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                                  UnitetfStsfew-
                                  Envirenmental Protection
                                  Agency
                          Administration
                          and Resources
                          Management
                                                                        EPA202-F-94-002
                                                                        February 1994
  Delegations of
  Authority—
  What Managers Need
  to Know
                                                           En v i r o n f n e nt.a1 P ro tect i on  A g e ncy
                                                           / / w t/' s t .,! a c ks o fi  E; o u 1 e v a r cl
b          Office of Administration
       inagement and Organization Division
I DelegationI Floors . . .  . '7*2


 Common Management
  Concerns	2
                    r f
    This Guide is designed to give you an
    overview of EPA's  delegations of
 authority  and to discuss  your
 responsibility in managing delegated
 programs. A delegation of authority is
 defined as the Administrator's charge to
 senior Headquarters and Regional
 managers to carry out statutory and
 regulatory responsibilities on her behalf.

 I.   Background—
     Delegated Authority

   There  are 555+ delegations in the
   Agency's Delegations Manual.
 Delegations are important for two
 reasons. First, they are a legal record-
 documenting which Agency officials
 have authority to make decisions for the
 Administrator. Second, delegations are
 a  management  tool that establishes
 operating   conditions   among
 organizations and individuals as  they
 carry out authorities.

 Figure 1 shows the distribution of 555+
 delegations  throughout the Agency.
 Approximately 40% are held in
 Headquarters, 29% in the Regions and
 31% shared by Headquarters and the
 Regions. Figure 1 also shows that EPA
 is a fairly decentralized  Agency, with
 60% of its delegations going either solely
 or on a shared basis to the Regions.

 EPA's delegations tend to fall into one of
several categories, such as enforcement
actions, administrative decision.!?, state
environmental .agreements/approvals
                                                                 Distribution of EPA's Delegation:
                                                                          Shared
                                                                        Headquarters
                                                                         & Regions
                                                                        172-(31%)
                                                                  FIGURE 1
                                                                              Based on data as of 3/10/93
                                                                certification/permits/registration
                                                                decisions, and awarding grants and
                                                                cooperative agreements. Figure  2
                                                                shows that  the largest number of
                                                                delegations result from the Clean Water
                                                                Act and the Clean Air Act.

                                                                II.  Delegated Authority vs.
                                                                    General Authority

                                                                It's important to note that a delegation
                                                                •of authority is not needed for all work
                                                                that is performed by an office. Delegated
                                                                authority  generally   refers  to
                                                                decision-making that flows directly from
                                                                legislation or regulation. General
                                                                authority stems from activities that an
                                                                office does as a result of its functions,
                                                                and can be found in functional and
                                                                mission statements, operating guidance,
                                                                and strategic plans.
                                                                       Recycled/Recyclable
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                                                                       contains at least 50% recycled fiber

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                     Delegations Sorted By Act
                        (Total Delegations - 555)
 3NON - S
               10   20   30    40    50   60   70    80   90   100
  1Other Acts: Includes delegations from acts with fewer than 15 delegations.
  Acts included are: PPA, EPCRA, IRAA, MPRSA, NCA, & OAPCA.

  2Multi-Act: Delegations use multiple statutory authorities and cannot be
  attributed to any one specific act.

  3Non-Statutory: Includes delegations that are not based on legislation (i.e.,
  General/Administrative delegations based on management decision-making
  protocol, Executive Orders, Federal Register Notices, etc.).

  FIGURE 2
To put it simply, a general authority is an activity that an office
performs—such as the analysis and work that is involved in
reviewing a permit. A delegated authority is an accountable
decision-making  responsibility—such as  approving or
denying a permit.
ill.   Delegation Floors     	

    n action  can be redelegated  to various levels in an
   ^organization,  such as the Division Director or Branch
Chief level. A  delegation floor  is the lowest level in an
organization to which an actioncan be redelegated. This floor
is written into the delegation as a specific authorized level.
Delegatees may choose to have actions actually carried out
at a level above the authorized floor, but not below it.

As of March, I993, the majority of delegations are authorized
to  be  redelegated to  the  Division Director level (43%),
followed by 25% with no floor identified, and 15% that cannot
be redelegated. {In  light of the Inspector General's concern
about delegation floors, the Agency now identifies a floor on
all delegations  as they are  written or  revised.)  Figure 3
indicates that Division  Directors  are the critical action and
decision-making level for the majority of delegated  Agency
authorities.
      iV.  Common Management Concerns

          As managers,  delegated  authorities are an
          important part of the way you  manage your
      organization and your programs. In addition  to the
      technical and programmatic  issues  inherent in  a
      delegation, you also need to be  aware of  some
      common management concerns.

      (1) There Is considerable disagreement  about
      how to determine the lowest appropriate level for
      redelegatlon  In  a  highly decentralized
      decision-making management structure.

      —  In EPA a significant amount of discretion and
          autonomy is held in the Regional offices. It is
          crucial to decide how much authority you wish to
          delegate to the Regions.

      —  The level of  delegation  sometimes receives
          Congressional interest. In  general, Congress
          prefers to keep decisions and accountability at
          high levels in  the Agency to ensure effective
          oversight.

      —  In contrast, recent AA/RA Forums, the National
          Performance  Review, and  individual Regions
          have raised  issues suggesting a need for
          additional employee empowerment and
          autonomy in making decisions under delegated
          authority.

          These tensions are symptomatic of the pull and
          tug in a centralized vs.  decentralized
          management structure and are important for you
          to keep in mind as  you make  your delegation
          decisions.
                                                                              Delegations Sorted By Floor'
                                                                                 (ToUOetogatianf - 555)
     Division Director
            0      50      100.     150     200    "250

1Floor= Lowest level to which a delegation can be redelegated, e.g.,
 Branch Chief, Division Director.
^Others Includes delegations with floors identified as On-Site
 Coordinators, National Program  Managers, Senior Budget Officers,
 or Human Resources Officers.

FIGURES

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      EPA's delegation system is based on fivescore prfndptes and'

      (1) Act for the Administrator — Generally the Administrator only
      delegates to one or more senior officials reporting directly to her to
      act on her behalf. This means the AA/RAs, General Counsel, and
      Associate Administrators.

      (2) Right to Exercise or Withdraw—The Administrator and other
      delegatees always retain the right to exercise  or withdraw a
      delegated authority at any time.

      (3) Allocate Authority — Delegations allocate authority between
      the Regions and Headquarters, as well as among Headquarters
      Offices. As a way of deciding who should hold what authority, issues
      manly affecting Regional or field offices are delegated to Regional
      Administrators, and issues that are multi-regional or of national
      significance generally remain with the Administrator  or are
      delegated to senior officials at Headquarters.

      (4) Authority  at Lowest  Level  —When deciding  to delegate
      authorities, consider the following:

      — Review enabling legislation—sometimes it dictates the level of
        decision-making authority.
     — Delegate an action to the lowest level that Is appropriate for
        efficiency and effectiveness.           ,      „

     — Decide whether or not to redetegate autr«ir4% tower fevete
        based on areas of responsibility, the staffs technical expertise,
        and political judgment, then delegate as dosa as possible to
        where the action takes place.               >

     — Determine if an action has a high degree of importance and
        visibility and, if so. retain authority  at an appropriate level
        capable of performing the taak and making the appropriate
        technical, political and policy judgments,

    —  Determine whether full or partial authorization Is needed based
        on the above criteria; decide who should exercise what parts of
        the authority; and what should not b& delegated, -f:

    (5) Delegatees Are Accountable ~ Regardless of the fevel  to
    which an action is  redelegated, you remain accountable for all
    decisions or actions taken by your redetegateejs jn, exercising the
    authority. In the following chain of ao»untaWlityfttJs very important
    for you to understand the level at whfcfi delegate^ authorities are
    or should be exercised.
  (2) Determining the appropriate level to carry out an
  authority is closely  aligned  with the notion of what
  restrictions or limitations should be placed upon
  officials as they carry out authorities. While limitations
  are used most frequently with enforcement delegations,
  the majority of EPA's delegations (approximately 64%)
  have no restrictions limiting how officials exercise the
  delegated authority (see Figure 4).

  —  Historically the Agency's Administrators, the  recipients
      of delegations, and the Management and Organization
      Division (M&O) have strongly dlsconrag^ limitations
      because  they undermine the  accountability and
      effectiveness that a delegation is intended to provide.
      Limitations result in "phantom"delegations, meaning that
     the delegatee only appears to have the authority, but in
     reality  it  is held by the office or person who must
     ultimately approve the action.

     Although  delegatees want to receive  authorities as
     unencumbered as possible, National Program Managers
     often want to  maintain  control  or  ensure  national
     consistency by placing limitations in delegations.

—  Limitations, when  necessary,  establish operating
     procedures between  programs that  must share
     delegated authority.

—  EPA officials who have been given a delegated  authority
    can only carry it out within the stated parameters of the
    limitations included in the delegation.

(3) Timing is an Important Issue In managing your
delegations  and programs. Delegation actions
submitted at the last minute force an expedited review
(or no review at all), limit input by essential parties
affected by the delegation, and create the potential for
vulnerability when the delegation Is exercised.
For example, regulations and permits are sometimes
approved and ready to be carried out before an office
realizes they do not have appropriate delegated authority
to approve the action.
              Delegations Sorted By Limitations
                     (Total Detections - 555)
  No Limitations
        Notify
      Consult
      4 Concur
                 SO    100   150   200   So   300   350~
                          Number of Detections

 1No specific restrictions on officials in exercising the delegated
 authority.
 Requires informing other official(s) named when exercising the
 authority.
 Requires discussing action with other official(s) named before
 exercising the authority.
"Requires approval from other official(s) named before exercising the
 authority.                                         s

FIGURE 4

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                                           anotner

        %^f the *fe$gatfcfis with limitations;
Q Consult requires fhat an action official discuss the
    action with another officiates) before exercising the
    authority. Consult Is used in 46% of the delegations
   ,withjimftai:ons;

£3 ConeurJs the most rigid, of ail limitations, is used In
    33% Qltfie delegation! Mriiijnitatlons, and requires
  '  th*         '
                                          oi another
                                                             Before deciding to exercise or withdraw a delegation
                                                             explore alternatives and discuss your concerns with the
                                                             reaelegatee. Withdrawing a delegated authority should
                                                             be used as  a last resort  after  other alternatives  are
                                                             exhausted.
                                                                                              Process
 (4) A delegation of authority should be considered an
 initial management step, not a final one. As a manager
 you must also conirol delegations after they are
 redelegsted. Several methods can be used:

 — Consider crafting delegations to stipulate dollar levels or
    types of actions as a way of control rather than delegating
    broad authority or imposing unnecessary limitations. An
    example are dollar limits  used with  some  grant or
    cooperative agreement delegations.

—  Build a  management infrastructure for your program
    using  a mix of applicable  program guidance,  plans,
    evaluations, technical  assistance, information sharing
    systems, and other mechanisms.  Don't rely solely on
    delegations of  authority for  program management
    directions.

—  Systematically review your delegations on a regular
   basis to make sure they are compatible with program
   objectives.  Periodic  program evaluations and
   conferences can heip the National Program Manager
   assure that the entire program, including the exercise of
   delegated authority, is solid and consistent.

-  Revise delegations as understanding and experience
   with the authority grows in the organization.

-  Show confidence in the redelegation decisions you
   make. Once decisions are redelegated, it is important to
   demonstrate trust, integrity, and  consistency toward
   redelegatees  and the  actions they take under the
   redelegations.

-  Exercise  a  delegated authority yourself when it is
   appropriate for policy or political reasons to do so; and
  withdraw an authority if it is being improperly carried out.
  Qefore the Administrator approves a delegation of
  •-'authority, it is circulated through the Agency's "Green
  Border" review process.  This review process is the
  mechanism for the Administrator to receive the advice and
  counsel of her senior managers and to be sure that all legal
  or operational issues have been raised before she makes her
  decision. Green Border  is also an  Agencywide
  consensus-building process, and is managed by the
  Management and Organization Division (M&O) in the Office
  of Administration and Resources Management.  Your staff
  has more detailed information about the Green Border review
  process.

 VI.  Conclusion	

 Qelegations of authority are management tools that:

 (1) Ease the burden of obligations for which the Administrator
 is responsible by giving authority to senior managers to carry
 out  actions  on her behalf.  By delegating these
 responsibilities to EPA senior officials, the Administrator has
 more time  to address other  pressing issues affecting the
 Agency; and

 (2) Provide a legal record of Agency officials who carry out
 authority on behalf of the Administrator.  This becomes very
 important when EPA actions are challenged in court.

 If you are interested in learning about specific delegations in
your program, please consult the M&O Management Analyst
for your organization ((202) 260-5000) who will be happy to
assist you.
                                                                      How  EPA Gets  Its
                                                                     Delegated Authority
                                                                                    Adm I n J sxrai'or
                                        12th Roo,
                                                                                 LegaI Record

                                                                                 Management  Documant

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