6411 United States Environmental Protection Agency Communications And Public Affairs (A-107) 21Z-1021 August 1991 The Next Environmental Policy: Preventing Pollution .S. Environmental Protection Agency :~':ion 5, Library (P'-i^i) -• / West Jackson C:: • : i Pth t\*n ------- The Next Environmental Policy: Preventing Pollution William K. Reilly William K. Reilly is the Administrator of the United States Environmental Protection Agency. "Meet the malady on its way." Persius, Satires, Book 3 For the United States to make as much environ- mental progress in the next twenty years as it has in the last twenty, we need to adopt a bold new approach to environmental policy—and a strong new ethic of environmental stewardship. Simply put, we have to work much harder to prevent pollution before it occurs; cleaning it up after the fact is no longer good enough. Environmental protection has been an American success story—perhaps the premier public policy suc- cess of the past two decades. Since the celebration of the first Earth Day in April, 1970, the United States has substantially curbed air and water pollution, cle- aned up much of the accumulated arrears of past gen- erations, and altered forever the meaning of doing business in an environmentally conscientious society. Our environmental commitments of twenty years ago established precedents now being followed by the rest of the world. But the quest for environmental quality has turned out to be far more complex than we supposed two de- cades ago. Our discovery of new environmental di- lemmas has more than kept pace with our ability to solve old ones. The techniques that we have been us- ing to protect the environment, as effective as they have been in the past, now need to be augmented with innovative new strategies. The State of the Environment The closing decade of the 20th century is an appro- priate time for the United States to reevaluate how we think about and deal with environmental problems. Environmental issues have again surged to the top of the nation's agenda. Business leaders, citi- zen activists, politicians, and consumers alike have ex- pressed renewed concern for the quality of life and the future of the planet. When the Wirthlin Group asked respondents in a recent poll to name the coun- try's top concern, the environment was one of the three issues most often cited. The poll also found that the proportion of Americans who think of themselves as environmental activists doubled during the past decade. More than half of the respondents reported changing their behavior because of concerns about the environment. Reflecting this heightened level of public concern, President Bush and Congress worked together last year to enact a stringent and far-reach- ing new Clean Air Act—serving notice that the 1990s will indeed be the "Decade of the Environment." At this crucial juncture, the environmental "glass" can be seen as either half-full or half-empty. Last year, in its twentieth annual report, the President's Council on Environmental Quality observed, "After two decades of unprecedented environmental activ- ism, some facets of the environment show remarkable improvement, while the quality of others has deterio- rated sharply." The investments that the United States has made in pollution control since 1970 have paid handsome div- idends. Over the past two economically robust de- cades, while the U.S. gross national product grew by 70 percent in real dollars, the nation made significant and indisputable progress in cleaning up its air and water. For example, in every major category of air pollution except nitrogen oxides, total emissions have either leveled off or declined since 1970. Emissions of particulates are down 64 percent; sulfur oxides are down 25 percent; volatile organic compounds are down 29 percent; carbon monoxide is down 38 per- cent; and lead is down 96 percent. And there has been substantial progress on other fronts as well: Hundreds of primary and secondary wastewater treatment facilities have been built; ocean-dumping of wastes has almost been eliminated; land disposal of untreated hazardous wastes has largely stopped; thousands of hazardous waste sites have been identified, and clean-up is well underway on hundreds of the most degraded sites; and the pro- duction and most uses of such toxic substances as as- bestos, DDT, and PCBs have been banned. Taken to- gether, these and other actions have had a measurable, positive effect on environmental quality in this country, and they have set an example for other nations around the world. Domestic Affairs ------- Consider just one concrete example of the net ben- efits of environmental protection: The Environmen- tal Protection Agency (EPA) conducted an extensive study of benefits and costs during the phase-out, over an eight-year period, of leaded gasoline. The study found that the lead ban cost refiners about $3.6 bil- lion. Yet the quantifiable benefits added up to more than $50 billion, including nearly $42 billion in medi- cal costs avoided for both children and adults; $1.6 billion in pollution-related environmental damages averted; nearly $6 billion in lower vehicle mainte- nance costs; and more than $1.1 billion in improved fuel economy. Those figures do not include the non- quantifiable, really priceless value of saving more than 5,000 lives and preventing 8,000 heart attacks, strokes, and cases of high blood pressure in just one year. New environmental laws, such as the revised Clean Air Act, will do even more to reduce pollution-re- lated disease and damage to buildings, sculptures, monuments and bridges; to water bodies and recrea- tion areas; and to wildlife habitats and productive ecosystems. Similar gains have been made in curtailing water pollution. For example, $10 billion spent on munici- pal sewage treatment programs has succeeded in drastically reducing the volume of conventional pol- lutants in the Great Lakes. Nutrients are down, algae is down, fecal coliform bacteria are down, biological oxygen demand is down. Lake Erie was once the clas- sic horror story of the ravages of uncontrolled water pollution: Commercial fishing was all but decimated there as recently as twenty years ago. Now Lake Erie is the largest commercial fishery in the Great Lakes. But even as this progress has been made, new and more complex environmental challenges have emerged. Despite our success in curbing conven- tional pollution in the Great Lakes, for example, fish are accumulating toxins that make them inedible. PCBs and even DDT, which was banned in this coun- try in 1972, continue to show up in the lakes—presumably transported by air from applica- tions in Mexico or Central America, where DDT is still used. Pesticides, herbicides, and petroleum run off of farms and city streets into ditches and streams, eventually making their way into the lakes. Solid waste, another growing concern, illustrates the extent to which individual actions can accumulate to create widespread environmental problems. Ac- cording to EPA's most recent report on municipal solid waste, the amount generated in this country in- creased by 13 million tons between 1986 and 1988. The United States now generates more than 180 mil- lion tons of new solid waste annually—an average of four pounds a day for every American! This is a rec- ord level of per-capita waste generation for this coun- try; it is two times the per-capita level of West Ger- many, three times that of Italy. Despite two decades of unprecedented environ- mental investment, the creation of waste continues to accelerate. Many persistent or emerging environ- mental problems are caused by diffuse, widely scat- tered, difficult-to-control sources of pollution. These sources reflect patterns and practices of resource use and waste generation that at times seem almost out of control. They do not lend themselves readily to tradi- tional government regulation. Moreover, we are increasingly visited with the ad- verse effects of environmentally unsound develop- ment: the devastation of natural habitats, the disrup- tion of the ability of wildlife to migrate, the rapid extinction of plant and animal species. Internation- ally, we must deal with alarming new discoveries of urgent global environmental problems with localized impacts. Stratospheric ozone depletion, acid rain, the destruction of tropical rain forests, climate change, severe soil erosion— this daunting array of global challenges threatens to overshadow the environmen- tal gains already made and to destabilize the very nat- ural systems that sustain life on this planet. Why Pollution Prevention? If we want to continue making progress in environ- mental protection, we will need to move significantly beyond the programs already in place and the actions already taken. In my view, the most important ad- vance we can make is to shift from an emphasis on expensive end-of-pipe or top-of-stack pollution con- trol and cleanup to a dramatically more productive and less costly focus on preventing pollution in the first place. The environmental problems most effectively brought under control so far have been relatively ob- vious and straightforward—belching smokestacks, raw sewage and industrial effluent dumped directly into rivers and lakes, rusting drums of hazardous waste carelessly buried in or near human settle-ments. Our efforts have focused primarily on the correction of environmental problems—treating pollution, dis- posing of waste, mitigating the effects of environmen- tally unsound development. But the environmental challenges of the next ten years will be increasingly subtle, complex, and costly to resolve—and they will be less readily ameliorated with the kinds of correc- tive measures that have worked well in the past. There is also a compelling economic rationale for shifting our emphasis from cleanup to prevention. Preventing Pollution ------- Benjamin Franklin's homily, "an ounce of prevention is worth a pound of cure," is no less applicable to envi- ronmental protection than to medicine. Environmen- tal cleanup is expensive. EPA estimates that the cost of pollution control, just from commitments already in place, will grow in constant dollars from more than $100 billion a year today to about $155 billion in the year 2000—approximately 2.7 percent of GNP.1 The most rapid growth in environmental protection costs over the next decade will be in expenditures for cleaning up pollution on land—primarily from oper- ating and hazardous waste sites, both in the private sector and at federal facilities, and from leaking un- derground storage tanks. In light of these substantial and growing costs, it seems only prudent to ask if soci- ety's resources are being used in ways that will con- tribute most efficiently over the long haul to the health and well-being of our citizens and our environ- ment. And we will be unable to give a positive answer to that question as long as we continue to spend the bulk of our environmental resources on cleanup, while neglecting front-end investments in pollution prevention and environmental planning. Cost is only one shortcoming of the conventional approach to pollution control. An even more funda- mental problem is the fact that the end-of-pipe focus is reactive rather than preventive, and thus inher- ently incapable of correcting the root cause of most environmental degradation: waste. By concentrating on treating the symptoms of environmentally damag- ing human activities, we are in danger of constantly losing ground in the long-range struggle to protect and improve environmental quality. The continuing problem of toxic pollutants in the Great Lakes is an example of this phenomenon. As I noted earlier, large investments by the United States and Canada in municipal wastewater treatment plants have paid off in substantial reductions in conven- tional pollutants, such as fecal coliform, nutrients, and algae. But air deposition of toxic chemicals, as well as runoff from farms, urban surfaces, industrial sites, and mining operations, continues to contribute pollutants to the Great Lakes, which contaminate bottom sediments—and accumulate in fish and in such wildlife species as the bald eagle, damaging the latter's ability to reproduce. The lesson we are learn- ing is clear: When we focus on treating waste, rather than on preventing waste, new environmental problems tend to outstrip whatever progress we can make. This is not to say that EPA should or will abdicate its responsibilities for pollution control and mitiga- 1 These figures represent only the costs of pollution control, without taking into account any of the very substantial benefits from this investment. tion. In fact, EPA has redoubled its traditional regu- latory and enforcement efforts; in the last two years we have set records in nearly every enforcement cate- gory. In particular, EPA has dramatically increased the number of administrative and criminal enforce- ment actions. Yet while EPA is continuing to improve and enhance its enforcement programs, we will also work to develop and apply a variety of creative new strategies to meet today's complex environmental challenges. Decentralized Pollution Problems Even though EPA has made great strides in eliminat- ing large, obvious, and acute forms of pollution dur- ing a time of substantial economic expansion, troub- ling increments of more insidious and elusive pollution remain. Furthermore, the world now faces pollution problems that are different in kind and in scope. Some of the most intractable of these problems come from scattered, decentralized sources—pollu- tion that does not emerge from a smokestack or a pipe, but results instead from the activities of millions of citizens going about their daily lives. Emissions from the tailpipes of cars, the use and release of ozone-depleting chlorofluorocarbons, agricultural and urban runoff, indoor air pollution, the use and disposal of consumer products containing toxic sub- stances—all are examples of large, decentralized pol- lution problems generated by millions of small sources. Reducing these remaining increments of de- centralized pollution through traditional ex post facto control and cleanup programs would be extremely costly, if indeed such programs could even achieve the desired results. The distinctive nature of these problems suggests that they will be solved only by a different array of approaches than EPA has used in the past. Fortu- nately, there is a growing consensus that pollution prevention offers a good framework. Pollution preven- tion is a decentralized approach to a decentralized problem. Accordingly, EPA has embarked on a comprehen- sive effort to make pollution prevention a top priority on the nation's environmental agenda. We have es- tablished a hierarchy of various approaches for deal- ing with waste. In this hierarchy, the preferred ap- proach is source reduction—the minimization or outright elimination of waste generation. A strong preference for recycling is next in EPA's hierarchy; if waste cannot be prevented, at least we should recycle and reclaim as much as possible, thereby conserving Domestic Affairs ------- resources for the future. On the bottom rung of the hierarchy, to dispose of waste that cannot be pre- vented or recycled, come safe incineration and proper landfilling as last resorts. Pollution Prevention at Work Many of the initiatives that already have been taken, and that have produced substantial environmental benefits, could be classified as examples of pollution prevention: banning DDT, eliminating lead in gaso- line, phasing out most uses of asbestos, cutting down on the range of permissible uses of certain pesticides and herbicides. But even more impressive reductions in pollution can be achieved by putting pollution pre- vention to work in every sector of society. Within the industrial sector, pollution prevention means changes in products, materials, practices, and processes or increased efficiencies in existing processes. For instance, a new technique developed by the Department of Defense replaces solvents in paint removal. The new process, called "plastic me- dia blasting," uses tiny plastic pellets instead of sol- vents to strip paint. The Defense Department reports that this technique cuts the time it takes to strip an F- 4 fighter from 340 to 40 hours while reducing the amount of waste generated from 10,000 pounds of hazardous, wet solvent sludge to 320 pounds of dry paint chips. Emissions of pollutants into the air are virtually eliminated. As an additional bonus, this technique sharply cuts the cost of complying with a myriad of hazardous waste disposal regulations. Another example—a process change—shows how simple prevention-based solutions can dramatically reduce pollution. As reported by INFORM, an envi- ronmental research organization, Borden Chemical Company slashed releases of organic chemicals from its Freemont, California, plant by 93 percent after conducting a pollution prevention audit. One of the most significant reductions came when Borden sim- ply changed rinsing processes in an 11,000-gallon re- actor vessel. Borden replaced a single rinse, which re- sulted in a moderately concentrated wastewater, with a two-stage process. The first rinse uses about one hundred gallons of water and yields a concentrated residual, which is reused. The second rinse is ex- tremely dilute and easily handled by Borden's ex- isting treatment systems. The total amount of waste organics released to the environment has been drasti- cally reduced through this simple process change. Nor is pollution prevention just for Fortune 500 companies. The managers of a one-hour dry cleaner in Anchorage, Alaska, cut discharges to zero by changing filtering practices and recapturing fugitive air emissions. In each of these examples, companies actually reduced operating costs. And while that is not always the case, these success stories underscore an important point: The basis for pollution preven- tion is efficiency, both in process and in the use of raw materials. In the agricultural sector, pollution prevention en- tails the adoption of such farm practices as integrated pest management—which reduces the need for toxic pesticides by employing natural pest control wher- ever possible—and soil conservation and planting techniques that limit reliance on fertilizers and other agricultural chemicals. The Department of Agricul- ture recently studied pesticide applications on cotton in the lower Rio Grande Valley of Texas. Before the study, pesticides were applied between 15 and 18 times every growing cycle to control boll weevils. Simply by destroying leftover cotton stalks, which had been providing a winter home for the pests, farmers were able to cut pesticide applications to only four in the following year. In studies in the wheat belt, researchers found that by monitoring soil nitro- gen levels and applying nitrogen as needed, instead of on a predetermined schedule, farmers were able to reduce nitrogen use by 30 percent. Such practices as crop rotation and intercropping (mixing different crops together) are being tested in the Midwest to re- duce the need for pesticides and to increase yields without chemical fertilizers. In energy and transportation, prevention means re- ducing emissions through improved efficiency and conservation. Transportation and energy art: respon- sible for a sizable share of the environmental burden placed on the planet by human activities. The Na- tional Acid Precipitation Assessment Program, a dec- ade-long government study of the causes and effects of acid rain, estimated that half of the volatile- organic compounds released by man-made sources come from transportation. if the problems are substantial, so are the potential reductions. Using technology available today, the United States can drastically improve energy effi- ciency. Amory Lovins, director of the Rocky Moun- tain Institute in Snowmass, Colorado, estimates that the nation could save 44 percent of the energy used to drive electric motors by switching to high-efficiency models now on the market and by improving maintenance. Another source of significant potential savings is lighting, which accounts for about one-fifth of the electricity we use. If Americans were to switch to the most energy-efficient lighting available today, wher- ever they could do so profitably, the amount of en- ergy consumed by lighting would be cut roughly in half. This would represent a reduction in energy use Preventing Pollution ------- of about 250 billion kilowatt-hours a year—about 10 percent of our total annual consumption of electric- ity. Switching to energy-efficient lighting would save electricity users more than $16 billion a year. The en- vironmental benefits would be equally impressive. Carbon dioxide and nitrogen oxide emissions would decrease by more than three percent, and sulfur diox- ide emissions would drop more than six percent. EPA has developed an energy conservation pro- gram called Green Lights, in which corporations have agreed to replace their existing lighting with en- ergy-efficient lights and lighting designs wherever they can do so profitably. Charter members of the Green Lights program include Gillette, Maytag, Johnson & Johnson, Polaroid, Gerber, Bell Atlantic, Citicorp/Citibank, Phillips Petroleum, General Dy- namics, Digital Equipment Corporation, and Brown- ing-Ferris. More companies are signing on every week. Green Lights is a "win-win" program in the classic sense. Companies save electricity, workers get better lighting, citizens breathe cleaner air, the na- tion reduces its reliance on foreign oil, and the econ- omy becomes more competitive. This program is pol- lution prevention at its best. And Green Lights is only one manifestation of our genuine desire to work with industry—to be support- ive of those firms that display the intention to work on their own for pollution prevention. Another is a cooperative EPA-industry effort to secure dramatic reductions in emissions of toxic pollutants. In the summer of 1989, I invited the heads of nine well- known petrochemical manufacturers, whose firms operated 40 facilities presenting high risks because of their emissions of toxic air pollutants, to a meeting at EPA. Everyone in the room knew we could wait for Congress to enact a stricter Clean Air Act, let a few years pass as regulations were proposed, debated, and litigated, and then wait a few more years after that for emissions reductions to take place. But we took a different tack: I asked the leaders of the nine companies to prepare plans to reduce the risks posed by their plants sooner rather than later. In response, they developed programs to cut emissions of their most egregious toxic pollutants by as much as 90 percent. Ultimately, the corporate leaders entered into written agreements with EPA, and the emissions already are beginning to drop. By 1993, reductions of more than 80 percent will be achieved, and more than nine million pounds a year of toxic releases will have been eliminated from the environment. Through these voluntary agreements, with their ambitious environmental goals, we have achieved sig- nificant environmental advances quickly, with a mini- mum of bureaucratic intervention, burden on indus- try, and taxpayer expense. Domestic Affairs Commitments Beyond Compliance Now, EPA is ready for the next step. In a Pollution Prevention Strategy announced in February, we targeted 17 high-priority toxic pollutants for reduc- tion. These are high-volume industrial chemicals, some highly toxic, that are associated with a variety of environmental ills. Benzene, for example, is a known carcinogen and also contributes to ozone pollution; lead is a notorious toxin that is a major health risk to pur children. These pollutants are all controlled by existing regulations, yet their releases from more than 10,000 industrial plants still total more than a billion pounds a year. I have set goals of reducing aggregate environmen- tal releases and off-site shipments of these pollutants one third nationwide by the end of 1992, as measured against a baseline of emissions reported to EPA in 1988, and at least one half by the end of 1995.1 have created an Industrial Toxics Project—a team of EPA specialists who will work with interested companies to achieve the goals. The project will focus on bringing about reductions through pollution preven- tion—actions that eliminate wastes at their sources. (Companies will, however, be encouraged to partici- pate even if some part of their reductions are achieved through more traditional recycling or con- trol methods.) In the end, companies need to find the ways to achieve reductions that work best for them. As the recent experiences of the companies cited above show, an ounce of prevention can achieve dramatic environmental benefits while actually saving money and improving productive efficiency. I have written to more than 600 CEOs asking them to begin consid- ering their responses to the Industrial Toxics Project; more companies will be contacted in the coming months. EPA officials are meeting with industry lead- ers to discuss reduction commitments. In those meet- ings, EPA representatives emphasize the voluntary nature of the Industrial Toxics Project, but they also stress the substantial benefits of pollution preven- tion—including enhanced community relations, em- ployee pride and satisfaction, and savings from re- duced material loss and waste management expenses. We are emphasizing as well the nation's simple and profound desire for a cleaner environment. We are asking companies to consider a range of vol- untary commitments. Some may pledge to do what they can and leave the specifics to be worked out be- tween now and 1995. Others may feel comfortable embracing more explicit goals—setting timetables and targeting specific chemkals and facilities for re- ductions. Still others may elect to expand their com- mitments, exceeding EPA's goal of a 50 percent re- ------- duction by 1995, targeting more than the 17 priority chemicals, or even carrying out reductions at all facil- ities here and abroad, regardless of the environmen- tal frameworks under which they operate. Some com- panies are, in fact, already way ahead of us. Monsanto, General Dynamics, Polaroid, and AT&T have all made public commitments to reduce toxic chemical releases by more than 50 percent. And, of course, other firms may well decide, for whatever reasons, that the Industrial Toxics Project is not for them. That will be their choice to make—EPA will in no way penalize companies that choose not to participate. Although EPA is taking a strong leadership role in this effort, we expect that others—state and local governments, supported by environmental groups and community organizations— will want to negoti- ate their own agreements with businesses. We are preparing to devote technical know-how and person- nel to assisting in these efforts and to identifying whether our existing regulatory programs might cre- ate unintended disincentives to early toxics reductions. As the nation's environmental protection efforts mature, more managers are finding that the elimina- tion of wastes goes hand in hand with an emphasis on Total Quality Management—a philosophy of contin- uous improvement—to make industrial operations more efficient and more profitable. A commitment to continuous improvement can succeed in the reduc- tion of chemical waste just as it has in the pursuit of quality and customer satisfaction. Some corporate ex- ecutives have even said that their ultimate pollution prevention goal is zero discharge of toxics—a notion that, just a few years ago, would have invited derision from serious observers of business. In the end, zero discharges may not be possible—but what an energiz- ing standard to hold aloft! A very informative article in the New York Times quoted an executive from a firm that has pioneered in the field of pollution preven- tion, 3M, as explaining, "If we get rid of the pollu- tion, we get out from under the regulations." For 3M, this is one more reason, besides profitability, to pursue pollution prevention. For firms that are not so enthusiastic, my proposed goals will pose a fundamental question: Does it make sense to wait until the last minute to comply with the deadlines set by the Clean Air Act and other statutes? Or can these companies do more, both to improve the environment and to enhance their corporate bot- tom line, by taking early actions that reduce contami- nants at the source—avoiding, perhaps, the need for expensive end-of-pipe treatment later on? The Clean Air Act helps to answer this question by providing a six-year exemption from compliance with maximum achievable technology standards for those companies that attain 90 to 95 percent reductions in toxic air emissions through enforceable agreements before specified dates. Since all of the contaminants targeted in EPA's Industrial Toxics Project are also subject to the new Clean Air Act standards, this incentive will play an important role in helping to achieve our ob- jective of 50 percent reductions by 1995. At the same time, I recognize that not every company has opera- tions or resources that lend themselves to going be- yond existing legal requirements. That is why this new program is strictly a voluntary effort. We at EPA also have something important to learn from this venture in obtaining commitments beyond compliance. The nation's environmental lav/s, and the great successes achieved over the past twenty years, have depended on command-and-control ap- proaches to regulation. It is becoming increasingly clear that in a number of areas these approaches have taken us about as far as they efficiently can. Further reductions in pollution are frequently limited in scope and very expensive to achieve. But incentives that work with rather than against the market, and policies that afford industry greater discretion to choose the means to achieve ends determined by gov- ernment, can help us to make further progress in the most cost-effective fashion. Government, as much as industry, needs to experiment with new ways of doing business, even as we continue to enforce the laws vig- orously and consistently. If our efforts in the Indus- trial Toxics Project are successful, we will have powerfully advanced the reconciliation of the na- tion's environmental goals with its economic aspira- tions, to the benefit of both. General George Patton once wrote, "Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity." The Pol- lution Prevention Strategy takes that advice to heart. In the future as in the past, EPA will not shy away from setting societal goals and regulatory standards. But increasingly, we will defer to businesses regard- ing choices of means and technologies. These are business decisions, and as long as they are made with due regard for the needs and constraints of the envi- ronment, they should be made by business executives. Setting Risk-Based Priorities Pollution prevention is not the only EPA initiative that reflects the wisdom of planning for environmen- tal protection at the front end. Another major thrust in the Agency's environmental agenda for the 1990s Preventing Pollution ------- is a complementary effort to evaluate the relative risks of environmental problems, so that we can focus our efforts—and help to focus those by industry, con- servation groups, and others—on those activities, preventive and otherwise, that are likely to do the most to reduce risks to human health and the environment. Recognizing the need for EPA to do a better job of setting priorities across the range of its programs, my predecessor, Lee Thomas, instructed EPA's in-house scientists and environmental managers to rank envi- ronmental problems on the basis of the risks associ- ated with them. The result of this exercise was Unfin- ished Business: a Comparative Assessment of Environmental Problems, a provocative and pioneering report published in 1987. When I took office in 1989 I asked EPA's Science Advisory Board—an independent panel of outside scientists, engineers, and other technical experts—to review the rankings in the Unfinished Business report, drawing on the best technical and scientific knowl- edge available. I also asked the group to suggest ways to improve risk assessment and to identify risk reduc- tion strategies that could be particularly effective. The Board's report, Reducing Risk: Setting Priorities and Strategies for Environmental Protection, was re- leased in September. It is a thoughtful and significant contribution to the debate over the future of environ- mental protection in this country. The new report builds on the Unfinished Business project by spelling out a set of fundamental principles for achieving broader, more integrated, and more carefully targeted environmental policy-making. Among its key recommendations: • "EPA should target its environmental protection efforts on the basis of opportunities for the great- est risk reduction." • "EPA should attach as much importance to reduc- ing ecological risk as it does to reducing human health risk." « "EPA should reflect risk-based priorities in its stra- tegic planning and budget processes." • "EPA—and the nation as a whole—should make greater use of all the tools available to reduce risk. . .[with] pollution prevention as the pre- ferred option." Taken together, these principles provide a basic framework for addressing some of the most pressing environmental problems of the 1990s and beyond. The Science Advisory Board identified four such problems that, based primarily on the degree of di- rect public exposure to known toxic agents, continue to pose relatively high risks to human health despite the progress of the last two decades: Domestic Affairs • ambient air pollution; • worker exposure to chemicals in industry and agriculture; • indoor air pollution, including radon and environ- mental tobacco smoke; and • drinking water contamination. The Board pointed out that additional data, which EPA is now working to gather and analyze, may re- veal that other problems, such as pesticide residues in food and toxic chemicals in consumer products, may pose human health concerns as well. The Board also identified four problems that, ow- ing to their geographic scope and the amount of time it will take to reverse them, present relatively high risks to the environment and thus to human welfare: • habitat alteration and destruction; • species extinction and loss of genetic diversity; • stratospheric ozone depletion; and • global climate change. Let me be clear: The Science Advisory Board did not suggest, nor do I, that conventional approaches to environmental problems not cited as high risks, such as the cleanup of hazardous wastes, should be abandoned. EPA is firmly comm'itted to continued and intensified enforcement of the environmental laws already on the books, as evidenced by the rec- ord-setting enforcement actions in 1989 and 1990. But, guided by the best information we can find on the relative risks of various environmental problems, we are thinking carefully about where our limited dis- cretionary resources can most effectively be spent. Actually carrying out the Science Advisory Board's recommendations will not be easy. Any effort to set environmental priorities based on relative risk—to rethink the environmental agenda for the 1990s and the 21st century—will be arduous and contentious. Just look at what almost invariably happens even now when EPA announces a regulatory decision. Some scientists, environmentalists, and citizens who understand risk point to the uncertainties inherent in risk-based decision-making and charge that our ap- proach is not sufficiently protective, or that it under- estimates the environmental and health problems that will result from not taking stronger action. At the same time, others in academia or business or the agricultural community assert that the assumptions used in our risk models, which are purposely designed to err on the side of safety in order to ensure public health protection, are too protective—that they undervalue the economic and other benefits of pesticides and other chemicals. Reactions are so disparate because decisions about environmental risks are complex and require a great ------- deal of information—about the health and ecological effects of pollutants, about their presence and persis- tence in the environment, and about the extent to which human beings and natural systems are exposed to them. Given this complexity, government regula- tors, who must live in the interval between the discov- ery of a problem and its solution (typically before the science is adequately established) have to get used to the fact that disputes and disagreements go with the territory. But disagreements can co-exist with trust. To build and maintain the public's trust in EPA, we need to improve the public's understanding of how we make regulatory decisions. While we must and will listen carefully and respond to the public's concerns, we have to make it clear that we also must and will continue to rely on a rational, science-centered pro- cess to guide risk-management decisions. And we need to assure the public that decisions will be based on the best available science and that when we do not have all the data that we would like to have, we will take a cautious, protective approach unless and until new information supports a finding of lesser risk. The public should also know that we are constantly updating our risk assessment guidelines as scientific knowledge advances. We are insisting that these as- sessments be subjected to rigorous internal and exter- nal peer review. And we are looking for ways to achieve greater consistency in our use of risk assess- ments across the range of EPA decision-making. The threats to the environment are sufficiently se- rious—and time is growing sufficiently short—that we cannot afford to go without a long-range plan for environmental protection. The nation needs a better understanding of the sources of environmental risk; it needs the best available scientific evidence of which health and environmental risks may be most signifi- cant; and it needs a comprehensive strategy to reduce those risks, both with traditional regulation and en- forcement and with non-traditional tools—public in- formation and education, aggressive research and technology development, international cooperation, and economic incentives that enlist the power of the marketplace on behalf of environmental protection. The new Clean Air Act is a giant advance in the grounding of environmental protection in economic incentives. The centerpiece of the legislation is an in- novative system of tradeable emissions allowances for sulfur dioxide that will enable the nation to achieve significant improvements in air quality at compliance costs some $ 1 billion lower than would otherwise be incurred. The Act also introduces a range of other market-based mechanisms, including incentives, noted above, for companies to act quickly to reduce toxic emissions and to go beyond minimum require- ments; commercially tradeable credits for producers of certain kinds of reformulated fuels, for manufac- turers of clean-fuel vehicles, and for vehicle fleets subject to clean-fuel requirements; and performance targets for reformulated fuels that allow industry to reduce emissions in the most cost-effective possible way. EPA's "Quiet Revolution" Far from being the inflexible bureaucracy depicted by some of its critics, EPA is now undergoing a funda- mental cultural change—what Science magazine called a "quiet revolution"—in which pollution pre- vention and risk reduction are being woven into the fabric of virtually every regulatory decision and pol- icy directive. Front-end environmentalism increasingly is becoming the guiding principle underlying all of EPA's activities. More than 200 years ago, Thomas Jefferson made an observation that is relevant to the challenge of refocusing environmental priorities today. In a letter to a friend, Jefferson wrote that while he was not an advocate for frequent changes in laws and institu- tions, he nonetheless believed that institutions should make progress hand-in-hand with the progress of the human mind: With the change of circumstances, institutions must also advance to keep pace with the times. We might as well require a man to wear still the coat which fitted him as a boy, as civilized society to re- main ever under the regimen of their barbarous ancestors. EPA's challenge—the nation's challenge—for the 1990s is to confront and breach the institutional bar- riers that previously have impeded the development of pollution-prevention and risk-reduction strategies. Internally, the most difficult barrier is EPA's histori- cally compartmentalized organization. Reflecting the structure of the laws it must implement, EPA is set up to deal with pollution of the air, water, and land as if these were separate and distinct entities, rather than parts of an integrated, interrelated whole. We are working to overcome these organizational obstacles through education and training, through enhanced accountability and coordination within EPA, and through Total Quality Management. Equally important, we need to break down the traditional special-interest barriers that have balkan- ized government and society as a whole. As the Reduc- ing Risk report noted, solving the nation's continuing environmental problems is not something EPA can do by itself; all parts of government and all sectors of society must participate. The quality of the environ- Preventing Pollution ------- ment is directly affected by energy extraction and use, by agriculture, by transportation, by our rela- tions with other nations, by our trade policies and tax policies. Across all of its activities, government must pay much more attention to environmental consider- ations at the outset of policy-making. This is not to suggest that EPA should be getting into every other agency's business. Rather, I am sug- gesting that all the other agencies start getting into our business—the business of protecting the environment. And just as EPA cannot do it all, neither can gov- ernment. Effective national responses to many of our environmental problems will be mounted only through countless individual acts of stewardship; only through the constant adaptations of millions of local neighborhood and community programs and thousands of companies to new information; and in the end, only through the inspired leadership and continuous learning of every individual citizen. Ulti- mately, every American must feel empowered to act on behalf of the environment. Front-end environmentalism is essential to ensure continued progress in environmental protection. Our ultimate goals are the reduction of environmental risks to human health and to the integrit) of natural systems—and the reduction (and wherever possible, elimination) of waste. Changing the nation's way of thinking, and ultimately the way we live, will take time and effort, but it can—and must—be done. In meeting the environmental challenges of the 1990s, the most significant new progress we need is with ourselves—with our lifestyles, our energy use, the goods we buy and use, and the waste we generate. The extent to which we are able as a society to recon- cile human activities, especially our economic activi- ties, with the needs and constraints of nature will de- termine just how habitable and productive our nation—and indeed this earth that sustains us ail—vvill remain, for this generation and the genera- tions to come. For Further Information Office Of Communications And Public Affairs (A-107) United States Environmental Protection Agency Washington DC 20460 (202) 260-4454 Domestic Affairs ------- |