penalties

• The Self-Disclosure and Environmental Audit policy does not affect the economic benefit portion of the penalty.

• Any economic benefit gained by the violation must be sacrificed in order to level the playing field for fellow regulated entities who did not commit violations. Examples:

o Unpaid permit fees

o The cost of operating control equipment

Page 22: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Referrals for Prosecution

• Referrals for prosecution

o IDEM cannot enter into agreements that resolve criminal acts.

o Practically speaking, IDEM’s decision not to refer carries some weight.

o Exceptions:

• Prevalent management culture to disregard the law

• Prosecution of individual employees, officials and managers.

Page 23: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

How to Qualify

• How does a person or company qualify?

oMust meet at least eight of nine conditions.

Page 24: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

First Condition

• Systematic discovery o Violation discovered as a result of an environmental

audit or a systematic procedure or practice. • Includes a Compliance and Technical Assistance Program

audit.

• Does not include “sudden discovery.”

o This condition is necessary for 100% elimination of a gravity-based penalty.

o If conditions two through nine exist, a 75% reduction is still available.

Page 25: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Second Condition

• Voluntary discovery

o The discovery must be voluntary.

o NOT the result of legally-mandated monitoring or sampling. Examples:

• Annual compliance certifications

• Quarterly reporting required by permit

Page 26: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Third Condition

• Prompt Disclosure

o Must disclose within 45 days, or

o Within a shorter time if required by law.

Page 27: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Fourth Condition

• Must be disclosed before:

o Government inspection or investigation

• CTAP audits are excluded

o Notice of a citizen’s suit

o Third-party complaint

o Whistleblower report

o Imminent discovery by government

Page 28: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Fifth Condition • Must correct the violation

o Within 60 days

• Small entities have 90 days.

• Exceptions can be granted with proper justification.

• For permit violations, a permit application within 60-90 days is usually sufficient.

o Written certification of the correction.

o Must take appropriate steps to remedy harm to human health and the environment.

Page 29: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Sixth Condition

• Prevent recurrence

o Must agree in writing to improve auditing procedures or compliance management system.

Page 30: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Seventh Condition

• No prior violations

o Neither this violation nor a closely-related violation occurred within the past three years at the same facility.

o This violation is not part of a series or pattern of violations by the facility’s parent at other facilities within the past three years.

Page 31: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Eighth Condition

• Excluded violations o Serious environmental harm or risk to human health.

o Imminent, substantial danger to human health or the environment.

o Significant threat to human health or the environment.

o Knowing, intentional or reckless violation.

o Not inadvertent.

o Violation of a judicial or administrative order.

Page 32: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Ninth Condition

• Cooperation

o Must assist in the investigation and provide:

• Information

• Documents

• Access to employees

Page 33: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

U.S. EPA

• IDEM cannot bind the U.S. EPA, but IDEM will work with the U.S. EPA to:

o Encourage U.S. EPA’s support.

o Ensure IDEM’s policy is consistent with the U.S. EPA’s policy to promote consistent results.

• If IDEM addresses the violations, the U.S. EPA is generally satisfied and usually will not “over file.”

Page 34: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

How to Self-disclose

• Complete and submit the Self-Disclosure and Environmental Audit form, State Form 55075.

• Use a different format as long as it proves conditions one through nine.

• Questions?

o Call CTAP • 1-800-451-6027 (ext. 2-8172)

• (317) 232-8172

o Check the CTAP website • www.idem.IN.gov/ctap

Page 35: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

What if My Company Does Not Qualify Under the Policy?

• IDEM’s Civil Penalty Policy uses “actions after the violation” as a mitigating factor.

• Prompt self-reporting, when not required by law, can demonstrate good faith.

• The policy allows enforcement staff to adjust the penalty by up to 50% for good faith.

Page 36: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Self-Disclosure and Title V Sources

Page 37: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Self-Disclosure and Title V Sources

• Because of the monitoring and reporting requirements associated with Title V permits, Title V sources’ ability to utilize the Self-Disclosure and Environmental Audit policy is often limited.

Page 38: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Title V Sources • A “major” source under the Clean Air Act (CAA),

generally over 100 tons/year of any air pollutant or 10 tons/year of any Hazardous Air Pollutant (HAP).

• “Affected Sources” under the Acid Rain rules. • Solid Waste Incinerators under Section 129 of the CAA

(42 USC § 7429). • Certain non-major sources subject to:

o A National Emission Standards for Hazardous Air Pollutants (NESHAP).

o A Maximum Achievable Control Technology (MACT). o A New Source Performance Standards (NSPS).

• http://www.epa.gov/air/oaqps/permits/obtain.html

Page 39: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Title V Permits

• Title V (42 USC §§ 7661 et seq) of the 1990 Clean Air Act (CAA) Amendments requires certain sources of air pollution to obtain an operating permit.

• A Title V operating permit includes all air pollution requirements applying to the source, including emissions limits and monitoring, record keeping, and reporting requirements.

• Title V sources must also report their compliance status with permit conditions to the permitting authority.

Page 40: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

FESOPs

• Sources subject to Title V Permitting requirements may apply for a Federally Enforceable State Operating Permit (FESOP) that limits their potential to emit below the Title V Thresholds.

• FESOP sources are subject to similar monitoring, reporting, and compliance certification requirements as Title V permitees.

Page 41: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Applicable Requirements “Applicable requirement,” defined at 326 IAC 2-7-1(6), means all of the following as they apply to emissions units in a Part 70 source (including requirements that have been promulgated or approved by the U.S. EPA through rulemaking at the time of permit issuance but have future effective compliance dates): (A) Any standard or other requirement provided for in the applicable implementation plan approved or promulgated by the U.S. EPA through rulemaking under Title I of the CAA that implements the relevant requirements of the CAA, including any revisions to that plan promulgated in 40 CFR 52*. (B) Any term or condition of any preconstruction permits issued under regulations approved or promulgated through rulemaking under Title I, including Part C or D of the CAA. (C) Any standard or other requirement under Section 111 of the CAA, including Section 111(d) of the CAA. (D) Any standard or other requirement under Section 112 of the CAA, including any requirement concerning accident prevention under Section 112(r)(7) of the CAA. (E) Any standard or other requirement of the acid rain program under Title IV of the CAA or the regulations promulgated thereunder. (F) Any requirements established under Section 504(b) or 114(a)(3) of the CAA. (G) Any standard or other requirement under Section 126(a)(1) and 126(c) of the CAA. (H) Any standard or other requirement governing solid waste incineration under Section 129 of the CAA. (I) Any standard or other requirement for consumer and commercial products under Section 183(e) of the CAA. (J) Any standard or other requirement for tank vessels under Section 183(f) of the CAA. (K) Any standard or other requirement of the Code of Federal Regulations promulgated to protect stratospheric ozone under Title VI of the CAA, unless the U.S. EPA has determined that the requirements need not be contained in a Part 70 permit. (L) Any national ambient air quality standard or increment or visibility requirement under Part C of Title I of the CAA, but only as it would apply to temporary sources permitted under Section 504(e) of the CAA.

Page 43: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Monitoring • Per 326 IAC 2-7-5(3)(A), with respect to monitoring,

each Part 70 permit shall contain the following: o Any monitoring specified by an applicable requirement. o For applicable requirements that do not specify monitoring

requirements, “such periodic monitoring specifications sufficient to yield reliable data from the relevant time period that are representative of the source’s compliance with the Part 70 permit …Such monitoring requirements shall assure use of terms, test methods, units, averaging periods, and other statistical conventions consistent with the applicable requirement.”

o Record keeping provisions may be sufficient to meet monitoring requirements.

o “As necessary, requirements concerning the use, maintenance, and, where appropriate, installation of monitoring equipment or methods.”

• Also, see 326 IAC 2-8-4(3)(A) for FESOPs

Page 44: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Reporting • Per 326 IAC 2-7-5(3)(C), with respect to reporting, a Part 70 permit

shall incorporate all applicable reporting requirements and require the following:

• Submittal of reports of any required monitoring at least every six months. All instances of deviations from Part 70 permit requirements must be clearly identified in the reports. All required reports must be certified by a responsible official consistent with section 4(f) of this rule.

• The reporting of deviations from Part 70 permit requirements, including those attributable to upset conditions as defined in a Part 70 permit, the probable cause of the deviations, and any corrective actions or preventive measures taken…

• Also, see 326 IAC 2-8-4(3)(C) for FESOPs.

Page 45: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Self-Disclosure Policy Application

• In order to qualify for a penalty waiver, sources must meet at least eight of the nine conditions of the Self-Disclosure and Environmental Audit policy.

• The most difficult conditions for Title V and FESOP sources to meet are: o Voluntary Discovery o Prompt Disclosure

• Many violations would also be excluded because of the risk to human health and the environment.

Page 46: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Voluntary Discovery and Monitoring Requirements

• IDEM’s Self-Disclosure and Environmental Audit policy requires that the violation be discovered voluntarily.

• Explicitly excludes violations discovered “through a legally-mandated monitoring or sampling requirement…[such as] emissions violations detected through a continuous emissions monitor.”

• Violations “required to be detected…in accordance with either a Part 70 Permit…or a Federally Enforceable State Operating Permit.”

Page 47: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Voluntary Discovery and Monitoring Requirements

• Title V permits and FESOPs must contain monitoring to assure continuous compliance with all applicable requirements, so the vast majority of permit violations are not discovered “voluntarily” for purposes of self-disclosure.

Page 48: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Prompt Disclosure and Reporting Requirements

• The policy requires disclosure within 45 days of discovery of the violation or a shorter time if required by law.

• Disclosure also must occur before “imminent discovery of the violation by a Federal or State agency”.

• Title V permits require quarterly compliance certifications.

• Stack test results must be reported to the agency within 45 days.

o See 326 IAC 3-6-4(b)

Page 49: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Excluded Violations

• Condition eight of the Self-Disclosure and Environmental Audit policy excludes violations that cause or threaten to cause serious environmental harm or risk to human health.

• Based on the size of the sources involved, many violations would also be excluded because of the potential for harm.

Page 50: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Successful Self-Disclosure Claim

• A company purchased a previously-permitted facility and discovered during an environmental audit that not all equipment was properly permitted.

• Because the new owner systematically and voluntarily discovered the violation (and met the other conditions of the policy), the gravity-based civil penalty was waived.

Example

Page 51: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Benefits of Self-disclosing

• Most violations will not qualify for the Self-Disclosure and Environmental Audit policy, but IDEM’s Office of Air Quality (OAQ) still encourages sources to self-disclose prior to their quarterly deviation due date.

• Reductions in civil penalties are available for prompt settlement.

• We want sources to take prompt action to come back into compliance with permit terms.

Before Being Required to by Law

Page 52: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

IDEM Office of Air Quality Compliance and Enforcement Priorities

Page 53: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Air Compliance and Enforcement Priorities

• 2015-2017 Performance Partnership Agreement (PPA) www.idem.IN.gov/files/ppa_2015-2017.pdf

• U.S. EPA Clean Air Act Stationary Source Compliance Monitoring Strategy for Major Sources (CMS) http://www2.epa.gov/compliance/clean-air-act-stationary-source-compliance-monitoring-strategy

o Full Compliance Evaluations (FCE) of Title V permit holders at least once every two years.

o FCE of Federally Enforceable State Operating Permit (FESOP) holders at least once every five years.

o FCE includes inspections, report reviews, stack tests, and other compliance evaluations.

Page 54: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Air Compliance and Enforcement Priorities

• Minor Source and Other Inspections

o Inspect other minor sources approximately once every five years.

• Source Specific Operating Agreement (SSOA) permitted sources

• Minor Source Operating Permit (MSOP) sources

• Registered Sources

• Dry cleaners

• Autobody shops

• Chrome

• Automobile tampering

• Stage I Gasoline Vapor Recovery

• Gasoline Reid Vapor Pressure

Page 55: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Air Compliance and Enforcement Priorities

• Collaborate with U.S. EPA on National and Regional

Compliance and Enforcement Initiatives

National

o New Source Review (NSR) and Prevention of Significant Deterioration (PSD)

o Air Toxics and Hazardous Air Pollutants (HAPs)

Region 5

o Indianapolis Community Focus Group

Page 56: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Air Compliance and Enforcement Priorities

• Compliance Monitoring Strategy for Asbestos

oRenovation at school buildings with abatement

oOther renovations or demolition with abatement

oNewly licensed contractors

oCities with grants for demolition projects

o Stationary asbestos sources

• Identify unpermitted sources

• Complaint response

Page 57: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Air Compliance and Enforcement Priorities

• National Emission Standards for Hazardous Air Pollutants (NESHAPs) - 40 CFR Part 61 and 40 CFR Part 63 and 326 IAC 20

o Inspect as part of permitted source inspections

o Focus on recent and soon to be compliance dates

Industrial/Commercial/Institutional Boilers and Process Heaters (Boiler MACT)

Stationary Reciprocating Internal Combustion Engines (RICE)

Utility NESHAP (MATS)

Page 58: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

IDEM Office of Air Quality Permitting Process

Page 59: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

IDEM Air Permitting • What forms should be used and where can

they be found?

• What is a complete permit application?

• How long does it take to get a permit?

• What will be included in the permit?

• How much does a permit cost?

Page 60: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Forms

• All permit application forms are available on the Internet at www.idem.IN.gov/5157.htm.

• There are special application instructions for renewal permits and application forms for BACT, MACT, Emission Credit Registry, etc., available at www.idem.IN.gov/airquality/2495.htm.

Page 61: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Forms • An applicant must fill out the forms needed to

fully describe the operations and emissions at the source.

• The application consists of various forms covering the source in general and specific operations.

• The application cover sheet assists administrative staff.

Page 62: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Forms • The main forms are of the following types:

– General Source Data (GSD)

– Process Information (PI)

– Control Equipment (CE)

– Compliance Determination (CD) (for Title V sources)

– Others such as MACT, NSPS, NESHAP or CAM (FED)

Page 63: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Forms • The permit application may be submitted in

any format as long as you provide the required information.

• Every application should include:

– Application Cover Sheet

– GSD-01

• Don’t forget notification requirements:

– New sources GSD 13-15

– Existing sources GSD 12 & 15

Page 64: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Forms

• If you are unable to locate a form or the instructions for a particular form, contact:

• IDEM’s Compliance and Technical Assistance Program.

– (317) 232-8172 or toll free at (800) 988-7901 or via e-mail at [email protected].

• Or contact CTAP through the Air Permit Reviewer of the Day.

– (317) 233-0178 or toll free at (800) 451-6027, press 0, and ask for extension 3-0178.

Page 65: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Don’t Forget the Library

• Applicants are required to send one copy of their application to the library for public review.

• It must be submitted within 10 days of submitting it to IDEM.

• Applicants must place the copy in a library that is in the same county as their source.

Page 66: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Confidential Information • All information submitted to IDEM is considered

public record.

• A claim of confidentiality must be made at the time the application is submitted.

• A claim of confidentiality must follow the requirements set out in 326 IAC 17.1-4-1 and include information to support the claim.

• For more information, see IDEM guidance and Nonrule Policy Document Air-031-NPD www.idem.IN.gov/4694.htm.

Page 67: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

A “Complete Application”

• A complete application is one that has:

– Fulfilled the regulatory requirements.

– Adequately describes the units and emissions at the source.

– Has been signed by either the responsible official or the authorized individual depending on the level of permit.

Page 68: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Complete Application

• A complete application would mainly consist of the following forms:

– Application cover sheet

– GSD 01 through 08

– GSD 12, 13, 14, and 15

– Associated PI forms

– Associated CE forms

Page 69: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Source/Permit Modification

• Applicants requesting a minor source modification under 326 IAC 2-7-10.5(d) and a minor permit modification under 326 IAC 2-7-12(h) may begin construction and operation upon issuance of the source modification only if a complete application fulfilling the requirements of both rules has been met.

Page 70: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Pre-application Meetings

• The Office of Air Quality highly recommends pre-application meetings for PSD and Nonattainment NSR Sources (Emission Offset) and other complex projects. They also promote pre-application meetings for all types of projects.

• This helps the applicant provide a clear and complete application and assists the Permits Branch in issuing an accurate and speedy decision.

Page 71: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

The Processing Procedure • Air permit applications are received by the

Permits Administration and Support Section of the Office of Air Quality Permits Branch. They will: – Check for source identification, application type

and initial completeness.

– Assign the application to Permit Review 1, 2, 3, 4, 5, or 6 based on the SIC.

– Set the accountability time clock and start the clock.

Page 72: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Permit Fees • A description of required fees can be found in 326

IAC 2-1.1-7.

• Applicants are not required to submit the filing fee with submission of the application. The filing fee will be included in the bill for the permitting fees.

• Bills for permitting fees are sent out during the public notice period or at issuance if there is no public notice period.

• After a source begins operation, they may be subject to annual operating permit fees.

Page 73: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Permit Review Sections

• Permit Review Sections are no longer divided by type of permit (i.e., Registration, FESOP, Title V, etc.)

• Each section now issues all minor and major permits including modifications and revisions.

• The sections are now divided by the Standard Industrial Classification (SIC) of the source.

Page 74: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Permit Review Section Contacts Section 1 2 3 4 5 6

Section Chief

Crystal Wagner

Dr. Trip Sinha

Jenny Acker

Nathan Bell

Iryn Calilung

Jason Krawczyk

Page 75: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Review

• The section chief assigns the application to a permit reviewer.

• The permit reviewer informs the applicant that work has begun on the application.

• The permit reviewer may request additional information.

• The permit reviewer may issue a Notice of Deficiency (permit accountability clock will stop).

Page 76: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Time Clock

• Most applications must be processed within a required time frame.

• These time frames are listed in 326 IAC 2-1.1-8.

• If a permit is not issued on time, the applicant may request a refund of their permitting fee upon issuance of the permit.

• In most cases, the Office of Air Quality issues the permits within the number of calendar days set by the rule.

Page 77: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Application Time Clock • When can I construct?

– Not until the construction approval has been issued.

• 326 IAC 1-2-21 "Construction" defined

– Means fabrication, erection, or installation of an emission unit.

– Does not include: installation of building support, erection of storage structure, dismantling of equipment and control devices, etc.

• 326 IAC 2-2-1 “Construction” defined

– Any physical change or change in the method of operation.

Page 78: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Applicant Review

• The permit reviewer shares the draft of the permit with the applicant before Public Notice. (The permit writer may share the draft prior to issuance if public notice not required.)

• The applicant should carefully examine draft and make requests for changes as soon as possible.

• Applicants should ask about any conditions that seem incorrect or concern them.

Page 79: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Permit Numbering

Plant ID

Permit Type

T 009-12345-00004

County Code Permit ID

Page 80: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Terms and Conditions

• Each permit contains terms and conditions that describe the construction or operating requirements.

• Including, but not limited to: emission limitations and standards, testing, compliance determination, compliance monitoring, record keeping, and reporting.

Page 81: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Public Notice of Draft Permit

• Not all draft permits go out on public notice. For a list of ones that do, refer to 326 IAC 2-1.1-6.

• Public notice is for 30 days. Notices are published in the area paper. OAQ places the draft permit and Technical Support Document at local library.

• The permit reviewer is available to discuss permit further during the public notice period.

• Requests for public hearings are received during the public notice period.

• OAQ may hold a public meeting rather than a public hearing.

Page 82: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Computer Automated Approval and Tracking System “CAATS”

• CAATS is available to the public at www.IN.gov/ai/appfiles/idem-caats/.

• Applicants can:

– See who is assigned to review the application.

– Track the status of the application.

– Review draft and issued versions of the permit.

Page 83: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Permit Issuance • After any public notice period ends, the permit

reviewer drafts an addendum to the Technical Support Document (TSD), which responds to all comments received.

• If a hearing is requested, the comment period may be extended.

• Permit reviewers route the proposed decision to their mentor, section chief, and some permits go to the Permits Branch chief, Matt Stuckey.

Page 84: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Petitioning for Administrative Review

• All petitions for Administrative Review of OAQ permit decisions must be filed with the Office of Environmental Adjudication.

• The Notice of Decision that accompanies each permit decision sets out the requirements for filing the Petition for Administrative Review and the deadline.

• Most petitions must be filed within 15 days. Petitions regarding first Title V permit decisions have a 30-day deadline.

Page 85: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Permit Expiration

• Permits expire five years after the original issuance date. Registrations and SSOAs do not expire.

• MSOP and FESOP sources have 10-year time frames for their second and all subsequent renewal permits.

• Permit revisions, modifications, and amendments do not affect the expiration date.

• A timely renewal application must be submitted for the source to operate legally after the permit expires.

• “Timely” means nine months prior to the expiration date.

Page 86: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Internet Resources • Air Permit Application Forms

www.idem.IN.gov/airquality/2495.htm

• Air Permitting Timeline & Fee Table

www.idem.IN.gov/5886.htm

• Indiana Administrative Code www.IN.gov/legislative/iac/

• Online Permit Guide www.idem.IN.gov/5881.htm

Page 87: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

For Additional Information

• Call the Permit Reviewer of the Day at (317) 233-0178 or toll free at (800) 451-6027, press 0, and ask for extension 3-0178.

• Call the Compliance and Technical Assistance Program (CTAP) at (317) 232-8172 or toll free at (800) 988-7901.

• Call the OAQ Permits Branch at (317) 234-5132 or toll free at (800) 451-6027, press 0, and ask for extension 4-5132.

Page 88: Nancy King, IDEM, Hala Kuss, IDEM, Valerie Tachtiris, IDEM, Indiana Department of Environmental Management (IDEM) Update, Midwest Environmental Compliance Conference, Chicago, October

Questions?