•RESEARCH TRIANGLE INSTITUTE
                                                     /RTi
                                            EPA/456/R-98/018  .-
  STATE EXPERIENCE INTEGRATING POLLUTION
             PREVENTION INTO PERMITS
                       Prepared for: • ;
                       US Envkonmentai Protection Agency
                       Office of Air Quality Planning and Standards
                       Leo Stander, Work Manager

                       Prepared by:
                       Research Triangle Institute
                       Melissa Malkin
                       Jesse Baskir
                       AartiSharma
' 3040 Cornwallis Road • Post Office Box .12
12194 • Research Triangle Park, North Carolina 27709-2194

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Disclaimer
   , repo                                          o
Planms and Standards. The report consists of a «* ™ °<          permitting programs and
       to incorporate ollution     ™™°^~f such a review. EPA is not
hoped that providing te tafornunon fnU h^°t^r^^mation will provide a starting

                                                                               —
 on pollution control.
 as to its usefulness

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                                                    ,.-.....' ............ . I-
Executive Summary             :
'
 1     Introduction ....-•• ............ -  • . •

 2     Integration of P2 into Permitting: Different Approaches ." V" v; :;: '•;;;•;.;;; "J.
            Permit Flexibility  . - .................. .' ' ' '                    8
                  Pre-Approved Changes ......... .....  ..... : ••••••:  •      ^ .

                  Emissions Caps . ...... ''.'''• ............ ;      , ,         12
            P2 Planning Incorporated Into Permit  ..•..: ....... ..... ........    14
            Evaluating a P2 Option for Permit Compliance .... ..... •  • • • -  • • • • • •  ^
            P2 Conditions as Part of Permit ....... • • "•:•''•'"' ........      18
   .    .     Providing P2 Information in Permit Application Process  ... .  - . • •  - - • • •  l»
 •      ,      Multi-Media Permits  . . .  -. .......  •••••••; ...... ''*....... 20
             Permits Fees Structures ..,...-••••••• ......... ......         21
             Accelerated Permit Review ..........-••••••      ' ' : • ' ' ' '     22
             Extended Compliance Time •••/.•••-' ' . ' : ' v  ' ' ' ' ...... '-.'.-. 22
             Alternative or Reduced Monitoring as Reward for P2   .. ....... -;      ^
             Use of Inspectors to Promote P2  . . . > ... , - • • ---- . • •  • • ...... . •    ^
             Incorporating P2 into the Underlying Rule ......... ...... ..,..-•

                                      '.   : -      i  t _._. ____ ...... ..... ... 26
  3    Conclusions .....-•-•••• ..... • • v ......
   .  .        .   .  .                                   _ _'_._._. .............  28
  Appendix A .........  ....••••••••••,•;•••
                                   .                          ..... .......  29
  References . .............. . . . • • ..............

                                                   '.;.-..'.;...  ...... ...... •  30
   Resources .....•••••••••••• ............

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Executive Summary
                                                 of 1990 (CAAA). the EPA is seeking
In its implementation of the Clean Air '^" CA^A™ Title v creates an Operating Permits
ways to.promote pollution Prev^°v  n  f lheir federal and state air requirements and

                   ^
                                                                                to
industry.

To explore how pollution
Office of Air Quality pl
regulations under the Act's
projects.  These projects explored how
integrated with permit issued to •
                                                   visions, established two pilot
                                                PV           ^ flexibility could
                                                         ami a semiconductor
                                                                    ways of
 the Title V program,
                        tasked
                                                         the effectiveness of these
• efforts.
  eor.         ,
  promising efforts identified here and elsewhere
  RTI found that many states
  activities to promote P2  *
  issuance to
                                                   ™V.t part, ,tematio qualitative
                                                       available. On the next page,

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(Summary of Efforts to Promote P2 in Permits


      p        examples of two ways ,o provide flexjbinty under aperm*
      1* allowing the facility to make changes as long as rt remains wrth.n an

      2"nV*e^«o make ^approved changes wi*out applying for a



 respond much more quickly to market conditons.









 I remain uncontrolled.





                      fntial ,uec«s of this type ofapproaoh.


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further
msight on the viability of P2-based approaches to.compliance.

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                                           ' coml*iance-
Reduced Fermi, Fees for Firms Using PoUudon
        reduced tees or alterna uvernoni oriag »
|l it, and thus are willing to use it.
                                                                           trough P2 !
                                                          B. Uce aU incentives,
                                                                    °f ii- andersand
     noting PoUution PreTention                         m.ita are cbservmg
 Use of permit taspectors , to *£*%£££. 5^51 P» » ««« '-h ™
 potential violations and can pomt these .out along        '       •      (0 avoid poBnnal.
 are likely to be able to get the attention of a.fa™'^^';nforcemellt personnel and when
 confusion about when inspectors are acting m fl"? « * «                should not
  Incorporating P2 into Underlying Rules
 I incorporation of P2 into underlying rules a
 leffective way for EPA to
                                                                      can be an
                                                                   facilities affect by
                                                                a rule sends a strong

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1    Introduction

             •   f h. Clean Air Act Amendments of 1990 (CAAA). the EPA is seeking
In its implementation of the Clean Air £^   ,^, Tide v creales an Operating Permits.
ways to promote pollution prevention, inc^     ^^ ^ ^^ ^ requirements and
program that requires facilities to have-ail o     ^ ^ operating permit. These permits do
compliance schedules ™^Qne doozmen ,               ^ ^ federal law^
not contain new ^^^'^^ ^'^^^^ law and
Permits are one ™ tne onmarv venires u^
to industry.

To explore how

 ,„ Suppon of
 the TO. V program. EPA tasta* «"«S-« effectiveness of 4ese
 sue and local efforts to mtegrate P2 '»°J^<^e^ti3«wo* for understaMing

                ^^
  To conduct this study, RT! gaUKred ,*---
  other individuals who had e^enence w,th« »*«™^ ^ J other ^e^, but did not
  tools being used to promote ^^"7                  References to farther sources
  attempt to idenflfy every midative that addressed P2 m^permBs     ^^ ^ UBramre M
  -•aff.-sstt

                        SCȣ^

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                             ^
EPA guidance on NSR reform wmcna^punion.snotbroadand
Z^oleSnS iSition of P. that-ay no, ,aH under the
NSR guidance (USEPA, 1994).




 approaches to integration were identified:
             Providing flexlbilrty to aHow facilities to make P2-orien,ed changes

                         K^

                         ^
             detelop a P2 plan as a condition of the permrt
                                 monitoring a. an incenflve, or P2
   characterize and analyze current efforts y sues           pj.^-jjao,, ta permits efforts
                           -               -          "
characterize and anayze curr                          pj.^-jjao,, ta permits efforts
to gathering infonnation, Kn-MM*M £ «J«- ^^"SSh^- ^f the effon in
had been followd by qualianveor V**^?"?^ „ ^ irion in the permit, or in
     of quantity of pollutants reduced as a resuU of. te K   nam
     of whetfw removal °'f ^""^
                                                                   provided in

                                         6

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  -.. t ?4>c
              '.urge sample of experiences."
                   What is Pollution Prevention?



























programs.
 pilot project is going:

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Some Common Examples of P2
 - Through Modification of Process Equipment

P2 Through Good Operating Practices and Preventive Maintenance



 sources of potential stormwater contamination.                   .
 P2 Through Materiab Substitution


  facilities or the local publicly owned treatment works.
  Pollution Prevention Through Planning

  ^csfti-BpsassrsSS:
  md focus on reducing
                      one
  facilitate the P2 planning process (EPA 1992).

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2    Integration of P2 into Permitting: Different

     Approaches




rrg^ne^^^^
                                            . and SHOW, how
weil^stabHshed the effort is in the state.




2.1  Permit Flexibility













 to comply with New Source Review requirements.















  m how these limits are met.                 .



  2.1.1     Pre-Apprbved Changea
  One way to r.mov. , dWn«n«v. *<* * ^^

  a facility i» not r«|Mi~d to go through "«J>'0^>.
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possibly because to do so can require substanttal addmonai
                                     10

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SgS

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                                                                      Jj


                                                                      a
                                                                    II
fl  I



111
£» "*  !B

ri  =

1 —
- .-
'§ 11

JLJL|

"3 "S *
 S S •«
                                                                    .21
                                                                               oa


                                                                               's

                                                                               a
e
e


IS
                                                                           •-
                                                                                2 5
                                                                   i> i* 3
                                                                            f M §
                                                                            •9 -a s.w
                                                                     JI
i,

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updating its processes.




alternative operating •eenano. under rating   P •      ^^ ^ buMmg
 net prescribe them are likely to •P^I*11"2^^n%ttoVp.rnilti' because
 apply the ^^^S^^X or elensS. by site, and I,
 ^^5£^S^M.SW "Hfrs to anempt to d,ve,op such
 conditions for every permit

       Example, of Using Pre-Approv* Permit Changes to Create Flexibility
 Oregon

  VOCs if:
                                                 not changed nor

          .
              No new applicable requirement is triggered
                                   •14

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                                                          °f
approving the changes *»«*« *t.;r9qu,wd to file notice of the changes
SK r^rel^ro^a personal con—on,.

Tne,imita,ionthatpreapprov^^^
P2 plan provides <=°herenc8ube~"t bl a oaoer wercise but should be a tool

l^r^^^                            effSCt " PrOVidin9
preferential regulatory treatment to P2 changes.

M?^ Jersey

Ne« Jersey ha, incon.0^. igy^'Zg
plants. Existing manual painting <*«**™X£ £^0* efficient and is a P2
robotic spray (which « S^'^'^nWes'n the state, and information

rrhu»t^^^^^^
 (New Jersey, 1994).

 Pacm«e,partcipa«n8^^^
  (S.Anden»on;NJDEP, personal communication).

  Minnesota

  SMandtnes^ofMinn-.*-.^
  reduce the disincentive, for P2 «"!» 3Nipwnn ijw.^ ^ ^ ^ ^^^
  Changes to production lines can  
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                              nteMs Squired toflle notice of the changes
                              . Persona, conjunction).
preferential regulatory treatment to P2 changes.

M?v>/ Jersey
 (New Jersey, 1994).







 (S.Anderson, NJDEP, personal communication).

 Minnesota








  modification.
                                    15

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2.1.2       Emissions Caps

          .   •   •  ««raDS are another .way that states have attempted to
Bubbles and emissions caps are ariose ^ y^ ^ ^ by ^.^ y^ Qn


create perm.t flex!^u, po,lutan1» from a whole facility rather than

total em'SSIon«°/t^l°U|rf source of the  pollutant in the facility. Th.s enables











                                 be used as a reward for facilities who

                                          lent of emission caps will be

                                          of calculating the total
 more amniui* MMW »•«-~—              _
 emissions from all sources under the cap.


       Examples of Bubbles or Emissions Caps




 Texas
  Minnesota
  The M.nn«ot* PoUuUonCon*o. Ag-"^

















                                     16

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Project' XL is approved (Project XL, 1.995).  ,f
22  P2 Planning Incorporated Into Permit
A potion p.ven.ion
 rationale behind requiring Pnnm                      firms wil, become
 ^X^^™!.
 ike those opportunities that are feasible.
           component
 progress toward the goals of that plan.
  however, differ from state planning laws in that
        submitted to th« stat».
        3. PZpl.nn^ ^rem^^rpora

        chlorides. P2 planning i^uireme^n^m^na     iwith aj
                                 "^
                                   17

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     media transfer of pollutants

The

 evaluate that avenue.                                        t
 Mandatory P2 planning "'""^"^^T^lf*.^"^ rafter
 advantage of drawing » fMlll*'"^""caaon that reliei on pollution
 than after they have drawn iup a ^^^^Vm creates potential
 psrcr^^^^
 in such planning (Anderson and Herb, 1994).
      Examples off Use off P2 Wans in Permit Context
  Qreqon           .
  The draft Intel pem.it P«v.d~ that «£%™%«t£ rpeT^u^
  shall create a pollon P"vntior,          ™; rgiven impetus in
  to the poHution
                                             ^

   the permit application process moves  »     n  rtans on on. ,., o,
                                18

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NJDEP personal communication).       •                            ,



Other permits in ™^^2^^^^£Z£

*^^mi"^r" aTd^oToperarg practices. The perminee, are
"-»"•-	   ~ T~  --« and qood operating practices, me Hwin..»««- -.-

based on mam*enf?clf":i the state quarterly showing that they have taken







communication).



Wisconsin

             •  wa*«r Pollution Discharge Elimination permits contain
 Some Wisconsin Water Po luflon "ISC"«r«*' _  attaraet chloride discharges.
 requirements that the facility develop P2 plans ^r|^°f^OTW permits
 WONR, personal communication).

 23   Evaluating a P2 Option for Petmit Compliance























   certain P2 measures fbr compliahco.


                 «. b. inten»tedn .nfb.m.Son
                                   19

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use P2 to qua,ify as a
cannot be prescribed as
through the fuH Title V
question about whether
limits as a precondition to
v. EPA).
 where a P2 measure
                        will
                                           hough there is some
                                       £ federal enforceability of
                                       H        ^^ .( may rema|n

                                    ~s begin widely incorporating
                                       (Na^na, Mining Association e, ai.
                                                        ,o emit is
 process is complex and can be time

      Example* of Evaluation of a P2 Option for Compllanc.
  prevention approach. Once they
      develop ,
  \y??t Virginia

     ,, Virginia', 8M.
                                          abmanagemen, op«on for air
                                        1994,.
                                                                   o«
   communication).
   ,n
                                     20

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1UC71 I LI 11^« | «-tw« • «  i~
approaches (WRITAR, 1994).



    _Jej§£¥
New air reflations in New Jersey ^SSSS^
consider pollution control options. The P~°"%°°ugW under the state's pre-
also instituted in the permit j8*"0^; .  it naa on|y been in effect since
pilot multimedia permit efforts. I nai Per"!lv_    . '    J8 ]t too eariy to tell if
          1Q9A and the4ir regulations since i»»"• •••      u«is«»*«»« that it'
          1984'anau!    ^_.^5_..-i., KiAwArthAiAs*. the state believes that it
 24   P2 Conditions as Part of Permit
 ~P2 as a permit condition:

                                         measures that a facility is
                                              burners to ensure efficient
       combustion).
        would b« iricorporatecrrntflr a permit




        thi».
   often
   effort and every company »  V          „      ade mow flexible-by
                                     21

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low costs.3
                     «r,tions are offered in a regulation, then enforcement of
Where P2 comphanc^^eo^ita[s%Op7rroepriate, si9nce the company has already


 remove *e over-reliance on end-of-pipe treatment
       Examples of Including P2 Conditions in a Permit
     Jersey
 for the industry (New Jersey, 1994).
 Indiana
                                manufacturer of electronic circuitry in
                                ion in the form of a required phase-out of
  Minnesota,
                           ;ifa.P2L
                                                        investigate these options
                               Ct\|*il*H \f± * *•? »•• •  -	  w
   without incentives or requirements.
                                      '22-

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25  providing P2 information in Permit Application Process
 effective.
 page 25.
       Examples of Provision of P2 Information in Permit Application Process
  Indiana

                                  23

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responders ware referred ,o state ""^^Ito •"* <°
appropriate. Since these "f "^^"'^ Ltion planning. Indiana is
tell whether firms are f '"3 " '" '^ePp2™easures that might provide some
in the process of deve oping* fctewjd e PZ TI             ^ ^ ^ difficu,t
insight into how ^effective sue* ^^^^e^, their specific programs
%£££X$^** T.Ne,«ner,,OEM, persona,
communications).

2.6   Multi-Media Permits

current*, most environmen*^^^^^
basis. The use of ™*^*'5SSJ ^ulments «i» a single standard for

                          ^^
                                       "
 to leverage P2 in permits.

 Fo? insunce, ir, '^•"^£^SS±Z^
 writer* can more easily point °"*e""* "JJJ for one m^ia. Including a
 media impacts of control ?'f "^^mt. «I^,aehu.etts ha. done) can
 pollution P««n«°" '"S^'Sll" S|p «« "al communication). On the
      ~^
                                                     -^— *
  particularly for solid waste and air.

  Th. multimedia p.rmi« l^t^SSt.^^
  new concept, *«• swm. to     »»"ri",9^ Ov.r the long term. The
   subjecting th.m to .                     non, or two
                                             and w.,Kne»« o, such an
   approach.
                                   24

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     Examples of Multimedia Permits


New Jersey
                   H nne facility-wide permit under its pilot multimedia
 DEP, personal communication)

 MewYbrk
 (J.Higgins, NYOEC, personal communication).
 nelaware

  2.7   Permits Fees Structures
  a<*vm« .Fim». ;u™^^j» ; ^                    n Utewi... many
  pollutants, so th«r» » a Duiit-in mc*""*     unH«P the Title V program;
  states ar. •xptering th0 use ^fl^^^^"^^^^^
  these WQU» allow certain «"«*^^^ ^eir Operations This too
   permit appHeatfon process, and *?&'•£*" below tiTe threshold of the
   thresholds are relatively inexpensive.

         Examples of Use of Permits Fee Structures to Promo^

                        "',.'.     -.'25         .   ".

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Wisconsin

                  Mf,,iiv used reduced fees in combination with reduced
Wisconsin has successfully use
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    Examples of Accelerated Permit Review

California
             « in California (Project MERIT) offered expedited review
An EPA-state program mCahforn^
persona! communication).
Illinois
tne S*«e o« HHnoi, ^^n^aU^


 informal proeew i.                      on Prevention Office,
 affi»'*£»iwa^ffl«i
 and informally request that this permit oe e^_       ^^ from the
  communication).
  2.9  Extended Compliance Time
  P2 rather than pollution control.
                           27

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     examples
              of Offering Extended Compliance Time for P2 Projects
Wisconsin
Wisconsin water quality permit applicants
schedule to enable them to imptomem J£ —    jnto ^ comp|iance
situation in which he was able to build' a£ °™r* *ory ,imits. if the extra time
schedule so that a firm could' "»•£  been jmpossjb,e for that firm to come
                lg P2TD Hantz, Wl DNR, personal communication).
Region^

EPA Region 9's small
compliance extension
                                  how successful *is effort was in
                                                            a
 incentive.

 Taxis.
                                         ^^
 communication).     •

 2.10  Alternative or Reduced Monitoring as Reward for P2

 Th. sutss and *. EPA h* • I.. .
 can offer to firms in sxehano. for
 compliance or to psrform som.
 the flrm th. opportunity  *»•
                                                  possibility is to offer
                                                  PO     ^ ^^^

                                                       Sresholds, *«,
   Where P2 .ffo  ar.


                                   28

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regulated community understand it.
      Examples of Reduced Monitoring   :;

Wisconsin







 communication).

 "?fttl Carolina














   communication).             .     .                           .

   Indiana                  .
              non-Control Technology Guid..in. RACT .landard tor VOCa h»
The Indiana
                  .      '    '     29

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,„ ™.w .ACT
 U.S^EPA
 been implemented thus far (U.S. EPA,
 environmental record (U.S. EPA, 1995e).
  211  Use of Inspectors to Promote P2
  in other ways.
   the improverftents.
                                  30

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collecting legal evidence regarding regulatory compliance Use of permit


incorrectly Perce,vec »             ™
staff must have industrial process knowledge (Helbrecnt, 1994).
EPA Reaion 1 summarized its positions on regulatory and npnregulatory
Caches to promoting P2 In a 1993 white paper. The Region emphas.zed
      Examples of Using Inspectors to Promote P2
     SPARaq'on9         "
EPA, personal communication).
Indiana                                                             -
                                                         d have bee"
  .ndiana inspectors ^tatribut. P2 Information during in«P^

  communication).
  2.12  Ineorporating P2 into the Underlying Rule
                y of incorporating P2 into permits is to »«»JP^« toltD'1h0
   unr. Thte can be accomplished either by ?™™*W****OT
                                   31

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      Examples of Incorporating P2 into Rules




Indiana
substitution to reduca tar.                  0 Th<> regjon

                   c                                             dto
            these facilities.
  personal communication).
   communication).     . .                                              .
                                     32

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approximately ten rules since the program began.
      Conclusions
 integration efforB i «^ hrt *1^^on ,„£„,„ still at the pilot stage,
 ^^^^^
 efforts are not followed up with •y^nrte ^^^^ rely on anecdotal


 context in which it is applied.


  permits:
       .     The mechanism of thsin^^onafforti^
             state's underlying P2 mandate and philosophy
        .     Reaulator* vwrked wfth other stakeholders (e.g., industry, the
             E?ARe1ionTto solve potentially contentious issues
        ,    Theregulators worked with regulated facilWes early in the
             process
                                    33

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Appendix A
Contact Information for P2 Integration Efforts
Deborah Gallagher, former* of Massachusetts Department of Environment^
      Protection,  .                                                   .
      (617)933-2800
StBve Anderson, New Jersey Department of Environmental Protection, (609,
777-0518
 Rio* Atkinson, We,t Virginia Air PoHution Cont». Agency, (304) 558-4022
 Andrea Farre... Delaware Department o« Natura, Resources and Environment,
      Conservation, (302) 739-3822
 Doug Fine, Massachusetts Department of Environment Proton, (617)
 574-6862
 David Hantz, Wisconsin Department of Natura. Resources, (608) 267-7664
 John Higgins, New York Department of Environment* Conservation, (518,
 457-7688
  Susana Hiidebrand, Texa. Natural Re~urce Cor*.rvation Commission, (512)
  239-1300
  Roger Larson, Wl.con.in Department of Natura. Resources, ,608,267-7664
  Peter Lloyd, North Carolina Department of Environment* Management, (919,
  733-3340
  LeifMagnuson, U.S. EPA Reflipn 9, (415) 744-2153
  Janet McC**, Indian. D.p.rtm.nt of Environmanta. Management, (317) 233-
  5694  .
   RobertMcCarren, Mlnn^ot. Pollution Control Agency, (612) 296-7324
   Louis MiRolaicryK, New J.».y D^rtmen, of Environmental Proton. (609,
   292-9258
                                    34

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Thomas Neltner, Indiana Department of Environmental Management, (317)
232-8172      .                   :                 '      ,
Susie Peck, Massachusetts Department of Environmental Protection, (617)
292-5870
Dan Reich, EPA  Region 9, (415) 744-1343
Nikki Roy, U.S. EPA, (202) 260-8636
Tom Wallin, Illinois Office of Pollution Prevention, (217) 782-8700
George Yun, Oregon Department of Environmental Quality, (503) 229-6093

 References
                J Herb  "Building Pollution Prevention into Facilitywide
                ^^
 Helbrecht,  L, "Integrating Pollution Prevention and^ompHance: How Far Can
 We Gb?," Pollution Prevention Review, Summer 1994, pp. 331-336.

 Inside EPA, "Interview with Mary Nichols," July 7,1995, p.5.

 Minn^^^
       Region V,St Paul, Minnesota, June 1994.
  National Mining Association et al. V.JEPA (9i5-100«).
  Neltner, T.G., "Integration of P2 into Environmental R^^f^f1
       Approach^wwntod at th« Pollution Prevention Roundtable
       Conference, Fall, 1994.                '




   NovembertDseembw 1994.
   Project XU Summaries of Curwnt Application, avaitabl. from Rob Melllnger,
                                        "'    '

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inistrative Supper, Contractor for Project XL, (703, 934-3941 ,
     ,CF Administrative
     1995.
     277-283.
New York, N.Y., April 29, 1993
Durham, N.C., July, 1994.
      6,ecWniou.letin Board, Durham, M.C.,

       1995b.
                                      36

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Resources
U S EPA Office of Research and Deve.opment "^Pollution Prevention
Guld^'EPW600/R-92/088, Washington, D.C., May, 1992.




September, 1993.
 (202) 260-4287.
 1994.
                                   37

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