TERRE HAUTE — The Indiana Department of Environmental Management is canceling a contract early with the Vigo County Air Pollution Control Department, removing air monitoring and compliance duties the department performed on behalf of the state.
The state agency last week announced it would not renew contracts with Evansville, Indianapolis and Anderson at the end of this year and would cancel contracts with Hammond, Gary and Vigo County on March 31.
That means the Vigo County department will no longer receive state funds and most likely would have to establish and implement local permit fees to help pay for air quality inspections by revising a county ordinance.
A year ago, IDEM removed the responsibility from Vigo County of writing and issuing permits for industries and business under the federal Clean Air Act, called Title V permits, leaving the county department to respond to compliance issues and conduct a monitoring system for air quality.
Scott Nally, assistant commissioner for external affairs at IDEM, said the state agency has been “slowly weaning back to the state” many of the contracted services. “We have been able to gain a lot of efficiencies by eliminating a lot of external. For example, we had third-party folks helping with contracts.
“This is just a continued trend to start to pick up those services, so there is no duplication, which would be wasted tax dollars,” Nally said. “The only two pieces that were left for Vigo County is compliance and air monitoring. We have networked all our air monitoring, so we will pick up air monitoring out of one of our regional offices or out of Indianapolis.
“And then just like we handle other complaints from counties that did not have local agency contracts, we will handle complaints out of here,” Nally said of IDEM’s Indianapolis office.
Nally said IDEM would partner with Vigo County for educational projects “but there just wouldn’t be the transfer of funds. The county can do outreach and some complaints, as a lot of locals have ordinances that they would have the authority over.”
George Needham, executive director of Vigo County’s department, said the county this year received $118,031 under a state contract that uses federal pass-through money to provide air pollution control services, such as conducting inspections and providing technical assistance to business; monitoring air quality; and responding to air quality complaints such as odor, fugitive dust and open burning.
The Air Pollution Control Department has six employees. The department’s 2009 budget, supported from the county general fund, state funds and a non-reverting fund, is $526,460, with the majority of that, $418,910, for salaries. Plus, an additional $28,000 for insurance, Public Employee Retirement Fund (PERF) and Social Security is paid from the county commissioners budget, according to the county auditor’s department. Needham will earn $56,358 in 2009.
Needham said cities such as Hammond and Gary already issue local permits, something that can be done in Vigo County.
“We can still inspect the sources and we can issue our own local operating permits,” Needham said. “We are still looking at what it would take [in permit fees] to make up that difference from the state, but it is not tax money.”
Needham said the county agency can inspect annually, whereas IDEM inspects once a year or once every other year, with smaller air pollution sources every five years and some smaller sources not at all. In addition, Needham said the county department will look for grants from the U.S. Environmental Protection Agency.
The advantage to a county agency, Needham said, is responding to complaints on the same day or within a few hours, whereas IDEM has 30 days to respond to a complaint. In addition, air monitoring is important to keep the county in compliance for industrial growth.
“We feel this is a step backward and for us to remain in attainment, for new sources to come to the county, staying in attainment is important,” Needham said.
The county department inspects 54 sources of air pollution annually, with 15 sources falling under the Title V category. The county department has also responded to 34 air quality complaints so far this year, Needham said.
Steve Witt, president of the Terre Haute Economic Development Corporation, said he is unsure of the impact on existing business or for attracting new business if a county air quality permit and fee is established.
“I need to know more details,” Witt said. “Being in attainment for air quality is of huge importance in regard to attracting new industry in the future and to accommodate expanding existing industry in the community. So anything we can do at the local level to help assure that we maintain an attainment status for our air quality is a good thing.”
Vigo County Commissioners David Decker and Judith Anderson said they would consider a revised county ordinance establishing a local permit and fees, but would want to study any impact on economic development.
“Our local Air Pollution Control Department has been a bonus as far as I am concerned,” Anderson said. “If you have to wait for the state to check on problems or permits, people will get upset with the length of time to do that, so we have been very fortunate to have a local agency to respond, so anytime you take that away, that is not a good thing.”
Decker said a local air pollution office can help industries in the county “and I would hate to do anything that would hamper our economic development.”
Ronald Novak, director of the Hammond Dept. of Environmental Management, said that city received 85 cents on each dollar for a Title V permit, under its contract with IDEM.
“This [contract cancellation] came as somewhat of a surprise to us, as we had a contract good through the end of 2009 and had been advised that other contracts would be extended,” Novak said.
“All of a sudden, we were told that we would no longer be grantees of IDEM from a funding standpoint,” he said. Novak, who has served in the Hammond department for 37 years, said the city of Hammond already issues a city permit and could revise its city fee schedule as a result of IDEM’s action.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com.
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IDEM opting out early on contract with Vigo Air Polution Control Department
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