United States
          Environmental Protection    Science Advisory      EPA-SAB-EEC-95-004
          Agency         Board (1400F)       May 1995
x>EPA    An SAB Report:
          Future Issues in
          Environmental
          Engineering

          Report of Future Issues and
          Challenges in Environmental
          Engineering and
          Technology by the
          Environmental Engineering
          Committee

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U.S. Environmental Protection Agency
Region 5, Library (PL-12J)
77 West Jackson Boulevard, 12th Floor
Chicago, IL  60604-3590

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                                          May 25, 1995
  EPA-SAB-EEC-95-004
  Honorable Carol M. Browner
  Administrator
  U.S. Environmental Protection Agency
  401 M Street, S.W.
  Washington, DC 20460

                    Re: Environmental Engineering Futures Report

  Dear Ms. Browner:

  In July 1992, the Science Advisory Board (SAB) began an initiative, termed the Environmental Fu-
tures Project, to advise the Agency on ways to identify future environmental problems and provide the
SAB's perspective on emerging environmental issues. The SAB Executive Committee accepted the
request and formed the Environmental Futures Committee (EFC) to direct the effort. The EFC in turn
requested the standing committees of the SAB to address the charge for areas of their particular expertise
and interest, and to produce separate reports that would supplement the overall report on Environmental
Futures to be written by the EFC.

  The Environmental Engineering Committee (EEC), in response to the opportunity provided by the
EFC, chose four issues related to engineering that may emerge in the future. The EEC developed the
drivers, scenarios, consequences and recommendations for Agency actions related to each issue. The
EEC also developed an approach by which EPA could regularly scan the horizon for future issues. This
approach was used in part by the EEC to conduct a supplemental search for potential emerging issues.

  The four issues developed  in detail are:

    a)  Issue: How  can EPA actions foster environmental quality protection and improvements while
        helping to assure sustained industrial development in an increasingly competitive manufacturing
        economy?

        Recommendation: Agency decisions concerning clean production technologies should be
        carefully constructed and balanced so that there are benefits both to the environment and to
        U.S. industrial competitiveness. Flexibility in achieving the desired risk reduction at a facility
        could promote deployment of cleaner technologies to replace end-of-pipe control technologies.

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    b)   Issue: How can EPA best respond to increasing societal pressures for the redevelopment of
         urban industrial sites and remediated land while serving urban needs for environmental protec-
         tion?

         Recommendation: The Agency should ensure that appropriate technology is available and/or
         deployed to redevelop urban contaminated industrial sites and remediated land; this should be
         done in a manner that avoids significant environmental exposures and meets intracity needs for
         development, commerce, and conservation.

    c)   Issue: How can the Agency prepare to address threats posed to human health and natural re-
         sources by transient phenomena of natural origin in the face of increasing population and land-
         use pressures?

         Recommendation: The Agency should strengthen its capability and readiness to address potential
         environmental consequences of natural disasters associated with transient phenomena such as
         riverine floods, considering trends in population growth, and inappropriate land use. Associated
         planning and preparedness can help minimize the potential adverse impacts on natural resources
         and human health.

    d)   Issue: How can the Agency address insufficiency in the core technical competencies needed to
         address both existing and future environmental challenges? Core competencies can be defined as
         the essential and distinct scientific and technical capabilities that enable the EPA to fulfill its
         current and future missions.

         Recommendation: The Agency should systematically identify and examine the essential and
         distinct scientific and engineering capabilities (core competencies) needed to address technical
         aspects of its present and expected future mission and strengthen them where needed.

   This report describes these issues, their drivers, and their adverse consequences that could follow
without implementation of its recommendations or other mitigating actions.

   Based on its experience, the Committee developed a suggested methodology that it believes EPA
should seriously consider when it seeks to identify and analyze futures issues. The methodology should
consist of the following elements:

    a)   EPA should establish "lookout" panels involving experts within and outside the Agency.

    b)   Panelists should routinely scan their fields to provide observations about new or intensifying
         issues and  their consequences.

    c)   EPA staff should collect these observations then refer them back to the other panelists for com-
         ment.

    d)   Staff and panelists should select candidate issues using agreed-upon criteria.

    e)   EPA should analyze the selected issues  in terms of any existing scenarios and EPA goal state-
         ments.

    f)   EPA, with input from panelists, should recommend near-term actions based on projected futures.

   The Committee also identified eight possible additional representative technological concerns regarding
the future that warrant EPA attention:

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    a)   Fossil fuel depletion;

    b)   Major industrial accidents and/or terrorist activities;

    c)   Accelerating deterioration of urban infrastructure (e.g., pipelines for water, sewage, and fuels);

    d)   Extremely high cost benefit ratios of some environmental management strategies;

    e)   Recognition that environmentally contaminated reservoirs,  such as contaminated sediments, may
         pose greater risk than existing point discharges;

    f)   Recognition that available technology for the control of some newly recognized pathogens in
         drinking water may be inadequate;

    g)   Recognition that electromagnetic radiation from new sources may be a health threat;

    h)   Recognition that inappropriately deployed industrial ecology concepts can lead to increased
         human and ecosystem exposures.

   The SAB EEC appreciates the opportunity to scan the environmental future related to engineering and
looks forward to your reply to the resulting recommendations.
                                  Sincerely,
                                    .Genevieve M. Matanoski, Tlhair
                                  Executive Committee
                                 Dr. Isnwar P. Murarka, Chair
                                 Environmental Engineering Committee
                                                Futures (JommitteeT

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                                              EPA-SAB-EEC-95-004
                                                     May 1995
                 An SAB Report

 Future Issues in Environmental Engineering

    Report on Future Issues and Challenges in
Environmental Engineering and Technology by the
      Environmental Engineering Committee
                               U S Environmental Protection Agency
                               Region 5, Library (PL-12J)
                               77 West Jackson Boulevard, 12tn HOOT
                               Chicago, IL  60604-359Q
                   Science Advisory Board
               U.S. Environmental Protection Agency
                   Washington, DC 20460

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                                     Abstract
    In a July 16,1993, memorandum, EPA asked the Science Advisory Board (SAB) to develop
a procedure for conducting a periodic scan of the future horizon, to identify some important
possible future developments, and to carry out in-depth examination of environmental impacts.
This report is the response of the Environmental Engineering Committee (EEC) to that request.

     In addition to making methodological suggestions, the EEC has recommendations for four
issues examined in depth. First, Agency policy options concerning clean technologies need to be
carefully constructed and balanced to benefit both the environment and U.S. industrial competi-
tiveness. Second, EPA should ensure development and use of appropriate technology to enable
the redevelopment of urban contaminated  industrial sites and remediated land. Third, EPA
should strengthen its capability and readiness to address potential environmental consequences
of natural disasters associated with transient events such as riverine floods in the face of trends
in population growth and land use. Fourth, EPA should systematically identify and examine the
essential  and distinct scientific and engineering capabilities (core competencies) needed to
address technical aspects of its present and expected future mission and strengthen them where
needed.
    Keywords: lookout panels, sustainability, disasters, redevelopment of urban land,  core
competencies

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                                      Notice
     This report has been written as part of the activities of the Science Advisory Board, a public
advisory group providing extramural scientific information and advice to the Administrator and
other officials of  the  Environmental  Protection  Agency. The Board is structured  to provide
balanced, expert assessment of scientific matters related to problems facing the Agency. This
report has not been reviewed for approval by the Agency and, hence, the contents of this report
do not necessarily represent the views and policies of the Environmental Protection Agency, nor
of other agencies in the Executive Branch of the Federal government, nor does mention of trade
names  or commercial products constitute a recommendation for use.

     Seven reports were produced from the Environmental Futures Project of the SAB. The
titles are listed below:

  a)  Environmental Futures Committee                              EPA-SAB-EC-95-007
     [Title: "Beyond  the Horizon: Protecting the  Future with Foresight,"  Prepared  by the
     Environmental Futures Committee of the Science Advisory Board's Executive Committee.]

  b)  Environmental Futures Committee                            EPA-SAB-EC-95-007A
     [Title: Futures Methods and Issues, Technical Annex to the Report entitled "Beyond the
     Horizon: Protecting the Future with Foresight," Prepared by the Environmental Futures
     Committee of the Science Advisory Board's Executive Committee.]

  c)  Drinking Water Committee                                   EPA-SAB-DWC-95-002
     [Title: " Safe Drinking Water: Future Trends and Challenges," Prepared by the Drinking
     Water Committee, Science Advisory Board.]

  d)  Ecological Processes and Effects Committee                  EPA-SAB-EPEC-95-003
     [Title: "Ecosystem Management:  Imperative  for a  Dynamic World,"  Prepared  by the
     Ecological Processes and Effects Committee,  Science Advisory Board.]

  e)  Environmental Engineering Committee                        EPA-SAB-EEC-95-004
     [Title: "Review of Environmental Engineering  Futures Issues," Prepared by the Environ-
     mental Engineering Committee,  Science Advisory Board.]

  f)  Indoor Air and Total Human Exposure Committee                EPA-SAB-IAQ-95-005
     Title:  "Human Exposure Assessment: A  Guide  to Risk Ranking, Risk Reduction and
     Research Planning," Prepared by the Indoor Air and Total Human Exposure Committee,
     Science Advisory Board.]

  g)  Radiation Advisory Committee                                EPA-SAB-RAC-95-006
     [Title: "Report on Future Issues  and Challenges in the Study of Environmental Radiation,
     with a  Focus Toward Future Institutional Readiness  by the Environmental Protection
     Agency," Prepared by the Radiation Environmental Futures Subcommittee of the Radiation
     Advisory Committee, Science Advisory Board.]

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                           U.S. Environmental Protection Agency
                                     Science Advisory Board
                           Environmental Engineering Committee
                                   Members and Consultants
Chairman                                            Dr. Wm. Randall Seeker,b Senior Vice President, Energy &
    Dr. Ishwar P. Murarka, Business Development Manager,  Environmental Research Corp., Irvine, CA
Environmental and Vital Issues Business Unit, Electric Power
Research Institute, 3412 Hillview Avenue, Palo Alto, CA
Dr. Walter M. Shaub,c President, CORRE, Inc., Reston, VA
Members
Dr. Linda M. Abriola, Associate Professor, Dept. of Civil and
Environmental Engineering, University of Michigan, Ann Ar-
bor, MI

Mr. Richard A. Conway, Senior Corporate Fellow Union Car-
bide Corporation, So. Charleston, WV

Dr. James H. Johnson, Jr., Professor and Chairman, Dept. of
Civil Engineering, Howard University, Washington, DC

Dr. Wayne M. Kachel, Director, Martin Marietta Corporation,
Oak Ridge, TN

Dr. Jo Ann Lighty, Associate Professor, Department of Chemi-
cals and Fuels Engineering, University of Utah, Salt Lake City,
UT

Dr. James W. Mercer, President, GeoTrans, Inc., Sterling, VA

Dr. Frederick G. Pohland,3 Weidlein Chair of Environmental
Engineering Department of Civil and Environmental Engineer-
ing, University of Pittsburgh, Pittsburgh, PA

Dr. Robert B. Pojasek, Corporate Vice President/Environmen-
tal Programs, GEI Consultants, Inc., Winchester, MA
Consultants
Mr. Theodore J. Gordon,d Retired, 23  Sailfish Road, Vero
Beach, FL

Dr. Hilary I. Inyang,6 President, Geoenvironmental Design Re-
search, Inc., Fairfax, VA

Mrs. Judith M. Mullins, Environmental and Energy Staff, Gen-
eral Motors Corporation, Detroit, MI

Ms. Lynne Preslo,6 R.G., Vice President, ICF Kaiser Engineer,
Oakland, CA

Dr. C. Herb Ward, Foyt Family  Chair of Engineering and
Director, Energy & Environmental Systems Institute, Rice Uni-
versity, Houston, TX
Designated Federal Officer
Mrs. Kathleen W. Conway, U.S. EPA, Science Advisory Board,
401 M Street S.W., Washington, D.C.
Staff Secretary
Mrs. Dorothy M. Clark, U.S. EPA, Science Advisory Board,
401 M Street S.W., Washington, D.C.
                                                      a author of Appendix C:
                                                      b author of Appendix D:
                                                      0 author of Appendix A:
                                                      d author of Appendix E:
                                                      e co-author of Appendix B:
                      Transient Phenomena
                      Core Competency
                      Manufacturing Sustainability
                      Futures Methodology
                      Redevelopment of Industrial Sites and
                      Remediated Land

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                                      Contents

1   Executive Summary	1
    1.1  Background	1
        1.1.1  Relevant Activities	1
        1.1.2 The Process Used	1
    1.2  Summary of Findings for the Four Developed Issues	1
        1.2.1  How Can EPA Actions Foster Environmental Quality	1
        1.2.2 How Can EPA Best Respond to Increasing Societal Pressures for the
              Redevelopment of Urban Industrial Sites and Remediated Land While
              Serving Urban Needs for Environmental Protection?	2
        1.2.3 How Can the Agency Prepare to Address Threats Posed to Human
              Health  and Natural Resources by Transient Phenomena of Natural
              Origin in the Face of Increasing Population and Land Use Pressures?	2
        1.2.4 How Can the Agency Address Insufficiency in the Core Technical
              Competencies Needed to Address Both  Existing and Future
              Environmental Challenges? Core Competencies Can Be Defined as
              the Essential and Distinct Scientific and Technical Capabilities that
              Enable the EPA to Fulfill Its Current and Future Missions	2
    1.3  Other Possible Scenarios	3
    1.4  Lessons Learned on Methodology	3

2   Introduction	4
    2.1  The Charge	4
    2.2  Committee Process	4
    2.3  Coordination	4

3   Output of the Process	5
    3.1  Methodology	5
        3.1.1  "Expert Panel" Approach and "Brainstorming"	5
        3.1.2 Narrowing the List of Issues	5
        3.1.3 Trends, Drivers, Scenarios, Consequences and Mitigation Analyses	5
        3.1.4 Guidance	6
    3.2  Results	6
        3.2.1  Issue #1: Environmental Protection and  Manufacturing Sustainability	6
        3.2.2 Issue 2: Redevelopment of Industrial Sites and Remediated Land	8
                                            IV

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                                Contents (continued)

        3.2.3 Issue 3: Transient Events	9
        3.2.4 Issue 4: Core Competencies	10
    3.3. A Futures Methodology Approach	10
        3.3.1 Brainstorming and Criteria-based Selections	11
        3.3.2 Selecting an Approach	12
        3.3.3 A Candidate Futures Issues Analysis Approach	12
        3.3.4 Pilot Test of Issue Identification	12

4.   Summary and Recommendations	14
    4.1  Remarks Specific to Issues Analyzed	14
    4.2  Other Findings	14
    4.3  General Remarks	14

5.   References	R-1

Appendices
A   Manufacturing Sustainability	A-1
B   Redevelopment of Industrial Sites and Remediated Land	B-1
C   Transient Phenomena	C-1
D   Core Competency	D-1
E   Futures Methodology	E-1

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                                        Executive Summary
1.1     Background

1.1.1    Relevant A ctivities
    In a July 16, 1993, memo to Administrator Browner, Mr.
David Gardiner, Assistant Administrator, Office of Policy Plan-
ning and Evaluation, requested that the Science Advisory Board
(SAB) assist in the continued development of EPA's capacity to
anticipate environmental problems,  issues  and opportunities.
The SAB accepted this request and established an SAB Com-
mittee, the Environmental Futures Committee (EFC), to under-
take  this effort.  The EFC  was responsible for producing an
overall report. Each of the SAB standing committees were
invited to contribute in their areas of concern. The Environmen-
tal Engineering Committee (EEC) of the SAB accepted this
assignment and undertook the following charge:

    a)  develop a procedure for conducting scans of possible
        future developments  that will affect environmental
        quality and the nation's ability to protect the environ-
        ment;

    b)  identify important possible future developments;

    c)  select a limited number of possible  future develop-
        ments for in-depth examination;

    d)  draw implications for EPA and recommend actions for
        addressing them.

    This is an EEC consensus report. To stimulate ideas for the
report, individual authors prepared background papers on each
major issue discussed in the  consensus portion of the EEC
report. The EEC incorporated some, but not all, material from
the appendices in this report.

1.1.2    The Process Used
    The EEC used a multistep process, including:

    a)  Brainstorming by  EEC members and consultants to
        identify about 30 environmental issues related to tech-
        nology development that could become increasingly
        important in the next 5-30 years.

    b)  Selection of four important future environmental is-
        sues for further discussion and writing:

        1)   the impact of EPA striving to balance environ-
            mental protection and sustainable manufacturing;

        2)   societal pressures for the redevelopment of urban
            industrial sites and remediated land;

        3)   threats posed to human health  and natural  re-
            sources by transient phenomena of natural origin;
           e.g., riverine floods; and

       4)  EPA core technical (scientific and engineering,
           inclusive of research) competencies.

    c)  Examination of each of the four issues in terms of:

       1)  the current situation;

       2)  driving influences or trends;

       3)  future scenarios;

       4)  key findings, by scenario analyses; and

       5)  opportunities to mitigate consequences of adverse
           scenario outcomes and encourage positive out-
           comes.

    The degree of analysis and assessment needed to rank the
issues was considered to be beyond the scope of this Committee
effort. However, the four issues selected were of sufficient
merit to meet the project objectives.

    Concomitantly, the EEC developed an approach by which
EPA could  regularly scan the horizon  for similar emerging
issues. It  then conducted a supplemental search for emerging
scenarios  and identified several more examples.

1.2   Summary of Findings for the Four
       Developed Issues
    The following major findings for each of the four selected
issues are the basis for the Committee's recommendations to
EPA.

1.2.1    How Can EPA Actions Foster
         Environmental Quality Protection
         and Improvements While Assuring
         Sustained Industrial Development in
         an Increasingly Competitive
         Manufacturing Economy?


       Organization for Economic Cooperation and Devel-
   opment (OECD) member nations increasingly employ a
   negotiated compliance style of regulation that establishes
   environmental targets and enables flexibility in how they
   will be achieved. (Government Policy Options to Encour-
   age Cleaner Production and Products in the 1990s (OECD,
   1992)). This approach may also promote opportunities
   for source reduction in the U.S., encourage development
   of cleaner technologies, and may improve industrial com-

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   petitiveness. Therefore, the EEC recommends that EPA
   consider this approach in developing policy options con-
   cerning clean technologies; options need to be carefully
   constructed and balanced to benefit both the environment
   and U.S. industrial competitiveness.
    Increase in industrial production can increase wastes. Con-
tinued heavy reliance upon command and control, end-of-pipe
or specified regulatory compliance requirements on a single-
medium, single-point source basis can adversely impact the
development and deployment of the cleaner technologies. One
instance in which this can occur is when a facility wishes to
completely eliminate a point-source air emission by installing a
new process, but receives no emission credit for use elsewhere
in the facility for reducing emissions well below standards
required by regulations. Cleaner technologies are expected to
play a crucial role in achieving reductions in pollution sources.
Small- and medium-sized enterprises find it difficult to com-
pete, comply  with regulatory requirements, and invest in the
development of cleaner technologies.

1.2.2   How Can EPA Best Respond to
         Increasing Societal Pressures  for
         the Redevelopment of Urban
         Industrial Sites and Remediated
         Land While Serving Urban Needs for
         Environmental Protection?
       The scarcity and high cost of land in urban areas,
   coupled with increasing urbanization of the U.S. popula-
   tion, will increase the pressure to redevelop abandoned
   industrial sites and remediated land. Therefore, the EEC
   recommends EPA consider policies that encourage effi-
   cient and timely redevelopment of such sites in an envi-
   ronmentally responsible  manner that prevent adverse
   exposures. Such policies have the potential to improve the
   quality of the urban environment, promote commerce,
   and postpone or reduce development of other land re-
   sources.
    Many  of the abandoned industrial  sites and remediated
land, which are not used currently, will need to be redeveloped
for use by the growing population in metropolitan areas. Due to
perceived and/or real risks in using these lands, redevelopment
of these sites is not currently occurring at a pace appropriate for
future needs. There is a need to examine both the technical and
the policy issues so that redevelopment of these lands can be
achieved without adverse exposures to contaminants. EPA has
the opportunity to make a concerted effort to formulate policies
and develop  technical support schemes for integrating site
redevelopment issues into current and future regulatory actions.
1.2.3   How Can the Agency Prepare to
         Address Threats Posed to Human
         Health and Natural Resources by
         Transient Phenomena of Natural
         Origin in the Face of Increasing
         Population and Land Use
         Pressures?
       Transient phenomena, such as riverine floods, can
   adversely affect the environment and public health much
   more than do steady state situations. Changes in demog-
   raphy likely will increase the number of people affected
   by such phenomena. Associated planning can prepare
   and minimize the potential adverse impacts on natural
   resources and human health. Therefore, the EEC recom-
   mends that EPA strengthen its capability and readiness to
   address potential environmental consequences of natural
   disasters associated with such transient phenomena and
   assume a participatory role with other responsible agen-
   cies.
    In the absence of significant global climate change, there is
no evidence that the frequency of natural disasters will differ
significantly in the future from that of past occurrences. How-
ever, population growth, capital investment, and increased in-
tensity of land use and management in affected areas have led to
significantly increased potential for damage caused by natural
disasters.
    Recent events, for example, hurricane damage and extreme
cold weather in the eastern seaboard states; earthquakes, wild-
fires and mudslides in western coastal regions; and unprec-
edented  flooding in central and southeastern regions  of the
country, all severely impacted human health and the environ-
ment. Given  increasing intensity of land use and population
growth in susceptible areas, potential consequences could  be
severe unless means to anticipate, prevent or mitigate the envi-
ronmental consequences of natural disasters are established. In
its review, the EEC found little evidence that the environmental
aspects of natural disaster events are being  comprehensively
addressed in a prospective and coordinated manner.
1.2.4    How Can the Agency Address
         Insufficiency in the Core Technical
         Competencies Needed to Address
         Both Existing and Future
         Environmental Challenges? Core
         Competencies Can Be Defined as
         the Essential and Distinct Scientific
         and Technical Capabilities that
         Enable the EPA to Fulfill Its Current
         and Future Missions.
                                                             Core  competencies are the  essential and distinct
                                                          scientific and technical capabilities that enable an orga-
                                                          nization to fulfill its current and future missions. In the
                                                          future, the Agency will be under  increasing pressure to

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   address more efficiently multimedia pollutants from all
   sources. The Agency also will be  required to respond
   faster and effectively  to  broader environmental issues
   with limited total resources. Therefore, the EEC recom-
   mends EPA systematically identify its essential core com-
   petencies  to do  this work and strengthen them where
   needed.
    Responding to legislative mandates is necessary, but will
become increasingly difficult if maintenance and improvement
of the  underlying in-house core competencies are neglected.
Regarding future challenges, EPA should examine present tech-
nical core competencies in light of its understanding of future
needs and, as warranted, modify and/or augment present capa-
bilities so that EPA will have the necessary internal expertise to
address future needs.

1.3    Other Possible Scenarios
    Using part of the  Lookout Panel approach described in
Section 3.3.3 below, the Committee identified eight additional
concerns about the future to which EPA should give serious
attention. These are:

    a)   Will fossil fuel depletion lead to use of resources
        having a greater potential for environmental contami-
        nation and habitat loss?

    b)   Will major industrial accidents and/or terrorist activi-
        ties impacting the environment become major prob-
        lems for the Agency to address?

    c)   Will deterioration of urban infrastructure (pipelines for
        water,  sewage, and fuels) increase the potential for
        serious environmental incidents?

    d)   Will recognition of the high cost-benefit ratio of some
        environmental management  strategies lead to chal-
        lenges of EPA's programs?
    e)  Will environmental contaminant sinks, such as con-
        taminated sediments, be recognized as posing greater
        risk than existing point-discharges?

    f)  Will conventional technology for the control of newly
        recognized pathogens in drinking water be found to be
        inadequate?

    g)  Will electromagnetic radiation become widely recog-
        nized as a major health threat  as new technologies
        increase sources and exposure, and/or if evidence for
        adverse effects accumulates?

    h)  Will industrial-ecology  concepts  lead  to misuse of
        wastes by industrial/commercial sectors that cause more
        exposure problems than solutions?

1.4    Lessons Learned on Methodology
    The EEC became acquainted with various futures method-
ologies as it developed this report. Based on this experience, the
EEC  recommends  to EPA a candidate future issues analysis
approach that could be used to conduct continual scans of the
environmental horizon. The EPA should set up "Lookout Pan-
els" in areas of health, ecology, socioeconomics, and technol-
ogy. Panelists would periodically provide observations about
new or intensifying issues. After interaction and analysis, rec-
ommendations for near-term EPA actions would be developed.

    In this regard,  EEC and EEC consultants served as princi-
pals in a test exercise for the approach. Section 3.3  identifies
screening  elements for  the suggested futures  approach  that
emerged from the test exercise.

    Because  many future developments pose  environmental
threats, the EEC encourages EPA to further develop and imple-
ment  methods for  systematically scanning the  environmental
horizon. Such methods will help EPA identify important chal-
lenges at the earliest possible  time, and could improve EPA
readiness both with regard to its ability to anticipate  problem-
atic issues  and, as necessary,  to adopt appropriate strategies
aimed at preventing or mitigating possible adverse consequences.

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                                             2.   Introduction
2.1     The Charge
    A July 16, 1993, memo from Mr. David Gardiner, Assis-
tant Administrator for the Office of Policy, Planning and Evalu-
ation (OPPE) to EPA Administrator Carol Browner requested
that the Science Advisory Board (SAB) assist in the  continued
development of EPA's capacity to anticipate environmental
problems, issues and opportunities.

    The SAB accepted the request, and formed an Environmen-
tal Futures Committee (EEC) to lead the effort. The  Futures
Project appeared  to be a logical extension of the SAB's 1990
report, Reducing Risk (EPA, 1990), which stressed the impor-
tance of identifying future potential risks to human health and
the environment.

    The Environmental Futures Committee asked all the SAB
Standing Committees to assist with this  effort by developing
their own approaches, using scientific and technical expertise
to:

    a)  evaluate baseline information and trends, identifying
        issues that  may be expected in the  future to have
        increasing impacts on human health and  the environ-
        ment;

    b)  focus on one or more relevant issues; and

    c)  suggest a procedure by which future environmental
        concerns can be recognized at an early stage.
2.2     Committee Process
    At its October 28-29, 1993, meeting, as described in Sec-
tion 3, the Environmental Engineering Committee (EEC) first
conducted a brainstorming session and then narrowed their
deliberations to three technical issues. A fourth, crosscutting
issue was added later, as was a commentary on methodology.
Initial writing assignments and schedules related to completion
of a draft report were established. Designated authors prepared
reports that addressed drivers, scenarios, consequences of sce-
narios, and mitigation of potential impacts. Initially a subset of
the EEC, the Environmental Futures Writing Subcommittee,
was responsible for drafting the report. However, as interactions
with the EFC progressed, the report changed to an extent that it
became a product of the entire EEC.

    The EEC then held three publicly announced  conference
calls followed by public meetings in February and March 1994.
At these meetings the EEC identified elements for the compos-
ite report, summarizing the process, outcomes, and recommen-
dations. (The EEC members and involved consultants are shown
in the roster at the front of this report.) The EEC approved  the
assembled report and submitted it  to the EFC for review and
vetting on behalf of the SAB Executive Committee.

2.3     Coordination
    Close coordination with the EFC was achieved by partici-
pation of the initial writing-group chair and vice-chair in EFC
meetings where they interacted with invited "futurists" and
other experts. Coordination with OPPE was achieved by invit-
ing representatives to attend EEC meetings and participate in
conference calls.

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                                       3.  Output of the Process
3.1     Methodology
    After considering a number of options, the EEC settled on
an approach to its Futures Project that led to relatively rapid
issue selection and a period for preparing and discussing reports
on the selected issues. The remainder of Section 3.1 discusses
the EEC's initial approach.

3.1.1    "Expert Panel" Approach and
          "Brainstorming"
    On October 28, 1993, the EEC identified future challenges
with as-yet unanticipated consequences. The discussions were
free ranging, i.e., not restricted to specific committee expertise.
On October  29, 1993, after  an opportunity for reflection  and
further thought, the EEC revisited the initial brainstorm  list.
Using the collective expertise of the EEC, members developed
an unprioritized listing of issues that could present future chal-
lenges with possible surprises to the Agency.

    Subsequently,  and with the  help of a consultant more
familiar with futures work, the EEC ultimately arrived at—and
recommends to others—a related, but methodologically more
formal, approach for issues selection, the elements of which are
discussed in  Section 3.3 of this report.

3.1.2    Narrowing the List of Issues
    Recognizing practical limits of time,  expertise  and re-
sources, the EEC developed the following "filtering" criteria to
establish a set of issues to address via subtask writing assign-
ments:

    a)   Is this a  new  issue? (i.e., likely to  necessitate new
        actions or changes in what EPA is now doing)

    b)  Is the issue credible?

    c)   Does the issue focus on science/technology that can be
        effectively addressed by expertise of the EEC?

    d)  Are there critical uncertainties that should be addressed?

    e)   Is the impact of the issue potentially large?

    f)   Are potential consequences understood?

    g)  Is the current infrastructure of environmental protec-
        tion adequate to address the issue?

    h)  Is the issue redundant to others on  the  list, or  can
        common  issues be categorized into one topical issue
        that includes the original  issues?

    By aggregating common issues under broader subject  cat-
egories, applying screening criteria, and further discussion, the
EEC narrowed the original brainstormed list to three. A fourth
was added at the time of the first Subcommittee conference call.

    a)  Issue #1: EPA's actions that could foster environmen-
        tal quality protection and improvements while assur-
        ing the sustained industrial  development in  a
        competitive manufacturing economy.

    b)  Issue #2: EPA's best response to increasing societal
        pressures for the redevelopment of urban industrial
        sites and remediated land while serving urban needs
        for environmental protection.

    c)  Issue #3: EPA's preparedness to address threats posed
        to human  health and natural  resources  by transient
        phenomena of natural origin.

    d)  Issue #4: EPA's need to regularly evaluate core techni-
        cal competencies to address both existing and future
        environmental challenges. Core competencies are de-
        fined as "the essential and distinct scientific and tech-
        nical capabilities that enable  the EPA  to fulfill its
        current and future missions."

    The  EEC  did  not attribute  an over-arching, prioritized
importance to the four selected issues to the exclusion of other
potentially significant environmental issues related to engineer-
ing and technology. Hence,  the EEC recognized that there, no
doubt, are other issues of considerable importance to the Agency
that could have been addressed. Indeed, in the latter stages of its
work, the EEC identified eight additional future scenarios re-
lated to technology  that should be of concern to EPA (Table 4).
A more comprehensive analysis and assessment by EPA, be-
yond the scope of this effort, would be necessary to establish
national prioritization of these and other possible technological
issues.
3.1.3
Trends, Drivers, Scenarios,
Consequences and Mitigation
Analyses
    A single author, at times using some material supplied by
others, prepared background reports for each issue. In develop-
ing the reports, authors relied on their own expertise, consulta-
tions (with Agency staff, other SAB committee members, and
committee consultants), literature resources, Agency assistance
(material resources), and other resources.

    Attached as appendices are the individually authored back-
ground papers on each major issue discussed in this consensus
portion of the EEC report. This material was most useful in
providing a starting  point and  stimulating  ideas.  The  EEC

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incorporated part, but not all, of the concepts presented in the
appendices in this consensus report.

    Appendix A
    Manufacturing Sustainability by Dr. Walter Shaub

    Appendix B
    Redevelopment of Industrial Sites and Remediated Land
    by Dr. Hilary I. Inyang and Lynne Preslo

    Appendix C
    Transient Phenomena by Dr. Frederick G. Pohland

    Appendix D
    Core Competency by Dr. Wm. Randall Seeker

    Appendix E
    Futures Methodology by Mr. Theodore J. Gordon

    The efforts of these authors are very much appreciated.

    The authors examined the issues in terms of drivers and
trends associated with drivers. (Information about drivers and
trends specific  to each issue can be found in the appended
individual reports.)  Authors used these drivers and trends to
construct futures scenarios, expose consequences, and suggest
methods of mitigation.

    a)   Drivers:  identification of drivers (e.g., rate of waste
        generation) that lead  to potentially adverse human
        health and environmental impacts. The authors identi-
        fied drivers for each of the issues.

    b)   Trends: an analysis of current trends in activities that
        relate ultimately to impacts to human health and the
        environment.  The analysis of each issue included an
        examination of current trends, and, via scenario devel-
        opment, an examination of possible future trends.

    c)   Scenarios: models of plausible "futures" (e.g., what if
        current waste generation rates continue unabated?) and
        possible impacts that can arise due to the influence of
        drivers. Because the construction of  highly detailed
        scenarios that fully incorporate all possible drivers is
        an extremely complex, subjective and time-consuming
        undertaking, authors abstracted scenarios from litera-
        ture  resources or constructed  more  simplified sce-
        narios that were exemplary of possible drivers.

    d)   Consequences: consequences that arise due to poten-
        tial impacts (e.g., unchecked contamination of land by
        generated wastes). To the extent time and effort per-
        mitted, EEC authors carried out consequence  analysis,
        suggesting  possible outcomes of various scenarios.

    e)   Mitigation: analysis of potential impacts in order  to
        identify means to mitigate undesired consequences
        (e.g., means to prevent waste generation). For mitiga-
        tion analysis, EEC authors drew both on the expertise
        of EEC members and consultants, as well as literature
        resources.

3.1.4    Guidance
    The authors configured and analyzed scenarios using the
following EEC guidelines:
    a)   Develop/utilize scenarios "possible" in a 5- or 30-year
        time frame and for which Agency management prepa-
        ration, if desirable, is a reasonable expectation. For
        example, in the case of "transient phenomena" there is
        no point in evaluating a scenario that envisages the
        EPA having to deal with environmental consequences
        of a large asteroid impact upon earth, as the conse-
        quences cannot be reasonably addressed by EPA.

    b)   Scenarios should be "new," i.e., they should be repre-
        sentative of circumstances that could lead to environ-
        mental  challenges  that  the  Agency has  not yet
        adequately  addressed or would not  likely consider at
        this time.

    c)   There should  be logical reasons for constructing one
        scenario and not another. The basis upon which the
        scenarios have been constructed should be described
        and defensible. For example, examination of currently
        available information concerning various driving vari-
        ables may be the basis for constructing scenarios.

        An alternative approach may involve use of heuristic
        reasoning, "scientific intuition," or some other plau-
        sible basis.

    d)   For each scenario constructed and evaluated, possible
        impacts that could pose hazards to human health and
        the environment should be identified. These impacts
        should be  examined to understand possible conse-
        quences that may arise when and if the impacts occur.

    e)   Ultimately, through construction and evaluation, sce-
        narios should be able to reveal the readiness, now and/
        or in the future, of the Agency to implement desirable
        management practices that can mitigate or reduce ad-
        verse consequences or produce benefits associated with
        the selected scenarios.

3.2    Results
    The discussion below summarizes the issues studies.

3.2.1     Issue #1: Environmental Protection
          and Manufacturing Sustainability
    In its analysis, the EEC addressed both "sustainable devel-
opment" that does not lead  to degradation  of environmental
quality and environmental protection that  does  not lead  to
industrial uncompetitiveness. Governments at regional, national,
and international levels—and the private sector—are respond-
ing to the challenge of Sustainability by looking  for ways  to
address increasing threats to environmental quality and indus-
trial competitiveness—both in the near and long term.

3.2.1.1    Scenarios and Drivers
    For this analysis, the background paper used  by the EEC
relied heavily  on Government Policy Options to Encourage
Cleaner Production and Products in the 1990s, particularly the
following text, which identifies key measures of Sustainability
(Organization  for Economic  Cooperation  and Development
(OECD, 1992)).

       "...the  goals of  industrial policy can  be achieved
   while, at the same time, improving (or at least maintain-
   ing)  environmental quality and respecting the finite na-

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   ture  of the resource base as a function of time.  In  a
   national context,  key measures of sustainability would
   appear to be as follows:
    •   Gross Domestic Product (GDP) per capita in constant
        currency units to increase over time;

    •   ratio of GDP per capita to the quantity of a contami-
        nant of interest (e.g., NOx in the  air, generation of
        organic liquid wastes, inorganic heavy metals in water
        or products, pesticides  in soils, etc.) to increase over
        time at a greater rate than GDP per capita over time,
        and the contaminants of interest should decrease in
        absolute terms;

    •   the use of various raw materials (e.g., wood, water,
        iron ore, oil, coal, etc.) to be such that their depletion
        over time is reduced to an environmentally justifiable
        minimum;

    •   output of marketable goods and services per employee
        (labor productivity) to increase as a function of time;

    •   total job creation to increase over time; and

    •   industry to be able to retain or improve its competitive-
        ness with time if and when all of the foregoing condi-
        tions are met."

    Appendix A examines the current situation, trends based on
the current situation, future scenarios based  on possible future
trends, the concept of sustainability, and issues and  challenges
faced by the manufacturing sector of industry and regulations.
To explore future possible  environmental problems that pose
challenges to realizing sustainable development, the author
examined three  scenarios by comparing output data that de-
scribed  hazardous waste generation over a period  of  several
decades. One scenario assumed constant hazardous waste inten-
sities, a second assumed a high  peak and fall off to a constant
level, and a third had a lower peak due to the poorest countries
employing the cleanest of existing technologies. Appendix A
contains details.
       A key finding was that to benefit both the environ-
   ment and U.S. industrial competitiveness in the global
   marketplace, Agency decisions concerning clean tech-
   nologies need to be carefully constructed and balanced.
   One option found to be successful within the OECD is
   negotiated compliance.  In the U.S., this could include
   consideration of risk-reduction goals based on a multi-
   media, entire-facility basis. Carefully conceived EPA ef-
   forts to conserve resources and protect human health and
   the environment,  and at the same  time promote clean
   technologies, production processes,  and products, could
   meet both desirable regulatory objectives and enhance
   U.S. industrial competitiveness.
3.2.1.2   Discussion.
    The EEC subscribes to the findings and recommendations
of Reducing Risk (EPA, 1990). Its recommendations here should
be read in the context of a desire to foster risk reduction through
pollution prevention, which includes cleaner technologies.
    Assuring environmental protection solely by the manage-
ment of wastes generated in the future poses significant prob-
lems for the Nation; mitigation requires the development and
deployment of cleaner technologies. The U.S.  relies heavily
upon command and control, end-of-pipe, specified compliance-
oriented regulations. For reducing current emissions, continua-
tion of this practice can lead to expending more resources to
achieve the same degree of protection than would be needed if
waste generation were  reduced through the use of cleaner
technologies. Implementation of clean technologies should be
encouraged by specific incentives.

    In the  global marketplace, the U.S. share of end-of-pipe
environmental control technology is increasing. Data are not
available to determine whether the  U.S. is  having analogous
success promoting cleaner technologies and  production pro-
cesses (Office of Technology Assessment (OTA), 1992). How-
ever,  small- and  medium-sized businesses, which form a
substantial segment of the manufacturing industry, are experi-
encing growing difficulties competing in the international mar-
ketplace.

    EPA could adopt a  strategy for environmental protection
that emphasizes the primacy of risk  reduction, appropriate
regulatory  flexibility, willingness  to  negotiate  expectations
among all stakeholders, and opportunities to improve competi-
tive positioning of American manufacturing industry in the
global marketplace. EPA might choose to negotiate more fully
on how an industry will meet risk-based levels, recognizing that
an industry ought to have maximal expertise about its own
processes. For U.S. industries, the outcome  of such a strategy
could be improved market  share, strengthened ability to miti-
gate  future  environmental  threats, and promotion of source
reduction. Ultimately, environmental policy should recognize
that the nation's environmental and economic health are interre-
lated.

    In all three scenarios analyzed by  the author of Appendix
A, the quantities  of waste generated  increased, and it  was
difficult to achieve sustainability because:

    a)   The complexity, diffuseness, and uncertainty of risks
         associated with manufacturing technology, production
         processes, and products are increasing, and the mar-
         ketplace has globalized; and

    b)   Present trends in regulatory activity (e.g., single-me-
         dia, "brightline" standards for each source) could place
         U.S. industry in  a less competitive position in the
         future, with concurrent loss  of jobs and ability to
         renew capital stock needed to acquire cleaner  tech-
         nologies and production processes (OECD, 1992; OTA,
         1993; EPA, 1992).

    EPA should consider establishing a vision of sustainability
and adopt a creative approach that both demands appropriate
environmental performance and promotes cleaner technologies.

3.2.1.3   Possible Agency Actions
    To establish  such a vision of sustainability, EPA could
consider some of the ideas  for policy options discussed in the
documents used in preparation of Appendix A:

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    a)   Government Policy Options to Encourage Cleaner
        Production and Products in the 1990s,  Organization
        for Economic  Cooperation and Development, Paris,
        1992

    b)   Improving  Technology Diffusion for Environmental
        Protection, National  Advisory Council  for Environ-
        mental Policy and Technology (NACEPT), EPA, Wash-
        ington, DC, 1992

    c)   Industry, Technology and the Environment—Competi-
        tive Challenges and Business Opportunities, OTA,
        Washington, DC, 1993

3.2.2    Issue 2: Redevelopment of
          Industrial Sites and Remediated
          Land.
    The potential exposure of each segment of the U.S. popula-
tion to undesirable environmental stressors is location-specific.
Therefore the rate of growth and spatial distribution of popula-
tion within  a given region have indirect influences on environ-
mental exposures to various sources of pollutants. Present trends
in urban land use restrictions will increase pressure to use
abandoned  industrial and  remediated  sites. The prospect  of
human activity and occupancy at such sites raises environmen-
tal and human health concerns.

    Appendix B examines the current situation regarding aban-
doned industrial sites and remediated land use, Agency regula-
tory  policies  and practices, trends in redevelopment, future
scenarios based on possible future population trends, issues, and
challenges  faced by urban planners  in addressing land use
requirements, and the nature of and means to encourage appro-
priate redevelopment.

3.2.2.1    Scenarios and Drivers
    Two scenarios were investigated. The major driving factors
for/against  land redevelopment are population increase, socio-
economic trade-offs, legal  liability, risk acceptability, and ad-
vances in technology.

    In Scenario 1, inner city dwellers migrate to suburban areas
and greener sites. The driving factors are infrastructure decay in
inner city areas, increase in crime rates that may be influenced
by higher unemployment rates in densely populated centers,
and greater availability of white-collar employment opportuni-
ties in suburbs. This scenario assumes that the middle class will
flee inner city areas to greener outskirts.

    In Scenario 2 the population of inner cities increases much
more rapidly, while the suburbs experience  only moderate
population  increases. The driving factors are high levels  of
immigration and high birth rates for population segments in the
low income bracket. New residents will initially prefer to settle
in large  urban areas, where  unskilled labor is still  in high
demand relative to rural and  suburban areas. Despite the ex-
pected increase in inner city population, the mobility of resi-
dents to the suburbs  could be impeded by  their lack  of
white-collar skills and financial resources.

    The  two scenarios each promote  the redevelopment  of
abandoned industrial sites and other sites that are classified as
being contaminated. However, the interactions among the driv-
ing factors are different. It is possible to construct other sce-
narios, including ones that are more optimistic about the quality
of American urban life,  but these  two were the only ones
addressed by the EEC.
       A key finding was that the Agency should ensure that
   appropriate technology is available and/or deployed to
   redevelop  urban contaminated  industrial sites  and
   remediated land; this should be done in'a manner that
   avoids problem environmental  exposures and meets
   intracity needs for development, commerce, and conser-
   vation.
3.2.2.2   Discussion
    This section briefly discusses the major driving factors for
land redevelopment: population increase, socioeconomic trade-
offs, legal liability, risk, and advances  in technology. More
detail is found in Appendix B.

    The Census Bureau's lowest series estimate of U.S. popu-
lation for the year 2030, the time frame that corresponds reason-
ably to the  Futures Project analysis period,  is 287  million.
United Nations estimates show that the percentage of global
population residing in cities of 4 million or greater is expected
to grow from 15.8 per cent in 1985 to 24.5 in 2025. Similarly,
the Census Bureau indicates that in 1990 roughly one-third of
Americans lived in central cities, one-third in suburbs, and one-
third in rural areas. It appears that a moderate influx of new
residents into  metropolitan areas and high birth rates among
urban residents could cause acute scarcity of space in the cities.

    Market forces will play a significant role in land redevelop-
ment in urban areas. Redevelopment activities usually revitalize
industries such as construction, insurance, hardware sales, and
road construction. Such revitalization leads municipal govern-
ments to cherish increases in construction because it reduces
unemployment rates. Therefore, municipal governments some-
times use incentives such as tax breaks to retain companies and
attract new ones. When municipal governments consider urban
infrastructure  improvement projects, "enterprise zones," and
the assessment of options for promoting sustainable  reuse of
abandoned  industrial sites, closed military bases, and other
government property, they also consider policy options involv-
ing changes in zoning codes and regulations, lending and insur-
ance practices, and future liability responsibility.

    Currently, liability concerns discourage potential develop-
ers from purchasing contaminated land for subsequent redevel-
opment. Some recent state and federal legislative proposals and
judicial decisions indicate that liability  concerns, which cur-
rently impede the transfer and redevelopment of former indus-
trial sites and other types of contaminated  land, may wane
within the next 30 years.

    At the present time, "health-based" cleanup standards have
not been achieved  in  a cost-effective  manner for  soil and
groundwater at many contaminated sites. Most types of technol-
ogy and techniques employed are relatively new, and uncertain-
ties remain. The EEC's position is that the risks to workers in
redeveloped facilities and to residents using remediated lamd

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should not be increased by the push for redevelopment, rather,
that cost-effective technology be applied/developed to reduce
exposure and thereby achieve the desired low-risk levels. Ex-
posure can be reduced by cleanup, barriers, and use restrictions.

    The Agency needs to review and revise, as needed, current
exposure and risk assessment methods for adaptation to rede-
velopment scenarios. Regulatory agencies  also should recog-
nize that there may be different and possibly fewer pathways of
exposure and risk at redeveloped inner-city and industrial sites.
For instance, since a public  water supply is reliably provided,
the ground-water pathway may not be of concern at such sites.

3.2.2.3   Possible Agency Actions
    Appendix B makes recommendations about data needs on
site inventory and spatial distribution, site redevelopment and
city/regional planning, exposure assessment and  site cleanup
levels, engineering mitigation schemes for structures, educa-
tion, research,  and in-house expertise.  Information  gaps are
presented in Table 1.

3.2.3   Issue 3: Transient Events
    Whether of meteorological or geological origin, natural
disasters cause  damage to the environment with the  extent of
damage being directly linked to population, land use practices
and structures. A transient phenomenon (e.g., earthquake, wild-
fire, volcanic eruption, landslide, flood, hurricane, rain storm,
tornado, heavy snowfall,  etc.) may convert a hazard into an
ecological or health and safety catastrophe.

    The magnitude and intensity of disaster events  are often
measured in terms of human health  and welfare, as well as
environmental  perturbations, a domain shared by EPA  with
other agencies.  Appendix C addresses issues related to Agency
responsibilities and preparedness, primarily in response to an-
ticipated environmental threats posed  to human  health and
natural resources by transient phenomena, vis-a-vis analysis of
a selected subordinate—challenges posed by riverine floods.
                                                             3.2.3.1    Scenarios and Drivers
                                                                 Two scenarios were investigated. Scenario 1 assumed that
                                                             a riverine flood of significant magnitude posing serious envi-
                                                             ronmental threats to a large (or smaller, but intensively utilized
                                                             or high population density) area occurs under circumstances in
                                                             which governmental units have not effectively established nec-
                                                             essary capability (preparedness) to address the problems and
                                                             potential consequences. Threats considered in a natural hazards
                                                             sequence include landslides, debris impacts, erosion, impacts to
                                                             power supplies, damage to underground utilities, disrupted wa-
                                                             ter supplies, chemical and other contamination, and sewage
                                                             releases.

                                                                 The second scenario was essentially the same as the first,
                                                             except that some level of preparedness at the national level by
                                                             EPA was presumed. The choice of scenarios was intended to
                                                             bring out a sense of the nature and potential severity of conse-
                                                             quences.

                                                                 Appendix C uses a natural hazards sequence tree to relate
                                                             disaster events, e.g., intense thunderstorm, to subsequent natu-
                                                             ral disaster phenomena, e.g., riverine flood, and to ensuing
                                                             adverse environmental impacts, e.g.,  contamination  of water
                                                             resources. This analysis was coupled with a detailed examina-
                                                             tion of pertinent literature  concerning actual and potential op-
                                                             portunities to establish and implement appropriate strategies to
                                                             prevent or mitigate impacts of natural disasters.
                                                                    A key finding was that environmental consequences
                                                                of natural disasters, such as riverine floods, are not being
                                                                adequately  addressed by established response protocols
                                                                and definition ofinteragency responsibilities. EPA should
                                                                consider analyzing the serious environmental challenges
                                                                posed by natural disasters, clearly identify its responsi-
                                                                bilities in this area, and proactively develop a program
                                                                that can anticipate, prevent or mitigate threats to human
                                                                health and the  environment for implementation by col-
                                                                laboration with appropriate agencies.
Table 1.   Urban Redevelopment Information Gaps
a)

b)


c)

d)

e)

f)
     Availability of data on population and spatial growth patterns of
     U.S. cities.
     Availability of data on the number and distribution of both closed
     industrial sites and remediated land relative to large population
     centers.
     Availability of centralized information resources on liability laws
     and trends relevant to site redevelopment.
     Existence of comprehensive schemes for integrating site
     redevelopment into city and regional plans.
     Existence of federal policies with adequate latitude for local
     junsdictional controls on redevelopment.
     Availability of technical schemes and research data for address-
     ing issues such as residual contaminant migration, exposure and
     risk assessments for site redevelopment, relevant cleanup
     standards, foundation systems in residually contaminated land,
     occupational health and safety, and environmental equity.
g)   Availability of expertise within the EPA to address these issues.
3.2.3.2   Discussion
    Although taken as a whole, there is no evidence that the
frequency of natural disasters will differ significantly  in the
future from that of past occurrences, population growth, capital
investment,  and increased  intensity of land use and manage-
ment  in  vulnerable areas have led to significantly increased
potential for damage caused by natural disasters. Indeed, steady
stressors, such as leachate from a waste disposal site, have
received more  attention than have the consequences of such
natural incidents, largely because they frequently have recog-
nizable and manageable spatial and temporal dimensions.

    Recent events, for example, hurricane damage and extreme
cold weather in the eastern seaboard states; earthquakes, fires
and mudslides  in western coastal regions;  and unprecedented
flooding in  central and  southeastern  regions of the country
severely affect human  health and the environment. Given in-
creasing intensity of land use and population growth in suscep-
tible areas, potential consequences to the health and environment
could be severe, unless means to protect these  areas  from
natural disasters are established.

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    A National Research Council report (NRC, 1991) proposed
a multidisciplinary program for the government without explic-
itly defining a role for EPA (There was no EPA representation
in the report's development.). The EEC finds that in the area of
protection of natural resources, research to improve prediction
of hydrologic hazards and  impacts on human and natural re-
sources, and coordination and standardization of data collection
stand out as potential initiatives related to the mission of EPA.

    The EEC recommends that EPA consider proactively ad-
dressing the environmental threats posed by natural disasters.
Benefits that should be sought include: reduction in life and
property losses; marginal land rehabilitation, zoning and con-
version; safeguards  against transient outcomes, e.g., flood-de-
rived contamination and its micro- and  macro-scale effects;
provisions for developing hazard-specific data bases and guid-
ance to the public and  private sectors; catalysis of research and
development for innovative remedial and preventive technolo-
gies;  and  improvement and use of EPA's capabilities as an
important  contributor to reducing adverse health and environ-
mental impacts of natural disasters and promoting protection for
at-risk natural and human populations.

3.2.3.3     Possible Agency Actions
    To strengthen its overall  state  of readiness, EPA could
adopt some or all of the options discussed in Appendix C. Table
2 presents some example options.

3.2.4     Issue 4: Core Competencies
    An important crosscutting issue that emerged is the Agency's
readiness  to  address technically foreseeable  events  that fall
within the mission of the Agency. Specifically, the concept of
"core competency" emerged, as defined below:

       The core competencies are the essential and distinct
   scientific  and  technical  capabilities that enable EPA to
   fulfill its current and future missions. Having core compe-
   tencies supports EPA's ability to approach regulations in
Table 2.  Example Agency Actions Related to Transient
         Events
a)    Establish an overall vision of a proactive program aimed at
     addressing environmental threats posed by natural disasters.
b)    Obtain data for analyses that address environmental and human
     health and welfare aspects of hazards. Such data should support
     risk assessments, mitigation and prevention, emergency
     response, prediction and warning. Data acquisition, validation,
     education and technology transfer could be established at EPA.
c)    Undertake an internal Agency-wide evaluation of current
     capabilities related to policies and associated programmatic
     efforts aimed at mitigating environmental threats posed by
     natural disasters.
d)    Analyze programs external to the Agency and identify relevant
     programmatic aspects of external programs that can interface,
     complement, or supplement internal agency efforts.
e)    Catalyze environmental disaster prevention and preparedness
     strategy among government agencies. As necessary, expand
     Agency capabilities and activities where current capabilities
     prove inadequate.
   an integrated, efficient,  cost-effective and harmonized
   manner and to address multi-pollutant and  multimedia
   problems  with the limited resources that will likely be
   available to the Agency.
    Appendix D provides commentary concerning the need, in
the context of environmental futures, for the Agency to system-
atically  identify, examine and appraise core technical compe-
tencies.  Core EPA engineering examples might be competency
for: the improved design and operation of water and wastewater
treatment facilities or hazardous waste incinerators and better
modeling of pollution transport through groundwater, surface
waters,  air, or the food-chain. More complete listings can be
found in the SAB document Future Risk (EPA, 1988).
       A key finding is that EPA should systematically iden-
   tify its core  competencies and  strengthen them  where
   needed.
3.2.4.1   Scenarios and Drivers
    EEC did not use scenario and driver analyses for this issue,
rather it drew on the experience of its previous activities.

3.2.4.2   Discussion
    In the course of many reviews, the EEC has observed the
excessive  reliance  of EPA staff on  contractors  in areas of
science and technology that seem to be in areas of core compe-
tency. The need to attend to increasingly complex, lengthy, and
heavily compliance-oriented legislation may have placed a heavy
burden upon the Agency. Agency  attention is, therefore, fo-
cused on the development and implementation of regulations at
the expense of maintenance and improvement of in-house core
competencies.

    There are advantages—regarding both present and future
environmental issues—to attending to both regulatory activities
and underlying technical requirements. With regard to future
challenges, the Agency could undertake a careful examination
of technical core competencies and, as warranted, modify and/
or augment present capabilities, leveraging across other govern-
mental and private sector activities where appropriate.

3.2.4.3   Possible Agency Actions
    To enhance core competence for present and future needs,
EPA could  consider adoption  of  some  or all of the policy
options discussed in Appendix D and summarized in Table 3. In
general, EEC considers it advisable for the  Agency to system-
atically identify  and examine its technical  core competencies
and make a determination  regarding the adequacy of present
resources judged against those competencies needed to address
both existing and future environmental issues.
3.3.   A Futures Methodology Approach
    The EEC learned by doing and in so doing found other
approaches that could be usefully incorporated in future under-
takings of this nature. The EEC arrived at and recommends the
following future issues analysis approach for consideration for
use by EPA.
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Table 3.   Example Issues Related to EPA Core Competency
a)   As the lead government regulatory agency responsible for protection of the environment, the EPA must, at a minimum, be able to compre-
     hensively address technical aspects of complex environmental issues through strength in core competencies and ensure the technical
     merits of regulatory activities.
b)   EPA should identify and assess for gaps the adequacy of those technical core competency components already in place within the Agency
     in relation to strategic direction and guidance, as well as emerging issues.
c)   A critical element of core competencies is Agency research programs. Emphasis should be placed upon those activities that enable the
     Agency to: (1) identify key environmental indicators; (2) obtain sound scientific and engineering data; (3) ensure the availability of critically
     needed, monitoring capabilities; and (4) promote the development and deployment of cleaner technologies, production processes and
     products.
d)   The realization of sound, technical core competencies can enable the Agency to catalyze innovation. Moreover, the realization and
     identification of core competencies can uncover partnership opportunities with other agencies, industry, and academia.
e)   Technical core research programs should be integrated by striving to: (1) provide the impetus for development and deployment of innovative
     cleaner technologies; (2) provide sound technical support regarding regulatory activities of the Agency; and (3) seek to anticipate, identify,
     and productively respond to future environmental threats.
f)    EPA needs to work to ensure the optimum (cost-effective, efficient, dependable, and timely) realization of EPA technical core competency
     requirements necessitated by Agency missions and strategic direction and guidance, taking into account available opportunities to interface,
     supplement, or complement internal technical core competencies with technical competencies that are external to the Agency.
g)   The exercise in competency development is not limited to analyzing capabilities and responding to future needs. Rather, it helps to choose
     investments in future programs wherein there is a higher potential of being successful. Simply put, the exercise provides another dimension
     for making decisions, i.e., opportunity.
3.3.1     Brainstorming and Criteria-based
           Selections
    The EEC brainstormed to form an initial list of possible
environmental engineering issues that might be addressed in the
futures  study. EEC used criteria to shorten  the list to a few
significant, representative issues for a more in-depth study. The
EEC experience showed:

    a)   An expert committee process can identify potentially
         important future issues, but absent some constraining
         criteria, the list may include items of different levels of
         generality (e.g., domains  of issues, generic  issues,
         specific issues) that are difficult to compare.

    b)   Many of the items initially suggested for inclusion in
         the brainstormed list were, strictly  speaking,  not is-
         sues. They were, rather, domains within which any of a
         number of issues might be found. This led to a number
         of attempts to group issues and subsume others under
         more general headings.

    c)   The development of a formalized approach to score or
         weight issues is a challenging undertaking and  should
         be pursued both with attention to all stakeholders and
         in respect to a need to harmonize the process.

    Based on these findings, the EEC recommends:

    a)   Experts involved  in brainstorming and/or scanning
         sessions should be carefully selected and should repre-
         sent as comprehensive a range of experience as practi-
         cable. Expert participants in a brainstorming exercise,
         are, in a sense, the eyes and  ears of a "lookout"
         enterprise.
b)  Participants  should know the priority-setting criteria
    before they suggest future issues. Modifications to the
    proposed criteria set should be pursued until the set is
    harmonized. The following criteria could be used as an
    initial basis for development of a harmonized criteria
    set:

    Scope:  If the issue develops,  might  it affect many
    people  or a few?  All other  things being equal, one
    issue may be more important than another if it affects
    more people.

    Severity: If  the issue develops, might its effects be
    severe (the most severe effect being death or a species
    loss)?

    Novelty: Is the issue new, or has it already received
    considerable attention?

    Plausibility/probability/certainty: How might the is-
    sue develop? What are its chances of developing?

    Uncertainty: Are there crucial uncertainties that make
    an issue important?

    Irreversibility: If the issue is not addressed, might its
    consequence be (largely) irreversible?

    Imminence:  Is the issue imminent? All other things
    being equal, a near-term problem is more important
    than a longer-term one.

    Visibility:  Is the issue in the public eye? What are the
    ramifications for addressing the issue?

c)  Possibly, in some negotiated and agreed-upon manner,
    criteria can  be weighted. This  weighting should be
    discussed  before the actual nomination of issues. As
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        there is considerable disharmony regarding the merits
        of weighting schemes, it is essential to eliminate or at
        least minimize subjectivity in weighting decisions to
        the maximal extent practicable.

    d)  An alternative approach contemplates that items in the
        issues list be categorized more loosely, e.g., as high,
        medium or low priority.

    e)  To improve the efficiency of the process, when  an
        expert (or stakeholder) panel is  asked  to  nominate
        issues,  the  usual rules  for brainstorming  should  be
        adjusted; rather than opening up the discussion for
        whatever anyone has to say  in any form, the group
        should  be given some structural  (not content) guid-
        ance. For example, the instruction:

        "Please suggest important future issues for EPA. Limit
        your response to your own experience and background
        in making  these suggestions. Consider the criteria
        (listed). Please frame your input in the form of an issue
        rather than  a domain, and include a principal conse-
        quence in your statement."

    f)  To mitigate influences of one  individual upon another,
        to the extent possible, suggestions and discussions
        concerning candidate issues should allow for anonym-
        ity. However, some  process should be established to
        resolve ambiguities concerning the meaning or ramifi-
        cations of individual statements concerning issues.

    g)  As challenges to the Agency have a dynamic character
        (new observations and knowledge gives rise to new
        imperatives), the process of issue development should
        be repeated at intervals of six months, a year, or some
        other practical time frame.

3.3.2    Selecting an Approach
    If EPA undertakes futures analyses, it may wish to consider
the following:

    a)  To realize their full potential, scenarios, particularly
        quantitative  scenarios, involve great complexity and
        much time-consuming effort  to construct. [NB: Such
        an undertaking was  beyond the scope of the present
        initiative.]  Scanning the  environmental horizon  by
        "lookout" panels may be a more practical way to get a
        quick start.

    b)  In an Agency-wide undertaking, EPA can use sce-
        narios, for example: to trace chains of causality lead-
        ing to  the present;  to explore  unique  future
        developments and their consequences; to examine the
        implications of action or  inaction and the  ranges of
        possible outcomes; to explore the roles  of all stake-
        holders; and, perhaps most importantly, to further stimu-
        late imagination.

    c)  The "natural hazard sequence" diagram included in the
        transient phenomena appendix illustrates an approach
        to scenarios that has the benefits of displaying the full
        array of impacts flowing from a single cause, visually
        presenting the decision "branch points" at which policy
        intervention may be possible.
    d)  The methodology used  in the present exercise, al-
        though placing less emphasis on scenario utility, can
        be viewed as a prototype for an Agency "expert look-
        out panel," i.e., in which experts are asked, systemati-
        cally,  to identify important future issues, to select
        those  that appear to be most important through  suc-
        cinct and well-defined screening criteria, and to study
        those  of high priority. Based on the present exercise
        and retrospective examinations of the process, the
        Subcommittee recommends a framework for a second
        generation approach that the Agency might implement
        as a possible future issues analysis paradigm.

    As outlined below, the Agency can design and implement a
"lookout" system for detecting and analyzing incipient future
developments that might threaten the environment or provide
new policy opportunities  for the Agency. The  Subcommittee
suggests  that the system, at a minimum,  have the  following
characteristics:

    a)  draw input from a wide range of sources, considering
        diversity;

    b)  operate in a continuous rather than a "one-shot" mode;

    c)  have a memory, so that suggestions that are set aside
        today  for lack of data or interest can be reassessed in
        the future;

    d)  be quantitative, wherever possible;

    e)  be subject to scrutiny by people outside of the process;

    f)  have explicit goals; and

    g)  recognize that many futures are possible.

3.3.3    A Candidate Futures Issues
          Analysis Approach
    One approach would  be for EPA to set up "Lookout Pan-
els" in areas of health, ecology, socioeconomics, and technol-
ogy. Each panel would have some cross-discipline representation.
In addition,

    a)  The process would be conducted by EPA staff, but
        involve experts within and outside the Agency.

    b)  Panelists would be contacted periodically to scan their
        fields and provide observations about new or intensi-
        fying  issues and their consequences.

    c)  These observations would be collected and fed back to
        the other panelists for comment.

    d)  Candidate issues would be screened against agreed-to
        criteria. Surviving  issues would  be analyzed versus
        any existing scenarios and EPA goal statements.

    e)  Recommended near-term actions  for EPA based on
        project futures then would be developed.

3.3.4     Pilot Test of Issue Identification
    The  EEC  conducted  a  test run of the  early  steps in the
above Look-Out Panel Methodology and identified the issues
listed in Table 4 for further evaluation by EPA.
                                                         12

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Table 4.   Additional Technology and Environment Concerns
a)    Will fossil fuel depletion lead to use of resources having a greater potential for environmental contamination and habitat loss?
b)    Will major industrial accidents and/or terrorist activities impacting the environment reach crisis proportions and become a major focus for the
      Agency?
c)    Will accelerating deterioration of urban infrastructure (e.g., water, sewerage, fuels) increase the potential for serious environmental
      incidents?
d)    Will the high cost-benefit ratio of some environmental management strategies become recognized by the public leading to challenges to
      EPA's programs? The costs of environmental mismanagement or nonmanagement could become more recognized by the public, thereby
      either increasing the demand for traditional command and control responses, possibly at the expense of new and innovative pollution
      reduction and elimination strategies, or decreasing already proven effective strategies.
e)    Will environmentally contaminated reservoirs, such as contaminated sediments, be recognized as posing greater risk than existing point-
      discharges?
f)     Will conventional technology for the control of newly recognized pathogens in drinking water be found to be inadequate?
g)    Will electromagnetic radiation becomes widely recognized as a major health threat as new technologies increase sources and exposure,
      and evidence for adverse effects accumulates?
h)    Will industrial-ecology concepts lead to use of wastes by  industrial/commercial sectors that cause more problems than solutions?
                                                                 13

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                              4. Summary and Recommendations
4.1     Remarks Specific to Issues Analyzed
    For the four issues examined, the EEC developed the fol-
lowing serious concerns that need to be addressed by the Agency:

    a)  Agency decisions concerning clean production tech-
        nologies need to be carefully constructed and balanced,
        so that there are benefits both to the environment and to
        U.S. industrial competitiveness. Flexibility in achiev-
        ing the desired risk reduction at a facility could pro-
        mote deployment of cleaner technologies  to replace
        end-of-pipe control technologies.

    b)  The Agency needs to ensure appropriate technology is
        available and/or deployed to redevelop urban contami-
        nated industrial sites and remediated land; this needs to
        be done in such a way that avoids significant exposures
        and meets intracity needs for development, commerce,
        and conservation.

    c)  The Agency  needs to strengthen its capability and
        readiness to address potential environmental  conse-
        quences of  natural disasters associated with transient
        phenomena such  as riverine floods considering trends
        in population growth and inappropriate land use. Asso-
        ciated planning and  preparedness can help minimize
        the potential adverse impacts on natural resources and
        human  health.

    d)  The Agency needs to systematically identify and exam-
        ine the  essential and distinct scientific and engineering
        capabilities (core competencies) needed to address tech-
        nical aspects of its present and expected future mission
        and strengthen them where needed.

4.2    Other Findings
    a)  "Lookout Panels" are recommended to EPA in areas of
        health,  ecology, socioeconomics, and technology. Pan-
        elists would periodically provide observations about
        new or intensifying issues. After interaction and analy-
        sis, recommendations for near-term EPA actions would
        be developed. The EEC encourages EPA to improve
        further means for identifying issues of concern and
        establishing some agreed-upon criteria for assessing
        the relative urgency  and consequential importance of
        action to address these  issues.

    b)  The EEC, in  its  dry run of a portion of the Lookout
        Panel paradigm, identified another eight scenarios that
        may  benefit from further analysis by others. They
        appear in Table 4 and should be evaluated by EPA in
        terms of likelihood,  importance, and, if appropriate,
        mitigation.

4.3    General  Remarks
    The Agency  is commended for its foresight in undertaking
this initiative. It provided an opportunity to scan the future and
attempt to anticipate potential environmental threats that may
pose significant challenges to the Agency to address  problems
as they arise. Moreover, the members of the EEC thank the SAB
and Agency Offices staff for assistance, resources,  and time
commitments that have been useful in  the conduct  of this
initiative.

    The SAB/EEC initiative as carried out can serve as a pilot
element for the development of a productive process  for the
Agency in future undertakings of this nature. Although mem-
bers of the EEC found that scanning of possible futures was
challenging, it was only tractable under circumstances in which
its focus was limited to just a few issues. The downside of this
limitation of the SAB's futures project is the prospect  that some
issues of importance have been inadvertently overlooked.

    Should the exercise be taken up again by SAB, it would be
helpful if SAB Standing Committees would interact more at the
onset with all of the other SAB Standing Committees to enable
cross-comparison of issues, criteria,  approach, expertise, and
resources. In this manner, a more comprehensive integration of
ideas, inclusion of areas of importance, and more efficient use
of and access to resources, may be realized.

    While  the committee  found forecasting to be a  useful
exercise in addressing specific issues, a concomitant detailed
examination and analysis of current knowledge and  historical
and current trends is absolutely essential in  order to arrive at a
comprehensive view of environmental challenges and implica-
tions for Agency stance regarding both readiness and action
options.

    Regarding the issues it addressed, the EEC is encouraged
by the prospect  that the information generated may provide
useful advice to  the Agency. The EEC believes that progress
aimed  at addressing even a limited  set of these options can
enable the Agency  to move towards an  enhanced state of
readiness and anticipatory posture with regard to future devel-
opments.
                                                         14

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                                         5.  References
1   EPA. 1988. U.S. Environmental Protection Agency.
    Science Advisory Board, Future Risk. EPA-SAB-EC-
    88-040.

2   EPA. 1990. U.S. Environmental Protection Agency.
    Science Advisory Board, Reducing Risk: Setting Pri-
    orities and Strategies for  Environmental Protection.
    EPA-SAB-EC-90-021.

3   EPA. 1992. U.S. Environmental Protection Agency,
    NACEPT. Improving Technology Diffusion for Envi-
    ronmental Protection.
4   NRC. 1991. National Research Council. "A Safer Fu-
    ture—Reducing the Impacts of Natural Disaster," Na-
    tional Academy Press: Washington, DC, pp. 67, ISBN
    0-309-04546-0.

5   OECD. 1992. Organization for Economic Cooperation
    and Development. Government Policy Options to En-
    courage Cleaner Production and Products in the 1990s.

6   OTA.  1993. U.S. Office of Technology Assessment.
    Industry, Technology and the Environment—Competi-
    tive Challenges and Business Opportunities.
                                                 R-1

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          Appendix A
Manufacturing Sustainability
                by
     Dr. Walter M. Shaub, President
            CORRE, Inc.
            Reston, VA

           March 14,1994
            Prepared for
     Futures Writing Subcommittee
  Environmental Engineering Committee
        Science Advisory Board
  U.S. Environmental Protection Agency

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                     1. The Impact of Striving to Achieve Sustainability
                                       on  a Manufacturing  Ethic
A.      Introduction
    The global community has begun to take the view in regard
to sustainable development1'2 that economic  growth should
progress under circumstances that do not lead to degradation of
environmental quality. In response to the challenge to strive
towards sustainable development, governments at regional, na-
tional and  international levels,  and the private  sector have
begun to look both in the near- and long-term for ways to attach
increasing threats to environmental quality.

    This report examines the current situation, trends based on
the current situation, future scenarios based on possible future
trends, the concept of sustainability, issues, and challenges
faced by the manufacturing  sector of industry and EPA, the
nature of and means to encourage development and deployment
of cleaner technology, and possible options available to EPA to
bring about progress.

    While  the concept of sustainable development has been
discussed by numerous individuals and organizations, it is not
evident that there is a harmonized view of sustainable develop-
ment. In relation to the impact of striving to achieve sustainability
on a manufacturing ethic, a suggested3-4 expression of ability in
a practical context is that:

    ". . .the goals of industrial policy  can be achieved
    while at the same time improving (or at least maintain-
    ing) environmental  quality  and respecting the  finite
    nature of the resource base as a function of time. In a
    national context, key measures of sustainability would
    appear to be  as follows:

    •   GDP per capita in constant currency units to increase
        over time;

    •   ratio of  GDP per capita to the quantity of a contami-
        nant of  interest (e.g., NOX in the air, generation of
        organic  liquid wastes, inorganic heavy metals in water
        or products, pesticides in soils, etc.) to increase  over
        time at a greater rate than GDP per capita over time,
        and the  contaminants  of interest should ideally de-
        crease in absolute terms;

    •   the use  of various raw materials (e.g., wood, water,
        iron ore, oil, coal, etc.) to be such that their depletion
        over time is reduced to an environmentally justifiable
        minimum;
    •   output of marketable goods and services per employee
        (labour productivity) to increase as a function of time;

    •   total job creation to increase over time; and

    •   industry to be able to retain or improve its competitivity
        with time if and when all of the foregoing conditions
        are met."

    In the long term efforts aimed at development and utiliza-
tion of cleaner technologies in order to assure cleaner produc-
tion  processes and  cleaner products are seen as  a means  to
improve the prospect that environmental quality can be main-
tained or  improved.3 For the  manufacturing  sector of U.S.
industry, the challenge  of striving to achieve sustainability  in
the long term should lead towards the development and deploy-
ment of cleaner technologies, if while doing so, mechanisms are
created to ensure  that firms can remain competitive. In other
words, in concert  with  an evolutionary shift in industrial pos-
ture, EPA  must adjust its regulatory stance in order to encour-
age  cleaner production and  products  and to facilitate the
introduction of cleaner technology in the manufacturing sector
in a manner that does not harm U.S. industry competitivity  in
the global  marketplace.

    In the context of this report, cleaner technologies are to be
understood  as  those  technologies  that  can  enable
cleaner production and  products. Cleaner production is meant3
to reduce energy and natural resource dependent raw material
utilization per unit of manufactured product output while at the
same time production, marketing,  and disposal of (cleaner)
products takes place under circumstances in which undesirable
environmental perturoations (for example, releases of poten-
tially harmful contaminants) are held as low as practicable.

    Factors that influence the development and utilization  of
cleaner technologies include:3'4 government signals and actions;
raw material, energy, transport and waste disposal prices; atti-
tudes of management and labor, and public demand. Although
market penetration at present has not been substantial, cleaner
technologies are available, and efforts are underway to promote
innovative development and subsequent implementation of new
generations of cleaner technologies.2-5 Ideally, in a sustainable
world economy, it is important4 that these innovations should
not be economically disruptive, e.g., do not impair the competi-
tive position of those industries that perform in an environmen-
tally responsible manner.
                                                         A-1

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B.      The Existing Situation and Current
        Trends
    As an indication of the complexity of potential industrial
impacts, it is reported5 that:

    •   about 7 million chemical substances are known.

        about 100,000  are available on the market.

    •   these products  and other substances (chromium, cad-
        mium, etc.) are used in a growing number of consump-
        tion  or production  sectors: pigments  for paints,
        lubricants, fertilizers, food additives, stabilizers, clean-
        ing or anticorrosion agents, solvents, medicines, etc.

    •   EPA lists some 500 substances as hazardous, but  in
        practice scarcely more than 100 are covered by stan-
        dards [NB the EEC lists is about 30 items].

    It is reported5 that  among developed nations, in spite  of
measures taken, not only the quantity, but also the toxicity and/
or complexity of wastes  being  generated have continued  to
increase, and its processing still places a heavy financial burden
on the economy. Taken as a whole, the increasing worldwide
inventory of harmful or potentially harmful [solid, liquid, gas-
eous] wastes2" poses an  increasing threat to  environmental
quality. This circumstance severely challenges attempts to es-
tablish sustainable development.

    The present costs of controlling pollution outputs generated
can be enormous. A recent EPA cost assessment study reports6
that total direct costs of pollution control in the U.S. were nearly
2.1% of the Gross National Product (GNP) or, with investments
annualized  at 7%, ca $115 billion. Moreover,  most of these
expenditures were made in the private sector, with the largest
expenditures in the chemical, petroleum, primary metals, food
and paper industries. In addition,4 a recent U.S.  study suggests
that  about  3% of GDP  will be required to attain ambient
environmental goals by  the year 2005.

    It is evident that past practices have lead to enormous costs
to society, application of react and control practices, i.e., largely
end-of-pipe management, and are likely  to increasingly cost
society a significant portion of national wealth. A recent study5
states that prevention of waste formation or "reduction of waste
produced" must become a major thrust.

C.      Driving Variables
    It is reported5 that if present trends in organic chemical and
metals  processing  industries continue, 50%  of the  products
anticipated to be used in 15 year's time do not yet exist! The rate
of product generation with increasing diversity and complexity
that accompany reduction in the overall consumption of natural
resources, gives rise to  doubts as to whether there can ever be
systematic  control of their toxicity. Additionally, the recent
phase of industrialization has been characterized by marked
differentiation of risks:5  now less  probable, but potentially more
serious, more diffuse and varied, and more international. It is
unlikely that they can be effectively managed without a radical
change in traditional patterns of industrial  action.

    In sum, in regard to the manufacturing sector, major drivers
of concerns for actual and potential impacts upon human health
and the environment are the amount of wastes, and especially
their hazardous character, that are being generated and that,
absent actions to the contrary, apparently will be generated in
increasing amounts in the future.

D.      Scenarios of Future Impacts
    A recent  investigation of future scenarios of hazardous
waste generation has been reported.2 In view of the foregoing
discussions, it is relevant to environmental challenges posed by
activities within manufacturing sectors.

    The futures scenarios that was exercised, modeled hazard-
ous waste generation (WHz) as a function of time calculated as
the product of:2

    WHz = WHz/W x W/GNP x GNP/capita x Population

    Above, WHz/W represents the ratio, hazardous waste gen-
erated/material throughput of the economy; W/GNP represents
the ratio, material throughput of the economy/GNP; and GNP/
capita represents the ratio, GNP/capita. [NB an additional ex-
pression, "hazardous waste intensity" was defined  as the ratio
of annual generation of hazardous waste to GNP].

    A description of the three futures scenarios investigated are
presented below, while a more complete description and discus-
sion of the model and outcome of the exercise are to be found in
the cited reference:2

    Scenario  I: In this base-case scenario it was assumed that
global population trends continue  such that global population
reaches 8.5 billion  by 2025,  10  billion by 2050, and then
stabilizes thereafter due to improved standards of living, better
education, and birth control; recent medium-term trends in per
capita growth of GNP are assumed to continue throughout the
next century; and current  hazardous waste  intensities are as-
sumed to remain constant over the scenario period.

    Scenario 2: In this scenario, it is assumed that the develop-
ing world industrializes fast over the next fifty years; it assumes
the same population growth as Scenario 1; it is assumed that per
capita levels of GNP reach $20,000 on a global basis by the year
2040; and that thereafter, GNP per capita grows at ca 2% per
annum; hazardous waste intensities are assumed to  peak at
around 10 kg/$K at GNP levels of around  $4000 per capita.
Following this peak, hazardous waste intensities are assumed to
fall  away towards a constant level of 5 kg/$K by the time per
capita GNP reaches $15,000 per annum. This scenario is con-
sidered reasonably conservative with respect to "present" trends
in development.

    Scenario 3:  (Cleaner Growth) In this scenario, economic
growth is assumed  to  be  much slower  than in the previous
scenario; a global per capita GNP  of $25,000  is  assumed
attained;  development  is assumed to occur over the longer
period of a century. A peak value for hazardous waste intensity
of 5  kg/$K is realized, implying  that the  poorest countries
develop by employing the cleanest of existing technologies and
processes; following this peak, hazardous waste intensities are
assumed  to fall away towards a constant level of 0.5 kg/$K
(implies more than 90% reductions over existing hazardous
waste intensities—a major technological and economic chal-
lenge).
                                                         A-2

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    The outcome of these future scenarios, modeled according
to various inputs,2 indicated that global development based on
the use of existing technologies, processes, and standards and
consumption  patterns of the industrialized world can lead to
considerable increases in hazardous waste generation. Even the
stringent assumptions of a "Cleaner Growth" scenario predicted
cumulative, increasing hazardous waste generation and implied
increased environmental burdens over the next century. In sum,
regardless of what  scenario  was considered, a uniform  view
emerged: sustainability will require formidable efforts to achieve.

E.      Consequences
    As a precautionary note, the output of the model should
only be viewed as illustrative of possible outcomes and should
not be considered to be a predictor of actual outcomes. Given
the  great uncertainties  associated  with  data availability and
quality, simplifying assumptions, and other considerations, the
model only  has a qualitative  value. Nonetheless,  it has the
potential to serve as one possible  means to evaluate need for
redirection of manufacturing ethic focus in regard to sustainable
development objectives.

    Overt consequences of realization of the scenarios exam-
ined are that absent measures  to the contrary, the cumulative
amount of generated hazardous waste is anticipated to continue
to increase far into the future. In other words:

    The worldwide generation of wastes will increase in a
manner that will prove extremely difficult to manage.

    Adverse environmental impacts of manufactured products
will not be reduced to a justifiable minimum.

    Natural resource usage will be less than optimum.
    However, of perhaps greater concern, is the observation
that all of the model scenarios exercised predict cumulative
increases  in amounts of hazardous wastes generated in the
future. This outcome implies that in order to achieve sustain-
ability, policies aimed at preventing generation of wastes in the
manufacturing sector, especially hazardous wastes, likely must
be extremely carefully thought out and optimized.

    Absent carefully thought out actions taken to ensure waste
prevention and at the same time enable economic growth in an
environmentally sustainable fashion, the above discussions also
suggest the following possible additional implied consequences:

        The  competitive position  of  U.S. firms in a global
        marketplace could be eroded with consequent loss of
        marketplace penetration opportunities, lost employ-
        ment, etc.; for example, regulatory  policies may  be
        inappropriate:  attacking the problem of wastes gener-
        ated  via mandatory end-of-pipe controls may prevent
        the renewal of capital stock needed to acquire cleaner
        technologies.

        Improvement of standards of living could suffer due to
        otherwise avoidable generation of wastes and expendi-
        ture of more resources than absolutely  necessary per
        unit  of  actions taken to achieve a  desired level  of
        environmental protection.

        Absent a strong and predictable regulatory program
        that encourages movement towards development and
        deployment of cleaner technologies, industry may con-
        tinue to opt for more predictable end-of-pipe controls.

        Data and information needed to  ensure that environ-
        mental targets are being met will not be available.
                                                         A-3

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                          2.  Analysis of Issues and Mitigating  Actions
F.      Manufacturing Ethic:
    In reaction to concerns about the present situation and in
consideration of consequences that could arise in the event of
occurrence of scenarios described above, an ethic that has seen
growing support is that5 a desired way to manage waste is to
prevent its generation and avoid  unnecessary depletion of re-
sources and raw materials while reducing the potential for harm
to human  health and the environment to the maximum extent
practicable.  Waste prevention  can mitigate  inadequacies  of
treatment, storage, and disposal facilities.

    For the manufacturing sector this means evolution and
innovation in  respect to the development and utilization  of
cleaner technologies and production processes. At present, en-
vironmental  technology markets are dominated by end-of-pipe
control technologies.5 It is evident that significant changes in
the environmental technology market will have to take place in
order to shift from a pollution control strategy to a preventive
practical management strategy. Actual implementation of mea-
sures that can bring about evolutionary changes (i.e., implemen-
tation of cleaner technologies and production processes) in  the
manufacturing sector of industry has been slow, despite signals
of costs and  of potential impacts associated with present waste
generation practices. Response  to a growing demand for inte-
grated cleaner technologies and cleaner production processes
depends to large extent on the renewal of capital stock.

    This situation prevails at the present time, despite growing
evidence3-4-5  that pollution abatement and  less costly  use  of
resources are feasible and that clean industry and clean products
can have distinct competitive advantages in regional, national,
and international marketplaces. Moreover, technological evolu-
tion  and innovation are considered3-4 the key engines for job
creation and maintenance or improvement of standards of liv-
ing, and economic growth in general. The competitive position
of individual firms depends increasingly on technological change
and  adaptation.3 In turn, these technological changes affect
environmental quality and the natural resource base.

    The following issues2"4 must be addressed in order to  de-
velop a sense of the impact of sustainability on a manufacturing
ethic:

    •   A vision of sustainability must be established;

    •   A basis to achieve sustainability is needed;

    •   A means  to measure  accomplishment of objectives
        aimed at achieving sustainability is needed;
    •   Enforceable policy instruments are needed;

    •   Costs of achieving sustainability must be allocated in
        an agreed-upon manner;

    •   Economic characteristics of the private sector must be
        addressed; and

    •   Temporal aspects of sustainability must be addressed.

G.     A Vision of Sustainability
    Analogous to the efforts of other countries,3-4 EPA needs to
develop a vision of sustainability in order  to promote clean
production. Of necessity,  it must take the lead and negotiate,
publish, administer, implement, and adhere to a workable plan
of what a sustainable economy is meant to be within specified
time frames.

    Absent  a vision of  sustainability, EPA  may  encounter
difficulties both within the Agency and externally in regard to
prospects for implementation of measures aimed at accomplish-
ing objectives that can enable progress towards achieving sus-
tainable development.

    In anticipation that the strategic plan underlying a vision of
sustainability will  be  based upon the outcomes of detailed
negotiation,  it will be necessary  for the Agency to organize to
act efficiently in ways that reward integrated staff work, and
address a crucial need, regarding clean technology and produc-
tion for negotiated policy  stances based upon interdisciplinary
foundations. Further study  is recommended concerning plan
development and  its  relationship to technology evolution,
competitivity, and sustainability.

H.     Issues, Challenges and  Cleaner
        Technology
    The issues raised and that  should be addressed must be
viewed in the context of: challenges  raised  against achieving
sustainability; how actions mounted may impact the manufac-
turing  ethic of the  nation's industry; and how,  in turn, any
redirection of the  manufacturing  ethic may affect industrial
competitiveness in a global marketplace economy. A harmoni-
ous outcome is clearly desirable. It  is evident that industry,
EPA, and  others will be challenged to negotiate  among them-
selves agreed-upon, workable, and timely arrangements that
lead to demonstrable progress towards achieving sustainable
development and that at the same time can ensure a competitive
marketplace for environmentally responsible firms.
                                                         A-4

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    In view of challenges posed to the manufacturing sector, it
has been concluded that3'4 the utilization of cleaner technologies
that generate marketable products with concurrent reduction of
environmental impacts and natural resource use to justifiable
minima are of prime importance. The concept of prevention of
waste through the use of cleaner technology is considered to
signal5 minimization of waste at the manufacturing stage by
introducing improvements or changes in manufacturing pro-
cesses and manufacturing technology.

I.       Industrial Strategies
    The trend5 to date towards inclusion of environmental
considerations in industrial strategies: has been selective, mainly
involving end-of-pipe controls (driven by inappropriate indus-
tries); is installation-size and age dependent (with more progress
at  newer facilities); is sensitive to economic conditions in the
marketplace; has little effect on exports to developing countries;
and is influenced by the regulatory environment—regulatory
uncertainty drives risk aversion regarding use of new  "un-
proven" technologies.

    The role of clean production in enhancing, reducing, or not
affecting competition is important: policies for promotion and
deployment of cleaner products are neither conceivable nor
practical unless closely coordinated with industrial policy  in its
entire form;3-4 the process by which firms invest in new  tech-
nologies is of key importance. In brief, the prime aim of current
industrial policy seems to be3'4 to promote performance, im-
prove labor productivity, and increase the value added (wages
paid plus profit before interest and  depreciation) of as many
enterprises  as possible, i.e., to improve their overall competi-
tiveness.

    Process changes by a firm usually demand major capital
investments and cannot  be  undertaken "abruptly"; they are
instead  undertaken only  after carefully considering  whether
investment, installation, and  exploitation of new technology
will improve the competitivity of the firm in the marketplace. In
consequence,  such changes are evolutionary, and there is doubt3-4
as to  whether process changes can or should be mandated by
regulatory means.

    In regard to marketplace competitiveness,7 successful imple-
mentation of pollution prevention measures is critically related
to industrial profitability—firms are unlikely to pursue preven-
tive measures if profits are  not demonstrable at the level of
investment and industrial management decisions.

J.      Life Cycle Management Strategies
    The impact of striving to achieve sustainability on a manu-
facturing ethic will be realized through private sector initiatives
and those of international, national, and regional governments.
With respect to EPA this may mean the adoption of policies that
move the manufacturing sector in a direction that supports the
goal  of achieving  sustainability. Given  the  increasing
globalization of the marketplace, it would not be surprising if in
the long term  many of the policy options ultimately adopted by
the Agency are in fact somewhat global in aspect. In view of the
commonality  of  long-term  sustainability objectives,  this has
lead to proposals2"4 that consumer products should be fabricated
and placed on the market subject to an integrated life-cycle
approach justified by environmentally sound and efficient man-
agement principles.

    In order to address  these proposals a need exists for3-4
consumer products to be fabricated and placed onto the market
subject to an integrated life-cycle management approach that
aims to:

    •   minimize energy use/(unit of output).

    •   optimize efficiency of natural resources use.

    •   avoid, minimize, remove, and replace inherently toxic,
        corrosive, flammable and/or otherwise potentially harm-
        ful components.

    •   ensure that in an environmentally sound manner, dis-
        carded final products can be reused, reclaimed, re-
        cycled, or subjected to resource recovery.

    Measures aimed at understanding the potential use of cleaner
technologies  for preventing  waste generation  throughout the
life cycle of a product, inclusive of the manufacturing process,
have been and are being encouraged.2"4-5 8 However, consensus
concerning procedure for life cycle analysis has not been firmly
established. More data are needed in order to understand pos-
sible cost benefits of use of cleaner technologies.

K.     Materials Considerations
    Opportunities for employment of cleaner technologies that
can lead to cleaner production processes might be examined
within the  context of materials used in production  processes.
The choice of materials used in manufacturing activities is
strongly influenced2 by commodity prices or ease of transfor-
mation in manufacturing.

    The need for engineering  research aimed at development
and use of cleaner technologies, processes, and materials has
been advocated9 with the encouragement that general principles
must guide the search for substitutes for  materials with poten-
tially important environmental effects. Historic examples sug-
gest clear benefits of striving for cleaner technologies, production
processes, and materials.  It has been estimated that if substitu-
tion of lead by polyethylene for cable sheathing had not taken
place, consumption of lead by AT&T alone might have reached
a billion pounds per year.10

L.       Regulatory Issues
    It has been suggested that in the private sector,4 (if less than
required by current regulation) the lowest release levels attained
by the most progressive firms should become the new standard
for all firms in that sector after some 'reasonable' period. It is
argued that this approach can encourage innovation, since firms
seeking to  'set the standard' and increase their competitivity
would invest in cleaner production  processes to achieve this
goal—environmental performance would be directly related to
competition (competition-based standard setting) just as price,
quality, performance, reputation,  etc., are.

    Sectors of the industrial community that might otherwise
be regulated  may voluntarily act to achieve desired environ-
mental goals. Voluntary agreements are driven, for example, by
public and  political pressure, actions taken by competitors in
international  markets, or  that of tough and enforced laws and
                                                         A-5

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regulations. Voluntary industry agreements or initiatives can
have a measurable effect on potential environmental impacts.

    Development5 of the world market for clean technology
and pollution abatement equipment over the past decade has
been largely driven by strong regulations. Countries with the
most stringent environmental legislation have taken an early
lead in the development of environmental technology and are
leading exporters.2'5

    Despite the potential benefits of cleaner technologies rela-
tive to end-of-pipe treatment, their use has been relatively
limited due to market and regulatory failures: existing markets
for clean technologies are perceived to be relatively small; the
availability of cleaner technologies is limited  in some areas;
higher initial capital costs may be an inhibiting factor; risks and
uncertainties are associated with cleaner technologies;  manu-
facturers of end-of-pipe control technologies present obstacles
to marketplace entry;  and inappropriate regulations encourage
use of  end-of-pipe treatment systems.2 5

    As regulatory stance can impact costs of implementing
cleaner technologies, this too is an issue that must be addressed.
Currently,  two  forms of regulatory  style towards industrial
sector pollution sources  predominate:3'4 (1) 'specified' compli-
ance, which relies on literally interpreted, formal precise and
specific rules, tends towards regulatory uniformity, and often is
perceived as adversarial by the regulated community; and (2)
'negotiated' compliance, which emphasizes reliance upon gen-
eral, flexible guidelines, bargaining, allowance for situational
non-uniformities in application of regulations, and an accom-
modative stance toward  the regulated community.

    The  specified compliance style is  reported3'4 to be fairly
efficient  for implementing regulations  and establishing rapid
maximization of compliance.  However, this style antagonizes
the regulated community (which favors flexibility in a manner
that offers advantages  over  competitors) and  leads to high
compliance costs.  This  style  favors end-of-pipe control tech-
nologies  in order  to meet standards and in the long term  is
counterproductive: the purchase of end-of-pipe technologies
depletes capital that otherwise could be committed for cleaner
production technologies. Further progress involving implemen-
tation of cleaner technologies may require an alternative regula-
tory  'negotiated compliance'  approach inclusive of credible
environmental quality targets, which are specific, monitorable,
and verifiable.

    It appears that future progress aimed at achieving sustain-
ability  depends on utilization of cleaner production technology
and development  of cleaner  products" implemented in part
through regulations based upon negotiated compliance. The
development and use of a negotiated compliance model would
be through a systematic  consultative and decision-making pro-
cedure4 involving  all parties of interest and would emphasize
protection of all environmental media through accomplishment
of a negotiated set of environmental objectives, which if phased
in over a period of time might allow capital stock investments
with long lifetimes to be made rationally.3-4

    The  negotiated compliance model is seen as a means  to
encourage industry to move toward:3-4

    •   in-process recycling,  reuse, or recovery.
        changing segments of the productive process itself.

    •   substituting inputs, e.g., water-based paints instead of
        solvent-based.

    •   alteration of the end product itself,  e.g., reduction of
        mercury in batteries while still meeting electrochemi-
        cal requirements.

M.     Risk and Liability Issues
    The emergence of new materials, increased materials com-
plexity, and an increased extent of dispersion and diffusion of
many different products gives rise to increased uncertainties
regarding the nature of risks and of consequent liability. Risk
impacts generally are becoming more complex, more diffused,
and more uncertain.

    It is reported3-4 that there is a growing trend toward imposi-
tion of strict liability for damage due to environmental causes
and  that  uncertainties  in the  long-term concerning liability
limits for products and  waste  may catalyze industry  action
toward adoption and deployment of cleaner technologies with
their attendant advantages, e.g., less hazardous emissions, less
toxic components, etc. In other words, concerns about liability
may prove to be a strong motivator for clean production owing
to risk aversion of investors towards firms whose practices may
create unwanted or avoidable liabilities. On  the other hand,3-4
small-  or medium-sized firms may see  clean technologies as
riskier investments (not  'proven' technology) and opt for end-
of-pipe technology in strict liability situations.

N.     Economic Instruments
    Economic instruments can be used3-4 to:

        correct imbalances  that distort markets, e.g., proper
        scarcity pricing of natural  resources.

    •   correct failures, e.g., use of the environment as a 'free'
        dumping ground.

    •   ensure that public  structural projects, such as road
        building, pay their full environmental costs.

    Without comment concerning their desirability, numerous
economic instruments can be applied towards accomplishing
cleaner technology objectives, e.g., taxes, subsidies, user fees,
tradeable use rights, and time. In some instances, an issue to be
further addressed [e.g.,  through careful examination, testing,
and evaluation] is uncertainty concerning the actual efficiency
of various  economic instruments in the marketplace. It has,
however, been reported2 5 that subsidies or perverse incentives
(e.g., depletion allowances, agricultural production, and cheap
water)  have markedly resulted in  environmentally damaging
practices. Sole dependence upon economic instruments may not
go far in achieving sustainability  goals owing largely to the
volatility of demand and the elasticity of demand to prices of
differing sectors.3-4

    Although time will be needed before the results can be fully
evaluated,  success using economic incentives  has depended
upon the discounted cash flow cost of correcting an  environ-
mental problem being lower over time than  proposed charges
for continuing undesired behavior.3-4
                                                          A-6

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O.     Competitive Equity Issues
    The ability of an individual company to deploy  cleaner
production technologies is seen to depend on:4

    •   nature of the firm's industrial process

    •   size and structure of the firm

    •   attitudes and opinions affecting operation of the firm

    •   information available to the firm

    •   assets available for cleaner production technologies

    •   current regulations and their enforcement

    Complaints have been voiced3-4 that monetary costs of
environmental requirements are not uniform for certain  sectors,
small- or medium-sized enterprises, or even for some countries
as compared to others—certain firms argue that their inherent
competitivity  is harmed  by means of actions beyond their
control.

    One recommendation is that:3 "To achieve a "level  playing
field would require governments to perform very precise studies
of the average  cost differentials and to fashion policies aimed at
cutting any imbalances while at the  same time tilting towards
cleaner  production  technologies. In  other  words, once such
policies were  in force, by choosing cleaner production tech-
nologies, a firm could act to achieve a level playing field; by not
choosing such technologies, a firm might be at a disadvantage,
i.e., not receive tax relief, suffer surcharges, or whatever other
financial incentives or disincentives were associated with the
policy."

P.     Data, Indicators and Information
        Transfer
    The Agency  must evaluate its  readiness to  provide ad-
equate funding over time in order to encourage  clean produc-
tion.  It will  be  essential  that  research efforts  should be
monitorable and monitored continuously, with corrective ad-
justments  as needed.

    EPA must recognize that the public, to the extent provided
with reliable information concerning benefits of clean produc-
tion  technologies, may become  a more proactive  advocate of
their siting, deployment, and use. For comparison purposes, this
information base can be supplemented with information  per-
taining to  emissions inventories of existing technologies.

    A recent report3 indicates that: "Requirements for public
disclosure of industry information about pollutants generated,
especially toxic  chemical emissions, have been  cited as an
effective stimulus to  industry waste reduction programmes,
often involving identification and use of cleaner production. In
the U.S.,  for  example, public reporting  of releases of toxic
contaminants  as required  by law resulted  in several major
companies announcing drastic toxic waste reduction programmes
entailing a variety of measures including cleaner production
technologies."

    Information transfer and training assistance are considered
to be worthwhile undertakings in response to business concerns
and the  desire to foster utilization of cleaner production tech-
nologies.
    While industry leaders consider product quality issues to be
a driving force in use of cleaner technologies, producers do not
evidently hold a widespread belief that eco-labelling of prod-
ucts significantly influences the development and use of cleaner
production technologies.3'4

    There seems to be  general agreement  that in  order to
evaluate progress towards achieving sustainability, measurable
indicators must be developed.

    An approach that has been3-4 recommended is use of an
environmental auditing statement based on 'generally accepted
environmental auditing  procedures'  (GAEAP), analogous to
'generally accepted accounting procedures' used by auditors in
construction of financial statements found in annual reports of
corporations. While, policy could require report of feedstock
use,  energy  consumption, various types of  releases, etc., in
terms of product sent  to market, uniformity of reporting of
certain outcomes of a firm's auditing process should be:3

        "balanced against the need  to allow a firm's capital
        investment decisions to rely on its auditing process in
        order to help make confidential business choices lead-
        ing to clean production."

    The overall objective of information management should
be to foster good environmental performance and encourage
firms to:3-4

    •   invest in production facilities that  minimize, to  the
        extent practicable, the energy, raw materials, and re-
        leases per unit of output sent to market

    •   maintain these facilities properly

    •   compete to improve these production facilities in order
        to improve the state of the art for clean production of
        whatever outputs are to be marketed

    •   minimize the use of inherently hazardous  substances
        in marketable outputs or as intermediates

    Undoubtedly, additional  discussions, study, and testing
concerning a  variety of issues  (e.g., disclosure required of
industry and its costs and benefits) are  needed in regard to
GAEAP. It has  been recommended that main categories of a
GAEAP auditing process in a manufacturing  sector firm could
include:3-4

    •   environmental expertise and awareness

    •   corporate environmental policy and procedures

    •   knowledge of applicable laws,  regulations, and gov-
        ernment inspection and enforcement approaches

    •   internal good housekeeping audits

    •   compliance checks audits (compliance with existing
        rules)

    •   community outreach and awareness  and preparedness
        for emergencies at local level

    •   release reduction/minimization per unit of product sent
        to market and recovery of these assets

    •   training of managers and internal auditors
                                                          A-7

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    •   involvement of the labour force as an active participant

    •   assessment of opportunities to implement technologies
        to cut materials, energy, and releases per unit of prod-
        uct sent to market

    •   assessment of products sent to market for their poten-
        tial effect on humans and/or the environment

    •   reporting to corporate officers

    •   reporting to stockholders and/or the public

Q.     Encouraging Cleaner  Production
    In its report, Government Policy  Options  to Encourage
Cleaner Production and Products in  the  1990s, the OECD
recommended propositions for encouraging the development
and deployment of clean production:3

        "Countries should move toward developing a complex
        policy approach  [plan] that should include an agreed
        and reproducible means to measure the state  of the
        environment and natural resources base, identify po-
        tential and real sources of degradation, and monitor
        these parameters regularly.

        Information  obtained  from monitoring and auditing
        activities of a firm can encourage clean production.

        The  negotiated compliance model of  regulations  is
        likely to be better at promoting cleaner production than
        is the enforced compliance model.

        Environmental goals could be implemented such that
        the time to achieve them is negotiated with the regula-
        tory community.

        There needs to be an agreed upon and stable mecha-
        nism for measuring and reviewing the efforts of the
        regulatory approaches since regulatory design  is nei-
        ther perfect nor  can regulations  adjust themselves  to
        new events and situations.

        In order to promote clean production, direct tax con-
        cessions, accelerated depreciation, and subsidies for
        end-of-pipe controls should be phased  out fairly rap-
        idly.

        When cleaner production technologies and methods
        are proposed as part of a siting or licensing procedure,
        the time for granting or denying approval should be
        limited to some reasonable value.

        Careful application of economic tools can be used to
        'level the playing' field.

        Imposition of strict and joint liability for environmen-
        tal damage can be a very strong motivator for clean
        production.

        In addition to funds directed at manufacturing sectors,
        more funds  should be directed at how cleaner tech-
        nologies can be  implemented in the agricultural and
        transport sectors.

        A steady campaign to transfer information indicating
        the virtues of preventive environmental management
        to the public  (via  schools, news media,  industry
        circulars, etc.) should be established.

        It is desirable to establish  'hot-lines' to provide infor-
        mation regarding cleaner production technologies.

        Information about environmental and natural resources
        issues should be introduced into the curricula of educa-
        tional establishments at all levels from elementary to
        university.

        Governments should examine procurement  practices
        and requirements to  ensure that unintended impedi-
        ments  to clean production are eliminated  and that
        purchasing decisions and requirements are designed to
        encourage cleaner technologies and products."

    Based  on the above discussions, and  in a manner that
complements actions proposed elsewhere, EPA could seek to
foster any or all of the following recently recommended options
that support development and deployment of cleaner production
technologies:3-4

        Whatever negotiated  vision of sustainability is estab-
        lished, it must be measurable according to some agreed
        upon basis and applied to clearly identified environ-
        mental indicators of progress.

        The Agency should cooperate to ensure that near- and
        long-term plans for the economy should incorporate
        reasonable  time-frames  and  goals for achieving
        sustainability.

        Means should be available to identify any 'new' envi-
        ronmental problems that may emerge.

        Milestones and a timetable for achieving sustainability
        are needed.

        A regulatory mechanism could be deployed that favors
        cleaner production technologies over end-of-pipe solu-
        tions.

        Existing economic incentives that favor end-of-pipe
        solutions over cleaner production technologies could
        be eliminated and those that promote development and
        deployment of cleaner production technologies could
        be established and implemented.

        The Agency could seek to foster the development and
        promote adoption of generally accepted environmental
        auditing procedures  that  both  allow firms  to retain
        some auditing information as confidential and maxi-
        mize  chances  of firms choosing  cleaner production
        technologies in investment decisions.

        In some specific instances, the Agency could seek to
        cooperate with other governments in development of
        consensus approaches to cost effectively attack prob-
        lems.

        Mechanisms are needed to engage both the  regulated
        community  and  other  'stakeholders'  in  negotiating
        approaches aimed at specific problems.

        Voluntary agreements could be encouraged where fea-
        sible.

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Encourage most of the regulated community to per-
form better than required, since 'best performance'
might eventually be taken as a general standard thus
giving  the firm that achieves  it first a competitive
boost.

Specialized approaches aimed at meeting the needs of
small-  and medium-sized enterprises  may be advis-
able.

Use of a regular means to monitor progress and report
results to the public.

Enforcement of liability laws for environmental dam-
ages.

A strong, stable mechanism for regulatory review and,
when needed, to initiated regulatory reform.

Regular use of information mechanisms to inform the
public  about environmental risks and promote favor-
able public opinion concerning cleaner production tech-
nologies.

Incorporation of cleaner production technology con-
cepts into educational programs at all levels of educa-
tion.

Employment of means to favor demand for cleaner
products to the extent practicable.

Judicious use of economic instruments to achieve a
level playing field.

Proactive research and development concerning cleaner
production technologies.

If possible, promotion of life-cycle costing for  all
capital cost allocations.

Removal of government impediments to development
and deployment of cleaner production technologies.

Government procurement initiatives that promote
cleaner production technologies and products.

Support for technology transfer mechanisms to stimu-
late utilization of cleaner production technologies in
the U.S. and abroad.
R.      References
    1    World  Commission on Environment  and Develop-
        ment, Our Common Future (Oxford University Press,
        Oxford, 1987).

    2    T.  Jackson (Editor), Cleaner Production Strategies
        [Preface], Stockholm  Environment Institute, Lewis
        Publishers, London (1993); (a) [Chapter 6] Hazardous
        Futures.

    3    OECD, Government Policy Options  to Encourage
        Cleaner Production and Products in the 1990s, OCDE/
        GE(92)127, Organization for Economic Cooperation
        and Development, 2 rue Andre Pascal, 75775 Paris
        CEDEX 16, France (1992).

    4    H.  Yakowitz and R. Hanmer, "Policy Options—En-
        couraging Cleaner  Production  in  the  1990s," In: T.
        Jackson  (Editor)  Cleaner Production Strategies,
        Stockholm Environment Institute, Lewis Publishers,
        London (1993).

    5    OECD, The State of the Environment, OECD (Paris,
        1991).

    6    U.S. EPA, Environmental Investments: The Cost of a
        Clean Environment, Washington, D.C.  (1990).

    7    M. Dorfman,  A. White, M. Becker and T.  Jackson,
        "Profiting from Pollution Prevention,  In: T. Jackson
        (Editor), Clean Production Strategies, Stockholm En-
        vironment Institute, Lewis Publishers, London (1993).

    8    L.  Baas,  H. Hofman,  D.  Huisingh, J. Huisingh, P.
        Koppert and F. Neumann, Protection of the North Sea:
        Time for Clean Production, Erasmus Center for Envi-
        ronmental Studies, Erasmus University,  Rotterdam
        (1990).

    9    Sheldon K. Friedlander, "Environmental Issues: Im-
        plications for Engineering Design and Education," In:
        Technology and Environment, J. Ausubel  and H.
        Sladovich (Editors), National Academy Press, Wash-
        ington,  D.C. (1989).

    10  J.H. Ausubel, "Regularities in Technological Develop-
        ment: An Environmental View," In: Technology and
        Environment, J. Ausubel and H. Sladovich (Editors),
        National Academy Press, Washington, D.C. (1989), p.
        70.
                                                A-9

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                         Appendix B

Redevelopment of Industrial Sites and Remediated Land

                   Societal Pressures for the
    Redevelopment of Industrial Sites and Remediated Land

                              by
                    Dr. Hilary I. Inyang, President
                Geoenvironmental Design Research, Inc.
                           Fairfax, VA
                              and
                       Ms. Lynne Preslo, R.G.
                          Vice President
                        ICF Kaiser Engineer
                           Oakland, CA
                           Prepared for
                       Futures Project Report
                 Environmental Engineering Committee
                      Science Advisory Board
                 U.S. Environmental Protection Agency

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A.     Global Goal
    EPA is primarily responsible for developing technical and
regulatory schemes for protecting human health and the envi-
ronment. During the past fifteen years, the Agency has orches-
trated efforts to identify and mitigate both environmental and
human health risks. With  all other  factors held constant, the
potential for environmental and human health damages is di-
rectly proportional to the level of exposure to stressors. Conse-
quently, the Agency  has justifiably considered  exposure
assessment as an important element of risk assessment.

    The potential exposure of each segment of the U.S. popula-
tion to undesirable environmental stressors is location-specific.
Therefore, the rate of growth and spatial distribution of popula-
tion within a given region have indirect but profound influences
on human and environmental exposure to various sources of
pollutants. The rate of change and distribution pattern on popu-
lation depend on a host of socioeconomic factors,  the interac-
tions  of which change  dynamically  with time.  A deep
appreciation of the relationships between socioeconomic  fac-
tors and environmental stress factors, the probable future bounds
for the variability of these relationships, and the trend of evolu-
tion of environmental control  technologies  will  enable the
Agency to develop appropriate schemes for mitigating risk.

    The scarcity and high  cost of land in  urban areas, coupled
with increasing urbanization  of the U.S. population, will in-
crease the pressure to redevelop abandoned industrial sites and
remediated land. Within the next thirty years, one of the follow-
ing scenarios is likely to develop in metropolitan areas.

    •    Increase in the population density of suburban centers
        and greener sites at the expense of the proximal inner
        city areas.

    •    Retention of large populations by inner city areas with
        only moderate increases in the population  of suburban
        areas.

    The occurrence of any of these two scenarios will result in
the scarcity  of land within and/or near metropolitan centers.
Consequently, many of the  abandoned  industrial  sites  and
remediated land that are presently fallow due to  real or  per-
ceived risks and liability will likely be  developed. The interac-
tions  of the driving factors  for site  redevelopment in  both
scenarios are largely different although there are some common
elements. The  driving factors include  prospective increase in
profits to site developers, advances in site  remediation technol-
ogy, population increase,  socioeconomic trade-offs, and in-
crease in the magnitude of liability risk acceptable to developers
and buyers as land scarcity drives up housing costs. EPA needs
to develop proactive schemes to address both the policy and
technical issues that will attend this category of land recycling.

B.     Background  on Site Inventory
    There is an exceedingly large number of contaminated sites
in the U.S.  Government Accounting  Office  (GAO) (1993a)
estimates that 3,400 facilities out of about 4,300 in the RCRA
universe may be releasing waste into the environment.  The
Department  of Defense (DOD) controls  about 10,924 active
hazardous waste sites at more  than 1,800 domestic military
installations  in the U.S. (Sidel,  1993). Table B-l  (Chu et al.,
1992) shows the distribution of 7,150 other military sites by
state of location. A component of the comprehensive plan of the
DOD Installation Restoration Program is the redevelopment of
remediated sites. GAO (1993b) reports that the U.S. Depart-
ment of Energy (DOE) estimates that it may close about 1,700
facilities within the  next 30 years.  Presently, the DOE has
approximately 4,000  sites to remediate, and it is also estimated
that more than 250,000 underground storage tank sites presently
need  to be cleaned  up (HMCRI,  1993). Briefing  statements
released by EPA (1991b) indicated that its Superfund Program
has evaluated 31,000 sites out of  a total universe  that could
exceed 50,000. Between 250 and  300 of these  sites  require
remedial actions each year.

    In addition to the sites mentioned above, several former
industrial sites are located in metropolitan areas. In many cases,
the businesses  that once  occupied them have left for other
regions that  may have better economic prospects. In some
cases, these businesses operated outdated industrial plants and
could not meet pollutant emission requirements  of sensitive,
highly populated areas (e.g., the Los Angeles Basin).

    Adequate data collection on the  proximity of abandoned
and remediated sites to metropolitan areas has not been con-
ducted by appropriate agencies.  Nevertheless, it is generally
observed that most industrial cities in the northern region of the
U.S. and  some southern  and western cities have  very high
concentrations of abandoned sites. These cities  include Chi-
cago, Boston, Detroit, Philadelphia, Washington, D.C., Pitts-
burgh, New Orleans, Miami, Los Angeles, and smaller cities
such as Omaha, Fargo, and Des Moines. It is a fair assumption
that more than 90%  of the leaking underground storage tank
sites that will be remediated are located within  metropolitan
areas. There is a high probability that the redevelopment of a
significant proportion of the different categories of sites  dis-
cussed above will become very attractive within the next thirty
years. Among the structures that will  be built on such sites are
residential houses, parking garages, warehouses, tunnels, road-
ways, monuments and office buildings.

C.     Scenarios
    In Scenario 1, inner city dwellers will migrate to suburban
areas and greener sites. The driving factors for this scenario are
infrastructure decay in inner city areas, increase in  crime rate
that may correspond with higher unemployment rates in  city
centers, and  greater  availability  of white-collar  employment
opportunities in city suburbs. In essence, this scenario hinges on
the justifiable assumption that the middle class, which  has the
luxury of means,  will flee the  inner city  areas to greener
pastures. The capability  to flee undesirable conditions will
determine the population  zonation pattern  envisaged in Sce-
nario 1. The most probable consequences of this scenario are
itemized below.

    •   Equilibration of population  densities over large re-
        gional areas.

    •   Decrease in  the tax base of inner cities as they retain
        residents that are mostly within the low income bracket.

        Attraction of cottage industries to inner  cities will
        occur due to new incentives that will be provided by
        city administrators. These industries will need space
        for facilities and, consequently, former industrial sites
                                                          B-1

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Table B-1. Inventory of Formerly Used Defense Sites (Chu et al.
Number of
State Sites
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri

130
547
182
91
847
97
35
29
20
518
101
378
66
72
69
35
119
24
73
97
74
233
138
63
132
85

1992)
State
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Territories
Total
Number of
Sites
106
105
43
26
122
226
268
94
67
82
87
123
110
56
100
92
63
323
34
13
172
284
23
67
70
139
7,150
        and remediated  land  will become prime redevelop-
        ment targets.

    •   Land will also become scarce and expensive in subur-
        ban areas, in consistence with increased demand that
        will result from the influx of new residents.

    In Scenario 2, the population of inner cities will increase
excessively while the suburbs experience only moderate popu-
lation increases. The driving forces for this scenario are high
levels of immigration and  high  birth rate of population  seg-
ments in the low income  bracket.  These new residents  will
initially prefer to settle in large urban centers, where unskilled
labor is still in high demand relative to rural and suburban areas.
Also, it is generally believed that ethnic ties to earlier immi-
grants to U.S. cities promote the congregation of new immi-
grants in the inner cities. Despite the expected increase in the
population of inner cities, the  mobility  of residents  to  the
suburbs in reasonably large numbers could be impeded by their
lack of white-collar skill and financial resources. This scenario
is likely to produce the following consequences within the next
30 years.

    •   A population imbalance in favor of inner city areas in
        large metropolitan areas.
    •   Socioeconomic and environmental pressures will force
        city  planning units of metropolitan governments to
        seek novel ways of maximizing the use  of central
        urban space, including former industrial sites.

    •   Developers will capitalize on  the  exceedingly  high
        demand  for  housing  business  centers, and  perhaps
        light industrial facilities  in  central urban areas  by
        purchasing and redeveloping former industrial  sites
        and remediated/contaminated land.

    •   Increased utilization of underground space in areas of
        high population density.

    The  two scenarios that are  discussed  in  the  preceding
paragraphs will each promote the redevelopment of abandoned
industrial  sites  and other sites that are presently classified as
being contaminated. However, the interactions among the sig-
nificant driving factors discussed in Section  D are  largely
different. An appreciation of these factors is a requirement for
the development of adequate schemes to respond to policy and
technological needs.
                                                          B-2

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D.      Major Driving Factors for Land
        Redevelopment
    The major driving factors for land redevelopment are popu-
lation increase, socioeconomic  trade-offs, legal liability and
risk acceptability, and advances in technology.

D-1.   Population Increase
    The total population of the U.S., as of August 1,  1993, is
estimated by the Census Bureau (1993a) at 258,479,000. This
population represents a 3.7% increase over the 1980 estimate by
the same Bureau. The middle series projection (Census Bureau,
1993b) indicates that the U.S. population will increase by 50%
from about 255 million in 1992 to 383 million by the year 2050.
This is  based on assumptions of 2.1  births per woman, an
average life expectancy of 82.1  years by 2050, and an annual
net immigration of 880,000. The lowest series estimate for the
year 2030, the time frame that corresponds reasonably to the
Futures Project analysis period, is 287 million. This is based on
assumptions of 1.8 births per woman,  an average life expect-
ancy of 75.3 years, and an annual net immigration of 350,000.

    Estimates by the United Nations (1985) show that  in 1980,
only 15.8 percent of the global population resided in cities of 4
million and above. By the year 2025, about 24.5% of the global
population will reside in megacities. Within our context, each
megacity comprises the inner city and  the suburbs. Population
distribution data (Census Bureau, 1993c) indicate that out of a
total U.S. population of about 249 million in 1990,78.8 million
and 79.4 million resided in central urban and  urban fringes
(comparable to suburbs), respectively.  Although future urban-
ization rates are expected to be higher  in the developing coun-
tries than in the U.S., even moderate influx of new residents into
metropolitan areas and high birth rates  of people who reside in
those areas are likely to cause acute  scarcity of urban  space in
most cities.

    It should be noted that the population will not necessarily
increase in all U.S. cities. Furthermore, the spatial distribution
of population within each metropolitan area (conglomerated
cities and suburbs) is a more relevant parameter than the popu-
lation itself, to the two scenarios outlined above. In Table B-2,
data for some very large U.S. cities indicate average annual
population growth rates  that range from 0.2% for Pittsburgh,
Pennsylvania, to 3.33% for Phoenix, Arizona. In Scenario 1, it
is envisaged that for most U.S. cities, large segments of the city
population will move to  suburbs and other lower density areas
within the metropolitan areas.

    The resulting spatial zonation pattern of population will
vary from pockets of affluence dispersed within urban blight to
concentric rings  in which the segments with longer radii are
inhabited by  residents with  better economic resources. New
York represents the former,  and Minneapolis exemplifies the
latter. Essentially, the suburbs and cleaner enclaves within
metropolitan areas will need land for both residential and busi-
ness real estate, a situation that will increase the scarcity and
cost  of land.  A direct consequence will be an increase in the
pressure for the redevelopment of the increasing  number of
brown sites in the suburbs. Also, Scenario 1 will eventually lead
to the redevelopment of abandoned and  remediated sites even in
the inner city areas that may experience significant population
flight.
    In Scenario 2, the inner cities will retain larger segments of
the projected increases in population. This situation could be
promoted by improvements in the implementation of socioeco-
nomic schemes such as affordable housing, environmental sani-
tation, crime control, and underground space development. The
enhancement of the desirability of residing in city  core areas
will increase the demand for, and costs of,  real estate dramati-
cally. Even in the absence of this factor, new immigrants are
likely to be trapped in  inner city  areas (for example,  South
Central  and East Lost  Angeles) for a  number of years for
socioeconomic reasons.  The immigration rate, to which refer-
ence is made above, will sustain high population densities in
city cores thereby building pressure for  the redevelopment of
abandoned sites. In the scenario, the lower density of population
in the suburbs may increase the attractiveness of the latter sites
for new industrial plants, as exemplified by present-day Okla-
homa City and Milwaukee. In Scenario 2, this spatial model
will become more ubiquitous.

D-2.   Socioeconomic Trade-Oils
    Market forces will play a significant role in land redevelop-
ment in urban areas. Construction and industrial activities often
effect immediate impacts on employment rates. City planners
may be  inclined to weigh employment goals against potential
environmental concerns. For private developers, zoning and tax
concessions,  which could be the instruments of enticement,
could make the redevelopment of former industrial sites attrac-
tive. The high rates of housing and real estate development in
U.S. cities relative to available space will promote this type of
land recycling. Data presented in Table B-2 show 1992 housing
and population data compiled from information gathered by
ULI (1993) for  some major U.S. cities. The number of new
housing units built in 1992 exceeded 20,000 in some U.S. cities.
While these data do not show housing imbalance in favor of
inner cities, it is fair to assume that increases in housing and real
estate development will  translate to the development of brown
sites in most parts of cities owing to the finite number of regular
sites available.

    Redevelopment activities usually revitalize industries such
as those  in construction, insurance, hardware sales, and road
construction.  Construction activities are generally labor-inten-
sive and thus can provide employment for a large number of
laborers. Municipal governments will continue to cherish in-
creases in construction activities  because the latter can reduce
unemployment rates. Interestingly,  Table B-l shows that Cali-
fornia has  the highest number of reclaimable military sites.
California also has very high unemployment rates. The  ex-
pected translation of this situation to many regional cities of the
U.S. will constrain municipal governments to provide incen-
tives to developers in schemes constructed to reduce unemploy-
ment in inner city areas. Incentives will most likely be highest
for the  development of abandoned  industrial sites. This is
particularly likely in Scenario 1, which  involves the flight of
manufacturers and economically buoyant persons to the sub-
urbs or richer city enclaves. Tax breaks constitute an example of
an incentive that municipal governments will use to arrest the
flight of companies and attract new companies and residents.
These schemes  imply that space will  become  scarce again,
leading to the development of most available spaces.
                                                         B-3

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Table B-2.  Population and Housing Data for 1992 for Some Major U.S. Cities (compiled from ULI, 1993)
City
Atlanta, GA
Chicago, IL
Columbus, OH
Detroit, Ml
Jacksonville, FL
Miami, FL
Nashville, TN
New York, NY
Philadelphia, PA
Pittsburgh, PA
Washington, DC
Dallas/Ft. Worth, TX
Houston, TX
Los Angeles, CA
Phoenix, AZ
St. Louis, MO
San Francisco, CA
Seattle, WA

1992
(Thousands)
2,932.0
7,400.0
1,418.2
4,361.2
935.0
1 ,993.8
1,028.0
7,388.5
4,916.6
2,322.2
4,074.0
4,042.6
3,900.0
9,087.0
2,236.0
2,452.0
3,786.0
2,888.4
Population
Average Annual Growth
1980-92
(Percent)
2.70
0.30
1.10
0.20
2.20
1.72
1.60
0.40
0.30
0.20
1.90
2.72
1.70
1.60
3.33
0.26
1.30
2.10

Number of Units
(Thousands)
1,216.0
—
577.3
1 ,725.4
396.5
790.7
233.2
2,986.3
1 ,939.4
960.0
1 ,597.0
1 ,686.6
1 ,546.7
3,221 .2
836.4
1 ,025.2
1,546.1
1,194.4
1992 Housing Data
New Units
in 1992
(Thousands)
26.0
24.2
8.4
14.7
5.8
8.0
1.9
2.4
12.3
5.4
21.9
20.8
18.8
11.3
17.7
5.3
8.9
26.4
    Incidentally, most major cities in the U.S. are currently
initiating urban infrastructure improvement projects. One of the
important elements of these plans is the attraction of manufac-
turing  companies,  most of which  usually need  considerable
space for plants and offices. One such city is Detroit, Michigan.
In addition, the current U.S. Administration plans to develop
"enterprise zones" in inner city areas. The President's Council
on Sustainable Development (SCTF, 1993) is currently assess-
ing options for promoting sustainable reuse of abandoned in-
dustrial sites, closed military  bases and other government
property. These options include changes in zoning codes and
regulations, lending and insurance practices, and future liability
responsibility.

    Economic considerations have already made California's
Abandoned Site  Project management team consider contami-
nated site redevelopment as a viable option in cases that incor-
porate appropriate schemes to mitigate human  health risks.
Anderson and Hatayama (1988) describe plans to redevelop a
Bethlehem Steel Company site in South San Francisco, and a
Hercules Powder Company Site in Hercules, both in California.
A number of other case-histories in the U.S. are  described by
EPA (1986). The locations, characteristics and post-redevelop-
ment land use of some of these sites are presented in Table B-3.
Within the next thirty years, this practice will become wide-
spread in the U.S., in conformity with  the trend in European
countries (particularly Britain), where land is  very  scarce in
metropolitan areas.

D-3.   Legal Liability and Risk A cceptability
    Currently, liability concerns discourage potential develop-
ers from purchasing contaminated land for subsequent redevel-
opment.  Zimmerman (1992) reports  that numerous court
decisions have supported laws that hold purchasers of contami-
nated property liable for incidents of contamination regardless
of whether or not environmental problems stem from prior use
of such properties by previous owners. Potential developers are
currently cautious about acquiring contaminated property be-
cause commercial general liability insurance policies that they
hold contain exclusion clauses for damage from such pollution
incidents. Some states have enacted  legislation  (Greenthal and
Millspaugh, 1988), exemplified by New Jersey's Environmen-
tal Cleanup Responsibility Act, which outlaws the transfer of
contaminated property. In most other states, developers can
purchase contaminated property  and  assume  the associated
liability risks. In a discussion of this issue, McGregor (1988)
notes that potential developers could consider deducting cleanup
costs from the sale price of properties during  the negotiation
stage.

    The  liability concerns that currently impede the transfer
and redevelopment of former industrial sites and other types of
contaminated land, may wane significantly within the next
                                                          B-4

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     II
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    75.0
    «
    f*
    Q-cr
    t.9
    O «3
    o 'E
    « «

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-------
thirty years. There are some indicators that changes in regula-
tory climate  will favor land redevelopment. As reported in
Inside EPA (1993), some Congressional members have contem-
plated the development of a Superfund Reauthorization bill that
will include regulatory support for the redevelopment of urban
industrial sites. The U.S. Supreme Court sided recently (Schulte,
1993) with a South Carolina businessman against the State of
South Carolina in an environment-related litigation over his
right to determine the beneficial land use for his property.

    Recently, the State House of Pennsylvania passed two bills
aimed at promoting the redevelopment of abandoned sites. In
one of the bills, legislators seek to limit liability for purchasers
of former industrial sites. The second bill would limit environ-
mental liability for development agencies that provide loans to
developers of abandoned properties. The Pennsylvania Senate
is considering other  bills  that would exempt candidate sites
from  stringent cleanup specifications and provide  grants for
cleanup of industrial sites, respectively. In general, the legal
liability climate is changing in favor of site redevelopment.

D-4.   Advances in Technology
    It has not been possible  to attain desirable  cleanup stan-
dards in  a cost-effective manner at many contaminated sites.
For sites at which groundwater is contaminated, pump-and-treat
schemes are  most often used in remediation. Unfortunately,
there  is a limitation on the level to which a site can be cleaned
up using technologies that are based on the removal of contami-
nants by hydraulic pressure differential. Other cleanup tech-
nologies such  as  electrokinetics, steam flushing and
surfactant-enhanced soil washing have been proven to be ad-
equate only in bench-scale studies and controlled field experi-
ments. Federal regulations for site remediation tend to promote
the implementation of "best available  technology," most of
which are very new. Residual concentrations that may remain at
prospective  sites for redevelopment are still of concern to
developers and potential owners. Long-term exposure of hous-
ing residents to residual contaminants is still a major concern
even if such a concern is not supported by exposure assessments
and toxicological evidence.  Given the current regulatory cli-
mate  and available technology, perfect cleanup is not achiev-
able;  thus, a combination of risk  management  and remedial
technology management should be employed in the redevelop-
ment of land for beneficial uses.

    Contaminant cleanup technologies are evolving at a rapid
enough pace to give credence to the assumption that within the
next thirty years it will be possible  to remove residual concen-
trations of contaminants cost-effectively. This implies that at a
large number of sites, the post-cleanup risk assessments will
indicate  potential human  exposures  that are low enough to
support the redevelopment of the sites concerned. It is reason-
able to expect that in thirty years, the fear factor will dissipate
substantially, in response to improvements in public education
and awareness on environmental issues.

    Urban cores and suburbs will be  linked by  high  speed
transportation within the next few decades. This situation will
follow the trend  set by Japan in response to high urban popula-
tion. It will be possible for residents of inner city areas to work
in far-flung places and vice-versa. This development is likely to
favor Scenario 2. A large  segment of the city population will
prefer to reside where social services are plentiful but commute
to work  in the suburbs and beyond. A plausible argument
can be made to support the contrary: computer information
systems  will advance to the extent that wherever one lives,
social services will be available. However, the affordability
factor  and the desirability of ethnic  community  support
systems  will place constraints on deviations from Scenario
2. Essentially, the expected implementation of large-scale
mass transit  technologies exemplified  by high speed mag-
netically levitated trains, will indirectly enhance the condi-
tions that characterize Scenario 2.
E.
Desirable Situation and Goals
    The  occurrence of either of the two scenarios discussed
above will result in increased pressure for the redevelopment of
former industrial sites and remediated land. It is desirable that
schemes be developed for monitoring the evolution of socioeco-
nomic and  technological conditions and developing programs
to forestall environmental and human health problems that may
arise.

    The redevelopment of brown sites has both economic and
indirect environmental benefits. In  the preceding sections,  the
driving factors that include socioeconomic advantages from the
perspectives of the state and local agencies and developers have
been discussed. In environmental protection terms, it is worthy
to note that the development of remediated sites (brown fields)
implies the conservation of clean sites (green fields), a situation
that  is desirable with respect to overall public interest. It is
within EPA's mission to ensure that redevelopment is imple-
mented with safeguards against environmental and human health
damage. Toward this end, the existence of the following situa-
tions within the next thirty years is  desirable:

        Availability of data on population and spatial growth
        patterns of U.S. cities.

    •   Availability of data on  the number and distribution of
        both abandoned and operating industrial sites relative
        to large population centers.

    •   Availability of centralized information  resources on
        liability laws and trends  relevant to site redevelop-
        ment.

    •   Existence of comprehensive schemes for integrating
        site redevelopment into city and regional plans.

    •   Existence of federal policies with adequate latitude for
        local jurisdictional controls on redevelopment.

    •   Availability of technical schemes and research data for
        addressing issues such  as residual contaminant migra-
        tion, exposure and risk  assessments for site redevelop-
        ment, relevant cleanup standards, foundation systems
        in residually contaminated land, occupational health
        and safety, and environmental equity.

    •   Availability of expertise within EPA to address  these
        issues.

    Unfortunately,  these desirable situations will not evolve
unless the  leading environmental control agency, EPA,  takes
the initiative to develop internal  programs and form appropriate
partnerships for addressing the issues discussed in the next
section.
                                                          B-6

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F.      Assessment of U.S. EPA's Readiness
        and Recommendations
    Some elements of EPA's programs are adaptable to schemes
that can address some aspects  of the issue of industrial and
contaminated site development.  However, in general, available
schemes are inadequate  for  achieving the  goals outlined  in
Section E. EPA's readiness in key policy and technical areas are
briefly discussed below.  Recommendations are also made on
approaches to developing and implementing schemes to address
relevant issues.

F-1.   Data Needs on Site Inventory and
        Spatial Distribution
    EPA (1986) documented some case-histories involving site
redevelopment in  the U.S. Subsequently, this issue has gone
forward without adequate tracking by the Agency. In addition,
information on important parameters  such as the total  number
of industrial sites in cities and their spatial distribution within
such cities  is lacking.  Some military sites that are candidate
sites for redevelopment may currently be  exempt from EPA
regulations.  Nevertheless, information  needs to be collected
because a central repository for this information is needed. With
respect to data collection, the recommendations outlined below
are made to improve EPA's readiness.

        Establishment of alliance with municipal governments
        to acquire and analyze  location and site characteriza-
        tion data on abandoned industrial and closed military
        sites on a continuing basis.

    •   Use of Geographic  Information Systems to reference
        the location of remediated and industrial sites relative
        to large population centers.

    •   Compilation and storage of data on site-specific prob-
        lems,  risk management decisions and liability laws
        that are relevant to the redevelopment of sites. Col-
        laboration with the States  and local authorities is es-
        sential.

F-2.   Site Redevelopment and City/
        Regional Planning
    EPA has hitherto played no role  in providing guidance  to
local governments and the states in  the area of planning al-
though those plans, when implemented, have significant bear-
ing on environmental pollution and, hence, human health. At a
minimum, an advisory role by the Agency on City Planning and
Zoning activities may enhance  the implementation of reason-
ably uniform policies on site redevelopment across the country.
This participation would also indirectly benefit other aspects  of
the Agency's budding programs for local communities, exem-
plified by Environmental Equity. In this regard, the following
recommendations are made:

    •   Development of schemes to help local agencies in the
        formulation of zoning regulations to protect environ-
        mentally sensitive sites  from excessive redevelopment.

    •   Involvement of the  Agency in sustainable develop-
        ment forums that address the interrelationships among
        site redevelopment, urban renewal, legal liability, risk
        management, employment, and transportation system
        efficiency.

F-3.   Exposure Assessment and Site
        Cleanup Levels
    Currently, cleanup levels for contaminated sites vary from
one state to another. The issue of "How clean is clean?" has still
not been settled. Existing cleanup standards have been largely
developed without consideration of future land use and risk
management. The expected increase in remediated land rede-
velopment is a compelling argument  for the integration of
future land use into contaminant cleanup standards for land. For
sites that are candidates for future development, such cleanup
standards should be credibly tied to the numerical regime of the
risk of exposure of future residents or workers to residual levels
of contaminants. Since the risk level  depends partly  on  the
design conservatism  of yet-to-be-determined structural con-
figurations, exact apriori analyses are not attainable. Neverthe-
less, information on the numerical regime of health risk will
suffice as the basis for specifying relevant cleanup standards.

    Both deterministic and probabilistic methods of risk assess-
ment have been advocated for inclusion in EPA's risk manage-
ment strategy for contaminated sites. Equation 1 represents the
general configuration of the current  EPA exposure assessment
numerical relationship. It is herein used only for illustrating the
relationship between  exposure and  facility design.  There  are
several other exposure equations.
    IN - [(C) (IR) (EF) (ED)]/[(BW) (AT)]
(1)
    IN    =     intake - amount of a specific chemical in a
                contaminated medium taken (mg/kg of body
                weight/day).

    C     -     concentration = average chemical concentra-
                tion contacted over the exposure period (mg/
                l,mg/mg).

    IR    =     intake rate (or contact rate - amount of con-
                taminated medium contacted per unit time or
                event)(mg/day or L/day).

    EF    =     exposure frequency (upper bound value), (day/
                year).

    ED   =     exposure duration  (upper bound value),
                (years).

    BW   =     body weight = average body weight over the
                exposure period (kg).

    AT   =     averaging time = time period over which
                exposure is averaged = exposure duration for
                non-carcinogens and 70 years for carcinogens
                (years).

    At any residually contaminated  site that is a candidate for
redevelopment, the parameters C and EF depend indirectly on
the facility type and configuration, and the time of occupancy,
respectively, of the facility constructed on the site. The residual
concentration and transport characteristics of contaminants across
the structural components into inhabited spaces affect exposure
indirectly through direct effects on  parameter C. Exposure is
also affected by the type of structure. Over a reasonable time
                                                        B-7

-------
period (e.g.,  1  year) people spend more time in residential
housing than in warehouses and parking ramps. Equation 1
illustrates that this situation affects the exposure frequency.
These factors should be considered by EPA in the development
of cleanup standards for contaminated sites slated for redevel-
opment. In general, the following recommendations are made.

    •   Review of current exposure and risk assessment meth-
        ods to  assess their  adaptability to site redevelopment
        schemes.

    •   Development of numerical regimes  of human health
        and environmental  risks for redevelopment to provide
        developers with general data (with a caution that site-
        specific assessments are necessary).

    •   Assessment  of the occupational  health  and environ-
        mental equity issues that are associated with site rede-
        velopment.

    •   Specification of cleanup standards based on potential
        site reuse.

F-4.   Engineering Mitigation Schemes for
        Structures
    A preliminary analysis  of the geoenvironmental engineer-
ing aspects of contaminated site development was made by
EPA (1993). However, comprehensive geotechnical schemes
have neither been developed yet by the Agency nor imple-
mented widely  by industry. During the past decade, EPA, in
collaboration with local and other federal agencies, has devel-
oped geostructural systems  for controlling human exposure to
radon and its decay products at problematic sites. The  concep-
tual configuration of one of these systems is shown in Figure B-
1. Other  configurations  and techniques are illustrated and
discussed by EPA (1991b) and Murane (1993). Although some
of these schemes may be  adaptable,  with modifications, to
mitigating residual contaminant transport in the vapor phase
from soils into inhabited space, additional schemes need to be
developed by EPA.

    Residual contaminants can migrate in the vapor, liquid, and
solid phases at contaminated sites under suitable geohydrological
and other environmental conditions. The geotechnical design of
the structural foundation system is also one of the determinants
of contaminant migration potential. Realizations at gas stations
above leaking tanks indicate that flaws in buildings can serve as
conduits for contaminant entry. The development of such flaws
in the long term in structures can be enhanced by the structural
instability of foundation site soils. Unfortunately, contaminated
soil strength, which will be an important parameter with respect
to the stability of structural  foundations in reclaimed industrial
and contaminated sites, is not of significant concern in current
EPA site assessment schemes.

    The recommendations  for improving the Agency's readi-
ness in the geoenvironmental area are as follows:

    •   Development of general schemes for relating the de-
        sign of geotechnical foundation schemes to exposure
        parameters.

    •   Integration of foundation stability  assessments into
        contaminated site characterization schemes.
    •   Collaboration with the external geotechnical commu-
        nity to develop  and evaluate  protective  foundation
        schemes for structures on reclaimed industrial sites as
        a natural follow-up to  the  issues discussed in EPA
        (1993).

F-5.   Education, Research and In-house
        Expertise
    In some cases where  the potential exposure levels will be
proven to be insignificant, some prospective residents of houses
built on remediated land will still be fearful of residing in such
houses. Community education schemes are recommended to
minimize the fear factor  where risks have been successfully
mitigated.

    The high prospects for large-scale land redevelopment in
the U.S. requires that research be conducted on several relevant
topics among which are the following:

    •   Contaminant  attenuation characteristics  of building
        materials.

        Effects of residual contaminants on soil strength.

    •   Barriers and sealants for controlling contaminant entry
        into structures.

    •   Identification and assessment  of exposure scenarios
        relevant to contaminated site development.

        Interactions of socioeconomic factors in contaminated
        site development.

    •   Comparative economics and environmental benefits of
        green versus brown sites development.

    •   Automatic sensing systems for contaminants in inhab-
        ited spaces.

    The implementation of the recommendations made in  this
section will require the retention of a critical mass  of in-house
expertise by the Agency in relevant disciplinary areas. Unfortu-
nately, most of the relevant issues need to be integrated directly
into EPA's programs and, hence, cannot be effectively managed
by external contractors on a continuous basis. In addition, some
of the  issues involve the creation of policies that have signifi-
cant technical components.

    The Agency's laboratory personnel, technical analysts, and
work program managers are unlikely to cover all the technical
ground necessary to develop effective  policies and technical
schemes  to address the  issue of site  redevelopment. These
issues  involve contaminant migration modeling, geotechnical
reliability analysis, socioeconomic theory, spatial data analysis,
toxicology, soil and  groundwater reclamation science, and geo-
hydrology as major disciplinary areas.  While the  Agency re-
tains expertise at the program management level in these areas,
hands-on analysts with expertise on the  issues described above
are very few at the Agency. In particular, geotechnical expertise
is almost nonexistent in the entire Agency, perhaps due to the
fact that relevant issues have traditionally been treated margin-
ally  within the general framework of environmental engineer-
ing.  An improvement in  in-house expertise is recommended.
The Agency also needs to improve its collaborative efforts with
                                                         B-8

-------
                Radon
    Radon Collection Tank with
    Electrical Pressure-Sensing
            Devices
Underfloor Seal
\
i
/
' ^f — Pressurized Air
1
T
<-*— Geotextile^~ — ~^_
\
I Rpnmemhrane Ra
-------
I.       References
    1    Anderson, J.K. and Hatayama, H.K. 1988. Beneficial
        reuses of hazardous waste sites in California. Mono-
        graph Series. Hazardous Materials Control Resources
        Institute, Greenbelt, Maryland, pp. 28-32.

    2   Census Bureau. 1993a. Estimates of the population of
        the U.S.  to August 1, 1993. P25-1107. Bureau of the
        Census, U.S. Department of Commerce, Washington,
        DC.

    3   Census Bureau. 1993b. How we are changing: demo-
        graphic state  of the nation. Series P-23, No.  184.
        Current Population Reports, Special Studies. Bureau
        of the Census, U.S. Department of Commerce, Wash-
        ington, DC.

    4   Census Bureau. 1993c. 1990 census of housing; gen-
        eral housing characteristics-urbanized areas. 1990 Ch-
        1-1C.  Bureau of the Census, U.S. Department  of
        Commerce, Washington, DC.

    5   Chu, T.J., Wash, T.J. and Fellows, M.H. 1992. Envi-
        ronmental restoration at formerly used defense sites.
        Proc. 13th Anual National (HMC/Superfund) Confer-
        ence, Washington, D.C., pp. 258-261.

    6   GAO.  1993a. Hazardous waste; much work remains to
        accelerate facility cleanups. Report to Congressional
        Requesters. GAO/RCED-93-15. US General Account-
        ing Office, Washington, DC.

    7   GAO. 1993b. Cleaning up inactive facilities will  be
        difficult. GAO/RCED-93-149.  Report  to the Chair-
        man, Subcommittee on Investigations and Oversight,
        Committee on Science, Space, and Technology, House
        of Representatives. US General Accounting Office.

    8   Greenthal,  J.L. and Millspaugh, P.P. 1988. Implica-
        tions of dealing with real estate-based cleanup statutes
        and recommended measures for  avoiding economic
        and operational disruption.  Proc. 9th National
        (Superfund) Conference, Washington, DC., pp.60-64.

    9   HMCRI. 1993 EPA report offers shopping list for
        cleanup  technologies. Hazardous Materials  Control
        Resources Institute. Focus, Vol. 9, No. 7, pp.2.

    10  Inside EPA.  1993.  House member prepares first
        Superfund  Bill: will stress reuse of sites. Inside EPA,
        August, pp. 15.
11   McGregor, G.I. 1992. Buying and selling dirty real
    estate. Proc. 13th Annual National (HMC/Superfund)
    Conference, Washington, DC., pp. 31-33.

12  Murane, D.M. 1993. Radon mitigation and prevention
    standards. ASTM Standardization News, December,
    ASTM, Philadelphia, Pennsylvania, pp. 40-43.

13  Schulte, B. 1993. Developer is gaining ground in na-
    tional fight for property rights. The Washington Post,
    Friday, December 31, pp. A4.

14  Sidel, V.W. 1993. Cleaning up: risk and risk reduction
    at military sites. U.S. Water News, August, pp. 7.

15  SCTF.  1993. Sustainable development. Draft Report,
    Sustainable Communities Task Force, President's
    Council on Sustainable Development,  Washington,
    D.C.

16  ULI 1993. Market profiles: Vol.  1 and II. Urban Land
    Institute, Washington, DC.

17  United Nations.  1985.  Estimates  and projections of
    urban, rural and city populations, 1950-2025:  the 1982
    assessment. Department of International Economic and
    Social Affairs, United Nations, New York.

18  U.S. EPA.  1993. Geotechnical systems for structures
    on contaminated  sites.  EPA  530-R-93-002:  PB93-
    209419. A Technical Guidance Document. Office of
    Solid Waste and Emergency Response, U.S. Environ-
    mental Protection Agency, Washington, DC.

19  U.S. EPA.  1991a. Superfund.  Briefing Materials Pre-
    sented  to the Administrator,  by  the Superfund Pro-
    gram,  U.S. Environmental Protection  Agency,
    Washington, DC.

20  U.S. EPA  1991b. Radon-resistant construction tech-
    niques for new residential construction. EPA/625/2-
    91/032. Technical  Guidance  Document. Office of
    Research and Development, U.S. Environmental Pro-
    tection Agency, Washington, DC.

21  U.S. EPA  1986. Reclamation and redevelopment of
    contaminated land: Vol 1 U.S. case studies. EPA/600/
    2-86/066. Hazardous Waste Engineering Laboratory,
    U.S.  Environmental Protection  Agency, Cincinnati,
    Ohio.

22  Zimmerman, M.D.  1992. On  shaky ground:  property
    owner's options  for managing pollution  liability.
    Hazmat World, March, pp. 45-46.
                                                       B-10

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              Appendix C
       Transient Phenomena
                    by
           Dr. Frederick G. Pohland
   Weidlien Chair of Environmental engineering
Department of Civil and Environmental Engineering
           University of Pittsburgh,
               Pittsburgh, PA

               March 7,1994
                Prepared for
            Futures Project Report
     Environmental Engineering Committee
           Science Advisory Board
     U.S. Environmental Protection Agency

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A.     Global Goal
    With prime responsibility for safeguarding and enhancing
the quality of the environment and protecting human health, the
U.S. Environmental Protection Agency (EPA) must develop a
state of readiness to respond to any natural or anthropogenic
threats, however engendered. Those threats that are posed on a
continuum have received more attention from both prevention
and remediation perspectives, largely because they frequently
have recognizable and manageable spatial and temporal dimen-
sions. On the other hand, less predictable transient phenomena,
whose consequences  may  be  shorter  lived but much more
severe and devastating, are often only considered in passing and
unfortunately then only in  a reactionary mode after the fact.
This latter dilemma is exacerbated  by  the frequent division of
responsibility and authority when disaster strikes, and the abil-
ity of available resources to take responsive action.

    Since environment and human health are inextricably linked,
with one affecting the other directly and indirectly in cause/
effect relationships,  the imposition of a transient phenomena as
a driver may convert a hazard into a catastrophe. The magnitude
and intensity of these events are often measured in terms of
human health and welfare, as well  as environmental perturba-
tions, a domain often shared by EPA with  other agencies. Yet
EPA has not been an active player or led the pertinent agenda
for natural hazard preparedness  and/or mitigation, and it is
currently not positioned to participate effectively either in de-
veloping policy or providing assessment and technological guid-
ance.

B.     Issues
    The  issues  involved with transient phenomena include
those elements of natural hazards that manifest themselves in
threats to the environment and to  public health and welfare.
Although these phenomena encompass a broad array of events,
including those triggered or driven by hydrological phenomena,
e.g., river and coastal floods or  tropical cyclones, and those
consequenced by geological phenomena, e.g., earthquakes, vol-
canic eruptions or landslides, the selected subordinate issue and
its plausible and important scenarios will deal specifically with
the former,  vis-a-vis riverine floods,  and vulnerabilities ex-
pressed in terms of risks to populations and the environment as
well as approaches to their mitigation.

C.     Background
    There are many compelling reasons to consider transient
phenomena, such as floods, as a new and important area for
EPA to embrace, and in that role help avert the consequences
that often transform  such hazards into disasters. Indeed, beyond
the direct impacts on lives and property, there remain many
indirect consequences that are often too obscure or subtle to
receive  and equate attention,  whether  driven by  accidental
releases of contaminants into the environment or malicious and/
or opportunistic dumping. The implications of such scenarios
are far-reaching and cannot be  attended  to properly in the
disorder associated with the flood event, which often obliterates
facts and disallows reasoned and reliable accounting.

    Each year natural disasters kill thousands of people  and
inflict billions of dollars in economic loss. In 1987, the United
Nations General  Assembly adopted a resolution declaring the
1990s the International Decade for Natural Disaster Reduction.
The U.S. Congress endorsed the concept in resolutions passed
the following year, and a U.S. National Committee was formed
to develop a program for the nation. In a National Research
Council  report  (NRC, 1991), the Committee proposed a
multidisciplinary program that integrates hazard and risk  as-
sessments; awareness and education; mitigation; preparedness
for emergency response, recovery, and reconstruction; predic-
tion and warning;  strategies for learning from disasters; and
international cooperation. Nowhere in this report was a role for
EPA explicitly defined, and visible  EPA representation  in its
development and presentation was absent. Yet the area of
mitigating and reducing the impacts of natural disasters, i.e.,
protection of natural resources, research to improve prediction
of hydrologic hazards and impacts on natural resources, and
coordination and standardization of data collection, stands out
as initiatives within the mission of EPA.

    A disaster is said to occur when an extreme event coincides
with a vulnerable situation—surpassing society's ability to con-
trol or survive the consequences (The World Bank, 1991). Not
every crisis is a potential  disaster, but accelerated changes in
demography and economic trends often  disturb the balance,
thereby increasing  risks. Moreover, natural disasters are  often
caused at least partly by man-made changes in the natural
settings adjacent to a vulnerable environmental compartment,
e.g., a river, and there is evidence that worldwide incidence of
deaths from  extreme weather events (typhoons, hurricanes,
floods, and droughts) has increased by 50% on average each
decade between 1900 and 1990, accelerating significantly since
1950(OFDA, 1990).

    Likewise, the  damage caused by such events has  esca-
lated—increasing faster than population growth—with eco-
nomic costs per decade increasing exponentially. Hence, there
appears to be an apparent correlation between the frequency and
severity of a natural disaster and environmental degradation,
whether expressed in destruction of vegetative cover or in terms
of landless squatters who concentrate in fragile, often marginal
and orphaned areas, including those prone to flooding.

    Floodplains particularly are at risk from riverine flooding,
and although they occupy only a small fraction of most urban-
ized areas, they tend to be proportionately more developed. For
example, only 9.4% of the Boston urbanized area is in the
floodplain, but this area accounts for 19.1% of the total devel-
oped  area (Palm, 1990). This is  compared to Denver where
50.5% is  in  the floodplain but  contains 62.2% of the total
developed area, and to Phoenix with 18.4% in the floodplain,
but accounting for 89.2% of the developed area. Hence, urban-
ization in  flood-prone  areas has predictable consequences,
whether manifested in accelerated runoff from rainfall events or
water quality deterioration due to translocation of pollutants
from  urban sources.  These and  other ramifications can  be
anticipated and often translate in terms of adverse impacts on
human health and the environment as depicted by the hazard
sequence tree for thunderstorms in Figure C-l.

    Accounts of the consequences of flooding in the U.S. and
throughout the world, as exemplified by the recent floods along
the Mississippi River where  property damage exceeded $10
billion and large portions of the nine  contiguous states  were
declared federal disaster areas (National Geographic, 1994),
and the recent flooding along the  Rhine, Danube, and smaller
                                                         C-1

-------
                              Intense
                           Thunderstorm
i Winds
:

Short-term
Heavy
Precipitation


Sheet
Flooding


1
Increased
Stream Flow
Land;


Increased
Debris Capacity
1
1 	
Channel Increased Transportat
Redefined Debris Flow Systems
! i Undermine
1

Severed
Telephone
Cables

Communication
Disruption


Ruptured Ruptured
Sewer Lines Natural Gas Lines

|
Environmental Wastewater Environmental Fire
Contamination Services Contamination

1
Streamflov
Erosion

— . 1

V


on Power Poles
Undermined
d 1






Severed
Electr cal Lines


Power
Outages

[Ffre





1





1
Underground Utilities Chemical
Exposed Washout


Exposed Live
Power Lines

i i' '

[ Electrocution






Ruptured
Pipelines




Ruptured
Petroleum Lines



Environmental
Contamination
F



-ire







Ruptured
Water Mains
1

Water Supply Water
Contaminated Services

Figure C-1.   Natural hazards sequence tree (after May, NRC).
rivers in Germany,  France,  Belgium, and  the  Netherlands
(Reuters News Service, 1993), underscore the urgency of atten-
tion to floods as a representative new horizon of EPA concern.
The challenges of safeguarding  populations from  hazardous
materials swept away by flooding along the Mississippi, moni-
toring pollutants from unidentified sources, and restoring the
integrity and dependability of wastewater and drinking water
services constitute only a few issues on an agenda for action that
involves short-term and long-term implications for both policy
and technological decisions. Congress has mandated attention
to such natural hazards, and EPA has a vital role to play in its
evolution.
D.      Goals
    To effectively contribute to an action plan for assessing and
providing potential remediation of the consequences of natural
hazards in  the area of floods, and to act consonant with its
mission as the lead environmental agency of the nation and in
accordance with the NRC Report recommendations, EPA will
need to expand  its current  activities and develop appropriate
policies and  strategies to address environmental and health/
welfare aspects of:

    •   Hazards and Risk Assessments
    •   Mitigation and Prevention
    •   Emergency Response
    •   Prediction and Warning
                                                         C-2

-------
    •   Data Acquisition and Validation

    •   Education and Technology Transfer

    Whereas floods can serve as a representative example, the
effort should embrace the entire range of those natural disasters
creating environmental risks.

E.      Objectives
    Whereas the consequences of flooding (or other hazards)
are evident, as is the often lack of coordinated planning for or
reacting to a given scenario, the benefits derived from a proac-
tive  program in accordance with  the indicated  goals could
include:

        Reduction in life and property losses.

    •   Marginal land rehabilitation, zoning, and conversion.

    •   Safeguards against flood-derived contamination and
        its microscale and mesoscale effects on human and
        natural resources.

    •   Provisions for developing  flood-specific data bases
        and guidance to the public and private sectors.

    •   Catalysis of research and development for innovative
        preventive and remedial technologies.

    •   Beneficiation of EPA's image as an important con-
        tributor to reducing impacts of natural disasters and
        promoting a safer future for impacted populations.

F.      Strategies and Methodologies
    To  effectively address the  assessment and ability to re-
spond to transient phenomena such as natural disasters, it is
considered prudent for EPA to recognize the breadth and depth
of cause/effect relationships inherent in particular driver events.
This requires not only a sufficient understanding of the event,
but how it manifests itself within the arena of impact. There-
fore, an environmental impact assessment could be the primary
focus, allowing  ancillary  issues to play out  as a particular
scenario unfolds.

    There is already considerable  understanding of the phe-
nomena that may create natural  disasters, and a wide array of
published literature is available. Likewise, there is guidance for
policy makers and planners to better understand and mitigate
natural disasters (United Nations, 1991). These sources not only
deal  with floods, but with the array of possibilities either alone
or in combination. In  addition, there are detailed reports  of
various  natural disasters that provide retrospective opportuni-
ties to learn from related experiences, whether a Valdez ground-
ing,  infrastructure collapse, a Bophal industrial disaster, or a
terrorist action. Each such disaster tends to provide new insights
and  horizons not  otherwise recognized;  in the  case  of  the
Mississippi  floods, subsequent assessments revealed  both
microscale and macroscale impacts, including, for instance, the
unknown consequences of excessive fresh water discharges on
saline environments from the Gulf of Mexico, around the tip of
Florida, and up the Northeast Coast and the nearly million
metric tons  of nitrate  that were transported in the process
(USGS, 1993). Moreover, in all such circumstances, a range of
scenarios can evolve between a state of preparedness to one of
nonpreparedness at the opposite extreme. Hence, it would be
instructive to develop cause/effect matrices within these two
bounds, identifying die drivers creating the potential hazard,
and evaluating the environmental impacts accordingly.

    The natural hazards sequence  tree approach previously
introduced (Figure C-l) could be  used to reveal direct and
indirect causal factors that could trigger possible adverse im-
pacts. Then by  using a network analysis  (Westman,  1984)
incorporating the vulnerable environmental compartments (e.g.,
water supplies, aquatic ecosystems), the initial and final effects,
controlling mechanisms, and possible  corrective action, ad-
justed in terms of magnitude, importance, and probability of
occurrence as dictated by the particular selected preparedness
scenario, the most drastic output would be determined for the
case of nonpreparedness,  while the others would  be  some
increment thereof and lessening with degree of preparedness.

    The product of such a network analysis could be articulated
in the form of a hazard summary directed at the environmental
compartment of focus, arrayed in terms of magnitude, impor-
tance, and estimated  probability, and  fortified by  pertinent
descriptive comments  drawn from antecedent knowledge and
experiences. If extended to other disasters besides floods, it
could take the form of a disaster effects matrix showing likely
damage, loss, shortage, etc., consequenced by the respective
disasters on various system components, as "what if scenarios
are  imposed. Such an  approach has  been advocated for water
utilities  (Shioda, 1994) to establish protocols and action plans
for emergency preparedness and response (Table C-l).

    Since environmental impact assessment involves
crossdisciplinary expertise  and focus on health and natural
resources  often within the domain  of the missions of other
federal and state agencies, responsibility for developing and
implementing strategies and methodologies should be shared,
but EPA should assume a  leadership role on issues involving
assessment of environmental consequences of the various tran-
sient phenomena. Such coordination is vital, so that the estab-
lished Federal  Emergency Management Agency (FEMA),
National  Oceanographic  and Atmospheric Administration
(NOAA),  and Corps of Engineers  programs for emergency
response, prediction and warning, and mitigation, respectively,
can be broadened to embrace a responsibility to acknowledge,
prevent, or mitigate also the environmental consequences of
transient phenomena.
                                                         C-3

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Table C-1.    Disaster Effect Matrix Showing Likely Damage, Loss, or Shortage Resulting from Hazards (Shimoda, 1994)
  System Components
 Earth-
quakes
Hurri-
canes
Torna-
 dos
Floods
 Forest   Volcanic
or Brush    Erup-
  Fires     tions
 Other    Water  Hazardous
 Severe   Borne    Material   Structure
Weather  Disease    Spill       Fire
Administration/operations
     Personnel
     Facilities/equipment
     Records

Source water
     Watersheds/surface source
     Reservoirs and dams
     Groundwater sources
     Wells and galleries

Transmission
     Intake structures
     Aqueducts
     Pump stations
     Pipelines, valves

Treatment
     Facility structures
     Controls
     Equipment
     Chemicals

Storage
     Tanks
     Valves
     Piping

Distribution
     Pipelines, valves
     Pumper PRV stations
     Materials

Electric power
     Substations
     Transmission lines
     Transformers
     Standby generators

Transportation
     Vehicles
     Maintenance facilities
     Supplies
     Roadway infrastructure

Communications
     Telephone
     Two-way radio
     Telemetry
                                                                C-4

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G.      References
    1   Mairson, A., "The Great Flood of '93," National Geo-
        graphic, Vol. 185, No. 1, 42-81 January 1994.

    2   National Research Council (NRC), "A Safer Future—
        Reducing the Impacts of Natural Disaster," National
        Academy Press,  Washington, DC, pp.  67, ISBN 0-
        309-04546-0, 1991.

    3   "Managing Natural Disasters and the Environment,"
        Keimer, A. and Monasinghe, M.  [Eds.], The World
        Bank, Washington, DC, pp 215, 1991.

    4   OFDA (USAID Office of Foreign Disaster Assistance),
        Washington, DC, 1990.

    5   Palm, R.I., "Natural Hazards: An Integrative Frame-
        work for Research and Planning," The John Hopkins
        University Press, Baltimore, MD, pp.  184, ISBN 0-
        8018-3866-5, 1990.
6   Reuters News Service, "Holiday Floods Keep Fami-
    lies from Homes," The Pittsburgh Press, December 25,
    1993.

7   United Nations, "Mitigating Natural Disasters—Phe-
    nomena, Effects and Options," United Nations Publi-
    cations, New York, NY, p. 164, ISBN 92-1-132019-4,
    1990.

8   United  States Geological Survey, "Occurrence and
    Transport of Agricultural Chemicals in the Mississippi
    River Basin, July through August 1993," U.S. Geo-
    logical Survey Circular 1120-C, Denver Federal Cen-
    ter, Denver, CO, pp. 22, 1993.

9   Shimoda, T.A., "Emergency Preparedness  and Re-
    sponse," Journal AWWA, Vol. 86, No. 1, 84-92, Janu-
    ary 1994.

10  Westman, W.E., "Ecology,  Impact Assessment, and
    Environmental Planner,"  John Wiley & Sons, New
    York, NY, pp. 532, ISBN 0-471-80895-4, 1985.
                                                      C-5

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           Appendix D

        Core Competency
                  by

Dr. Wm. Randall Seeker, Senior Vice President

Energy & Environmental Research Corporation

               Irvine, CA
             Prepared for

         Futures Project Report
   Environmental Engineering Committee
         Science Advisory Board
   U.S. Environmental Protection Agency

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A.     Introduction
    The purpose of the EPA SAB Environmental Futures Project
is to assist in the continued development of EPA's capacity to
anticipate environmental problems, issues, and opportunities.
The Environmental Engineering Committee has focussed on
three scenarios that might occur in the future, analyzed  the
consequences of  these  scenarios if EPA continued  on their
current course of action, and has made some recommendations
on how EPA could more appropriately respond to these future
issues resulting from the scenarios. These scenarios are clearly
not the only scenarios that could happen in the future. Nonethe-
less, it is  crucial  for EPA to be ready for any foreseeable or
unforeseeable event that falls within the mission of the agency.
Since no scientific method exists to truly predict what scenario
will occur, a solid foundation of underlying skills, knowledge,
technology, and science, which enable Agency to deliver  the
products and services suitable to respond  to  any  plausible
scenario, is needed.

    The concept of core competency has been developed and
used by industry and other agencies to represent those necessary
underlying skills, knowledge, technology and science to carry
out their mission (see attachment). The definition of core com-
petencies adopted here is as follows:

        "the essential and distinct scientific and technical
        capabilities that enable EPA  to fulfill it's current
        and future missions."

    This paper will focus on the need to systematically analyze
and define those core scientific and technical competencies
needed  by the Agency  to respond to  problems, issues,  and
opportunities in the future, and to define a process to continue
the study.

B.     Drivers
    Reduced resources will  likely be available to EPA in  the
future to address environmental issues. At the same time there
will be significant pressure on the Agency to approach regula-
tions from a holistic approach, i.e., address multimedia pollut-
ants from all sources using not just end of pipe control but true
pollution prevention. Hence with less resources EPA will have
to marshal multidisciplinary teams to address multi-pollutant
problems. In addition, there is a need  for  even more rapid
response to environmental problems associated with transient
phenomena  such  as natural  disasters and  terrorism,  since in
these instances, there is little  time to  conduct studies  and
develop expertise after the transients occur. Thus in the future,
the Agency must be able to respond faster to broader environ-
mental issues but with less resources.

    There will be a significant need to extract information from
ongoing activities and advances taking place outside of  the
Agency due  to the availability of less  resources at  EPA to
address broader issues. It is important to determine what other
agencies are doing in the environmental field in order to avoid
duplication of effort and  to determine if EPA should develop its
own core  competency in certain areas or rely on others. The
concept of virtual companies could be applied to government
agencies i.e., EPA could serve the role as a clearinghouse  and
coordinator of all environmental activities for all other agen-
cies. Nonetheless, the Agency  will need to have the skilled
expertise to be able  to  recognize  and to  use these  external
resources and advances. In addition, an infrastructure will be
needed to allow the use of information generated by other
agencies and to use the core competencies of other agencies
particularly with less overall funds.

C.     Scenarios
    The scenario that arises from these drivers is that in the
future, EPA will have less  resources with which to deal with
broader multimedia pollutant issues and must deal with some of
them in a more rapid fashion due to their transient nature. The
Agency will lose core  competency  that is needed to address
these  new problems. Other government agencies will play a
much more significant role in environmental research and de-
velopment.

D.     Consequences
    The consequence of this continued loss of competencies
will be the following:

    1   Loss of capability to serve customers. Understandably,
        "technology alone cannot solve environmental prob-
        lems," as suggested in the  Environmental Futures
        Project joint WRI and EPA study. On the other hand,
        another issue that emerged from the same  study is
        "despite the potential of innovative  technologies to
        improve environmental quality in many instances, this
        potential may  not be fully realized." Unless critical
        expertise and technologies  are defined and nurtured,
        EPA will not  have the capability to respond effec-
        tively, regardless of legislation and  regulations that
        exist.

        EPA's products and services are typically regulations,
        procedures, scientific knowledge,  technologies,  and
        deployment services. The level of competence needed
        to deliver such products is built over many years. It is
        not equivalent to building widgets, nor is it equivalent
        to simply responding to customer requests. Customers
        include those who pay for, use, and/or benefit from
        products and services. Therefore, EPA customers are
        many, including  Congress, taxpayers,  industry,
        academia, and most importantly, the public at large.
        The very nature of the work requires  mat the Agency
        develop a strategic vision and prepare itself now for
        the types of products, services, research and develop-
        ment needed to assure  a healthy nation. It is equally
        important that the Agency not overlook, or simply take
        for granted, current competencies required for the fu-
        ture. Only through careful study and analysis will the
        critical competencies be identified and developed.

    2   Inadequate basis for decision-making. If evidence ex-
        ists that current competencies are not being adequately
        funded, EPA will not be in a position to fully carry out
        its responsibilities. The possibility exists that the com-
        petence will be lost in Congressional budget debates.
        Particular emphasis should be placed on those compe-
        tencies that cut across national programs and their
        applications For example,  DOE  Defense  Programs
        identified  materials as critical  to both defense and
        nondefense applications. They believe that they must
        stay on the cutting-edge of materials science to fully
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        address civilian and economic competitiveness as well
        as weapon stockpile problems. Of course, not all tech-
        nical capabilities can be equally  funded,  especially
        with declining budgets and tighter resources. Nor should
        they be. This type of approach to defining those com-
        petencies that are critical to EPA's future provides a
        basis for decision-making and priority-setting, ele-
        ments that  are essential to the current management
        approach within EPA.

    3   Short-term  approaches and  solutions. Prahalad and
        Hammel  suggest that, "If core competencies are not
        recognized, individual  units will  pursue only those
        innovation opportunities that are close at hand—mar-
        ginal product-line  extensions  or  geographic expan-
        sions." Related  to EPA, unless  competencies are
        identified and developed, programs may pursue only
        those solutions that are relative  to the specific problem
        at hand,  perhaps overlooking  a more global, future
        need that could be  addressed with a shift in program
        definition and priority, and thereby simultaneously
        building future competencies. It is this type of compre-
        hensive view of Agency-wide competencies that will
        sustain the Agency as the respected leader. According
        to the final Megatrends report, "Comprehensive, multi-
        disciplinary, and integrated solutions will be necessary
        to solve future environmental problems."

    4   Lack  of science transferred to technology.  The
        Megatrends report  also identified  seven  critical chal-
        lenges the Agency will face in the future. Challenge  #5
        outlined in the report states, "To create a world-class
        scientific capacity  within EPA in order to give the
        Agency the ability to develop and utilize new knowl-
        edge and to serve as a catalyst for  technology innova-
        tion critical to achieving the nation's environmental
        objectives." The authors of this report have recognized
        the  need to identify and maintain the scientific knowl-
        edge base  and technologies  to carry out the EPA
        mission.

E.      Mitigating  Actions
    1   Identify critical core competencies.  EPA's primary
        mission is to  protect the environment and the health
        and safety  of  all Americans.  Over  the  years, EPA-
        sponsored programs  and activities have  been able to
        respond to key developments and events  to assure
        environmental health and safety. However, it is simply
        not enough to assume that the future quality of EPA
        response will  equal  those of  the past.  In fact, one
        premise is  that unless  critical  competencies that are
        needed to anticipate significant impacts and carry out
        future programs are defined and nurtured, the opposite
        will occur. Objectives should be developed for build-
        ing competencies in line with strategic directions and
        vision, and investments must continue to be made to
        ensure the Agency's  viability in these critical areas.

        As  a regulatory agency, EPA is responsible to the
        public  to implement Congressional  legislation. As a
        result,  the  programs are structured  according to the
        legislative acts, and  in the last five to ten years, the
        focus of the work has shifted from  ensuring a scientific
base for environmental protection to developing, imple-
menting, and  monitoring  regulations. The agency's
effort to strengthen and even maintain current compe-
tencies has  gotten pushed to the "back burner" as
Congress foisted more regulatory activity-related bur-
dens  onto  an increasingly overstretched  EPA. The
question now is to what extent will the Agency be able
to respond to future events  and  uncertainties  when
most of its focus has turned to regulation development
and its enforcement? What  scientific  and technical
expertise, knowledge, and capabilities are being lost or
ignored in the quest to simply regulate?

Identify critical core research. One critical component
of maintaining core competencies is to maintain criti-
cal research programs. The Agency must provide a
leadership role by formulating and executing a core
research program that helps solve environmental prob-
lems  associated with all types of  industrial, commer-
cial, and municipal operations well into the next century.
As the scenarios defined in this study have shown, the
future holds potentially new problems that are  yet to
unfold for both the U.S. and the world. New technolo-
gies and  manufacturing processes will be required to
respond to these problems. The developed countries
cannot solve  global environmental problems alone.
Environmentally acceptable control measures and tech-
nologies  must be developed  and deployed in a cost
effective manner by the developing nations to prevent
the continued  deterioration of the global environment.
However, these new problems will also generate a new
opportunity for U.S. industry. The national and inter-
national market for environmentally acceptable tech-
nologies  will  grow rapidly  in the next decade. For
example, reduced imports of petroleum products and
the export of environmental technologies could help to
reduce this country's trade deficit.

EPA  has a unique mission to protect the environment
and must establish core research programs in several
key areas.  This core research must be crosscutting.
Basic processes that are common to numerous emis-
sions issues should be addressed concerning all-gas-
eous, liquid and solid effluent and wastes. For example,
research on the formation and destruction of a particu-
lar by-product can be  applicable to a wide  range of
processes. The application of knowledge generated by
a basic research program will identify and facilitate the
solution of environmental problems of the next twenty
years.

EPA  should maintain a solid core research program
with the following objectives: 1) drive pollutant reduc-
tion technology to the limit of technical and economic
feasibility; 2) develop the capability  to predict the
amount of all  pollutants present in the effluent steams
of all sources; 3) promote pollution prevention and the
development of low pollutant technology for existing
and new advanced systems; 4) provide a science  and
technology base for regulations.

EPA  is the only Agency with the authority to regulate
all industrial,  commercial, and municipal systems that
have  the potential to emit pollutants in harmful con-
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centrations. Also, the Agency has the unique mission
to protect human health and welfare and to conserve
the environment. In certain areas EPA is cooperating
with other countries to control pollutants that tran-
scend national boundaries.  A core research program
must be started by the Agency to generate basic infor-
mation that will:  1) provide the impetus to develop
new technologies; 2) help the development of future
regulation by providing a sound scientific base, and 3)
help to identify and solve environmental problems
created by future developments.

The EPA core research program should be focused on
prevention, and must be distinguished from the efforts
of other agencies. More importantly, the  plan must
concentrate upon preventing pollutant formation thereby
avoiding the additional complexity and expense of
downstream controls. In addition, the results of the
research must be quantifiable.  The plan  should be
closely coupled with real world problems and be appli-
cable to all  industrial  operations  and pollutants.  It
should generate identifiable products in both the near
and the long term. These products may be procedures,
solutions to problems or prototype pollution control
systems and therefore, the results of the research plan
will be readily quantified.

The core research program should be based upon two
components, cornerstones (applied system specific de-
velopment projects)  and a keystone (broadly based
fundamental research). Cornerstones are  vertically in-
tegrated development projects targeted at specific prob-
lems  with outputs  including new systems;  retrofit
technologies, and design procedures. The keystone  is
the heart of the plan. It includes basic and engineering
research programs that have long-term applicability to
a wide range of problems.

Adopt management approaches that use the core ar-
eas. Simply the identification of these critical areas
will not suffice. Only if the Agency uses the informa-
tion when making management decisions such as es-
tablishing strategic directions and plans, investments
and disinvestments, alliances and partnerships,  and
identifying  process  reductions  and organizational
streamlining, will the information be  of value. Pro-
grams that add to the scientific base in at least one of
these critical areas should become high-priority. Addi-
tionally, the critical areas can be exploited  to identify
new programs and applications to respond faster to
broader issues.

Metrics should be implemented to determine the accu-
racy of the identified areas and to provide management
with facts to consider when making decisions. A criti-
cal metric  is the extent to which  the results of the
research areas are transferred to others who can use the
information to develop proprietary products and pro-
cedures. Industry must take part, but EPA provides an
impartial role ensuring that the benefits of this impor-
tant core research program are readily available.
        EPA must assume  a corresponding leadership role
        with the participation of industry and other societal
        factors. There must be a balance between in-house and
        extramural activities, depending on  where the core
        competency lies. The technical leadership resides within
        EPA laboratories, and EPA must make a long-term
        commitment to research to attract and retain top flight
        researchers to assume this leadership role.

F.      Recommendation
    In order to more rapidly respond to multimedia emissions
with less resources, the agency must fully define and invest in
the Agency's core and research competencies. To fully define
the critical core and research competencies for the future, the
following process is recommended:
    1    Analyze Current Programs and Future Scenarios for
        Competency Components

        This step provides the analysis required to understand
        technical capabilities, technologies, and other exper-
        tise required to successfully address both current pro-
        grams  and future scenarios within the Agency. Once
        all of the components are  defined, they are aggregated
        to identify clusters and similarities so that higher-order
        groupings can be defined.  These groupings become
        one input to defining critical competencies for the
        Agency (Set A).
    2   Generate Strategic Directions

        Strategic planning should run parallel to the step above.
        However, since the information from this process should
        be considered in planning, this step refers only to
        strategic guidance and directions. Needed here are
        upper management and planners' views of the futures
        with the most probable potential, issues that will face
        the  Agency, and their vision of the Agency's new
        mission and management principles.  A second input
        data set is generated (Set  B).
    3   Benchmark Industry,  Other Agencies and Academia
        Competencies

        In this step the Agency compares the critical compe-
        tencies from  step one to those  that industry, other
        government agencies, and academia believe to be im-
        portant. Naturally, a federal Agency should not dupli-
        cate their competencies. Instead, duplications should
        be identified, questioned, and appropriately assigned.
        Critical gaps should be identified and discussed, and
        new slants on older technologies should be investi-
        gated. This provides the third set of input data (Set C).
    4   Reconcile Input Data to Determine EPA Core Compe-
        tencies

        Bring the three data sets  together to  define the EPA
        Core Competencies. Contrasts and comparisons should
        be made across data sets to identify critical areas. This
        step, in particular, should  be conducted with a number
        of customer representatives to achieve consensus on
        the  areas. This process is similar to the one success-
        fully implemented by Sandia National Laboratories.
        More  recently, DOE is applying similar concepts in
        their decision-making processes.
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                                                  Attachment
Definitions
Business Core Competency Definition.
    According to Prahalad and Hammel, "Core competencies
are the collective learning in the organization, especially how to
coordinate  diverse production skills and  integrate multiple
streams of technologies." (Harvard Business Review, May-June
1990). Core competencies are not only technical capabilities but
are the unique combination of several components (e.g., capa-
bilities, technologies, facilities, communication streams,  skills,
expertise, systems, etc.) that enable  an organization's products
and services to surpass others. They create the differentiating
edge needed to create and capture a market.

DOE's Core Competency Definition.
    In a report dated January  15,1993, from the DOE Assistant
Secretary of Defense to the Secretary of Energy entitled,  "Core
Competencies  Required to  Fulfill the Strategic vision of the
Defense Laboratories," core competencies are defined as, "the
essential and distinct scientific and technical capabilities that
enable the Defense Laboratories to fulfill their defense-related
DOE mission responsibilities."

EPA's Core Competency Definition.
    Prahalad and Hammers definition is applicable to industry
and the marketplace, the DOE definition applies to government
agencies  and their need  to remain  the central repository of
scientific intelligence in support of their mission, and therefore
more applicable to our task. Also, this project has an emphasis
on the future.  Therefore, the  definition of core competencies
adopted here is as follows:

        "the essential  and  distinct scientific and  technical
        capabilities that enable EPA to fulfill its current and
        future missions."
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                       Appendix E


                  Futures Methodology


 Recommended Issue Identification and Assessment System
Possible Structure and Operation of an EPA "Look-Out" Panel
                            by

                 Mr. Theodore J. Gordon, Retired

                       23 Sailfish Road

                       Vero Beach, FL
                         Prepared for

                     Futures Project Report
               Environmental Engineering Committee
                     Science Advisory Board
               U.S. Environmental Protection Agency

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           1.  Recommended Issue Identification and Assessment System
    Considering the lessons learned by the EEC Futures Writ-
ing Committee, we recommend that EPA implement a system
for detecting and analyzing incipient future issues. The system
should have the following characteristics; it should:

        draw input from a wide range of sources.

        operate in a continuous rather than a "one-shot" mode.

        have a memory, so that suggestions that are set aside
        today for lack of data or interest can be reassessed in
        the future.

        be quantitative, wherever possible.

        be subject to scrutiny by people outside of the process.

        make goals explicit.

        recognize that many futures are  possible.

    One such system is illustrated in Figure E-l and described
below. We envision this system being run by EPA  staff and
involving experts both from within and outside the Agency.
    The central purpose of the panel illustrated in Task 1 is to
identify issues, trends, and developments that could have  a
significant impact on the nation's environment or EPA's mis-
sion, strategies, or objectives.

    The panelists would be contacted on-line, through the mail,
or by fax to scan their fields and provide observations about
new or intensifying issues that might face EPA. They are also
asked for judgments about plausible goals for the Agency and
the environment and possible means for achieving these goals.1

    Because the number of respondents is usually small,  a
"look out" panel will not produce statistically significant re-
sults; in other words, the results provided by the panel will not
predict the response of a larger population or even the findings
of a different panel. They represent the synthesis of opinion of
the particular group, no more or less.

    The results produced by an EPA "look out" panel will
depend on the knowledge and cooperation of the panelists; for
this reason it is essential to include persons who are likely to
                                                          1 Some of the material describing the panel is drawn from letter from T.J. Gordon to
                                                           Dr. Ray Leohr of the SAB.
                                                                           Task 7
                                                                                        Action
Figure E-1.       A system for anticipating and evaluating future environmental issues.

                                                        E-1

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contribute valuable ideas. In a statistically based study such as a
public opinion poll, participants are assumed to be representa-
tive of a larger population; in panels of this sort, nonrepresenta-
tive,  knowledgeable persons are  needed. EPA laboratory
directors, division chiefs, state environmental personnel, repre-
sentatives of environmental action groups might be invited to
participate.

    The  screening step, Task 2, would employ criteria of the
sort the EEC has found useful in assessing the priority of issues,
such as:

         scope (i.e. the number of people affected)

         severity

         novelty

         plausibility/probability/certainty

         uncertainty

         irreversibility

         imminence

         visibility/publicity

    The  issues of Task 1 would be screened according to such
criteria and the top rated set fed back to the panel in Task 3.
Here  the panelists would be asked to comment on issues sug-
gested earlier by others on the panel.
    Those issues surviving scrutiny  would  flow to Task 6,
Analysis. This quantitative assessment work would be accom-
plished  by staff, appropriate Scientific Advisory Committees
and outside consultants. It would be, at this stage,  an early
evaluation of the extent of the problem and result in recommen-
dation about the need  for future data collection study,  and
policies.

    The analysis would be conducted against the backdrop of
the reference scenarios developed in  Task 4  and goals  and
vision of the  future environment developed in Task 5.

    Task  4,  Scenarios, involves  the  production and mainte-
nance of a set of scenarios that capture the evolution of drivers
and environmental  prospects in the United  States and other
countries; it  also is the home  of quantitative environmental
models and monitored environmental variables that can be used
in analyses of future issues. It would be accomplished by staff.

    The goals and  vision statements  of Task 5 represent the
desired  future state of the environment. Again, these visions
would,  to the extent possible, be in quantitative form  and
maintained by staff.

    Policies  suggested  by the  Task 6 analysis would tested
analytically and submitted to the panel for qualitative judgment
in Task 7. Those policies that are  found to bring the expected
future state closer to the desired goals and visions  would be
recommended for action.
                                                           E-2

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                 2.  Possible Structure and Operation of an EPA "Look-Out" Panel
    The central purpose of an EPA "look-out" panel would be
to identify trends and developments that could have a signifi-
cant impact on the nation's environment or EPA's mission,
strategies, or objectives.2

    Picture the panel in operation. Participants seldom meet
face to face; rather, they are asked on-line, through the mail, or
by fax to provide several kinds of judgments:

         They are asked to scan their fields and provide obser-
         vations about de novo or intensifying issues that might
         face EPA.

         They are asked for judgments about plausible goals for
         the Agency and the environment and possible means
         for achieving these goals.

         They are asked to comment on the observations about
         issues, goals, and policies made by others on the panel.

         In some instances they are asked to provide data, if
         available, to back up their positions.

    From a substantive standpoint, the issues addressed by the
panel are associated with the environment or EPA's policies
and regulations. The issues can focus on  essentially any topic;
for example, highly technical discussions  about risk and dosage
to discussions about the future  political force of an "environ-
mental justice" movement. The geographic scope of the panel's
activity  concentrates on the U.S., but world issues are fair game
if, in the end, the U.S. might be affected.

    The time  horizon is  flexible. On  the one hand, the panel
doesn't  move so far out that the discussion becomes esoteric; on
the other hand, the panel includes issues—no matter what their
timing—that could be mitigated by immediate action. The rule
of thumb is that "we go  out in time as far as is necessary to
identify problems that  could or should trigger action tomor-
row."

    With this  image in mind some  daunting questions arise:

        Just how can the participants be  chosen? What should
        be their range of expertise? Should they be  specialists
        or generalists? Should there  be a fair sampling and
        representation of various viewpoints in the makeup of
        the panel? Should all panelists be scientifically  or
        technically oriented? How can the public participate?
         If the panel is large, how can the right question be
         asked of the right person to avoid burdening every one
         with the  chore of reviewing every question? What
         questions should be asked?

         What media should be employed? E-mail communica-
         tions are preferred, not only because of the low cost of
         transmission but because electronic responses are much
         easier to collate. But requiring communications by e-
         mail will effectively deny access to many people who
         might have a great deal to contribute.

    The Millennium Project Feasibility  Study (conducted by
the United Nations University under contract to EPA) defined
three kinds of questions that might be asked of participants in a
panel of this sort.3

         Forecasts  of the occurrence of future developments.
         Forecasts of future developments call for answers about
         when an event is expected to occur or about the future
         value of some trend  or parameter. We include here
         observations about some worsening aspect of the envi-
         ronment and  speculation  about its possible conse-
         quences.

         The desirability of some future state. Questions deal-
         ing with desirability ask for judgments about whether
         an event ought to occur, and the basis for the recom-
         mendations.

         The means for achieving or avoiding a future state.
         Questions dealing with policy involving the traditional
         reporter's  questions about implementation seem ap-
         propriate  here:  who, what, when, where,  and how
         much? But to this set we must add: to what end? In
         other words, questions about policy ought to be linked
         closely to the objectives sought and the likelihood that
         any policy will, in fact, accomplish its intended goals.

    These three types of questions may require different kinds
of experts.  The likelihood questions  may  involve  hands-on
experience and intimate knowledge of the frontiers of research.
The desirability questions  may involve a moral, political, or
social dimension quite distinct from the disciplinary expertise
involved in judging likelihood.  The policy question may  in-
volve knowledge of the art of the possible and political savvy.

    With the advent of the wide use of Internet and electronic
bulletin boards, one is tempted to simply say, "Let the discus-
2  In this discussion, I have used the term "look out" as a substitute for the more usual
 term "environmental scanning" to avoid the potential confusion in the use of word
 "environmental" in this context. "Environmental scanning" encompasses the total
 environment surrounding an activity: economics, markets,  technology, social
 change, regulation, etc.
3 T. Gordon and J. Glenn, "Issues in Creating the Millennium Project," United
 Nations University, funded by US EPA, October, 1993. Some of the material in this
 paper is drawn from this source.
                                                          E-3

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sion of these sorts of questions be wide open. Use little struc-
ture. Let the conversation flow as it may." This, I think, will not
prove to be efficient. Rather, I recommend a structure based on
the Delphi method developed at RAND in the early 60s  and
used many times since.

    The RAND researchers explored the use of expert panels to
address forecasting issues. Their reasoning went something  like
this: experts, particularly when they agree, are more likely than
nonexperts to be correct about questions in their field. However,
RAND (and many others) found that bringing experts together
in a conference room introduces factors that may have little to
do with the issue at hand. For example, the loudest voice rather
than the soundest argument may carry the day; a person may be
reluctant to abandon a previously  stated opinion  in front of
one's peers. The give and take of such face to face confronta-
tions often gets in the way of a true debate.

    The Delphi approach was designed to eliminate the prin-
ciple obstacles to conference room meetings of experts. In most
applications:

        Several rounds are employed; general questions  are
        asked in the first round.

        In a second round, reasons for extreme positions are
        sought.

        These reasons are fed back to the  group in  a third
        round with instructions to reassess positions in view of
        the reasons for extreme opinions.

    To encourage a true debate, independent of personalities,
anonymity is required in the sense that no one knew who else is
participating. Further, to eliminate  the force of oratory  and
pedagogy, the  reasons given for extreme opinions  are synthe-
sized  by the researchers in order to give all of  them equal
"weight." These aspects: anonymity and feedback, represent the
two irreducible elements of a Delphi study.

    In the early days, driving toward a consensus  was impor-
tant. Today, consensus is less important for many investigators
than it used to be; now a useful product of such studies is
crystallization of reasons for dis-sensus. Furthermore, this pro-
cess is now seen as no more or less than a systematic means of
synthesizing the judgments of experts—the aggregate judgment
representing a kind of composite expert composed, in  the  do-
main of interest, of the expertise of all of the  participants.

    Some  researchers have found that Delphi, when used in
forecasting, does not provide more accurate answers than other
methods and that consensus occurs as a result  of pressure
brought  on participants that have extreme  opinions.
(Woudenberg, 1991) Even if this is so, our application here is
more modest than accurate forecasting: it is simply an efficient
way to gather, synthesize, and explore expert opinion.

    There are major differences between a "classical" Delphi
and the use proposed here. First, we are not very concerned with
forecasting accuracy; rather, we want to surface observations
about possible deleterious developments and engage in  a struc-
tured, multidisciplinary discussion about the potential evolution
and consequences of the developments. Second, this is not seen
as  a "one-shot" study,  but rather,  an  ongoing, continuous
inquiry. But the process uses anonymity and feedback to advan-
tage.

    Because  the  number of respondents is usually  small, a
"look out" panel  will not produce statistically significant re-
sults; in other words, the results provided by the panel will not
predict the response of a larger population or even the findings
of a different panel. They represent the synthesis of opinion of
the particular group, no more or less. The value of this work will
rest with the ideas it generates, both those which evoke consen-
sus and those that do not.  The  arguments for  the  extreme
positions also represent a useful product. This will not be a
substitute for analysis; it will provide only an early warning or
hints that deserve follow up.

    The results produced by an EPA "look  out"  panel  will
depend on the knowledge and cooperation of the panelists; for
this reason, it is essential to include persons who are likely to
contribute valuable ideas. In a statistically based study such as a
public opinion poll, participants are assumed to be representa-
tive of a larger population; in panels of this sort, nonrepresenta-
tive, knowledgeable persons are needed. So the first problem to
be addressed is how to select potential participants. EPA labora-
tory  directors, division chiefs, state environmental  personnel,
representatives of environmental  action groups  all  come to
mind.

    But how about "unknown" people who are outside of the
normal lines of communication but who may be able to contrib-
ute new and valuable perceptions? Here are some suggestions:

        use bulletins boards to identify contributors who have
        something to say

        get recommendations from university professors about
        bright students

        advertise for participants

    Detailed design, of course, will rest with the EPA staff. But
here are some thoughts about structure and operations to
trigger discussion:

        The panel is made  up of invited expert participants
        from EPA, the environmental community, as well as
        the public, primarily from the U.S., but other countries
        may be represented as well.

        Anonymity (in the sense  that comments will be
        unattributed) is promised, and feedback of information
        is used in sequential questionnaires.

        Panelists are encouraged to initiate contact whenever
        they see looming issues.

        Non-EPA personnel are paid for their time and com-
        munications costs.

        The panel operates continuously.

        Questionnaires are  drafted by  staff and sent to the
        participants by fax, e-mail, and  mail.

        One part of every questionnaire will  request percep-
        tions about newly observed nascent  issues; another
        part will request comments on issues reported by oth-
        ers in earlier rounds. Questions may also be included
                                                          E-4

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    seeking judgments about goals and contemplated poli-
    cies.

    A "filtering" system will be used by staff to assure that
    the right questions go to the correct persons, while not
    missing die opportunity to gain contributions from
    those outside of the topic area.

    Review of responses is careful; reports are made peri-
    odically and provided to the panelists.

Also, consider the possibility of:

    establishing a set of indicators, the future of which can
    be assessed by the panel  in view of the  issues they
    discuss.

    an annual meeting of participants.
Ted Gordon

January 25, 1994
                                                       E-5

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                                       •frUS. GOVERNMENT PRINTING OFFICE: 1995 - 650-006/22070

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