£PA   £90-^95-005
                   REPORT BY EPA REGION 1 (NEW ENGLAND)
                                          on
      THE MERRIMACK PROJECT: A Regional Demonstration Project of the IP3
       The Merrimack Project, a pilot initiative funded under the EPA's Industrial  Pollution
 Prevention Project  (IP3), targeted intensive pollution prevention technical assistance jointly
 through  Massachusetts and New  Hampshire to industries on the Merrimack River,  a major
 interstate river.  The main purpose of the project was to demonstrate how two states can work
 together successfully to bring about pollution prevention in the industries along an interstate river.
 It pioneered the watershed approach to pollution prevention.  It helped set the stage of the joint
 EPA/Interstate Merrimack River Initiative.

       The IP3 awarded Massachusetts's Office  of Technical  Assistance (OTA) and New
 Hampshire's  Department of  Environmental  Services (DES)   $120,000 each  to   promote
 cooperatively the objectives of the project within the Merrimack River Basin.

 RESULTS

 1.     As an interstate effort, the project tested and demonstrated that two states, even with
 technical assistance programs that are very different institutionally, can successfully work
 together to provide technical assistance to industries along a commonly shared river.

       In Massachusetts, technical assistance was well  established in an Office of Technical
 Assistance  separate from the  compliance functions  of  the Department of Environmental
 Protection.  In contrast, in New Hampshire technical assistance would fall under the regulatory
 umbrella of the state's Department  of Environmental Services (DES); and, at the start of the
 Merrimack Project, such  technical assistance was only starting to evolve  in the Waste  Division
 while only being considered in the Water Supply and Pollution Control Division.  At the time,
 the New Hampshire programs shared (with much of EPA) the conventional reservations about
 compromising compliance functions with  a technical assistance program, about  lack  of staff
 capabilities to provide technical assistance, about liability, and about competing with consultants.

       Through the Merrimack Project, New Hampshire drew extensively on Massachusetts's
 experience in developing  its approach.  Both Massachusetts and New Hampshire exchanged visits
 to their respective state offices. The Massachusetts leader and staff for the IP3 Merrimack Project
 shared the experience they gained in developing a separate and multi-media technical assistance
 program.  New Hampshire then established a multi-media statewide Pollution Prevention Task
 Force, chaired by the DES's Deputy Commissioner and the Commissioner's Water Resources
 Coordinator and staffed by the IPS Merrimack  Project coordinator for New Hampshire.

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       As a result of the Merrimack Project, the State of New Hampshire has established a
technical assistance program known as New Hampshire's Pollution Prevention Program (NHPPP).
NHPPP is under the regulatory umbrella of the DES. Prior to the Merrimack Project, the State
of New Hampshire did not have any formal technical assistance program providing or promoting
toxics use reduction or pollution prevention.

       As the Merrimack Project gained popularity, the NHPPP was increasingly being asked to
perform on-site assessments,  organize workshops, train staff,  and respond to  informational
requests. This presented a resources and organizational challenge for DES.  During this period,
DES projected  a professional  and positive image throughout the State regarding the program,
while Massachusetts OTA and EPA provided public relations support. NHPPP used Total Quality
Management tools to overcome the  resource and organizational barriers.

       Within two  years,  NHPPP  had become  recognized throughout  New  England as an
organization possessing the  ability to identify and characterize pollution prevention opportunities.
It has successfully established a pollution prevention clearinghouse which includes  information
on  new and innovative technologies, products,  fact  sheets, and case studies.   It has  also
successfully developed and  instituted procedures for setting priorities and disseminating requests
and information.

       Despite  New Hampshire's initial misgivings  about embarking on pollution prevention
technical assistance,  a positive experience gradually evolved.   Both states and those in EPA
involved in or exposed  to the project became convinced of the benefits of an  active pollution
prevention approach.

       The two states successfully  worked together to conduct jointly many  very successful
workshops and  other events, involving the industries in both states along the Merrimack River.

2.      The Merrimack Project also demonstrated  that a technical assistance program can
be successfully structured and implemented under either a regulatory  or  non-regulatory
organization.

       The project demonstrated over a three-year learning period that  public agencies with
environmental results as their "bottom  line"  can deploy technical assistance  in their  official
capacity in various forms and under the divergent institutional arrangements in Massachusetts and
New Hampshire without jeopardizing industry confidentiality or  compromising their ultimate
compliance and enforcement responsibilities.

       In the case of Massachusetts, an already established technical assistance  program, within
a non-regulatory  organization (OTA),  continued to demonstrate success  in  bringing about
pollution prevention with industry.   In the case of New Hampshire,  the  Merrimack Project
illustrated how  a regulatory organization can provide  "grass roots" technical  assistance to its
industries without jeopardizing potential enforcement actions.

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       The State of New Hampshire successfully demonstrated the ability to integrate pollution
prevention into traditional enforcement-related activities, e.g., compliance inspection, enforcement
actions, permit writing.

       Companies have informed EPA that they were satisfied with the assistance they received
and that, even though (in the case of New Hampshire) the technical assistance service was not
segregated from the regulatory program, they believe that the information collected will be held
confidential.

3.     The Merrimack Project also demonstrated the value of publicizing the potential for
pollution prevention opportunities.

       The project conducted over 20 major workshops  and over 100 public events.

       The workshops were targeted to a variety of manufacturing operations, e.g., electroplating,
metal finishing, machine shops, printed circuit board manufacturing and assembly, etc.  Workshop
participation was overwhelming and, as the project gained publicity, participation expanded even
more.  Massachusetts OTA, for example, found itself visiting and providing assistance to many
more POTWs, because  POTW officials valued the opportunity to increase the communities'
public awareness and understanding  of the local  treatment plant.   Manufacturing facilities
appreciated participating in the workshops targeted to them because they received information on
the economical incentives of pollution prevention.  Workshops were also a conduit  for the
industrial community to express concerns or frustrations.

       As the bottom line,  Massachusetts and New  Hampshire  conducted over 200 on-site
assessments of pollution  prevention opportunities at industrial facilities.  Of these,  at least 27
percent already have implemented or are expected to implement pollution prevention measures.

       Some industrial facilities have accomplished  "zero  discharge"  by using  innovative
technologies  such as electrolytic recovery or ion exchange.  These processes have made it
possible for the facilities to achieve a "closed-loop" wastewater system.

       Furthermore, most of the original POTWs visited by  Massachusetts  OTA and New
Hampshire NHPPP have already incorporated various pollution prevention activities into their
Industrial Pretreatment Programs. (The Merrimack Project revealed that, while corporations and
local municipalities favor having state  or federal agencies promote pollution prevention technical
assistance, corporations favor having local  POTWs provide  the assistance where  possible ~
probably because they feel that there  is more of a common interest and bond between the two
parties because they are part of the same local  community.) Some POTWs continue to sponsor
workshops, while others  integrate pollution  prevention directly into program  elements such  as
permits or enforcement actions.

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4.     The Merrimack Project achieved both cost savings to industry and environmental
improvement to the Merrimack River.

       The project has resulted already in the elimination of over 1.7 million pounds of toxic
substances, with  a savings of over $1.9 million to  industry.  The project highlights and case
studies presented in a report titled THE MERRIMACK PROJECT — a report jointly written by
Massachusetts and New Hampshire - detail these cost savings and environmental improvements.

5.     Positive experiences with  the project's  workshops,  technical assistance,  kept-
confidences ~  combined with a desire to continue an intensified level of communication on
an industry-wide basis — led involved Merrimack industries to work with  the two states to
form  a Merrimack Business Environmental Network  (MBEN).   In  turn,  MBEN has
mushroomed into a Northeast Business Environmental Network (NBEN).

       Committed to seek and implement solutions that promote pollution prevention through
improved management and technology while enhancing the economic viability of the community,
MBEN initially grew to over 35  corporate members. Members have met monthly to exchange
pollution prevention ideas; they even organized a day-long conference at Maudslay State Park on
the banks of the Merrimack River to share industry, state, and federal experience  and insights.

       The concept of MBEN captured the attention of industries throughout New England. The
concept has subsequently expanded from the Merrimack River network to a network throughout
the Northeast United States.  The Network has  now been chartered into a Northeast Business
Environmental Network (NBEN), with chapters like MBEN to be organized on a watershed basis.

6.     The Merrimack Project also  showed how  Total Quality  Management  (TQM)
techniques can be used  by a state  agency as a tool  in  creating a pollution prevention
program and in implementing  pollution  prevention technical assistance to industry.

       The New Hampshire DES used TQM while constructing the NHPPP. DES evaluated
program commitments against existing program resources.  The procedure involved an investment
and disinvestment process using TQM.  As a result, resources and job functions  were shifted
within certain programs in order to create the NHPPP.

IMPLICATIONS:  EPA Region 1  (New England)^ Views/Perspective

       The Merrimack Project has demonstrated  that environmental compliance can be obtained
either by using technical assistance independently or in conjunction with traditional enforcement
related activities.  The project has verified that technical assistance is an effective and economical
device  for achieving and  encouraging environmental compliance.

       The project has  highlighted that  technical  assistance  should  never necessitate  the
suspension of enforcement, or disinvestment in enforcement.  Enforcement can be used as a tool

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to encourage  industrial  participation  in technical  assistance programs,  i.e.,  Supplemental
Environmental  Projects.  Pollution prevention and technical assistance programs should only
complement and provide support in an enforcement case orientated system. Technical assistance
programs should not assume a lead role in resolving compliance issues.  Without the threat of
legal  recourse,  technical assistance programs could, among other things, delay compliance,
threaten the integrity of an enforcement program, and potentially provide an  economic benefit
to the violator.

       Over the past three years EPA Region 1 (New England), at all levels, has and continues
to undergo tremendous change and reorganization. Managers and staff have become increasingly
aware and receptive to the concepts of providing pollution prevention and technical assistance
within their respective programs, but not at the expense of delaying compliance or jeopardizing
the integrity of enforcement.

       Gradually,  the  Merrimack Project produced (at the federal,  state, and local levels)
numerous examples of "how-to  methods" of integrating  pollution  prevention  and  technical
assistance programs into enforcement related  activities taking into  consideration  management's
concerns.  The project, among other things, has produced a network  of valuable  technical
assistance resources that assist management and staff.  As a result,  the project has increased the
ability of each and every person at EPA Region 1  (New England) to access this  information more
readily than ever.

       The Merrimack Project experience has overcome the deep-seated mindset that EPA, as
well as state environmental agencies, must serve solely as a regulatory agency, taking a "hands
off approach to offering technical assistance.  This mindset had discouraged EPA from actively
promoting pollution prevention and had made EPA reluctant to raise questions about pollution
prevention opportunities for process change and  materials substitution.

       The success and acceptance brought  by the  Merrimack Project  is a  result of several
conditions adhered to by all parties:

       1)    Pollution prevention and technical assistance shall serve as a tool to achieve and
             maintain continued compliance; in no  way will it substitute for compliance and
             enforcement actions;

       2)    Pollution prevention and technical assistance  shall not be supported/funded at the
             expense of disinvesting in compliance  or enforcement  activities/resources;

       3)    Pollution prevention  and technical assistance shall serve as a  tool to assist  the
             industrial community in achieving more stringent environmental  levels,  not
             circumvent lower levels;

       4)    Pollution prevention and technical assistance  shall support enforcement programs
             by encouraging  and promoting process and/or materials substitution  in order to

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              achieve compliance.  It is possible that the permittee will be allowed to delay
              enforcement-related schedules only on an ad hoc basis where pollution prevention
              shows promise of achieving enhanced environmental benefits  and only as long as
              good-faith efforts are demonstrated.  It  is critically important to  set forth clearly
              the environmental objectives in the negotiation of compliance schedules.

       5)     Pollution prevention and technical assistance shall promote relations and encourage
              communication among  the regulatory agencies, industry, and the public.

       In conclusion, the Merrimack Project resolved many myths on whether or not a regulatory
organization could successfully implement pollution prevention. Through the Merrimack Project,
it has become more apparent to the regulatory community that environmental compliance can be
obtained using pollution prevention technical assistance  independently or in conjunction with
traditional enforcement actions.

       The project has also verified that pollution prevention technical assistance is an effective
tool for encouraging and achieving environmental compliance.  Results have illustrated industry's
need for pollution prevention technical assistance while attempting to achieve compliance.  The
project also provides us in EPA  Region 1 (New England) with  additional insight  on various
techniques that we might consider when promoting or implementing pollution  prevention.

NEXT STEPS FOR EPA REGION  1 (NEW ENGLAND)

       EPA Region 1 (New England) — hereafter referred to as "EPA - New  England" in this
report — should follow up on the  Merrimack Project experience, as follows:

1.      Support pollution prevention technical assistance — both separate from and in conjunction
       with water quality evaluations, permit writing/negotiations, and compliance.  Tailor the
       technical assistance, drawing upon various models, to best fit the situation by considering
       the following model options:

                    technical  assistance  separated completely  from compliance/enforcement
                    (e.g., MA OTA  & MA DEP);

                    preliminary   consultation  and  technical  assistance  followed  up  by
                    inspections, compliance and enforcement, with increasing scale of penalties
                    as necessary (e.g., OSHA Consultation Program);

                    inspectors trained to ask questions leading toward pollution prevention and
                    to direct facility to sources of pollution prevention technical assistance;

                    inspectors trained to refer facility to sources of pollution prevention when
                    they notice  violations or opportunities for pollution prevention;

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                     enforcers seek voluntary agreement for facility to research, evaluate, and
                     implement pollution prevention measures;

                     enforcers require -- through the inspection, permitting, and enforcement
                     process  ~ that the facility  adopt and implement pollution  prevention
                     measures.

2.     Strengthen the performance measures for compliance and enforcement activities to include
       not only the numbers of permits, inspections, and enforcement actions but also measures
       of environmental results.

3.     Undertake  EPA  - New England's  proposed pollution  prevention  FY95  Intermedia
       Initiative,  "Intermedia Environmental Assistance." drawing upon the Merrimack Project
       experience and recommendations.

4.     Undertake  EPA  -  New England's proposed  pollution prevention  FY95  Initiative,
       "Integrating  Pollution Prevention into Multi-media Permitting."

5.     Undertake  EPA  -  New England's proposed  pollution prevention  FY95  Initiative,
       "Technical Assistance to a Pretreatment Community," building on the Merrimack Project's
       recommendations to involve POTWs actively in pollution prevention technical assistance.

6.     Support the development of local  industrial discharge  limits  that  are based on best
       available technology which recognizes and credits pollution prevention  technology.

7.     Support and  involve POTWs in pollution prevention technical assistance by assisting them
       in negotiating implementation schedules with their respective industrial  users.

8.     Provide incentives to stimulate development and application of new technology to achieve
       pollution prevention and more cost effective measures to meet limits.

9.     Support provisions in Clean Water Act Reauthorization to  incorporate more pollution
       prevention in permitting.   In  the  meantime, take  advantage of every opportunity to
       integrate pollution prevention into permitting, e.g., implementation measures, compliance
       schedules,  outreach, and reporting.

10.     Develop integrated data management systems to assist EPA, states, POTWs, and industries
       to fine tune pollution prevention measures and implementation schedules. Such a system
       would make it possible to  target pollution  prevention technical assistance to the  most
       critical  industrial facilities.  (The Merrimack Project revealed that such a  data system was
       lacking and would be helpful  if it  existed.)

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11.    The New England Environmental Assistance Team

             To implement pollution prevention assistance, EPA - New England founded the
             New England Environmental Assistance Team (NEEAT) early in FY94 as the core
             of EPA - New England's new focus on assistance to the regulated community.
             In establishing  this  function, EPA -  New England  is seeking to  improve
             compliance rates and pollution prevention implementation through assisting  and
             collaborating with industry rather than enforcement whenever possible — the
             philosophy behind the Merrimack Project.

             NEEAT itself will not perform on-site assessments (the primary outreach tool in
             the Merrimack Project) in the foreseeable future, but will use other mechanisms
             to reach, inform, and serve the regulated community: a toll-free assistance hotline,
             workshops, guidance manuals, technology demonstrations, compliance checklists,
             etc.  NEEAT is focusing on three industry sectors (metal finishing, printing,  and
             electronics) and municipalities.  Much  of its efforts within these sectors will be
             focused on resources of concern, like the Merrimack.

             EPA  -  New England  is also  funding  its  partner  state pollution prevention
             assistance programs —  Maine's and New Hampshire's included — through the
             Pollution Prevention Incentives for States  grant program.  NEEAT has met with
             the  board of the Northeast  Business Environmental Network (or NBEN, the
             successor to the Merrimack-based group MBEN) to discuss collaboration between
             NEEAT and NBEN. and will be following with joint outreach.

             In sum, the Merrimack Project has provided important experience with assistance
             tools, partnerships, and geographic focus that now forms  EPA - New England's
             own assistance efforts.

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