&EPA
              United States
              Environmental Protection
              Agency
                 Office Of
                 Water
                 (WH-5415)
January 1993
Office of Wastewater
Enforcement Ancl

Strategic Plan

                         •': •£."{ 'C ;:;;e- 1 fid f>,-i try «•= ".'.'•.

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         OFFICE OF WASTEWATER ENFORCEMENT AND COMPLIANCE
                          STRATEGIC PLAN
FOREWORD

     In August of 1991, the Office of Wastewater Enforcement
and Compliance (OWEC), (created as a result of an overall
reorganization of the Environmental Protection Agency (EPA's)
Office of Water), began a process for identifying its vision for
the future of EPA's surface water control programs.  This
document is the result of that process, which also involved other
key stakeholders in our programs, including States and
municipalities.  We in OWEC do not consider this.to be a final
document in any way.  As program realities change over the coming
years and the priorities of the incoming administration are
incorporated, this document will certainly change to reflect
those shifts.  As such, we consider it to be a "living document"
to help guide us in the future rather than a detailed blueprint.

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                             TABLE OF CONTENTS


 Summary of OWEC Strategic and -Operation Principles


 Strategic Program Directions and Summary of Policy Goals


     Policy Goal 1 - Permitting Priorities


     Policy Goal 2 - Integrated Compliance


     Policy Goal 3 - Pollution Prevention


     Policy Goal 4 - Funding Leadership


     Policy Goal 5 - Effective Coordination w/Other Organizations


     Policy Goal 6 - Developing An Empowered Workplace


     Policy Goal 7 - State and Local Capacity Building


                                                    I

Detailed Description of Policy Goals


     Permitting Priorities

                                                    I

     Integrated Compliance


     Pollution Prevention                -         .[   .


     Funding Leadership


     Effective Coordination  w/Other  Organizations


     Developing an  Empowered Workforce
                                                    j

     State  and Local  Capacity Building
 1



 3


 3


 5


 6


 7


 8


 9



 10




 11


 11



 20


 26


 31


 36


40


43

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        SUMMARY OF OWEC STRATEGIC AND OPERATING PRINCIPLES

      Introduction

 Over the past several months OWEC, through its strategic planning
 and team building efforts, has been going through a process to
 identify a basic vision and mission statement, a series of
 strategic directions for its major programs, and a series of
 basic operating principles which would define how we do our
 business and how we relate to outside customers,  both within and
 outside.the Agency.


      OWEC Vision                               |

 OWEC'S Vision is 	"Clean Water	A Better Environment"

      OWEC Mission Statement

 OWEC's mission is restore,  maintain,  and  protect  the Nation's
 waters by reducing and preventing point source
 pollution.                                      !
     Basic  Operating Principles                 ,   '
                                   " "         '   !

 l.  consultation;  We will take  all reasonable  steps to develop
 and implement  our programs in  consultation with the appropriate
 customers.  This consultation  will result in a  sounder, more
 responsive  product that meets  both our needs and the needs of our
 customers.                                -•
        *              •            -              i -          . .   "
 2>  Flexibility and  Innovation;   in developing  and. implementing
 our programs at all  levels, we will take all necessary steps to
 define the  most flexible and innovative means of doing so, using
 a wide variety of tools, in ways  that meet the  intent and
 requirements of the  Clean Water Act. This way of doing business
 W1i ^    help ensure tnat consistent base programs are in place
 and that scarce resources at all  levels of government are most
 effectively used.

 3-  Risk Reduction and Pollution  Prevention;  To the maximum
 extent practicable,  we will implement our programs in ways that
 contribute  to the overall goals of maximizing risk reduction and
preventing  pollution. These principles will be integrated both
within and  across of our programs.              , '     •

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4.  Enforcement:  We will maintain a vigorous and effective
enforcement program, focusing on those violators in significant
noncompliance with Clean Water Act requirements. At the same
time, we will explore and use, as appropriate, innovative
approaches to dealing with the underlying causes of noncompliance
for those facilities not in significant noncompliance, with an
increased emphasis on minor facilities.

5.  Developing Effective Partnerships;  The expertise and
resources of all relevant outside parties will be used to both
educate the public on the importance of our programs, and to
assist us and our co-regulators in ensuring that these programs
are effectively implemented.

6.  Measures of Success;  We will develop and use effective
measures of success for our programs using the best scientific.
and technical information available. This mix will include, over
time, measures that document the true environmental benefits of
our programs supplemented, in the short term, by timely and
realistic programmatic measures.

7.  Total Quality Management;  We will make maximum use of Total
Quality principles and practices as we carry out our
responsibilities. TQM will not be a convenient slogan within
OWEC; rather it will be an integral part of our operating style.

8.  Developing an Empowered Workforce;  Finally, we will take
steps to ensure that the OWEC workforce at all levels feels
empowered to take innovative steps to do the job better, are
given all appropriate support to meet their short term and long
•term career goals, and are excited about working together at all
levels of the organization.                            s

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      Strategic Program Directions;             \
                                                !
 The following section summarizes.the basic directions embodied in
 each of the existing policy goals  in the OWEC Strategic Plan. It
 is not intended to summarize the entire policy goal,  but rather
 to capture the essential points of each one.
                                                i    =       •       •
                                                !'

 Policy Goal #1—Permitting Priorities

 o    our basic priority setting system will emphasize addressing
      first those problems presenting the greatest y-i «^k to the
      environment and maintaining a credible national  program
      which is responsive to statutory mandates.   The  intent is to
      ensure that,  as a starting point.  Regions and States have in
      place consistent and credible programs based on  clear
      guidance from Headquarters.   As additional resources become
      available,  additional activities will  be undertaken based on
      relative risk to the environment.

 0    High priority to be placed on issuing  enforceable permits to
      new facilities or activities  not vet addressed in the NPDES
      system (e.g.  CSOs.  stormwater.  and sludged and incorporating
      new water quality standards in NPD3S permits.  Generally,
      this will mean a shift of  emphasis and resources into wet
      weather  programs.
                                                j

 0    CSO permitting will be conducted consistent with thg
      Expanded Combined Sewer Overflow Policy.  This policy, which
      is  an extension of  the 1989 CSO  Strategy,  is  intended to
      provide  guidance to all relevant parties  on coordinating  the
      planning,  selection,  sizing,  and construction  of CSO
      controls.

 o     Permitting for  Phase  I  stormwater  sources win he conducted
      consistent with  the  strategy  previously  laid nut for the
      program.  Actions for  Phase II stormwater- Eirmrv^g ™i n be
      defined  based  on  information  from  a variety of sources
      including the Rensselaerville Project, the .general Federal
     Register Notice which  seeks comments on a number of  options
      for addressing these sources,  and  information gathered for
     the Reports to Congress required under Section 402  (p)(5).
     We will  also work closely with the nonpoint source program
      in  identifying cost-effective strategies for addressing
     Phase II sources.

o    The fundamental objective of the sludge program  is to help
     get effective State programs in place that promote, to the
     maximum extent practicable, the beneficial reuse of sludge.

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 Priority for sludae-permitting will be first targeted to
 sludge incinerators,  facilities posing a threat to human
 health and the environment,  and facilities where permits are
 necessary to support: or promote beneficial reuse.

 The sludge program will also make extensive use of education
 and outreach tools to inform the public of the importance of
 beneficial reuse and effective treatment to ensure high
 quality sludge.

 We will continue aggressive  implementation of the  National
 Pretreatment program,  placing significant emphasis on
 controls,  industrial,  commercial and domestic sources
 causing or contributing to problems at POTWs.   We  will  also
 incorporate comprehensive requirements in NPDES permits
 requiring  POTW program implementation and enforcement.
 Finally, we will establish new measures of performance  for
 local  pretreatment programs,  with greater emphasis on
 environmental measures and indicators.

 We will encourage watershed  initiatives where watershed
 management plans have  been developed,  including, increased
 attention  to minor permittees where they are a  significant
 cause  of a failure to  meet water quality objectives.
 Permitting authorities should require  automatic reopeners  in
 order  to synchronize permit  issuance with watershed
 permitting strategies.

 Finally, we  will  examine ways  to  facilitate permit issuance
through the  expanded use of various  innovative  wavs of
 "working smarter"  such as expanded use  of general permits,
 administrative continuance of  low risk permits, use of
 alternative  dispute resolution techniques  in permit appeals,
and possible  elimination of evidentiary hearings (appeals
would  instead be referred  to civil  court).

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Policy Goal #2— Integrated  Compliance Approach

o    We will continue to  implement  a  vigorous and  Affective
     enforcement program  which  is fully  consistent with the
     requirements of the  Clean  Water  Act.

o    Overall thrust of this goal is to maximizes  compliance
     through an integrated program  using all available  tools
     (enforcement, assistance,  training, education,  etc) based  on
     the nature of the noncompliance;

0    Mai or permittees in  SNC will continue to be addressed
     exclusively through  formal enforcement actions.  Majors  in
     RNC will continue to be addressed primarily thirough
     enforcement, but, based on an  examination of the underlying
     causes of these lesser violations,  other app-roaches mav  be
     employed to address these violations.

o    Similarly, we will undertake an extensive analysis of
     alternative wavs to address noncompliance by ™-inr»-
     permittees focusing on a wide variety of potential tools and
     a better understanding of the relative risk they pose.  In
     the meantime,  we will seek opportunities to focus compliance
     efforts on minors found to be a barrier to water quality in
     State or local watershed plans.
     Public outreach and generic training will
     used extensively, especially in emerging programs like
     stormwater and sludge to promote initial eompl ianr-*..

     OWEC will systematically explore options for making the
     enforcement process more efficient such as expedited penal t-.v
     orders f" traffic tickets") .  use of ADR technirjn*g_^»  -
     resolving penalty disputes,  use of inspect-, i rm strategies in
     sludge and stormwater designed to focus on the most
     environmentally significant facilities and create maximum
     deterrence.   We will also analyze the feasibility of
     promoting the use of compliance assurance systems by major
     industrial facilities or for an entire industry.

     Finally,  we will emphasize  the need for moi-e aggressive and
     efficient enforcement programs at the stat-.a  level and at the
     local level in the case of  pretreatment .   Specific
     objectives may include having all States with administrative
     penalty authority,  EPA and  States implementing policies
     which define criteria for EPA overfilling of State
     enforcement actions,  and having all States with written
     penalty policies generally  consistent with EPA policies.

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                                6

Policy Goal #3—Pollution Prevention

o    Basic intent is integrate pollution prevention into all
     appropriate OWEC activities in order to reduce pollutant
     loadings, conserve resources, and improve compliance.

o    Effective integration of pollution prevention will involve
     such things as ensuring that P2 approaches are considered to
     the maximum extent possible in developing effective NPDES
     permit limits and in POTW implementation of local
     pretreatment programs, negotiating administrative and
     •judicial settlements, and ensuring that MWPP programs
     designed to assist municipalities identify and address
     potential noncompliance problems early on are
     institutionalized in all States, and seeing that
     municipalities and industries are routinely performing P2
     self audits.

o    Other areas of our programs where pollution prevention will
     be a major factor include implementation of 106 and 104 (b)
     grants,  our Water Use Efficiency strategy, and our
     industrial stormwater permitting program.

o    Critical components of our outreach and education efforts
     include guidance and assistance from Regions and States for
     pollution prevention in both voluntary and regulatory
     actions,  including heavy emphasis on training for permit
     writers.   Other components include working with national
     organizations (e.g.  ASIWPCA and AMSA)  to foster and promote
     P2 approaches,  and encouraging POTWs to assume a leadership
     role in providing technical assistance to  industries,  small
     businesses,  and individuals.

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Policy Goal *4— Trader ship for QW Funding Tasn^g
  «

o
     theotru^                      to cofflEl(ite_^nd_close_out
     the Construction Grants program as efficiently anH  -
     expeditiously as possible                      -
                                              i

     Where appropriate,  private firms will be directly involved
     in providing capital for expanding and upgrading facilities
     previously funded through the CG and/or SRF programs
     To this end,  regulations,  policies.  *„* procedures win
     revised to remove barrJPrs to the implication of
     Private Partnerships <"P3s)7              ~ --

     Beyond this,  we will work  closely with spates to use
     as a  funding  source for not only wastewafrer construction^
     but also for  a variety of  other needs        ~~ -
     Lrr?nd'?!terflWa1'far n°nSerVatl'°nf  Poll nf ion prevention.  *nH
     wet lands  restoration .   This  will  be done under both current
     law and through  any legislative amendments that may be
     forthcoming.                                       T
             the role  of Pers°nnel  (HQ  and Regions)  in the CG
    a;£ S^ Programs will be examined to determine ways to more
    effectively integrate these  individuals over  the long  term
    into a wider variety of point source activities

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Policy Goal #5—Effective Coordination with Other Offices

o    A major component of this effort will to improve
     communication efforts among various programs at the Federal
     and State level in con-junction with regular outreach.  ,
     training, and indoctrination programs to ensure that all
     relevant staff can more effectively coordinate their
     activities.

o    Specific areas for improving coordination within OW include
     effluent guidelines and water quality criteria development.
     development and promotion of effective nonpoint source
     controls, to complement the Phase II stormwater program, and
     specific analytical tools such as Total Maximum Daily Loads
     fTMDLs).

o    This effort will also focus on other Federal agencies. For
     example, we will work closely with the Department of the
     Interior to address stormwater permitting issues related to
     abandoned mines.

o    Improved coordination will be extended to the regulated
     community as well, through such efforts as working to see
     that water gualitv criteria are developed based on the best
     possible scientific analysis and tools.

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Policy Goal  #6—Developing an  Empowered Workforce

o    Purpose of this goal  is to  take actions f.0 empower OWEC
     employees at all  levels to  take innovative actions to <*
     the lob done as effectively as  possible,  pT-oyjde the
     necessary tools to help employees  meet  the
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Policy Goal #7 — State and Local Capacity Building
     Ensure the
adequate.
     predictable resources to meet current and future
     requirements under the CWA.  This will be done initially
     through a detailed characterization of these needs in order
     to target our efforts to the greatest needs first.

     We will take steps to improve communications and outreach in
     order to inform and educate State and local governments on
     innovative approaches in the areas of technology transfer,
     funding approaches, elimination of institutional barriers to
     more efficient program implementation, and building public
     and political understanding of the environmental benefits
     derived from these programs.

     As we identify more specific implementation approaches, we
     will make a major effort to target more resources to them as
     well as incorporate their accomplishments into the budget
     and State grants processes, the relevant OWEC or OW
     accountability systems,  and future OWEC and OW strategic
     Planning deliberations.

     In addition. Regions will work with States to develop their
     own strategic plans, providing the flexibility necessary to
     meet the needs of each while providing sufficient
     accountability and consistency with the OWEC strategic
     directions described in this document.

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                                 11              !

               DETAILED DESCRIPTION OF  POLICY flQM.S

 POLICY GOAL #1:   ISSUE AND REISSUE ALL PERMITS IN A TIMELY MANNER
 BASED ON A PRIORITY SYSTEM ESTABLISHED TO PROTECT HUMAN HEALTH
 AND THE ENVIRONMENT AND USING ALL AVAILABLE CLEAN WATER ACT
 AUTHORITIES.

 ABSTRACT                                  .     j  •

 o    The purpose of this  policy goal  is to establish a set of
      permitting  priorities for the  next five years which
      consolidates and builds on accomplishments to date in the
      NPDES,  Sludge, and Pretreatment  programs,  while adapting to
      new statutory, regulatory,  and policy initiatives.   The
      overall thrust of the priority-setting system is to ensure
      that EPA, States,  and municipalities address first those
      problems presenting  the greatest risk to human  health and
      the environment while maintaining  a credible national
      program which is responsive to statutory mandates.
      Additional  activities would be undertaken  in the various
      program areas as resources  allow.

 o    This approach assumes no substantial increases  above present
      resource levels.  Thus,  Agency and State priorities may need
      to  be adjusted to accomplish the five year objectives   The
      approach also assumes some  near'term disruption of  existing
      program plans,  etc.  as permitting  authorities make  any
      necessary adjustments to existing  priori typesetting
      mechanisms;  particularly in the  area of newer national
      initiatives.

 o     Permitting priorities would be implemented through  approved~
      strategies developed  by  EPA and  State permitting  authorities
      which would  establish an appropriate balance between
      national and  local objectives.
                                                i
 o     Permitting priorities  will  be a  significant part  of the
      priority for the development of  technical guidance which
      would define the means for  appropriate permits.

 FIVE  YEAR PROGRAM OBJECTIVES
                                               . |
Development of National Priority-Setting Mechanic

o    Five year program .objectives associated with this policy
     goal entail using the existing major/minor classification
     system as a fundamental basis for priority setting.  This
     system would be complemented by the various! strategies
     associated with newer program initiatives  as well as by
     overall policy objectives to help identify high priority
     permits which will be the immediate focus  of attention for
     permitting authorities.

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                                12

o    In addition, as resources allow, NPDES and Pretreatment
     activities will be undertaken beyond those high priority
     activities identified above.  This additional level of
     activity will include both greater numbers of permits
     addressed as well additional conditions examined in
     connection with various permits.

Permitting Priorities by- Program Area

o    In general, a high priority will be placed on issuing
     permits to new facilities or facilities not yet addressed in
     the NPDES system (e.g., storm water, combined sewer
     overflows, and sludge).  In addition, a high priority will
     be assigned to incorporating newly developed water quality
     standards in NPDES permits.

o    The precise ordering of priorities among the various program
     areas will be based on an appropriate balance of national
     policy initiatives and Regional and State discretion.
     However, the following priority setting considerations will
     be reflected in permitting authority work plans for the
     respective program components.

o    Permit backlogs will be kept as low as possible in view of
     resource constraints.and priority activities.

Major NPDES Permitting

o    In general, NPDES permits will be issued in accordance with
     the following priority order:

     1)   Major or minor dischargers know to be causing water
          quality problems (i.e., WQS violations, fishing bans,
          etc.)

     2)   Major discharges on water quality-impacted receiving
          waters.

     3)   New sources.

     4)   Major priority sludge facilities.

     5)   Major facilities which do not have current assessments
          for in-stream aquatic toxicity and human health
          impacts.

     6)   Major discharges which require only technology-based
          requirements and where new or revised effluent
          limitations guidelines need to be reflected in these
          permits.

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                                13
                                                 have not been
     7)   Major discharges which require only technology-based
          requirements and for which guidelines;
          revised or recently issued.

Combined Sewer Overflows
     As a first priority,  ensure that the minimum  technology-
     based CSO controls  (set  forth  in EPA's August 1989  strategy)
     are reflected  in all  CSO permits as they aire  reissued;
     Include monitoring  requirements in permits where necessary
     to identify water quality impacts caused by these
     discharges.

     In addition, implement the expanded CSO policy which is
     designed to include requirements to correct water quality
     problems on a phased  basis — worst water quality problems
     addressed first and others addressed as resources allow.

     Additional controls will be implemented, a!s necessary,
     through permits or  enforcement orders with compliance
     schedules which consider size, scope, and cost of abatement
     based on technical  feasibility and economic impact.

     Technology assessments which allow Regions and States a
     basis for determining costs and technologies  feasible for
     individual permittees will be compiled and disseminated.
Storm Water
     Issuance of baseline general permits, by the regulatory
     deadlines, to cover the majority of dischargers of storm
     water associated with industrial activity will be a high
     priority.

          Data on water quality impacts will be geithered, where
          appropriate, during the first round of permitting for
          industrial sources; this information will be used to
          develop certain tailored general permits as necessary
          (by industrial category or by watershed) and individual
          permits in future rounds of storm water permitting as
          described in the four tier permitting strategy.

          Guidance on establishment of Pollution Prevention Plans
          and Best Management Practices to implement the general
          permits will be developed and provided to all
          permittees.                          j

          Technology assessments for structural arid non-
          structural BMPs will be compiled and disseminated in
          order to allow Regions,  States,  municipalities, and
          industries to have the economic  and technical knowledge
          to prevent pollution through storm water permits.

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                                14

o    Individual permits for municipal separate storm sewer
     systems will be developed in accordance with the regulatory
     deadlines based on information supplied in Part II
     applications.

o    Those dischargers from municipal separate storm' sewer
     systems covered under the moratorium _(i.e., serving a
     population of less than 100,000) would not be permitted,
     unless data exist to indicate that a permit is necessary to
     protect human health and the environment.  In these cases
     the authority of CWA Section 402(p)(2)(E) would be used to
     develop permits.

o    Actions for Phase II storm water sources will be defined
     based on information from a variety of sources including the
     Rensselaerville Project, the general Federal Register
     notice, which seeks comments on a number of options for
     addressing these sources, and information gathered for the
     Reports to Congress required under Section 402(p)(5).  These
     actions will also be closely coordinated with the nonpoint
     source program.

Sludge Permitting

o    The fundamental objectives of the sludge permitting program
     are to work with States to get quality programs in place
     that promote, to the maximum extent practicable, the •
     beneficial reuse of sludge.

o    In the first round of slxidge permitting, permitting
     authorities will rely, to the maximum extent possible, on
     the self-implementing aspects of the 503 technical
     standards.  Permits would be issued to those "treatment
     works treating domestic sewage" in one of the following high
     priority categories:

          Sludge incinerators (these facilities will likely need
          site-specific analyses in order to fully apply the
          Part 503 technical standards).

     -    Facilities designated by the permitting authority as
         .posing a threat to human health and/or the environment
          and which need to be fully evaluated in the context of
          permit development.

     -    Facilities for which a permit is deemed to be necessary
          in order to fully support or promote beneficial use and
          the use and disposal requirements under our national
          sludge regulations.

     -    Facilities whose NPDES permit comes up for reissuance
          during the normal permitting cycle.

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                                 15
                                  of "sludge-only" permits will be
                •          Permit cycle following promulgation of
      ^w^r^H1^1 standards to treatment worki treating domestic
      sewage that are not also NPDES permittees.  £5uch permittees
                          accordin9 to the permitting authority's
                                                »*
 o    Outreach to POTWs and the rest of the regulated community
      will be provided in order to foster understanding of the
      Part 503 regulations and to facilitate compliance with the
      seit-implementing and permitting requirements of the
      regulation.

 o    Implementation guidance and training for Regions,  States
      and POTWs will be provided in order to:  (1)  alJow a common
      understanding of the Part 503 regulations;  and (2)  allow
      municipalities the ability to meet the self-implementing
      requirements prior to obtaining a permit.  |

 °    ?°,,*-te  Kaxinun extent possible,  general  permits (in lieu of
      individual permits)  will be developed and issued to broad
      categories of "treatment works treating  domestic, sewage."

 o    Guidance will be provided to septate haulers  so that they
      can comply with the  regulations  in the absence of a permit.

                                •
 Minor NPDES  Permits

 o    Development  of  permits  for  minor  facilities will developed
     in  accordance with the  following  general priority order:

          New sources  (see national initiatives described  above)

          Minor sources determined to  have  a significant impact
          on  particular watersheds.
             Permits and other time-saving techniques (e.g
     possiblePermit issuance) wil1 be used to the maximum extent
Pretreatment

o
As permits are reissued for Pretreatment POTWS, approval
authorities should require control authorities to examine
and improve, as necessary, local limits to better achieve
the goals of the National Pretreatment program.

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                                16

 o    As permits  are reissued for  Pretreatment  POTWS,  include  all
     necessary chemical-specific  limitations,  whole effluent
     limits,  and sludge  requirements that are  needed  to serve as
     a basis  for local limitations.

 o    Establish measures  of  environmental effectiveness of  local
     pretreatment programs  (e.g., water quality and sludge
     quality). Incorporate  these  measures into ongoing
     implementation activities  (such as audits, PCIs, or POTW
     annual reports.

 o    Employ revised pretreatment  oversight strategy to allow
     "tailored"  oversight of those portions of local  pretreatment
     programs requiring  oversight that reflects the new measures
     of performance.

 o    Establish guidance  on  the control of commercial  and other
     sources  of  toxics where they are found to significantly
     contribute  to  or cause problems at POTWs.

 Watershed permitting

 o    To the maximum extent  possible, OWEC will encourage
     watershed initiatives  where water quality management plans
     have been developed and approved or where particular sources
     are causing a  major problem  in a particular watershed.
           t
 o    Permitting  authorities should include, at time of permit
     reissuance,  automatic  permit reopeners, to allow revocation
     and reissuance of the  permit in order to  synchronize permit
     issuance  with  a basin-wide permitting strategies.

 Permit Quality

 o    All permits  issued  or  reissued should be  of high quality and
     developed in accordance with certain requirements and
     principles  applied  consistently by all permit-issuing
     authorities.        .

          Permits developed will reflect all applicable statutory
          and regulatory requirements.   In addition,  to the
          maximum extent possible, permits will include those
          conditions identified as necessary in accordance with
          national  initiatives.

o    Develop permit limits  in all areas that are clearly
     expressed and  enforceable.

Facilitating Permit Development and Issuance

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                                 17
      A number of tools should be fully explored and utilized to
      the maximum extent possible in order to be able to help to
      manage the workload.  Some of these tools may take longer
      than the time frame envisioned by this strategy in order to
      be fully developed. These include:

           Expanded use of general permits in conjunction with a
           compliance and enforcement regime bassed on spot-
           checking and publicizing violations when they are
           discovered;

           Administrative continuance of low-risk permits;   In
           addition,  consider seeking statutory change to allow
           permit terms greater than 5 years (e.g.  7 or 10)  for
           certain types of permits.   These longer term permits
           would have mandatory reopener clauses.

           Certification by permittees that they employ
           appropriate best management practices in lieu of  some
           or  all on-site monitoring.

           Use of alternative dispute resolution mechanisms  in
           permit appeals in order to avoid delays  experienced in
           the current Administrative Law. Judge process.

           Limited use of permit modifications  to those
           circumstances  where absolutely  necessary.   In addition
           seek to expand the definition of minor modification to
           encompass  many of the actions that are now  considered
           "      "
Measures
          Explore elimination of evidentiary hearings  (e.g.,
          appeals would be referred instead to civil court) .

          Complete delegation of the following activities to
          Regions:  general permit issuance, PDF variance
          requests, and SMCRA.
                                               i

          Revisions in requirements and procedures with respect
          to Regional review of State permits.
     Develop direct measures and indirect indicators of
     environmental impact of permit issuance.
                                               [

     Explore the use of PCS to document loadings reductions from
     permittees.

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                                18

o    Quantifiable long term measures of success could include
     some percentage of all priority watersheds assessed each
     year for achievement of applicable criteria.  Other measures
     can include percentage reduced loadings of particular
     pollutants to specific watersheds from point sources and
     specified percentages of compliance with pollutants or
     pollutant parameters of concern.

Compliance/Enforcement

o    Enforcement initiatives will be taken in conjunction with a
     strategy which recognizes time lag between developing new
     permit conditions and compliance/enforcement activities.

o    Compliance tools such as Discharge Monitoring Reports (DMRs)
     and Significant Noncompliance (SNC) will be evaluated for
     the need for any revisions.

SHORT TERM ACTIONS

o    Develop, by 2/93, national policy and associated guidance to
     articulate the priority-setting mechanism addressing all
     elements discussed in the five year program objectives;
     including coordination with all relevant Agency initiatives.

o    Require State permitting authorities to develop and
     implement permitting strategies in consideration of national
     priorities and initiatives.  Strategies would need to be
     approved and the permitting authority would be held
     accountable for the commitments contained in the strategy.
     (All permit backlogs would need to be justified on this
     basis.)

o    Develop regulatory and administrative tools to support the
     priority setting mechanism discussed above.  Implement,  at
     both the EPA and State levels, those tools to facilitate
     permit development and issuance which can be implemented
     rapidly.  Explore those mechanisms which need to be further
     evaluated before they can be implemented.

o    Determine technical tools necessary to support any watershed
     permitting initiatives including revised environmental
     criteria, revised water quality models, revised ambient
     monitoring strategies, and conventional and innovative
     technologies available; articulate goals and receive
     commitments from sister offices and agencies to support
     these initiatives.

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                                19
LONG TERMS ACTTON.g
     Continue to implement priority setting mechanisms developed
     above.   These longer term permitting actions would generally
     .involve development and issuance of permits beyond those
     initially identified as the highest priorities as which are
     addressed in the short term.

     Employ  those tools for facilitating permit development and
     issuance which were explored as part of the short term
     actions.

     Longer  term actions would also involve further refinement of
     all program elements,  particularly in the area of watershed
     initiatives.
                                               i .   -
     Procedures developed and in place to allow review and
     revision of priority-setting on a regular basis.

     Direct  monitoring of receiving waters to determine whether
     they ,are meeting environmental criteria will  be an important
     measure of the success of both existing programs  and  new
     initiatives,  but will  be particularly important for new
     initiatives based largely on reducing risk.   Such ambient
     monitoring will  be balanced with end-of-pipe  monitoring in
     order to determine whether water quality objectives are
     being achieved.                            '

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                                20

 POLICY GOAL #2:   TO MAXIMIZE COMPLIANCE WITH THE REQUIREMENTS  OF
 THE CLEAN WATER ACT AND PROTECTION OF ECOSYSTEMS AND HUMAN HEALTH
 THROUGH AN INTEGRATED AND EFFECTIVE PROGRAM OF ENFORCEMENT AND
 ASSISTANCE.

 BACKGROUND

      The EPA and approved States  have at their disposal  a  number
 of  mechanisms/tools which can be  used to promote the compliance
 of  regulated entities with statutory and regulatory requirements
 and the expeditious resolution of noncompliance events when they
 occur.   First, the  Agency has the authority and responsibility to
 bring enforcement actions,  with or without  penalties, to require
 compliance.   The Agency has established policies identifying when
 noncompliance must  be addressed through enforcement.  Additional
 tools  which are available include financial assistance, generic
 training for the regulated public,  public information campaigns,
 facility-specific technical assistance,  POTW operator training,
 and outreach and mobilization of  interested constituent  groups.
 While permittees have a legal  obligation to notify EPA  or States
 of  noncompliance, currently,  the  response to that noncompliance
 will vary depending on the risk posed,  the  size of  the permittee
 (major  or minor), and the length  and severity of the  violations.

 The objective of this paper is  to establish an overall integrated
 strategic approach  which recognizes  the substantial number of  new
 programs  and new initiatives  which must be  addressed  and which
 promotes  the maximum level  of consistent compliance with
 regulatory requirements.   In  setting five year objectives,  the
 Office  of Wastewater Enforcement  and Compliance assumes that the
 level of  resources  available  to do these tasks  will remain stable
 and that  EPA and approved States  will give  priority —to the
 extent possible--to addressing  noncompliance  problems in  water
 bodies not meeting  designated uses or where water quality
 standards  are consistently  violated.    It builds on the existing
major/minor  classification  of permittees  but acknowledges  that
the  approach to  noncompliance by  minors  needs to be examined.
 Finally,  it  assumes  that, as  resources  allow, monitoring and
 enforcement  activities will be extended  to a wider universe of
permittees than  may  be  identified in the objectives.

FIVE YEAR  PROGRAM OBJECTIVES

o    The overall approach taken by EPA will continue the use of
     formal  enforcement as a requirement to resolve significant
     noncompliance by major permittees.  Major permittees  in
     noncompliance,  but not significant noncompliancef must also
     be addressed through enforcement action, either formal or
     informal.  However, the Agency expects to undertake an
     examination of the reasons for the large incidence of lesser
     violations and may devise other strategies for addressing
     such violations as the reasons may dictate.

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                            21
           No more than 5% of major permittees appears on the
           Exceptions List during the fiscal year.

           As a yearly average, (of four quarters) no more
           than seven percent of municipal and five percent
           of industrial permittees are in significant
           noncompliance.
                                           i
           On an annual basis the level of significant
           noncompliance of significant industrial users will
           be no greater than 25%.

 Likewise, EPA will undertake a review of its existing
 approach to improving compliance by minor permittees.
 Currently,   EPA addresses noncompliance by minors
 selectively and may use enforcement or assistance.   The
 review will attempt to identify  whether there are subsets
 of the minors universe where noncompliance is likely to
 produce significant environmental  impact and to identify
 where enforcement or assistance may be the preferred
 alternative.   EPA expects to identify a more effective
 efficient approach to noncompliance by minors as a  result  of
 this  review.

          'By  the  end of  FY 1993,. complete  study and develop
          recommendations as to the appropriate priority for
          permitting minors,  providing assistance,
          addressing the  noncompliance  of  minors, and
          tracking and reporting on the compliance  status of
          minors.

 EPA will  continue  its policy of providing  generic training  ~
 and assistance to municipal  permittees, regardless  of
 compliance status.   EPA now  provides substantial training to
 a broad base of municipal permittees in areas such  as
 pretreatment, operator training, whole  effluent toxicity and
 other areas.  EPA will continue to assess those operational
 areas where .training appears to be needed and to invest.in
 such training.  EPA will assess where assistance is critical
 to obtain compliance by minors  and will develop a strategy
 to maximize the effectiveness of training available to
m*norf-  EPA will also use training and public outreach
 efforts to promote initial compliance with new statutory
requirements by the compliance  deadline.  Public outreach
and training is expected to be  a major component of the
effort to secure compliance with new storm water and sludae
requirements by the. statutory deadline.

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                           22

      -     Implement-an effective  training program  for  POTWs
           with approved pretreatment programs which  focuses
           on  new regulatory  requirements,  effective
           development  of local  limits,  enforcement of
           pretreatment standards,  and proper application  of
           categorical  standards and local limits.

           Target outreach and training  efforts on  storm
           water at municipalities with  toxicity problems
           with a goal  of encouraging these municipalities to
           oversee the  compliance  of industrial dischargers
           in  their communities  with storm water
           requirements.

           Target outreach and information efforts  on non-
           NPDES facilities which  are subject to Section 503
           sludge technical regulations  to ensure that  they
           apply for permits  as  required and that they  comply
           with statutory requirements by  the deadline.

      -     Develop new  or revise existing  guidance  documents
           and/or design manuals followed-up by
           seminars/workshops to assist  the regulated
           community to comply with applicable regulations.
           (Sludge, Storm Water)

           Develop/implement  education/outreach materials  to
           explain the  regulations  to the public and
           regulated community.  (Sludge, Storm Water)

           Provide on-site technical and/or financial
           assistance when appropriate.  (Sludge, Storm  Water)

           Develop technical  guidance documents for BMPs—
           structural and non-structural.  (Combined Sewer
           Overflows)

Performance data  on all  major permittees will continue to be
entered and tracked through  the Permit  Compliance  System  as
is now the case.  Decisions  on  tracking of performance data
by minors  will  await conclusion of the  study on minors.  As
new statutory requirements such as sludge  and storm water
are implemented,  every  effort will be made to allow  for
maximum State flexibility and keep data required for
reporting  and tracking to the absolute minimum necessary  to
maintain the integrity of the program.  In determining how
data for new programs shall  be  maintained, OWEC will review
all options and will not  limit  consideration to exclusive
use of the PCS  system.

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                           23

     EPA and affected States will consistently enter at
     least 95% of DMR data on major permittees within 30
     days of receipt of data.

                  •
EPA will continue to identify and develop indicators of the
environmental, effectiveness of the NPDES program using
existing or new data.  In particular, EPA will develop and
implement approaches for measuring the loadings of toxic and
conventional pollutants to water bodies and those of concern
to CSOs as a means of measuring the impact of the NPDES
program and for use in targeting assistance, enforcement and
permitting priorities.

EPA will systematically explore options and opportunities
for making the enforcement process more efficient, thus
allowing the Agency to undertake more enforcement.  Examples
of new approaches which may be developed include the use of
expedited penalty orders or "traffic tickets"1 and the use of
alternate dispute resolution techniques to reduce the amount
of time and resources required to  resolve judicial actions.
More efficient techniques become particularly important as
performance on new statutory requirements must be monitored
and compliance maintained.  With no significant increase in
resources expected,  approaches must be developed which
maximize the impact of each enforcement action and reduce
the'time required to take such action.
                                          I
     Pilot test alternate dispute resolution techniques to
     determine whether or which techniques are most
     effective and efficient in the enforcement context.
     Issue appropriate guidance and support Regions in the
     use of these tools.
.                                          i
     Identify obstacles to use of administrative penalty
     authority in the traffic ticket context and seek
     necessary policy or statutory changes to facilitate use
     of that mechanism.  At a minimum, incorporate as a
     major component of the sludge enforcement strategy.

     Devise an inspection strategy for both sludge and storm
     water which focuses on the most environmentally
     significant subsets of each universe and is
     strategically targeted to create the greatest degree of
     deterrence in the regulated community.


EPA will emphasize the importance of more aggressive and
effective enforcement programs at the approved State level.
We will work with States to secure administrative penalty
authority where they do not now have such authority,  In
addition, a study of State penalty practices will be

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                                24

     undertaken to assess their effectiveness and to identify
     approaches which seem to be working well.  Such information
     will be shared with States as a concerted effort is made to
     ensure that States have both the tools and the determination
     to ensure that noncompliers are returned to compliance as
     expeditiously as possible.

          All NPDES States actively seek to obtain administrative
          penalty authority.

     -    Approved States have written penalty policies which are
          generally consistent with the principles of the EPA's
          general penalty policy guidance.


SHORT TERM ACTIONS

o    Complete by 10/93 a strategy for addressing compliance
     problems experienced by minor permittees identifying how
     assistance and enforcement tools should be coordinated and
     whether or how performance data should be tracked nationally
     for this universe.

o    Complete, by 10/94, a study of the reasons for the very high
     incidence of noncompliance by NPDES permittees and identify
     whether or what changes are needed to current  compliance
     and enforcement policies.

o    Identify several judicial actions through which to test
     alternate dispute resolution techniques.  Complete tests
     by 3/93.

o    Identify obstacles to using administrative penalty orders on
     an expedited basis.  Seek legislative/regulatory changes
     where necessary.  Ensure that proposed Class I consolidated
     rules facilitate use of APO as a "traffic ticket."

o    Conduct study of penalty practices in NPDES States. Identify
     impediments to use of cash penalties as well as other
     sanctions utilized.  Develop model legislative language for
     administrative penalty authority.

o    Complete pilot test of the methodology for computing
     loadings of toxic pollutants in the Great Lakes drainage
     basin.  As resources allow, implement changes to PCS data
     base and quality assurance measures identified through a
     national data quality assessment to support loadings
     analysis.

o    Work with States and municipalities in developing strategy
     documents and ensure that the approaches arrived at are
     factored into 106 grant agreements.

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                           25
Revise existing and -develop new policy, guidance and
performance measures as needed to implement new strategies.

Implement, at both the EPA and State levels, those new
tools/policies as they become available and can be readilv
implemented.                                   •            ,

Identify roles and establish commitments within OWEC and the
Regions to implement the strategies.

Plan and initiate data management and compliance tracking
systems for new statutory programs,  including stormwater and
CSOs, as part of the regulatory development process.

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                                26

POLICY GOAL #3:  TO FULLY INTEGRATE POLLUTION PREVENTION CONCEPTS
INTO ALL OWEC REGULATORY AND NONREGULATORY ACTIVITIES TO REDUCE
POLLUTANT LOADINGS, CONSERVE RESOURCES, AND IMPROVE COMPLIANCE.

ABSTRACT

o    Summary/Purpose:  integrate pollution prevention into
     overall OWEC mission and program activities to reduce
     pollutant loading, conserve resources,, and improve
     compliance.  Provide outreach and training to foster
     implementation of pollution prevention techniques by
     industry and municipalities.

o    Change in program direction:  Shift from emphasis on
     compliance to achieving environmental benefits through
     pollution prevention that go beyond compliance.

o    Needs from other offices:  Support needed from Pollution
     Prevention Division and Pollution Prevention Information
     Clearinghouse.  Coordination with Office of Environmental
     Education (training); Office of Research and Development
     (technology transfer); Office of Enforcement and Department
     of Justice (procedures for Supplemental Environmental
     Projects); and Office of Science and Technology
     (technologies to meet effluent guidelines and categorical
     standards).

FIVEYEAR PROGRAM OBJECTIVES

Integration;

o    Pollution prevention approaches are being used to the
     maximum extent possible in permits, pretreatment programs,
     CSO and stormwater control programs, sludge management
     programs, and administrative and judicial settlements, and
     in grant programs.

o    Municipal Water Pollution Prevention (MWPP) programs are
     institutionalized in all 50 States and participation by
     POTWs is increasing annually.

o    Municipalities and industries are routinely performing
     pollution prevention self audits to identify pollution
     prevention solution and are using prevention techniques to
     the maximum extent possible to reduce/eliminate both toxic
     and conventional pollutants from waste streams.

o    Water use efficiency techniques and energy conservation have
     been evaluated.  Appropriate measures, which do not
     adversely impact effluent, sludge usage or collection, and
     pretreatment system operation, are being implemented by
     municipalities and industries.

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                                27        .     ;     .          -

 Outreach and Training;   •          '            !

 o    Guidance and assistance are  being provided  at Regional and
      State levels for pollution prevention in both voluntary and
      regulatory actions.   Permit  writers and technical assistance
      providers are trained to identify pollution prevention
      opportunities at industrial  and municipal facilities.

 o    Enforcement and POTW  mini-exchanges within  the Agency's
      Pollution Prevention  Information Clearinghouse (PPIC)  are
      well established arid  being utilized to efficiently identify
      pollution prevention  opportunities for implementation.

 o    POTWs are taking a leadership role in providing technical
      assistance to industries,  small business, and individuals  on
      pollution prevention  options.

 SHORT-TERM ACTION fl-3 years\                  ;

 Integration
                                               !

 o    Determine pollution, prevention  requirements  that can be
      included  in permits and grant programs under current law and
      develop model language.

 o    Develop model language/case  examples  to facilitate  inclusion
      of pollution prevention requirements  in settlements and
      judicial  orders.

 o    Complete  study for evaluating the  impacts of water use
      reduction on POTW systems and operation (including effluent
      and  sludge  usage).   As  appropriate, conduct  further studies
      and  initiate needed changes  in policies  or regulation to
      promote water use reduction.               ;

 o     Work with ORD on development of the waste minimization
      assessment  manual and promote integration of efficient  use
      and waste minimization  techniques  into  state and local water
      programs.                                 :

 o     Evaluate  and  consider support or propose provision to the
      Clean Water Act that addresses  pollution prevention with
     respect to permit authority^  pretreatment,'waste
     minimization, grants,  and enforcement settlements.

Outreach and Training;                         ,
                                               I
                                               i
o    Develop .and provide pollution prevention guidance and
     training for permit writers , compliance and enforcement
     personnel, technical and financial assistance providers,
     inspectors, and operators at  the Regional, state, and POTW
     levels.                                ••:..•

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                                 28

 o    Encourage POTWs to promote pollution prevention with
      indirect users:

           Promote use of pollution prevention in sewer use
           ordinances, in local pretreatment program, household
           hazardous waste reduction programs, and other
           innovative approaches.

           Develop training for POTWs to conduct indirect user
           pollution prevention/waste minimization audits and
           ^distribute Slug Control Guidance to pretreatment POTWs.

 o    Make OWEC-related program information (from both regulatory
      and voluntary programs)  available through information
      clearinghouses and/or other appropriate mechanisms:

           Incorporate model language/case examples for permits,
           enforcement settlements and TREs/TIEs into
           clearinghouse.

           Provide examples/information to Regions and States on
           approved Supplemental Environmental Projects addressing
           pollution prevention.

           Develop models  and  other informational materials that
           include costs and cost savings  associated  with
           pollution prevention and water/energy conservation.

 o     Promote  and  foster pollution prevention  through national
      meetings and symposia and participate  in conferences
      sponsored by other organizations  (e.g.,  AMSA, WEF).

 o     Use  incentive grants  to  promote pollution prevention
      programs.

 o     Facilitate establishment of pollution prevention trust
      funds, which receive  contributions from  Supplemental
      Environmental  Project  (SEP) penalties, and make grants  for
      pollution prevention activities and programs  (similar to
      Mass  Bay project in Region I).

LONG-TERM  ACTION  f3-5 vears^

Integration

o     Evaluate all major grant workplans and reissued permits for
     pollution prevention and best management practices
     conditions.

o    Revisit enforcement penalty policy to explore additional
     ways to promote pollution prevention.

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                                29
                                               I
          Work with  the  Office  of  Enforcement  and Department of
          Justice to simplify procedures  for evaluating and
          approving  pollution prevention  Supplemental
          Environmental  Projects.

          Consider allowing  some of the economic  benefit portion
          of penalties to be used  for pollution prevention  not
          directly benefiting the  dischargers.  In effect,  the
          penalty would  still be paid by  the violators,  but would
          be used for pollution prevention elsewhere.   Currently
          only the gravity component of penalties  can be used for
          SEPs.
                                               i
o    Undertake evaluation of the effectiveness of  spill  control
     program in achieving toxic pollutant reductions.   Identify
     extent to which SIUs are required to develop  spill  control
     programs.
                               ,
o    Identify toxic  volatile organic controls for  POTWs  that will
     be regulated under  the  Clean  Air Act and identify pollution
     prevention opportunities.

o    Work with ORD/CERI  to integrate OWEC-related  pollution
     prevention into technological development, technology
     transfer, and technical assistance.

Outreach and Training:                         :          .
                                               i
o    Ensure incorporation and encourage dissemination of OWEC-
     related program information into existing clearinghouse:

          Develop and maintain  national  inventory of sludge
          beneficial use activities using existing clearinghouses
          and other  appropriate information dissemination
          mechanisms.

          Promote development and  identification of wastewater-
          oriented pollution prevention materials..  Ensure
          complete dissemination on pollution prevention
          technologies for all  industries (including both
          industries covered and not covered by effluent
         . guidelines and categorical standards) to all
          appropriate information clearinghouse.

o    Ensure that training is provided to all POTWs; regarding
     pollution prevention self audit activities.

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                           30

Coordinate with the -new Office of Environmental Education
and the Pollution Prevention Division to develop and
implement long-term training on pollution prevention
information that is being generated in OWEC programs.

Integrate basic pollution prevention criteria into financial
support programs, including grants and loans.

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                                31             i

 POLICY GOAL #4:   TO PROVIDE FINANCIAL AND PROGRAM LEADERSHIP AND
 EXPERTISE TO ENSURE THE FISCAL AND PROGRAMMATIC INTEGRITY OF THE
 STATE REVOLVING  FUND (SRF)  AND CONSTRUCTION GRANTS PROGRAMS.

 INTRODUCTION                                  !
                                               I     *
 The  Construction Grants Program had its final  appropriation in
 1990.   Some $57  Billion in  grants  to thousands of communities
 made a significant  contribution to improvements; in water  quality
 over the  years and  to  helping municipal dischargers meet  the
 requirements of  the Clean Water Act (CWA).   Yet some  4,600
 projects  representing  a Federal investment  of  over $30  billion
 still  need to be completed  and closed out.

 A strategy for completing the program developed by the  Office of
 Water  in  consultation  with  the Office of Inspector General (OIG)
 and  the Office of Administration and Resources Management (OARM)
 is in  its second year  of implementation.  This goal emphasizes
 the  importance of successfully implementing the-, strategy  which
 will continue and enhance the credibility of the Agency in
 carrying  out multi-billion  dollar  assistance programs.  It is
 essential that we maintain  a  strong program.

 Currently,  the State Revolving Fund (SRF) Program is  authorized
 through FY 1994.  This  program provides  capitalization  grants to
 States to establish State-wide funds  as  a source of local
 financing.   The  SRF program has already  proven to be  the
 principal financing program for the future.  During the next  five
 years, OWEC and  the Regions need to support  the  States  to  assure
 that the  funds are appropriately managed and that they  are-used
 to effectively meet the highest priority water quality  needs.

 During the  next  five years,  increasing attention  will be placed
 upon financing options  to meet  other  environmental  needs and
 other public  infrastructure needs.   OWEC will  provide leadership
 in exploring the potential transferability of  the  SRF program as
well as the  applicability of alternative financing  approaches for
 other water quality management  programs;  In addition, OWEC will
provide leadership to efforts to increase private sector
 involvement  in environmental infrastructure  financing.

FIVE YEAR PROGRAM OBJECTIVES:                  |
                                               I
                                               i
o    States will use the SRF to comprehensively address water
     quality problems such as nonpoint source and ground water
     and support other objectives such as water conservation and
     pollution prevention.

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                                 32
      SRFs will meet all necessary Title VI and other cross-
      cutting Federal requirements, as applicable, and be
      financially sound.

      States will have moved beyond simple loan programs to the
      adoption of more innovative financing approaches, including
      leveraging the fund where appropriate.

      Experience gained in managing the Construction Grants and
      SRF Programs will be shared with other offices in developing
      programs to meet other environmental needs.  As appropriate
      support will be provided in the design of financing
      m-rim-amc .                                          3
      programs.

 o    Where appropriate, private firms will be directly involved
      in providing needed capital to support expansion/upgrade of
      facilities constructed under the grants and SRF programs.

 o    EPA and the States will successfully complete the
      Construction Grants Program as expeditiously as possible.
      Projects should be constructed and operating and the grants
      administratively completed and closed out in five years.
      EPA will continue to manage special programs such as
      "coastal cities" grants.

 LONG TERM ACTIONS r3 - 5 year*)

 o    Maintain priority for successfully completing the
      Construction Grants Program.

           Continue financial/technical  support to States  to
           enable them to complete  the administration of the
           program.

           Orderly shift experienced personnel  and possibly use
           retired EPA staff  and  contractors, while maintaining
           experienced core staff to manage on-going complex and
           new special appropriations projects.

           Continue use of the Corps of  Engineers  (COE)  through
           the completion phase.

o    Support  SRF program directions indicated by  appropriate
     guidance, revised regulations, and/or interpretation of
     program  materials  (e.g., SRF Questions and Answers).

o    Maintain leadership in evaluating the effectiveness of the
     SRF program and  in identifying necessary or recommended
     changes.

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                                33
                                  " • -•             I   '       .
 o    Provide support for the consideration of SRF-like approaches
      for other infrastructure initiatives.

 SHORT TERM ACTIONS fl-2  years)

 o    Continue the  capitalization  of  the  SRFs  and provide
      technical support and  training  as needed to ensure the  long
      term viability  of the  program.   Encourage and support
      Regions in their efforts to  enhance financial analysis
      capabilities.           .                          •   .

 o    Participate in  activities regarding reauthorization of  the
      CWA as it may affect the SRF program (e.g.,  funding and
      technical changes and  expansion of  eligibilities).   Develop
      revisions to  SRF Program guidance and regulations  as
      necessary.

 o     Continue  to support Regional Office  SRF Annual Reviews  to
      provide feedback to States to enhance their programs.

 o     Encourage States to develop  SRF goals and objectives and
      Intended  Use Plans which reflect risk-based analyses
      geographic targeting, and other approaches to assure that
      SRF assistance is supporting high priority water quality
      activities.  Encourage States to improve funding
      coordination with other Federal and State infrastructure
     programs.

o    Encourage States to adopt incentives within their SRF
     programs to foster increased local community support of
     initiatives sUch as water use efficiency, pollution
     prevention, compliance, and water conservation.

o    As appropriate,  provide timely resolution of SRF      /
     implementation issues,  including defining appropriate Agencv
     oversight activities after the end of capitalization grants!

o  .  Provide assistance to. other water program offices regarding
     the applicability of alternative financing mechanisms to
     support implementation of water  quality management
     activities.

D    Revise regulations,  policies, procedures,  and other program
     materials associated with the Construction Grants and SRF
     Programs as necessary to remove  barriers  to the
     implementation of Public-Private Partnerships (P3s).

3    Develop guidance and training materials related to the
     implementation of P3s  and provide support to States and
     other organizations  in  order  to  facilitate implementation of
     P3  arrangements.  Support P3  demonstration projects.

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                                34

      Develop and implement a strategy to develop the capabilities
      of the Regions and States to provide information and  support
      to local communities regarding alternative  financing.

      Participate in the development and  implementation of  several
      national centers  of environmental financial expertise.

      Maintain continued oversight of the construction grants
      program,  including on-site COE inspection activities  and
      appropriately  manage the disputes and audit resolution
      processes.   Re-emphasize adequate O&M of completed
      facilities.

      Manage  implementation of special  grant programs,  including
      "coastal  cities",  U.S.-Mexican border projects,  and Indian
      and Alaskan Native Villages  projects.

      Continue  full  implementation of the Agency's Construction
      Grants  Program completion/closeout strategy.

     Manage  and  enhance information systems to support  the
     Construction Grants  and  SRF  Programs.  Improve management
     reporting of the status  of program implementation.  Develop
     methodology to measure the environmental effectiveness of
     the SRF and Construction Grants Programs.

     Enhance the Needs  Survey  (CSO, storm water,  sludge, toxics,
     NPS) to provide information to support risk-based SRF
     funding decisions.
PROGRAM GAPS
     Expeditious completion of the Construction Grants Program
     presents challenges.  A shift of personnel to compliance/
     enforcement and other programs gives the Agency added
     benefits of experienced people to bolster its overall goals.
     However, retention of those same people is essential to
     expeditious completion of the Construction Grants Program as
     well as management of new projects funded by special
     appropriations.

     The vulnerability of the program to waste, fraud, and abuse
     will increase as the program winds down.   This vulnerability
     will occur both in terms of.financial integrity and
     successful start-up operations of completed projects.
     Careful attention must be paid to this area;  highly
     qualified staff must be retained for the  duration.   We
     cannot afford to experience problems in the Construction
     Grants Program that would reduce confidence in our ability
     to manage our programs.

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                           35

The role of personnel involved in initial SRF capitalization
grant efforts may need to be redefined for later periods of
SRF implementation.  This could impact relationships between
the Regions and the States (e.g., type and extent of
technical support and oversight).  Gaps in Regional
financial analysis staff skills could impede appropriate
review of proposed more complex SRF financing approaches and
limit acceptable Regional oversight of State programs.

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                                36

 POLICY GOAL #5:   TO MORE EFFECTIVELY COORDINATE OUR ACTIVITIES
 WITH OTHER OFFICE OF WATER AND AGENCY PROGRAMS TO SUPPORT OW
 PRIORITIES AND MINIMIZE ADVERSE CROSS-PROGRAM IMPACTS.


 ABSTRACT

 o     This  goal addresses the  need to ensure  effective and timely
      coordination of OWEC programs with those of  other OW and
      Agency offices.   The goal discusses both giving and
      receiving assistance,  as needed to minimize  adverse  cross-
      program impacts.   Changes to existing procedures are
      contemplated and would be reflected in  work  plans, MOAs,
      guidance and other documents to help ensure  such
      coordination.   Examples  of the  kinds of activities requiring
      coordination include obtaining  needed environmental  criteria
      and water quality models to  allow watershed  permitting and
      ensuring that NPDES limitations and conditions  do not cause
      adverse cross-media impacts.

 o     Successful development and implementation of OWEC's  programs
      and initiatives  will depend  directly on successful
      communication and coordination  with other offices within OW
      and across the Agency.   In addition, various activities
      undertaken by OWEC will  have impacts on other OW and Agency
      programs.  It is  therefore extremely important  that  timely
      and effective coordination and  communication among offices
      occurs  at all levels in  order to facilitate  program
      implementation and minimize  adverse cross-media impacts.

 o     This goal assumes  that activities requiring  coordination
      among offices  and  programs can  be clearly articulated.  It
      also assumes  a high level  of support of  such coordination by
     managers of various  offices  and programs.  Support from
      groups  outside of  OWEC will  be  necessary to  implement the
      objectives will include OSW, OAR, OPPE,  OGC, and all
     appropriate OW offices — particularly OST and OWOW.


FIVE YEAR PROGRAM OBJECTIVES

o    Procedures/agreements  in place and operating to obtain
     support from other OW/Agency offices for OWEC programs and
     initiatives where needed.  Such support maximizes OWEC
     program capabilities and resources.   In addition,  full
     compliance is being obtained with all OWEC statutory and
     regulatory requirements administered by program offices
     whose activities have the potential  to impact these
     programs; results measured by media-specific monitoring and
     permit compliance  (where applicable).

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                                37
                                               j
 o    Procedures/agreements in place and operating to ensure OWEC
      support of other offices where needed.   These procedures are
      designed to utilize OWEC resources,  where necessary and
      appropriate,  to support these program areas.  These
      activities are designed to ensure full  compliance by OWEC
      programs with all statutory and regulatory requirements
      administered by other OW/Agency program offices-;  results
      measured by media-specific monitoring and permit  compliance
      (where applicable).

 o    Other OW/Agency actions outside this plan ;will have limited
      support using OWEC resources.             \

 o    Innovative solutions.involving multiple programs  and media
      being implemented (e.g.,  include activities such  as
      point/nonpoint source trading,  use of wetlands to filter
      storm water discharges,  and  research and development of
      innovative tools).


 SHORT TERM ACTIONS

 Identification of  Areas Requiring Coordination

 o     Various high  priority OWEC programs  whose successful
      implementation requires cooperative  efforts  on the  part of
      other  offices will be identified  and any specific needs
      communicated.   These  may  include,  but are not  limited to:
                                               i   -
          Wet  weather  and  sediment standards.

          Wet  weather  and  sediment water  quality models  and
          methodologies for developing TMDLs.
                                               l
                                               I
          Development  of needed effluent  limitations guidelines
          and  categorical pretreatment standards.

          Research  and development related to new or innovative
          approaches to various aspects of OWEC^s programs.

o    High priority activities of other OW offices and Agency
     programs which have potential impacts on OWEC programs and
     those which OWEC programs may affect will be identified.
     These include, but are not limited to:

          All activities and initiatives of the Office of
          Pollution Prevention.

          All relevant activities of sister OW program offices
          such as criteria development, development of new water
          quality models,  monitoring reports  such as 305(b),
          guidelines promulgation, and the National Estuary
          program.      .   .

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                                 38

           RCRA facility assessments and corrective actions.

           CERCLA records of decisions.

           CAA statutory requirements related to POTWs.

           Environmental funding:  activity of Environmental
           Finance Advisory Board,  public-private partnerships,
           funding of expanded uses under SRF program,  transfer  of
           alternative funding approaches to other environmental
           infrastructure programs.

          •Information distribution:   Environmental Finance
           Information Network (EFIN)

 o    It may be necessary to undertake formal studies of
      institutional structures and  functions across water and
      other media programs in order  to document problems which
      prevent or impair effective communication and coordination.

           Surveys of existing practices,  together with  interviews
           of key organizational  members  may be necessary to fully
           document existing problems.  In addition,  these studies
           could lead to summary  reports  with findings and
           suggested remedies.

 Develop Work Plans.  Guidance,  and Communication Plans

 o    Based  on identification of  areas  requiring communication and
      coordination,  develop  work  plans  by all concerned  offices
      which  assure mutually  supportive  approaches to  common
      challenges.

          Program plans of  various offices  coordinated  and '
          include commitments  in cases where program outputs  from
          one office are  needed  by another.

          Direct  assistance being provided  by one program  office
          to  another, where necessary for effective  program
          imp1ementation.

o    Develop  guidance where necessary to foster  clear
     understanding by implementation officials of program
     requirements of related program areas.

          Guidance designed to apprise those  involved in
          implementation of  a particular program of the points of
          interface  with other programs.

o    Develop  communication  and outreach plans which  incorporate
     cross-media concerns and which foster clear understanding of
     program requirements.

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                                39

 LONG TERM ACTTQM.g

 o    Implement work  plans  and  communication  plans  developed as
     part of near  term  activities;  apply new guidance  developed
     as part of near term  activities.

 o    Develop tools identified  in the near term as  necessary to
     undertake cooperative and coordinated efforts to
     environmental problems  (e.g.,  new water quality models,
     improved monitoring,  and  criteria necessary to set
     priorities in watersheds, etc.)

 o    Long term policies, MOAs, and  standard  operating  procedures
     may  need to be  revised or developed, where none currently
     exist in order  to  correct identified problem  areas for the
     long term.  The purpose of such policies would be to ensure
     that timely and appropriate communication occurs.  Key
     underlying principles of  such  coordination are as follows:

           Coordination  among offices must occur at a point  where
           input of concerned parties can be most helpful in terms
           impacting  the quality of  a product; sufficient time
          must be  allowed for  the commenting offices to review
          and provide comments or take other appropriate actions.
                                               i.
          Communications and coordination should riot occur with
          respect to all aspects of the mission of a particular
          program office, but only those elements where
          communication is helpful or necessary;  standard
          operating procedures should articulate the types of
          activities for which coordination must occur.

o    Form standing formal committee to address cross-media
     program objectives.

o    Strongly encourage and facilitate program of IPAs and
     Rotational Assignments to ensure "cross-fertilization"  and
     foster appreciation of the challenges  faced  by both the
     receiving and sending offices.

3    Mandatory training, particularly in  cross media program
     areas, will  play an important role in  sensitizing existing
     staff and in apprising new staff of  the  importance of
     communications and coordination.

3    Improved coordination will be extended to the  regulated
     community as well,  through such efforts  as working to see
     that  water quality criteria are developed based on the  best  '
     possible scientific analysis  and tools.

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                                40

POLICY GOAL #6: DEVELOPING AN EMPOWERED WORKFORCE

The fundamental theme of this goal is to take actions to empower
OWEC employees to get the job done as effectively as possible
provide necessary tools and other support to help them achieve
their short and long-term career goals, and create workplace
environment where people are excited about working together at
all levels of the organization.
Ob-jective
            ±  Foster the empowerment and recognition of OWEC
               employees.

     A key to a successful workforce is the empowerment and
recognition of valued employees.  Fostering a challenging,
stimulating and rewarding atmosphere contributes to the mental
health and personal and professional well being of employees.
OWEC is committed to pursing actions and policies that empower,
support and reward individual efforts and provide the diversity
of work opportunities people enjoy:

     o    OWEC supports effective planning "retreats"
          by Sections and Branches as a vehicle for
          staff to contribute to decisions on
          distribution of work and responsibilities.

     o    OWEC recognizes the unique needs and desires
          of individuals and fully supports the
          Agency's consideration and pursuit of
          flextime,  compressed work weeks,  part time
          status,  flex-place and other  Agency programs
          to meet  the special needs of  people.

     o    OWEC  supports  the  concept of  rotations and
          details  to offer employees different
          opportunities  within and outside  the
          organization.

     o    OWEC  recognizes the value of  "empowerment"  in
          an  organizational  culture.  OWEC  will  pursue
          efforts  to shift responsibilities,  control,
          and accountability  downward to the  lowest
          levels possible.  OWEC  recognizes that
          empowerment promotes  individual pride  of
          ownership, enthusiasm,  creativity,  self
          confidence, and a sense  of partnership among
          staff and management.

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                     .           41         •    1

      o     OWEC recognizes the importance of rewarding
           success  and commits to  using all the means available,
           from day to day verbal  recognition to  the OWEC Awards
           and  other Agency award  programs to acknowledge the
           efforts  of OWEC team members.

Objective  #2:   Foster Better  Communication at all  Levels of  OWEC.

      Successful communication is  an  ongoing process with constant
needs.  The Human  Resources Council  for  OWEC will  play  an
important  role in  improving communication at all levels in OWEC.
OWEC  is committed  to expanding the communications  from  the Human
Resources  Council(s).
                                               j
      o     OWEC supports a more effective use of the Human
           Resource Councils (OWEC, OW  and Agency)  to aid in  the
           task of  improving communications.  Specific areas where
           this could be done  include:

                Promote newsletter within OW and advertise
                activities and meetings within various
                newsletters.                    j

                Periodically hold  all hands meetings with each
                Division within OWEC to generate ideas and
                communication  to the HRC.

                Advertise  meetings of HRC and open  attendance to
                those that may be  interested on a short  term
                basis.

                Increase communications a  scheduled  activities
                (i.e,  bulletin boards in  all  areas  of OWEC
                employees

                Increase attendance at OW HRC meetings and
                increase level  of  involvement.
                                               j
                                               i
Objective  #3:   Establish  an Aggressive and  Coordinated
                Recruitment  Strategy,  Especially for Minorities.
                                               i
Recruiting a quality workforce  is essential  if we are to maintain
the high standards that have  already established within OWEC. In
many cases, our needs are  similar, thus making a coordinated
approach feasible.
                                               I
     o    Establish  active networks with selected schools and
          universities

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                                42

      o     Use contacts effectively through  actions  such  as
           linking interviews  with other travel,  seminars,
           meetings,  using one division to initially screen
           applicants for  other divisions

      o     Designate  hiring coordinators in  each  division and have
           them share information  on needs,  prospects, etc.

      o     Strengthen interviewing process through use of peer
           interviews as well  as interviews  with  potential
           supervisor,  training in interviewing techniques, etc.

     .o     Develop  a  PROMOTIONAL PACKET of basic  information for
           prospective interviewees.


Objective  $4;   Establish  a meaningful career development program
                in  OWEC

Effective  career development  is essential not only  for employee
morale but also as a mechanism  for developing a balanced
workforce with useful perspectives on other programs.
In pursuit of this objective, we will pursue the following
activities:

     o    Publicize training opportunities from within EPA and
          outside organizations and maintain an up-to-date set of
          relevant training materials.

     o    Require and follow up on annual training plans for each
          employee

     o    Provide annual training budgets for each Division and
          the Immediate Office
              *

     o    Establish/encourage mentor/coaching programs for all
          employees who are interested.

     o    Develop a training/orientation  program for new
          employees

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                                43

 POLICY GOAL #7:   TO ENHANCE THE CAPABILITIES OF THE STATE AND
 LOCAL  GOVERNMENTS SO THAT THEY MAY FULFILL THE REQUIREMENTS  OF
 THE  CWA PROGRAMS  MANAGED BY OWEC.

     Our goal  is  to assist State and  Local governments  in
 maintaining past  environmental gains  while attempting to  meet
 emerging environmental mandates in a  time  when tight- fiscal
 constraints have  created a perennial  financial shortfalls.   Our
 assistance  will forge a  new State/EPA relationship  through
 institutional  change where EPA will be  flexible in  accommodating
 State  priorities,  and will provide administrative and program
 relief in order for States address their greatest environmental
 needs.   Our partners must obtain adequate,  predictable  sources of
 funding to  meet their responsibilities  under the point  source
 programs and must transform existing  programs to become more
 efficient and  effective.
                                                I *

     Challenges to Environmental Management

     In the 1990's,  State and  local water  quality agencies face
 resource shortfalls  that  may jeopardize their ability to meet
 their  programmatic responsibilities under  the CWA.,  All levels of
 government  face severe budget  constraints  and possible  reduction
 as environmental mandates continue to grow.

     These  programs  include NPDES,  enforcement,  construction
 grants  (SRF), pretreatment, sludge, combined  sewer overflows  and
 stormwater.  QWEC's  efforts are directed at assisting States  in
meeting  environmental challenges in an new  era characterized  by
highly prescriptive  and costly new Federal  environmental
 legislation; emerging environmental problems  associated with  a
 large universe of  small sources; and a tight  economy  in which
governments experience serious revenue shortfalls.

States.  State governments that are authorized to implement
permitting  or enforcement programs, or that have been delegated
construction grants  and SRF programs face serious resource
constraints.because  of increasing workload.
                                                I
          In permitting,  the increased workload will derive,  in
          large part, from the need to regulate storm water and
          CSO discharges, and sludge disposal.  In addition to
          the current emphasis on regulating major municipal and
          industrial discharges and regulating users through
          pretreatment programs, more attention is also being
          focused on permitting the large universe of minors.

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                                44
           In enforcement,  the workload will follow the permitting
           initiatives (storm water,  CSOs,  sludge,  and minor
           discharges).   More emphasis will  be placed on improving
           environmental data as we focus  on environmental
           results.

           In construction grants,  as  the  close-out  strategy  is
           implemented,  there may be a short-term resource  crisis
           as States  try to accelerate the close-out process.
           States  are beginning  to  feel the  disappearance of  205g
           funds.

Local governments.   Local governments face  the challenge of
complying  with new Federal and  State  requirements in the areas of
pretreatment, storm  water,  CSOs, and  sludge.   They  also will be
urged to undertake initiatives  to  reduce  pollutant  loadings and
conserve water.   These  initiatives will substantially increase
capital and  operating costs.

Competing  program needs.   These new water quality program
challenges must be viewed in  the context  of:  (l) fiscal
constraints  at the State  and  local levels;  and (2)  competing
demands for  scarce resources.   At  the State  level,  for  example,
water quality programs must compete for resources with  other
high-priority environmental and public health  programs.  At the
local level, capital  construction  needs compete for  resources
with drinking water,  solid waste,  and-hazardous waste programs.
The need to  address competing program needs are encouraging
holistic environmental approaches  such as multi-media and
comparative  risk.  These  approaches pose  further challenges to
environmental management.

     The Strategy

       OWEC will adopt a three-pronged approach:

          o    focus on increasing state and local
               program resources through continuing
               efforts to increase Federal grant
               support and through assistance to
               State/Local governments in adopting/
               implementing alternative funding
               mechanisms;

          o    promote institutional change  to use
               existing resources more efficiently and
               effectively through streamlining
               administrative processes;  building  upon
               innovative State and Local  management
               approaches through technology transfers;
               identifying/developing  and  promoting
               resource-efficient program  tools such as
               general permits,  administrative
               penalties,  alternative  dispute

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                                45

               resolution, etc., funding pilot programs
               and promoting cooperative training
               programs; and

          o    establish a strong and. active communi-
               cation network through an aggresssive
               outreach and education effort to reach
               the public, the regulated community,
               environmental groups, executive and
               legislative branch officials, other
               Federal agencies, and other State
               programs.

OWEC will implement this part of the Strategy by:

     (1)  Striving to increase federal financial assistance to
          the States.  OWEC will address this abjective, by up-
          grading our assessment of State funding needs and
          priorities in order that we will better be able to
          support increased Federal financial assistance.

     (2)  Providing direct contractor assistance to States that
          are considering alternative financing mechanisms for
          these point source programs.   OWEC contractors will
          work with States to evaluate options available to the
          States, present comparative state data for use by Sates
          in their presentation, etc.          !

     (3)  Encouraging the States to direct their resources toward
          solving environmental problems with the highest
          priority and risks.   OWEC will be flexible in reaching
          agreement with the States as  to priorities and
          commitments.

     (4)  Working with the states and local agencies to establish
          a network for communication.   OWEC will organize
          systems of communication for  exchange of technical,
          management and programmatic information to be shared
          between State,  Local and Federal environmental
          regulatory agencies.   OWEC will work with organizations
          such as ASIWPCA,  AMSA, ICMA,  etc.  to develop and
          coordinate its communication  and outreach efforts.

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