CFO and CAFO Regulatory Issues

IN Pork ProducersJanuary 30, 2007

General Issues Introduce Ryan Westerfeld EPA CAFO Rule Status IN Senate Environmental Committee

Hearing Summary—3 Bills 3 Year Moratorium Increased Fees, Increased Inspections,

Increased Notification, Good Character, OISC Shall regulate Nutrient Application

Preemption Language

Environment, who pays? Issue permits Protect Surface and Ground Water Quality Approve Long Term Control Plans Write petitions to redesignate

communities to attainment for Ozone Inspect for compliance

Protecting human health and the environment in Indiana is not free

Environmental Fees

Funding for environmental regulation comes from three sources:

Federal – currently 28% State – currently 21% Dedicated – 51%

Fee Comparisons

2005-2007 2007-2009

Federal: $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

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 support environmental programs

Programs funded by users Incremental move towards fee supported

programs Faster permits, trained staff, quality

assessments require fully funded programs

Improved technologies to make doing business with IDEM easier

Last major IDEM fee increase - 1994 Recent Fee increases: 2003 the Indiana General Assembly passed a fee

for drinking water systems. 2005 the Excess Liability Trust Fund received an

additional $0.002 per gallon and a full $0.01 on special fuels, formerly exempt.

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

Accomplishments Reduce permit backlogs in all programs Petitioned EPA to redesignate all communities to

attainment for Ozone Reduce outside contracts for regulatory functions Reduce administrative duplication by combining

support functions with other state agencies (e.g. IOT, SPD, OLC)

Agency Goals IDEM will continue towards our goal to be

clear, consistent and speedy. In order to sustain the current activity or

meet even higher standards of responsiveness the level of funding for programs needs to be sustained.

Fee Proposals CAFO/CFO – 25 staff (17 FTEs) Fee Revenue: $42,000 Expenses: $1.2M Proposed Fee Revenue: $2.8 Annual Number of permits issued: 121 Annual Number of Permit renewals: 435 Number of Compliance Inspections: 1100

(Proposed)

Fee Proposals

NPDES – 79 staff Fee Revenue: $3.8M Expenses: $5.5M Proposed Fee Revenue: $4.75M Annual Number of permits issued: 340 Proposed increase is 25% Currently 68% fees / 32% general funds

Fee Proposals Drinking Water/Wastewater Operator

Certification – 6 staff Fee Revenue: $146,000 Expenses: $420,500 Proposed Fee Revenue: $526,000 Annual Number Certifications/tests issued:

4469

Fee Proposals Wetland/Water Quality Certification – 7

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

state funds) Expenses: $538,000 Proposed Fee Revenue: $ 426,000 to

$549,000 Annual Number of permits issued: 760

Fee Proposals Stormwater Fees – 8 Staff Fee Revenue: $365,000 Expenses: $698,000 Proposed Fee Revenue: $1.4M Annual Number of permits issued: 4,050 Rules 5, 6 and 13 have been funded

through fees and enforcement fines

Fee Proposals Hazardous Waste – 96 staff Fee Revenue: $1.3M Expenses: $8M Proposed Fee Revenue: $4.1M Permit Review, renewal, modifications and

Corrective action plan reviews: 375 Federal funding (currently) 33% State funding (currently) 31% Fee funding (currently) 36%

CAFOs

There are currently 625 CAFOs in Indiana CAFOs produce approximately 80 percent

of the animals from regulated farms IDEM is EPA’s CAFO permitting authority in

Indiana CAFOs are subject to more regulatory

requirements than CFOs CAFO environmental requirements may be

enforced by EPA and private citizens

Compliance Inspections IDEM has 16 CAFO/CFO Inspectors

These inspectors are also responsible for landfills, transfer stations, open dumps, and tire processors

Trained in various aspects specific to CAFOs/CFOs, such as nutrient management calculations

Changing Inspection Focus Inspections becoming more complex Assistance Inspections for new facilities and/or

significant new requirements For new CAFOs, one or two inspections during

construction, an assistance inspection within six months of start-up and a formal inspection six months later

Biosecurity Issues

Number of Farms (CFO & CAFO)

0

500

1,000

1,500

2,000

2,500

2001 2003 2005

SwineDairy/BeefPoultry

Number of Animals Raised in Indiana

0

50,000

100,000

150,000

200,000

2001 2002 2003 2004 2005 2006 2007

BeefDairy

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2001 2002 2003 2004 2005 2006 2007

Swine

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

2001 2002 2003 2004 2005 2006 2007

Chickens0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2001 2002 2003 2004 2005 2006 2007

Turkeys

IDEM Today CFO permits are

issued on average at 71 calendar days, 90 permit days is the statutory limit

IDEM is using a compliance assistance approach to help producers understand their environmental responsibilities in response to regulatory changes

In 2006

198 Applications Received

CAFO 124 CFO 74

90 Approvals 54

32 Pending 13

2 Withdrawn 7

IDEM’s Regulatory Program

IDEM’s regulations protect human health and the environment

Illegal discharges and permit violations result in enforcement actions

IDEM is receptive to considering best practices and alternatives to traditional land application

Joining ISDA in examining fragmented State regulatory structure ISDA, IDEM, Office of State Chemist, Board of

Animal Health

Unresolved CFO & CAFO Issues

Odor management & Air Pollution No evidence that CAFO’s emit enough air pollution

to require regulation as air pollution sources ISDA task force on odors U.S.EPA study on air pollution emissions

Local zoning and planning Suburbs encroaching upon farms Environmental regulation addresses the question:

“Is human health and the environment protected?” IDEM does not address local land use issues

Increased Number of Inspectors Continued Inspector Training

Summary Comments CFO/CAFO Regulation is evolving IDEM is working with ISDA and U.S. EPA to

develop sensible regulatory approaches to agricultural production and processing

Indiana’s farmers have always been concerned about the environment and the vast majority are good stewards of the environment

A strong economy means farms that are better able to provide excellent environmental protection