State Innovation Grant  Program:  Indiana
                      Indiana Environmental Stewardship Program (2006 Competition)
led by state environmental agencies to test innovative approaches for
achieving better environmental results and improved efficiency in permitting
programs. Between 2002 and 2007, the State Innovation Grant program
competition awarded over six million dollars to support 35 state projects that
test permitting innovation for a variety of regulated entities including several
small business sectors. Asummary of the awards by year appears in the table
   State Innovation Grant Program Statistics, 2002-2007
Competition   Proposals  Proposals     Total Program
    Year      Submitted   Selected       Funding ($)
                                        $1.425 Million
                                        $1.479 Million
                                        $1.243 Million
                                        $1.611 Million
                                        $6.376 Million
"Innovation in Permitting" has been the theme of the State Innovation Grant
competition since its inception. In the last three competition cycles states
received awards for projects in the following three categories:
 The Environmental Results Program (ERP) is an innovative
  approach to improving environmental performance based on a system
  of the interlocking tools of compliance assistance, self-certification
  (sometimes, where permissible, in lieu of permitting), and
  statistically-based measurement to gauge the performance of an entire
  business sector. The program utilizes a multimedia approach to
  encourage small sources to achieve environmental compliance and
  pollution prevention. (See:
 Environmental Management System (EMS) is a system involving a
  continual cycle of planning, implementing, reviewing and improving the
  processes and actions that an organization undertakes to meet its
  business and environmental goals. EMSs provide organizations of all
  types with a structured system and approach for managing environmental
  and regulatory responsibilities to improve overall environmental
  performance and stewardship. (See:
 Performance Track is a partnership that recognizes top
  environmental performance among participating US facilities of all types,
  sizes, and complexity, both public and private.
NCEI has provided awards also for projects testing watershed-based permitting,
and for permit process streamlining in past competitions. For more information
on the history of the programs, including information on solicitations, state
proposals, and project awards, please see the EPA State Innovation Grants
    te at httD://www.eDa.aov/innovation/statearar
Project  Background:

 For several  years, the  Indiana Department of
 Environmental  Management's  (IDEM)  Office of
 Pollution Prevention & Technical Assistance (OPPTA)
 has offered environmental recognition programs and
 forums to Indiana businesses and industry to encourage
 beyond compliance activities to protect die environment.
 To further promote the  use  of environmental
 management systems within Indiana, IDEM developed
 a program to challenge business and industry to improve
 and offer incentives beyond simple recognition.

 ID EM's  OPPTA has received a US EPA State
 Innovation Grant to develop and implement the Indiana
 Environmental Stewardship Program.  The program
 rewards businesses and industry that have committed to
 continual improvement of their processes in order to
 decrease negative environmental impacts  through
 regulatory and recognition incentives. With funds from
 the EPA State Innovation  Grant, IDEM is developing
 its new state program as a stepping stone  to becoming a
 member in EPA's National Environmental Performance

 Project  Description

 IDEM is implementing the Indiana  Environmental
 Stewardship  Program (ESP) to  achieve  improved
 environmental compliance, focusing  on  outcomes
 (reduced emissions and higher compliance rates) over
 traditional regulatory outputs (number of inspections and
 permits issued) to measure performance.  The goals of
 the ESP are  to  promote  continuous environmental
 improvement and the use of environmental management
 systems; provide opportunities  through regulatory
 flexibility incentives  for members  to shift resources to
 continuous improvement activities; and focus limited state
 resources on those facilities not proactively  managing their
 environmental responsibilities.

 IDEM will provide specific regulatory flexibility to
 companies  that go beyond the  compliance  threshold
 established by regulations,  and who meet the complete
                          NATIONAL CENTER  FOR
                          ENVIRONMENTAL INNOVATION

 criteria of die ESP in order to help diem adopt innovative
 approaches.  A facility or corporation must meet diree
 criteria to participate in the ESP:

       establishment and maintenance of an Environmental
       Management System to integrate environmental
       improvement in their business operation;

       maintenance of a satisfactory compliance record;

       establishment of a tangible commitment to
       continuous environmental improvement.

 To encourage companies to participate in the ESP, IDEM
 will include within its incentives: permitting flexibility and
 expedited permit applications  and  renewals; reduced
 recordkeeping, reporting, and monitoring requirements;
 and reduced routine inspections at die facility. Three new
 rules are enacted in the Indiana Administrative Code,
 specifically to establish support  for these regulatory
 incentives from die Indiana Air Pollution Control Board,
 Indiana Water Pollution Control Board, and the Indiana
 Solid Waste Management Board.  The rules also outline
 die program requirements.

 The  work will take three years to complete.

Connection  to EPA's Goals

 This program directly supports EPA's Strategic Goals by
 (Goal 1) creating healthier outdoor air; (Goal 2) protecting
 water quality; (Goal 3) reducing adverse effects to land by
 reducing waste generation, increasing recycling, ensuring
 proper management of waste and petroleum products,
 and  reducing chemical risks  at facilities; and by (Goal 5)
 improving environmental performance through pollution
 prevention and innovations.
                        Project Contacts:
              For more specific information on the Indiana State
              Innovation Grant, please visit IDEM's ESP website at
              http:// / or contact
              one of the individuals below:
              Stacey Martindale
              Indiana Department of Environmental Management
              Office of Pollution Prevention & Technical Assistance
              100 North Senate Avenue
              Mail Code 64-00
              Indianapolis, IN 46204-2251
              (317) 233-5554

              Marilou Martin
              US Environmental Protection Agency  Region 5
              77 W Jackson Blvd.
              Chicago, IL 60604
              (312) 353-9660; FAX (312) 353-5374
              Martin. Marilou(5),ep

              Scott Fontenot
              U.S. Environmental Protection Agency
              Washington, DC 20460; MC (1807T)
              (202) 566-2236; FAX: (202) 566-2212

                       Program  Contact:

              Sherri Walker
              State Innovation Grant Program
              U.S. Environmental Protection Agency
              Washington, DC 20460 (MC1807T)
              (202)-566-2186; FAX (202) 566-2220
United States
Environmental Protection
Office of Policy,
Economics and Innovation
  November 2007