New Ohio EPA Director and Director Staff

Governor Strickland appointed Christopher Korleski as the Director of Ohio EPA, effective February 1, 2007. Director Korleski is an attorney, most recently as in-house environmental counsel to OMA member Honda of America Mfg., Inc. Prior to joining Honda, Director Korleski was an attorney in the Ohio Attorney General’s Office’s Environmental Enforcement Section, where he specialized in air pollution control cases. Director Korleski participated in Ohio EPA’s Permit Processing Efficiency Committee (PPEC) in the early 2000’s, which was a joint initiative between Ohio EPA and business trade groups (including OMA) to evaluate and suggest changes to Ohio EPA’s permitting process to increase efficiency. Director Korleski is quite familiar with the environmental regulatory challenges facing industry and has been an advocate for permit processing efficiency. Director Korleski’s appointment is applauded by OMA and we look forward to working with Director Korleski in meeting the upcoming challenges.

Ohio EPA also recently announced that Laura Powell will continue in her role as Ohio EPA Assistant Director. Ms. Powell joined Ohio EPA in 1991 as a legislative liaison and became chief of Ohio EPA’s Office of Legislative Affairs in 1999. The OMA has a strong working relationship with Ms. Powell and looks forward to continuing that relationship.

Drew Bergman has been named Ohio EPA Deputy Director of Legal Affairs. Mr. Bergman was formerly an environmental attorney at Porter Wright Morris and Arthur and previously served as an assistant attorney general in the Environmental Enforcement Section. Mr. Bergman is also very familiar with the environmental regulatory challenges facing industry and participated in OMA programs and initiatives (e.g., PPEC). OMA looks forward to continuing its strong working relationship with Mr. Bergman.

Regulatory Reform Initiative

On February 27, 2007, Governor Strickland unveiled Advantage Ohio, a regulatory reform initiative to address unnecessary regulatory burdens faced by Ohio businesses. Governor Strickland named Columbus lawyer Scott North to head up this initiative, which will evaluate the practices and regulations imposed on doing business in Ohio and target those which are unnecessary, redundant or contradictory.

Ohio EPA Air Rules

1. Ohio EPA Air Toxic Rule
   (OAC 3745-114-01)
   This rule, which became effective December 1, 2006, contains a list of toxic air contaminants promulgated in response to requirements in Senate Bill 265. The original draft list included 639 compounds. OMA submitted written comments to Ohio EPA on August 21, 2006 opposing portions of the rule. Ohio EPA then re-issued the draft list of toxic air contaminants, reducing the list to 303 compounds. A public hearing on the draft rule was held on October 23, 2006, and OMA submitted comments in support of the revised proposed rule, which was adopted and became effective on December 1, 2006. The Sierra Club, Ohio Citizen Action, Ohio Academy of Trial Lawyers, Environmental Community Organization and the Buckeye Environmental Network have appealed portions of the rule to the Ohio Environmental Review Appeals Commission (ERAC). OMA and other business trade groups are considering the possibility of intervening in the appeal to protect the rule as adopted. Regardless of whether intervention is attempted or granted by ERAC, OMA will continue to monitor this appeal, which could have a significant impact on industry.

2. Permit-to-Install and Operate (PTIO) Program
   (OAC 3745-31 and -35)
   On March 14, 2007, Ohio EPA released draft rules to implement a combined air permit-to-install (PTI) and permit-to-operate (PTO) program, which was approved in concept by former Director Jones in February 2004. Rather than requiring a source to apply for a PTI, which is issued with both installation and operation terms, and then apply for a PTO within a year of construction, the new program will require one application for both a PTI and PTO and both installation and operation requirements will be issued under one document. Public comments are being accepted until April 13, 2007. OMA will be submitting comments on the draft rules.

3. Acid Rain Operating Permits
   (OAC Chapter 3745-103)
   Primarily “housekeeping” changes generated as part of the five-year rule review. Public hearing was held on November 13, 2006, and public comments were due November 13, 2006. Ohio EPA received no public comments, and the rules were issued on December 29, 2006, effective January 12, 2007.

4. Architectural and Industrial Maintenance (AIM) Coatings
   (OAC Chapter 3745-113)
   Covers coatings applied to interior and exterior of homes and offices, factory floors, bridges, stop signs, roofs, swimming pools, driveways, etc. Rules will provide emission reductions to assist in attaining and maintaining NAAQS 8-hour ozone standard, especially directed to assist attainment in Northeast Ohio. Public comments were due by December 11, 2006. Ohio EPA has not yet acted on this draft rule package.

5. Stack Height Design
   (OAC 3745-16-01 and 3745-16-02)
   Rules address good engineering practice for stack height design. Public hearing was held on November 8, 2006. Ohio EPA received no public comments on the rule, which was adopted and became effective January 2, 2007.

6. “Consumer Products” Rule
   (OAC Chapter 3745-112)
   On December 28, 2006, Ohio EPA proposed new rules aimed at reducing VOC’s from consumer products (e.g., adhesive, air fresheners, aerosols, carpet cleaners, etc.). The rules are intended to assist the state in achieving and/or maintaining the national 8-hour ground level ozone standard. The draft rule applies to “any person who sells, supplies, offers for sale, or manufactures consumer products on or after January 1, 2008 for use in the state of Ohio”. It exempts a manufacturer or distributor who sells, supplies or offers for sale in the state of Ohio a consumer product that does not meet the VOC standards as long as the manufacturer or distributor can demonstrate both that the consumer product is intended for shipment and use outside of the state of Ohio and the manufacturer or distributor has taken reasonable prudent precautions to assure that the consumer product is not distributed in the state of Ohio. Therefore, it applies to a consumer product sold in Ohio regardless of place of manufacture. Public comments were due on January 29, 2007.

7. Clean Air Mercury Rule (CAMR)
   (OAC 3745-108)
   Ohio has proposed rules to implement federal rules known as the Clean Air Mercury Rules (CAMR), published by U.S. EPA in May 2005. The rules establish a cap and trade program for emissions of mercury and set a total mercury emissions ceiling for Ohio. Ohio EPA predicts that, when fully implemented, these rules would reduce mercury emissions from Ohio-based utilities by 86%. A public hearing on the proposed rules was held on January 29, 2007 and written public comments were due by January 27, 2007. Ohio EPA has not yet acted upon these rules.

8. Nuisance “Odor” Rule and Malfunction Rule
   (OAC 3745-15)
   As part of the 5-year rule review requirement, Ohio EPA proposed various revisions to the “General Provisions on Air Pollution Control” rules. This rule package included a revision to the rule requiring the reporting of malfunctions and a clarification that public nuisance conditions consisting of odors caused solely by the emissions of odorous substances are not subject to Ohio EPA’s rules and jurisdiction. These rules were TBR’ed (pulled from the JCARR process for reconsideration and refiling at a later date) on January 9, 2007 shortly after Governor Strickland took office. Ohio EPA extended the public comment period to February 8, 2007. OMA along with other business trade groups submitted comments on the proposed revisions to the malfunction reporting rule on February 8, 2007. Ohio EPA has not yet acted upon these rules.

Ohio EPA Water and Solid Waste Rules

1. Ohio EPA Proposed Industrial Waste Rules
   (OAC Chapter 3745-525)
   On August 1, 2006, Ohio EPA unveiled a new strategy for the regulation of industrial waste, including new proposed rules for the siting and design of disposal facilities for such waste. A comprehensive summary of the proposed rules was included in previous OMA Counsel Reports. On November 1, 2006, OMA submitted comments opposing portions of the draft rule package. Ohio EPA has yet to act on the proposed rule package.

2. Proposed Beneficial Use Rules
   (OAC 3745-525-801 through -811)
   On November 8, 2006, Ohio EPA released its draft Beneficial Use Rules package. OMA submitted comments on the proposed rule package on February 6, 2007. OMA supports the general concept behind the rules, but some of the particular provisions either did not comport with real-world conditions or did not provide adequate options for the beneficial use of these industrial by-products. Ohio EPA has yet to act on this draft rule package.

3. Wastewater Discharge Permits
   (OAC 3745-33-07)
   This rule clarifies requirements for obtaining variances to wastewater discharge permits and revises mercury variance procedures. A public hearing was held on November 16, 2006, and the rule was adopted on December 22, 2006, effective on April 1, 2007.

4. Water Quality Trading Program
   (OAC Chapter 3745-5)
   Rules provide requirements of a voluntary water quality-trading program in Ohio. Program would allow a NPDES permit holder to meet its regulatory obligations by using pollutant reductions generated by another wastewater point source or nonpoint source. These rules were adopted on December 22, 2006 and became effective on January 1, 2007.

5. Draft General Isolated Wetland Permit Renewal
   (ORC 6111.021)
   On January 16, 2007, Ohio EPA issued a public notice of a draft renewal of the general permit that regulates the filling of isolated wetlands of the state.

   The draft general permit covers the filling of Category 1 and Category 2 isolated wetlands where the combined impacts for a proposed project are 0.5 acres or less. A public hearing on the draft permit will be held on March 1, 2007, and Ohio EPA will accept public comments on the draft permit until March 8, 2007.

Legislation

Mercury Product Ban (H.B. 443)
New legislation bans certain mercury-containing devices. Starting April 6, 2007, Ohio’s schools will not be permitted to buy mercury or mercury-added measuring devices for the classroom. On October 6, 2007, the sale and distribution of mercury-containing thermometers and novelty items will be prohibited in Ohio. Finally, on April 6, 2008, a ban on the sale and reinstallation of mercury-containing thermostats will go into effect. Exceptions include thermostats used in a manufacturing process to sense and control temperature.

Great Lakes Water Compact (SB 78)
SB 78 was introduced in the Senate to create a task force to study the need for the Great Lakes Water Compact and recommend whether or not Ohio should adopt the compact’s model language. The bill is currently in the Senate Energy and Environment Committee.

Global Warming Bill (not yet introduced)
The Democratic House caucus has announced that it will introduce legislation to limit emissions of greenhouse gases. OMA will closely monitor this legislation, if introduced.