United States        Science Advisory      EPA SAB-EC-90-021C
6041          Environmental Protection    Board          September 1990
            The Report Of
            The Strategic Options
            Subcommittee

            Relative Risk
            Reduction Project

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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 a balanced expert assessment of
scientific matters related to problems facing the Agency; hence
•the contents of this report do not necessarily represent the view
and policies of the Environmental Protection Agency or of other
Federal agencies.  Mention of trade names or commercial products
does not constitute a recommendation for use.

     This particular project was conducted at the request of the
EPA Administrator and addresses a broader range of issues and
concerns than most SAB reports.  Consequently, many of the
findings and recommendations in this report have a greater
policy-orientation than is usually the case.

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                          ABSTRACT
     The Strategic Options Subcommittee of the Relative Risk
Reduction Strategies Committee identified strategy options for
reducing risks from a sample of 13 environmental problems.  In
addition, the Subcommittee developed eight broad recommendations
for environmental risk reduction:
 1) EPA should establish priorities based on the potential for
     risk reduction.
 2) Pollution prevention should be the most important approach
     for reducing environmental risks over the long term.
 3) In order to reduce risk and prevent pollution in a
     significant way, EPA must substantially broaden its kit of
     environmental protection tools, especially to emphasize
     economic incentives and information transfer.
 4) Environmental protection must be integrated into other policy
     areas, in as fundamental a manner as are economic concerns.
 5) In order to integrate environmental policy into other
     policies, a special governmental mechanism should be created
     in the Executive Branch.
 6) EPA should continue to perform analyses similar to the
     present Relative Risk Reduction Strategies Project and
     integrate the results into the Agency's strategic planning
     process.
 7) EPA's annual budget should more directly reflect risk-based
     priorities.
 8) The Agency should develop an enhanced environmental education
     and training program for both professionals and the general
     public.

Key words;  Risk reduction; pollution prevention; risk assessment
                                ii

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              U. S. ENVIRONMENTAL PROTECTION AGENCY
                      SCIENCE ADVISORY BOARD
           RELATIVE RISK REDUCTION  STRATEGIES  COMMITTEE

                  Strategic Options Subcommittee
Chairman

Mr. Alvin Aim, Science Applications International Corporation,
     McLean, Virginia

Members

Dr. Betsy Ancker-Johnson, General Motors Corporation, Warren,
     Michigan

Dr. Richard Andrews, Institute for Environmental Studies,
      University of North Carolina, Chapel Hill, North Carolina

Mr. Richard Conway, Union Carbide Corporation, South Charleston,
     West Virginia

Dr. Anthony Cortese, Tufts University, Medford, Massachusetts

Dr. Roger Kasperson, Graduate School of Geography, Clark
     University, Worcester, Massachusetts

Dr. Henry Kelly, U.S. Congressional Office of Technology
     Assessment, Washington, D.C.

Dr. Paul Portney, Resources for the Future, Washington, D.C.

Dr. William Ryan, National Environmental Law Center, Boston,
     Massachusetts

Ms. Nancy Seidman, Northeast States for Coordinated Air Use
     Management, Boston, Massaschusetts

Dr. Robert Stavins, John F. Kennedy School of Government, Harvard
     University, Cambridge, Massachusetts

Ms. Marcia Williams, Browning-Ferris Industries, Washington, D.C.

Staff

Mr. Frederick W. Allen, Science Advisory Board  (on loan),
     USEPA, Washington, D.C.

Mrs. Kathleen Conway, Designated Federal Official, Science
     Advisory Board, USEPA, Washington, D.C.


                               iii

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Dr. C. Richard Cothern, Designated Federal Official, Science
     Advisory Board, USEPA, Washington, D.C.

Ms. Darlene Sewell, Staff Secretary, Science Advisory Board,
     USEPA, Washington, D.C.

Consultants

Ms. Patricia Kotman, Eastern Research Group, Arlington,
     Massachusetts

Mr. Stuart Sessions, Sobotka and Co., Washington, D.C.
                                IV

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                        TABLE OF CONTENTS
1.0  EXECUTIVE SUMMARY 	  1

     1.1  The Problem	1
     1.2  The Subcommittee	1
     1.3  Framework and Methodology  	  2
     1.4  Conclusions and Recommendations  	  3
     1.5  Additional Perspectives on Reducing Environmental
          Risks	8

2.0  INTRODUCTION	10

     2.1  Progress and Problems	10
     2.2  Challenges	12
          2.2.1  Increasing Importance of Diverse
                       Sources of Pollution	12
          2.2.2  Ineffectiveness of Traditional
                       Approaches in Addressing Residual
                       and Emerging Environmental Problems .  . 13
          2.2.3  Environmental Risks and EPA's
                       Priorities	13
          2.2.4  Piecemeal Approaches to
                       Environmental Problems  	 14
          2.2.5  Increasing Costs of Environmental
                       Regulation	14
          2.2.6  Pressures of Population Growth and
                       Economic Development  	 15
          2.2.7  Increasing Time Required for Reversing
                       Environmental Problems  	 15
     2.3  Contents of This Report	16

3.0  METHODOLOGY	17

     3.l  Subcommittee Charge and General Approach   	 17
     3.2  Selecting Environmental Problems For Study 	 19
     3.3  Developing a List of Potential Risk Reduction
          Options For Each Problem	20
     3.4  Selecting Most Promising Options For
          Each Problem	21
     3.5  Developing Cross-Cutting Strategies and
          Recommendations  	 22
     3.6  Commentary	23

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4.0  CONCLUSIONS AND RECOMMENDATIONS 	 25

     4.1  Introduction	25
     4.2  Risk Reduction	27
     4.3  Pollution Prevention 	 28
     4.4  A Broader Kit of Tools	32
          4.4.1  Scientific and Technical Measures 	 34
          4.4.2  Provision of Information	36
          4.4.3  Market Incentives 	 37
          4.4.4  Conventional Regulations  	 41
          4.4.5  Enforcement	42
          4.4.6  Cooperation with Other Agencies and
                 Nations	43
     4.5  Integrating Environmental Protection With Other
          Policy Areas	44
          4.5.1  Energy Policy	45
          4.5.2  Agriculture Policy  	 47
          4.5.3  Tax Policy	50
          4.5.4  Transportation,  Housing and Commercial
                      Development Policies 	 51
          4.5.5  Natural Resource Policy 	 53
          4.5.6  Foreign Policy	55
     4.6  Federal Environmental Policymaking 	 56
     4.7  Risk-Based Strategic Planning  	 57
     4.8  Risk-Based Budgeting 	 59
     4.9  Education and Training	60
     4.10 Conclusion	63
APPENDICES

A.   Optional Strategies For the 13 Specific Environmental
     Problems	65

     A.I   Criteria Air Pollutants	66
     A. 2   Toxic Air Pollutants	70
     A. 3   Radon	72
     A.4   Indoor Air Pollution	74
     A.5   Stratospheric Ozone Depletion	76
     A.6   Carbon Dioxide and Global Warming 	 78
     A.7   Non-Point Source Discharges to Surface Water  ... 81
     A. 8   Wetlands	84
     A.9   Estuaries, Coastal Waters and Oceans	88
     A. 10  Habitat Alteration	91
     A. 11  Hazardous Waste	94
     A.12  Municipal Solid Waste 	 97
     A. 13  Pesticides	101

     AA.l  STRATEGY OPTIONS SORTED BY ENVIRONMENTAL PROBLEMS..104
     AA.2  STRATEGY OPTIONS SORTED ACCORDING TO TOOLS  ...  109
     AA.3  STRATEGY OPTIONS SORTED ACCORDING TO POLICIES .  .  116

                                vi

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B.   PERSPECTIVES ON REDUCING ENVIRONMENTAL RISKS  	  12C

     B.I  Alternative Points of Intervention to Reduce
          Risks	120
     B.2  Pollution Prevention As a Key Theme in
          Risk Reduction	122
     B.3  The Desirability of Strategies That Address
          Multiple Problems  	  126
     B.4  Additional Comparisons of Environmental
          Problems: EPA and Social Spending On
          Them, and Public Opinion About Them	126
     B.5  Geographic Diversity and the Need for Local
          Flexibility in Risk Reduction Strategies 	  128
     B.6  The Role of Uncertainty in Implementing Risk
          Reduction Strategies 	  132
     B.7  Programmatic Disconnects, Particularly in the
          Industrial Sector  	  132
     B.8  Regulatory Complexity May Be Counter-Productive  .  133

C.  Categories and Evaluation of Strategy Options  	  134

     C.I  Description of the Strategy Categories 	  134
     C.2  Description of Rating Criteria for Strategy
          Options	139
     C.3  Evaluation Matrix  	  140
                               vn

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                         LIST OF FIGURES

B.I  The Hazard Chain Model	121
B.2  Public Ranking of Environmental Problems 	 129
B.3  Comparing Risks to Other Factors 	 130
                               viii

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                      1.0   EXECUTIVE  SUMMARY

1.1  The Problem

     Beginning with  the enactment of the  National Environmental
Policy  Act  of  1970  and  continuing with  the  founding of  the
Environmental Protection Agency in the same year,  the United States
launched  an unprecedented  effort to  address environmental  and
health problems caused by human activities.  Many  laws and programs
have  been  enacted  and  implemented since  then,  resulting  in
important improvements in environmental quality.

     Unfortunately, we still face daunting environmental problems.
Stubborn  portions  of older problems have  resisted our control
efforts and newly identified problems  appear increasingly difficult
to  solve.    Economic growth, increasing  population,   the  global
nature of some problems, the diversity of sources  of contamination,
the time  and resources  required  to  reverse many problems,  and
difficulties  with  the  approach,  structure and  priorities  of
existing  programs  all make  the  job  of environmental  protection
harder.

1.2  The Subcommittee

     Recognizing that the  nature  of the environmental  problems
facing the  U.S. and  the world is changing,  the  Administrator of
EPA asked the EPA Science Advisory Board  (SAB) to undertake  a
project to  advise him broadly on  new directions  for reduction of
environmental risks.   To undertake this project,  the SAB set up a
special   committee,   the   Relative  Risk   Reduction   Strategies
Committee, which in turn set up three subcommittees.   This report
summarizes  the  work  and  conclusions  of  the Strategic Options
Subcommittee, which was assigned to  identify and analyze a range
of the  most promising types of  risk reduction  options  that  EPA
should consider, and to  provide a procedure for continuing work by
EPA along these lines.

     The  twelve members   of  the  Subcommittee  had  a   range  of
technical expertise and viewpoints.  In developing promising risk
reduction  options  and  thematic  recommendations  for  EPA,  the
Subcommittee  primarily  considered  factors  such  as  cost,  risk

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reduction,   technological    feasibility,    and   implementation
requirements associated with each option.

1.3  Framework and Methodology

     The Subcommittee developed and analyzed risk reduction options
in four steps:

     1.   Selecting environmental problems for study.   The
          Subcommittee  selected  13  environmental  problems  for
          analysis — generally those posing  the  greatest risks.
          The Subcommittee thus  considered  only  a portion of EPA's
          programmatic  domain.    However, the  13  problems  are
          sufficiently rich and  diverse to suggest patterns likely
          to emerge in a broader analysis.

     2.   Developing an extensive list of potential risk
          reduction strategies for each problem.  The Subcommittee
          developed potential strategies  for each problem.  To aid
          in the identification  of these options, the Subcommittee
          outlined a series of six general approaches:  scientific
          research  and  technical   innovation,   provision   of
          information,        market   incentives,    conventional
          regulations,  enforcement measures,  and cooperation with
          other agencies and nations.  Three assumptions were made
          in generating strategies:   (1)  existing risk reduction
          measures  already   in  place  would  remain   so;   (2)
          strategies outside of existing legislative mandates could
          be considered;  (3)  strategies  would not be  limited to
          those within  EPA's scope  of  responsibility,  although
          EPA's role should be emphasized.

     3.   Selecting the most  promising options  for each problem.
          The Subcommittee developed  evaluation criteria which it
          used  to  help  select  preferred strategies  for  each
          problem.  Strategies for the different  problem areas were
          not  ranked  against each other.    Subcommittee  members
          wrote  short  papers  on  each  environmental  problem,
          addressing the  risks  posed by the  problem,  the policy
          background,  and the  strategy  options.   These papers
          constitute Appendix A to this report.

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     4.   Developing   cross-cutting    strategy   options    anj
          recommendations.   Many of the strategy options selectee
          for  one problem  were  similar  or even  identical  to
          strategies for another problem.  In its final choice of
          options, the Subcommittee preferred options that would
          realize benefits across several problem areas.

     The Subcommittee believes that a methodology like  the one used
in this effort has potential to assist EPA in identifying preferred
risk reduction options.  Any such  process  must  be systematic and
comprehensive,  and  force Agency personnel to  take  a  broad  and
innovative perspective.

     The Subcommittee  also  examined the generic  approaches that
frequently appeared to have promise among the individual strategy
options for the problem areas.   This investigation prompted several
of  the  Subcommittee's  broad  recommendations   regarding  EPA's
approach to  risk reduction —  supporting  greater use  of  market
incentives and information strategies,  for example.

     The strategy  options  for  individual  environmental problems
should  not be  construed  as  recommendations,  and they  do  not
represent  the  primary  product  of  the  Subcommittee's work.   The
strategy   options   represent   reasonable   approaches  to   each
environmental problem,  but they have  not  been analyzed  in  any
formal way sufficient to warrant asserting that  they are the best
approaches to each problem.  Nor is the  list of strategy options
necessarily comprehensive;  most likely there are  other strategy
options  that  would   also  offer   effective responses  to  the
environmental problems we have examined.
1.4  Conclusions

     The  Subcommittee's  analysis  of strategies  to address  its
sample of 13 key environmental problems suggests that fundamental
changes  are necessary  achieve significant  further progress  in
environmental protection.  To this end,  the Subcommittee made eight
recommendations:

1.   EPA  should  establish  priorities based on  tha  potential  for
     risk reduction.

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     Over the past 20 years U.S. environmental policy has developed
in a piecemeal,  ad hoc fashion.  Laws have been passed at different
times and little attempt was made to coordinate them.  Nor was any
attempt  made to  compare the  relative  seriousness of  different
environmental  problems   in  order  to make  judgments  about  the
relative urgency  of different environmental protection  efforts.
But experience has  taught us  that not all environmental  problems
are equally  serious and not  all protection efforts  are equally
urgent.  We must set environmental priorities.

     These priorities should be based on an explicit comparison of
the relative risk posed by different environmental problems, and,
more specifically,  on  the opportunities  for cost-effective risk
reduction.   The recommendations  that follow  in  this  report spell
out more specific measures  that EPA, Congress and others  should
take to make this principle a reality.
2.   Pollution prevention  should be the most  important approach
     for reducing environmental risks over the long term.

     The  recommendation that  EPA  should  place  a much greater
emphasis on pollution prevention  as the  preferred way to address
environmental risks is  not new.   Pollution prevention represents
a way  of  thinking about alleviating environmental  risks that is
fundamentally different from the  pollution control approach long
practiced  in  this country.    Pollution  prevention  emphasizes
avoiding  the  creation  of  risks  from  pollution or from natural
resource  depletion by  changing  raw  materials,  technologies  of
production and products,  as opposed to  attempting  to control or
mitigate what has already been created.  Pollution prevention can
also  include  changing activities  and  the  location   of  those
activities so as not to harm sensitive  ecosystems.   In a  number of
instances pollution prevention can be the most cost-effective way
or even  the  only way  to  reduce environmental  risks.    Pollution
prevention  is  also  the  key  to  sustainable  development  and
protection of natural  resources  for future generations  (examples
are banning  lead in  gasoline  or  substituting  for CFCs).   This
approach  is  applicable to a broad array of problems and can be
implemented through a variety of policy tools.

     No list of recommendations can cover the myriad of  ways that
pollution prevention can be stimulated  by public policy.   In order

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to £>e successful,  the responsibility for pollution prevention must
be  accepted  by  all parts  of  EPA,  the  rest of  the  Federal
government, the States, the private sector and individual citizens.
3.   In order  to reduce risk and  prevent pollution in a
     significant way/ EPA must  substantially broaden its
     kit of  environmental  protection tools/  especially  to
     emphasize economic incentives and information transfer.

     It is very clear to the Subcommittee that the most promising
strategies for risk reduction encompass  a wide variety of policy
approaches.   The Subcommittee  identified six  policy  approaches
which EPA  and  other Federal agencies could  employ  to  change the
behavior of  individuals,  corporations and other  institutions to
reduce risk: 1)  scientific  research  and  technical innovation; 2)
provision  of  information;  3)  market  incentives;  4)  conventional
regulatory standards; 5) enhanced enforcement; and 6) cooperation
with other agencies and nations.  Oftentimes these approaches can
or need to be  combined.   For  instance, marketable permit systems
can be combined with regulatory ceilings on emissions or discharges
to assure that certain minimum reductions are realized.

     EPA needs to'overcome its bias against new approaches.  Today,
when new approaches are examined, they tend to be held to a higher
level of  performance than  existing  approaches.   There  are long
lists of known  implementation problems with existing approaches but
the status quo  continues partly because thorough evaluations of the
effectiveness  and  cost of  existing  programs are  not routinely
performed.   EPA  needs to allocate resources to non-conventional
approaches  and   to  give  these   types  of  measures   serious
consideration in agency decision making.   In this connection, EPA
might look closely  at the  strategy options discussed  in  this
report.

4.   Environmental protection must be integrated  into  other
     policy  areas/  in as  fundamental a  manner as  are  economic
     concerns.

     Many  types  of  government policies  significantly  affect the
environmental problems that EPA needs to  address.   These policy

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areas include, but are not limited to: 1) energy, 2) agriculture,
3) tax, 4ptransportation and  housing,  5)  natural resources, and
6) foreign policy.   For example,  many air pollutants  and other
environmental  problems  (e.g.   oil  spills)  arise  from  energy
production and use.  Likewise,  agricultural practices create much
of  our remaining  water pollution problems,  as  well  as  other
problems  from   pesticide   and  fertilizer  use.     Energy  and
agriculture,  as  well  as  other  areas of  activity,  are subject to
many government incentive and control programs.

     It is critical that  a framework be established to assure that
environmental objectives are part  of  other major Federal  program
objectives.   For example, agricultural policy should be aimed not
only at producing food and  fiber,  but also at  reducing land run-
off and pesticide use.  Energy policy should be aimed not only at
producing energy reliably  and cheaply,  but  also  at minimizing
environmental damage  from extraction,  transportation, production
and combustion.   Environmental  quality objectives need to be built
into major government legislation,  policies and programs.
5.   In order to  integrate  environmental  policy into other
     policies, a special governmental mechanism should be
     created in the Executive Branch.

     The broad environmental strategies discussed above for energy,
agriculture,  tax,  transportation, natural  resource and  foreign
policy  areas  require  an  institutional  mechanism  within  the
Executive Branch.  There are several means by which this might be
done: the Council on  Environmental Quality  could  be expanded and
given  clearer  policy  development   responsibilities,  a  Cabinet
Council  on  the Environment  could be  reconstituted and given  a
staff, or a new entity could be established.  Another option would
be to create a new Environmental Policy Council  (EPC), which might
be chaired  and staffed  by  the Chairman  of CEQ  or it could be
jointly  chaired by  the Administrator  of  EPA  (or Secretary of
Environment) and the Chairman of CEQ.

6.   EPA should continue to perform  analyses similar to the
     present Relative Risk Reduction Strategies Project
     and integrate the  results into  the Agency's
     strategic planning process.

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     The Agency needs to  conduct  the  type of exercise undertaken
in this project and make it a part of its regular planning process.
It can do this  internally, or jointly with outside  groups.  The use
of  outside  experts  to  suggest  directions  for  priorities  and
strategies has great merit,  if these experts work  closely with the
Agency.

     In  developing  strategies, it  is critically  important  that
certain elements exist:   a)  risk-based priorities must be updated
periodically; b) the strategies should be organized around solving
critical environmental problems, not around planning for the future
of existing programs; as such, it may be most helpful to look not
only at problems (such as  the  13 we  reviewed), but   also sources
(e.g.   automobiles,   waterfront   development),   effects   (e.g.
respiratory  diseases,  habitat  reduction)  and  sectors   that
contribute to  the  problem (e.g.,  energy,  agriculture,  etc.);  c)
the Agency should then subject individual strategies to disciplined
analysis.  The  selected strategies  should incorporate innovative
approaches and should be coordinated across program offices.
7.   EPA's annual budget should more directly reflect  risk-
     based priorities.

     Historically, EPA's budgets have reflected the costing-out of
regulatory mandates,  with  little focus  on cost-effective  risk
reduction.  Accordingly,  some of the highest  risk environmental
problems,  such as  radon and  other indoor  air pollution,  have
received  only  a  small  fraction  of  the EPA budget.   Under  the
present  leadership, EPA now has  greater  concern  for integrating
risks and  priorities.   However,  EPA's  leaders are not  the  only
people who play a role in determining EPA's budget.

     The change in budget priorities need not and should not take
the  form of  radical,   overnight  change.    Small  but  consistent
changes over time  will accomplish the same  objectives without undue
disruption.   The  changes  in  budget also  do  not  need to  make
allocations exactly proportional to  risk and risk reduction.  Some
risk reduction can be accomplished at low cost.

     The Subcommittee specifically recommends that at the beginning
of the  budgetary  process, that the Administrator provide clear
advice to  the  program offices regarding  certain high-risk areas

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that appear relatively unfunded.  A second review should take place
just  prior to  the time  the budget  is  sent  to  the Office  of
Management and Budget.

8.   The Agency should develop  an enhanced environmental
     education and training program for both professionals
     and the general public.

     Reducing current environmental risks  and  protecting against
future hazards requires a sophisticated knowledge of the biosphere
and the stresses  which affect it, of the  human activities  which
cause the stresses, and of  technologies  and strategies  which are
necessary to address these problems.   Environmental professionals
and officials must also understand the economic, social, political,
and legal  implications of developing and implementing solutions to
environmental problems.   Education and training are essential not
only for environmental professionals but also for business people,
farmers, engineers,  scientists, physicians and others who carry out
activities which affect or are affected by the environment, as well
as members of the general public.

     The rapidity with which  we  are developing our understanding
of  environmental  problems  requires   continuing  education  and
training of the current workforce.  EPA  needs  to  expand its role
in supporting environmental education  and training, especially at
the university  level.   This  role  is  as  important as any of the
Agency's other roles in encouraging risk reduction and will become
more important in  the  future as environmental problems become more
complex,  interconnected  and  international  in scope.    EPA  is
currently  starting  a  new environmental  education program.    The
Subcommittee supports efforts in this  direction.

1.5  Additional Perspectives on Reducing Environmental Risks

     In the course of  its deliberations the Subcommittee evaluated
several  concepts  that   seem particularly helpful  in  thinking
systematically about risk reduction.   Because of the limited time
available, some of  these items  were not  completely considered or
analyzed.    Some  of  these  issues and topics  are discussed  in
Appendix B and include:   a)  the necessity of considering alternate
points  for intervention  in the  chain of  events leading  to  an
environmental  risk or  hazard;  b) additional thoughts on  the
rationale and approach to pollution prevention;  c)  the desirability

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of strategies that address multiple environmental problems; d) EPA
and social spending and public opinion on environmental problems;
e) the importance of local flexibility; f) the role of uncertainty
in implementing  risk reduction strategies;  g) the  importance of
strategies  that  are  integrated  across  media,  industries  and
sources; and h) the counterproductiveness of regulatory complexity.

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                        2.0  INTRODUCTION

2.1 Progress and Problems

     The beginning of the 1970s saw the dawn of a new environmental
awakening.  In rapid fire,  the  Council for Environmental Quality
(CEQ) and  EPA  were created, laws were  enacted  and bureaucracies
were put in place.   Seven major federal environmental statutes and
innumerable state and local laws and ordinances have been enacted
since that dramatic  beginning.  These  laws address a broad array
of environmental problems:  pollution of air, water and land; waste
disposal;  exposure  to  toxic  substances;  harmful  pesticides;
contaminated drinking water; and many more.

     Each  of  these  statutes  generally  deals  with  a  single
environmental medium  (air,  water,  drinking water), a single class
of pollutants (pesticides,  toxic substances), or a single activity
(management  of  hazardous  wastes).    With  few  exceptions,  the
approach adopted to implement them has involved regulating specific
sources  of  pollution (e.g., industrial plants,  sewage treatment
facilities, automobiles, hazardous  waste  landfills)  or specific
substances (e.g., lead).  These conventional "command and control"
regulations have been established specifying the level of emissions
or discharges  allowed from each source type, and/or the control
technologies each is required to use.  The  regulatory approach for
specific pollutants generally has been to ban them or to set limits
on their use on a chemical-by-chemical basis.

     These regulatory efforts have been direct and  forceful.  They
have resulted in important improvements in environmental quality.
     a) Air quality has been  significantly  improved  through
        efforts to reduce the emissions of  criteria  air
        pollutants, such as SOx,  NOx,  particulate matter,  lead,
        and CO.  SOx emissions are estimated to have been reduced
        by over 40 percent from the early 1970's.  VOC emissions,
        a precursor to ozone, have  been  reduced by an estimated
        30 percent and lead emissions by more than 90 percent.

     b) The discharge of effluents  by  industrial and municipal

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        sources has been sharply reduced.   The great majority of
        major industrial direct dischargers  have installed "best
        available" treatment technology to control their
        effluents and well over 80 percent  of  municipalities
        provide secondary treatment or better  for their
        waste water.  Almost 90 percent of  our country's  public
        water supply systems meet the  health standards developed
        by EPA for pollutants in drinking water.

     c) Certain toxic substances that once were used widely, such
        as lead, asbestos and several  carcinogenic pesticides,
        have been nearly eliminated from commerce and  human
        exposure has been reduced dramatically.

     d) Management techniques for hazardous  wastes  have  improved
        in response to regulatory programs that have  imposed
        stringent treatment and disposal  standards.   And
        abandoned hazardous waste sites, a legacy of poor
        hazardous substance management practices in the past,  are
        being identified and remediated through both federal  and
        state programs.

     To understand the progress we have made one can also  look to
Eastern Europe and the USSR and  see what would have happened if we
had not begun to enact stringent environmental protection programs
years ago.  These countries face environmental problems of enormous
proportions,  despite the fact  that  they do not  have  some  of  the
sources  of pollution  that we  do,   such  as  a  large number  of
automobiles.

     Unfortunately,  in  spite   of  our  environmental  protection
programs and the progress we have made, we still face a number of
serious environmental problems.   Many of these problems  persist
despite well-established regulatory programs  to deal with them. We
also face newly discovered problems that we are just beginning to
address.  For example:

     a) By-products of our  industrial  society  are  being shown to
        affect the earth's climate and  the  stratospheric  ozone
        layer, which protects humans and  other living species
        from ultraviolet radiation.

     b) The health standard for ozone still is exceeded in many

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        urban areas; over 100 million people live in counties
        that at least periodically violate the national ambient
        air quality standard for ozone.  More people live in
        areas with elevated levels of ozone today than in 1970.

     c) Non-point sources of water pollution result in
        silt that carries toxic materials into water
        bodies and harms ecologically sensitive areas.

     d) Some pesticides and  fertilizers  used  by the agricultural
        sector to improve crop yields  still  present health risks
        to applicators and farm workers,  and  contaminate  both
        surface and ground water.

     e) Over 50 percent of our original  wetlands, our most
        biologically productive ecosystems, have  been destroyed
        or altered permanently by development  activities  and
        agricultural practices.

     f) Radon and other indoor air pollutants present a
        significant health threat in many residences across the
        country.

     g) Tropical forests are being  destroyed  at an  alarming rate
        and threaten biological diversity.

2.2  Challenges

     Despite progress over the  last  twenty years, we face a number
of  stubborn  old  problems  and  daunting  new  challenges.    Our
conventional regulatory approaches do not appear to be sufficient
to deal with many of these issues.  The reasons include:

2.2.1  Increasing Importance of Diverse Sources of Pollution

     The environment is affected by large scale human activities,
such as energy extraction and use,  transportation,  food production,
manufacturing, housing, and  recreation.   Actions by individuals
regarding where to live and  work, what products to  buy, and what
activities to pursue have  collective  impacts on local, regional,
and global  environmental  systems.   Most large point sources of
pollution have now been addressed through conventional regulatory
means,  often through  end-of-pipe  regulations.   The  remaining

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sources of pollution resulting from general economic activity and
lifestyle decisions are numerous and now are major contributors to
many  environmental  problems.     In  total   they   are  causing
unprecedented changes to the biosphere.  These sources strain the
limits  of traditional  regulatory programs.   These  limitations
involve the large  numbers  of  individual  processes and substances
that must be  regulated;  the burden of proof  to  justify proposed
regulations; the information requirements, and the time and costs
necessary to meet such a burden of proof,  especially on a case by
case basis; the  time and cost involved in  issuing  and enforcing
permits for a multiplicity  of  sources; the economic costs inherent
in controlling small  (versus  large)  sources;  and often excessive
rigidity inherent in such regulation.
2.2.2  Ineffectiveness of Traditional Approaches  in Addressing
       Residual and Emerging Environmental Problems

      Many of the emerging  environmental  problems also are often
not very amenable to conventional regulations.   Problems such as
indoor air pollution, indoor  radon  and  agricultural chemical use
are very difficult to regulate.  Problems such as ozone depletion
and  climatic change  are global  in  scope,   requiring extensive
international cooperation and  research.   Unfortunately,  the less
conventional approaches  that may be  appropriate for these problems
— market  incentives,  information  strategies,  intergovernmental
cooperation or others — are  not yet  well developed.   The United
States has concentrated on  conventional  regulatory approaches to
environmental protection.    This has left  us with little practical
experience  on the  best  methods to  implement  non-conventional
approaches, at a  time when it appears that we  need  to use them much
more extensively.

2.2.3  Environmental Risks and EPA/s Priorities

     EPA's budgetary and programmatic priorities  are established
largely  by Congress, which in  turn responds  to  the interests
expressed  by the electorate.    The public's  attitude about  an
environmental problem is often heavily  influenced by qualitative
aspects of the risks it presents — whether the risks are voluntary
or  involuntary;   whether  there  is  an  identifiable  "villain"
responsible  for  the  problem;  whether the  risks are familiar and
predictable or unusual and  dreaded.   By contrast, scientists and

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other technical experts are trained  to judge the seriousness of an
environmental problem in much more quantitative terms, asking, for
example, about the number  and  severity  of adverse effects likely
to  be  caused by  the problem.   As  a  result, the  environmental
problems that they consider most important often do not match the
priorities set by Congress.  (See Appendix B.4)

2.2.4  Piecemeal Approaches to Environmental Problems

     Current regulatory  programs generally are organized around
single media  or single  classes  of  pollutants.    This  disjointed
approach can result in cross-media shifts  of pollutants, where the
means of abating emissions  to  one medium  may  simply transfer the
pollutants  to  another  medium.   Perhaps  more  importantly,  the
current approach also makes it difficult  to implement  integrated
strategies  to  provide  comprehensive  protection   for  certain
vulnerable resources.  For example,  estuaries and the Great Lakes
are  affected  by multiple  sources and  in ways that can  not  be
anticipated by  an  approach  that  focuses  on  specific  sources  of
pollution or on problems that arise from a  single  environmental
medium. The  current  approach  can also  ignore some  problems and
activities  that   cause  environmental   problems,   for  example
biological diversity and (until recently)  indoor air pollution.

2.2.5  Increasing Costs of Environmental Regulation

     While  the  benefits   of   protecting  the   environment  are
substantial and viewed by many as well  worth  the  costs, there is
no escaping the fact that  the costs are  also large.   The direct
expenditures of  administration  and  compliance  with programs  to
protect the environment currently exceed $100  billion per year and
are growing.  Most  of these costs are legitimate and necessary and
should  be  paid  by  those   who benefit  from the damage,  since
otherwise they are imposed on others.

     But many costs are now imposed  simply by  imperfect approaches
and  regulatory strategies  themselves:  costs of paperwork  and
lawsuits, cost of treatment technologies when  changes in materials
or processes might achieve  the same  results more cheaply, costs of
technologies that control pollutants for one medium by moving them
to another, costs of uniform compliance rather than concentrating
on  the most serious sources,   and  costs  of  correcting problems
defined rigidly by statutes rather  than  those known  to  be most

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serious.

     Because societal resources are limited and future efforts to
protect human health and environmental quality should be maximized,
we need to prioritize risk  reduction  strategies  so that the most
effective   and  cost-efficient   strategies   are  used   first.
Systematically applying this principle will  ensure that the most
effective improvements in environmental  protection are achieved,
at the least cost.

2.2.6  Pressures of Population Growth and Economic Development

     Population growth, industrial  and  agricultural  development,
and the wide dispersion of  human  settlements and activities have
tended  to  offset  the  gains  realized  by  existing  regulatory
programs.   For example,  since 1970  there has  been  about  a  20
percent  increase in  the U.S.  population and over a  160  percent
increase in economic  output.  Electricity generation has increased
by about 40 percent and the number of miles that people travel in
vehicles has  increased  by about  73  percent.  The reductions  in
emissions and  improvements  in  environmental  conditions resulting
from prior regulatory programs are impressive  given these increases
in pollution-generating activities.   Assuming,  though, that our
population and economy continue to grow in the future, we will need
to further reduce the amount of pollution  per capita  or per unit
of GNP just to maintain current environmental conditions.

2.2.7  Increasing1 Tina Required for Reversing Environmental
       Problems

     Time and reversibility have become very important factors in
developing  policies  for   environmental  protection.     Various
pollutants cause diseases  such  as  cancer  that have  latency periods
lasting years or decades.   Several environmental problems such as
global warming and ozone  depletion will require  many  decades or
even centuries to reverse.   Others, such  as species depletion, are
irreversible.  The long time lags may result either  from:  a) the
nature of the  effect or disease, b)  the lengthy  period  of time
necessary to abate emissions or production of a nearly ubiquitous
pollutant (e.g., C02) ,  and/or  c)  the  lengthy period subsequently
required for the environment to recover from  the stress and return
to  more natural  conditions  (which  may be  the  result  of the
persistence of the pollutant and a very slow rate by  which the

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environment can cleanse itself of the pollutant).

     Environmental problems having such characteristics require us
to look ahead and anticipate what the effects of present activities
will be.  They also present difficult moral and strategic issues.
We must  ask whether it is right to leave serious environmental
problems for future generations that will compromise their health
and welfare.  For global problems, we must decide how much of the
responsibility for control will fall on the developed nations, and
how much on  the  lesser developed world.   As  a  strategic matter,
when faced  by  problems that  entail potentially huge but highly
uncertain future risks and massive  control costs,  we must decide
the  best  allocation  of   resources between  doing  research  to
understand the problem better  and taking immediate actions,  even
if they later turn out  to  be overreactions, since delay could lead
to irreversible results.

2.3  Contents of This Report

     This report is organized as follows:

     a)  Chapter 3 describes the  approach the Subcommittee
         followed.

     c)  Chapter 4 describes the Subcommittee's recommendations.

     d)  Appendix A  includes strategy papers  for  each of the 13
         environmental problems the  Subcommittee  studied.   Each
         paper provides background  on an environmental  problem,
         and discusses the selected strategy options.

     e)  Appendix AA contains  lists of the possible strategy
         options developed in  Appendix A and  sorted three ways;
         by environmental problems, by tools,  and by policies.

     f)  Appendix B contains several thoughts and ideas that were
         discussed by the Subcommittee but never completely
         developed.  They are useful for further discussion.

      g) Appendix C contains descriptions of the categories
         of strategy options, the rating criteria and an
         evaluation matrix.
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                      3.0  METHODOLOGY
3.1  subcommittee Charge and General Approach

     The goal of the Relative Risk Reduction Strategies Project of
the U.S.  EPA Science Advisory Board (SAB) was  to advise the EPA
Administrator  about  the best technical  and  scientific knowledge
available on  the  relative  risks  posed  by different environmental
problems and the options to reduce those risks.  To this end, the
SAB formed the Relative Risk Reduction Strategies Committee.  The
charge to the Committee was to:

     a) Provide  a  critical  review of  the  report,  Unfinished
        Business;  A   Comparative  Assessment  of  Environmental
        Problems  (EPA,  1987),  that reflects  any  significant new
        information  that bears  on  the  evaluation of the risks
        associated with specific environmental problems.

     b) Provide, to the  extent possible, merged evaluations of
        cancer and non-cancer risks  (i.e., Health Risks)  and of
        ecological and welfare risks (i.e., Environmental
        Risks).

     c) Provide optional strategies for  reducing  the  major
        risks; and

     d) Develop  a  long-term  strategy  for   improving  the
        methodology for  assessing and  ranking risks  to human
        health and  the environment and  for  assessing the
        alternative strategies that can reduce risks.

     To carry out this assignment, the Committee established three
subcommittees: the Human Health Subcommittee, the Environmental and
Welfare Subcommittee, and the Strategic Options Subcommittee.  The
first  two Subcommittees reviewed the  EPA's  Unfinished  Business
report.   This report describes  the work and conclusions  of the
Strategic Options Subcommittee.

     The charge to the Strategic Options Subcommittee was  further
defined as follows:
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     1. Identify and analyze cost-effective and promising strategy
        options for reducing remaining major risks.

     2. Develop and demonstrate a method  of analysis useful to EPA
        for  more  in-depth  studies  of  risk-reduction  strategy
        options.

     The objective was not  to  recommend  a narrow set of specific
measures that EPA should pursue, but rather to provide a range of
the most promising types  of risk reduction options that EPA should
consider, and to  provide a procedure for continuing  work  by EPA
along these lines.

     The  twelve  members of  the  Subcommittee  had   a  range  of
technical expertise  and  viewpoints.   The Subcommittee  included
engineers,  natural  scientists,  social  scientists,  and  former
environmental program managers.   Affiliations  included academia,
industry,  environmental  organizations,  consulting   firms  and
government.   A  list  of  the Subcommittee members and  the  SAB and
EPA staff1 supporting them  is provided at the  end of  this report.
Representatives of the other Subcommittees and  EPA program staff
provided additional expertise as needed.

     The Subcommittee held  six public meetings  in the  course of
performing its tasks and  developing this  report.  The Subcommittee
proceeded through four steps:

     1. Selecting environmental problems for study.

     2. Developing a list of potential risk reduction
        options for each problem.

     3. Selecting the most promising options for each problem.

     4. Developing cross-cutting strategies and
        recommendations.

     The  Subcommittee  based its findings on  the expertise and
professional judgment of  its members.  In  developing promising risk
reduction  options  and   thematic  recommendations  for  EPA,  the
Subcommittee primarily considered technical factors such as cost,
risk  reduction,  technological  feasibility,  and  implementation
requirements associated with each option.

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3.2  Selecting Environmental Problems for Study
     EPA's Unfinished Business  report  identified and assessed 31
environmental problem.  In view of time and resource constraints,
the Subcommittee decided that it could not address all 31 problems.
Initially, 10  problems  — those  posing the greatest  health and
ecological risks according to  the original Unfinished  Business
rankings  —  were selected for analysis.    The  Subcommittee then
added 2 problems  (hazardous wastes and municipal solid waste)  to
include problems from another environmental medium and because of
the large amounts of resources and the public interest devoted to
them.   Two more problems  (habitat  alteration and wetlands)  were
added after  it became  apparent  that  the Ecological  and Welfare
Subcommittee was likely to rank  them  as particularly important.
Finally, one of the  problems, worker exposure to toxic chemicals,
was dropped  because  the Subcommittee  lacked proper  expertise  to
evaluate  risks  and options.   The resulting list  of  13  problems
included:
   Criteria air pollutants
   Radon
   Ozone depleting substances
   Nonpoint source discharges
   Estuaries and coastal waters
   Hazardous waste
   Pesticides
Toxic air pollutants
Indoor air pollution
C02 and global  warming
Wetlands
Habitat alteration
Municipal solid waste
     The 13  problems  the Subcommittee analyzed  are sufficiently
rich and diverse to suggest  some general patterns likely to emerge
in an expanded analysis.  The 13 problems  cover all of the Agency's
major media programs.   Some of the 13 problems are the subject of
substantial  current federal programs while some  represent newer
problems for which major governmental programs do not yet exist.
Some  of the  13 problems  represent sources  of pollution,  some
represent classes of pollutants, and some represent resources that
EPA  wants  to  protect.    This inconsistent  scheme for  defining
problems is  due to a decision  by the authors of  the Unfinished
Business study  to  follow legislative and program  definitions of
environmental   problems;    the    Subcommittee   recognized   this
inconsistency but  did  not attempt to redefine the environmental
problems.
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3.3  Developing a Lj.st of  Potential  Risk Reduction Options for
     Each Problem

     The Subcommittee sought to develop a broad list of potential
risk reduction options for each of the  13 problems.   An explicit
attempt was  made  to avoid limiting  the strategy  options  to the
conventional approaches  now  being implemented  for each problem.
The Subcommittee made several assumptions:

     a)  Existing risk reduction  measures already  in place would
         remain so unless  the  Subcommittee explicitly called for
         their removal.  The Subcommittee would focus on options
         to reduce residual risks in each problem  area,  beyond
         those that will be abated by current programs.

     b)  Strategies  outside  of explicit existing  legislative
         mandates could be considered.

     c)  Recommended strategies should  not be limited to those
         within EPA's scope of responsibility,  although EPA's
         role should be emphasized.

     To identify candidate risk reduction options  for particular
problems,  the  Subcommittee  divided into two  subgroups  of  5-6
members, with about half of the problems assigned  to each group.
The composition  of the  groups was designed  to take  account  of
expertise and diversity of  opinion.  Each group  identified a broad
sweep of potential risk reduction options for their problem areas
primarily  by  brainstorming.    Experts  from relevant  EPA program
offices, members of the Human Health and the Ecological  and Welfare
Subcommittees,   and  the  staff  to the  Subcommittee  attended the
meetings  and  also  contributed   suggestions.    EPA   staff  were
encouraged to  represent their personal expertise,  not official
Agency positions.

     To aid in the process of identifying risk reduction options,
the Subcommittee  developed a  list of  six classes  of measures:
scientific  and  technical,  provision   of  information,  market
incentives, conventional regulations,  increased enforcement, and
cooperation with other  agencies  and nations.   The major classes
and related  types  of strategies  are  shown in  Appendix  C.I.   As
specific strategies were identified, they were grouped according
to these generic classes.  The resulting list of grouped strategy

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options is shown  for  each  problem area following the discussions
of the problem areas in the appendices to this report.

3.4  selecting the Most Promising Options for Bach Problem

     In order to evaluate risk reduction options for the selected
problem areas,  the Subcommittee undertook a process of establishing
evaluation criteria, evaluating each strategy with respect to the
criteria, and  selecting the  strategies with  the highest ratings.
Nine criteria  for  judging  the suitability  of  a risk  reduction
strategy were  formulated.  The criteria focus on such attributes
as the risk reduction, cost, cost-effectiveness,  and dependability
of the strategy options.   The criteria used in rating the options
are described in Appendix C.2.

     Initially a simple scoring system for each criterion was also
developed, and the Subcommittee began  to apply it to the candidate
options.  To help this process, the subcommittee developed matrices
for the 13 problem areas,  listing the candidate strategies for each
and providing space for scoring each strategy  with respect to each
criterion.  A  blank matrix is provided as Appendix  C.3.  Several
Subcommittee members  completed the scoring  matrices based  upon
their  own judgments.    However,  it   became apparent  that  the
Subcommittee as a whole  would not have  sufficient  time to reach
consensus on  each  of 9 criteria scores  for several hundred strategy
options.  The Subcommittee abandoned the explicit scoring approach,
and decided  to select strategies  based on group discussion  and
consensus, considering the factors outlined in the criteria.   The
Subcommittee encourages the Agency to consider the scoring approach
more fully, recognizing that while scoring systems are a good way
to structure  and encourage discussions,  experience shows that they
can rarely be used for decisionmaking in a simple, mechanistic way.

     The  process  of  selecting  options was  time  consuming  and
typically  involved lengthy  discussion  and   debate.    Technical
expertise was  sought  from  EPA, the other SAB subcommittees,  and
outside sources.  Experts on each of the 13 problem areas  attended
the Subcommittee meetings,  offering opinions  on the  risks posed by
the problems and options that might help to reduce the risks,  and
providing  reactions  to  tentative  options generated  by  the
Subcommittee.     The  Subcommittee's   processes  of  identifying
candidate  risk  reduction  strategies  and  selecting  the  most
promising ones  became iterative  — new strategy suggestions were

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added  throughout  the  process,  and  many of  the more  promising
options were developed by combining elements of several individual
candidate strategies.

     After two meetings  conducted largely in the two subgroups,
each  dealing  with  half  of  the  environmental  problems,  the
Subcommittee  reconvened  in plenary session.    The  subgroups'
strategy options were presented to  the  overall  Subcommittee for
discussion and debate.  Following decision by the Subcommittee on
a set of preferred strategies for the problem areas, each problem
area was assigned  to a Subcommittee member who was responsible for
drafting a strategy paper.  These  papers  addressed the risks posed
by the problem, the policy background, and the strategy options for
the  problem.    The  draft  papers were  debated and  revised  in
subsequent  Subcommittee  meetings.    The final  strategy  papers
comprise Appendix A in this report.

3.5  Developing Cross-Cutting Strategies and Rec"«"«?TTa*t1lr>nT

     Many of the options selected for one problem area were similar
or even identical  to those selected for other problem areas.  The
Subcommittee performed a cross-problem analysis to identify those
options that  achieved risk reduction objectives  in a  number of
different problem  areas.   In  its final  choice of options,  the
Subcommittee gave a clear preference to  those  that  would realize
benefits across several problem areas. Some broad strategies, such
as energy conservation and pollution prevention, hold substantial
promise in this regard.

     The Subcommittee also  examined the  generic  approaches that
frequently appeared to have promise among the individual strategies
recommended for the problem areas.    This investigation prompted
several  of  the  Subcommittee's  recommendations regarding  EPA's
approach  to  risk  reduction    —  supporting  greater  use  of
information strategies and market incentives, for example.

     Finally, the Subcommittee looked briefly at the relationship
between risk-based priorities and public and private expenditures
to  assess  environmental  risks.    This  short  study  provided
additional  support   for some   of   the  Subcommittee's  broader
recommendations to EPA.  For further discussion see Appendix B to
this report, "Perspectives on Reducing Environmental Risks."
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     One  last  word of caution  is necessary  in  interpreting the
strategy options.  These strategy options should not be construeo
as recommendations, and they do not represent the primary product
of  the  Subcommittee's  work.    The  strategy options  represent
reasonable approaches to  each environmental problem, but they have
not been analyzed in any formal way sufficient to warrant asserting
that they are the best approaches to each problem.  Nor is the list
of strategy  options necessarily  comprehensive;  most likely there
are  other  strategy  options that  would  also  offer  effective
responses to the environmental problems that we have examined.

3.6  Commentary

     Beyond  the results  of this  exercise  for  the 13  selected
problems, the  Subcommittee  believes that a  methodology  like the
one used in this effort has  strong potential,  if further developed
and  refined,  for  assisting  EPA in  identifying  preferred  risk
reduction strategies. In particular,  it  is  important to consider
the approach of looking at environmental problems, at sectors and
also at the  full range of possible tools.

     The Subcommittee recognizes that this methodology is a first
effort  and   that  many improvements  are possible  and should  be
considered.   But even  more important than the  specific methodology
is  that  EPA  use  an  approach  that  is  systematic,   aims  at
comprehensiveness, and ensures that Agency personnel take a broad
and  innovative  perspective.     Because  Agency   staff   may  be
constrained  by programmatic  responsibilities,  the  Subcommittee
recommends  the participation of outside groups  also.    Outside
groups are more likely to generate innovative approaches.  Agency
staff are better able  to analyze their administrative feasibility.
One option is  to  replicate  the  exercise  conducted here.   Another
might use some mix of Agency officials  and  outside  experts.   The
assessment  of  risk  reduction  options  should  also be  repeated
periodically.   The advantages of such a  systematic,  broad-based
approach are:

     a)  It  allows a  large  number of  environmental  problems and
         potential risk reduction strategies  to be  examined in a
         relatively short time.

     b)  It  forces an overview of a large menu  of problems and
         potential solutions.

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c)  Tt releases  the  analyst from the limits of  specific
    legislative or regulatory mandates so that  strategic
    thinking is more possible.

d)  It requires cross-program analyses that highlight
    multiple benefits to several problems that accrue from a
    particular risk reduction intervention.

e)  It gives explicit attention to multiple desirable
    characteristics of a risk reduction approach.
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               4.0  CONCLUSIONS AND RECOMMENDATIONS

4.1  introduction

     The  Subcommittee's  analysis of strategies  to address  the
sample of 13 key environmental problems suggests that fundamental
changes are necessary to  achieve further progress in environmental
protection.   End-of-pipe regulatory  requirements have  served us
well in  the past in  dealing  with gross air and  water  pollution
control  and  in coping with other environmental problems.   After
using such techniques over the past 20 years, it is not surprising
that the residual problems we face are less amenable to traditional
techniques.  Some problems,  such as widespread ground level ozone,
are the  product  of continuing economic  growth  offsetting much of
the gain from regulatory measures.    Non-point sources  of water
pollution have never  been  amenable to  direct regulatory measures
for both technical and political  reasons.    Some  newer  problems,
such as indoor air pollution and radon, are similarly not amenable
to  command-and-control approaches.    The great  majority  of  the
Subcommittee's   promising   strategy   options  do   not   rely   on
conventional regulatory requirements  such as end-of-pipe effluent
standards.  Instead,   the most promising  direction for  the future
is, whenever  possible,  to  prevent  pollution  before it  is  ever
created.

     Although criticisms  of conventional regulatory control systems
are often heard, this does  not  mean that  our  past  regulatory
programs  were  or always  are  inappropriate,  nor  that  additional
command-and-control regulation cannot be beneficial.   Because of
past regulatory programs, our  air and water are cleaner,  hazardous
wastes are  better  managed, exposures to many of the most toxic
substances are reduced, and industry and other sectors of society
have become more sensitive to environmental concerns.  There will
be, however, significant  limitations in  achieving risk reduction
through a system based on end-of-pipe controls in the future.

     The broad recommendations below are designed to attack these
problems strategically, and overcome many of the current obstacles
to success.  While most of  the recommendations are oriented to the
Federal government,  many of them are also applicable to State and
local governments.
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     The Subcommittee's eight major recommendations are as follows:

     1. EPA  should  establish   priorities   based  on the
        potential for risk reduction.

     2. Pollution  prevention should  be  the most important
        approach for reducing  environmental  risks over  the
        long term.

     3. In  order to  reduce risk and  prevent pollution in a
        significant way, EPA must  substantially  broaden  its
        kit of environmental protection tools, especially to
        emphasize economic incentives  and information trans-
        fer.

     4. Environmental protection must be integrated into other
        policy areas,  in as fundamental a manner as are eco-
        nomic concerns.

     5. rn order to integrate  environmental  protection into
        other governmental  policies,  a special mechanism
        should be created in the Executive Branch.

     6. EPA should continue to perform  analyses similar to the
        present Relative Risk Reduction strategies Project and
        integrate the results into the  Agency's  strategic
        planning processes.

     7. EPA's annual budgets should more  directly  reflect
        risk-based priorities.

     8. The Agency should  develop  an  enhanced environmental
        education and training program for both professionals
        and the general public.

     These major recommendations are described further in the pages
that  follow.    The  recommendations  derive   primarily  from  the
Subcommittee's  review  and  assessment of  the numerous  strategy
options  developed  for  the  13  environmental  problems.    The
Subcommittee has not  performed sufficient analysis  to recommend
adoption of any one  of the specific  strategy options  for any of
the 13  problems.   As mentioned previously,  the  strategy options
were  generated through  an  interactive process  relying  on  the

                                26

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collective judgement and experience  of  Subcommittee members.   In
our  view,  the  strategy options  we  chose represent  reasonable
approaches for  reducing risks in each problem  area,  but nothing
more.  The Subcommittee does  believe they merit attention by the
Agency.

     These recommendations reflect broad crosscutting themes that
draw from the more specific strategy options.   In the discussion
of each recommendation,  examples of strategy options that give rise
to the recommendation are cited and referenced to a section of the
appendix.
4.2  Risk Reduction

RECOMMENDATION *1;

     EPA should establish priorities based on the potential
     for risk reduction.

DISCUSSION;

     Over the past 20 years U.S.  environmental policy has developed
in a piecemeal, ad hoc fashion.  As the nation recognized different
environmental problems,  such as deteriorating urban air quality and
the "death" of lakes and stream segments, Congress acted to solve
them by passing different  pieces  of environmental legislation —
the Clean Air Act,  the  Federal  Water Pollution Control  Act,  etc.
Because these laws were passed at different times and for different
purposes, little attempt was make  to coordinate  them.  Nor was any
effort  make to  compare the  relative  seriousness  of  different
environmental  problems   in order  to make judgments  about  the
relative urgency of different protection efforts.

     Seen in its historical context,  the  ad hoc development of our
national environmental policy  is understandable.  Yet twenty years
of experience developing and implementing environmental policy has
taught us that not all environmental  problems are equally serious,
and not all protection efforts are equally urgent.  We can not do
everything at once.   We must set environmental priorities.

     Over the past  several years  EPA has improved its ability to
characterize environmental risks,  and in Unfinished  Business  it

                                27

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has begun _to compare the  relative  seriousness  of the risks posed
by different environmental problems.   But  EPA  and the country at
large must go further.  We should set priorities for environmental
protection based  on  an explicit comparison of the relative risk
posed by different environmental problems and,  more specifically,
the opportunities for cost-effective risk reduction.  And we should
act on those priorities.

     In practice, of course, EPA's activities  are defined by the
laws that the agency is required to  administer.   As an agency in
a democratic government,  EPA also has a responsibility to respond
when the public raises  concerns  about an environmental problem, no
matter how limited the  risk may seem to be.  However,  to the extent
that EPA has discretion to emphasize one environmental protection
program over another, it should  emphasize the program that reduces
the most environmental risk at the  lowest overall cost to society.
The Congress should  also  be  encouraged to  observe this principle
in writing and revising legislation.

     The recommendations that follow  in this report spell out some
more specific measures that  EPA, Congress  and  others should take
to make this principle a reality.
4.3  Pollution Prevention

RECOMMENDATION «2l

     Pollution  prevention should  consistently b«  the most
     important approach for reducing environmental risks over
     the long term.


DISCUSSION;

     We are  not  the first group to suggest that EPA place a much
greater emphasis on pollution prevention as the preferred way to
address environmental  risks.   A fundamental restructuring of the
way the Agency approaches risk reduction is in order; the Agency's
primary  focus should  be  to  prevent the  creation of  risks,  as
opposed to trying to control  such  risks  once  created.  This is so
for a series of  reasons:
                                28

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1.  For some  environmental  problems,  such as stratospheric ozone
depletion and global  climate  change,  pollution prevention is the
only solution.  We must use substances which will not destroy the
ozone layer and also use energy sources that minimize CO2 emissions.

2.  Pollution  prevention is oftentimes the most effective solution.
For instance,  in the  case  of  lead,  asbestos,  PCBs  and  certain
pesticides, the most effective solution has been to ban their use.

3.  There  can  be a tremendous cost benefit for pollution prevention
in  terms  of  avoiding  costs of  control, cleanup and liability.
Industrial efficiency and productivity can also increase.

4.  Pollution prevention  is the  key  to  sustainable development.
In many areas we are approaching or even  exceeding the capacity of
the environment to absorb pollutants.  It is clear  that economic
and  industrial   strategies   for  the  future  that  minimize  the
production of pollution and the consumption of resources are more
likely to be sustainable economic and industrial strategies.

5.   Pollution  prevention  often prevents  the  solution  to  one
environmental  problem  from   re-emerging as   another   kind  of
environmental problem in another environmental medium, sometime in
the future or in another place.

6.  Pollution prevention can help improve international relations
in two ways.  First,  it can  help  developing countries leapfrog the
environmental problems that we had in the U.S. by moving directly
to  low polluting,  low waste technology.   Second, because of the
worldwide  impact  of   the  U.S.  production  of  pollution  and
consumption of resources,  our moving towards pollution prevention
will be   practicing  what we   preach:    exerting leadership  and
avoiding  anti-U.S. sentiment because  of  the  constraints that the
rest of the world will have  to absorb  in  order to deal with global
environmental problems.

7.  Pollution prevention protects  the  natural resources  on the
planet for future generations  by not  leaving excessive  levels of
wastes and residues and pollution and by not depleting resources.

     Our  review  indicates,  however,  that a  fundamental  problem
hindering progress on pollution prevention has been confusion over
precisely what pollution prevention is and how it  is different from

                                29

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pollution control.  We  define  pollution  prevention to be changes
in  raw  materials, products  or technologies of  production which
reduce  the  use- of hazardous materials,  energy, water,  or other
resources and/or the creation of pollutants or destructive results,
without creating  new risks of  concern.   Energy conservation,  for
example, represents a prime form of pollution prevention, obviating
environmental damage  from extraction, transport,  processing  and
combustion of fuels.

     Technologies of production are the fundamental means used by
people to accomplish the core productive activities of life,  from
mining to manufacturing to farming to transportation.   Changes in
the configuration of such technologies to cut hazardous materials
use  or  the  creation  of  pollution  would  constitute  pollution
prevention;  the addition of supplementary technologies to control
hazardous materials  already used or  pollution already  created
constitutes  pollution  control.   Considering  just one  example,
substituting water for  chloroflurocarbon-113 as  the solvent  used
at a circuit board manufacturing facility is pollution prevention;
adding recycling equipment to the facility to capture and recycle
CFC-113  and stop its  release to  the  atmosphere is  pollution
control.  Pollution prevention can also include changing activities
and the location  of these activities  so  as  not to  harm sensitive
ecosystems;  avoiding development near wetlands is an example.

     From our  study  of a  limited  number  of  problems we  have
identified a large number of strategy options which are pollution
prevention  approaches.    Upon  reviewing  these  options,  several
cross-cutting themes emerged:

1.  EPA's  pollution prevention  programs should be directed broadly
to  address  products  and  many  productive  sectors,  not  just
industrial production processes.   EPA should promote prevention in
all sectors, from manufacturing to  agriculture  to construction.
Energy  conservation  is a  key  part  of any pollution prevention
strategy.

2.  EPA and other Federal agencies  should  go  beyond problem-by-
problem pollution prevention to focus on comprehensive multiproblem
solutions, such as toxics use reduction and energy efficiency and
conservation, and on altering specific technologies of production
or products which contribute to multiple problems.
                                30

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3.   Federal  agencies  should  identify  and  eliminate  standards,
subsidies,  activities  or  approvals  that  promote polluting  01
damaging  activities  or  technologies,  and  instead promote  non-
polluting   activities,   technologies,   and  products,   through
incentives, research, technical assistance,  procurement and other
means.

4.  Since pollution prevention  concepts are  relatively new to many
people,  EPA should  actively  work with  representatives of  many
interests to promote  better understanding of pollution prevention.
EPA  should pursue  this  among many types  of  people,  from  EPA
personnel to academics to corporate officials responsible for the
design,  selection  and  purchase  of  raw  materials,   production
processes, and products.  Collaborative  research,  education,  and
technology development and transfer efforts with industry,  state
agencies,  organized  labor  and public  interest groups  should  be
considered.  EPA should seek to make prevention the responsibility
of every  agency  and  federal  employee,  not  just  that of a  single
office in EPA.  If pollution prevention goals were integrated into
all  policies,  pollution  prevention could play  a  large role  in
restoring and preserving the quality of the environment.

5.   Community right-to-know and other  related programs  should  be
given special attention and possibly expanded.  These possibilities
include having more producers and users of certain toxic chemicals
and pesticides report publicly on such production and use.   These
producers and users should be further encouraged to conduct audits,
prepare plans and set goals for reducing their production and use.
The  aim  is  to  ensure  that  producers  and  users identify  the
pollution implications of their decisions  and consider alternatives
that would generate less pollution.

6.  In ths long  run,  economic incentives and disincentives need to
promote  pollution prevention.    Energy  policy  should  encourage
conservation.  Tax policy should  encourage  pollution  prevention-
oriented recycling and reuse.

     The   section  on    pollution   prevention  in  Appendix   B,
"Perspectives on  Reducing Environmental  Risks,"  provides further
thoughts on this subject.
                                31

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EXAMPLE STRATEGIES:

POLLUTION PREVENTION - PP

S.2.2  Promote the use of clean and alternative fuels in cars and
trucks.  PP, REGS, EP, TH

S.2.4  Reduce use  of solvents in consumer products.  PP, INFO, REGS

S.5.1  Strengthen the  Montreal  Protocol to virtually eliminate use
of CFCs, halons and other ozone depleters.   PP, FOR

S.6.3  Slow  global warming  through  energy  conservation.   PP, MI,
EP, TAX

S.13.1  Encourage  reduced use of pesticides by providing incentives
for  farm  use  of  integrated  pest  management  (IPM),  and  by
prohibiting unnecessary uses.  PP, S&T,  AP, MI, INFO, REGS

(See Appendix AA for complete listing)

(The codes  preceding  each  example strategy refer to  the  part of
Appendix A where the example strategy  is  discussed in more detail.
The codes following each example strategy indicate the categories
into which it falls.   See the first page of Appendix A for a more
complete explanation of the coding of these example strategies).
4.4  A Broader Kit of Tools

RECOMMENDATION «3:

     In  order to  reduce risk  and prevent  pollution  in a
     significant way, EPA must substantially broaden its kit
     of   environmental   protection  tools,   especially  to
     emphasize economic incentives and information transfer.

DISCUSSION:

     EPA  has  made a considerable investment  in  a  limited set of
conventional  regulatory  tools:  end-of-pipe effluent limitations,

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design standards,  product specifications, and  use restrictions.
Most EPA  program staff are  dedicated  to this  set of regulatory
approaches and  their implementation through  permits,  compliance
monitoring and enforcement.  A  large part of the research budget
is devoted to supporting this effort.   Even the Office of Policy,
Planning and Evaluation,  the least  constrained  of EPA's offices,
makes  only  a modest  investment in nontraditional environmental
policy measures.

     The reason  for this emphasis  does  not  lie with  EPA alone.
EPA  looks  to conventional  regulatory  methods  for environmental
protection because  enabling legislation  and  public expectations
push the Agency strongly in that direction.

     The  Subcommittee  feels strongly  that   the  most  promising
strategies for  risk reduction  encompass  a wide range  of policy
approaches.   As described in the previous chapter, we identified
six broad policy approaches  which EPA  and other Federal agencies
could  employ  to change the  behavior  of  individuals,  firms,  and
other institutions to reduce risk (not in order of priority):

     Scientific and technical measures;
     Provision of information;
     Market incentives;
     Conventional regulatory standards;
     Enhanced enforcement of regulations; and
     Cooperation with other agencies and nations.

These approaches are not meant  to be mutually exclusive,  as many
policy measures combine elements of several approaches.   It is also
sometimes difficult to  categorize specific strategies as falling
within  a  single  approach.    Nevertheless,  we  believe the  six
approaches delineate the basic strategy elements available to EPA
for environmental protection.

     In order to  give fair  consideration  to  the non-traditional
approaches,  EPA needs  to  increase dramatically  the resources and
commitment  devoted  to  them.     This  was  also  the  principal
recommendation of a recent report of the National Research Council
concerning waste reduction research  needs  (NRC,  1990).  First, the
existing applications of  innovative alternatives to  traditional
controls  need  to  be  evaluated.     Experiments  in  providing
information,  such  as  Section 313 of  SARA and  Proposition  65 in

                                33

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California,  need to  be  evaluated to  determine  what types  of
behavior were affected.  Economic incentive-based alternatives or
supplements  to  regulations  should be  developed,  analyzed,  and
wherever possible, pilot-tested.   (For  years,  California  has led
in  regulatory   initiatives   and  recently  in  an   information
initiative.   There  is  no  reason States  could not lead  in non-
conventional  techniques,   possibly induced  by  availability  of
Federal assistance.)   To  conduct  these functions, EPA needs to
allocate resources to non-conventional approaches,  evaluate their
effectiveness,   and   give  these   types  of  measures   serious
consideration in agency decisionmaking.

     EPA  will  also  need  to  overcome  its  bias  against  new
approaches.  Today,  when new approaches  are examined, they tend to
be held to a higher standard than existing approaches.  It  is easy
to identify a long list of potential problems with  implementation
of new approaches, and  thus the  approaches are often  rejected at
an early stage.   There may be an equally long list  of potential
problems with an  existing  approach.   Some of  these  problems are
accepted unquestioningly — expected difficulties in implementing
a command-and-control regulatory  scheme  are assumed to necessitate
massive   resources   for   program  implementation   (permitting,
compliance monitoring, enforcement, state oversight,  etc.) rather
than casting doubt on whether the  scheme is  the  best  approach in
the first place.  Other potential  problems with existing approaches
never  come   to   light  because  thorough   evaluations   of  the
effectiveness and cost of existing  programs  are  not routinely
performed  once  the   regulations  are   promulgated.     In  this
connection,  EPA  might look  closely  at  the  strategy  options
discussed below and in Appendix A.
4.4.1  Scientific and Technical Measures

     Two major sets  of  these  measures  are:   (1)  research  and
development activities to improve understanding  of  problems  and
point to promising  solutions; and  (2)  innovations in pollution-
prevention approaches and pollution  control  technology.   In some
cases, other approaches — such as market incentives — will lead
to such  research  and development and/or  product  innovation (and
diffusion).   In other cases, we focus  on these  scientific  and
technical measures as constituting a "general approach" themselves.
                                34

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     Beyond such particular  scientific  and technical strategies,
EPA needs both:

     a) A substantial increase in its budget and policy
        commitment for  research.   The nation  invests  heavily in
        research  on  military  defense,  industrial
        competitiveness, quality health  care and management of the
        economy, and  should also do so to protect the environment.
        The SAB's Future Risk report suggested a doubling of EPA's
        research budget in five years.

     b) An aggressive broadening of its risk  reduction research
        program.   This  should  include  health  and  ecological
        effects,  environmental   transport  and   fate  studies,
        engineering  technologies and  regulatory  support  as  at
        present, as well as  information on the relative risks of
        various hazards; on  the  design  options for strategies to
        reduce them,  including economic, social and communication
        issues; and on the effectiveness and side effects of such
        strategies once they are tried.  Because an important goal
        is to change  the behavior of individuals and institutions,
        it is  essential that  EPA increase its  research  in  the
        social sciences.

Many of these  general  points were also made in  the  SAB's  Future
Risk report.
EXAMPLE STRATEGIES:

SCIENTIFIC AND TECHNICAL MEASURES - S&T

S.I.6  Further investigate the relative  roles  of VOCs and NOx in
ozone formation,  S&T

S.4.4  Develop better instruments to diagnose sick buildings.  S&T

S.6.1  Understand better the potential for global warming and its
impacts.   S&T

s.6.2  Increase  research on ways  of preventing and  adapting to
global warming.  S&T
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S.9.3     Develop  ecologically  protective   and  cost-effective
technologies to manage contaminated sediments in estuaries.  S&T

(See Appendix AA for complete listing)

(See first  page of Appendices  for  explanation of the  coding of
these example strategies)
4.4.2  Provision of Information

     In  a  number  of  cases, risk  reduction can  be promoted  by
providing information to producers, consumers, or  both.   In some
situations,   even  if  individuals  and  firms  have  the  "right
incentives"  they  may fail  to  reduce  risk appropriately.   This
general category  of  information-provision  strategies encompasses
three quite  distinct approaches.  First, there is the provision of
more information  about  risks to consumers of various  goods and
services.   Laws  and  regulations which compel  firms to produce
information for  the public  can  provide powerful  incentives for
firms to reduce pollution.   "Green  labeling"  and  consumer guides
to environmentally friendly  products  are examples  of initiatives
that are currently being undertaken in various areas.  The pressure
of information in  the marketplace was clearly demonstrated when the
U.S. banned CYC's in  aerosols  in 1976 with an effective date of
1978; in short order virtually all aerosols contained no CFC's.

     Second,  technical   assistance   on cost-effective  means  of
preventing or  controlling  pollution may be provided to firms or
other polluters that lack adequate information.   Small and medium
sized firms  can particularly benefit from this assistance.  Third,
EPA  might  continue to  assist or  encourage environmental  self-
auditing, whereby firms periodically evaluate their performance in
order to facilitate management control of environmental practices
and  assess  compliance  with  company  policies  and  regulatory
requirements.

EXAMPLE STRATEGIES:

PROVISION OF INFORMATION - INFO

S.3.2  Improve techniques  of communicating radon  risks so public
can make informed decisions.  S&T, INFO

                               36

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S.4.1    Provide  state  and  local  governments  with  technical
information to help them address indoor air pollution.  S&T, INFO

S.13.2  Create a right-to-know program regarding pesticide use by
large agricultural  firms.   Encourage industrial  audits of these
facilities.  PP, INFO, AP

(See Appendix AA for complete listing)

(See  first  page of Appendices  for explanation of the  coding of
these example strategies)
4.4.3  Market Incentives

     A  key to  reducing environmental  risks  is  to  ensure  that
consumers and producers face the full costs of their decisions —
not  just  their direct  costs,  but  the  full  social costs  and
consequences of their actions.  Economic incentive systems provide
various ways to do this.  They may also  reduce the aggregate social
cost  of achieving target  levels of pollution abatement.   Most
economic incentives  can  be viewed as falling  within  one of five
major categories:  (1) pollution charges,  (2) marketable permits,
(3)  deposit-refund   systems,   (4)   market   barrier  reductions,
including provis-ion or elimination of government subsidies, and (5)
revision of  legal  standards defining liability  for damages from
pollution.  These categories are closely related and the boundaries
between them are often not  distinct.  Many market incentives would
not be  fully under the control of EPA,  and  are also discussed in
the  next  section  of this  chapter on cooperation  with  other
agencies.

     1.   Charge systems impose  a fee  or  tax on pollution (or,
usually less desirably,  on  pollution-generating activities).  When
there is a charge for polluting, it pays firms to reduce pollution,
with  those that  can abate  pollution  at  low  cost  reducing  or
controlling proportionately  more and  those  facing  higher  costs
reducing or  controlling proportionately less.   Thus,  the  total
costs of pollution control are minimized, as compared with other
allocations of  the pollution control burden  across  firms.   Under
this and other economic  incentive approaches, additional pollution
control efforts are in the  financial  interest of firms, as long as

                               37

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the  costs  of  controlling pollution  are lower  than the  charge
imposed ori~the pollution.  Hence, these mechanisms provide ongoinq
incentives for firms to develop  and  adopt  newer,  better and less
expensive  pollution control  technologies.    One  example  of  a
pollution charge  would  be a carbon  tax  on fossil  fuels  to help
control global climate  change.  Other types of taxes and fees also
can  be  used to  promote environmental protection in a  flexible
manner without direct government regulations.

     2.   Under  a  marketable  or  tradeable permit system,  the
allowable overall level of pollution is established by regulation
and then allotted in the form of permits among firms.  Firms that
keep emission levels below their allotted level may sell or lease
their surplus permits to other firms or use them to offset excess
emissions in other parts of their own facilities.   As with a charge
system, the  societal cost of control is pushed toward  a minimum
level for any given level of total pollution control.  The use of
marketable permit systems for VOCs in nonattainment areas and for
SO2 emissions by electric utilities could lead to savings relative
to  traditional  regulatory methods,  both because  their  inherent
flexibility takes advantage of wide  differences  in control costs
across sources and because they  allow individual  firms  to decide
where and  how to make  desired  reductions.   These  systems also
provide strong incentives for innovation, compared to technology-
prescribing regulations.  Marketable permit systems with regulatory
ceilings on  emissions or  discharges  can also be  used to avoid a
problem posed by  charge systems, namely  that one  can not know in
advance what level of cleanup will result from any given charge.

     3.    Deposit-refund  systems  represent  a  third  type  of
incentive-based instrument.  Under this  approach, surcharges are
paid when potentially polluting products are purchased.   When the
product's, consumers/users  return the  product,  their deposit is
refunded.  One advantage  of  the  deposit-refund system is that it
reduces the  incentive  for illegal dumping  which  exists  under a
waste-end tax or fee.   In  the case of hazardous waste it should be
noted  that  criminal penalties  and  the  manifest  system already
discourage illegal dumping.   Also, to the extent'the refund causes
the  item to  be collected and brought to a location where  it is
recycled or reused,  the system reduces the need for waste disposal
capacity.  This approach  has already been  used successfully in a
number of states  in so-called "bottle bills11  to reduce littering
with beverage containers,  and it  has  been used  in West Germany for

                               38

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                 disposal.   Deposit-refund  systems  may  also be
               -her items such as lead-acid batteries, crank-case
              vehicle tires.

           In  some  cases,   substantial  gains  can  be  made  in
         ntal protection simply by removing existing, government-
       JL barriers  to  market activity.  For  example,  if electric
      ,ies with insufficient  generating capacity were provided an
    .itive to choose the least costly alternative among a full range
   options  for increasing supplies  and/or  reducing demands, more
 .fficient energy generation and consumption would result.

     Another type of market  incentive  involves situations in which
existing    government    subsidies   promote    inefficient   and
environmentally unsound development.   For example, a subsidy which
is both economically inefficient and environmentally disruptive is
that associated with certain water resource  projects, which provide
an  (unintentional)  incentive  for the drainage and clearing of
wetland areas.  Such subsidies could be reduced or eliminated.

     Alternatively, positive subsidies or incentives can be created
to  encourage  environmentally  beneficial  activities,   such  as
preferential Federal government acquisition  of clean-fueled cars
or recycled paper products.  The municipal sewage treatment program
is an  example  of a subsidy that  has  been  used for environmental
protection.

     5.   Finally,  revision  of the  legal standards prescribing
liability for damages from polluting activities  can provide a very
powerful incentive to modify behavior.   The  strict, joint liability
standard under CERCLA has had a major  effect  in  inducing solid and
hazardous waste generators,  transporters and  disposers to pay much
closer  attention  to  their  operations.     In  theory,   numerous
attributes  of  liability  standards could be  adjusted  in  order to
support environmental  aims:  the  burden of proof,  limitations on
damage awards,  standing to sue, allocations  of responsibility among
contributing  parties,   etc..     Liability  standards   could  be
established or modified in several areas, including application of
pesticides, worker exposure  to toxic chemicals,  and production and
sale  of  products  with toxic components.     In  practice,  the
Subcommittee recommends  substantial caution in using this very
powerful  tool.    The eventual  effects of  revised  standards of
liability  are very  difficult to  predict  accurately.    Using

                               39

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litigation as a tool to achieve  environmental
very large,  unproductive  transaction costs,
losing parties often get very different treatrt
have if the case had not been settled in court ^
                                               v ^,.
     Although economic incentive-based approach^. <^
costs and greater efficiency in addressing nuraer^ ^ °^
problems, the Subcommittee does not endorse them fv 4*  $  ^
as the preferable alternatives.   The record for m« ^  °
is mixed, and they need careful examination when b
for any application,  just as conventional regulatory            4
One needs to be certain that an incentive will actu
reduction in pollution, and will  not simply make it
a source to pay for the opportunity to pollute.  One
pick the right type of incentive.  Surveying the vari
incentives, charges often  provide little certainty, and ma*..^
permits are only useful when the subject pollutants cause similar
damages over  a  large area.   Reducing perverse subsidies,  on the
other hand, should usually be appropriate.
EXAMPLE STRATEGIES:

MARKET INCENTIVES - MI

S.I.I  Use marketable permits  to lower costs and spur innovation
in reducing acid rain.  MI, EP

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.8.1   Remove economic  incentives for development  in wetlands.
MI, AP, TH, TAX, NR

S.12.4   Create  deposit/refund systems  for  tires,  batteries, car
hulks, used oil and packaging containers.  MI

(See Appendix AA for complete listing)

(See  first  page of Appendices  for explanation of the coding of
these example strategies)
                                40

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4.4.4  Conventional Regulations

     Although  the  subcommittee  generally  argues  for  greater
consideration of non-traditional  environmental  protection tools,
conventional regulatory approaches hold out substantial promise of
achieving  further  reductions  in environmental  risk  for  many
problems.  Conventional regulatory approaches cover a broad range:
end-of-pipe standards  (performance standards),  design standards,
use restrictions and product specifications.   Some of these types
of regulation contribute directly to pollution prevention, rather
than simply  controlling emissions.   Most  existing  environmental
laws  and  regulations  utilize  one  form  or  another  of  such
conventional policy instruments.   This  includes technology-based
standards,  risk-based  standards,  uniform  emission  standards,
uniform ambient standards,  location-based standards, product bans,
and numerous other requirements.
EXAMPLE STRATEGIES:

CONVENTIONAL REGULATIONS - REGS

S.3.3   Require radon inspections  for schools and  certain other
buildings.  REGS, TH

S.3.4   Establish airflow and radon protection standards  for new
buildings.  REGS, TH

S.11.4  Simplify RCRA regulations and provide a more flexible array
of hazardous waste management standards.  REGS

s.13.3    Regulate  the   practices  of  large  pesticide  users,
particularly in sensitive environments.  REGS, ENF,  AP

(See Appendix AA for complete listing)

(See  first  page of Appendices  for explanation of the  coding of
these example strategies)
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4.4.5  Enforcement

    Virtually no set of strategies for environmental risk reduction
will be effective without a commitment on the part of the Federal
and  state  governments to  enforcement.   In a  number of  cases,
substantial gains can be made  in  environmental  risk  reduction by
more vigorously enforcing existing statutes and regulations.

    If firms  perceive that the expected value of penalties  for
exceeding  permitted  emissions  under either  a uniform  emission
standard or a tradeable permit  program  is  less  than  the  marginal
cost of  pollution  control,  they may decide that it  is  in their
interest  to  exceed  permitted  levels  (all other  factors  held
constant).  The  expected value  of penalties is  affected  not only
by the level of the penalties but also by the likelihood that they
will be  levied.  To the extent  that  penalties  or other sanctions
are not  enforced, such laws and regulations will be  ineffective.
In many  cases other  factors  like ethics  and  the importance of
public opinion mitigate against strict economic compensation.

     While  the  subcommittee   believes  that   enforcement-based
approaches can  provide  risk reduction opportunities  for  many of
the  EPA  problem areas, it  did not  have enough time  to  develop
specific concepts.  Two generic concepts were  raised.   First, to
be effective,  an  enforcement  program  must provide   a  deterrent
effect for the entire regulated community.   In many program areas
today, agency/state enforcement efforts  target  a narrow  range of
the  community.   Non-targeted groups have  no real likelihood of
enforcement scrutiny.   For those groups that are not targeted,
statistical sampling should be a part of the enforcement strategy
so that the threat of an inspection is always present.

     Furthermore,  it  should  be   recognized   that  effective
enforcement toward one firm has the  added  advantage  of providing
a credible threat to other  firms, thus encouraging compliance more
generally.  This deterrent effect is credible  and effective only
if it hits close to home —  if a firm or  individual perceives that
other firms or individuals  very like  themselves afe being enforced
against.

     Second,  the  current   approaches   to   enforcement  are  very
resource intensive for the  Agency.  It  seems that other approaches
could be used which  would  more fully  utilize  the private sector

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(either the regulated universe itself, independent inspectors, the
insurance industry, the financial rating authorities, or informea
citizens).    If  well crafted,  these types  of  approaches  could
provide proper incentives for companies to perform rigorous self-
audits.
EXAMPLE STRATEGIES!

ENFORCEMENT -_ ENF

S.11.5  Identify contaminated waste sites posing immediate threats
and quickly bring them under control.  REGS, ENF

S.11.7  Encourage site cleanup by third parties through enforcement
and use of reasonable settlement procedures.  REGS, ENF

(See Appendix AA for complete listing)

(See  first  page of Appendices  for  explanation of the  coding of
these example strategies)
4.4.6  Cooperation vith Other Agencies and Nations

     Due to  EPA's limited  jurisdiction,  cooperation  with  other
agencies and  nations  often presents the  best opportunities  to
reduce environmental risks.   Domestically, there are many programs
and  policies   administered  by  other Federal,  state  and  local
departments and agencies that can contribute to environmental risk
reduction.   There is also a group  of environmental problems that
are fundamentally transboundary or global  in  nature,  and require
a good deal of  interaction  with other countries.   Global warming
and ozone depletion are prime examples.  The Subcommittee found the
issue of cooperation so important that they  have made  them the
subject of the next two sections and recommendations.
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4.5  Integrating Environmental Protection with Other policy Areas
RECOMMENDATION f4t

     Environmental protection must be  integrated  into other
     policy areas, in as fundamental a manner as are economic
     concerns.

DISCUSSION;

     Many types  of government policies significantly  affect  the
environmental problems  that EPA  needs  to address.   Thus  it  is
critical for  EPA to work with the departments and  agencies that
are responsible for these policies to develop clear and measurable
objectives for environmental performance and to create the proper
incentives for sustainable development.   Environmental quality must
be  integral   to  decisionmaking  in  these  agencies,  not just  a
constraint at the end  of the policymaking process.   It  is  not
sufficient, for example, for energy or agricultural policies to be
developed and then  examined for  potential  negative environmental
impacts.   Instead,  energy  and  agricultural  policies should  be
designed   from   the  start   to   contribute  positively  toward
environmental goals.

     In virtually  every case,  changing U.S. policies  in sectors
not traditionally linked with environmental protection can provide
major cost-effective environmental  benefits.  These benefits  can
equal or exceed  those achieved to date  through other  means.  Not
taking  environment  into   account  will   inevitably   lead   to
confrontation as well as missed opportunities.

     These policy  areas include, but are not limited to energy,
agriculture,    housing    and    commercial   development,    tax,
transportation,  natural  resources,  and foreign policy.   In many
cases, the generic tools that these agencies have, such as economic
incentives, have been discussed in the previous section.

     To make  this integration real, EPA  must devote  people  and
money to  the  effort.   EPA  presently  spends a great  deal  of  its
budget  to  develop  and  review  regulations,  but   it  spends
comparatively little to work with other agencies.
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4.5.1  Energy Policy

    In addition to the obvious  benefits to society, the production
and use of energy is responsible for a great deal of damage to the
environment.  This damage can result from a limited consideration
of environmental impacts  in making energy decisions.  Some examples
of environmental effects of energy production are:

     a.  Combustion  of energy  in the industrial,  transportation,
commercial  and  residential sectors  results  in the  bulk of  the
pollutants involved in urban smog and acid precipitation.

     b.   Energy activities are  responsible  for half of  all  the
greenhouse gases produced by human activity.

     c.  Coal mining operations result  in widespread destruction
of surface  areas  and acid runoff into local streams,  while coal
burning results in massive amounts of ash, SOx, NOx,  particulates
and toxic air pollutants.

     d.  Oil exploration and production often cause environmental
damage.

     e.  Cooling systems, scrubbers and other environmental control
devices  produce significant amounts of  solid  waste  and  consume
large amounts of water and power.

     f.   Accidental spills while  transporting oil  have  damaged
inland and  coastal  waters.   Leaking petroleum  storage  tanks  are
one of the primary causes of ground-water contamination.

     g.  Nuclear wastes present unique problems.

     h.  Tightening older buildings to conserve  energy can increase
health risks from indoor air pollution.

     Energy policy can work in harmony  with  environmental goals.
Energy policy has been  driven largely by  security concerns and fuel
availability.   In the  future,  the choice of which mix  of energy
options  to  pursue  will  need  to be driven  just  as heavily  by
environmental concerns.   Energy conservation  measures,  if  given
high priority,  will  improve the balance  of payments,  lower world

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oil prices and reduce security threats, in addition to protecting
the  environment.    Conservation must  be driven  by U.S.  policy
choices based on  full  cost  accounting  of environmental concerns,
as well as security and other objectives.

     While scrubbers and tailpipe controls  can  reduce  some types
of emissions substantially, the best way to control emissions is
often  to  invest  in conservation  approaches that produce  less
pollutants in the  first  place.   New buildings  and factories are
using new technologies  that  require a small  fraction of the energy
and  resources  of their  predecessors.   A major focus  of  energy
policy must  be  to accelerate adoption of  efficient designs and
production practices.  This will  require changes  in a  number of
current regulatory programs.

     Promoting energy  efficiency requires research investment in
a  broad  range   of  technologies  for  buildings,  industry,   and
transportation.   For  instance, without care in design, improvements
in the energy efficiency of buildings can  lead to deteriorating
indoor air quality.  We  also  need to promote energy conservation
through institutional changes, such as  incentives for utilities to
encourage  conservation.     More general  market  incentives  and
regulatory changes that promote  greater energy efficiency are also
important.

     A second major  focus must  be to develop new energy supplies
that do not damage the environment.  This  will require a deliberate
and effective national  strategy, to shift both national and world
reliance from high-polluting and depletable  fossil fuels, such as
coal and  petroleum,  to more benign  alternatives.   It  will  also
require serious comparative research,  as quickly as possible, on
the environmental  impacts and energy efficiencies  of alternative
sources of energy —  for instance renewable fuels (not all of which
are environmentally benign themselves), hydrogen, "passively safe"
nuclear technologies, solar  energy and perhaps others —  and on the
relative effectiveness  of alternative instruments for implementing
such a strategy.
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EXAMPLE STRATEGIES:

ENERGY POLICY - EP

S.I.3  Alter state utility  rate  structures  to persuade utilities
to sell conservation rather than BTUs.  PP,  MI, EP, TAX

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.   PP,  MI, REGS, EP, TH, TAX

S.6.4  Promote  non-fossil  and non-carbon energy technologies.  PP,
S&T, EP

(See Appendix AA for complete listing)

(See first  page of Appendices for  explanation of the  coding of
these example strategies)
4.5.2  Agriculture Policy

     Over  the  years,  agriculture policies  have been  extremely
successful  in  boosting  U.S.  output  of  food  and  fiber.    Many
agricultural programs have  also  improved  the  quality  of  the
environment.

     Unfortunately,   however,   agriculture  is  still   a   major
contributor to  environmental  problems  across  the  U.S.   Use  of
pesticides in agricultural production and food processing amounts
to 75 - 80% of total pesticide use, causing substantial damage to
human health and natural  ecosystems.   Agriculture  accounts  for
roughly 50 - 70%  of the known instances of  impaired surface waters,
primarily  as a  result of  nonpoint source runoff.   Agricultural
chemicals  are   one   of  the   leading  sources  of  ground-water
contamination.   Agricultural drainage  is responsible  for about 90%
of the wetlands  lost in  the past  several  decades.   Methane from
rice  production and farm  animals is  a  significant source  of
greenhouse gases.

     Federal farm programs have  a considerable influence on what
fanners grow and how  they grow it.  In  recent years, annual Federal
farm payments of $10-26 billion have constituted up to 50% of net

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farm income.  More than 2/3 of U.S.  cropland is enrolled in Federal
commodity programs.   Agricultural extension agents in nearly 3000
counties provide much of the  education  and advice  that farmers
receive on technical issues.

     These Federal  farm programs  are  not generally  designed  to
abate environmental  problems. To the contrary, some unintentionally
exacerbate them.  The agricultural subsidy programs often provide
incentives for farmers to farm  intensively, using great quantities
of pesticides and fertilizers to maximize per acre yields.  Farmers
seeking to use alternative, more environmentally benign practices -
-  crop  rotation,   covering idled acreage  with  forage  crops,
reduction of chemical use to economic minimums —  may sometimes
receive reduced federal  program benefits.

     Federal agriculture policies  and  programs should be revised
not only to  reduce  or eliminate disincentives  to  environmentally
benign  farming,  but  to  directly  support  good  environmental
practices.  The Conservation Title of the 1985 farm bill provided
a start in this direction, as does the 1990 farm bill and several
recent proposals among the President's water quality initiatives.
Considering,  however, the quality of the Agriculture Department's
research, development,  and  technology transfer programs and the
impact that  its subsidy programs have on  farming  practices, the
Department   could   do   much  more   to   promote   environmental
improvements.

     Agricultural policy can most effectively promote environmental
improvement  in  two  areas.   First,  a major goal  of agricultural
policy could become  a serious commitment to reduce soil erosion and
runoff of agricultural chemicals into surface waters.  Agricultural
policies  could  induce   much  greater  use of  "best  management
practices" such as  planting of buffer strips to  reduce nonpoint
sources  of   pollution.    Second,  agricultural  policy  could  be
directed at  low-input sustainable  agriculture through promoting
integrated  pest management  and  reducing use  of  agricultural
chemicals.

     Many of the steps  toward an  environmentally  positive farm
policy rely on the traditional  approach of  financial and technical
assistance offered to farmers on a voluntary basis.  Farmers have
been free to determine whether to accept  these program benefits or
not.    Integrating  environmental  concerns with  Federal  price

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support, crop loan,  technical  assistance  and other programs will
undoubtedly  encourage  improved  environmental  practices  by man^
farmers.    But  one  may  question  whether better  environmental
practices by farmers should continue to be optional.

     Pollution  from  agriculture is substantially  less regulated
than are the environmental problems caused by other major sectors
such as  manufacturing,  transportation, mining  and silviculture.
Many areas of government, the  service  sector and even households
(automobiles, wood stoves)  are regulated to some  degree.   There
are no strong philosophical or practical reasons why at  least large
farms  should not be held  to  similar  standards as other  major
polluters.   Large farms could  monitor  and report on their use of
chemicals and emissions and effluent.  Permits could be written and
enforced  for large  farms  prescribing  use of best  management
practices to minimize off"farm pollution impacts. Pesticides could
be made available  for large volume farm use on a prescription basis
only.  It appears  worthwhile both to modify Federal  farm incentive
programs so as to  elicit satisfactory environmental performance by
farmers  on  a voluntary basis,  and  to investigate  the role that
mandatory regulatory programs might play.
EXAMPLE STRATEGIESt

AGRICULTURAL POLICY -AP

S.7.1   Modify  national  agricultural policy  to  reduce  nonpoint
source pollution.  PP, S&T, INFO, MI, AP

S.8.1   Remove economic  incentives  for development  in wetlands.
MI, AP, TH, TAX, NR

S.13.1  Encourage reduced use of pesticides by providing incentives
for  farm  use  of  integrated  pest  management  (IPM),   and  by
prohibiting unnecessary uses.  PP, S&T,  AP,  MI, INFO, REGS

(See Appendix AA for complete listing)

(See first  page of Appendices  for  explanation of the coding of
these example strategies)
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4.5.3  TaarPolicy

     Tax policies affect the environment in a variety of profound
ways.  Policies that promote investment in new plants and equipment
have  positive impacts,  as  new  technologies  tend  to  be  less
polluting and more energy efficient.  Tax policies that stimulate
home ownership —  certainly  an admirable goal  —  appear  to have
contributed to urban sprawl,  increasing pressure on natural areas
and increasing energy use.  Favorable tax treatment  of second homes
has  been particularly  important in  encouraging  development  of
coastal wetlands and barrier islands.   Tax  policies  that  provide
subsidies for virgin extractive  industries  reduce  incentives for
waste  reduction  and  recycling.    Taxes  on  energy  can  promote
efficiency and encourage development of different energy sources.

     Tax policy is perhaps the most effective incentive tool that
the government has.  Through a system of taxes and  credits, tax
policy can be  designed to encourage or  deter  economic behavior.
It  can also  create  a  funding base  for specific environmental
programs as it did with Superfund.   To date,  tax policy has been
selectively used to create incentives for environmental investments
and to  encourage  the replacement of  environmentally undesirable
processes or products.   It  has  also been used in a limited fashion
to raise money for environmental programs.  However,  its use as a
positive  incentive to broadly  affect  the  future  behavior  of
corporations and individual citizens has not been fully utilized,
nor has  careful analysis  been  performed that could  serve  as the
basis  for modifying   environmentally  counter-productive  taxing
programs.

     While there are always serious political problems associated
with new taxes, three points  are  important to mention.  First, the
public continues to show its willingness to pay for environmental
protection, and earmarked environmental taxes hold some attraction.
Second, environmental goals  could be fostered by revenue neutral
approaches that shift existing  tax incidence.  Third, "taxes" that
are designed not  to raise general revenues but to'charge the costs
of real environmental damage to  those  who benefit  from them, and
when possible  to pay  for  the services  necessary to  prevent  or
correct the damage, are in fact not taxes in the general sense at
all, but merely user fees  that should  be paid by the beneficiary
in any case.

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EXAMPLE STRATEGIES:

TAX POLICY - TAX

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.10.5   Support state,  local,  and  private  efforts  to  preserve
important  habitat   areas   through  tax  breaks   and  technical
assistance.  S&T, MI, TH, TAX, NR

S.12.3  Tax wastes  and virgin  materials to promote waste reduction
and recycling.  MI, TAX

(See Appendix AA for complete listing)

(See  first  page of Appendices  for explanation of the  coding of
these example strategies)
4.5.4
        Policies
     Transportation and commercial development policies affect the
environment  in  profound,  but  not  always  obvious ways.    The
extraordinary  U.S.  financial investment  in highways has  helped
stimulate a sprawling pattern of development around urban centers,
particularly in  the  west.   A range of Federal  tax,  subsidy,  and
other  activities encourage  single  family  development.    These
policies have  led to air and noise pollution and  destruction of
critical ecological habitats.

     Transportation and urban development  policy needs to take the
environment  into account.    Transportation  and  infrastructure
development  should  attempt  to  lessen,   rather  than  increase
dependence on  the automobile.  Urban  traffic problems  need to be
fixed to prevent unnecessary emissions from idling and stop and go
driving.   Mass transit,  carpools and other  mechanisms  should be
aimed at reducing urban driving.

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     Housing  and  commercial  development   policy  provides  an
opportunity to prevent environmental damage  before it happens by
controlling development in ecologically  fragile areas, and also to
influence the clean-up of any past problems.  Appropriate building
design  and  siting provide the most  direct way  to  assure  that
residential,  commercial,  and  public  buildings  are  healthful.
Product performance standards, voluntary information programs, and
mandatory problem  identification/problem  correction  programs all
have a role  here.  Requirements imposed at  the time when a property
is sold or requirements associated with Federal mortgage financing
are particularly promising.

     Transportation is responsible for about a third of U.S. fossil
fuel consumption.  Specifically, passenger cars consume 12%, trucks
10% and other transportation modes  9%.   Highway  vehicles  alone
produce  34% of the  nitrogen  oxide emissions,  24%  of  volatile
organics, and 54%  of  carbon  monoxide.    Policies   designed  to
increase the efficiency  of transportation or to  substitute clean
fuels can have multiple environmental benefits.

     Under  existing  regulatory  policies  for fuel  efficiency and
emissions control, motor  vehicles have  become  more efficient and
less polluting.  For example,  new model passenger cars have their
exhaust emissions  of  volatile organics and carbon monoxide reduced
over 90% from uncontrolled vehicles, and the average  fuel economy
of  'new  passenger  cars  has risen  by  nearly  100%   since  1974.
Unfortunately, vehicle miles travelled have increased,  due to lower
gasoline  prices,   lack   of transportation  alternatives,   etc.
Although  forecasts vary,  vehicle  use and travel  are  expected to
increase by as much as 75% in the next 20 years.

     With the limited further gains in emission control available
from  traditional   end-of-pipe  controls,  policies  to  encourage
retirement of older automobiles, to  improve traffic flow, and even
to   provide   alternative  modes   of  urban   development   and
transportation need to be  investigated.   The 20-year plan of the
South Coast Air Quality  Management  District to improve pollution
levels  in Los Angeles is a pioneering effort in this  regard.
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EXAMPLE STRATEGIES:

TRANSPORTATION. URBAN. HOUSING  AND COMMERCIAL DEVELOPMENT POLICY
- TH

S.2.1  Reduce  auto  emissions  by reducing vehicle miles travelled
— through better land use planning, car  pooling, and mass transit
alternatives.  PP, INFO,  EP, TH

S.3.1  Ensure that homeowners understand radon risks by requiring
testing before properties can change hands.  INFO, MI, TH

S.4.3   Establish ventilation requirements for new  and existing
homes.  REGS, EP, TH

(See Appendix AA for complete listing)

(See  first  page  of Appendices  for explanation of the  coding of
these example strategies)
4.5.5  Natural Resource Policy

     Federal policy on land  and  resource  conservation and use of
the nation's natural resources has a substantial influence on many
env i ronmenta1 prob1ems.

     The Federal government owns  about 21% of the land  in the lower
48 states and 32% of  the  land in the  entire United States.  Much
of this land is  in natural or near-natural  condition, providing the
nation's largest reserves  for protection of natural diversity.  The
balance that is struck in managing this land between preservation
and use for forestry, grazing, mining, recreation, development or
other  activities  is a major determinant  of the  extent  to which
natural  communities will  survive.    The   share  of federal  land
acquisition  funds  allocated among   competing  purposes  (e.g.
acquisition of  natural areas vs. recreational  areas vs.  historic
areas) is also important.

     Policies regarding the availability of resources  from Federal
lands are a major determinant of prices for basic commodities and

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the ability of recycled materials to compete with virgin supplies.
To the extent U.S. Forest Service  timber sales,  for example, arc
subsidized, they depress the overall price  for  timber and act as
a  disincentive  to recycling  of paper  and  other wood  products.
Federal lands provide the following shares of basic commodities in
the U.S.:  timber, 33%; oil, 11%;  gas,  26%;  grazing acreage, 27%.

     Federal  lands  are  also  direct  sources of  pollution.   Ten
states report silviculture as a significant nonpoint source .problem
for  surface  waters,  often  involving  federal  lands.    Federal
requirements specifying allowable harvests, streamside buffers and
road building practices can have a major influence on this problem.
Federal range lands are in notoriously poor condition, with 63% of
them  classified  as  being  in  fair  or  poor condition.    Their
condition  is  partially a function of  low federal  grazing fees,
which encourage overuse of the  land and provide insufficient funds
for their maintenance.

     Federal water projects  (dams, channelizing,  dredging, etc.)
are responsible for a large proportion of the physical alteration
of aquatic ecosystems that has  left only  about 1/3 of the nation's
riparian  ecosystems  in  a  natural  condition.   Although  federal
subsidies for water projects have been reduced in recent years, the
projects' beneficiaries still pay an average of only a few percent
of the project costs.   Irrigation  water  from federal projects is
particularly highly subsidized, with prices  often set under 30-40
year contracts to recover only a portion of  the original building
costs.  Irrigation accounts  for about 80% of consumptive water use
in the arid west.  In  this  area, reduced stream  flows because of
consumptive water withdrawals constitute a major ecological stress,
and pollutants from  irrigation return  flows (salinity,  nitrates,
selenium) cause further ecological  damages.

EXAMPLE STRATEGIES:

NATURAL RESOURCE POLICY - NR

S.6.5   Reduce  C02 accumulation  in  the  atmosphere  by  creating
incentives to preserve and enhance the world's forests.   MI, TAX,
NR, FOR

S.10.1  Develop  a nationwide inventory and  preservation plan for
important habitats.  NR

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S.10.3   Dramatically  increase  Federal acquisition  of important
ecological areas and open space.  NR

S.12.3  Tax wastes and virgin materials to promote waste reduction
and recycling.  MI, TAX, NR

(See Appendix AA for complete listing)

(See  first  page of Appendices  for  explanation of the  coding of
these example strategies)
4.5.6  Foreign Policy

     In  recent  years  it  has  been  become apparent  that  many
environmental  problems  are international  in nature and require
cooperative,  multi-national  solutions.   It  is heartening  that
foreign policy is adapting faster to the environmental imperative
than some other governmental functions.  Initially, international
efforts focused heavily on either transboundary problems (such as
Great  Lakes  pollution,  acid  rain  or  movement  of  wastes)  or
pollution occurring in international waters (oil pollution, ocean
dumping).  Today,  issues such as global warming and ozone depletion
engage the economic trading partners of the West, the currently or
previously centrally planned economies, and many of the developing
nations.  Concern over the cold  war is being replaced by concern
over trade and environment.

     Problems  such  as  global  warming  and stratospheric  ozone
depletion can  not  be solved  by any  country working alone.   Even
the strictest regulations of global  pollutants will be ineffective
when conducted unilaterally.   Such  unilateral  action,  while well
intended,  would  substantially affect  the  economic  balance  in
competitive production.

     The U.S.  might improve  the growing linkage between foreign
policies and environmental concerns by conducting  a  thorough and
impartial assessment of the impacts of U.S.  international trade,
debt  and  finance  policies  on  global  human  and  environmental
conditions. This analysis should address direct actions by the U.S.

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government,  the positions  the U.S.  advocates  in  international
agencies and lending institutions,  and the practices of U.S.-basec
multinational corporations.

     Efforts to push for pollution prevention and  low waste/low
resource consumptive technology both at home  and abroad will pay
off by making the  U.S.  an example for others to follow and helping
other countries to avoid problems they might otherwise face.  The
U.S.  should  also  boost  education  and  training  programs  for
developing  countries  to   promote sustainable   development  in
technology and agriculture.
EXAMPLE STRATEGIES:

FOREIGN POLICY - FOR

S.5.1  Strengthen the Montreal Protocol to virtually eliminate use
of CFCs, halons and other ozone depleters.   PP, FOR

S.6.5   Reduce  C02 accumulation  in the  atmosphere by  creating
incentives to preserve and enhance the world's forests.  MI, TAX,
NR, FOR

S.6.6  Pursue an international agreement on greenhouse gases.  FOR

(See Appendix AA for complete listing)

(See first  page of Appendices  for  explanation of the  coding of
these examples strategies)


4.6  Federal Environmental PolicvmaXina

RECOMMENDATION «5t

     In order  to integrate environmental policy  into  other
     governmental  policies,  a  special  mechanism  should be
     created in the Executive Branch.

DISCUSSION!

     The broad environmental strategies discussed above  for energy,
agriculture,  tax,  transportation,  natural  resource and foreign
policy  areas  require  an  institutional  mechanism  within  the
Executive Branch.  There are several means by which this might be

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dons: the Council on  Environmental  Quality could be expanded and
given  clearer  policy  development  responsibilities,  a  Cabinet.
Council  on  the Environment  could be  reconstituted and  given  a
staff, or a new entity could  be established.  Another option would
be to create a new Environmental  Policy Council  (EPC), which might
be  chaired  and staffed  by the  Chairman  of CEQ  or it  could be
jointly  chaired by  the Administrator  of EPA  (or Secretary of
Environment) and the Chairman of CEQ.

     The primary responsibility of such a group would be strategy
development.   This group  would devise means  of  harnessing  and
coordinating existing  government programs  to serve environmental
goals,  as  well as  developing  new approaches  for  integrating
environmental goals into major legislation such as farm or energy
bills.   Individual  government agencies would  remain  responsible
for  implementation   of the  strategies developed  under such  a
mechanism.

     Such a group could also look to the future, examining future
trends  and  options  for  production  sectors  which  affect  the
environment.  Long  range strategies could  then be developed that
are consistent with and do not  threaten other  objectives.  Areas
for study could include each  of the general areas discussed in the
previous section of this chapter as well as more specific topics,
such as new materials, biotechnology,  etc.

4.7  Risk-Based Strategic Planning
RECOMMENDATION 16t

     EPA should continue  to  perform analyses similar to the
     present Relative Risk Reduction Strategies Project and
     integrate  the  results  into  the  Agency's  strategic
     planning processes.

DISCUSSION:

     The Agency needs to  conduct  the type of exercise undertaken
in this project and make it a part of its regular planning process.
It can do this internally, or with input from outside groups.  The
use of  outside experts  to suggest  directions  for priorities and
strategies has great merit,  if these experts  work  closely with the

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agency.   In  developing strategies, it  is  important that certain
elements exist:

1.  Risk-based priorities roust  be  updated  periodically.   A major
review  of the environmental  risks facing  the nation should  be
conducted every  several  years,  to reflect  changes  in scientific
knowledge and progress in mitigating problems over time.  Specific
strategies for reducing  these risks should  be  updated more often
(probably annually).

2.   The strategies should  be organized around  solving  critical
environmental  problems,  not  around  planning  for  the future  of
existing  programs.   It  is  extremely  useful to  analyze  problems
defined in alternative ways —  for example,  as pollutants (e.g.,
criteria air pollutants,  toxic air pollutants), as sources (e.g.,
automobiles,   power plants),  in terms  of  their effects  (e.g.,
increased respiratory diseases, reduced visibility),  in  terms of
the sectors affecting  them  (e.g., energy, transportation and urban
development,  tax).  Looking  at environmental problems in different
ways suggests different types of strategic solutions.  Only after
taking  a  multi-faceted,  comprehensive  look  at  problems  and
potential solutions is it appropriate to develop plans for specific
EPA programs.

3.  The Agency should  subject  individual strategies to disciplined
analysis to determine how much  risk reduction  each  will  achieve.
This analysis should not become so complicated or drawn out as to
become itself an obstacle to progress.   Also needed is information
on cost, timing, certainty,  and ancillary benefits or risks.  The
matrix developed by the  Subcommittee represents one  approach of
evaluating alternative strategies against a set of criteria.

     The  resulting   strategies should  incorporate  innovative
approaches  and  should  be  built  into the   program  plans  for
implementing  offices  in a  coordinated manner.    To date,  EPA
strategies have  often been limited to  clearly defined statutory
requirements  and to  the use  of clear-cut statutory  tools.   The
Subcommittee suggests that EPA aggressively user the full scope of
its  statutory authorities  to  achieve  the  desired  environmental
results.  The  Toxic Substances  Control  Act (TSCA)  provides broad
authority for  information-oriented strategies.  Several  laws may
give the  Agency  authority  to charge user  fees,  which could form
the basis for economic  incentive  programs.    All major  statutes

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provide   authority   for  research,   information  dissemination,
technical  assistance,   training,   and  cooperation  with  other
agencies.
4.8 Risk-Based Budgeting

RECOMMENDATION 17;

     EPA'a annual budget  should  more directly reflect risk-
     based priorities.

DISCUSSION;

     Historically,  EPA's  budgets   have   reflected  simply  the
resources  necessary to  establish and  implement the  regulatory
programs mandated by  Congress,  with little focus on  risk and on
where  the  cost-effective  opportunities lie  for reducing  risk.
Accordingly, some high risk environmental problems,  such as radon
and other indoor  air pollution, have received only a  small fraction
of the EPA budget.  EPA has some independent ability to shift its
budget  incrementally  toward  greater  concern  over  risks  in
establishing priorities.  EPA's present leaders have demonstrated
greater concern  in this  respect; they  are making changes,  and
should continue to do so.   However, EPA's leaders are not the only
people who play a role in determining EPA's budget.

     The change in budget priorities need not and should not take
the  form  of  radical,  overnight  change.    Small but  consistent
changes over time will accomplish the same objectives without undue
disruption.  The  changes  in  the budget also do  not need to make
allocations exactly proportional to  risk and risk reduction.  Some
risk reduction can be accomplished at low cost.

     The Subcommittee specifically recommends that at the beginning
of  the  budgetary  process,   the  Administrator  or  the  Deputy
Administrator provide clear advice to the program offices regarding
certain high-risk activities that appear  relatively underfunded.
A second review should take place just prior to the time the budget
is sent to  the Office of Management and Budget to assure that these
activities continue to be reflected as high priorities.

     This  strategic  process  should assist   in  the  review  of

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budgetary priorities.   But, whatever  the process chosen  by the
agency,  it  is critically  important that  a specific  process  be
developed to compare budgetary allocations with risk.

     Fundamentally, though,  it is the Congress, constituency groups
and the public that set EPA's broadest priority directions.  To the
extent these directions from outside the Agency differ from EPA and
expert's risk-based view of what the Agency priorities should be,
public discussion about environmental priorities becomes critical.
EPA must listen to Congress, interest groups and the public about
why they see environmental problems as they do,  and EPA must also
communicate  its   own  views  on   these  issues  and  solutions.
Significant  disagreement  about priorities  between  the  public
concerned with environmental protection and the agency charged with
assuring  it  needs  to  be  aired  publicly  so  that  a  common
understanding can be  reached.  The agency needs to stress the risk-
based approach in this discussion.

     Appendix B,  "Perspectives  on  Reducing Environmental Risks,"
contains  several  sections  that are  directly  relevant to  this
recommendation, concerning  risks,  priorities, and  EPA and social
spending.
4.9  Education and Training

RECOMMENDATION *8l

     The  Agency  should  develop  an enhanced  environmental
     education  and training  program for  both  the  general
     public and professionals.

DISCUSSION;

     The preceding recommendations  by the  Subcommittee suggest a
broad  approach   to   environmental   protection  in  the  Nation.
Individuals making decisions  about production or  consumption of
goods and services should understand the environmental implications
of  their actions  and their  opportunities to prevent pollution
rather than generate  it.   Environmental  concerns should be fully
considered in developing government policies regarding economics,
energy, agriculture,  housing,  natural resources and other sectors.
The tools used for environmental protection should be extended well

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beyond traditional command-and-control  end-of-pipe regulation to
include less direct but broader-based approaches such as economic
incentives, provision of information, and research and development.

     This expanded approach places responsibility for environmental
protection on  all  sectors of society, not  just on environmental
professionals  (e.g.,  environmental  engineers,  agency  staffs,
corporate  environmental   personnel,   activist  groups)   alone.
Producers, consumers, businessmen,  farmers,  architects,  bankers,
scientists, government officials and others all must understand the
impact of their activities on the environment.   This will require
an  improved  program of  environmental  education  and  training
throughout society,  supported by  EPA.  EPA should support programs
in three specific areas:

1.  Broad environmental education for the general public.

2.  Incorporation of environmental concerns into higher education
and in-service training for  non-environmental  professions (e.g.,
engineers, architects, etc.).

3.  Improved education for environmental professionals on pollution
prevention, cross media concerns, and risk communication.

     Regarding  the   general   public   it  is   clear   that  real
improvements in many environmental conditions depend upon actions
by individual citizens.   It is the individual who decides whether
or not to obey a particular  regulation,  whether or not to change
his/her behavior, and whether or not to support a particular risk
reduction  strategy.    Individuals  can  segregate  their  trash,
conserve energy  and  water,  and buy non-polluting  products.  Such
actions depend  on a  public  that is  educated  to  understand and
choose practices that will reduce risk in a cost-effective manner.
This  education  should begin  at  a  young age.   The  fundamental
concepts of environmental protection and stewardship can and should
be taught early.  By  effectively communicating  a few fundamental
environmental messages,  the nation can help mobilize a huge social
force to address  the needs  of environmental protection.   EPA is
currently starting  a new environmental  education  program.   The
Subcommittee supports efforts in this direction.

     The second group for which  environmental  education programs
should be  improved  includes  a wide  range  of  professionals not

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directly concerned with environmental quality but whose decisions
nevertheless have a profound impact on environmental condition —
businessmen, architects, engineers, farmers, bankers, developers,
and  others.    In some  areas,  such  as  real  estate  transaction,
mergers and acquisitions, and siting new industrial plants, these
professionals have recently recognized that they must pay attention
themselves to environmental concerns and cannot leave them solely
to environmental specialists.   However,  the  set of issues on which
decision-makers  should pay  serious  attention to  environmental
concerns is much broader, including decisions about what products
to produce and how, building design, farming practices, etc..  We
hope that  professionals making such decisions can be  trained to
recognize  the  choices  they  have  among  alternative  ways  of
conducting  their  productive  activities  that can  minimize  the
generation of pollutants and wastes.

     EPA should  provide financial  assistance to  universities for
the incorporation of environmental  concerns  and understanding into
professional curricula. EPA should also work with the professional
societies  and   other   organizations   interested   in  continuing
education  for professionals.    EPA might  lend  its  experts  as
lecturers and consultants to these organizations, and might support
development of appropriate teaching materials.

     Finally,  EPA  must concern  itself  with the  education  of
environmental professionals.   This concern  should extend to both
the number  of individuals  being educated and the  quality  of the
education being  provided.   Within  our  educational institutions,
student  interest   (and  arguably  also  student  capability)  in
sciences, mathematics and engineering is flagging.  The result is,
for example,  a  serious shortfall in the  number of  engineers and
scientists relative to our needs for dealing with such problems as
hazardous waste.   Traditional scientific education  programs are
only  beginning  to appreciate  the  need for  multidisciplinary,
multimedia approaches  to our current and emerging environmental
problems.  For example,  only a handful of colleges and universities
have strong  waste reduction curricula;  none has  a comprehensive
multimedia pollution prevention program.

     To  address  the  widening gap  between  needed and available
personnel, the Agency should develop an aggressive training program
for graduate scientists and engineers.  The program might include
fellowships  for  promising  environmental professionals, increased

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environmental research grants to university faculty that can also
support   student   assistants,    and   teaching   materials   for
environmental courses.

     The  case  for  education  and  training  aimed  at  present
environmental professionals is,  in some ways, even more compelling
than that  for future  professionals.   The  pace  at which  we are
discovering  new  problems   and   nuances   of   old  problems  has
outstripped the ability of many specialists  to remain current with
all  the  latest developments.   Sophisticated  computer  modeling,
impacts  on an  unprecedented global  scale,  and the  perplexing
difficulty of some  of the simplest questions  (e.g.,  "How  can we
tell if  this ecosystem  is  'sick'?") have leapfrogged  over the
training of many scientists and engineers schooled to address more
traditional localized concerns (e.g., "How do we construct the best
water treatment facility?").  Important areas where knowledge has
recently burgeoned warrant special attention in training courses:
pollution  prevention,  multimedia and  integrated  environmental
management,  risk  assessment  (both human  and ecological),  non-
regulatory strategies for risk reduction,  and risk communication.

     As environmental problems in the future become more complex,
interdependent  and   global  in   scope,   improved  environmental
education  and  training will become critical  in empowering our
society  to  make sensible,  informed  environmental choices.   EPA
support for improved education and training  may be as important in
ultimately reducing environmental  risks as  any of the other more
tangible steps the Agency may take.
4.10  Conclusion

     The environmental challenges of the  1990's are daunting.  The
contaminants of  concern extend  from natural soil  conditions  to
chemical manufacturing  plants.   The  exposure  occurs everywhere,
from individual basements to the entire globe.

     The problems of the 1990's no longer fit neat patterns where
villainous industries or municipalities belched air pollutants or
discharged  raw sewage.   Rather,  we are  dealing  with  problems
without clear  culprits  or simple end-of-the-pipe  solutions.   We
are  recognizing  that  virtually  all public policy affects  the
quality of the environment,  one way or another.

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     Hence,  we  conclude  where we  started.    The  traditional
regulatory  mechanisms  for  addressing  environmental problems  —
certainly with many victories to their credit — will not suffice
to meet many of problems of the 1990's.  The new challenges require
development and  use  of a much broader variety of  tools  and much
earlier  consideration  of   environmental   factors  in  national
decisionmaking.   If  these  steps  are  not  taken,  environmental
problems  of  many sorts  will  continue  to   increase.  In  other
instances we may  improve environmental conditions, but at excessive
costs.   In  both cases,  we will  have  failed to  meet our risk
reduction potential.
                              REFERENCES

NRC, Improving Risk Communication, Committee on Risk Perception and
     Communication,  National  Research Council,  National  Academy
     Press, Washington, D.C., 1989

National  Research Council,  Waste Reduction;  Research Needs  in
     Applied Social  Sciences. Washington,  D.C.,  National  Academy
     Press, 1990

USEPA,  National  Advisory  Council  for Environmental  Technology
     Transfer,  Report and  Recommendations of the  Environmental
     Education  and  Training Committee,   Office  of  Cooperative
     Environmental Management, Washington, D.C.  20460.
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                            Appendix A

               Optional strategics for 13 Specific
                      Environmental  Problems
     Each of the strategy options  listed for the different problem
areas  in  Appendix A  has been  listed  again at  the end  of this
Appendix  (AA.l)  and  has been sorted according to  risk reduction
tool (AA.2)  and according to policy area (AA.3).  The sorting makes
use of the  codes shown below.  Representative examples of these
strategy options also appear in the main text of the report where
appropriate.

Risk; Reduction Tools
  PP - Pollution Prevention
  S&T - Scientific and Technical Measures
  INFO -  Provision of Information
  MI - Market  Incentives
  REGS -  Conventional Regulations
  ENF - Enforcement

Policy Areas
  EP - Energy  Policy
  AP - Agricultural Policy
  TH - Transportation, Urban, Housing and
       Commercial Development Policy
  TAX - Tax Policy
  NR - Natural  Resource  Policy
  FOR - Foreign Policy
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A.I  Criteria Air Pollutant!

A.1.1.  Risk Background

The  problems  associated  with   the  criteria  air
pollutants (carbon monoxide, suspended parti cut ate
matter,  lead,  ozone,  nitrogen  dioxide,  sulfur
dioxide and -- for the purposes of this report, --
sulfates  and  nitrates)   are   perhaps  the  best
understood of any this Subcommittee is considering.
To  be  sure,   uncertainties attend  estimates  of
emissions,  chemical   transformation,   transport,
deposition, and  ultimate  effects on  human health,
ecological processes,  materials, aesthetics,  and
also the costs of control.   But because the federal
government has had basic research, monitoring, and
control programs in  place  for   twenty years,  and
because  many  state  and   local  governments  were
controlling particulates and sulfur dioxide for at
least ten years prior to 1970,  we have accumulated
an  impressive  store  of  knowledge  about  these
pollutants.

Health risks:

Primary  National  Ambient  Air   Quality  Standards
(NAAOS) have been established for each criteria air
pollutant.  The'  NAAQS are intended  to prevent the
variety  of  health   effects  that   criteria  air
pollutants may cause, often particularly affecting
sensitive groups  such as children or  people with
asthma.  Despite  substantial progress in reducing
emissions of criteria air pollutants and attaining
NAAQS, in 1988 over 121 million people in the U.S.
resided in counties which  exceeded at  least one air
quality standard (USEPA, 1990).

a)   Ozone  standards  are  those most  frequently
violated.  Approximately 112 million people live in
\counties  not attaining  ozone  standards.    Both
clinical  and  epidemiological  studies have  found
links between acute (short-term)  exposures to ozone
and a variety of adverse health effects,  including
nose and throat irritation and respiratory problems
including changes  in  pulmonary  function  tests and
asthma attacks.  Some animal toxicological studies
have suggested that prolonged exposures  to ozone
may  increase   the  risk   of   chronic  pulmonary
problems, but there is as  yet no  confirmatory human
epidemiological  evidence,   even  in  populations
exposed to relatively high  levels for long periods
of time.

b)    Paniculate   matter  is   a  more  localized
pollutant.  Although some 26 million people live in
non-attaining  counties,  only  some   of  them  are
actually  subject  to  levels  above  the  standard.
Acute exposure to such levels has been  linked to
respiratory  problems, particularly  for  sensitive
populations   like  people   with  asthma,   small
children,  or  the  elderly.    Extended  chronic
exposure  is  thought  by  some  to cause  premature
death.

c)    Carbon   monoxide   in  ambient  air  affects
relatively  few individuals  among the  29
people   in  non-attainment   areas.      In  high
concentrations, CO aggravates angina and may cause
developmental or neurological effects.

d)  Nitrogen oxides  can irritate the lungs, cause
bronchitis and pneumonia,  and lower resistance to
respiratory infections.  Over 8 million people live
in  counties which  exceed  the  nitrogen  dioxide
standard.

e)  Sulfur dioxide standards are exceeded in areas
affecting  1.7  million people.   It  can  aggravate
asthma.

f)   Lead can  cause  learning disabilities  and  is
particularly dangerous to children.   Though  1.6
million people live  in lead  non-attainment areas,
a  very  small  proportion  of  them  are  children
exposed to levels above standards.  Lead may cause
adverse health  impacts by several means in addition
to inhalation.

g)    Acid  aerosols   do  not  have  air  quality
standards, but  are associated with various criteria
pollutants.  These particles have been  linked  to
lung damage,  aggravated respiratory  disease,  and
increased mortality (perhaps  several thousand cases
per year).

The health effects of  criteria  air pollutants are
well  known,  based  on  extensive  animal  studies,
human     experiments,    and   epidemiological
investigations.   Human  exposure can be modelled
using ambient air monitoring data of good quality.

Ecological risks;

Plant damage  from ozone  and acid deposition has
been  documented.    The  underlying dose response
relationships have been established in experimental
settings.  However,  in the field,  plant  damage is
difficult to link to specific criteria pollutants.
Damage is often due  to a combination of pollution
and natural phenomena, such as droughts, pests, or
harsh winter weather.

Ozone damage  to  vegetation  includes  leaf damage,
reduced growth, altered reproductive capacity, and
altered  sensitivity to  pests.    Damages  vary  by
species and location,  but the potential  for damage
is nationwide.  Despite  the  predominance of urban
sources of ozone,  long range transport results in
elevated  ozone  levels  in  many  forested,  rural
areas.

Deposition of acidic sulfur and nitrogen compounds
causes damage  to  lakes,  streams,  and  forests  in
some  parts of the U.S.   Increased  acidity from
deposition  to  lakes  and  streams  can  affect the
reproduction and  growth of  many aquatic species.
In several areas  of  the country (the Adirondacks,
Michigan's Upper Peninsula, and Florida) up to 12X
of the lakes have been acidified.  Acid  deposition
can  also  leach   nutrients   fro*  soil,   inhibit
photosynthesis,  and kill microorganisms.   It may
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 also riiobilize toxic metals so that they enter soils
 or  harm  aquattfr. life,  crops,  or  trees.   Acid
 deposition  is  suspected,  though not proven,  to  be
 a   factor   in   forest  dieback  and  declines   in
 coniferous  growth.

 Welfare risks:

 Criteria   air   pollutants   cause  large  welfare
 damages;  these  damages  have  been more closely
 studied  than  those  for  any  other environmental
 problem.    Materials  damage and  soiling, reduced
 commercial  agricultural  and  forest   yields,  and
 reduced  visibility  result  in  economic   losses
 estimated   in  the  tens  of billions   of dollars
 annually.

 A.1.2.  Policy Background

 Federal,  state,  and  local   governments  have been
 implementing  programs  to   control  criteria  air
 pollutants  many  decades.    In general,  state and
 local  governments  have primary responsibility for
 preventing and controlling criteria air pollutants,
 which they do by  conducting  permitting, monitoring,
 inspection,  enforcement,  and  planning   programs.
 The  federal government  supports  these activities
 through  research and development, technical  and
 financial assistance,  and establishment of national
 standards.   These  programs have  had impressive
 effects and have carried impressive costs.

 Despite growth in population of 10X and real  GNP of
 26X  over   the  10  years   from   1979   to  1988,
 improvements  in  both  ambient concentrations and
 emissions  have  been   seen   for  five   of   the  six
 criteria pollutants (USEPA,  1990).

               Trends for 1979 - 1988
                             air  pollution  control  regulations  we  currently
                             spend  about $35  billion per year,  almost all  o'
                             which  is  directed at criteria air pollutants.   Of
                             this  total,  about half goes for emissions  control
                             at stationary sources  and  half goes  to  controlling
                             emissions  from  cars, trucks, and buses.  Over  the
                             past  two  decades, total expenditures necessitated
                             by  the Clean Air Act have  exceeded $200  billion
                             (U.S.  DOC,  1988).

                             In spite  of the  air pollution  control  efforts  to
                             date,   emissions   are   still   significant    and
                             pollution-related     risks     remain.          For
                             example.ambient ozone concentrations remain high in
                             many  areas, most notably Los  Angeles.    Concern
                             about  acid deposition from  sulfates and nitrates
                             has prompted pending legislation that would almost
                             halve  annual  emissions  of sulfur dioxide  in  the
                             U.S.   Concern  also  exists  in  some areas about
                             ambient  concentrations  of carbon  monoxide,  fine
                             particulates  (particularly  acidic  sulfates}   and
                             nitrogen oxides.   The  sources  responsible  for  the
                             emissions  of  each criteria  air  pollutant  in 1988
                             were (USEPA, 1990):

                             Sources of Total  National  Emissions
                                        (in percent)
                            Pollutant

                            Particulates
                            Sulfur oxides
                            Carbon monoxide
                            Nitrogen oxides
                            VOCs
                            Lead
                 20
                  4
                 67
                 41
                 33
                 34
25
79
12
55
 5
 7
38
17
 8
 3
46
26
17
 0
13
 1
16
33
          Avg. Monitored
          Pollutant Cone.
 Total National
Annual Emissions
Transportation * A
Fuel Combustion * B
Industrial Processes * C
Solid Waste I Miscellaneous = D
Particulates      -20X
Sulfur dioxide    -36X
Carbon monoxide   -28X
Nitrogen oxides   - 7X
Ozone             + 2X
Lead              -89X
    -22X
    -17X
    -25X
    - 8X
    -17X (VOCs)
    -97X
Ozone  concentrations  appear  to  have  increased
because  of  an unusually  warm summer  in  1988 and
alternatively   a    cooler    1989   resulted   in
substantially   lower   ozone   levels.      These
improvements (except for ozone) in air quality have
reduced  health,  ecological,  and welfare  damages
from  criteria  air  pollutants.    Although  some
attempts  have   been   made  to  quantify  these
beneficial effects  in  physical  terms and to place
dollar  values  on  at  least  some  of  them,  we
currently have no really clear idea of the overall
economic value of the  benefits;  however,  they are
clearly substantial.

The  costs associated  with  twenty  years  of  air
pollution control  are  somewhat  more  amenable  to
quantification.   In order to  comply with  federal
A.1.3.  Possible Strategy Options

Four major challenges must  be  faced in developing
a strategy for criteria air pollutants:
                            b.
        Reduce sources of SOx and MOx that lead to
        acid deposition.

        Reduce   emissions  of   volatile   organic
        compounds  that are  considered the  major
        contributors to ozone formation.

        Pursue pollution prevention steps to assist
        in achievement of standards, and even more
        important, to assure their maintenance.
                                     Research,  development, and  monitoring
                                     support  compliance  efforts.
                                                to
                            a.   Reducing  sources of SOx  and  NOx  that lead to
                            acid deposition.   President Bush recommended that
                            annual emissions of sulfur cxides be reduced by 10
                            million tons per year,  whetsver number is finally
                            chosen,  an  acid  deposition  control  program  is
                            crucial  to coping  with criteria  air  pollutants.
                                                     67

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Although  acidic  rain  and  acid  aerosols  do  not
represent criteria pollutants per  se, their control
is   inextricably   intertwined  with   control   of
criteria pollutant*.

While a regulatory program would be established to
achieve the reduction mandated, it is important to
use  a  market mechanism  to drive 'actual  remedial
actions.   The  marketable  permit proposal  could
reduce  the costs  of a control  dramatically.   For
example, a 10 million ton per  year reduction in SO,
emissions will  cost about  S4  billion  annually if
marketable permits are used.  Under this proposal,
utilities  with  opportunities   to    reduce   502
emissions at low cost would reduce their emissions
more than is  required,  and would sell their credits
for  having  overcontrolled  to  utilities  facing
higher costs.  If,  however, an equivalent reduction
is  pursued  through  the  required  installation of
scrubbers at  coal-fired  power  plants,  the  annual
costs  of  the  program jumps  to  approximately M
billion.  Moreover, the marketable permit approach
provides incentives to utilities to find least cost
innovative control  technology  or other  measures
that would not exist if legislation were instead to
mandate  that  all   utilities  install  a  particular
control technology.

The  marketable  permit  approach,  however, must be
applied  carefully,  so  as  not to  allow  trading
between  sources which  affect  different  impacted
regions.

S.1.1   Use  marketable permits  to  lower  costs  and
spur innovation in reducing acid rain.   MI,  EP

b.   Reducing  volatile  organic  compounds.    The
Subcommittee considered  many  options  for reducing
emissions of  volatile  organic compounds  (VOCs).
The  Subcommittee  endorses  steps EPA  is examining,
such as volatility restrictions, on-board controls,
vapor  recovery nozzles  at  filling stations,  and
vapor recovery technology at re-filling operations.
The Subcommittee also looked at  other possible ways
to  reduce VOCs,  particularly  since  VOC  use  is
likely  to increase  with  population and per  capita
GNP growth.

One option available is a deposit/refund system or
tax on the VOC components in solvents.   Imposing a
front-end charge would create strong incentives for
users  of  solvents to find  substitutes,  to  reduce
use  and  to  find  recycling  possibilities.    To
encourage recycling,  no tax  or deposit would be
levied when recycled solvents are purchased.

Instead of or in addition to the front-end charge,
there might be  a  refund  for solvents returned for
recycling.   This  option would  be less onerous to
industry.    However,  it might  be  difficult  to
determine  the quality of  the  solvents  returned.
These  technical  issues must  be dealt  with  to
determine if this option is viable.

Regulation of volatile solvents in paints and other
products represents either  an independent option or
a supplement to the tax or deposit/refund system.

Finally, the Congress could mandate an across-the-
board  reduction in  the  VOC  content of  solvents,
using  a marketable  permit  system to  achieve  the
reduction cost-effectively.    This proposal would
have the same effect as a solvent tax, raising the
price  and  thus  creating  •  market  for  reducing
solvent use,  and establishing the  option to sell
rights to other companies.

S.1.2  Reduce VOC emissions through deposit-refund
programs,  taxes or marketable permits.   MI

c.  Pursue  pollution  prevention  efforts to assist
in   the   achievement   of  standards,   and  more
importantly,  to assure   their maintenance.   The
approaches  listed above for reducing VOC emissions
can help apply  pollution  prevention principles to
one class of  criteria air pollutants.   There are
numerous other pollution prevention approaches that
can be worthwhile.  Probably  the most significant
pollution prevention activity in the U.S. has been
the substantial  improvements  in  energy efficiency
over the past 17 years.   While GNP  has grown over
40 percent, energy use  has been  roughly constant.
The majority  of criteria  air  pollution emissions
result from combustion of fossil  fuels.  If energy
use had followed GNP growth, our pollution problems
would be much more severe.

Substantial  future  energy conservation potential
still  exists.     The  Subcommittee   focused  on
conservation  in only  two  sectors:   the  electric
utility  and  transportation  sectors.    Numerous
promising   pollution   prevention    and   energy
conservation strategies exist beyond several listed
below.

Electric utilities are responsible for most of the
SOx and NOx emissions,  and a  substantial fraction
of  particulate  emissions.    Rate  systems  for
utilities   encourage   expansion   and   penalize
conservation.     Even   during   a    period  when
incremental costs exceed  average costs, utilities
stand  to   return  more   to  investors  by  adding
capacity.    If  utilities  could  make  money  on
conservation  investments, or  at  least  not  lose
money, then they would  have  incentives to develop
conservation  programs,   such  as  installing  high
efficiency    equipment    at   their    customers'
facilities.

Some  states  have  developed  incentive  systems
designed    to   overcome   current   barriers   to
conservation  in utility  procedures.   The Federal
government,  at  modest cost,  could assure  that a
number  of   these  systems  are   demonstrated.
Conservation   incentive  rate   structures  could
potentially promote conservation  goals within the
industry, just  as  the Public  Utilities Regulatory
Policy Act (PURPA) has revolutionized  production by
independent power producers.

S.1.3   Alter  state  utility  rate structures  to
persuade utilities to sell conservation rather than
BTUS.  PP.  MI, EP

A  wide  variety  of   measures  to   improve  energy
efficiency  in the transportation sector could have
a  substantial  effect  in reducing   emissions  of
criteria    air   pollutants   from  vehicles   and
production  and marketing  of motor fuels.

      Improvements  in  fuel  efficiency  might  be
obtained  by  strengthening the  Corporate Average
Fuel Economy (CAFE) standards,  or by imposing a tax
on  purchase  of  fuel-inefficient  autos  (a  "gas
guzzler  tax").    Although these measures  would
reduce gasoline use,  they would have to be designed
carefully   to   reduce    criteria   air   pollutant
emissions from vehicles.  Since these  emissions are
                                                     68

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now   regulated  on   a  grams   per   mile  basis,
manufactures  mgy  use  less  effective  pollution
control equipment on  • more fuel efficient car and
achieve  no  improvement  in  emission  per  mile
relative  to a "gas guzzler".   To  the extent-, that
tighter CAFE  standards or  taxes  raise the purchase
cost of new cars, a countervailing effect may also
come into play -- older,  more polluting cars may be
kept  in use longer.   Policies to accelerate  fleet
turnover, such as the recent  offers by companies in
California  to purchase older cars and retire  them,
may  be  beneficial.   Other  means  of  improving
vehicle fuel  efficiency  would include measures to
smooth traffic flow and  reduce congestion.

     Measures to reduce the number of vehicle  miles
traveled could also be adopted:  car pooling, mass
transit alternatives,  better  land  -  use planning,
etc.

     Increasing the gasoline tax might be the most
desirable  of  all measures.   It would  provide an
incentive for purchasing more fuel efficient  cars;
for retiring  older, fuel-inefficient cars, and for
reducing vehicle miles travelled.

     Although unpopular,  a gasoline tax would  solve
many national problems at  once;  it  would:   create
a  strong   revenue  source,  reduce  the  negative
balance of  payments,  reduce  future  oil  prices and
energy   insecurity,    and  promote   environmental
improvement.   U.S. gasoline  taxes  are  among the
lowest of any developed country.  A gasoline tax of
50  cents  a  gallon  would  still result  in  U.S.
gasoline  prices  being  among  the  lowest   in the
world.  To reduce regressivity  a system could be
created to  rebate funds to the driving poor.

S.I.4  Reduce energy use in transportation through
a gasoline tax and tighter  CAFE standards.  PP, MI,
REGS, EP, TH, TAX

     Finally,  pollution   from the  transportation
sector might be prevented by modifying the engines,
vehicles,   or  fuels   used.    Alternative  fuels,
reformulated   gasoline,    or   electric   vehicles
represent  some  possibilities.   A substitute for
conventional  gasoline  is attractive,  assuming that
is does  not  add  to  global warming  or  jeopardize
energy security.  While  the  Subcommittee does not
express an  opinion on the  best  option,  some  steps
must clearly  be taken  to reduce VOC pollution from
automobile  fueling  and use  in  many areas  of the
country.    Electric  vehicles offer an interesting
option, but they would require substantial capital
investment  in  vehicles  and  fuel   distribution
infrastructure.

As a final  theme  in discussing pollution prevention
approaches  for  criteria  pollutants,  we  note that
efforts  to  speed  up  capital  turnover  broadly
throughout  manufacturing,  transportation,  housing
and  many  other  sectors  would  result  in  less
polluting,  less energy-using  facilities.   Federal
tax and fiscal policies  have  a substantial effect
on  the   rate  of  capital   replacement  through
provisions   for  capital   gains,   depreciation,
investment  tax credits,  tax  treatment of research
and development,  etc.    Policies  that  encourage
greater  investments   in  new  plant  and  equipment
would have positive environmental impacts.

d.  Research, development  and monitoring efforts.
Because criteria air pollutants are relatively well
understood, research and development  and monitoring
strategies  are  not as  attractive  as  for othe
environmental  problems  before  the  Subcommittee.
However,   accelerated   scientific   work   may  be
particularly warranted in two areas:

1.  Establishing more remotely sited air pollution
    monitors   for  ozone   and   its  precursors.
    Currently,  almost  all  air  pollution monitors
    are   located   in   more   highly   populated
    metropolitan areas.  As population centers grow
    in  heretofore  rural areas,   however,   it  is
    important to understand the pollution levels to
    which residents there are exposed.  This means
    more  diffusely  situated monitoring  devices.
    Such monitors  will  also help  provide  data on
    the actual  pollution levels  to which forests,
    agricultural  crops,  and visitors  to national
    parks are exposed.

5.1.5   Establish more  remote monitors  for ozone.
S&T

2.  Further  investigating  the  relative roles  of
    VOCs  and  NOx  in  ozone formation.    Recent
    evidence suggests a more  important role  for NOx
    than previously thought  in sow areas.  With
    major   VOC   sources  now   reasonably  well
    controlled  in  most  ozone nonattainment areas,
    very   expensive   or  intrusive     measures
    addressing  smaller  sources   are   now  under
    consideration  (e.g.  restrictions  on   use  of
    lighter   fluids   for    backyard  barbecues).
    Substantial  cost  and   inconvenience  may  be
    avoided  if   control  of  NOx  emissions  can
    substitute  for this next  generation   of  VOC
    controls in some areas.

    The research  should  attempt  to identify areas
    where  VOC   control  alone  is  most  effective,
    where  NOx  control   is   effective,  and where
    control of both is  necessary.

    If  research  does  suggest  substantial  ozone
    reduction   benefits   from    NOx    controls,
    developing and disseminating  information on NOx
    control techniques  will  be essential.

S.I.6   Further investigate   the  relative  roles of
VOCs and NOx in ozone formation.   SAT

e.    Note  that  many  of  these  approaches  for
mitigating  problems from criteria  air pollutants
would  provide   substantial   benefits   for  other
environmental    problems   considered   by   the
Subcommittee.   Energy  conservation,  for  example,
will reduce the problems associated with toxic air
pollutants and global warming.  As  another example,
reduction on volatile solvents in paints and other
products will cut air toxics emissions and  improve
indoor air quality.

References

USOOC,  U.S. Department  of  Commerce,  Bureau  of
Economic  Analysis  (1988),   Survey  of    Current
Business, May 1983.

USEPA, U.S.  Environmental Protection Agency  (1990),
National Atr Quality and Emissions Trends   Report,
1988,  EPA-450U-90-002,  Office  of  Air  Quality,
Planning and Standards, Research Triangle Park, NC
27711.
                                                     69

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A.2  Toxic Air Pollutant*

There are hundreds or  even thousands of chemicals
that may occur in concentrations in air sufficient
to  cause adverse  human  health effects.    Hunan
exposure  is  generally  to  a  mixture  of  these
chemicals.     Many    different   health   effects
(carcinogenic  and  noncarcinogenic) may  occur  and
various    susceptible    or   highly    exposed
subpopulations (e.g., children, elderly) may be at
greater than average risk.
A.2.1  Risk Background

The  control  program for criteria  air pollutants,
particularly volatile organic compound* (VOCs), has
reduced emissions of many air toxics substantially.
However, urban air is characterized by the presence
of  numerous  chemical  substance*  that  may  pose
significant  risk  for city dwellers.   The present
air toxics data base is inadequate to characterize
accurately   current   exposures,   risks,   and  the
sources  of  risks.    The  most  recent  scientific
assessments conclude that:

a)  air  toxics  are  probably  not  responsible for a
significant  proportion  of  the  national  cancer
incidence;

b)   insufficient toxicity data  and  lack  of  more
accurate information on real  human exposure prevent
reliable   estimates  of   the  exposure   levels,
potential health effects and risk from air toxics;
and

c)  the current  cancer risk assessment methods used
by EPA  have shortcomings with regard to evaluating
complex  mixture*  that are particularly important
for air toxics.

Significant sources of air toxics include:

a)     mobile  sources   through   fuel  combustion
(gasoline  and    diesel   -   PAHs,  benzene,  1-,3-
butadiene, fine particles),

b)    use  of solvents  by  industry,  commercial,
businesses,  and consumers (electronics industry,
dry  cleaning,  paints,  cleaning    products  and
personal products),

c)   combustion  of fuels  and  use  of a wide variety
of toxic chemicals in industrial processes.

Although   present  data   are  highly  uncertain,
estimates  suggest that  mobile source*, including
the secondary formation of  formaldehyde, contribute
approximately 58 percent, and stationary source*
approximately  42  percent,  of   the   total  annual
cancer  incidence due to  air  toxics.    The  same
preliminary  estimate* indicate that  are* source*
are  responsible for approximately 80 percent and
point  sources  20 percent,  of  the  total  annual
incidence associated with high outdoor exposure to
air  toxics.

It  is sometimes difficult to  distinguish between
point   and   area  sources  of  air  toxics.    The
following source categories  can b* considered are*
sources:   motor vehicle*, treatment,  storage and
disposal  facilities (TSOFs), woodsmoke, asbesto*.
demolition and renovation, gasoline marketing, coal
and  oil  combustion  (residential  only),  solvent
use/degreasing, publicly owned treatment works, dry
cleaning,  pesticide  usage,   chlorinated  drinkirv
water,  paint stripping, and benzene fugitives.

A major  review by  EPA (1989)  of studies examining
the sources and risks  from air toxics has concluded
that of the approximately 90 pollutants evaluated,
12 accounted for  over  90X of total estimated annual
cancer incidence for the chemical group.  Of these,
a poorly defined category-products  of incomplete
combustion (PlCs)-were responsible  for  about 3SX of
the  calculated  total.   Other  major  contributors
included   1,  3-butadiene,   hexaval«nt  chromium,
benzene, formaldehyde, and chloroform.

Unfortunately, these  risk estimates  suffer from a
high   level   of   uncertainty   in   assessing   the
carcinogenic potency (unit risk) and the real human
exposure to  air  toxics.   Two  recent  EPA studies
have investigated personal  exposures during common
activities   in  various  microenvironments   and
identified certain  consumer  products  or  personal
activities  (such  as  wood-staining and  painting,
visits to beauty  shops and autobody shop*, etc.) as
source*   of   VOC   exposure*   that    far   exceed
simultaneously  measured  outdoor  concentrations,
even   in   chemical  manufacturing   and  petroleum
refining  area*.    Thus  the  present   emphasis  on
outdoor  concentrations of  air  toxics  --  both in
assessing  risks and in controlling source* -- may
be inappropriate.
                                                          A.2.2  Policy Background

                                                          To  date  EPA  and  state  agency  strategies have
                                                          focused on regulating one  toxic  air pollutant at a
                                                          time.   This method ha*  proved slow,  ineffective,
                                                          and  costly,  and  it may be  ignoring synergistic
                                                          effect*  of  pollutants.    This approach  may also
                                                          result in substitution of unregulated pollutants  in
                                                          the course of  controlling  the few pollutants that
                                                          are regulated.

                                                          Title 3 of the Superfund Amendments Reauthorization
                                                          Act (SARA) provided the public with  its first look
                                                          at the air toxics  emission* from  industrial source*
                                                          in their  geographical  area.  Public disclosure of
                                                          this information galvanized a number of group* into
                                                          challenging  industries  in their  areas  to  reduce
                                                          their us* of  toxic  compounds.   It also appears  to
                                                          have  induced  some  corporate managers  to  reduce
                                                          their emissions voluntarily.

                                                          State*  began  to  establish  program* to control
                                                          sources  of  air toxics in  the early  1980* without
                                                          guidance  from EPA.   A*  •  result,  a multitude  of
                                                          program*  have been developed  each  of  which look  at
                                                          compound* and structure  regulation*  differently.
                                                          States and the USEPA are just now beginning to look
                                                          at  multi-exposure pathway* fro*  air toxics from
                                                          stationary sources.

                                                          EPA and  the states  have been active  in exchanging
                                                          information  on air  toxics.   The USEPA  ha* been
                                                          improving technology transfer to state* and sources
                                                          through  the  National  Air Toxic* Clearinghouse and
                                                          the computer data base Air Risk Information Support
                                                          Center (AIRISK).  The Control Technology Center has
                                                          also been instrumental in providing State  and local
                                                          agencies  with  critical technical assistance.

                                                          Congressional  revision*  to the Clean Air  Act (CAA)
                                                     70

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regarding  air  toxics  have looked  at technology-
based  controls  followed  by   a  determination  of
residual   risk" through   risk   assessments  and
decisions  regarding  additional   controls  on  all
sources.  This approach involves identification of
a   list   of   hazardous   air   pollutants   and
determination of controls for all major stationary
sources emitting these pollutants without regard to
their potential  risks.   Air toxics emissions from
mobile sources are  addressed  by several measures.
These  are   provisions  for  specific  additional
reductions  in  mobile  source  VOCs  and  toxics,  as
well as  for the use of clean fuels.   Additional
research   will   be  needed   to   implement  these
provisions.  Studies of specific  problems (e.g. air
deposition of toxics to the Great Lakes,  solvents
in consumer products, urban soup) are also included
in the proposed amendments.

Since  gasoline  and diesel  combustion are  major
sources of airborne toxics,  interest in alternative
fuels and reformulated gasoline has led to changes
in fuel combustion  in mobile sources.  The oil and
auto industries have formed a research organization
that will spend more than $10 million by the end of
1990 researching reformulated gasoline and  other
alternative fuels.   Vehicle manufactures and energy
suppliers are gearing  up to provide fuels such as
methanol   and   compressed   natural    gas   and
demonstration fleets of vehicles  that can use these
fuels to evaluate their potential over the next 3-5
years.   Also,  California  has  a major  program to
promote the use of clean fuels  throughout the state
in the next 10 to 20 years.

Considering air  toxics as   a discrete  problem may
not be  the  most effective way  to address  these
compounds.   Most of  the reduction in  air toxics
emissions to date has probably occurred as a result
of  control  technologies  installed primarily  to
abate emissions  of  criteria  air  pollutants from
industrial and mobile sources.  In  the future, many
air toxics problems could effectively be addressed
by strategy options  in other areas being suggested
by  this Subcommittee.   For   example,  strategies
being  developed  to  control   volatile   organic
compounds  and  ozone will  also  control air  toxic
compounds of concern.  Second, energy conservation
measures  that   will  reduce  the  amount  of  fuel
combusted  for  mobile and  stationary  sources will
also reduce the amounts of  PAHs,  benzene and other
products of  incomplete  combustion which  are  air
toxics of concern.
A.2.3  Possible Strategy Options

The Risk Reduction Subcommittee has considered four
broad classes of strategy options  that could reduce
risks  of  exposure  to air  toxics.   They overlap
substantially  with the  strategy options already
cited  for  criteria  air  pollutants.     Numerous
strategies  in addition  to  those cited  below are
undoubtedly also attractive.

a.  Reducing   the   amount  of   fuel   consumed  in
transportation.     Market  incentives   could  be
developed to encourage consumers to use convenient
and   inexpensive  public   transportation  as  an
alternative to driving their cars to work each day
and  using  them to  run  errands.   A  number  of
strategies  can  be designed  to  reduce  the  fuel
consumed  per  mile  travelled  or to  reduce  the
pollution produced  per mile by changing the fuel.
These  strategies often  require cooperation among
agencies  involved  in  land  use  planning.    For
example one  goal  could be to increase the densr,
of  suburban  areas.    This  serves to  reduce  the
distance travelled  to work or play.  In addition,
transportation  planning  should support modes of
travel  that  are  more   energy efficient.    for
example, moving goods by rail travel is more energy
efficient than  by truck travel.   These strategies
are expensive,  but dependable,  and have multiple
benefits besides decreasing exposure to air toxics.

Mobile source strategies  could include incentives
aimed  at  reducing  the  number  of vehicle  miles
traveled  (VMT)  and  increasing   fleet  turnover.
Reducing   each   automobile's    VMT    could   be
accomplished  through  improved  transportation  and
land use planning,  employee and  employer incentives
for  carpooling,  and  high  -  occupancy  vehicle
strategies    like   vanpools.       In   addition,
restrictions on parking  in high density areas  and
increased parking  fees,  combined  with  changes in
the tax  structure,  could decrease the  amount of
time people  travel in  single  occupant vehicles.  An
increase in vehicle engine efficiency would reduce
the amount of energy used to power a  vehicle  per
mile and,  therefore, reduce the emissions produced
per  mile.     Other mechanism*   that  need  to  be
investigated  include  high speed railways in urban
corridors like that between Boston  and Washington.
Such trains  could  reduce  air pollution by keeping
many low-occupancy vehicles off the road.

     There is mounting  evidence that  half  or more
of mobile source  emissions of  VOCs and air toxics
coma  from  a  small  fraction  of highly  emitting,
mostly older vehicles that are  improperly tuned or
have been tampered with.  Mechanisms or incentives
to  identify  and  remove  these  vehicles  should be
applied.

S.2.1  Reduce auto emissions by reducing vehicle
miles travelled  through  better  land use planning,
car pooling,  and mass  transit  alternatives.  PP,
INFO, EP,  TH

b. Demonstrating the uses and feasibility of clean
fuels and alternative fuels (other  than hydrocarbon
based) in vehicles.   This  would include improved
formulations for  gasoline that  are less toxic  and
reactive,  as well as non-gasoline based fuels.  Any
discussion of conventional and/or alternative fuels
should review the entire production process for the
new fuels.   That is, the  risks  associated with the
entire life  of  the fuel,  from production through
use, must be investigated.   Modeling of  the  air
quality improvements expected from these new fuels
as  well as  an  estimate  of the  reduction  in risk
from exposure to  toxic  compounds would have to be
investigated in isolated air basins, as well as in
transport corridors.   For example, the potential
exists for increases  in ambient formaldehyde as a
result of  increased  use  of alcohol  based fuels.
Efforts are  underway  in California and at federal
laboratories  (both  environmental  and  energy labs)
to  investigate  these  issues.   The  estimated costs
to produce and distribute these fuels range from a
few cents per gallon  above the current  price of
gasoline  to  as much  as  25-30 cents  above  the
current price.    The  dependability is  uncertain,
given the above  concerns  about  the production and
distribution of  the  fuels.   In addition, consumer
acceptance of new fuels is untested and will depend
heavily on availability and ease of use.
                                                     71

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S.2.1  Promote the  use of  clean  and  alternative
fuels in cars and-trucks.   PP, REGS, EP, TH

c.    Requiring  process  audits  at  manufacturing
plants.  This would include  a comprehensive look at
a manufacturer's  process  and periodic  reviews to
target the sources of  air toxics  in a manufacturing
setting.  Audits  offer a mechanism different from
technology-based  control  standards, which take  a
long time to  put  in place  and actually implement.
Audits  require  manufacturers  to  inspect  their
processes  in an  integrated  fashion to  identify
places where substitutes could be made for a  toxic
chemical, points where chemicals could be recycled
and reused,  and places where the use of a specific
chemical could be  reduced.  These audits can also
be  viewed  as compliance  as  well  as  a  process
audits.  An audit can be a mechanism  for finding
sources  of  fugitive  emissions,  such as  leaks In
piping, that are often contributors to air toxics.
Doing energy  and  material balances for  a specific
chemical allows  manufacturers  to discover where and
when a  chemical  is released to  the atmosphere or
other media.  A process audit  is an excellent way
to  find locations  in a  production  facility from
which  toxics are escaping.   The audit  enables
manufacturers to  reduce their  releases  of  toxic
chemicals, provides opportunities for the* to save
money through reduced use of  toxic chemicals, can
improve  their  company's  community relations  by
demonstrating improved process control  and reduced
consumption and release of toxic compounds, and can
save  their  firm  the  cost  of  disposing  of  toxic
compounds.

S.2.3   Require  process audits of manufacturers to
find  fugitive  sources  of  pollution,   leaks  in
piping, and other preventable releases.  PP, ENF

d.    Reducing  the  use  of  solvents  in  consumer
products  (paints,  cleaners,   personal  products)
through  regulations  and  demonstration  projects.
Several states are already promulgating regulations
to  reduce  the solvent content  of  paints.   Other
states  are  looking at  regulation* to  reduce the
solvent content in other home use products, such as
deodorants  and  hairsprays.    These measures  may
reduce  an  individual's exposure to  air  toxics at
home  and   work.      This   strategy can  cost  -
effectively  reduce exposures,   when compared to
technology-based    controls   on    manufacturing
facilities.  The strategy is very dependable since
a product is redesigned and  the toxic in dispute is
no  longer used  in the formulation of the product.
These  goals  might   be  achieved  through  direct
federal  regulations of products  under  TSCA,  cr by
supporting   and   publicizing   successful   state
efforts.

S.2.4  Reduce use of solvents  in consumer products.
PP, INFO, REGS

References

USEPA,  Cancer Risk From  Outdoor  Exposure to Air
Toxics,   Office  of   Air   Quality  Planing  and
Standards,  External Review  Draft,  October 1989, 2
volumes.

USEPA, The Air Toxics  Problem in  the United States:
An Analysis of Cancer  Risks  for Selected Pollutants
(the Six Month Study), Office of  Air and Radiation,
EPA 450/1-85-001, May 1985.
A.3  Radon
A.3.1  Risk Background

Radon is a radioactive gas produced by the natural
decay of radium.   It  occurs naturally  in most soils
and  rocks and  can  migrate  from  them   into  the
ambient  air.   Radon  can enter  buildings through
cracks or other openings in foundations or through
release from water in showers, washers, tubs, etc.,
and accumulate to levels which cause a significant
risk  to human health.   Studies of  thousands of
underground  uranium  and other  miners have  found
that  long-term exposure  to elevated levels of the
natural decay products of radon causes lung cancer.
Federal  and  state  surveys  of  homes  since  1985
indicate that  a  substantial number of  homes  have
significantly elevated radon levels (See Table 1).
Approximately 4.4 million of the 59 million single
family homes  (7.5X) are  estimated to  have average
radon  levels  which  exceed  4  pCi/L  (Puskin  and
Nelson,  1989).   Based   on  risk models  of  the
National Academy  of  Sciences  (BEIR  IV  Committee)
(MAS,  1988)   and the  International Commission on
Radiological Protection (ICRP 50 Committee) (ICRP,
1987), exposure to radon  at  4 pCi/L over a lifetime
can cause one of every 200 people to die from lung
cancer.  Based on the distribution of radon levels
in homes  indicated  in Table  1,  EPA  projects that
exposure to  radon is  causing  from 5,000 to 20,000
lung cancer  deaths per year and may be the second
leading  cause  of  lung  cancer  after  cigarette
smoking.  EPA has established a level of 4 pCi/L as
the  level above  which building owners should take
action to reduce exposure to radon.

Table 1.  Distribution of Houses and Radon-Induced
Lung   Cancer   Risk   With   Respect   to   Radon
Concentration.  The estimated values are based
on  the  lognormal  distribution  of  radon  levels
estimated by Nero et. al.
                      Radon         Percent of
Radon     Portion     Level  in     Risk Associated
Level X   of Houses   Houses Above  with Houses
(pCi/L)   Above X     X (pCi/L)     Above X
               no
             x10g
                        1.5

          4.6X10"1       2.7

          2.2x10"1       4.2

          7.4x10"2       7.0

          9.7x10"3      15

 20       1.3x10"3      28

 50       4.8x10"5      65

100       2.4x10"6    130
 0

 1

 2

 4

10
100

 82

 60

 33

  9

  2

  0.2

   0.01
A.3.2  Policy Background

The current EPA and state programs for reduction of
risk from indoor radon are oriented toward reducing
exposure   to  radon  in  existing  buildings   and
preventing exposure in new buildings.  The approach
is  to inform the public  of the potential  hazards
                                                      72

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and   provide  cooperative   technical   assistance
through  state and  Federal  governmental  agencies
with  the  hope 'that  building  owners  will  act
voluntarily  to reduce  exposure to radon.   Quality
control  programs for  air  testing  and  analysis,
research and demonstration of techniques for radon
mitigation    and    risk    communication,    and
epidemiological  studies of  homeowners are  being
actively  implemented.     EPA  is  working  on  the
development  of building  codes  to prevent elevated
radon  levels  in  new buildings.   These efforts are
being  publicized as part of an  active EPA public
awareness program.

Elevated radon levels have been found primarily in
single  family homes.   Elevated,  multiple family
structures   usually   have  low  radon   levels.
Monitoring  to date indicates  that  there is  no
simple  way to characterize  which homes may  have
elevated  radon levels based on  location.   Radon
levels vary  dramatically from  house  to house  in a
given neighborhood and elevated radon levels occur
in areas which are  not considered high risk areas
based on soil/geology criteria.   Basements of homes
have the highest levels;  higher floors usually have
levels 2-4  times lower.   The  only certain way to
determine  the  radon risk in each  home  is  to  test
the air quality in the home.  A nationwide program
of radon  testing in all 59  million  single family
homes would cost approximately SI billion.

There  is a  great  deal  of attention being given to
reducing  the EPA guideline  for  mitigation action
from 4 pCi/L  to  2 pCi/L.  EPA  estimates that  most
of the population cancer  risk is from  the  large
number of  people who  live  in  homes with  a  radon
level which is between 0 and 4 pCi/L.  If all homes
greater than 4  pCi/L were brought to  2  pCi/L,  an
estimated 7,000 excess  cancer deaths  per year could
be eliminated.   This  could  be done at a  cost  of
S2.7 to $5.4 billion ($300,000 - $600,000 per life
saved;  a  very  low  cost relative  to many  other
environmental  programs).   The  2  pCi/L level  is
achievable  in 75X  of  the .homes  through  subs lab
ventilation which costs about $1,500  per home (Oge,
1990).•  If  all  homes  greater  than  2 pCi/L  were
brought  to  2  pCi/L another 2,000  excess  cancer
deaths could be eliminated.

Despite EPA  and state public  awareness  programs,
only 5X of the nation's homes have been tested for
radon and  less than 3X of those with levels above
4 pCi/L have taken action to reduce radon exposure
(Oge,  1990).   A major  issue  for EPA  is  public
motivation for testing and  mitigating  action.   In
several states,  commercial  financial  lenders  and
potential  homebuyers  are  requiring testing  and
mitigation  before  the  sale  of  existing  homes.
Public  assurance  that  radon   mitigation   work
performed by contractors will be effective and done
properly is also a major issue for EPA.

A  recent  national  survey by  EPA of  130  schools
found that SOX of the schools had at  least one room
with a radon concentration  exceeding 4 pCi/L.   Of
the 3000 rooms tested  in the program, 20X exceeded
the action level.   The  survey is too  limited  in
scope  to  make  any  national  projections  on  the
magnitude  of the exposure  in  school  buildings.
However, EPA  is  concerned about  the potential  for
significant  radon   exposure  in  schools.     The
exposure  is  involuntary; the  size of the school
population is large; children  spend  4-7 hours per
day,  five days per week in school;  and children are
being exposed  to a carcinogenic substance at very
early ages.

The current EPA program for radon risk  reduction  is
largely  conducted  separately  from programs  for
other indoor  air pollution problems.   Indoor air
pollution  from tobacco smoke, household chemicals
and   building   materials   (e.g.,   asbestos  and
formaldehyde)  has  been estimated by EPA  to cause
5000 - 8000 cancer deaths  per year  (USEPA,  1989).
Should the EPA program of public  awareness, action,
and exposure  prevention in new  buildings address
other indoor  air  pollutant problems concurrently
with  radon?   Many  of  the  strategy   options  we
discuss below  will  abate  problems associated with
other indoor air pollutants in addition to radon.
A.3.3  Possible Strategy Potions

The   Subcommittee   views   indoor   radon   as   an
environmental problem causing serious health risks
that  may  be   mitigated  quite  cost-effectively
through expenditures by individual homeowners.  The
primary  role for  EPA  should be  to  ensure that
homeowners know and understand these risks, and to
facilitate remedial actions by individuals choosing
to undertake them.

To date, the public appears surprisingly apathetic
about the  health  risks of  radon (Cothern,  1990).
Some  examples  of  public  reaction  to  radon are:
reluctance to mitigate the problem,  forgetting to
put out  the  testing device, hesitance to purchase
a testing device,  suspicion about the testing firms
viability or competence, failing to relate housing
prices  and  high   radon  levels, and   minimal  and
decreasing interest  in services like  testing  and
mitigation.    As   the  result   of   an  intensive
information  campaign  in  Washington,  O.C.,  over
100,000  test kits  were purchased.   However, only
about 1.2X of those  with  levels over  4 pCi/L have
taken convincing   remedial  action (Doyle  et.al.,
1990).    Despite  an  aggressive  EPA  nationwide
program and state public awareness programs only 5X
of  the  nation's homes have been tested for radon
and less than 3X of those with levels above 4 pCi/L
have  taken action  to  reduce  radon  exposure (Oge,
1990).  There have even been articles in newspapers
suggesting  that  the  problem  is  not nearly  as
serious  as many scientists feel  it  is (Washington
Times,  1989  sib).    A  recent  survey by the Roper
organization shows that concern  regarding radon has
decreased 4X in the last year  while the concern for
most  environmental  problems has increased (Roper,
1990).

a.    Information  for  home  owners   at  time  of
transfer.  A first strategy option  might focus on
making  homeowners  more aware of the  radon  levels
that  exist  in  their  homes.    Testing  for  radon
levels  might be  required  at the  time at  which
properties  are transferred,  just  as homes  are
typically inspected now for termites prior  to sale.
If  high radon  levels  were found,  the  buyer  and
seller   could   negotiate   various   possibilities,
including  remediation  paid for  by  the  seller,  a
lower sale price,  etc.

EPA could  work  with other  federal  agencies (HUD,
Treasury, VA) to make radon testing and disclosure
mandatory for government  financed  mortgages (FHA,
VA,  Fannie Mae.  Ginnie Mae, Freddie  Mac).   EPA
could work with  states and local governments  and
                                                     73

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private   tending   institutions  to   extend  this
requirement to all mortgages or to all home sales.
Several   states^ have   already   adopted   such
requirements.

5.3.1   Ensure  that  homeowners understand  radon
risks  by  requiring testing before  properties  can
change hands.  INFO, MI, TH

b.  Improved radon communications program.  Knowing
the radon  level*  that prevail  in  tht hoot is only
the  first  step  toward  a  homeowner  making  an
informed  decision  about   a   course  of  action.
Homeowners must also  know  what these radon levels
mean in terms of  risk.   Better  decisions would also
result with more confidence in the accuracy of the
radon  testing,   and  assurance  that  any  radon
mitigation work  undertaken wilt be  done properly
and effective.  EPA has efforts under way already
in some of these  areas.   Perhaps the most immediate
need  is  to improve risk communication.   We  have
little   solid   understanding   of   which   risk
communication techniques are  effective  and which
are  not.    More   research  in  this  area  would  be
profitable.

S.3.2   Improve  techniques  of  communicating radon
risks so public can make informed decisions.  S4T,
INFO

c.    Regulate testing  and  remedial  actions  for
schools  and  other  public   buildings.     While
homeowners can  be  left  to decide  for  themselves
whether to mitigate  a   radon  problem  they  find,
owners of schools or other public buildings should
be  required  to  mitigate any  problems  they find.
Exposure  to  radon in  schools and  other  public
buildings    is    involuntary   and   potentially
significant.   EPA  should  establish  a  regulatory
program for mandatory testing  for  and remediation
of  radon  levels  in primary and secondary schools.
If  national surveys demonstrate problems in other
public  buildings  the   requirement   should   be
established for them also.

5.3.3   Require  radon inspections  for schools  and
certain other buildings.  REGS, TH

d.
    Standards for^airftow and radon protection for
new buildings.Mitigation of high radon levels in
                                        IKS
	                          i le
existing buildings can be  costly.   It is far less
costly to build a new  home correctly in the first
place.  EPA might seek  to  have federal, state and
local building  codes  require new homes and other
buildings to  be built  in  a manner  which  reduces
exposure to ail indoor pollutants including radon.
Requirement of  vapor  barriers  for  radon (average
cost of S300 per home), proper building ventilation
and  careful  choice  in building  materials  will
result in a large reduction in future health risks
from  indoor  air  pollution.   This  focus   on  new
construction  could  eventually  yield  impressive
benefits.  It is estimated that 40X of the housing
by the year 2020 will have been built after 1990.

S.3.4    Establish  airflow and radon  protection
standards for new buildings.  REGS, TH
e.   Increase scientific understanding of exposure
patterns,  epidemiology,  and mitigation techniques
for  radonTFinally,  our scientific understanding
ofradon  problems  might be improved  in several
ways.     we  need  to   understand  better  which
subpopulations are  at  greatest  risk and how radon
exposure affects them, in order to develop a cost-
effective  national  strategy.    Further  surveys to
characterize the magnitude, extent and duration o'
population exposure in homes and schools should be
performed.  Additional  epidemiologies!  studies to
provide more  information on the magnitude  of the
health  risk  among building  dwellers  should  be
conducted.      Research    and   demonstration   on
prevention   and   mitigation   techniques,   with
particular  emphasis  on  passive/low  maintenance
technology, should be expanded.

S.3.5  Increase knowledge base for radon, including
exposure  patterns,  epidemiology,  and  mitigation
techniques.  S&T

References

Cothern,  C.  Richard,  Widespread Apathy  and  the
Public's  Reaction  to  Information  Concerning  the
Health Effects of  Indoor Radon  Concentrations, in
Toxicology and Industrial Health, Volume 613, 1990.

Doyle,  J.K.,  et.  al.  (1990).    An  evaluation of
Strategies    for    Promoting   Effective    Radon
Mitigation.    Office  of   Policy,   Planning  and
Evaluation, U.S. Environmental  Protection Agency,
Washington, D.C.

ICRP, "Lung Cancer  Risk  from  Indoor Exposures to
Radon    Daughters,    ICRP    Publication    50",
International    Commission    on     Radiological
Protection, Pergamon Press, Oxford,  U.K.,  1987.

MAS.  "Health  Risk of Radon and Other Internally
Deposited Alpha-Emitters:BEIR IV, National Academy
of  Sciences,  National  Academy  Press, Washington,
DC, 1988.

Oge, M.  U.S.E.P.A,  Office  of  Radiation Programs,
Personal Communication, February,  1990.

Puskin,  J.S. and Nelson,  C.B., "E.P.A's Perspective
on Risks  from  Residential  Radon Exposure",  JAPCA.
Vol. 39, No. 7, July 1989,  pp.  91S-920.

USEPA, Report  to Congress  on  Indoor Air  Quality,
Volume  2,  Assessment  and   Control  of  Indoor  Air
Pollution,  Office of  Air  and Radiation,  August
1989, Chapter 4.

Washington Times, Radon terrorism unleashed by EPA?
June 29. 1989a, p F1.

Washington Times, Scare tactics  on radon.  November
2, 1989b, p F1.
                                                          A-4  Indoor Air Pollution

                                                          A.4.1  Risk Background

                                                          In the past few years, a growing body of scientific
                                                          evidence  has  begun to  show  that air within homes
                                                          and other buildings can be more seriously polluted
                                                          than  outdoor  air in  even  the largest  and most
                                                          industrialized cities.   Studies of  where  people
                                                          spend  their time  have indicated that  they spend
                                                          roughly  90X of their  time  indoors  (USEPA,  1988).
                                                          Thus, for most of  the people most of  the time,  the
                                                          health risk due to exposure to air pollution may be
                                                          greater  due to  indoor  exposure than that  due to
                                                          outdoor  exposure.   Besides homes, other buildings
                                                          that  exhibit  indoor  air problems  include  public
                                                     74

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buiMings, schools  and office  buildings.   Indoor
air problems  in factories  are  normalty addressed
differently,  as Occupational exposures.

In addition,  people who may be exposed to indoor
air pollutants, especially  those exposed for long
times,  are often  those most  susceptible  to the
adverse effects involved.  Such group*  include the
very  young,  the elderly and  the chronically ill,
especially  those  suffering  from respiratory  or
cardiovascular disease.

Of all the potential indoor  air  contaminants, radon
appears   to   lead   to   the  largest   number  of
fatalities.  It is for this reason that indoor air
radon  is  discussed in a separate category in the
current study.  Environmental tobacco smoke may be
the  second most  important  contaminant  in indoor
air,  leading  to as many as  5000 lung cancer deaths
annually (Repace, 1985).

Potential  biological   contaminants   can  pervade
indoor  air including  bacteria, mold  and  mildew,
viruses,  animal  dander and cat saliva,  mites,
cockroaches,   and   pollen.     These  can  trigger
allergic  reactions,  including  hypersensitivity,
pneujnonitis,  allergic  rhinitis,  and  sow types of
asthma.  Some transmit  infectious illnesses such as
influenza, measles, chicken pox, and Legionella.

In addition to  environmental  tobacco smoke, other
sources  of combustion  products  include  invented
kerosene  and  gas  heaters,   fireplaces,  and  gas
stoves.  The  major  pollutants released from these
sources are carbon monoxide, nitrogen dioxide, and
particulates.   These can cause  fatigue in healthy
people; chest  pain in people with heart disease;
eye,  nose, and  throat  irritation; and  respiratory
infections and bronchitis (USEPA, 1988).

Other  indoor  contaminants  include organic gases,
formaldehyde,   pesticides,   asbestos,   and  lead.
These  may derive  from building products  (e.g.
plywood,  insulation,  paint),  consumer  products
(e.g.  cleaners,  hairspray); and  elsewhere.   Some
surveys provide a more  extensive list of indoor air
contaminants and problems (NRC. 1981,  USEPA,  1988
and Nero, 1988).

Because  indoor  air  is  a relatively  new research
area,  gaps in our knowledge exist and plans have
been developed to provide this missing  information
(USEPA, 1987).
A.4.2  Policy Background

It  is  often  commented  that  the  Environmental
Protection  Agency  does  not  have  the  necessary
authority  to  regulate  indoor  air  contaminants.
However, through such Acts as the Toxic Substances
Control  Act   (TSCA),   the  Federal  Insecticide.
Fungicide  and  Rodenticide Act  (FIFRA)  and  the
Superfund Amendments Reauthorization act (SARA) the
Agency   is    already   regulating    indoor   air
contaminants.  For example, SARA Title IV requires
the USEPA  to establish a  committee to coordinate
Federal  indoor  air   quality  activities.     The
committee  attempts  to allocate the total  Federal
budget  for   indoor  air  to  specific  problems
according to the relative risk associated with each
problem.  The Agency is also involved in monitoring
activities such  as  the Total  Exposure Assessment
Methodology   (TEAM)   study.     Although   further
authority may be  needed and may be provided, some
already exists in this area.

Areas   in   which   indoor   pollutants   have  been
regulated include asbestos  in schools and smoking
in  public  places.    A major  study  from  Johns
Hopkins,  Yale,  and  other   institutions  recently
concluded that the  available data do not indicate
that asbestos associated lung cancer or functional
impairments can occur as a  result  of  exposure to
concentrations  of   airborne  asbestos   in  many
buildings. (Mossman et al,  1990)  On the contrary,
health  risks  may  be generated  when  asbestos  is
released  during  the  removal process.   Within  a
year, the USEPA  will likely propose  a regulation
for radon in the drinking  water  source.   Some new
proposed  regulations  that  affect   the   indoor
environment include the recent proposal concerning
lead at  the  tap;  such  regulations  are important,
since some of  the major  sources  are  in the home
itself.

Another area that  could be  regulated  is  the home
use  of  various pesticides   like  termiticides  and
wood preservatives.

The effort to make  homes  and other buildings more
energy  efficient   by  tightening  the*  up  has
heightened concern  over indoor air pollutants  in
recent years.   This  seaI ing-up of buildings  has
lowered the  rate  of  exchange between  indoor  and
outdoor air,  which has led to higher concentrations
of contaminants indoors.  The air exchange rate is
one of the most important variables in determining
the concentration of  indoor air contaminants (NRC,
1981).  Recent  policy analysis from  the National
Research Council  suggests  that energy management
strategies that could lead  to reduction in indoor
air quality should be weighed against the potential
reduction in productivity  that  could  result (NRC,
1987).
A.4.3  Possible Strategy Options

a.   Educate  state  and  local  governments  about
existing  technical   information   on  indoor  air
pollution.   One  of  the  strategy options  in  the
indoor air area is the general concept of providing
information  to  state  and  local  governments  to
stimulate  their  involvement  in  addressing  the
problem.   There are  several  ways  to do  this,
including dissemination of information that can be
used   to  educate   the   public,   training   of
environmental   personnel,   providing   technical
assistance,  and  providing  a  clearinghouse  for
information.

Because  of  the  many different contaminants  that
contribute to indoor  air contamination,  the task of
developing  information  resources  is  large  and
complex.   This  effort would  involve  developing
information  in  areas  where  research  is  needed,
collecting existing information, and packaging the
information  in   pamphlets,   books,   papers,  and
reports suitable for a wide variety of audiences.

Although providing  information to such  a diverse
audience is a  complex task,  it is of  low cost to
both EPA  and society.   Currently the  Indoor  Air
Division budget  is $1.3 M,  of which approximately
1/2  is  for direct  dissemination  of  information.
Past efforts  to provide  information have been shown
to  be  dependable  and  quick  in  transferring  the
                                                     75

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needed information to those who  can  use it.   This
is an immediately implementable strategy.

S.4.1   Provide statt  and local  governments  with
technical  information to  help the* address indoor
air pollution. SIT, INFO

b.    Cooperate with  other   Federal  Agencies  to
regulate indoor air.    Another strategy option is
for EPA to cooperate with  other Federal Agencies to
identify high risk sources and pollutants, in order
to pool  authorities  to  control  them and  provide
more complete  information.

A number of other Federal Agencies are involved in
the area of indoor air,  including the Department of
Energy, the Consumer Product Safety Commission, the
Department of  Housing  and Urban  Development,  and
the  Department   of  Health   and  Human  Service*
(including the Center for Disease  Control  and the
National  Institute  of  Occupational  Safety  and
Health).  Cooperation with these and other Federal
Agencies can  lead to cost efficiencies,  increased
speed  in  dealing  with  the problem,  and can  also
lead to a more dependable solution.

S.4.2    Work  with  other  agencies  to  regulate
products that cause indoor air problems.  PP,  INFO,
REGS

c.   Establishment  of  ventilation standards  and
practices  for new  and exising  homes.    A  final
strategy   option   is   a  more   active   Federal
involvement  in  the   development  of  ventilation
standards and  practices for both  new and existing
structures.   The  ventilation  rate is one of  the
most  important   parameters   in   controlling   the
concentration  of   indoor   air  pollutants;  better
information and more effective control  are needed
in  this  area.   Since   it  is  one  of  the  most
important variables,  it is most  cost  effective to
look at this area first.  This control strategy or
policy could be easily implementable and is a most
dependable  way to  reduce  indoor  air  pollution.
Because of  the time needed  for  new  buildings to
adopt a code  change and because  new  buildings are
only a few percent of all buildings,  this strategy
could take many years to be effective.  However, if
implemented  now,  approximately  40X of  buildings
could be controlled by the year 2020.

S.4.3  Establish  ventilation  requirements  for new
and existing homes.  REGS, EP, TH

S.4.4  Develop better instruments to diagnose sick
buildings.  S&T

References

NRC,   National  Research   Council   (1981)   Indoor
Pollutants, Committee on  Indoor  Pollutants,  Board
on Toxicology and Environmental  Health  Hazards,
National Academy Press, Washington, D.C.  20418.

Mossman, B.T., Bignon,  J., Corn, M., Seaton, A. and
J.8.L.   Gee,   (1990)      Asbestos:   Scientific
Developments  and  Implications for Public  Policy,
Science, 247:294-301.
NRC, National Research Council (1988) Policies and
Procedures  for  Control   of   Indoor  Air  Quality,
National Academy Press, Washington, D.C.  20418.
Nero, A.V.,  Jr.  (1988) Controlling Air Pollution,
Sci. Am. 258:42-48.

Repace,  J.L.  (1985)  A  Quantitative  Estimate  of
Nonsmokers' Lung Cancer Risk From Passive Smoking,
Environment International, 11:3-22.

USEPA,  US  Environmental Protection  Agency (1987)
EPA  Indoor  Air  Quality  Plan,  EPA/600/8-87/014,
Office  of   Health  and Environmental  Assessment,
Washington, D.C.  20460.

USEPA,  US  Environmental Protection  Agency (1988)
The  Inside  Story,  A  Guide to  Indoor Air Duality,
U.S. Environmental Protection  Agency,  Washington,
D.C. 20460.
A.5  Stratospheric Ozone Depletion

A.5.1  Risk Background

Stratospheric ozone  shields  the earth's  surface
from uttraviolet-B radiation (UV-8).  As the ozone
is  depleted,  increased  UV-B  causes  more  skin
cancers,  cataracts,   and  suppression  of  immune
systems,  as  well as  possibly damaging crops  and
aquatic organisms.  Chemicals  containing  chlorine
that reach and  persist in  the  stratosphere cause
such    ozone    depletion;     these    include
chlorofluorocarbons (CFCs)  like  CFCl, and CF?Cl?,
ha I oos  like  CBrF, and CBrCIF,, and  to  a  IBssCr
extent,  methyl   chloroform (OUCCU)  and  carbon
tetrachloride (CCU).   The  ozone depleting action
of these chemicals may be lessened by the presence
of carbon dioxide (C02), nitrogen oxides (NO, N02),
and methane (CH4).  Nitrogen dioxide,  for example,
normally  acts  as  a  catalyst  in  photochemical
reactions which  destroy and create  ozone  (roughly
at the  same  rate).   However,  in the  presence of
chlorine atoms,  nitrogen dioxide  
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consumption (production minus exports plus  imports)
rights or allowances.  These implement the  Montreal
Protocol and are marketable.  CFC quantities are to
be  reduced  to  1986  levels,  followed  by  a  20X
reduction by 1993, and an eventual reduction to  SOX
by  1998.   Halons are  frozen  at  their 1986  levels
starting in 1992.  In London,  in  late June  1990, an
agreement  signed by 93 countries  at a meeting of
the  parties to  the Montreal  Protocol set  a  new
phase-out plan, although it must  be ratified before
it is official.  The new agreement  calls for a  20X
reduction   in  CFC   production  by  1993;    a   SOX
reduction by 1995;  and 100X reduction by  the year
2000 (all from 1986  levels).  A ha I on  phase-out is
also  described,  with   a  cessation  of   halon
production by 2000.   In addition,  a "declaration of
intent"   is   formulated   for   a   phase-out  of
hydrochlorofluorocarbons   (HCFCs);  the   proposed
deadline is 2040, with 2020 preferred.  Alternative
options evaluated but not selected were "regulatory
fees,"   "auctioned   rights,"   and   "engineering
controls  and  product  bans"  (Federal  Register,
1988).

b)  Excise Tax;  A tax is assessed on each  pound of
regulated  chemical   based  on  its  ozone-depleting
potential.   The  tax   is  progressive,    thereby
increasing the cost of the material  through  future
years.   It  provides  an  economic  incentive  for
recycling, as  recycled material  is not taxed,  and
also generates  a market  for  substitutes  (Omnibus
Budget Act, 1989).

c)  Evaluation  of Alternative Chemicals;   EPA  is
reviewing environmental  and lexicological  effects
of alternatives  to CFCs and haIons.  Environmental
concerns    include    not   only    ozone-depleting
potential, but also effects on energy consumption
and consequent  increased carbon dioxide production.

d)   Technology  Transfer  to Developing Countries;
The agreement  signed at  the London meeting  o*  the
parties to the  Montreal Protocol established a fund
to aid developing nations \n pinpointing the  ozone-
depleters  they  use  and in  installing ozone-safe
technology.  A fund expected to total $240 million
will be managed by the World Bank.

e)  Recoverv/RecycIe/Reolacement;   EPA is working
closely with user sectors  to eliminate barriers to
recycling by setting industry  standards for product
purity,  by establishing a program  for certification
of   refrigerant    recovery   devices,   and   by
co-sponsoring projects on alternative refrigeration
mixtures  and  foam  structures.      Several  other
consortia with  producers and users have been  formed
concerning  appliances, fire  fighting foams,  aid
solvents.

f)   Other  Ozone  Oepleters;   Under  the  London
agreement, methyl chloroform will  be  reduced 70X
(from  1989  levels)  by  the  year  2000   and   its
production  will  be  halted   by  2005.      Carbon
tetrachloride will see a  SOX  reduction (from 1989
levels)  by 1995 and will be phased  out entirely by
2000.

Preliminary estimates  place the U.S.  cost of  the
phaseout of chlorofluorocarbons  and haIons by  the
year 2000 at $2.7 billion over the  next decade  for
the schedule of  intermediate  reductions currently
incorporated  in  the  Montreal  Protocol.    (U.S.
Government Printing  Office, 1990).   The  cost  for
the accelerated program under the London agreement
will presumably be higher.

The Subcommittee views the current EPA effort  (EPt ,
Nov.  1989)  on  ozone  depleters  at  least  in   a
qualitative sense  to  be of the broad-based nature
required to address global issues in an effective
manner.   Some   in  this  area  question   whether
sufficient  resources   are being  placed  on  fully
implementing  all  the  programs   that  are  being
undertaken.

A. 5. 3  Possible Strategy Options
a.  Use  global  cooperation to virtually eliminate
use of CFCs.  halons  and other stratospheric ozong
depleters.  Ozone depletion is a  global problem and
efforts  to  stow it  require  global  cooperation.
Strengthening of  the  Montreal Protocol  is the key
to achieving this.  The effects of a complete phase
out  of  CFCs,  halons,  carbon tetrachloride,  and
methyl chloroform are being evaluated by EPA.  The
President has called for a complete elimination of
CFCs and halons by the year  2000,  providing safe
substitutes  are  available.     An  international
meeting  of  all   parties  to the  Montreal  Protocol
took place in June 1990 to address similar issues.
while  the agreement  in which  the meeting resulted
steps up the phase-out of CFCs and halons and sets
timetables   for   the   elimination   of   methyl
chloroform,  carbon  tetrachloride,  and  possibly
HCFCs, the  timetables will not  be  official  until
the  agreement  is  ratified.     Furthermore,  some
environmentalists think  that   the deadlines  at or
beyond  the  year  2000  are too  lenient  and that
phase-outs  of  ozone-depleting  substances  should
occur  much more quickly.   In any  case,  we should
work towards a timely ratification and realization
of  the   goals   set   in   the  London  agreement.
Renegotiation to  speed  up phase- outs even further
and to establish some concrete language concerning
HCFCs  provide  additional  possibilities  for  ozone
protection.

Besides  strengthening the Montreal  Protocol,  EPA
should consider  tracking  by  regulatory  means  the
application  and usage  of various  CFC and  halon
substitutes that significantly deplete ozone.

S.S.I     Strengthen  the  Montreal   Protocol   to
virtually eliminate use of CFCs, halons, and other
ozone depleters.  PP, FOR

b.  Work  with other countries  to develop ozone-safe
technologies.   In  addition   to  strengthening  the
Montreal   Protocol,  its original  supporters  could
take  steps  to  encourage  participation by  other
nations,   particularly  that   of  lesser  developed
countries.    At  this  point   only  12  developing
countries have  signed the Montreal  Protocol.  The
London   agreement,  through   its  provisions  for
technological transfer, added both India and China
to  the list.   EPA-sponsored  teams plan  to  visit
developing countries  to  aid  their evaluation  of
alternative,   ozone-safe  technologies.   Financial
assistance to lesser developed countries that wish
to support the  Montreal Protocol is also provided
by  the London agreement.   A  fund  of  S240 million
will be available to those countries, in order that
they may identify their use of ozone-depleters and
implement  ozone-safe  technologies.    An  active
technical transfer  program,  as well as  one  which
supplies  financial  aid,  is  crucial to  worldwide
involvement in the Montreal Protocol.
                                                     77

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S.5.2   Help  other  countries develop  ozone-safe
technologies.  PP, FOR

c.     Develop   recycling   techniques   and  safe
alternatives for  CFCs.   Recycling  of  CFCs will be
necessary  if  the U.S.  hopes to  cut  CFC  use and
still maintain its standard  of  living.   EPA plans
to  develop a  program  to  encourage   or  require
recycling of CFCs in selected areas.

Also, the  need to recycle CFC  substitutes (HCFCs
and HFCs) will be investigated.

Development  of   recycling   techniques   that  are
complete and widely  accepted  needs to be fostered
by  EPA.    This can  be  done  through  testing  and
evaluation, financial aid, or other means similar
to  those  in the  CERCLA SITE program.   Recycling
also is needed to support  CFC-using products past
the year 2000 to  avoid costly retrofit or premature
retirement.  The EPA National Advisory Council for
Environmental Technology Transfer  has published a
series of  very  useful   reports on how  to foster
technological innovation (e.g.,  Palmisano 1989).

The Agency should provide technical information to
small user firms on safe substitutes and recycling
opportunities.    The  efforts  of   the  Pollution
Prevention Office could  be  focused on extensively
promoting   application   of   safe   alternatives
(including chemical and process alternatives) known
to  be  avaiI able  for  any current  ozone-  depleter
uses.   The ozone-depleter  phaseout  is  the  most
prominent  pollution  prevention  effort  currently
undertaken in the world, and this office's network
capabilities could be  focused on  taking  advantage
of the opportunities  presented and  on ensuring that
it accomplishes the most  broad pollution prevention
possible.

EPA  should consider  a  more  aggressive  effort to
promote known safe alternatives to ozone-depleting
substances.  In its efforts to expedite testing of
chemical alternatives, the agency  should not miss
opportunities   to   ensure   that   known   safe
alternatives  are  implemented by  users  wherever
possible.  This  is particularly  true  with respect
to substitutes for the solvents CFC-113 and methyl
chloroform.  The  agency  has stated its  desire to
ensure that  users do  not  replace these solvents
with  solvents  which  are considered  to  be ozone
depleters  or  probable human  carcinogens (Federal
Register,  1989).  However,   the   agency,   to  our
knowledge, has  not  yet  taken positive regulatory
steps to ensure that  this does not  happen, e.g., by
invoking its significant new use rule powers under
TSCA  (GAO,   1939)   or  by   undertaking  focused
technology  transfer  efforts  to promote superior
alternative processes,  such as aqueous  cleaning.
EPA might  also consider  coordinating  a program to
allow   "ozone-friendly"   labels   on  substitute
products to increase public awareness.

S.5.3   Support  recycling  and reuse  of CFCs and
development of safe  alternatives.   PP,  SIT, INFO,
HI, TAX

References

"Excise Tax on the Sale  of Chemicals which Deplete
the  Ozone Layer  and of Products  Containing Such
Chemicals,"    Section    7306,   Omnibus   Budget
Reconciliation Act of 1989.
Federal Register,  "40 CFR Part  82,  Protection of
Stratospheric Ozone, Final Rule," vol.  53, No.  156,
pp 30Soe-30602, August 12, 1988.

Federal Register,  "40 CFR Part  82,  Protection of
Stratospheric  Ozone,  Advance  Notice  of  Proposed
Rulemaking," Vol. 54,  No.  72, pp  15228-15231, April
17, 1989.

General Accounting Office,  "Stratospheric  Ozone:
EPA1 s  Safety  Assessment  of Substitutes  for Ozone
Depleting Chemicals,"  GAO/RCEO-89-49,  Washington,
0. C., February 1989.

Jackson,  C.  H.,  "Stratospheric  Ozone  Change,"
Environmental  Science   Technology, Vol. 23, No. 11,
pp 1329-1332,  1989.

Palmisano,  J.,   "Recapturing  EPA's  Institutional
Memory:   Innovation-   Promoting  Activities  from
1979-1985," Technological  Innovation and Economic
Committee   of   National   Advisory  Council   for
Environmental     Technology    Transfer,    USEPA,
Washington,  0. C., November U, 1989.

"Strategic  Plan  for Ozone Depletion,"  EPA,  draft
November 1989.

U.S. Government Printing Office, Economic Report of
the President, 1990.
A.6  CO-, and Global Warming

A.6.1  Risk Background

The  earth's  atmosphere traps  heat from  the sun,
thus making the planet  habitable.  This phenomenon,
called the "greenhouse effect", can be exaggerated
if human  activity  changes the composition of the
atmosphere.  Carbon dioxide, methane (natural gas),
NpO,  and  chlorofluorocarbons (CFCs   --   used  in
refrigeration, foam products,  etc.) result  in about
86X of human impact on the atmosphere's greenhouse
effect even though  they are a  small fraction  of the
total atmosphere (USEPA, 1989).  About half  of the
human  impact  results   from   the  consumption  and
production of energy  (USOOE, 1990).  Deforestation,
agriculture,   mining,    and    other    activities
contribute the rest.

Human activities have  increased atmospheric  carbon
dioxide  concentrations  25X  above  preindustrial
levels (Ramanthan,  1986).  It is likely that human
activity will double carbon dioxide concentrations
during the next 30-40 years  (USEPA,  1989,  USOOE,
1990 and OECD, 1989).  Methane concentrations have
more  that  doubled.     Human  activities   are  now
responsible for about half of  the  N,0, and methane
released into the environment.

There  is  controversy  over   the  consequences  of
doubling carbon dioxide and other greenhouse  gases,
because of the extreme difficulty  in using  computer
models  to simulate  unprecedented  global   climatic
conditions.  However, a significant body of opinion
suggests  that  emissions  equivalent   to   doubling
carbon  dioxide in the atmosphere  would   increase
global  temperatures   1.5-4.5  degrees  centigrade.
While not  all the effects of climate warming would
be negative, it is clear that a temperature  change
of  this  magnitude  would, at  a minimum,  result in
major disruptions.   Temperature  increases of this
magnitude  could disrupt  agricultural  practices,
                                                     78

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alter  ecosystem,   and  create   severe  drought
conditions  in  some  areas and  violent  storms  in
others (USOOE,  1990).   The  destructive  power  of
hurricanes and other  storms  could increase 40-SOX
due to global warming (Emmanuel, 1987). It is even
possible that world ocean levels could  rise a meter
or more, threatening  the coastal  areas where most
people of the world now  live.  Most of the world's
productive wetlands and fisheries  are also in these
coastal  areas.     There  is  no  certainty  that
biological systems  could adapt rapidly  enough  to
avoid  major  ecological  calamities.   Areas  with
marginal  agriculture and poor coastal nations (such
as  Egypt and  Bangladesh) would  be most  greatly
affected.
A.6.2  Policy Background

Policy designed  to  affect  global  climate  change
should be made recognizing that:

a)  Enormous uncertainties about the magnitude and
timing of the risks  involved  will  remain for some
time.

b)   If  we wait  to  take action on  climate  change
until these  uncertainties are  resolved  or  until
climatic   change  has  clearly   occurred,   the
atmosphere  will  have  changed  sufficiently  to
prevent   reversing  the  changes  for  a century  or
more.

c)  The U.S. is  responsible for about 20X of the
emissions  affecting   global   climate  change;  the
problem  and  the solutions are  international  in
scope.

d)    Programs  designed to   slow  climate  change
significantly could  reduce  releases of greenhouse
gases from human activity by 50-80X.

e)   No  simple  change  can  result  in significant
reductions of greenhouse gases.   A comprehensive,
balanced  program  will  be  required  to  increase
global energy efficiency and to  replace existing
energy supplies  with low-carbon substitutes (such
as renewable* and passively safe nuclear power).

f)  Programs designed to encourage major changes in
energy  production may  require research  on  new
technologies,    a  regulatory  environment   that
encourages environmentally acceptable technologies,
and  programs  providing subsidies  to  low-carbon
energy sources or taxes on less desirable fuels.

g)  Since the greenhouse gases already released are
likely to have   significant effect on  the  global
climate,   it will probably be  necessary to develop
programs for adapting to climate change as well as
programs to slow the change.

Many policies designed to deal with global climate
change can be   justified  on  other grounds;  the
threat  of  climate   change   gives  the*  greater
urgency.   Programs to encourage energy efficiency
and   alternatives   to  carbon-based   fuels,   for
example,   can   reduce  criteria  and   toxic  air
pollutants, provide cost-effective energy services,
and reduce U.S.  dependence on foreign suppliers.
A.6.3  Possible Strategy Options
A comprehensive international approach is needed to
make the changes needed for a significant effect on
global warming.  The following specific strategic
provide several of  the necessary elements of such
an  approach.   An   international  climate  change
protocol should be developed  to tie these elements
together.   (USEPA,  1989,  USOOE,  1990 and Project
88. 1988).

a.  Increased research to better understand global
warming mechanisms.   Increased research will help
us understand  the way  human activities can change
the global environment,  and the  impact of climate
change.   Research  could  focus  on  improving our
ability  to  predict  changes  in  air  and  water
temperatures,  sea-levels,   rainfall,  and  storm
conditions and evaluate  the implications  of these
changes on managed and urmanaged ecosystems.  This
will  require   improvements  in   models  treating
interactions between  different components  of the
earth  (the  atmosphere,  hydrosphere,  lithosphere,
and biosphere), including  such phenomena  as cloud
formation, ocean currents,  assimilative capacity of
forests and  oceans, and  the circulation of carbon
dioxide and other gases  in  the oceans (NRC, 1975).

The President's 1991 budget proposal includes $1.03
billion  in  funding  for   global  climate  change
research (U. S. Government Printing Office, 1990).

S.6.1  Understand better the potential  for global
wanning and  its impacts. S4T

b.  Investigate navs to prevent and adapt to global
warming.     Increased   research   on  agricultural
practices that  reduce methane produced from cattle,
rice   production,   fertilizer  uses,   and  other
activities could result  in significant reductions
in greenhouse emissions.  Technologies to minimize
emissions have not received priority.

Excess  greenhouse  gases   already  released  wilt
affect the global climate,  thus increased research
in  adaptive techniques  is  important.    Priority
should be given to development of drought-and heat-
resistant   species,   increased   efficiency   in
irrigation,  and methods  for protecting shorelines
against  sea  level  rises   and   severe   storms.
Planning should be  undertaken to explore  ways low
lying areas can adapt.  This would require accurate
predictions  of new  water-levels  and other impacts
on coastal  areas.   Land-use  and  water management
plans should also  be modified to  reflect climate
change concerns.
S.6.2  Increase research on ways of preventing and
adapting to global warming.  SAT
c.  Use energy conservation as a method for slowing
global warming.  Technologies that increase energy
efficiency are often the most cost-effective way to
reduce production of greenhouse gases.  Fossil fuel
in  the United States  is  used  in  roughly  equal
quantities    by    buildings,    industry,    and
transportation  (taking  into account  the  fossil
fuels used to generate electricity).  About 70X of
all  electricity  in  the  U.S.   and  97X  of  all
transportation  energy  comes  frost  fossil  fuels
(USOOE,   various    issues).     Promoting   energy
efficiency requires research investment in a broad
range of technologies for buildings, industry, and
transportation.  It  also requires creating a market
                                                     79

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for energy-efficient techniques.  Some of the most
effective strategy options include:

1.   Consider  imposing a  fuel  tax  based  on  the
carbon content of the fuel  and/or imposing a tax on
gasoline.  A gasoline  tax  might be set at a level
high  enough   to  expand   markets  for  efficient
vehicles  and  products  --  at  least  50  cents  per
gallon. The carbon tax would be  the most effective
way  to  reduce  CO?  emissions,  but  the  economic
dislocations it  would  cause  are unknown. Revenues
from a  50 cent  per  gallon tax  on  gasoline alone
would yield $56 billion annually; this money could
be  used  to  subsidize  investments  in efficiency
elsewhere in the economy.

2.   Tax inefficient vehicles  and provide rebates
for  purchases of efficient vehicles.   Encourage
use of  more efficient modes of  transportation, such
as public transportation  in  preference to private
autos.

c)    Public  Utility  Commissions  could  provide
utlities   incentives   to   make   cost-effective
investments in efficiency.  Utilities could also be
required to include environmental costs explicitly
in capacity-expansion  planning decisions.   Better
analytical tools for utilities, changes in federal
utility  regulation,   and   creative  management  of
federally  regulated power marketing  authorities
would help.

3.   Develop model  energy-efficient building codes
and encourage their adoption nationwide.  Federally
owned and  leased buildings should set a national
standard.

S.6.3     Slow   global  warming   through   energy
conservation. PP, MI, EP,  TAX

d.   Technologies  involving  non-fossil and  non-
carbon energies  to be encouraged.  An obvious long
term solution  would  be to develop energy sources
that do  not  produce  greenhouse  gases.    Energy
supply problems  are  dominated  by:   1)  the need to
provitle    a    liquid    fuel    substitute    for
transportation,  and  2)  the need to supply rapidly
growing demands  for  electricity.   Unless changes
are    made,    fossil    fuel    consumption    for
transportation   could   grow   rapidly   worldwide.
Increased demand for electricity  in the U.S.  and
elsewhere  is  likely  to be met primarily by coal.
While  it  is technically  possible to  capture  the
carbon  dioxide released by burning  fossil  fuels,
the process is cumbersome and  expensive. Important
initiatives include:

1.  Promoting development of alternative approaches
and  substitutes  for fossil-based  transportation
fuels  and supporting  greater use  of  alternative
fuels  in  the  near-term.     Promote  research  on
conversion of wood and other biological materials
to  liquid  fuels  and  production  and   storage  of
hydrogen for the long-term. Combustion of wood and
other biological materials releases carbon dioxide
into the atmosphere, but the carbon can be captured
if  new  plants   are grown  to  replace   them  (and
provide  a  future  source  for more  fuel).   Such a
cycle adds no net  carbon dioxide.   Hydrogen can be
produced from electricity.

2.  Promoting development of  non-carbon  sources of
electricity.  The  UX of U.S. energy needs not met
by  fossil  fuels  comes  from  nuclear   power  and
renewable energy sources -• primarily hydroelectric
power, direct combustion of wood and wood products,
and geothermal power.  A vigorous research prograr
is needed  to increase  this  share.    In  the near-
term, high-efficiency uses of natural  gas should be
encouraged  as  alternatives   to coal  combustion.
Research for long-term power sources should  focus
on  development   and  deployment  of  a variety  of
renewable resources (wind, photovoltaic,geothermal,
gassified  biomass)   and  the  possible   use  of
passively safe  nuclear power.

3.   Creating incentives for  the  adoption  of non-
carbon energy sources through utility regulation.
The Public Utilities  Regulatory  Policy Act requires
utilities to purchase power from independent power
producers  at its  avoided cost.   Considering  the
externalities associated with coal  use,  a further
increase might be appropriate.

S.6.4   Promote  non-fossil  and non-carbon  energy
technologies. PP, SiT, EP

e.  Promote  international cooperation to preserve
and  enhance  the  world's  forests.    The  world
population continues to grow  at a  rapid  rate.   As
energy demands  will  increase with  population,  it
will became  even more  important to have  worldwide
cooperation  in  controlling  global  production  of
greenhouse gases.    International   cooperation  is
also  needed to   preserve   and  enhance  forests
worldwide    through    debt-for-forest    trades,
reforestation programs,  and  regulation*  requiring
planting that offsets carbon production  from new
generating facilities.   A  global  convention  for
international trading   in greenhouse  gases  would
provide a world market for such trades.

S.6.5  Reduce CO, accumulation in the  atmosphere by
creating  incentives  to  preserve  and  enhance  the
world's forests.  MI, TAX, MR, FOR

f.  Develop  international agreement on greenhouse
gases.   The  problem of global  warming is clearly
international in scope and its solution requires an
international   effort.     The   efforts  of   the
Intergovernmental  Policy  Coordinating  Committee
(IPCC) should be encouraged.

S.6.6    Pursue an   international   agreement  on
greenhouse gases.  FOR

g.   Develop  strategies to reduce use of  CFCs and
halons.  Finally, strategies  to  reduce CFC's, which
are greenhouse gases as well  as  stratospheric ozone
depleters,  would  be  helpful  in   slowing  global
warming.

S.6.7    Reduce use  of CFCs   and  halons  (S.5
strategies). PP, s*T, INRO.  Ml, TAX,  FOR

References

Emmanuel,  K.A.,   The  dependence   of  hurricane
intensity on climate, Nature, 326:458-435, 1987.

OECO, Energy technologies for reducing emissions of
greenhouse   gases:   Proceedings  of  an  Experts'
Seminar, OECO Paris, 12th-Uth  April, 1989, Global
Energy:  Assessing  the  Future,  Oxford University
Press: New York.

National Research  Council,  Understanding Climatic
Change, report of the U.S. Committee for the Global
                                                     80

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Atmcsoheric Research Program,  National  Academy of
Sciences, Washington, D.C.  1975.

Project 88: Harnessing  market  forces  to protect our
environment:  Initiatives for  the New  President,
Washington, D.C. 1988.

Ramanathan,  V., L.  Callis  et  el..   Variations
between 1861 and 1984,  Nature, 322:430-434, 1986

USEPA,    U.S.  Environmental  Protection  Agency,
Policy  options  for  stabilizing global  climate,
Executive summary,  page 12, 1989.

USOOE,  U.S. Department  of  Energy,   Report of the
DOE  multi-laboratory  climate  change  committee,
March 1990.

USDOE,   various  issues  of   Energy  Information
Administration, Monthly Energy Review.

A.7  Non-Point Source Discharge* to Surface Hater

A.7.1  Risk Background

Non-point   source   discharges   are   the  largest
contributing source  type to pollution  of surface
waters.  Nonpoint sources are responsible for most
of the  loadings  of conventional  pollutants -- 96X
of the  sediment, 79X of the nitrogen,  74X of the
phosphorus and 41X of the BOO  --  and similarly high
fractions  of  many  toxic  pollutants  (Gianessi,
1986).  In recent water quality assessments, states
found   that  nonpoint   sources  contributed  to
impairment of beneficial  uses  in many more miles of
streams than did point sources (USEPA, 1990).
Percentage of Impaired River Miles Affected by Each
Source of Pollution

Nonpoint Sources
  Agriculture                       55
  Resource Extraction               13
  Hydrologic Modification           13
  Silviculture                       9
  Construction                       6
  Land Disposal                      4

Nontraditional Point Sources
  Storm Sewer/Urban Runoff           9
  Combined Sewers                    4

Traditional Point Sources
  Sewage Treatment Plants           16
  Industrial Plants                  9
Distinctions between point and nonpoint sources of
pollution  are  not   always   clear;   states  have
generally addressed them  based  more  upon how they
are  controlled than  how they  originate.   Point
sources are generally controlled via permits that
limit  allowable  amounts of  pollutants  and  are
subject  to  enforcement  action  if  their  permit
limits  are violated.   Nonpoint  sources,  on  the
other hand, are addressed primarily via voluntary
controls  such as  best  management  practices  and
incentive programs.  Few regulatory programs exist
for nonpoint sources,  and these  are managed only at
the state or local level.

Some sources have  both point and nonpoint elements.
Storm  sewers/urban runoff  is a  leading example;
historically regarded as more of a nonpoint source,
it   is  now   becoming  subject  to  point  source
controls.   Even sources  widely  acknowledged «.
nonpoint  may  contain  some point  source elements
(e.g.,   permits   may   be   required   for    some
agricultural  activities such  as animal feedlots;
many  mining  discharges are  regulated  under the
point source permit program).

As the  table  above  shows,  agricultural activities
contribute substantially more to non-point source
pollution  across   the  country  than  any  other
activity.  Agriculture  is  responsible for between
68 and 83X of  the non-point source loadings of  four
conventional pollutants (Gianessi, 1986).  A survey
of states found agriculture responsible for 64X of
the  river  miles  affected  by  non-point  source
pollution  (ASIWPCA,  1985).     In  some  specific
regions,   though,   urban   runoff,   silviculture,
grazing,   mining,   construction,   septic   tanks,
contaminated in-piace sediments,  air deposition, or
discharge of contaminated ground water may be the
major contributor to a nonpoint source problem.

Some  of   the  various   ecological  damages   from
nonpoint source discharges include: eutrophication
from  excessive  nutrient  loadings, siltation and
loss of spawning habitat from sediment in runoff,
reduction in water transparency  leading to loss of
submerged aquatic vegetation,  bioconcentration of
toxics  in  fish  (pesticides from farms,  metals in
urban   runoff),   and   acidification   from    mine
drainage.  The intensity of  damage can range  from
long  stretches  of  streams  rendered  lifeless   from
acid mine drainage in the Appalachians, to radical
changes  in  the nature  of  aquatic  communities in
eutrophic  lakes,  to more  subtle  impacts  on   fish
health  and   reproduction   from   low   levels  of
persistent toxic chemicals.   Adverse human health
impacts can result from consumption of contaminated
fish, shellfish,  and drinking water.

A.7.2  Policy Background

Several decades ago,  point sources were the largest
contributors to water quality problems, but annual
expenditures of  roughly $20-30 billion on control
of  point  sources  (USOC,  1987)  have  resulted in
their now being far  better controlled than nonpoint
sources.    At  present,  the  great  majority of
industrial  point   sources   comply  with  permits
requiring   use   of   "Best   Available"   control
technology,  and  84X  of  the nation's  municipal
wastewater  is  treated  to  secondary  or  better
standards (EPA,  1990).   Certainly more remains to
be done in controlling  point sources -- municipal
sewage  treatment plants, for example,  are usually
regulated  to  control only  a subset of  the toxic
constituents  in  their  effluent.   But  nonpoint
sources, in contrast, have received little control
effort.   For  example,  over  40X of  the nation's
cropland  is  eroding  at  excessive  rates  (USDA,
1989).  Nitrogen application to agricultural soils
often exceeds that  recovered  by crops by 50 - 70X
(Johnson,  1989).   Much overapplication  is  due to
widely  varying  carryover  from  the  previous   crop
year; farmers gear application to the unusual  year
when  large amounts may  be  needed.   This results
from a  lack of information about nitrogen actually
remaining  in  the  soil  (Magdoff,  1984;  Fox  and
Pechielek, 1983).

It  is difficult to  evaluate the  results  of   this
concentration  of  control   effort on  traditional
                                                     81

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point sources.   Water quality  trend  analysis has
been hampered  by the lack of  good baseline data,
changing definitfon* of what constitutes good water
quality, and a  focus  on  chemical  rather than more
meaningful biological indicators.  It appears that
improved point source controls  have led to improved
water   quality  immediately  downstream  of   the
treatment plants (Leo, 1984).  But modeling studies
suggest   that   relatively  few   river   reaches
nationwide  are  sufficiently  affected  by  point
sources to profit substantially  from improved point
source  controls.    One  analysis  found that  only
about 7X  of river  reaches would  show  detectable
water    quality    improvements   with    typical
improvements in  point  source  treatment  (Gianessi,
1981).   By  contrast,  nonpoint  sources affect  many
more  river  reaches.     The  broadest  statistical
analysis of  water  quality  trends found no clear
nationwide  improvement over the period 1974-1981.
The U.S.  Geological Survey conducted statistical
analyses of water quality  trends  over this  period
for 34  constituents at several  hundred monitoring
stations across the  country.  For all constituents,
far  more   stations   showed   no   statistically
significant  change  than showed  an   improving  or
worsening trend.  Constituents for which many more
stations showed improving  rather than  worsening
trends  included microbial contaminants (presumably
due to  improved sewage  treatment) and  lead (from
general    reductions   in   Che   use   of   lead).
Constituents   for   which   concentrations    grew
substantially  worse  over  this  period  included
nitrate, dissolved solids,  turbidity, and several
metals  (Smith,' et.al.,  1987).    Presumably,  these
trends developed as a  result of lack of attention
to nonpoint sources,  despite  intensive investment
in point source controls.

Most types of  nonpoint sources have proven far more
difficult to control  than  point sources primarily
because a command and control  regulatory approach
is  difficult   to implement  for  them.    Nonpoint
source dischargers are numerous  and widespread, and
are  difficult  to  identify,   monitor,   establish
control   requirements  for,  and enforce  against.
They discharge  sporadically   (primarily  when  it
rains)  and  in  highly  variable   amounts   and
concentrations.  Also, with regard to agricultural
nonpoint  source*   in particular,   virtually  no
jurisdictions have shown the political  will for a
regulatory approach.

A.7.3   Strategy Options

A first option  is for EPA  to  increase its efforts
with  the  Department  of  Agriculture  to  reform
farming  practices.     Farming  can  be  conducted
profitably  in  a manner  that   minimize*  off-site
damages  to  water  resource*  (National  Research
Council, 1989).     The  following  art some  of the
practices that should be encouraged:

a)    Reduce  us* of  fertilizers  and  pesticide*
through  increased  use  of   technique*  such  a*
integrated   pest   management,   crop   rotation,
alternative tillage practices (such as ridge till)
and soil testing.

b)   Use  best  management  practice*  (BMPs)  that
reduce off-site  losses of soil and those chemical*
that  are  applied  (e.g.,  no-till   and  low-till
planting, filter strips,  grassed waterway*)

c)  Reduce farming activity on credible acreage in
priority watersheds.

d)  Maintain or create vegetative stream buffers.

Modifying  farming  practices  on  2  million farms
across  the  nearly  400  million  U.S.  acres  of
cropland is an ambitious goal.   The best chance for
success lies in working with USOA to build greater
concern for off-farm environmental  impacts  into the
huge existing federal agriculture programs.   If the
S10 - 26 billion recently spent  annually on Federal
farm   programs,   the   $2.4   billion  spent   on
agricultural   conservation  programs,   and  the
agricultural extension agents in nearly 3,000 U.S.
counties  can  be  oriented even  marginally more
toward  environmental  protection, the  impact will
dwarf  that  achievable  by  direct  EPA  and state
nonpoint source control  programs.    (By  contrast
with the resources directed at agricultural issues,
EPA's resources devoted directly to nonpoint  source
controls total  less than $100  million  per  year.)
Desirable revisions in agricultural policies could
include:

a)     Seek  certain  changes   proposed   by  the
Adninistrqtion. community  group*,  and many  others
in  the upcoming   farm  bill  and  in future farm
legislation.   The calculation  of a  farmer's base
acreage on which  price  support payments  will  be
made  should b* revised  to eliminate  the  current
strong  disincentive against crop  rotation.   The
Conservation  Reserve  Program1  (CRP)  should  be
reoriented   to   target   areas  within   priority
watershed*  that contribute significantly  to water
pollution,   instead  of  targeting  area*  that  are
highly  erosive (in  effect,  the targeting  should
reflect  off-farm  impact*  rather   than  on-farm
impacts).  A higher ceiling price should be adopted
for  CRP acre*  taken  out  of production.    Uith  a
better targeted CRP, fewer acres ultimately  need be
enrolled.   Even with a higher  ceiling  price,  the
total costs of the  CRP  will  not  increase, while
water quality benefits will increase substantially.

b)    Support  development  of  an integrated farm
management    program    incorporating    low-incut
sustainab e agriculture (or as some prefer to call
it.  incut-efficient  agriculture),  integrated pest
management,  improved  tillage  practices,  and other
nonooint source  BMPs.   USOA's  research budget in
these areas  is small  and  fragmented and should be
increased.  Agricultural extension agents should be
directed and  funded  to emphasize these approaches
to  farmer* a* mean*  to  maximize  long-term  farm
prof itabiIitv (a* opposed  to short-term farm yield)
and   as   elements   of  farmers'   environmental
responsibilities.  Demonstration projects should be
conducted that show convincingly that this approach
to   farming   is   effective,    economical   and
environmentally protective relative to  traditional
practice*.  EPA  should become more active in  this
area, participating in  and reviewing USOA research
and demonstration project*.

There  are  several   major   attraction*  to   this
agricultural policy strategy:

1.   Although potentially involving  large  sum* of
money,  it  relies  primarily  on redirection of  USOA
resource*, and hence will  have a minimal additional
cost to the government.

2.   Most  of  the change*  in farming  practice* it
seeks  will increase  farm profitability.   To the
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extent  slightly  reduced  agricultural  production
results,  it  will  affect  heavily  price-supported
commodities.  Social  costs should be at most small;
an actual reduction in the total  cost of farming is
more likely.

3.   The likely  risk  reduction from  widespread
adoption  of  more  benign  farming  practices  is
extremely  large,  constituting much  of  the total
risk  from  nonpoint  sources.    Reduced  use  of
agricultural chemicals  will  have substantial risk
reduction  benefits   in  other   areas   also,  for
example, reducing pesticide  residues on foods and
reducing ground water contamination by nitrates and
pesticides.

This strategy  will,  however,  clearly  be difficult
and  slow to  implement.   EPA  has  little  direct
influence over USOA  or  farmers.   It  might require
a  decade or  so  before a  substantial  payoff  is
realized.

c.   To  accelerate  progress. EPA  might  begin  to
investigate whether  and where regulatory controls
over environmental problems  caused  by agriculture
should be adopted. Virtually all of the current or
potential  USOA  programs  seeking  environmentally
sound   farming   practices    rely   on   voluntary
participation  by farmers.    Farmers  are  offered
technical assistance, subsidies, cost  sharing and
other  inducements to  act  in an  environmentally
responsible manner, and they are free to accept or
reject  them.    By contrast,  standards have been
established  prescribing   the   levels   of   water
pollution  allowed from industrial  and  municipal
point sources, and compliance with these standards
is  vigorously   enforced.     Regulatory  controls
imposed by federal, state or local  authorities are
the  norm for  several  other  sources  of  nonpoint
source pollution,  including  silviculture, mining,
and construction.   Why should farmers  be treated
differently than  other  polluters?   Several  of the
traditional arguments against regulating fanners
appear to be valid no longer:

1.  "Point sources of water pollution are a bigger
problem,   and   can   be  controlled  more   cost-
effectively."  After  several  decades of progress in
controlling point sources,  nonpoint  sources  now
seem  to  be  an  equal  or   larger  water  quality
problem.   Studies conducted by EPA's  Regulatory
Innovations staff on point-nonpoint trading in the
Great Lakes, wicomico (HO),  Boor* (TN), and Dillon
(CO) watersheds  have  found  that nonpoint  source
controls could abate  nutrient load* at a lower cost
per pound than further point source controls.

2.  "Farming is a worthy,  independent way of life.
The  government  should  not  tell farmers how  to
farm."    Farming  is  a  business  --   with  high
technology,  heavy capital   investment  and  large
enterprises  --  like others  whose  environmental
impacts  are regulated.   Total assets of  the farm
sector nearly  equal   that of manufacturing.   The
largest 4X of  farms account for SOX of agricultural
sales (Cook, 1985).

3.   "Direct  regulation of  agricultural  nonpoint
sources  is not  administratively  feasible."   While
it  may  be   impractical   to  establish  effluent
limitations for farms and monitor their compliance,
it is administratively feasible to establish design
and operating standards prescribing farm BMPs that
are  tailored  to  local environmental  condition*.
Other  nonpoint   source  types  are  successfully
regulated  in  this manner.   Requiring installation
of BMPs via permits for individual  farms might alsr
be feasible,  if limited to  large farms in critical
areas.

S.7.1    Modify  national   agricultural  policy   to
reduce nonpoint source pollution.   PP,  SAT, INFO,
HI, AP

d.   Another  strategy  option  regarding  nonpoint
sources  is  for EPA to  work with states to enhance
water quality management programs.   The bulk of EPA
and state attention in  water programs  is devoted  to
regulating, permitting and enforcing against point
sources.    To  the  extent  the focus  begins to shift
to a concern for water  quality,  the attention given
to nonpoint sources wilt  increase.   For  several
years EPA  has leaned hardest on states  to reduce
point    source    permit    backlogs,    implement
pretreatment   programs  for    POTWs,   and   take
appropriate   enforcement   actions   against  point
sources.     EPA  has not  similarly  emphasized  the
states'    water    quality    responsibilities
establishing  meaningful  water  quality  standards,
upgrading  water  quality  monitoring,  identifying
water  bodies  not  meeting   standards,  calculating
total maximum daily  loads  for those water bodies,
and  assigning  control   responsibilities  beyond
technology-based  requirements to  the appropriate
point and  nonpoint sources  in order to  meet  the
standard*.    EPA  appears  recently  to have begun
shifting some of   its  effort*  from developing and
implementing  technology-based standards to a water
quality-based approach. The agency should continue
to do so.  We further suggest targeting this water
quality concern.   Attention should not be directed
broadly  at  all   water  bodies  in  violation   of
standards,  but  should  be focused  on  the specific
water  bodies where  inadequate  water quality   is
preventing   realization   of    particularly   high
potential ecological, recreational,  water supply  or
commercial values.  Several specific actions might
include:

1.  Seek increased funding for the Clean Water Act
Section  319  program  of  grants  to  state*  for
nonpoint source  planning and targeting.    Of  the
UOO million  authorized for  1987-1991, only  $40
million has been appropriated.  Only SIS million  is
sought for FY 1991.   States can use these funds
very  effectively  in   levering  programs  of  other
federal  agencies  that  affect  water quality (e.g.,
USOA  agricultural  programs,  USFS  silvicultural
programs,  DOI range  management  programs).    EPA
Headquarters  can   develop  informational  materials
for state*  that suggest how they can  interact with
these other programs, and EPA  arid USOA need to find
ways to coordinate these programs.

2.  Encourage state water quality agencies to take
a broader  view of their responsibilities.   Water
quality  agencie*  should  try  to  influence  the
activities  of  resource management  agencies (e.g.,
agriculture,  forestry,  fish  and game, mining,  oil
and  gas).   Water  quality  agencies should try  to
broaden  the range of financial  resources that are
applied  to  nonpoint  source  control  activities
(e.g., coastal zone management planning grants).

3.   Develop guidance materials on  the  concept  of
trading  control   obligation*  between  point  and
nonpoint sources when both source types contribute
the  same  pollutant  to  a  specific  area.   This
                                                     83

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approach may provide a particularly cost-effective
way to attain  water  quality standards where point
sources    have    met     their    technology-based
requirements,  yet   further  controls  are  still
necessary.  Although the  number of  area* to which
this approach might be  applied is now very limited,
the utility of such an  approach  may  increase in the
future.   With this  option we  are  not advocating
relaxation  of  controls or  requirements  for point
sources;  we are advocating  that  further progress
toward water quality goals be achieved in a cost-
effective fashion.

Like  the  agricultural  strategy, this  approach  of
working  with  states  to  emphasize  water  quality
management  will   probably be  relatively slow  to
bring  results.   Lacking  any  direct  ability  to
regulate nonpoint sources, EPA must resort to such
an indirect, cooperative approach.

S.7.2  Focus EPA  and state water programs more on
enhancing  water   quality  and  less  on permitting
point sources.  REGS, NR,  AP

e.   Finally.   EPA  should   consider  increasing  its
research  and  technical  assistance efforts on  a
variety   of   non-agricultural  _ nonooint   source;
problems  that  are  of  substantial  importance  to
particular   regions   of   the  country.      While
agriculture is responsible for the bulk of nonpoint
source loadings nationwide, it also  is beginning to
receive  virtually all  the  federal attention  to
nonpoint sources.  Other  nonpoint  source problems
can cause locally severe impacts.    Septic tanks
provide one example.  In some regions (Long Island,
Cape Cod, some rural  communities) septic tanks are
a  major  contributor  to  pollution  of ground  and
surface waters with nutrients and pathogens.  EPA's
research  on   low-techno logy  (improvements  to  or
alternatives to septic  tanks has  been reduced,  as
have  the  agency's technology transfer efforts  in
this area  through the  "Small Flows Clearinghouse"
and the  National  Rural Water Association.   These
efforts should be reinvigorated.  In several other
areas  of  nonpoint source concern  (urban  runoff,
silviculture,  mining,   construction),  EPA  might
increase  its  efforts   to  study  and  disseminate
information on successful  state and local  control
programs.  Numerous successful program* exist,  yet
are not  widely known  of   and copied.    EPA might
consider, for example,  drafting  model language that
local  governments could  use  to manage  nonpoint
sources   based  upon   their   land   use  control
authorities.   EPA could  work  with Federal  land-
managing  agencies (USFS   and  BIN  primarily)  to
mitigate  the  substantial  impact*  fro*  grazing,
forestry, mining and  construction on Federal land*.

S.7.3  Support state and  local  efforts to control
land uses that generate nonpoint source pollution.
PP, S&T, INFO, AP, MR

References

ASIWPCA. Association of State and Interstate Water
Pollution   Control   Administrators.  The  States'
Nonpoint Source Assessment  1985.

Fox,   Richard  H.   and  William   P.   Pechielek.
"Response  of  Corn to Nitrogen  Fertilizer  and the
Prediction  of  Soil  Nitrogen  Availability  with
Chemical  Test*  in  Pennsylvania."    Agricultural
Experiment Station Bulletin 843, Pennsylvania State
University.  1983.
Cook,   Ken.     "Agricultural  Nonpoint  Pollution
Control: a Time for Sticks"  in Journal of Soil an
Water  Conservation.   Volume  40,  Ho.  1,  January-
February 1985.

Gianessi, Leonard and Peskin, Henry.  "Analysis of
National  Water  Pollution Control   Policies.    A
National   Network  Model"   in   Water   Resources
Research. Volume 17, 1981, pp 796-821.

Gianessi, Leonard and Henry Peskin.  Resources for
the Future Environmental Data Inventory. 1986.

Johnson, Karl  T.   "Fertilizer  and Water Quality."
Association of Plant  and Food  Control  Officials,
Official Bulletin No.  40.  1989.

Leo,  W.M.,  Thomarm,  R.V.,   and  Gallagher,  T.W..
Before  and After  Case Studies;    Comparisons  of
Water Quality  Following  Municipal Treatment Plant
Improvements.  U.S. Environmental  Protection Agency
CEPA-430/9-007], 1984.

Hagdoff, F.R.,  D.  Ross,  and J.  Amadon.   "A Soil
Test  for Nitrogen  Availability  to Corn."   Soil
Science Society of America Journal, No.  48.  1989.

National Research  Council. Alternative Agriculture.
1989.

Smith,  Richard A.,   Alexander,   Richard  8.,  and
WoIman, M.  Gordon.  Analysis and  Interpretation of
Water-Quality  Trends  in Major U.S.  Rivers.  1974-
1981.   U.S.  Geological Survey Water Supply Paper
2357, 1987.

U.  S.  Environmental  Protection Agency.   National
Water Quality  Inventory.  1986  Report to Congress.
March 1990.

U.S.  Department  of Agriculture.    The  Second RCA
Appraisal;  Soil.  Water  and  Related  Resources  on
Nonfederal  Land in the United States - Analysis of
Conditions and Trends.  1989.

U.S.  Department  of Commerce,  Bureau of  Economic
Analysis.  Survey of Current Business.  May 1987.

A.8  Wetland*

A.8.1  Risk Background

For over 200  years,  wetlands  have  been  drained,
cleared,   filled,   and   exploited   for  whatever
resources could be extracted from them.   In their
natural  state, wetlands  also  produce significant
benefits for society  by:   filtering and purifying
water;  providing  essential  habitat  for  flora and
fauna;   regulating   flows;   storing  water;   and
buffering the  effects of storms.

Wetlands help  maintain water quality by trapping
sediments  and  filtering out pollutants.   Indeed,
artificial ones are  now being created  as  a cost-
effective mean* of  treating  sewage.  For example,
the   town   of   Arcadia,    California,   restored
approximately  154 acre* of wetland*  a* an integral
part  of it*  wMtewater sewage  treatment  system.
But  the capacity of  wetland*  to  improve  water
quality  is   limited   and  improper  solid  waste
disposal in "sanitary landfills* cause* significant
nationwide   detrimental   impact*   on   wetland*.
Discharges of  irrigation  return flows, stormwater.

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othe- non-point  source  run-off,  and municipal and
industrial  wastewater pose  substantial  risks to
wetlands.  Hazardous waste threats to wetlands are
sizable:   more  than 40X  of Superfund  sites are
directly   associated  with   wetlands   (see  our
discussions  of  municipal   and  hazardous  waste
problems).   One recent study  indicates that 72%,
90%, and 97X of sanitary landfills are within 1/4,
1/2, and  1 mile of wetlands, respectively (Lambou
et al, 1989).

Forested and other wetland areas are also valuable
as habitat for fish and wildlife.  Nearly one-third
of the 21,588  plant  species  found in the US occur
in wetlands, although only 5X  of  the land area of
the lower 48 states is comprised of wetlands.  One-
third  of  the  nation's  endangered  or  threatened
species live in or depend on wetlands, and between
60X . and  90X  of  U.S.  commercial   fisheries  use
coastal wetlands as spawning  grounds  and nurseries.
Wetlands  also  support   a  major  portion  of  the
nation's multimillion-dollar fur and hide harvest.
Sport  fishing,  hunting,  bird watching,  and other
wet land-related  recreational activities  generate
billions of dollars  of  economic  activity annually
(USOTA, 1984).

Despite the fact that  wetlands are vital elements
in  ecosystems,  they  are  disappearing  rapidly.
Approximately 215 million acres of wetlands existed
in the 48 contiguous states at the time of European
settlement, but by the mid-1970's,  less than half
of the original  wetland  acreage  remained.   During
a recent 20-year interval, wetland losses averaged
458,000 acres annually;  an  area about half the size
of  Rhode Island was lost  each  year.    Losses in
specific  regions  have  been  even more dramatic.
Originally, there were 26 million acres of wetlands
in the Mississippi Delta;  only 5  million remain.
The  prairie  potholes  in the  Upper Midwest have
shrunk  from   20   million   to   7  million  acres.
Florida's Everglades covered 2.3  million acres at
the  turn  of  the century; less than  half survive.
The  wetlands  of California's Central  Valley have
been  reduced  from  4  million  to   300,000  acres
(Tiner, 1984).

If wetlands are so  valuable in their natural state,
why  are   they  nevertheless  being  so  rapidly
depleted?   The answer  is  that  although wetlands
serve  society  in  multiple  ways, the nature  of
wetland  benefits  are   such  that  their  owners
typically cannot capture those benefits for use or
sale.  Flood protection  benefits  accrue to others
downstream;  fish  and  wildlife  that  breed  and
inhabit wetlands migrate;  and  benefits associated
with improved  water  quality  and  sediment trapping
cannot be commercially exploited.   Hence,  for the
owner of a wetland to benefit  from this resource,
it is often  necessary to develop  it.   Since most
wetlands  are  privately  owned,  these  areas  are
extremely vulnerable.

The  most  important economic   sector  absorbing
wetlands has been agriculture (See our discussions
of  non-point  source pollution  and pesticides),
accounting for  67% of recent  wetland conversions
through the mid-1970's.  Although urban development
and other commercial conversions accounted for only
13X  of  wetland losses  in  the twenty-year period,
1955-1975, such uses are likely  to pose  increasing
threats in the years to come  (USOTA,  1984).
A.8.2  Policy Background

A  number  of  Federal   programs  are   intended  to
protect wetlands, but Federal  policies tend to push
and pull  wetlands  in  opposing directions.   Some
Federal  programs,   such  as   flood-control  and
drainage  projects  of  the  U.S.  Army  Corps  of
Engineers  and   the  Soil  Conservation   Service,
encourage wetland conversion  by reducing  the cost
and risk while increasing the  revenue of wetland
development.      Simultaneously,   other   Federal
programs, such  as Section 404  of  the Clean Water
Act (PL  92-500),  control or  manage  wetland  use
through  regulation  and mitigation to  offset  the
effects  of  development  projects (Tripp,   1988).
Additionally,   the   Federal   government   acquires
wetland areas for protection through the U.S. Fish
and Wildlife  Service.    The  U.S. Department  of
Agriculture's (USDA) "Water Bank" program  has been
offering some  protection to wetlands  since 1970,
and the  Conservation  Reserve  Program  (CRP)  has
enrolled 400,000 acres  of  wetlands  for  10-year
contractual  periods (See  our  discussion  of non-
point source water  pollution  for further  comments
on USDA's Conservation Reserve Program).

President Bush  has  enunciated  a policy goal of no
net  loss  of  wetlands,   but  a national  wetland
protection policy has yet to be established  to set
priorities and  reconcile conflicting programs.  By
offering funds for activities that protect  wetlands
with one hand and for harmful developments  with the
other, agencies work at cross-purposes, and Federal
activities   wind   up  being   inconsistent   and
financially wasteful.
A.8.3  Possible Strategy Potions

A  successful  plan  for  conserving  the  nation's
wetlands will make use of  a variety of approaches
(Conservation Foundation,  1988).   We suggest four
possible strategy options:   (1) remove government
subsidies for wetland development; (2) develop new
and   appropriate   funding  sources   for  Federal
acquisition and management of wetlands; (3) reform
conventional wetland  regulation;  and (4) consider
direct and indirect  impacts in environmental impact
statements for federal flood  control and drainage
projects.

a.   Remove  Government   Subsidies   for   Wetland
Development     Wetlands   are   widely  dispersed,
government budgets  for acquisition  are extremely
small relative to  the amount of vulnerable acreage,
and  conventional   regulation  is  frequently  not
palatable.   Hence,  a comprehensive  approach  to
wetland conservation should include self-enforcing
inducements  for  people to  take  into  account the
full social value of  wetlands.   Although this may
sound  difficult  to  implement,  an  important  step
would  simply be  to  remove government  subsidies
                                                     85

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which   promote   economically   inefficient   and
environmentally  unsound  development  in  wetland
areas  (Stavins,  1990).   This  would provide  two
additional benefits:   1)  promote a stronger,  more
competitive  economy   by   restricting  government
programs  which distort  market  signals  and  thus
foster   unsound   development;   and   2)   reduce
goverrment  expenditures  at  a  time  of  chronic
budgetary deficits.

There are a number of strategy options which could
be   considered.      First,   total  subsidies   on
construction of Federal flood-control  and drainage
projects  could be  reduced or  eliminated.   Some
progress has been made in  this area with passage of
the Water Resources Development  Act of 1986 (PL 99-
662).  The Act provides for increased local cost-
sharing  (2SX)  of  project  costs  and  emphasizes
proper  identification and compensation  for  all
project environmental  costs.   It is  too  early to
say, however,  whether full benefit  financing  and
the  laudable efficiency and environmental goals of
the  Act   will  be  implemented  through  subsequent
legislation and regulation.

Second,   favorable  tax  treatments   of   wetland
conversion (to agricultural  and other uses) could
be  eliminated.    Moves   in this  direction  have
already occurred with  the Tax  Reform  Act of 1986,
whereby   several   tax   code    provision*   which
previously  provided   an   incentive  for  wetland
conversion were  eliminated.   Third,  consideration
could   be   given   to   strong   cross-compliance
legislation linked to receipt of Federal commodity
program payments.   A broad  range  of  agricultural
programs  and  subsidies  provide  incentives  for
economically    inefficient   and  environmentally
unsound  development  of  wetland  areas,  including
price- and income-support programs, and subsidized
loans  (Goldstein,  1988).    While these  programs
obviously  benefit individual farmers  and others,
they are in conflict with  increasing recognition of
the    importance   of    reforming   economically
inefficient agricultural policies.  In this regard,
the so-called "swampbusting provisions" of  the 1985
"farm  bill"   constitute   a  move  in  the  right
direction.  Title XII-C of Public Law 99-198, the
Food  Security Act  of  1985, provides  that a farm
operator  is ineligible for price-support payments,
farm  storage   facility   loans,  crop  insurance,
disaster  payments, and insured  or guaranteed loans
for any year in which annual crop*  were produced on
converted wetland*.

These  strategy  option*  for reducing  or  removing
government  sub sidies for wetland development are
attractive for a number of  reason*.   First  of all,
they  are likely  to  be   effective  in  achieving
wetland  protection.   Second,  they will  do so at
minimal cost  to government;  indeed, net government
revenues  ought  to  be increased.   Third,  because
subsidies for inefficient activities are  removed,
costs  to society  are minimized;  in  other word*,
these  approaches are cost-effective.  Fourth,  those
strategies   which   work    by   removing   existing
subsidies (in all  cases) will  require little,  if
any, monitoring and enforcement by government.
S.8.1  Remove  economic  incentives for development
in wetlands.  HI, AP, TH, TAX, MR

b.    Develop  new  funding  sources  for  Federal
acquisition and management of wetlands.  Since lack
of funding is the primary limit on current wetland
acquisition  programs,  the  development  of  new,
appropriate funding sources  is crucial.   Properly
managed,   the  Land  and Water Conservation  Fund
(LWCF) ought  to be adequate for  this task.   The
LWCF  was  established  in  1964 to  ensure  that  a
portion of receipts  from  Federal  offshore oil and
gas   leasing   would  be   invested   in  acquiring
inholdings  and  additions  to the  public  lands.
Thus,  through  the   Fund,   the  depletion   of
nonrenewable resources  finances the protection of
renewable resource*.

Dedication of some part of these monies to wetland
acquisition could be helpful  and appropriate.  But,
annual outlays  from  the  LWCF have  dwindled  to
historic  lows, despite  increases  in revenues from
offshore  leasing.   We  find  attractive a previous
recommendation  by   the  President's Commission  on
Americans Outdoors that a new  fund be created that
would accumulate sufficient  capital  to generate a
steady stream  of $1 billion  per  year in interest
income for land  acquisition,  and  that the Fund be
used  to leverage state,  local, and private action
(President's Commission, 1987).

A  number  of  other appropriate potential  funding
sources    for     wetland    acquisition    merit
consideration.   First,  it  would be  valuable  to
modify the Federal-Aid  in  Fish  Restoration Fund
(Dingell-Johnson  Act)  program,   which  authorizes
matching  grants to the  states  for up  to 75X of the
cost  of projects undertaken to enhance sport fish
resources, so  that matching  grants would include
wetland acquisition and restoration projects.  This
proposed   change   would   place    part   of   the
responsibility   for   wetland  protection  on  the
beneficiaries  of these  resources, as most species
of sport  fish depend upon wetland  habitats for some
portion of their life cycle.

Wetlands  are  just as  important  for maintaining
commercial fisheries, for both domestic and  foreign
harvesters.    Thus  another  possible  source  of
funding would  be a tax on all commercial sales of
fish  and  shellfish in the U.S.

Complementary  funding could  also  be made available
from a portion of  the Federal-Aid in  Wildlife Fund
(Pittman-Robertson Act), since • number of wildlife
species are  also dependent upon  wetland habitats.
A recent  move in the right direction  is the  North
American  Wetlands  Conservation Act (Public Law 101-
224,  103  Stat.  1905  (1989)), which  established  a
Wetland Trust  Fund which is financed by interest on
the  Pittman-Robertson account, fines and  penalties,
and  direct appropriation*.  Appropriation* of S15
million   annually  are  authorized  for  the  period
 1991-1994,    and   a   Morth   American   Wetlands
Conservation  Council   is  established  to  approve
wetland restoration projects.
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For the  long  run,  consideration could be given to
creating  a  "Sport  Fishing  Conservation  Stamp,"
modelled after  tfre highly successful "Duck Stamp"
program,  carried  out by the  Fish  and Wildlife
Service  (in  the U.S. Department  of the Interior)
under authority of the Migratory Bird Conservation
Act  of  1934.    Through   the  Duck  Stamp program,
wetland  habitats  are acquired  with revenues from
the  sale  of  mandatory  Federal   Duck   Stamps  to
holders of state hunting licenses.  Likewise, the
proposed  fishing  stamp  could be  required  of all
state-licensed  fishermen, with the revenues used
exclusively for wetland acquisition.

The logic behind this proposal  is  analogous to the
reasoning  behind  the Duck  Stamp  program  and our
suggestion  for restructuring the  Federal-Aid  in
Fish Restoration  Fund.    The  proposed stamp would
essentially be  a user fee,  in which beneficiaries
of  wetlands   are  paying  for  their  provision and
protection.  How much wetland  protection  would this
proposal provide?  A SI  stamp  would raise up to S20
million annually (Uolf,  1988).

Strategy options of augmenting current funding for
wetland  acquisition  can  be  cost-effective  if
appropriate sources  of  funds are  utilized,  as  in
our suggestion*  regarding the LUCF  and  the Sport
Fishing  Conservation Stamp.  The  former requires
essentially no  monitoring or  enforcement;  and the
stamp  program presents  a minimal  burden  in this
regard  because of  its  association  with existing
state-level licensing programs.

Also, research and guidelines  are needed  on wetland
restoration,  wetland mitigation (i.e.  trades for
wetland  losses),  and  constructed  wetlands  for
wasteweter treatment.

S.8.2   Develop  new  funding  sources for  federal
acquisition and management of wetlands.  NR

c.  Reform Conventional Wetland  Regulation  Current
wetland regulatory programs are flawed and could be
reformed in a number of ways.  First, jurisdiction
under  current  laws  and  regulations   could  be
expanded  to  cover   a   broader  set  of  wetland
alterations.   Currently, the Section 404  program
covers  only  wetlands  altered  by  dredging  and
filling,  but   there  are  nunerou*  other ways  --
including drainage -- in  which wetlands are altered
and degraded.   Indeed,  a  Congressional Research
Service study found in 1982 that approximately SOX
of U.S. wetland losses are  not  subject  to Section
404  provisions  (Environmental  and Energy  Study
Conference, 1989).   Federal  and  state   regulatory
programs need to  address explicitly:   removal  or
excavation  of   soils;    drainage   and   flooding;
destruction   of  plant   life;  and  placement  of
obstructions.

Second, the 404 program  could be  amended to allow
for  state delegation in  the  case of  navigable
waterways.  Currently, states are discouraged from
developing programs due to an  important legislative
constraint:    the  ability of  states   to  accept
jurisdiction  is  limited  to  waters  defined  as
"navigable" (Clean Water Act (PL 92-5000).  Section
*04  (g)  (1)).   Hence, there is split jurisdiction
between  state  programs and  the  Federal  (Corps of
Engineers) permit  program.   This creates problem
for  potential  permittees   and  discourages  many
states  from  devoting their  greatest  attention to
the  wetland  areas of  most  concern.   By changing
this  statutory provision and allowing  states to
accept   404  delegation   for  all   waters  (while
preserving the Corps' ability to comment  on permits
to  insure navigation  servitude),   the  delegation
process can be made more effective.

Third,    penalties    sufficient    to   discourage
violations could be utilized.  It is frequently the
case that when  a  wetland violation is discovered,
instead of a penalty,  either a retroactive permit
authorizing the activity is  issued or the violator
is given a cease-and-desist  order.  Rarely does the
damage get repaired and the wetland restored.

Fourth and finally,  a strong executive order may be
needed to restrict Federal actions which encourage
development   of   sensitive   ecological   areas,
including wetlands.  Since most actions which alter
these habitats  are undertaken by 'individuals and
firms,  direct  regulation of all  such  actions is
infeasible.    But a  substantial  portion  of  those
development projects are  instigated, subsidized, or
licensed  by  the  Federal government.    Hence,  it
would be effective amj feasible to require Federal
departments and agencies  to consider alternatives
to any wet Iand-alter ing actions.

A  new  executive  order  for  a  broad  class  of
sensitive habitats  could be based upon existing
wetlands Executive Order  11990,  which  states that
Federal  agencies  "shall   avoid  undertaking  or
providing assistance  for  new construction located
in  wetlands  unless  ...   there  is  no  practicable
alternative  ...  and  the  proposed  action includes
all  practicable  measures  to  minimize  harm  to
wetlands which may result ..."  A broader executive
order  for the  protection  of  sensitive habitats
might  include:    (1) extended coverage  for  non-
construction  activities  such  as agriculture  and
silviculture;   (2)   extended  coverage   for   the
issuance of Federal  permits and  licenses; and (3)
enumeration  of  sensitive ecological  areas  to be
protected.

S.8.3   Reform  conventional wetlands  regulation.
REGS, ENF, TN

d.   Use  Accurate Impact Areas in  Environmental
Impact Statements   A question,  in  the  context of
Environmental   Impact   Statements   (EIS's)   and
elsewhere, is whether the estimated areas of impact
of Federal flood-control  and drainage  projects on
wetlands   should    be    limited   to   (minimal)
construction  impacts,   or   whether   they  should
include  impacts which  occur  when such  projects
cause private landowners  to drain  and  clear their
wetland  holdings.   In more  general  terms,  should
"secondary"  (economically   induced)   impacts  of
projects be considered as part of the EIS process?
From a legal  standpoint,  the answer is clearly yes,
but  during  the past  fifteen years, in preparing
their EIS's,  Federal  agencies typically have not
                                                     87

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included  areas  of  secondary  impacts,  such  as
wetland  areas  cleared  and  drained  by  private
landowners.  It has now become clear, however, that
Federal   flood-control    and   drainage   projects
directly induce private  landowners to convert their
wetland  holdings  to  dry  croplands (Stavins  and
Jaffe, 1990).

These  impacts  should be  candidly  assessed through
the NEPA (the National  Environmental Policy Act of
1969 (PL 91-190))  process.   Whether environmental
impacts  together  with  other  costs  of  Federal
projects will be found to  outweigh project benefits
is a question which must be addressed on a case-by-
case basis, but it  is essential that "environmental
impact areas" be correctly defined to include areas
where drainage and  clearing are induced, not simply
the   relatively   small   areas   where   project
construction  occurs.    More  generally,  so-called
secondary (economically  induced) impacts of Federal
projects of  all  kinds  should be  assessed through
the  existing NEPA   process.   Significantly,  this
should   include  housing  projects  and  highway
development projects which receive Federal support.

This strategy  option could be  cost-effective,  but
it  will   involve   increased  costs  for  Federal
agencies.    Its  impact  will be  limited by  the
limitations  of the E1S  process  in general,  i.e.
agencies  are  not  precluded form  taking  actions
found by EISs  to have adverse consequences;  they
are required only to take these consequences in to
account in making their decisions.
S.8.5  Include consideration of direct and indirect
impacts in Environmental Impact Statements for all
federal  programs   including   flood  control   and
drainage projects.  NR, INFO,  TH

References

Conservation Foundation, The,  Protecting America's
Wetlands: An Action Agenda. The final report of the
National Wetlands Policy  forum.  Washington,  O.C..
1988.

Environmental and Energy Study Conference. Briefing
Book,  Environmental,  Energy  and  Natural  Resource
Issues, Washington, D.C.,  December 22, 1989.

Goldstein, J.H., ed. The Impact of Federal Programs
on  Wetlands,  Volume  I.,  The  Lower  Mississippi
Alluvial  Plain and the  Prairie Pothole  Region,
Washington, O.C., U.S. Department of the Interior,
October 1988.

Heimlich,   R.E.     The  Swampbuster   Provision:
Implementation  and  Impact, Paper presented at the
National Symposium  on  Protection of Wetlands fro*
Agricultural  Impacts,  Colorado  State University,
Fort Collins, Colorado, April 25-29, 1988.

Lambou,  V.W.,   J.E.  Moerlins,  R.C.  Herndon,  J.N.
Kuperberg and R.L. Cebhard, "Proximity of Sanitary
Landfills  to Wetlands  and Deepuater  Habitats  in
Eleven States", D.W. Fisk, Ed., Wetlands: Concerns
and  Success,  Proceedings  of  the  American  Water
Resources Association Special Symposium, September
17-22, 1989.
President's  Commission,  Americans Outdoors:   The
Legacy, The  Challenge,  Report  of  the President's
Commission, Washington, D.C., Island Press, 1987.

Stavins,   R.N.,   Alternative  renewable  resource
strategies: a simulation of  optimal use, Journal of
Environmental  Economics  and Management,  18,  in
press, 1990.

Stavins, R.N. and Jaffe,  A.B.,  unintended Impacts
of  Public  Investments  on Private Decisions:  The
Depletion  of  Forested Wetlands, American Economic
Review, Volume 80, number 3, June 1990.

Tiner, R.  W.  Jr., Wetlands of  the United States:
Current Status  and Recent  Trends, Newton Corner,
MA.  U.S.   Department  of  the  Interior,   Fish  and
Wildlife Service, 1984.

Tripp, J.T.B.  and Hen,  M.,  Wetland preservation
and   restoration:   Changing  federal  priorities,
Virginia Journal  of Natural Resources  Law 7:221-
275,   1988.USOTA,  U.   S.  Office  of  Technology
Assessment  Wetlands:  Their use  and  regulation,
Washington, O.C.,  Congress  of  the United States,
1984.

Wolf,  S.A., The  Sport  Fishing Conservation Stamp:
A Proposal  for Wetland Protection, Unpublished B.A.
thesis. Harvard College,  1988.
A.9  Estuaries. Coastal Waters and Oceans

A.9.1  Risk Background

Estuaries support some of the world's most diverse
and productive  ecosystems.   Many species  of fish
and birds depend on estuaries for one  or  more of
their  critical  life  stages.    Estuaries  serve
different species as breeding  areas, nursery areas,
wintering  areas,  feeding  areas,  and  migration
pathways.   More  than  70X  of  the  American  fish
species   of   commercial   importance   depend   on
estuarine and coastal  waters in one or  more of
their  life  stages.    The Gulf of Mexico provides
critical  habitat   for  75X  of  North  American
migratory waterfowl.

Environmental conditions  in  estuaries are fragile
and  highly   subject  to  perturbation  by  human
activities (NRDC, 1989).  Municipal and  industrial
effluents, agricultural  and urban runoff,  and air
deposition can  contribute pollutants changing the
chemical   composition   of    estuarine   waters.
Eutrophication  (from  nutrients),  low  dissolved
oxygen  concentrations  (fro*  BOO and nutrients),
reduced   light   penetration   (fro*   suspended
sediment), and bioconcentration of toxic chemicals
(fro* pesticides, heavy metals, and toxic organics)
have  resulted  in  many  areas.    Development  of
shorelines  and filling  of  coastal  wetlands have
altered  habitat  conditions needed for survival by
many   estuarine  species.     Consumptive  water
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withdrawals  upstream  of  estuaries  have  changed
fresh-water   flws  and   salinity  gradients   in
estuaries.      Excessive   commercial  or   sport
harvesting have sharply reduced the populations  of
many species.

A  coherent  national summary of  the  condition  of
estuarine  and coastal  aquatic ecosystems  is not
available.    Several  statistics  suggest  concern,
however (USEPA, 1989):

a)  About 1/3 of the Nation's productive shellfish
beds  are closed  by  NOAA  and  FDA  to commercial
harvesting,   mostly  because  of   bacteriological
contamination   fro*  inadequately  treated  human
waste.

b) About  1/2 of the coastal  wetlands existing  in
the  mid-1700's have  been  lost.    (However,  this
trend  is  not inevitable.   Since  strong shoreline
protection programs were adopted  by  Maryland and
Virginia  in  the  1970's,  coastal  wetland losses  in
the Chesapeake Bay have been stopped.)

c) About  1/4 of  monitored  estuarine waters have
elevated  levels  of  toxic substances.   State and
local  governments  have  advised   limited  or   no
consumption of fish and shellfish  in many areas.

d)    In  the  Chesapeake  Bay,  submerged  aquatic
vegetation covered about 30X of the bottom acreage
in 1970, but only about 6X in 1986.  Eutrophication
and reduced light transmission in more turbid water
are   responsible.      Partially   as   a   result,
populations  of  key  fish  and  shellfish  (e.g.,
striped  bass, white  perch,  shad, oysters)  have
declined.  The harvest  of Bay oysters,  for example.
has declined from 3.4 million bushels  in 1981 to  .9
million bushels in 1988 (USEPA, 1990)

Estuaries are not,  however, universally degraded.
A compilation of 1988 data from 23 states reporting
on the quality of their estuarine waters shows 72X
of   estuarine  square   miles  fully  supporting
designated uses, 23X partially supporting them, and
6X  not   supporting  them.    These   figures   on
support/non-support are  nearly identical  to those
characterizing the  quality of rivers and streams.
The causes of non-support in estuaries were cited
as (USEPA. 199C):
Nutrients
Metals
Pathogens
Siltation
Organic enrichment/ low DO
Unknown toxic ity
Oil and grease
Organ ics
SOX
10X
48X
7X
29X
SX
23X
4X
Relative to rivers and streams, the causes of non-
support in estuaries are  more often nutrients and
pathogens, and  less often siltation.   Human waste
is  cited  as  the most   common  source  of  these
pollutants, with agriculture second.

A.9.2  Policv Background
Until  recently,  the  Federal  government  had  no
comprehensive policy regarding estuaries or coastal
waters.   Federal  programs included  a variety  o;
uncoordinated measures that served to protect  these
areas  (e.g., prevention  and cleanup of oil spills
by the Coast Guard, restrictions on ocean dumping,
coastal    zone   management    planning    grants,
designation  of  marine   sanctuaries,   pollution
control requirements  for  point sources of  air and
water  pollution).   There were also  many  Federal
activities that encouraged development of  estuarine
watersheds,    unintentionally   contributing    to
deterioration  of  estuarine water  quality (e.g.,
Federal  flood  insurance,  financial   support for
construction of  infrastructure).

Although the Great Lakes Program began in 1970 and
the  Chesapeake Bay Program in  1977,   it was not
until 1985 that the  Federal government recognized
estuaries as a class of  resource  needing  focused
protection.    In  1985  Congress directed  EPA  to
conduct targeted programs  in  four  estuaries, two
more were added in 1986,  and the 1987 Clean  Water
Act  Amendments  named 11  estuaries  for   priority
consideration.   Now,  EPA is conducting programs  in
nearly 20  estuaries,  with several  more  projects
awaiting approval.

EPA's  estuaries program   is  intended  to  improve
water  quality  and enhance  living  resources   in
nationally significant estuaries.   For an  estuary
accepted into  the program,  EPA will  convene and
provide financial support  for a planning process  (a
"management conference") that will (USEPA,  1989):

a) Conduct a phased program to identify and define
priority problems,  establish their probable causes,
and devise alternative strategies to address  them;
and

b)  Coordinate   all  concerned  Federal, State and
local agencies, and secure commitments  from them  to
carry out the recommended actions.

EPA's role is limited by statute to supporting a  5-
year  planning  and  management  effort   for  each
estuary;  it is  not expected that  EPA will provide
financial support  to implement  remedial   measures
called for by the plan.

The  longstanding programs  of this  sort  for the
Great Lakes and Chesapeake Bay are showing success.
Water quality and  living  resources  in these areas
appear to  be  improving recently.   However, EPA's
financial and administrative support for  these two
programs  has  far  exceeded  the  five years  and
limited resources  that are contemplated for other
estuaries.

EPA  has  also  recently established  a  program  to
solve  problems  in   coastal   waters  other  than
estuaries.    The "Near-Coastal Waters  Program"  is
identifying threatened and impaired coastal waters,
and  supporting  several    innovative   management
actions  in  these  waters  that  are   intended   to
demonstrate  useful   techniques   for  application
elsewhere.
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A.9.T  Possible Strategy Options

The key to preserving and enhancing the quality of
an estuary is focusing on it  as a resource.  Nearly
all of EPA's program  focus on sources, pollutants,
or products.  To focus on a resource is different -
- the needs  of  the resource  become paramount, and
the  approaches  necessary  to meet  them  typically
extend well beyond controls on sources, pollutants,
and products.   To protect a  resource, far greater
capabilities and authorities are needed than those
of  EPA  alone.     EPA's   major  role  must  become
supporting research and planning to identify needs
and solutions,  and then  marshalling the resources
of  other   federal,   state,   local,   and  private
agencies to achieve mutually agreed-upon goals.

a.   View  and deal with estuaries as  integrated
systems and  avoid focusing only  on water Quality.
The history of the Chesapeake Bay Program provides
an example (CEC,  1988, 1989).  EPA's initial focus
was on  water quality.   EPA  supported revision of
Bay    water    quality    standards,     conducted
sophisticated water quality  modeling  efforts, and
contributed   to  huge   investments   in   advanced
wastewater   treatment   by   communities    in   the
watershed.   However,  the alarming  decline in some
of  the  Bay's   resources  (fish,   shellfish  and
waterfowl populations, SAV, and natural shoreline)
continued.    It 'became  clear  over time  that the
public  was   fundamentally  concerned   not  with
chemical  quality  of   the Bay's water,  but  with
preserving  the   living   resources  and  even  the
culture of the Bay. Scientific studies established
that  several factors  other  than  water  pollution
from point  sources were  primarily  responsible for
deteriorating conditions:

1.  Rapid  shoreline development  was shrinking the
amount  of  wetland*   and other  natural  habitat
necessary   for   species   breeding,  nursing,  and
feeding.

2.   Overfishing was placing severe stress on the
population of several  species.

3.  Critical pollutants  were contributed mostly by
nonpoint sources.  Nutrients  causing eutrophication
and  a  decline   in  SAV derived  primarily  from
agriculture   in   the   Susqueharma  basin  and the
Eastern Shore,  and also substantially  from  long-
range  air  deposition.    At  least   half   of  the
sediment  that  reduced light penetration  and SAV
growth came  from  shoreline erosion, exacerbated by
construction and development  activities.   Toxics
accumulating  in  some  species came  from  long-ago
contaminated  sediments,  often   stirred   up  by
dredging.

The  policy measures  adopted to respond to  these
problems relied largely  on noo-EPA authorities:

1.   Maryland adopted a Critical  Areas Program,
implemented  by localities through their  land-use
control  authorities,   that ha*  carefully  limited
development.    This program  and other*  appear to
have  reduced the rate of loss of coastal  wetland*
 in the  Bay to zero.
2.  A joint ban on rockfish harvesting by Maryland
and Virginia has resulted  in a significant recover,
of population.

3.   USOA and  State incentive-based  programs  for
farmers have  reduced agricultural  nonpoint source
nutrient loadings.

In its design of other estuary programs throughout
the country, EPA seems clearly to appreciate these
lessons.    The  Subcommittee  applauds  the  basic
thrust of EPA's focus on an estuary as a resource.
Scientific studies  followed by  policy development
are both defined broadly  enough  to cover  the full
scope  of  threats  to  the  resource:  pollution,
habitat alteration,  harvesting, and development and
growth  in general.   All  relevant  Federal,  State,
local,  and  private  agencies   contribute  in  a
coordinated manner to the study and implementation
phases of the project.

The Subcommittee believes that this broad resource
protection  model being  used  for estuaries  has
promise  for  application  in other fields.   EPA's
protection  efforts  toward   key  wetland  areas,
important  aquifers,  and  valuable  airsheds  are
perhaps not  as aggressive as  they might be.   In
such areas EPA typically limits  its involvement to
using  the  tools under more direct Agency control
(e.g.,   404    permits,    sole    source   aquifer
designations,  PSO permitting),  which are  able to
address  only  some  of  the  threats  facing  the
resource.  EPA might consider a more comprehensive
approach relying  extensively  on cooperation with
other agencies.

Although the  Subcommittee thinks  highly  of EPA's
resource-oriented   approach   toward   estuaries,
several potential institutional problem* associated
with the program will need attention:

1.   What is  to limit  the number  of  estuaries to
which EPA can give such individual attention?  The
number  of  estuaries  in the  program seems  to be
growing  inexorably.   It is not  clear  that any of
the current estuary projects are  finishing, and new
areas are petitioning to  be  added to the program.
It does not  seem that,  as was hoped, the existing
projects  are  providing  demonstrations or models
that  other  areas  are  adopting  without  needing
assistance from EPA.

2.   Can and should EPA  limit  its  assistance to
planning and management within a five year period?
Or  should  EPA  assist  with the  much  higher costs
inherent in  long-term,  continuing remediation and
protection?   How can  EPA extricate  itself after
some  reasonable period  of time from a program for
managing  a specific estuary,  and  leave  a viable
institutional  structure to continue the program?

3.    If  EPA  personnel  are to  understand habitat
alteration,  fisheries and growth management  issue*
in  addition to pollution control, their education
and  training  will have  to be significantly broader
than  it  typically is now.
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S.9.1    Manage estuaries  as  integrated  systems;
avoid focusing only on water quality.   S*T, AP, TH,
NR

b.  Protect  estuaries in general,  though,  a broad
emphasis on pollution prevention.

Estuaries constitute a major zone for  accumulation
of  pollutants.   In contrast  to  upstream flowing
waters,  estuaries  typically  have  long residence
times.  Pollutants flowing into estuaries will tend
to  remain there,  accumulating in  sediments,  the
water   column,   and  biota.    Also,   given  the
relatively   large  surface  area  encompassed  by
estuaries,  they   receive  substantial   additional
pollution loadings through air  deposition.  Because
of  this  potential  for  long-range transport  of
pollutants to  estuaries,  it  is often difficult to
identify  and  control  the  specific   sources  of
pollution affecting an estuary.  The following are
some recent  findings  regarding unexpected sources
of  estuarine pollution (Hi Her, 1990).

1.   Air deposition  of  nitrates  is   thought  to
provide  about  30X of  the nutrient  load to  the
Chesapeake  Bay and 20X  of  that  to  Long Island
Sound.

2.  Air  deposition is  the largest source of toxic
chemical loadings  to the Great Lakes.

3.   A  small  and  declining  population of Beluga
whales  lives in the estuary of the Saint Lawrence
River.  A key toxic chemical  found in the whales it
mi rex,  a pesticide that  has apparently never been
produced or used  in the St. Lawrence basin.  Where
did the mi rex  come from?  Atlantic   eels are  a
primary  food  source  for  the  whales.   The  eels
migrate  from  the  Great Lakes  to  the mid-Atlantic
Ocean.   As they  pass  through  Lake Ontario,  they
pass  two  plants  near  Niagara,  New  York  that
produced and used mi rex,  and must have discharged
it.   The  eels appear  to  pick up mi rex  in  Lake
Ontario, and the major  impacts  of  the pollutant are
eventually felt  among a  population of whales  at
least 600 miles away (CF,  1990).

Specific measures to prevent  pollution (e.g.,  by
reducing nonpoint  source  discharges and pesticide
use through the strategy option*  in A.7 and A.13)
in  the catchment area for  a particular  estuary can
be  important.  But when  the sources  of pollution to
estuaries can  be  as distant  and unexpected as the
examples cited above, a broad nationwide pollution
prevention effort seems appropriate.

S.9.2    Protect   estuaries from  accumulation  of
pollutants  transported   long   distances  through
general  waste  reduction and pollution prevention
efforts. PP

c.  Manage contaminated  sediments in estuaries bv
developing an  ecologically  protective  and  cost-
effective  technology.     In  a final   observation
regarding  estuaries,  the  Subcommittee  wishes  to
comment on the increasingly serious consideration
being given to large projects  to  dredge and clean
contaminated estuarine sediments.  More research on
 this   subject   is  needed.     Highly  contaminated
 sediments can  pose serious risks, as  evidenced by
 designation  of  several  areas  of   contaminate,
 sediments  as   Superfund  sites.     But  dredging,
 cleaning, and disposing of these sediments  can also
 be  dangerous -- resuspending  contaminants in  the
 water   --    and  costly.      Sediment/water/biota
 interactions   are   not   well   understood,    and
 satisfactory sediment  quality  standards  have  not
 yet  been  developed.    The   relative merits  of
 covering,   removing,   or   ignoring   contaminated
 sediments should be investigated more thoroughly
 before action  is taken in most cases.

 S.9.3   Develop ecologically protective  and cost-
 effective  technologies   to  manage   contaminated
 sediments in estuaries.  SiT

 References

 CEC,  Chesapeake Executive  Council  (1988,  1989),
 Reports:  Population Growth and Development in the
 Chesapeake Bay Watershed  to  the rear 2020;  The
 Second Progress Report Under  the 1987 Chesapeake
 Bay Agreement;  The State Chesapeake  Bay  -- Third
 Biennial Monitoring Report, 1989.

 CF,    The    Conservation   Foundation    (1989),
 Conservation  Foundation Letter,  The  Great  Lakes
 Basin:  A Great Resource at Risk, 1989, No. 5

 Killer, Michelle.   U.S.  Environmental Protection
 Agency, Office of Marine and Estuarine Protection,
 personal communication,  1990.

 NRDC, The Natural Resources Defense Council (1989),
 Ebb Tide for Pollution:   Actions for cleaning up
 Coastal Water,  New York, NY.

USEPA, U.S. Environmental Protection Agency (1990),
 National Water  Qualilty  Inventory,  1988  Report to
 Congress,   Office   of  Water   Regulations   and
 Standards,  Washington,  D.C.  20460.

USEPA, U.S. Environmental Protection Agency (1989),
 Saving   Bays   and  Estuaries,   a    Primer   for
 Establishing   and   Managing    Estuary  Projects,
 EPA/503/8-89-001, Office of Water, Washington, D.C.
 20460.

USEPA, U.S. Environmental Protection Agency (1989),
 The Water Planet,  Office of Water Strategic Plan,
 November 1989.
A.10  Habitat Alteration

A.10.1  Risk Background

Physical  alteration  of aquatic  and  terrestrial
habitats caused by  human activity has been ranked
as one of the most serious ecological risks by both
the original  Unfinished Business  participants and
by the Science Advisory Board's Ecology and Welfare
Subcommittee   (a    sister   committee  to  ours).
Modification  of  natural habitats can also  cause
substantial loss of economic and aesthetic values.
Development, resource extraction,  agriculture, and
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timber harvesting represent the major categories of
activity   affecting   aquatic   and   terrestrial
habitats.   Practice*  that can  have  particularly
important  effects  on  aquatic  habitats  include
dredging  and filling,  creation of  impoundments,
drainage, channelization,  shoreline stabilization,
and upland activities that  significantly change the
magnitude,  timing  and temperature of  water flows
(e.g., water withdrawals, forestry, urbanization of
a watershed).  Terrestrial  habitats can be affected
by  a  wide variety  of construction activities  --
roads, housing and other structural development •-
 and  land  uses   including agriculture,  grazing,
forestry, mining, and even recreation.

Physical   alteration  of   habitats   results   in
substantial  ecological  damage  because   of  the
intensity,  scale,  and permanence  of the  effects
caused.   Physical  alteration can cause  critical
alteration  of  conditions  in  an ecosystem (e.g.,
change in moisture, temperature,  disease agents or
other  stress)  or complete destruction of  a given
habitat.   The   range  of  impacts  could  include:
stress  on  individual species  in  an  ecosystem,
elimination of one  or more species,  conversion to
another type of  ecosystem, or complete  loss of an
area  as  a  natural   habitat.     The  threat  to
biological  diversity  is   especially  serious.    A
particular species  can become extinct  if  features
of  its habitat  crucial  to  its development  are
destroyed or significantly altered.  Similarly, if
a habitat is sufficiently fragmented, migration and
general  movement  paths  of  the species  will  be
disturbed; this  isolation  makes the  species more
vulnerable  to  other  stresses  such  as  disease
outbreak.

Over time, the scale of physical alteration in the
U.S. has become immense.  About 1/2 of the wetlands
existing  during  colonial  times no   longer  exist
(Tiner,  1984).   Only about  1/3 of  the  original
acreage of riparian plant  communities now remains
in  a  near natural  condition  (Swift,  1984).   The
amount of the U.S.  land area  (excluding Alaska) in
developed uses  (cropland,  urban land,  homesites,
etc.) has  increased by about  1/3 between 1910 and
1982  (USDA,  1988).   Some habitat alteration can
have effects on a larger than regional scale, such
as  deforestation  and its effect on the  global
carbon cycle.

Host  worrisome  is  that  adverse effects  of this
habitat    alteration    often   approach    being
irreversible.  Whereas ecosystems can recover from
most  pollution  impacts  within  years or  decades
following  cessation  of  the   pollution,  the  SAB
Ecological and Welfare Subcommittee of this project
projected  a  century  or  more  as the  typical time
frame  for  recovery of an  ecosystem  fro* physical
alteration.

A.10.2  Policy Background

The federal  government conducts  a  wide variety of
programs to protect specific varieties of important
habitats.   Such programs  include  acquisition and
management of  park,  refuge,  and wilderness  lands;
protection of wetlands, endangered species habitat,
coastal zones, barrier islands and floodplaing; and
the    environmental    impact    statement   (EIS)
requirements  for  major   federal   actions.    Most
federally owned land (USFS and BLM)  is managed for
multiple purposes, based  on a  planning process that
weighs preservation   against  use   values for  the
land.  State,  local,  and   private  agencies are also
very  active  in  protecting  important  habitats,
operating such programs  as park systems, property
tax   abatements   for  open   space  preservation,
critical   area   zoning,   and   prohibitions   of
construction in wetland  areas.

These programs are, however, highly  fragmented and
tend to be poorly coordinated.  They apply to some
types  of  important  habitats  and  not  to others.
There exists no consistent nationwide inventory of
all critical  ecological  areas, and  no nationwide
plan to protect them.

Arrayed against these programs that protect habitat
from alteration are a great variety of governmental
programs  that  encourage  development.    Federal
programs   include   subsidies  for   agriculture,
housing, water resource projects, sewage treatment,
water   supplies,    highways,    airports,    mass
transportation,  energy   production,  businesses,
rebuilding after disasters, etc..   It is not clear,
on balance, if the Federal government does more to
encourage physical alteration  of important habitats
or to discourage it.

EPA has limited authority to preserve habitats from
physical  (as  opposed   to  chemical)  alteration.
Important EPA programs include  review and comment
on federal EISs,  responsibilities under Section 404
of the Clean Water Act, and support  for integrated
management  of  estuaries  (particularly Chesapeake
Bay)  threatened by  both  pollution and  physical
alteration.    EPA's   major participation in  the
alteration of habitats is  through community growth
induced by the sewage treatment construction grant
and   revolving   loan  programs.     Through  these
programs, EPA provided about 40X of  the money spent
on constructing municipal sewage treatment plants
in the U.S. between 1974  and 1984  (Apogee  Research,
1987).

A.10.3  Possible Strategy Options

As a  general matter,  EPA could begin by  asserting
an interest in protecting  ecosystems from physical
damage as well as from chemical (pollution) damage.
EPA has traditionally been concerned with  pollution
control and not with  comprehensive protection of
the  environment  from  the full rang*  of threats.
This  expanded  role  for  EPA  will  have  to  be
coordinated carefully with other federal  agencies.
Although  each  of  EPA's  major statutes  gives  the
agency a  broad  mandate to protect the environment
as a whole, impacts from  physical  alteration of the
environment have traditionally been the province of
others: e.g. the Fish and Wildlife Coordination Act
provides  •  central role  for the Fish and Wildlife
Service  in protecting habitats  for wild animals,
and   the   National    Environmental   Policy   Act
establishes  the  responsibility  of each federal
agency to consider alternatives to environmentally
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harmful actions  that  it  proposes.   Our strategy
options   for   reducing   the  risks   of  habitat
alteration are not primarily for direct EPA action.
Instead,  they  involve  EPA working to convince the
entire executive branch to take concerted action.

a.  EPA could support the  development  of  a national
inventory  of  important  ecological  areas.    Wo
integrated   national   inventory   of   important
ecological areas currently exists.  If one did, it
would serve an important  function in organizing a
broad range of federal, state,  local, and private
preservation  efforts,  as  well as  demarking areas
that should  be avoided by development  interests.
Several  of our  further  strategy  options  listed
below are practical only if they can be targeted at
designated, limited  land areas.

Partial   inventories  do   currently   exist:   for
wetlands   and   endangered  species  habitat,   for
natural areas  in many  states,  and by  the Nature
Conservancy in many areas.   They can serve  as a
starting   point   in  developing   the   national
inventory.  The most  difficult aspect  of developing
a national inventory may be reaching a consensus on
the  criteria  defining   lands   that   are  to  be
included.   Habitat  preservation   is  motivated by
various concerns  --  protecting genetic diversity,
open  space,   land  for   recreation,  endangered
species, game  species,  wilderness  -- each of which
suggests different areas  on  which  to  focus.   Some
areas to be included in such an inventory would be
key wetlands,  old growth forests, critical habitats
for endangered species, and unique ecosystems.

A planning process might  follow  completion of the
inventory:     assessing  the  condition  of   the
inventoried areas, evaluating threats to them, and
establishing   priorities   and    strategies   for
preserving the most vulnerable and important ones.

S.10.1     Develop  a  nationwide   inventory  and
preservation plan for important habitats.  NR

b.   A  second  strategy option  is  to  consider an
executive order that will  restrict federal actions
encouraging  development  of  important  ecological
areas.   Most   actions altering  important habitats
are   undertaken   by   private    individuals   or
corporations.  Direct regulation of the vast number
of such actions is clearly infeasible.  However, a
substantial portion  of such actions  are probably
instigated   by    (e.g.,    accelerated   economic
development subsequent to completion  of  a federal
water  project),  subsidized  by   (e.g.,  clearing
forest  land to plant federally subsidized crops),
or licensed by (e.g., federal environmental permits
for a new factory) the  federal government.  If each
federal   agency   can  be  required  to  consider
alternatives  to  supporting  any   habitat-altering
action, many such actions  will not go forward.

The proposed executive  order  could  be modeled after
the existing wetlands  executive  order (EO 11990).
Under this order, each federal agency "shall avoid
undertaking  or   providing  assistance   for   new
construction located in wetlands unless the head of
the agency finds  (1) that there  is no practicable
alternative to such construction, and (2) that the
proposed action  includes  all practicable measures
to minimize harm to wetlands which may result frc.
such use."  Several  modifications to the wetlands
approach might be considered for a habitat order:

1.   Extend the  coverage  to any  of a  series  of
inventoried important ecological areas,

2.  Extend the coverage to  include non-construction
activities such as farming and timber harvesting,

3.  Seek  legal authorization for citizen suits to
enforce compliance with the order.

It is clear that such an  executive order could be
implemented only if the  land areas to which  it
applied were:  a)  Clearly designated in advance, and
b) Limited in  geographic extent (probably well less
than 1X of the  U.S. land  area).    The  inventory
would be critical.

Several  other elements  of  current or  proposed
strategies for protecting  wetlands  might  also  be
extended  to  designated   ecologically  important
habitat areas, for example,  adoption of  a "no net
loss" goal, enactment of a requirement to obtain a
permit  before destroying  them,  or  adoption  of  a
requirement for  federal agencies  to mitigate  or
offset any damage they do to them.

S.10.2  Restrict  federal activities that contribute
to  development  of  ecologically  important  areas.
MI, REGS, *P,  TH, TAX,  NR

c.  The most  direct, though  expensive,  option for
preserving important habitat areas  is  to  acquire
them.   EPA  could support  substantially  increased
federal  acquisition  of  these  areas.    Several
federal programs  provide funding  for  acquisition of
natural areas,  the  largest  among them  being the
Land and Water Conservation Fund  (LUCF).  In recent
years these programs have been funded at less than
$200 million  annually, far less  than their levels
in many years during the  1970's  and early 1980's.
The LWCF now contains an unappropriated balance of
about  18  billion,  with   receipts  mostly  from
offshore oil and gas leasing of about $900 million
being added annually. Legislation establishing the
LUCF  argued  that  the  federal   government  should
invest  the  funds  it obtains  from  depleting the
nation's   oil   reserves    in   a    countervailing
preservation  effort.      Increasing  the   annual
appropriations  from the   LWCF   for  federal  land
acquisition   to  $1  billion  or  more  would  be
consistent with  this argument.   Two other actions
should accompany this increase in appropriations:

1.  A plan could  be developed that determines which
land  is  most  worthy of  federal  acquisition  to
preserve its  ecological value.   The LWCF finances
acquisition   of   properties   serving   somewhat
differing purposes:  urban  recreation and historic
preservation,  as well as  ecological preservation.
It  is  important  to  obtain the  maximum ecological
value from the portion of  the  LWCF spent for this
purpose.   A  careful, long-range acquisition plan
focusing on lands of  national ecological importance
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could help  in obtaining  the  greatest  ecological
bang  for the  buck  (see  (MantelI,   1989)  for  a
general  discussion of LUCF).

2.    Careful  consideration  could  be  given  to
acquisition  of  less than  full interests  in  land
(e.g., conservation easements) when doing so would
fulfill  preservation goals at reduced cost.

S.10.3  Drastically increase federal acquisition of
important ecological areas and open space.  NR

d.     The   federal   government   currently   owns
ecologically important  habitats:   these  should  be
identified and managed to  assure  preservation  pf
their ecological  communities.   The  multiple  use
agencies  (US  Forestry Service  and the  Bureau  of
Land   Management)   seem    to   identify   their
ecologically important  landholdings satisfactorily,
and conduct  open  and arguably successful planning
programs  to  determine  how  to manage  the*.   It  is
unclear,  though,  that  other  land-owning agencies
(000, DOE, those holding assets of failed financial
institutions)    have    similar    procedures.
Ecologically important federally owned land should
not be developed or sold; it should be preserved in
federal  ownership and managed appropriately.

S.10.4   Identify  important  habitats now  in federal
ownership and  manage then  to preserve  ecological
communities.    NR

e.     While   federal   habitat  preservation   is
important, support of state,  local, and private
preservation programs  would  be beneficial  also.
There are numerous diverse ecological preservation
efforts  under  way  relying  on  tax  abatements,
zoning,   local  ordinances,  charitable trusts,  user
fees, hunting stamps, volunteer groups, educational
campaigns, and many  other  mechanise*.   Innovation
is  rampant.     EPA  could  provide  an   important
organizing service  by  evaluating  many  of  these
programs,  publicizing  the  successful   ones,  and
providing technical assistance to organizations in
replicating  the*.  There exist many initiatives to
preserve wetlands areas that appear successful. EPA
should  explore   these   initiatives  for  use  as
possible sources of  innovation in other  areas.

S.10.5   Support state,  local, and private efforts
to  preserve  important habitat areas through  tax
breaks  and  technical asstistance.    SIT,  MI,  TH,
TAX, NR

References

Mantel I,  Michael;  Phyllis  Myers;  and   Robert  B.
Reed.  "The Land and Water  Conservation  Fund: Past
Experience,  Future Decisions".   Audubon Wildlife
Report 1988-1989.  1989. pp.257-281.

Swift, Bryan L.  "Status  of Riparian  Ecosystems in
the  United  States".   Water  Resources  Bulletin,
Volume 20. No. 2. April 1984.

Tiner,  Ralph  W.,  Jr.    Wetlands  of  the United
States:  Current  Status and Recent Trends. Newton
Corner, MA:  U.S.  Oept.  of the  Interior,  Fish and
Wildlife Service. 1984.

USD A.  Council  on   Environmental   Quality  (USD A
figures). Environmental Quality 1987-1988.
A.11  Hazardous Waste

A.11.1  Risk Background

In  1985  the amount of hazardous  liquid and solid
wastes managed  in  accordance  with requirements of
Subtitle C of the federal Resource Conservation and
Recovery  Act  (RCRA)   totaled about  275  million
metric tons  (USEPA, 11/88).   Other  wastes subject
to the less-stringent  requirements of Subtitle D of
RCRA totaled a much larger amount, greater than 11
billion tons (USEPA, 10/88).   These wastes included
industrial  nonhazardous  wastes (7  billion tons),
wastes associated  with oil  and gas  production (up
to  3.5 billion tons), and mining wastes (greater
than 1.4 billion tons).

There are risks associated with all of these wastes
from the point  at  which  they  are created, through
handling,   transport,  treatment,   and  disposal.
Although  these  risks  have  not  been  precisely
quantified, EPA indicates that the greatest current
risks are most  likely from  those wastes which are
not currently  regulated, and  from facilities:   1)
for which  adequate management standard*  have not
yet been set,  2) that have  not been permitted, or
3)  that  are  not  in  compliance  with  existing
standards (USEPA,   1989).

Assuming  that these  problems are  addressed,  the
greatest  future risks may come  from  wastes  for
which there is  not adequate recycling, treatment,
or disposal capacity,  if  such a capacity shortfall
arises.  However,  it  is  very  difficult to predict
whether there will  be  any future capacity shortages
until   final   waste   treatment   standards   are
established;   companies  select   alternatives  to
current  land disposal practices; and  states,  the
Federal  government,   and generators determine to
what  extent  reduced  creation of  waste  will  be
successful  (GAO, 1988).

Past mismanagement of hazardous materials has  left
the United States with  a  legacy  of contaminated
sites.   EPA  has   identified  approximately 30,000
possible sites, 1,226 of which EPA has  included or
proposed  for inclusion on  the National Priorities
List (NPt).  EPA has  determined that 17,500 of the
sites  do   not  qualify   for   this  list  and  is
investigating   the rest  (EPA,  1989).   EPA  has
projected  that the  NPL  could grow to some 2100
sites  in   the  next  ten years,  while  the  U.S.
Congress1 Office of Technology Assessment projects
that  the list  could  grow  to  greater  than 10,000
sites  (OTA, 1989).  OTA based this figure on its
estimate  that the  total  number of potential sites
could  range from  130,000 to  439,000,   taking  into
account current hazardous waste treatment, storage,
and  disposal  facilities;   municipal   landfills;
mining   waste  sites;  non-petroleum   underground
storage tanks; federal facilities; and other sites.
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Few   people   disagree   that   the   extent   of
contamination  of  air,  water, and  land fro* these
contaminated sites has  been very significant,  yet
the   health   problems   caused   by   and   risks
attributable to these  sites are very difficult to
quantify.   The potential  pathway of exposure most
often  found is  groundwater  contamination;  other
significant  pathways  at some sites are windblown
particles,  direct exposure  at unrestricted areas,
and surface water  contamination. Recent studies of
NPL sites indicate that less than thirty percent of
such sites - perhaps less than ten  percent - at the
time of  discovery pose significant current health
risks  which are  of  concern  in  the short  term
(Travis and Doty,  1989).  Risks which may occur in
the future are considered to be  more significant at
mor*  sites, but  are usually estimated based on
hypothetical exposure scenarios. Possible economic
risks  include  loss  of  home  values,  loss  of  a
community's economic activity and development,  and
loss of current and  future water supplies.  Current
and  potential   environmental degradation  is  not
well-assessed  but is thought to be  significant; in
1984 EPA estimated that  about  half  of  NPL  sites
pose threats to sensitive areas such as freshwater
wetlands, coastal wetlands, and critical habitats
(OTA, 1989).

A.11.2  Policy Background

Hazardous  waste management and site remediation
have been two of the most debated and controversial
environmental  issues of the last decade.  Congress
has established a detailed  set  of guidelines  for
tackling these problems, most recently through the
Hazardous and  Solid Waste  Amendments  Act  of 1984
and the Superfund  Amendment  and  Reauthorization Act
of 1986.  The  issues  remain controversial,  but in
recent years there has emerged greater consensus on
a  number of  points,  ranging  from  an  increased
emphasis  on pollution  prevention  techniques,  to
more  targeting of  Superfund  resources to  those
sites  posing  the  greatest   current risks.   To  a
great  extent,  the   following   strategy  options
reflect emerging points of  agreement.

A.11.3  Possible Strategy Options

Hazardous Waste Management

a.  Reduce  the generation  of hazardous  wastes bv
using  EPA's authorities broadly.   Our  primary
strategy  option is  that EPA  could  increase  its
efforts  to  promote  the   reduced  generation  of
wastes.  Many analyses indicate  that the amounts of
wastes currently generated  could be substantially
reduced   through   changes    in   raw  materials,
production  processes,  and products.  For example,
Congress1 Office of Technology Assessment concluded
that a reasonable goal would be for
United States generators as  a whole to reduce their
generation  of  all  types of  wastes of a hazardous
nature entering all media by 10 percent each year
for five years (OTA, 1986).   EPA could take action
to,  and   where   necessary  seek  Congressional
authority  to:   1) require   companies to  conduct
audits of  their production  processes  in order to
 identify and evaluate the feasibility of generation
 reduction  opportunities;  2)  require companies to
 track their progress at achieving reductions and o.
 their  goals/plans  for   future   achievements;  3)
 assist states  in implementing such programs  and in
 providing  technical  assistance  to  generators who
 need such help; and A)  continue  to enforce against,
 and establish  needed standards for,  generators and
 waste management facilities.

 This  effort  to press  for reduction  should  not be
 seen  as solely  a  RCRA  -  based  program.  Other
 statutory authorities  could be used  where possible
 and appropriate, e.g.  SARA Title  III, TSCA,  or the
 Clean  Air  or  Water Acts.   Multimedia permitting
 concepts could be explored and tested.  Provisions
 in single-media statutes that cross reference other
 media should be exploited to press for the reduced
 generation of  all forms of hazardous wastes  and to
 prevent  shifting  of   wastes  from  one medium to
 another.

 S.11.1     Use  EPA's   authorities   broadly  and
 creatively to  reduce  the generation of  hazardous
 wastes.  PP, INFO, REGS,  ENF

 b.  By ensuring that waste reduction goals are met
 and  bv adding new facilities  is necessary, help
 states  acheive  adequate  treatment   and   disposal
 capacity.  Our second  strategy  option is  that EPA
 could  continue under  its SARA authority to work
 with  states  to  facilitate planning  to  determine
 whether additional waste  handling capacity will be
 needed in the  future and if so,  to help ensure that
 necessary facilities are constructed.  To  help with
 the  former  task,  EPA  could establish   necessary
 waste  treatment  standards which are protective of
 public  health  and  the  environment,  and  which,
 consistent with our first strategy option,  require
 states  to  set concrete  goals for how  much waste
 generation  will   be   reduced  in  their   states.
 Generation reduction should be the preferred method
 for ensuring capacity.   States could  be required to
 explain  how  they will ensure that  such  reduction
 goals  are  met.  EPA  could also  monitor   industry
 efforts  to reduce  waste generation,  the  extent to
 which  economic  incentives  and  market  forces are
 spurring new capacity, and  industry's  choices of
 new  treatment  technologies as they move  away from
-land  disposal, and communicate what EPA   finds to
 the  states.    EPA  also   could  issue  any  further
 needed   location  criteria  for  facilities,  and
 facilitate the exchange of information among states
 regarding  successful  or potentially  successful
 approaches to  facility siting.

 S.11.2  Help states achieve adequate treatment and
 disposal  capacity  --  by  ensuring  that  waste
 reduction  goals   are   met,   and  by  adding  new
 facilities if  necessary.  PP, INFO,  REGS

 c.   Support  the  product stewardship concept.  Our
 third  strategy option  is  that,  in order  to  better
 address  problems associated with small generators
 of hazardous waste,  EPA could promote the concept
 of  "product stewardship".    Under  this   concept,
 large  producers  of   chemicals   work  with their
 customers  to  help engender  responsible  use and
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handling  of   chemicals  and  associated  wastes.
Certain chemical companies have already begun such
programs,   in   part  because  of   concerns  over
potential   liability  for   chemicals   that  they
manufacture.   EPA  should study and implement, and
where  necessary seek  Congressional  authority  to
implement,  measures  to  promote   such   product
stewardship.   One   attractive  option  may  be  a
front-end  tax  for  certain  chemicals  or  products
(e.g.  lubricating oils,  solvents) which works as a
deposit, with  a  refund payable when quantities of
the chemical or product are turned  in to designated
facilities  operated by the seller,   whether  for
recycling, proper treatment,  or disposal (Russell,
1988;  Bohm,  1981).  Such  a  deposit-refund system
would provide important incentives:  first, there is
an  incentive  to follow  rules  for  proper  disposal
and   to  recapture  would-be  losses  from   the
production process;  second,  there  is  an incentive
for producers  and  users to  look  for non-hazardous
substitutes;   and    third,   agencies'   monitoring
problems  will   no  longer   include   the  nearly
impossible  task  of  preventing illegal  dumping  of
small   quantities   at   dispersed   sites   in   the
envi rornent.

S.11.3  Support  the "product stewardship" idea --
a manufacturer has  a responsibility to contribute
to appropriate use. reuse,  recycle,  and disposal of
his products.    PP,  INFO, MI, MR

d.   Simplify  RCRA  regulations and  provide  a  more
flexible  array  of hazardous  waste  management
standards.  Our fourth strategy option is that EPA
could  simplify and  where  necessary  recommend  to
Congress simplifications of, the  RCRA regulatory
framework  in   order to  provide  the   agency  with
greater  flexibility in  how  it  regulates wastes.
The current RCRA scheme with  its many categories of
wastes and  associated  requirements is too complex
and  inflexible.   The   result  is   that  important
wastes which do  not fit into categories regulated
to  date are  virtually  unregulated.   The  system
leads   to   loopholes   and  confusion  and  poor
compliance on the part of the regulated community.
The system should be made more flexible so that EPA
is  able  to apply   to  any  particular waste  the
management standards which the agency finds to be
adequately protective of public health.

S.11.4   Simplify RCRA  regulation* and provide a
more flexible  array of hazardous waste management
standards.  REGS

Cleanup of Contaminated  Sites

The first two of our strategy options are related.
They  apply to the  Superfund program,   the  RCRA
corrective  action   program,  and  other  federal
cleanup programs:  1) EPA could  focus its cleanup
efforts on discovering  all  sites posing significant
current  risks,  i.e.  those of  concern  in  the
short-term, and then quickly  taking steps necessary
to  bring  them  under   control,  using  permanent
cleanup techniques  to  the extent practicable; and
2)  as  its  next priority, EPA could  develop and
apply at sites which pose future risks technologies
which  achieve  permanent  cleanup  at  reasonable
costs.    Together,   these  two  strategy  options
establish an  approach  to cleanup which emphasizes
finding and acting at sites which pose the greater^
and more  immediate risks  first;  this  approach also
emphasizes   a  commitment  to  the  accelerated
development  and  use of  truly  permanent  cleanup
technologies,  which  we  define  to  mean treatment
technologies  which  destroy, detoxify,  or recover
contaminants.

a.    Identify  contaminated  waste   sites  posing
immediate threates  and  Quickly bring  them  under
control.    With  respect  to   the  first  strategy
option, recent  reviews  of EPA's Superfund program
have   concluded  that   there   has   been   little
correlation between  the risks posed  by  sites and
the  sites  given  priority  for  attention  by  EPA
(Travis  and  Doty,  1989  and  OTA,  1989).   Those
reviews  and  EPA's  own  recent  management  review
(USEPA, 1989)  have recommended  that EPA should give
priority  to   those  sites  posing  immediate  or
short-term risks.  Measures should be  taken quickly
to  eliminate  such   current   risks   and,   where
necessary, stabilize  sites to control contamination
sources until  final  remedies can be applied.

An  important   corollary  to  acting  first  at  the
highest  current risk  sites is  that  the  highest
current  risk  sites  must  be found.   Therefore  we
also urge,  as did the  OTA review,  that  EPA much
more aggressively attempt to  discover sites  which
pose significant health, environmental or economic
risks.  One way to do  this which EPA and Congress
should  pursue  is   to   require hazardous  waste
generators,  transporters, and disposers to disclose
where  they   disposed   of  wastes   in  the  past.
Authorities   for   such   information   gathering
authority may  be  found  in TSCA Section 8,  CERCLA,
and perhaps other statutes also.

S.11.5   Identify  contaminated  waste  sites posing
immediate threats and  quickly  bring them  under
control.  REGS, ENF

b.    Identify  long-term cleanup  and  permanent
cleanup techniques.   Our  second  strategy option is
that  EPA could  give   much greater   emphasis  to
accomplishing   long-term   cleanup   using   truly
permanent  remediation  technologies,  i.e.  those
which  destroy,  detoxify  or  recover  contaminants.
The reviews noted above have concluded that EPA is
not   giving   sufficient   consideration   to  the
permanence of  the remedies being implemented.  One
review  which   examined   fifty  of  the  74  final
decisions made by EPA during fiscal year 1987 found
that only nineteen percent of the  source remedies
afforded   permanence   to   the  maximum   extent
practicable.   Forty-five percent  of  the remedies
were  found  to  provide  minimal  permanence (Travis
and Doty, 1989).   We suggest  that  EPA devote far
greater attention to fostering  the development and
use  of   technologies   that  destroy  or  recover
hazardous materials.  This suggestion goes further
than EPA has proposed in the Agency's recent review
and  strategy  (EPA,   11/89).     EPA  commits  to
technologies  which provide long-term  effectiveness
and   reliability,  but   doe*   not   commit   more
specifically   to  technologies  that  destroy  or
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recover  contaminants.    We  also emphasize  that
remediation  at  any particular  site  should, after
application  of  any initial measures  necessary to
address  current risks,  in  general be  held until
permanent  measures  are  available at  reasonable
costs.

S.11.6   Address  future  risks  from  contaminated
waste sites  by developing  and  applying permanent
cleanup techniques.  S*T, REGS, EMF

c.    Encourage  third-party  cleanups   and  though
enforcement.    Our   third   strategy  option  for
contaminated  sites  is that  EPA  could encourage
third-party  cleanups  through greater  and tougher
enforcement  and the use  of reasonable settlement
procedures.   This suggestion also  is  consistent
with those  of recent reviews and with  recent  EPA
management  initiatives.  Possible approaches  to
accomplishing    this    goal    through    existing
authorities  would be  aggressive searches  for more
potentially   responsible  parties at   sites  and
obtaining  cleanup orders through the  courts,  as
well as using other strong enforcement powers which
EPA has but  has not  used, e.g.  penalizing parties
who do not  cooperate.   Another  approach worthy of
exploration  is  the  establishment of  arbitration
procedures   or   special  courts   to   help  speed
agreements.   In addition,  we recommend  that  EPA
review  the  current   liability,   enforcement,  and
settlement scheme to determine whether it might be
modified  to  involve  smaller responsible parties
more  effectively  in  paying  for  cleanups,  while
retaining all of  the  incentives that  it currently
provides for third-party cleanups and better waste
management.

S.11.7   Encourage site cleanup by third parties
through   enforcement   and    use  of   reasonable
settlement procedures.  REGS, EMF

References

Bohm,  P.   "Deposit-Refund   Systems:   Theory  and
Applications  to  Environmental,   Conservation  and
Consumer   Policy,1*   Resources   for   the   Future,
Washington, O.C.
1981.

Environmental   Protection  Agency,   "Report   to
Congress:  Solid  waste  Disposal  in  the  United
States,  Volume  1", EPA630-SW-M-011.  Washington,
D.C., October
1988.

Environmental   Protection  Agency,   "The   Waste
System", Washington,  D.C., November 1988.

Environmental  Protection  Agency,  "A  Management
Review of the Superfund Program," Washington, D.C.,
June, 1989.

Environmental Protection  Agency, Office  of Solid
Waste and  Emergency  Response, "Strategic  Plan FY
1992-1995," Washington, O.C. November 30,  1989.

General  Accounting   Office,   "Hazardous   Waste:
Future  Availability  of  and  Need for  Treatment
Capacity   are    Uncertain,"
Washington, D.C..
April 1988).
GAO/RCED-88-95,
General Accounting  Office,  "Mew Approaches Meeded
to Manage RCRA," GAO/RCED-88-115, Washington, D.C.,
July 1988.

Office of Technology Assessment, "Serious Reduction
of  Hazardous  Waste: For  Pollution Prevention and
Industrial    Efficiency,"     Washington,    O.C.,
September 1986.

Office  of Technology  Assessment,   "Coming  Clean:
Superfund Problems Can be Solved .... OTA-ITE-433,
Washington, D.C., October 1989.

Russell,   C.S.   "Economic    Incentives   in   the
Management of  Hazardous  Wastes",  Columbia Journal
of Environmental Law 13, 1988, pp 257-274.

Travis, C.C. and Doty, C.B., "Superfund: A Program
Without  Priorities,"   Environmental Science  and
Technology, Vol. 23, No. 11, 1989.
A.12  Municipal Sol id Waste

A.12.1  Risk Background

Americans generated approximately 160 million tons
of municipal  solid waste  in 1986.   With current
purchasing and disposal  practices  this amount was
expected to increase by  approximately IX per year
to a  total  of 193 million tons by  the  year 2000
(USEPA,  1988c).   By  far,  the dominant method for
disposal of these wastes  at present is landfill ing,
but   an   estimated  one-third  of   the  nation's
landfills  are expected  to  close by 1991  (EPA,
1988c).  Rathje (1989)  notes  that, on average, most
landfills  have   always  had only  a  five  year
remaining  lifetime,   since  they  were  routinely
designed for a ten-year  time horizon;  what is new
now,  however,  is  the  vastly  increased  cost  and
difficulty in  siting replacement  facilities.  Mew
landfills are proving far more costly and difficult
to site than in the past.

With  the exception of  waste  reduction (generating
less  waste material  in the  first  place),  each of
the principal  methods for solid waste management --
landfill ing,   composting,  incineration,  and  even
recycling -- has potential  risks for public health
and   the  environment   if   implemented   poorly.
Landfill ing   and  composting   pose   health   and
environmental  riski  associated  wiU.  teaching  of
chemicals  into  both  surface and  groundwater,  and
gaseous  emissions  to   the  air;   they also  pose
welfare risks associated with both the prohibitive
costs  (to  many  communities)  of  designing  and
operating new landfills and of safe closure of old
ones, with the side effects of  operations (odor,
dust, truck traffic, etc.),  and with  the related
social and political stigma of siting new  landfill
facilities.

Incinerators involve many similar hazards, but, if
poorly   designed   and    operated,    also   more
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concentrated risks associated  with  the release of
toxic metal contaminants,  acid gases,  and organic
toxins to the air.  Even recycling may  involve high
direct exposures  of  waste management  workers and
neighbors  to  heavy  metals,  toxic  chemicals,  and
other hazardous materials in the waste stream.

As  yet,   there  has   been  no  definitive  risk
comparison among these  management  methods, though
•  more   limited  comparison   of   landfills  and
incinerators was  conducted in  1987 (ESRG, 1987).
Such a comparison is  needed to  provide guidance for
choices  among  management  methods,  but   the  best
choice   is   likely  to  vary   from  location  to
location.  Similar comparisons are  also  needed to
identify the overall  risks  of  alternative product
materials  (for  example, paper versus plastic  or
styrofoam)  throughout   their   life  cycles  from
extraction  through  disposal  (National   Research
Council,  1990).

In short,  therefore,  managing  current and future
solid  wastes  involves  a potential  for   at  least
medium-degree   risks  to hunan  health   and  the
environment,   and  medium to  high  risk   to  human
welfare  due   to the  rapid  escalation  of  wacte
management costs  and diminishing availability  of
disposal  capacity.
A.12.2  Policy Background

The  National  Environmental   Policy Act  of  1970
charged all federal agencies explicitly to "use all
practicable  means...   to  enhance  the quality  of
renewable  resources   and  approach  the  maximum
attainable recycling of depletable resources" (42
USC  4331.b.6).   EPA has had  additional  authority
since  1976  for  policy  initiatives  to  promote
municipal  solid  waste reduction   and  recycling,
including  a  specific  mandate to  publish  federal
procurement  guidelines for including  tht  highest
practicable  percentages of recovered materials in
products  purchased.   By   1987,  however,  it  had
produced only one such guideline, and a second was
promulgated  (and  four  others  promised)  only after
a 1987 lawsuit; several were  produced in 1988 and
1989.  In  practice, EPA has  limited its  role to
modest amounts of  technical, assistance to state and
local  agencies-.    Federal  policy  initiative*  and
resource commitments for HSW  management,  and even
for HSU research, have been almost nonexistent.

Primary  policy  responsibility  for  solid  waste
management has traditionally rested with municipal
and  county governments,  with some involvement of
state  governments  (Kelosi,   1981,   1988).   Their
exercise   of   this  responsibility,  however,  is
pervasively  influenced by EPA regulatory policies.
EPA  requirements  in the 1970s led  to the cessation
of   open   burning  and  closing   of  dump*,  the
abandonment of most ocean dumping,  the accumulation
of greatly increased quantities  of ash and sludge
from air and water pollution control  equipment, and
the  diversion of  waste  streams  from all  these
destinations into  a far smaller number of sanitary
landfills.  Therefore,  along with population growth
and  increases  in per  capita consumption,  these
policies contributed  to the accelerated fill  rate
of existing  landfills,  which has precipitated  the
current crisis of waste disposal capacity.

Similarly,  more   recent   EPA  policies  --  both
existing and  anticipated  --  are among  the major
forces  shaping  current  local decisions  in solid
waste management.   These  policies include present
or proposed EPA regulations ending the disposal of
hazardous  wastes   into  municipal  landfills  (RCRA
Subtitle  C);  setting   stringent  standards   for
landfill construction and operation and financial
assurance for safe  closure (RCRA Subtitle 0);  and
regulating   emissions  and   ash  disposal   from
municipal solid waste combustion facilities.   The
costs and  restrictions  imposed  by these  sets of
regulations  are   probably   the  most   important
influences, along with political opposition to new
waste facility siting,  driving  the  current trend
toward aggressive waste reduction and recycling.

The  EPA  Administrator  in   1989  promulgated  an
explicit  policy   statement   endorsing  pollution
prevention through waste reduction as EPA's primary
approach to environmental  protection (EPA, 1989a).
The  Strategic  Plan prepared by  EPA's Office  of
Solid Waste and Emergency Response (OSUER) for FY
1992-1995  identifies   as  its . first   goal   the
minimization of the quantity  and toxicity of waste
created by commercial,  domestic,  and governmental
activities.  Its second  objective, next in priority
after encouraging hazardous  waste  reduction  and
recycling, is to  reduce the quantity of municipal
solid waste  disposed of  or  sent  to  combustion
devices from an estimated 160 million tons in 1986
to 133 million tons by 1992 (USEPA, 1988c, 1989d).

In  addition  to  these  federal   policies  directly
influencing local  solid  waste  management decisions,
several  other potential  strategies for solid waste
reduction are exclusive  prerogatives of the federal
rather  than  local  governments.   These  include
quality,  labelling,   and  packaging standards   for
many products sold in interstate commerce; federal
procurement standards, as  the federal government is
probably  the  single  largest customer  for  many
products; federal  tax policies  and subsidies (for
instance, third-class postal  rates);  and policies
for  forest products and minerals extraction, many
of which underprice or subsidize the extraction of
virgin   materials  that   compete   against  waste
reduction and recycling  of materials already  in  use
(Kovacs, 1988).

Some   policies   simply   are   more   effectively
administered  by   the  federal  government  than by
state   and  local   agencies.   Examples   include
environmentally   harmful   trade  standards   for
products,  such  as excessive  brightness standards
for paper products (which  increase water pollution
due  to  chlorine  bleaching and  limit  the  use of
recycled paper fibers); deposit/refund systems  for
many nationally marketed products; and restrictions
on the heavy-metal content of consumer products.

Finally,  proposals have  been mad* that  EPA  use
federal  mandates  to  force states  to  assure more
aggressive  siting  of  incinerators and   landfill
                                                     98

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capacity.   Such  capacity  assurance requirements
have  already  h*«n  enacted  for  hazardous  waste
disposal facilities,  but  not yet for nonhazardous
solid waste disposal capacity.
A.12.3  Possible Strategy Options

Any  risk  reduction  strategy for  municipal solid
wastes  ought  to include two  basic elements.  The
first   is  a  set  of  strategy  options  for waste
reduction  and  recycling,  to  reduce,  insofar  as
possible, the volume and toxicity  of  the materials
that are discarded as wastes in  the first ptace and
the  costs  of  disposing  of  the*  (USEPA,  1987,
1988a,b).  The second is a  strategy to assure there
are  adequate  and safe  facilities  for handling of
the  remaining  wastes,  using  a   risk-Minimizing
combination of the known technologies -- landfills,
composting, combustion, and any others that may be
identified  --   that   are  available  for  waste
treatment  and  disposal.   A  third  element,  the
cleanup of  contaminated sites of  past solid waste
disposal,  is  discussed  elsewhere  as  an  issue  of
hazardous substance site cleanup (Superfund).

a.    Use  existing  authorities to  reduce  toxic
materials   in  consumer  products.     EPA   has
authorities  under  existing  legislation,  chiefly
RCRA, but also TSCA, that it could  possibly use to
undertake a leadership  role in waste  reduction and
recycling.   These  authorities  are  significantly
underutilized.  If  EPA  were to use them to their
full potential, it  would signal a serious federal
commitment;   it  would   expand   the  markets  for
recovered materials,  providing  both  encouragement
and necessary support for local  waste reduction and
recycling   initiatives;  and  it  would  stimulate
needed   economic    investments   in   industrial
modernization  to  make more  efficient  use  of
materials and energy.

S.12.1  Reduce toxic materials in consumer products
and  expand  markets for  recovered  materials.   PP,
INFO, HI, REGS, ENF.NR

b.   Eliminate  federal  standards,  subsidies  and
procurement specifications  that discourage waste
reduction  and  recycling.    Some  of  the  most
important strategies for reducing risks from NSW do
not  require   promulgating  new   regulations   or
subsidies,  but  simply eliminating  old ones whose
effects  are  costly  and perverse  (Bower,  1977,
1989).   An  example   is   standards   for  paper
brightness  that   make  paper  far  whiter  than
necessary,  which   requires  extra   bleaching  that
increases water  pollution  and  limits the  use  of
recycled fibers.   Another  example  is the  federal
subsidies and  tax  benefits for the extraction of
virgin  materials,   such as  minerals and  forest
products,  that  compete directly against  recycled
materials.  A  third example  is   the subsidized
postal rates for commercial  third class mail ("junk
mail").  Finally,  procurement specifications that
require virgin  materials content  could often  be
replaced by performance requirements  that  could
also be met (sometimes  more cheaply) by recovered
materials.
Strategically,  what  needs  to  be done  is:  (1) to
create markets  (i.e.,  federal  purchasing, uniform
labelling of recycled rmaterials, etc.);  (2) create
supply (mandate recycling); (3) overcome barriers
(tax  subsidies  for virgin  materials, unnecessary
specifications): (4) reduce waste products (reduce
subsidies for junk mail, etc.).
5.12.2  Eliminate federal standards, subsidies and
procurement  specifications  that  discourage waste
reduction and recycling.  PP, MI

c.  Change tax structure to promote waste reduction
and  recycling.    A  basic  flaw  in  current waste
management  is that  in most  localities,  disposal
costs are paid out of property tax revenues rather
than  in  proportion   to the  amounts  of  waste
discarded.  This system provides  no incentive for
those who dispose of  wastes  to reduce or recycle:
waste  disposal  seems  "free."   Correcting  this
disincentive, by charging  for both  the human and
the  environmental  costs  of  waste  management  in
proportion to wastes generated, is a fundamentally
important principle  for  solid waste  management.
One form of such a charge is already being  imposed
locally in some communities,  such as Seattle (and
in  many cities  in  Europe),  where  residents  are
charged by the container for  the  amounts of waste
generated.

A useful supplement or alternative at the national
level would be a raw materials tax, based on weight
and  density  and  levied  at  the   point of  first
manufacture of the materials  into primary products.
Proceeds  from the tax  could be  redistributed  to
local governments by formula and restricted to use
for  recycling  and   waste   management  services.
Relatively simple  refinements  could be added  to
cover exports and  imports, and to offset the equity
impacts of an extra tax on material goods.

S.12.3  Tax wastes and virgin materials to promote
waste reduction and recycling.  MI, TAX, NR

d.      Deposit-refund   systems.      A   national
deposit-refund system for lead-acid batteries would
be an effective and efficient  strategy for reducing
this major type of toxic waste materials.  It would
also  provide a model  for  other   problem  wastes.
This approach would  involve  a front-end tax which
works as a deposit,  with a refund payable when the
battery is turned in  to a designated facility for
recycling or  safe  disposal  (Russell,  1988; Bohm,
1981).  Such  a  system would  provide an effective
incentive for safe management  rather  than haphazard
discard.   The approach  could be  applied  also  to
other "problem" products such as tires, car hulks,
used oil,  and packaging containers.

A deposit-refund  system is  only  a  mechanism for
segregating and collecting problem wastes and it is
of  little use unless  there  is a market  for  the
collected waste, or a safer method for disposing of
these wastes in concentrated rather than dispersed
facilities.
                                                     99

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S.12.4   Create deposit/refund systems  for  tires,
batteries,  car  hulks,  used  oil  and  packaging
containers.  MI

e.  Local planning for old facilities.  Many state
and  local  governments do  not now have effective
programs  to  assure adequate  future  capacity  for
solid waste  management.   EPA  could play  a  useful
information transfer role by identifying successful
strategies and disseminating information about them
--  even  supporting temporary transfers  of  staff
members  to  help other states emulate them  --  to
other states and local  governments.  Examples might
include   negotiated   siting   procedures   (e.g.
Wisconsin's),   risk   communication   strategies,
regional  cooperative  facility  development,  and
local  capacity  mandates   such  as  Florida's  and
California's.   EPA could  also  provide  training
assistance   for   state  and  local   solid   waste
planners, a category of professionals who have not
existed  in most  communities  and many states,  but
who now are widely needed.

The  major   unsolved   problem,  however,   is  the
declining capacity of permitted  waste management
and  disposal  facilities as  old  facilities  reach
their capacities and  few new  ones  are sited.  One
option for EPA would  be to seek a federal statute
mandating that each state assure adequate capacity
for  its  solid  waste streams,  backed  by threats of
federal  fund withdrawals,  similar to the mandate
that  now  exists  for  hazardous   waste  disposal
capacity.  It  is not  yet clear  that  such mandates
are  effective,  however,  nor  that  there is  any
fundamental  reason why all such wastes  should be
disposed of  in the state of origin.   Lacking such
justification,  such  policies would  represent  a
major new federal  intrusion into a policy arena in
which state  and  local  governments  have historical
primacy.

S.12.5   Encourage  better state  and local planning
for  solid waste  management capacity.   INFO,  REGS,
TH

References

Belzer,  R.  and  A.   Nichols.    1988.   Economic
Incentives    To    Encourage    Hazardous    Waste
Minimization  and  Safe  Disposal.   Prepared  for
USEPA, Office  of Policy, Planning,  and Evaluation
(Cooperative Agreement No. CR813491-01-2).

Bohm, P.   1981.    Deposit-Refund  Systems:  Theory
and  Application* to  Environmental,  Conservation,
and Consumer Policy.  Washington,  D.C.:  Resources
for the Future, Inc.

Bower,  B.   1977.   Economic  Dimensions  of  Waste
Recycling and Reuse:  Some Definitions, Facts, and
Issues.   Chapter  1 in D. Pearce and  I.  Walter,
Resource   Conservation:    Social   and   Economic
Dimensions of Recycling.  NY:  NYU Press.

Bower, B.  1989.   Economic, Engineering, and Policy
Options  for  Waste Reduction.  Paper  prepared for
the  National Research Council  Workshop  on  Waste
Reduction Research Needs, Annapolis, Maryland, May
8-9,  1989  (Board  on  Environmental  Studies  and
Toxicology, Comnittee on  Opportunities  in Applied
Environmental Research and Development).

Curlee, T.R.  1989.  Source Reduction and Recycling
as  Municipal  Solid Waste Management Options:  An
Overview  of  Government  Actions.   Prepared  for
USEPA, Office of  Policy,  Planning,  and  Evaluation
and   Office   of    Solid   Waste   (Contract   No.
DE-AC05-840R21400).    Oak  Ridge,  TN:  Oak  Ridge
National Laboratory.

Energy  Systems  Research  Group.   1987.    Managing
MSW:  A Comparative Risk  Analysis of  Landfill  and
Resource Recovery  Facilities, COMEG Policy Research
Center  Report,  ERSG Report  87-102.  Boston,  MA:
Energy Systems Research  Group.

Kovacs,  W.   L.    1988.    The   Coming  Era   of
Conservation   and   Industrial   Utilization   of
Recyclable Materials.   Ecology Law 0.   15:537-625.
Melosi, M.  1981.  Garbage  in  the Cities:  Refuse,
Reform,         and   the  Environment,   1880-1980.
Chicago: Dorsey.

Melosi,   M.     1988.     Hazardous   Waste    and
Environmental    Liability:    An    Historical
Perspective.  Houston L. Rev. 25:741-779.

National   Research   Council.     1990.       Waste
Reduction:  Research Needs  in the  Applied Social
Sciences.   Washington,  D.C.:    National  Academy
Press.

National  Solid  Waste   Management   Association.
1989.   Resource Recovery in  the United  States.
Washington,  D.C.:  NSWMA.

Opschoor, J.  B. and H.  B.  Vos.   1989.   Economic
Instruments for  Environmental  Protection.   Paris:
Organization    for   Economic    Cooperation   and
Development.

Rathje, W.  L.   1989.   Rubbish!   Atlantic Monthly,
December 1989:  99-109.

Russell, C. S.   1988.   Economic  Incentives in the
Management of Hazardous Wastes.  Columbia J. Envr.
Law 13:257-274.

TEN Foundation.  1989.   Environmental Labelling in
the EFTA-Countries.  Proceedings  of an  Invitation
Seminar,  August  28-29,   1989.    Sjobo,  Sweden:
Foundation TEM, University of Lund.

U.S.   Environmental  Protection   Agency.   1987c.
Waste  Minimization:  Environmental  Quality  with
Economic  Benefits.   Report  No.  EPA/530-SW-87-025
(Office  of  Solid  Waste  and Emergency  Response,
October 1987).

U.S.   Environmental  Protection   Agency.   1988*.
Future  Risk:  Research  Strategies for the 1990s.
Report  No.  SAt-EC-88-040 (Science Advisory Board,
September 1988).
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U.S.   Environmental   Protection  Agency.    19886.
Strategies for Risk Reduction Research.   Report No.
SAB-EC-OAOE  (Science  Advisory  Board,  September
1988, Appendix E).

U.S.   Environmental   Protection  Agency.    1988d.
Report  to Congress,  Solid Waste Disposal  in the
United    States,    Volume   II.     Report   No.
EPA/530-SU-88-011B,  October  1988.

U.S. Environmental Protection Agency.  1988e.  The
Solid Uaste Dilemma: An Agenda for Action.  Report
No.  EPA/530-SU-88-052  (Office  of  Solid  Uaste,
September 1988).

U.S.   Environmental   Protection  Agency.    1989a.
Pollution  Prevention Policy Statement.     Federal
Register 54/16.-3M5-47 (January 26, 1989).

U.S.   Environmental   Protection  Agency.    1989c.
Promoting Source Reduction and RecycI ability in the
Marketplace.  Report No. EPA/530-SU-89-066.

U.S.  Environmental  Protection   Agency.    1989e.
Characterization  of Products  Containing  Lead  of
Cadmium  in  Municipal  Solid Uaste  in the United
States,     1970    to    2000.     Report    No.
EPA/530-SW-89-015C.

U.S.    General    Accounting    Office.      1989.
Nonhazardous Uaste:  State Management of Municipal
Landfills  and  Landfill  Expansions.   Report  No.
GAO/RCED-89-165BR.

A.13  Pesticides

A.13.1  Risk Background

Pesticides   are   designed   to   control    living
organisms.  It should come as little surprise that
unintended  effects,  often  involving  non-target
organisms, are common once pesticides are released
deliberately  into   the  environment.     This  is
particularly   true  when   compared  with  other
environmental  issues  under ERA'S  mandate,  as
confirmed  in  EPA's  original Unfinished Business
report, where pesticide risks ranked in the highest
category.

Pesticides can  cause unintended health   risks  to
pesticide applicators and  farmworkers, and to the
general population through  the food supply, through
contamination of groundwater and surface water, and
through   air   contamination  (spray  drift   and
volatilization), and through long range transport.
Pesticides  may  also cause ecological  risks  by
direct  exposure  to  non-target  organisms  and  by
contaminating soil,  water,  air,  plant matter, and
pests  consulted  by  wildlife (NRC,  1987  and EPA,
1988).

There are about 850 active pesticide ingredients in
production that  potentially can cause ecological or
health risks (EPA,  1983).   In addition,  there are
hundreds   of   pesticidally   inert,    but   not
lexicologically  inert,  compounds which  are mixed
with  the active  ingredients  to make  formulated
pesticide products.   Products  registered  at  the
Federal  level have numbered as many as 50,000  (EPA,
1989).    Examples  of  pesticide   inert*   include
methylene   chloride,   formaldehyde,   and   othe
solvents or carriers, some of which have been  shown
to   have   potential   or   actual    health    and
environmental risks.  Risks  from pesticides result
from both active and  inert pesticidal  ingredients.

About  1.1  billion  pounds of  conventional active
pesticide ingredients are used in the United States
each year.   The agricultural  sector accounts  for
about   75   percent  of   pesticide   usage;    the
industrial,  commercial,  and  government   sectors
account  for about  18  percent;  and  the remaining 7
percent  is  used in homes and  gardens.  Pesticide
usage consists  of  about 58  percent herbicides, 24
percent  insecticides,  and 12  percent fungicides.
There  are  about   1   million  certified  private
pesticide applications (mostly farmers) and about
250   thousand  certified   commercial   pesticide
applicators (EPA,  1989).

EPA's  Pesticide  Program  categorizes  pesticides
according to the following uses:

a)  Agriculture (including farms and greenhouses)

b)  Post harvest use

c)  Urban (including household and garden use)

d)   Other  non-food uses (including anti-foul ing
paints,  structural pest  control,  disinfectants,
wood   preservatives,   forests,  right   of  ways,
nurseries,  and aquatic applications for weed and/or
insect control).

These  uses  of  pesticides  result  in  differing
exposure scenarios. A wide range of strategies can
be pursued  to  reduce  exposure to  and risks  from
pesticides.

A-13-2  Policy Background

Of all  EPA's regulatory  programs,  the pesticide
program is the oldest.  Long before EPA was formed
in 1970, pesticides were registered  under a  USOA
licensing regime.   Over the years,  the pesticide
regulatory  program has   changed   from a  program
designed to ensure efficacy to a program which has
a strong risk  reduction  component.  However,  the
pesticide program still differs significantly from
most of EPA's other programs.

First, the Congressional/legislative tie is to the
Agriculture  Committees,  not   the  Environmental
Committees.   Second,  the  program  applies  to  a
single class of substances across all the media in
which they may  occur.   For  example, pesticide use
has major  implications for  EPA's  wetland program,
non-point source program,  groundwater program, and
indoor   air  program.      Yet  until   recently,
integration mechanisms  were not  strong.   Third,
regulations under  the program are  to  be based on
comparison   of   risks   and   benefits,   unlike
technology-based or risk-based programs like EPA's
major  air,  water,  and waste  programs.   Fourth,
while the pesticide program has the  legal framework
                                                     101

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to  control  use  through  manufacturing  sale  and
transport, it has no  current  authority to control
pesticide    manufacture,    like    its   chemical
counterpart,  the  Toxic  Substance*  Control  Act
(TSCA).    In fact,  the  agency  having  the  most
influence on the pesticide-using community is USD A,
not EPA.  Information  received by  users in the past
through USDA extension agents, research  and data
collection   efforts—has   typically   focused   on
increasing crop  production  and quality,  which  may
have  conflicted  with  environmental  protection.
Finally,  the enforcement  mechanisms  crafted  in
FIFRA are  noticeably weaker than  in all  other  EPA
statutes.       This    combines   with    a   state
implementation  framework  that  provides  for  very
little  Federal   guidance  or   oversight  or  state
reporting.

A.13.3  Possible Strategy Potions

The  first possible  strategy  option  is  for  EPA
actively to encourage  the  reduced  use of pesticides
(NRC, 1989).  The volume of pesticide usage in our
country continues to grow  (EPA,  1989).  While safer
pesticides are  clearly a highly desirable  goal,
less pesticide use will most directly help achieve
reduced exposure  and environmental  burden  as well
as pollution prevention (EPA,  1983).  To encourage
farmers  in  this area,   higher  prices  could  be
developed  for prganically grown products  and more
acreage allotment could be given them.  This can be
achieved by:

1.  Providing incentives  for  increased farmer  use
of  integrated pest  management  (IPM) or  low  input
sustainable   agriculture   (LISA)    as  means  for
reducing  the general  use  of  pesticides.    This
includes encouraging the use of biologically-based
pesticides (such as microbials and biochemical*)
that are compatible  with both  approaches and may be
preferred  alternative* to  conventional  chemical
pesticides (NRC, 1989).

2.   Better  educating  farmers about  how  little
pesticide  they really need to us*.

A strategy to encourage farmer* to use  IPM and LISA
should  also  include  a  plan  to  encourage  the
development  and  Federal  registration of  preferred
safer alternatives.

a.   Encourage use of  integrated  peat  management.
There  are a broad  spectrum of market incentive*
which can  be used to encourage  IPM.  Various type*
of fee* or grant* with  payment structure* to reward
specific  behavior are  one approach.   EPA  could
consider   using  such   approaches  only   within
particular   sensitive   geographical areas.     An
alternative   to  fee*  or   grant*   is   targeted
demonstration or pilot program*.  Once data begin*
to emerge, EPA could take  an active  role in helping
USDA disseminate the  data.   EPA  should re-examine
the  positive   role  it  can  play  in  providing
oversight  and   input*  into   Land  Grant  College
activities.   One benefit to  EPA  of participating
more extensively in IPM research  is that EPA could
then  more  actively  use  that data  in  it*  re-
registration process.  IPM can be  considered  in the
alternatives analysis that EPA does as part of  its
risk/benefit   balancing.   EPA can  also consider
aggressively encouraging the use of pesticides sue.
as   microorganisms   and  biochemical*   that   are
compatible with IPM.

b.   Change use patterns of pesticide*.   Another
strategy  option  is  to  work  more  actively  to
prohibit  unnecessary  use  of  pesticides.     The
cosmetic use of pesticides is one  example.  In some
cases,  this  will  require  changes in  statutes  or
regulations of  other agencies, such  as  with USDA
standards   for   food   grading.      Inter-agency
coordination   and   public   education   would   be
important if cosmetic uses of pesticides  were to be
discouraged.  Another  area  of  potential  attention
is  efficacy data.   EPA  could require  pesticide
manufacturers or very large volume users  to produce
efficacy data to  justify continued  use.   Efficacy
data  requirements could be  targeted  to  sensitive
environmental   areas   or    particular   pesticide
ingredients where data  is   insufficient  or  safer
substitutes exist.  EPA  might require comparison of
product performance data to show yield and quality
changes   with   a   variety   of   crop  production
techniques   (alternative  chemicals,    IPM,    and
organic).    Registration*   could  sunset  unless
efficacy data were produced.

S.13.1   Encourage  reduced   use  of pesticides  by
providing  incentives for farm use of   integrated
pest   management    (IPM),    and   by   prohibiting
unnecessary use*.   PP, SAT,  AP, MI, INFO, REGS

c.    Create  right-to-know program*.   The  second
strategy option addresses the need for more public
knowledge and  involvement in pesticide  usage.   A
knowledgeable  community  can  have  a  significant
affect   on   practices   that  affect  the   local
environment in  undesirable  ways.    Experience  has
also  shown that peer pressure can result  in people
or companies behaving in a more publicly acceptable
manner  than they  might  if their action*  were kept
private.   The SARA  Title III  chemical   reporting
program  and   the   response*   of  companies   and
communities is a good example of  this process.

We suggest that EPA  develop a right-to-know program
regarding pesticide  use modeled after the SARA  313
program.    If  such  reporting  cannot  be required
under SARA or  FIFRA,  new  legislation   might  be
required.     The   program   could   have  several
components.    Major users  could  be  required  to
report  annually  on  the  pesticide quantities used
and   purpose*  served.    The  reports   should  be
publicly  available.   EPA could  develop a phased
reporting program, beginning with  high volume users
for  specific  pesticide* of  concern  or specific
use*. EPA could also require these major users to
develop and make  publically available their plans
to reduce future use of pesticide*.

S.13.2   Create a  right-to-know program  regarding
pesticide   use   by  large  agricultural  firms.
Encourage  industrial audit* of  these facilities.
PP,  INFO, AP
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d.  Peveioo safer home use of pesticides.  A third
strategy option is for EPA to regulate directly the
practices of large pesticide users.   The pesticide
program   has  been   and  uill   continue   to  be
implemented by the states.  However,  there are very
few Federal attempts to set minimum requirements to
protect health and the environment that all states
must  adopt.    Since  state  boundaries  are  not
effective  in stopping  environmental  pollution in
fish, groundwater,  or  food products, some Federal
requirements for  users  may be appropriate.   These
more conventional command and control requirements
could  aim  to  create   incentives   for  reduced
pesticide  use  and  early  identification  of  any
environmental  problems.    Some specific  ideas  to
implement this strategy  include:

1.   Require large  volume users  of  pesticides to
carry environmental  impairment liability insurance
to cover third party claims and clean-up costs.

2.       Require   extra   licensing/certification
procedures  for  use  of  pesticides   in  sensitive
environments, through a prescription  approach, for
example.

3.   Require large  volume users  of  pesticides  in
certain sensitive environments to do grounduater or
surface  water  monitoring  or to get  stormwater
discharge permits.

4.   Require large  volume users  of  pesticides  to
contract for independent pesticide use audits with
a goal of minimizing pesticide use.

These    approaches    would    require   extensive
discussions  with  states  and  other agencies.   It
would  be useful  to pilot  them   in  an interested
state.     Despite   the   difficulty   of   imposing
additional use controls, these controls are likely
to be most effective in directly reducing pesticide
usage in sensitive  areas.   As such,   they directly
tie  in with  the  types  of strategies which  will
address  problems  in wetlands, non-point  source*,
habitat  alteration,  and estuaries/coastal  waters.

S.13.3  Regulate  the practices of large pesticide
users,  particularly  in  sensitive   environments.
REGS, ENF. AP

A final  strategy for EPA involve* home users  of
pesticides.  It appears that home use both indoors
and  outdoors   often  grossly  exceed*  necessary
levels.    Knowledge  of  home  use   patterns  and
resulting  risks  is  quite  limited; an appropriate
first step for EPA  might be  to conduct surveys to
understand  consumer  practices.    Once  the  most
dangerous practices  are  identified,  effort  might
shift to designing  outreach  strategies that  would
effectively communicate to purchasers the risks to
the   homeowner*   themselves   and   to   broader
environment--of   household   pesticide  use.     A
strategy  involving  product  labeling, advertising
and other  informational  display* at  the point  of
purchase, and perhaps product reformulation should
be  developed to  elicit  safer  behavior  by  home
users.
S.13.4   Learn more about  home use of pesticides,
and  develop  ways  to  encourage  safer practices.
SAT, INFO

Reference*

EPA,   Economic  Aspects   of   Current  Pesticide
Regulatory Programs and Outlook for the Future, Dr.
Arnold Aspelin,  Chief, Economic  Analysis Branch,
Office of Pesticide Programs,  USEPA,  presented  in
Houston, Texas, February 3, 1983.

EPA, Pesticides in Ground  Water Data Base, 1988a,
Interim Report, December, 1988.

EPA,  Pesticide  Industry  Sales  and  Usage,  1899
Market Estimates,  Economic Analysis Branch, Office
of Pesticides Programs, December 1989.

NRC,   National   Research   Council,   Regulating
Pesticides in  Food, The Delaney Paradox,  National
Academy Press, Washington,  D.C., 1987.

NRC,   National  Research   Council,   Alternative
Agriculture,  National  Academy  Press,  Washington,
D.C.,  1989.
                                                     103

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AA.l  STRATEGY OPTIONS SORTED BY ENVIRONMENTAL PROBLEMS
Criteria Air Pollutants
S.I.I  Use marketable permits to lower costs and spur innovation
in reducing acid rain.  MI, EP
S.I.2  Reduce VOC emissions through deposit-refund programs,
taxes or marketable permits.  PP, MI
S.I.3  Alter state utility rate structures to persuade utilities
to sell conservation rather than BTUs.  PP, MI, EP, TAX
S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX
S.I.5  Establish more remote monitors for ozone.  S&T
S.I.6  Further investigate the relative roles of VOCs and NOx in
ozone formation, S&T
Toxic Air Pollutants
S.2.1  Reduce auto emissions by reducing vehicle miles travelled
— through better land use planning, car pooling, and mass
transit alternatives.  PP, INFO, EP, TH
5.2.2  Promote the use of clean and alternative fuels in cars and
trucks.  PP, REGS, EP, TH
S.2.3  Require process audits of manufacturers to find fugitive
sources of pollution, leaks in piping, and other preventable
releases.  PP, ENF
S.2.4  Reduce use of solvents in consumer products.  PP, INFO,
REGS
Radon
S.3.l  Ensure that homeowners understand radon risks by requiring
testing before properties can change hands.  INFO, MI, TH
S.3.2  Improve techniques of communicating radon risks so public
can make informed decisions.  S&T, INFO
s.3.3  Require radon inspections for schools and certain other
buildings.  REGS, TH
S.3.4  Establish airflow and radon protection standards for new
buildings.  REGS, TH
S.3.5  Increase knowledge base  for radon, including exposure
patterns, epidemiology, and mitigation techniques.  S&T
                                104

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Indoor Air Pollution

S.4.1  Provide state and local governments with technical
information to help them address indoor air pollution.  S&T, INFO

S.4.2  Work with other agencies to regulate products that cause
indoor air problems.  PP, INFO, REGS

S.4.3  Establish ventilation requirements for new and existing
homes.  REGS, EP, TH

S.4.4  Develop better instruments to diagnose sick buildings.
S&T

Ozone Depleting Substances

S.5.1  Strengthen the Montreal Protocol to virtually eliminate
use of CFCs and halons.  PP, FOR

S.5.2  Help other countries develop ozone-safe technologies,  PP,
FOR

S.5.3  Support recycling and reuse of CFCs and development of
safe alternatives.  PP, S&T, INFO, MI, TAX

COs 2 and Global Warming

S.6.1  Understand better the potential for global warming and its
impacts.  S&T

S.6.2  Increase research on ways of preventing and adapting to
global warming.  S&T

S.6.3  Slow global warming through energy conservation.  PP, MI,
EP, TAX

S.6.4  Promote non-fossil and non-carbon energy technologies.
PP, S&T, EP

S.6.5  Reduce CO2 accumulation  in  the  atmosphere  by  creating
incentives to preserve and enhance the world's forests.  MI, TAX,
NR, FOR

S.6.6  Pursue an international agreement on greenhouse gases.
FOR

S.6.7  Reduce use of CFCs and halons (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR

Nonooint Source Pollution

S.7.1  Modify national agricultural policy to reduce nonpoint
source pollution.  PP, S&T, INFO,  MI,  AP
                                105

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S.7.2  Focus EPA and State water programs more on enhancing water
quality and less on permitting point sources.  REGS, NR, AP

S.7.3  Support state and local efforts to control land uses that
generate nonpoint source pollution.  PP, S&T, INFO, AP, NR

Wetlands

S.8.1  Remove economic incentives for development in wetlands.
MI, AP, TH, TAX, NR

S.8.2  Develop new funding sources for federal acquisition and
management of wetlands.  NR

S.8.3  Reform conventional wetlands regulation.   REGS, ENF, TH

S.8.4  Consider direct and indirect impacts in Environmental
Impact Statements for Federal flood control and drainage
projects.  INFO, NR

Estuaries and Coastal Waters                         »

S.9.1  Manage estuaries as integrated systems; avoid focusing
only on water quality.  S&T, AP, TH, NR

S.9.2  Protect estuaries from accumulation of pollutants
transported long distances through general waste reduction and
pollution prevention efforts.  PP

S.9.3  Develop ecologically protective and cost-effective
technologies to manage contaminated sediments in estuaries.  S&T

Habitat Alteration

S.10.1  Develop a nationwide inventory and preservation plan for
important habitats.  NR

S.10.2  Restrict Federal activities that contribute to
development of ecologically important areas.  MI, REGS, AP, TH,
TAX, NR

S.10.3  Dramatically increase Federal acquisition of important
ecological areas and open space.  NR

S.10.4  Identify important habitats now in Federal ownership and
manage them to preserve ecological communities.  NR

S.10.5  Support state, local, and private efforts to preserve
important habitat areas through tax breaks and technical
assistance.  S&T, MI, TH, TAX, NR
                                106

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Hazardous Waste

S.ll.l  Use EPA's authorities broadly and creatively to reduce
the generation of hazardous wastes.  PP, INFO, REGS, ENF

S.11.2  Help states achieve adequate treatment and disposal
capacity — by ensuring that waste reduction goals are met, and
by adding new facilities if necessary.  PP, INFO, REGS

S.ll.3  Support the "product stewardship"  idea — a manufacturer
has a responsibility to contribute to appropriate use, reuse,
recycle, and disposal of his products.  PP, INFO, MI, NR

S.11.4  Simplify RCRA regulations and provide a more flexible
array of hazardous waste management standards.  REGS

S.11.5  Identify contaminated waste sites posing immediate
threats and quickly bring them under control.  REGS, ENF

S.11.6  Address future risks from contaminated waste sites by
developing and applying permanent cleanup techniques,  S&T, REGS,
ENF

S.11.7  Encourage site cleanup by third parties through
enforcement and use of reasonable settlement procedures.  REGS,
ENF

Municipal Solid Waste

S.12,1 Reduce toxic materials in consumer products and expand
markets for recovered materials.  PP, INFO, MI, REGS, ENF, NR

S.12.2  Eliminate federal standards, subsidies and procurement
specifications that discourage waste reduction and recycling.
PP, MI

S.12.3  Tax wastes and virgin materials to promote waste
reduction and recycling.  MI, TAX, NR

S.12.4  Create deposit/refund systems for tires, batteries, car
hulks, used oil and packaging containers.  MI

S.12.5  Encourage better state and local planning for solid waste
management capacity.  INFO, REGS, TH

Pesticides

S.13.1  Encourage reduced use of pesticides by providing
incentives for farm use of integrated pest management (IPM), and
by prohibiting unnecessary uses.  PP, S&T, INFO, REGS, AP

S.13.2  Create a right-to-know program regarding pesticide use by
large agricultural firms.  Encourge industrial audits of these
facilities.  PP, INFO, AP

                                107

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S.13.3  Regulate the practices of large pesticide users,
particularly in sensitive environments.  REGS, ENF, AP

S.13.4  Learn more about home use of pesticides, and develop ways
to encourage safer practices.  S&T, INFO
                                108

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AA 2  STRATEGY OPTIONS SORTED ACCORDING TO TOOLS

POLLUTION PREVENTION - PP

S.I.2  Reduce VOC emissions through deposit-refund programs,
taxes or marketable permits.  PP, MI

S.I.3  Alter state utility rate structures to persuade utilities
to sell conservation rather than BTUs.  PP, MI, EP, TAX

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.2.1  Reduce auto emissions by reducing vehicle miles travelled
— through better land use planning, car pooling, and mass
transit alternatives.  PP, INFO, EP, TH

S.2.2  Promote the use of clean and alternative fuels in cars and
trucks.  PP, REGS, EP, TH

S.2.3  Require process audits of manufacturers to find fugitive
sources of pollution, leaks in piping, and other preventable
releases.  PP, ENF

S.2.4  Reduce us of solvents in consumer products.  PP, INFO,
REGS

S.4.2  Work with other agencies to regulate products that cause
indoor air problems.  PP, INFO, REGS

S.5.1  Strengthen the Montreal Protocol to virtually eliminate
use of CFCs and halons.  PP, FOR

S.5.2  Help other countries develop ozone-safe technologies,  PP,
FOR

S.5.3  Support recycling and reuse of CFCs and development of
safe alternatives.  PP, S&T, INFO, MI, TAX

S.6.3  slow global warming through energy conservation.  PP, MI,
EP, TAX

S.6.4  Promote non-fossil and non-carbon energy technologies.
PP, S&T, EP

S.6.7  Reduce use of CFCs and halons (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR

S.7.1  Modify national agricultural policy to reduce nonpoint
source pollution.  PP, S&T, INFO, MI, AP

S.7.3  Support state and local efforts to control land uses that
generate nonpoint source pollution.  PP, S&T, INFO, AP, NR
                                109

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S.9.2  Protect estuaries from accumulation of pollutants
transported long distances through general waste reduction and
pollution prevention efforts.  PP

S.ll.l  Use EPA's authorities broadly and creatively to reduce
the generation of hazardous wastes.  PP, INFO, REGS, ENF

S.11.2  Help state achieve adequate treatment and disposal
capacity — by ensuring that waste reduction goals are met, and
by adding new facilities if necessary.  PP, INFO, REGS

S.11.3  Support the "product stewardship"  idea — a manufacturer
has a responsibility to contribute to appropriate use, reuse,
recycle, and disposal of his products.  PP, INFO, MI

S.12.1 Reduce toxic materials in consumer products and expand
markets for recovered materials.  PP, INFO, MI, REGS, ENF

S.12.2  Eliminate federal standards, subsidies and procurement
specifications that discourage waste reduction and recycling.
PP, MI

S.13.1  Encourage reduced use of pesticides by providing
incentives for farm use of integrated pest management (IPM), and
by prohibiting unnecessary uses.  PP, S&T, AP, INFO, REGS

S.13.2  Create a right-to-know program regarding pesticide use by
large agricultural firms.  Encourage industrial audits of these
facilities.  PP, INFO, AP

SCIENTIFIC AND TECHNICAL MEASURES - S&T

S.I.5  Establish more remote monitors for ozone.  S&T

S.I.6  Further investigate the relative roles of VOCs and NOx in
ozone formation.  S&T

S.3.2  Improve techniques of communicating radon risks so public
can make informed decisions.  S&T, INFO

S.3.5  Increase knowledge base for radon, including exposure
patterns, epidemiology, and mitigation techniques.  S&T

S.4.1  Provide state and local governments with technical
information to help them address indoor air pollution.  S&T, INFO

S.4.4  Develop better instruments to diagnose sick buildings.
S&T

S.5.3  Support recycling and reuse of CFCs and development of
safe alternatives.  PP, S&T, INFO, MI, TAX

S.6.1  Understand better the potential for global warming and its
impacts.  S&T

                                110

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S.6.2  Increase research on ways of preventing and adapting to
global warming.  S&T

S.6.4  Promote non-fossil and non-carbon energy technologies.
PP, S&T, EP

S.6.7  Reduce use of CFCs and halons (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR

S.7.1  Modify national agricultural policy to reduce nonpoint
source pollution.  PP, S&T, INFO, MI, AP

S.7.3  Support state and local efforts to control land uses that
generate nonpoint source pollution.  PP, S&T, INFO, AP, NR

S.9.1  Manage estuaries as integrated systems; avoid focusing
only on water quality.  S&T, AP, TH, NR

S.9.3  Develop ecologically protective and cost-effective
technologies to manage contaminated sediments in estuaries.  S&T

S.10.5  Support state, local, and private efforts to preserve
important habitat areas through tax breaks and technical
assistance.  S&T, MI, TH, TAX, NR

S.11.6  Address future risks from contaminated waste sites by
developing and applying permanent cleanup techniques.  S&T, REGS,
ENF

S.13.1  Encourage reduced use of pesticides by providing
incentives for farm use of integrated pest management  (IPM),  and
by prohibiting unnecessary uses.  PP, S&T, AP, INFO, REGS

S.13.4  Learn more about home use of pesticides, and develop ways
to encourage safer practices.  S&T, INFO

PROVISION OF INFORMATION - INFO

S.2.1  Reduce auto emissions by reducing vehicle miles travelled
— through better land planning, car pooling, and mass transit
alternatives.  PP, INFO, EP, TH

S.2.4  Reduce us of solvents in consumer products.  PP, INFO,
REGS

S.3.1  Ensure that homeowners understand radon risks by requiring
testing before properties can change hands.  INFO, MI, TH

S.3.2  Improve techniques of communicating radon risks so public
can make informed decisions.  S&T, INFO

S.4.1  Provide state and local governments with technical
information to help them address indoor air pollution.  S&T,  INFO

                                111

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S.4.2  Woiek with other agencies to regulate products that cause
indoor air problems.  PP, INFO, REGS

S.5.3  Support recycling and reuse of CFCs and development of
safe alternatives.  PP, S&T, INFO, MI, TAX

S.6.7  Reduce use of CFCs and halons  (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR

S.7.1  Modify national agricultural policy to reduce nonpoint
source pollution.  PP, S&T, INFO, MI, AP

S.7.3  Support state and local efforts to control land uses that
generate nonpoint source pollution.  PP, S&T, INFO, AP, NR

S.8.4  Consider direct and indirect impacts in Environmental
Impact Statements for Federal flood control and drainage
projects.  INFO, NR

S.ll.l  Use EPA's authorities broadly and creatively to reduce
the generation of hazardous wastes.  PP, INFO, REGS, ENF

S.11.2  Help state achieve adequate treatment and disposal
capacity — by ensuring that waste reduction goals are met, and
by adding new facilities if necessary.  PP, INFO, REGS

S.11.3  Support the "product stewardship"  idea — a manufacturer
has a responsibility to contribute to appropriate use, reuse,
recycle, and disposal of his products.  PP, INFO, MI

S.12.1 Reduce toxic materials in consumer products and expand
markets for recovered materials.  PP, INFO, MI, REGS, ENF

S.12.5  Encourage better state and local planning for solid waste
management capacity.  INFO, REGS, TH

S.13.1  Encourage reduced use of pesticides by providing
incentives for farm use of integrated pest management  (IPM), and
by prohibiting unnecessary- uses.  PP, s&T, AP, INFO, REGS

S.13.2  Create a right-to-know program regarding pesticide use by
large agricultural firms.  Encourage industrial audits of these
facilities.  PP, INFO, AP

S.13.4  Learn more about home use of pesticides, and develop ways
to encourage safer practices.  S&T, INFO

MARKET INCENTIVES - MI

S.I.I  Use marketable permits to lower costs and spur  innovation
in reducing acid rain.  MI, EP
                                112

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S.I.2  Reduce VOC emissions through deposit-refund programs,
taxes or aarketable permits.  PP, MI

S.I.3  Alter state utility rate structures to persuade utilities
to sell conservation rather than BTUs.  PP, MI, EP, TAX

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.3.1  Ensure that homeowners understand radon risks by requiring
testing before properties can change hands.  INFO, MI, TH

S.5.3  Support recycling and reuse of CFCs and development of
safe alternatives.  PP, S&T, INFO, MI, TAX

S.6.3  Slow global warming through energy conservation.  PP, MI,
EP, TAX

S.6.5  Reduce CO2 accumulation  in the  atmosphere by creating
incentives to preserve and enhance the world's forests.  MI, TAX,
NR, FOR

S.6.7  Reduce use of CFCs and halons  (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR

S.7.1  Modify national agricultural policy to reduce nonpoint
source pollution.  PP, S&T, INFO, MI,  AP

S.8.1  Remove economic incentives for development in wetlands.
MI, AP, TH, TAX, NR

S.10.2  Restrict' Federal activities that contribute to
development of ecologically important areas.  MI,  REGS, AP, TH,
TAX, NR

S.10.5  Support state, local, and private efforts to preserve
important habitat areas through tax breaks and technical
assistance.  S&T, MI, TH, TAX,  NR

S.11.3  Support the "product stewardship"  idea — a manufacturer
has a responsibility to contribute to appropriate use, reuse,
recycle, and disposal of his products.  PP, INFO,  MI

S.12.1 Reduce toxic materials in consumer products and expand
markets for recovered materials.  PP,  INFO, MI, REGS, ENF

S.12.2  Eliminate federal standards, subsidies and procurement
specifications that discourage waste reduction and recycling.
PP, MI

S.12.3  Tax wastes and virgin materials to promote waste
reduction and recycling.  MI, TAX
                                113

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S.12.4  Create deposit/refund systems for tires, batteries, car
hulks, used oil and packaging containers.  MI

CONVENTIONAL REGULATION - REGS

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.2.2  Promote the use of clean and alternative fuels in cars and
trucks.  PP, REGS, EP, TH

S.2.4  Reduce us of solvents in consumer products.  PP, INFO,
REGS

S.3.3  Require radon inspections for schools and certain other
buildings.  REGS, TH

S.3.4  Establish airflow and radon protection standards for new
buildings.  REGS, TH

S.4.2  Work with other agencies to regulate products that cause
indoor air problems.  PP, INFO, REGS

S.4.3  Establish ventilation requirements for new and existing
homes.  REGS, EP, TH

S.7.2  Focus EPA and State water programs more on enhancing water
quality and less on permitting point sources.  REGS, NR, AP

S.8.3  Reform conventional wetlands regulation.  REGS, ENF, TH

S.10.2  Restrict Federal activities that contribute to
development of ecologically important areas.  MI, REGS, AP, TH,
TAX, NR

s.li.i  Use EPA's authorities broadly and creatively to reduce
the generation of hazardous wastes.  PP, INFO, REGS, ENF

S.11.2  Help state achieve adequate treatment and disposal
capacity — by ensuring that waste reduction goals are met, and
by adding new facilities if necessary.  PP, INFO, REGS

S.ll.4  Simplify RCRA regulations and provide a more flexible
array of hazardous waste management standards.  REGS

S.ll.5  Identify contaminated waste sites posing immediate
threats and quickly bring them under control.  REGS, ENF

S.ll.6  Address future risks from contaminated waste sites by
developing and applying permanent cleanup techniques.  S&T, REGS,
ENF
                                114

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S.11.7  Encourage site cleanup by third parties through
enforcement and use of reasonable settlement procedures.  REGS,
ENF

S.12.1 Reduce toxic materials in consumer products and expand
markets for recovered materials.  PP, INFO, MI, REGS, ENF

S.12.5  Encourage better state and local planning for solid waste
management capacity.  INFO, REGS, TH

S.13.1  Encourage reduced use of pesticides by providing
incentives for farm use of integrated pest management (IPM), and
by prohibiting unnecessary uses.  PP, S&T, AP, INFO, REGS

S.13.3  Regulate the practices of large pesticide users,
particularly in sensitive environments.  REGS, ENF,  AP

ENFORCEMENT - ENF

S.2.3  Require process audits of manufacturers to find fugitive
sources of pollution, leaks in piping, and other preventable
releases.  PP, ENF

S.8.3  Reform conventional wetlands regulation.  REGS, ENF, TH

S.ll.l  Use EPA's authorities broadly and creatively to reduce
the generation of hazardous wastes.  PP, INFO, REGS, ENF

S.ll.5  Identify contaminated waste sites posing immediate
threats and quickly bring then under control.  REGS, ENF

S.11.6  Address future risks from contaminated waste sites by
developing and applying permanent cleanup techniques.  S&T, REGS,
ENF

S.11.7  Encourage site cleanup by third parties through
enforcement and use of reasonable settlement procedures.  REGS,
ENF

S.12.1 Reduce toxic materials in consumer products and expand
markets for recovered materials.  PP, INFO, MI, REGS, ENF

S.13.3  Regulate the practices of large pesticide users,
particularly in sensitive environments.  REGS, ENF,  AP
                                115

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AA.3  STRATEGY OPTIONS SORTED ACCORDING TO POLICIES

ENERGY POLICY - EP

S.I.I  Use marketable permits to lower costs and spur innovation
in reducing acid rain.  MI, EP

S.I.3  Alter state utility rate structures to persuade utilities
to sell conservation rather than BTUs.  PP, MI, EP, TAX

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.2.1  Reduce auto emissions by reducing vehicle miles travelled
— through better land planning, car pooling, and mass transit
alternatives.  PP, INFO, EP, TH

S.2.2  Promote the use of clean and alternative fuels in cars and
trucks.  PP, REGS, EP, TH

S.4.3  Establish ventilation requirements for new and existing
homes.  REGS, EP, TH

S.6.3  Slow global warming through energy conservation.  PP, MI,
EP, TAX

S.6.4  Promote non-fossil and non-carbon energy technologies.
PP, S&T, EP

AGRICULTURAL POLICY -AP

S.7.1  Modify national agricultural policy to reduce nonpoint
source pollution.  PP, S&T, INFO, MI, AP

s.7.2  Focus EPA and state water programs more on enhancing water
quality and less on permitting point sources.  REGS, NR, AP

S.7.3  Support state and local efforts to control land uses that
generate nonpoint source pollution.  PP, S&T, INFO, AP, NR

S.8.1  Remove economic incentives for development in wetlands.
MI, AP, TH, TAX, NR

S.9.1  Manage estuaries as integrated systems; avoid focusing
only on water quality.  S&T, AP, TH, NR

S.10.2  Restrict Federal activities that contribute to
development of ecologically important areas.  MI, REGS, AP, TH,
TAX, NR

S.13.1  Encourage reduced use of pesticides by providing
incentives for farm use of integrated pest management (IPM), and
by prohibiting unnecessary uses.  PP, S&T, AP, INFO, REGS

                                116

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S.13.2  Ci?eate a right-to-know program regarding pesticide  use
by large agricultural firms.  Encourage industrial audits of
these facilities.  PP, INFO, AP

S.13.3  Regulate the practices of large pesticide users,
particularly in sensitive environments.  REGS, ENF, AP

TRANSPORTATION. URBAN. HOUSING AND COMMERCIAL DEVELOPMENT POLICY
- TH

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CAFE standards.  PP, MI, REGS, EP, TH, TAX

S.2.1  Reduce auto emissions by reducing vehicle miles travelled
— through better land planning, car pooling, and mass transit
alternatives.  PP, INFO, EP, TH

S.2.2  Promote the use of clean and alternative fuels in cars and
trucks.  PP, REGS, EP, TH

S.3.1  Ensure that homeowners understand radon risks by requiring
testing before properties can change hands.  INFO, MI, TH

S.3.3  Require radon inspections for schools and certain other
buildings.  REGS, TH

S.3.4  Establish airflow and radon protection standards for new
buildings.  REGS, TH

S.4.3  Establish ventilation requirements for new and existing
homes.  REGS, EP, TH

S.8.1  Remove economic incentives for development in wetlands.
MI, AP, TH, TAX, NR

S.8.3  Reform conventional wetlands regulation.  REGS, ENF, TH

S.9.1  Manage estuaries as integrated systems; avoid focusing
only on water quality.  S6T, AP, TH, NR

S.10.2  Restrict Federal activities that contribute to
development of ecologically important areas.  MI, REGS, AP, TH,
TAX, NR

S.10.5  Support state, local, and private efforts to preserve
important habitat areas through tax breaks and technical
assistance.  S&T, MI, TH, TAX, NR

S.12.5  Encourage better state and local planning for solid waste
management capacity.  INFO, REGS, TH
                                117

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TAX POLICY - TAX

S.I.3  Alter state utility rate structures to persuade utilities
to sell conservation rather than BTUs.  PP, MI, EP, TAX

S.I.4  Reduce energy use in transportation through a gasoline tax
and tighter CARE standards.  PP, MI, REGS, EP, TH, TAX

S.5.3  Support recycling and reuse of CFCs and development of
safe alternatives.  PP, S&T, INFO, MI, TAX

S.6.3  Slow global warming through energy conservation.  PP, MI,
EP, TAX

S.6.5  Reduce C02 accumulation in the atmosphere  by creating
incentives to preserve and enhance the world's forests.  MI, TAX,
NR, FOR

S.6.7  Reduce use of CFCs and halons  (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR

S.8.1  Remove economic incentives for development in wetlands.
MI, AP, TH, TAX, NR

S.10.2  Restrict Federal activities that contribute to
development of ecologically important areas.  MI, REGS, AP, TH,
TAX, NR

S.10.5  Support state, local, and private efforts to preserve
important habitat areas through tax breaks and technical
assistance.  S&T, MI, TH, TAX, NR

NATURAL RESOURCE POLICY - NR

S.6.5  Reduce CO2 accumulation in the atmosphere  by creating
incentives to preserve and enhance the world's forests.  MI, TAX,
NR, FOR

S.7.2  Focus EPA and State water programs more on enhancing water
quality and less on permitting point  sources.  REGS, NR, AP

S.7.3  Support state and local efforts to control land uses that
generate nonpoint source pollution.   PP, S&T, INFO, AP, NR

S.8.1  Remove economic incentives for development in wetlands.
MI, AP, TH, TAX, NR

S.8.2  Develop new funding sources for federal acquisition and
management of wetlands.  NR

S.8.4  Consider direct and indirect  impacts in Environmental
Impact Statements for Federal flood  control and drainage
proj ects.  INFO, NR
                                118

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S.9.1  Manage estuaries as integrated systems; avoid focusing
only on water quality.  S&T, AP, TH, NR

S.10.1  Develop a nationwide inventory and preservation plan for
important habitats.  NR

S.10.2  Restrict Federal activities that contribute to
development of ecologically important areas.  MI, REGS, AP, TH,
TAX, NR

S.10.3  Dramatically increase Federal acquisition of important
ecological areas and open space.  NR

S.10.4  Identify important habitats now in Federal ownership and
manage them to preserve ecological communities.  NR

S.10.5  Support state, local, and private efforts to preserve
important habitat areas through tax breaks and technical
assistance.  S&T, MI, TH, TAX, NR

FOREIGN POLICY - FOR

S.5.1  Strengthen the Montreal Protocol to virtually eliminate
use of CFCs and halons.  PP, FOR

S.5.2  Help other countries develop ozone-safe technologies,  PP,
FOR

S.6.5  Reduce CO2 accumulation in the atmosphere  by creating
incentives to preserve and enhance the world's forests.  MI, TAX,
NR, FOR

S.6.6  Pursue an international agreement on greenhouse gases.
FOR

S.6.7  Reduce use of CFCs and halons (S.5 strategies).  PP, S&T,
INFO, MI, TAX, FOR
                                119

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    B.  PERSPECTIVES ON REDUCING ENVIRONMENTAL RISKS
     In the  course of  generating  and evaluating  risk reduction
options, the  Subcommittee developed  several concepts  that  seem
particularly  helpful   in  thinking   systematically  about  risk
reduction.   Within the limited time  available,  the Subcommittee
was not able to pursue these concepts to the extent it would have
liked.  With  more time and  resources to devote to the issue of
evaluating risk reduction options,  EPA can develop and apply them
fully.  In this appendix, these  ideas are loosely organized as a
series of observations.
B.l  Alternative Points of Intervention to Reduce Risks

     Most environmental risks or hazards  result through a common
chain of events (See Figure B-l) .  The chain is illustrated in this
case  for  a hypothetical  nuclear  power plant accident releasing
radioactive  iodine and  resulting  in thyroid  cancer.   Similar
examples could be developed  for other  environmental problems, such
as those  involving emissions  from  industrial processes, purchase
of polluting consumer products, use of pesticides, etc.  The events
giving  rise to  the  risks  and  the possible points  for  control
interventions are the same for other cases.

     For  most  environmental problems, EPA  thinks about reducing
risks  first by  intervening  between  initiating  events and  the
release of  pollutants.   Control technologies are researched and
regulations  mandating  their  installation  are   implemented  and
enforced.   Very  little effort is devoted  to determining whether
interventions at other points might  be more effective and/or cost-
effective.  For  instance, in  many cases,  the initial choice of a
more environmentally benign  technology may prevent risk most cost-
effectively.   Pollution prevention  activities such as toxics use
reduction measures or process audits  to reduce  the likelihood of
initiating   events   may   also   be   particularly   worthwhile.
Alternatively,  reducing  exposure  to pollutants already  in  the
ambient environment is another approach  that should be considered.
In the Superfund program,  for example, exposure reduction measures
(provision of alternative  water supplies, site access restrictions,
etc.)  typically  provide  quicker and more cost  effective risk
reduction results  than  permanent, engineered site remedies.  The
extent of site cleanup can then be addressed separately.

     Although pollution prevention approaches are often superior,
one should not always favor one approach or intervention point over
another.  The point is simply that one should investigate the full
range  of  ways by  which risks posed by a  given  problem might be
reduced.
                                120

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                             121

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B.2  Pollution Prevention Aa 9. Key Theme in Risk Reduction

     During the  last  few years inside and outside  EPA there has
been greatly  increased discussion of  pollution prevention  as a
preferred approach  to environmental  risk reduction.   Pollution
prevention has emerged as a new  theme  largely in counterpoint to
the perceived limitations of the pollution control efforts of the
last two decades.   Where pollution control  focuses on attempting
to  control  or  mitigate  pollution   once   produced,  pollution
prevention emphasizes avoiding its creation in the first place.

     The pollution control approach has come under attack for many
reasons, including:

a)  limited effectiveness - despite the investment of billions of
dollars in pollution  control  technologies,  our country continues
to be  faced with severe pollution problems.   There  is no better
example of  this  than urban air  pollution,  where  despite twenty
years of effort many of our major cities remain out of compliance
with federal  clean air  standards.  A  major contributor  to  such
noncompliance is  the automobile.  Application of pollution control
technology has made automobiles  less polluting than twenty years
ago.  During that same time period, however, the number of vehicle
miles  travelled  in urban  areas has  increased, thus offsetting
pollution control gains achieved by this technology.

b)  expense  - the pollution control system is costly; dollars spent
on pollution control are not available for expenditure  on producing
valuable goods.

c)   cross-media  transfers - application  of  pollution  control
technologies   can   have  the  effect   of   shifting  pollutants
inadvertently from one medium to another.   Alternatively, pollution
control  requirements  may  induce generators  to move pollutants
intentionally from a heavily regulated  medium to one which is less
regulated.  For  example, a major  problem that  sewage treatment
plants have faced is the handling of sewage sludge;  it is often so
contaminated with pollutants removed from water that  it has to be
burned, buried, or otherwise disposed of.

d)   operation  and maintenance  shortfalls  -  because pollution
control  equipment   is  costly   to  operate and  does  not  normally
contribute  to primary  production  processes,  there is  little
incentive other  than regulatory  enforcement  and  the operator's
conscience to keep equipment functioning properly.  This situation
has contributed to widespread noncompliance with environmental laws
such as the Clean Water Act.

e)   limits  in  knowledge  about  necessary  levels  of control -
scientific  understanding of   the  fate  and  effects  of  various
pollutants  is  limited,  severely in  many  cases.    Preventing
pollution altogether  is  far safer  than settling on an acceptable
level  of  pollution and  running  the  risk of  underestimating the

                                122

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subsequent adverse effects of the pollution that has been allowed.
Also, there often are long and protracted debates over appropriate
levels of control  for various pollutants,  leading to long delays
in  action.    A  prime  example   has  been  the  debate  over  the
appropriate level of control for benzene, a single chemical, which
has dragged on in the  regulatory agencies and  the courts for years.

     As observers in government,  industry, and the public interest
community  have  become  increasingly aware  of  these  problems,
interest in alternatives to control approaches has  increased.  More
attention has been placed on finding  ways not to create pollutants
in  the  first place,  therefore  reducing the  need  to  control
pollutants.  Initially, such prevention  concepts were most heavily
debated and refined in the area  of hazardous waste, beginning with
concepts  of  hazardous waste/source  reduction,   and  later  were
extended to concepts  of  multimedia waste  reduction.   In the last
few  years,  many have suggested  a turn to  pollution prevention
approaches to help solve a full spectrum  of environmental problems,
as we do here.

     Despite much discussion of  pollution prevention, however, the
concept  remains  somewhat  vague  and undefined,  and our  review
reveals  that  no consistent  definition  of the  concept  has  been
offered to  date.   This has contributed  to a  lack  of  progress in
implementing pollution prevention approaches.  For the purposes of
this report,  we  have  adopted the following general definition of
the concept:

     "Pollution Prevention" means changes  in the configuration of,
use of, or  demand  for raw materials, products or  technologies of
production so as to  reduce the  use of hazardous materials and/or
the creation  of  hazardous  products,  byproducts, or pollutants or
destructive  results.   Such  changes  are  not considered  to  be
"pollution prevention"  if  they  result in  one hazardous material,
product,  byproduct  or  pollutant or   destructive  result  being
substituted for  another  so as to create substantial  new risks of
concern.  Pollution prevention can also include changing activities
and the location  of those activities so as not to harm human health
or sensitive ecosystems; avoiding development near wetlands is an
example.

     A key  phrase  which may  not be  clear in this  definition is
"technologies of production."  The term refers to the fundamental
technologies  used  by humans  to  accomplish productive activities
such  as  mining,  manufacturing,  farming,  and  transportation.
Changes  in   such  technologies   refer   to  alterations  in  the
configuration of the  technologies themselves,  as  contrasted with
the addition  of  supplementary technologies.   The  purpose of such
changes is to reduce  the  use of hazardous inputs  or the creation
or formation  of  hazardous products,  byproducts or  pollutants or
destructive results by those production technologies.

     For example, one production technology used to accomplish the
productive  activity  of human transportation is  the  automobile.

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Replacing automobiles in an urban area suffering from air pollution
with mass transportation, bicycles, or non-polluting vehicles would
be a form of pollution prevention,  as  long as the alternatives did
not create substantial new risks.  An alteration in the engine of
the automobile to make it burn  gasoline  more cleanly and produce
less carbon monoxide also would be a pollution prevention change.
In contrast, adding a catalytic converter to the engine is simply
the  addition of  a  supplementary  technology  to  control  engine
emissions.

     Similarly,  changes   in  raw  materials  or  in products  can
constitute pollution prevention.   For example,  substitution  of a
water-based  paint  product  for  an oil-based  paint  product  can
eliminate hazardous solvents  in  the paint and associated emissions
and wastes.

     Finally, reductions  in the demand for some product can prevent
pollution.  For example, reduced demand  for electricity can  lead
to reduced production of greenhouse gases by electrical generating
facilities burning fossil  fuels.  In contrast, a pollution control
approach targeted at greenhouse  gases  might  be to plant more trees
to  attempt  to  offset the  carbon   dioxide  production  of  the
generating facilities.

     There  is  a  fundamental  difference,  then,  between pollution
prevention approaches as we have defined them and pollution control
approaches.   The  latter  involves   the  use  of  supplementary
technologies to control pollutants or destructive results once they
already have been created.

     Experience with the pollution prevention approach as applied
in  several settings shows that pollution  prevention  strategies
applied in place of or combined  with pollution control can help to
overcome  many  of  the problems associated with  pollution control
noted above.  With regard to effectiveness, pollution prevention
approaches,  such  as eliminating  the  use  of DDT  or of  lead in
gasoline, have brought us some of our greatest success stories in
reduction of environmental pollution.   With  respect to costliness,
some  firms have reported notable  cost  savings  from the  use of
pollution  prevention approaches,  mostly  in the form  of avoided
pollution control costs,  but  also through the increased productive
efficiency of their operations.   As for  the problem of crossmedia
shifting,  reduced  use of solvents can  reduce  the need  for air
pollution control equipment which produces hazardous wastes which
must be disposed of.   Pollution prevention can avoid problems of
operation and maintenance shortfalls because changes in production
processes for purposes of pollution prevention bring the incentives
to maximize production of product into alignment with the incentive
to  produce the  least amount  of  pollution.   And finally,  with
respect to  the problem of limits of  knowledge,  a technique which
eliminates the use of a toxic chemical also  eliminates the need to
debate necessary levels of control.
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     It  is  important  to  note  that  some  pollution  prevention
approaches"- are  more fundamental  and comprehensive  than others.
This is true  because some technologies of production and associated
raw materials and products contribute  to multiple  environmental
problems.   For   example,  the  manufacturing  and use  of  paints
containing toxic solvents can  contribute  to any  or all  of the
following problems: criteria air pollutants; toxic air pollutants;
indoor  air pollution;  nonpoint source  pollution;   pollution  of
estuaries and coastal waters; hazardous waste; and municipal solid
waste.  From a pollution prevention perspective, one can approach
these problems one at a time or, preferably, simultaneously.  For
example, a paint manufacturer  could practice waste  reduction by
rescheduling  production  so as  to  reduce  the number  of  tank
cleanings  needed each  day.  This is  desirable,  but a  far more
desirable pollution prevention  approach, which would  reduce all of
the problems noted above, would be to reformulate the paint so it
contained less or no toxic solvent.

     It  makes  sense,  then, to  establish  pollution  prevention
programs not around specific problems,  but  around  specific types
of technologies of production,  raw materials,  and products.  This
type of program  can then  be focused  simultaneously  on  all of the
problems   associated   with  a   particular   set  of  production
technologies or products,  and preference can be given to pollution
prevention approaches which can impact multiple problems, not just
one or two.

     The need for such multifaceted prevention  programs already
has been recognized in several  states moving forward aggressively
on pollution prevention.  For example, the States of Massachusetts,
Oregon, and  Illinois last year established toxics  use  reduction
laws  which encourage  manufacturers  to recognize explicitly how
hazardous  substances  used  in  their  production  technologies and
products affect  workers,  consumers,  and  different  parts  of the
environment.

     Pollution prevention can  be  implemented  through careful use
of  any of a  number of policy tools,  if applied  appropriately.
Market incentives can be used, such as the imposition  of a gasoline
tax to promote the purchase  of more  fuel  efficient  cars, thereby
reducing    the     production    of    CO2    and   air    toxics.
Information-provision  tools   can be  very  helpful,   such  as
requirements for large  farmers to report publicly  their use of,
and  their plans to  reduce use  of,  pesticides.   Conventional
regulations  are  applicable,  such  as  the  use of the authorities
under the Toxic  Substances Control  Act to restrict toxic substance
content of consumer products which must be disposed of as municipal
solid waste.

     Many  of the  strategies  we  have  identified  for  promoting
prevention   focus   primarily  on  "soft"  approaches,   such  as
requirements for auditing and  planning or  further  research and
development.   One  reason that  the   implementation of    strong
regulatory requirements is  not  a  more  frequent  recommendation is

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that pollution prevention is still a relatively new way of thinking
for many. - Thus,  approaches which  emphasize education,  training,
and information  gathering and dissemination are  logical  at this
time.  As  our knowledge  base  on and experience  with  prevention
approaches builds,  more  far-reaching measures  may become more
appropriate.

B.3
     Many of  the risk reduction  options  we find  most promising
address multiple problems.   An agricultural policy  that reduces
the  incentives  for  overuse   of  agricultural   chemicals  will
contribute  to solving  nonpoint  source,  pesticide,  and estuary
problems. Increased energy efficiency and conservation will reduce
risks associated with criteria air pollutants, global warming, acid
rain, air toxics, and other problems such as those associated with
coal and oil  extraction,  oil  spills,  leaking  underground storage
tanks and sludge and flyash disposal;  the balance of payments and
national security  would also  benefit.   Strategies  that address
multiple problems  are much more desirable than  they appear when
viewed from a perspective concerned with only a single problem.

     Evaluating the risk reduction benefits of  broad  strategies
that address multiple problems may be particularly difficult.  When
a strategy reduces risks by numerous, disparate and often indirect
means, it becomes difficult to measure and aggregate the benefits
from the strategy.  Giving a cross-cutting strategy with benefits
for  multiple  problems   sufficient  credit  becomes  particularly
difficult in EPA's programmatic organizational structure, in which
each individual program  office typically focuses  on a narrow range
of problems.

     Two of the Subcommittee's major recommendations (see Chapter
4)  involve  EPA  encouraging  pollution  prevention generally  and
supporting improved environmental  education and training.  The risk
reduction benefits of such approaches are virtually impossible to
document or measure, but they  are  nevertheless  very significant
across all of the environmental problem areas we studied.


B.4   Additional Comparisons  of Environmental Problems;  EPA and
Social Spending On Them* and Public opinion About Them

     In this project, EPA charged  the SAB with evaluating the risk
rankings produced under  the Unfinished Business project, and going
beyond these rankings to develop promising options for addressing
the risks.  Another issue briefly considered in the earlier project
was how the risk rankings for the problems correlate with public
perception of them and social attention to them.  We have several
thoughts about how EPA might  review and  update the earlier work on
this topic.

     Unfinished  Business observed  that the  relative amount  of
attention EPA devoted to problems did not correlate well with the

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relative risks posed by the problems.  Several problems were cited
that appeared to pose relatively high risks, yet received minimal
attention from EPA.  Conversely, very high levels of funding were
directed at several of the lower risk problem areas.  The disparity
was  explained by  the  fact that  EPA's  funding priorities  are
determined largely by Congress, reflecting public opinion about the
severity of different environmental problems.

     While we  would probably agree that  these  observations from
Unfinished Business were and are still  true,  we suggest that EPA
undertake the following investigations:

1.   Estimate the  relative  amounts of EPA  spending  (dollars and
personnel) on  the different environmental  problem areas.   This
could be done as follows.   Each element of  EPA's budget could be
assessed  and then apportioned to the  problem  or  problems  it
addresses.   By summing across   budget  elements, one  could then
determine how EPA's total budget is allocated among the problems.
Some of EPA's budget is for management overhead  (e.g., the Office
of  Administration  and  Resource Management)  or  for  multi-media
purposes (e.g., non-programmatic health effects research) and could
not be allocated to  specific problem  areas.   The list of problem
areas for which the analysis should be performed  would probably be
somewhere  between  13  and  31.   The  31  problems considered  by
Unfinished   Business   include   several   for  which   identifying
appropriate  budget amounts  would  be extremely  difficult  (e.g.
consumer exposure to toxic chemicals). The 13 problems considered
by  the Subcommittee  exclude  several areas  of  significant  EPA
spending (e.g. drinking water,  point source discharges to surface
water).

2.  Estimate the relative amounts of spending by  the entire nation
(government,   industry,   consumers,   etc.)   on  the   different
environmental  problem  areas.   The  EPA's  new   Cost  of a  Clean
Environment  report could  provide  a basis for this analysis.   In
discussing the funds devoted to different environmental problems,
the Unfinished Business study considered only EPA spending and did
not also investigate total national spending.  Both priorities for
social spending and priorities  for  EPA spending are important, and
should be analyzed.  The sets of priorities need  not be identical.
For  some  problem  areas,  EPA  has  taken  on the costly role  of
financing the  capital  costs of control  or  cleanup  technologies
(e.g., Superfund,  construction  grants).   These  areas  may receive
a  large  fraction  of EPA's  budgetary attention,  but they  also
receive a much  smaller fraction of total national  environmental
spending.    For other problem   areas,  a relatively   modest EPA
budget devoted to issuing regulations may drive much greater levels
of national spending (e.g. industrial point sources).  Such problem
areas show an  opposite  pattern, receiving a larger share  of the
national pie than the EPA pie.

3.  Evaluate  public perception of the relative seriousness of major
environmental problems.   The authors of  Unfinished Business did
this,  but  more  recent  public  opinion  data  from  the  Roper

                                127

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organization is now available (see Figure B-2).  The recent polling
is also based on definitions of environmental problems much closer
to those used  for  Unfinished Business  and  this  project.   It must
be recognized that this polling data, while it covers a wide range
of environmental problems, is still somewhat superficial.  A more
complete   measurement and characterization of  public  perception
would  include  not only  poll  results,  but also more  in-depth
psychological and sociological surveys.

4.  Compare how environmental problems rank in terms of risk, EPA
spending, national spending, and public  opinion.   We expect that
a  very  simple graphical  analysis in  which problem  areas  are
assigned to  quadrants based upon  their  risk and  another factor
would  be very revealing, even though the  data on public perception
are not as  robust as would be ideal. Figure B-3 shows two samples.

     Problems located in the low/low or high/high quadrants present
few  policy  dilemmas,   but  the  high/low combinations  can  pose
significant  issues of leadership,  values,  and ethics  for policy
makers  in  a democratic society.   Should  a  problem posing high
residual risks, yet receiving a low EPA budget, get more attention?
Should a low risk/high budget problem get less attention?   What
should  be  done  about  a problem posing  high  residual risks (as
evaluated by EPA staff or SAB committees)  that the public perceives
as  not very  serious?   Or vice  versa?    such  problems  present
challenges in risk communication.  It is not clear  if the "experts"
know things  about these  problems  that  the  public does  not and
public opinion  about  them would  change if  the public were better
educated. Alternatively, the public may be reacting rationally to
a  qualitative  aspect of the risk  posed  by the problem  that the
"experts" have  failed to take into account in their analysis.


B.5  Geographic Diversity and the Need  for Local Flexibility in
Risk Reduction  Strategies

     The  Subcommittee  generally  concerned  itself with  federal
government  measures  for  dealing  with  national  environmental
problems.  This is partially  a  function  of our  charter to advise
the Administrator of EPA rather than officials at other levels of
government,  and partially due to time  limitations that led us to
concentrate on  developing a few broad recommendations rather than
many  specific  ones.    This  broad,   nationwide  focus  of  our
recommendations  seems  to  us to  obscure an increasingly important
point  about   environmental  protection   in  the   U.S.   —  that
environmental  problems vary  widely  on  a  geographic basis and
federal  environmental  policies  should  respect  the  resulting
geographic  diversity of  needs  and possibilities  for  different,
cost-effective  solutions.  It  is important that Federal policies
to reduce risk  recognize this regional diversity.

     For several decades  federal  pollution control programs have
concentrated on setting and enforcing uniform national standards.
This approach has been motivated by two premises: that each citizen

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Figure B.2

Public Ranking
of Environmental
Problems
Source: Roper Reports,
The Roper Organization
New York, 1990, Volume 90-2
VERY SERIOUS ENVIRONMENTAL PROBLEMS
Actively used Hazardous waste sites
ADandoned nazaraous waste s.ies
Water pollution from industrial waste
Worker exposure to toxic cnermcais
Accidental oil son's
Destruction o* tne ozone layer
Radiation trom nuciear
Dower plant acc'dent
inoXstna' accidents
•eieasing po'iutants
Radiation from radioactive wastes
Outdoor air pollution from
'actones etc
Unaerground storage tanks .easing
gasoune etc
Contamination o< ocea^s-coasta
waters from soyces oes'des o sp
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               Figure B.3
       Comparing Risks to Other Factors


           Risk vs. EPA Budget
Risk High
    Low
               Low
High
 EPA
Budget
          Risk vs. Perceived Seriousness
Risk High
    Low
              Low
High
                                    Public
                                   Concern
                    130

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is entitled to the same minimum level of environmental protection,
and that  industry in  one locale should  not gain  a competitive
advantage  over  industry  elsewhere by  being  subject  to  less
stringent pollution control requirements. The resulting nationwide
programs  have  achieved great  progress;   the  obvious,  pervasive
problems of the past have been greatly reduced.

     Many of  the  problems remaining now are neither conspicuous
nor ubiquitous. Instead, they are site-specific, varying from area
to area and requiring tailored controls at the regional, state, or
local  level  for  cost-effective  mitigation.    Uniform nationwide
requirements on sources of pollution can be an inefficient response
to such problems — they will provide under-control in some areas
and over-control  in  others.   Unique local conditions in  terms of
source  mixes,  exposure   patterns,  meteorology,   hydrogeology,
personal  preferences,  and  numerous other  factors  often  demand
unique local solutions.  We are not suggesting abandoning existing
nationwide  ambient standards; it is  important  to  maintain  the
minimum level of protection they  provide.  We are suggesting local
flexibility in how these standards are attained.

     Today, pollution problems often also require control measures
that  are  outside the  federal  realm  of authority.   Effective
response to nonpoint source water pollution problems  may depend on
land  use  controls.    Carbon  monoxide  and  ozone  air  pollution
problems often require vehicle inspection and  maintenance programs.
Indoor air  pollution may  be addressed most effectively  through
building codes and testing and mitigation required at the time of
property transfers.  To  the  extent  that  pollution  problems shift
more toward being  caused by individuals  and their lifestyles rather
than   by   polluting  industries,   controls  over   land   use,
transportation, zoning,  building codes,  and water  rights  become
important.  Authority over such areas typically lies with state and
local governments.   One  might argue further  that  newer pollution
control requirements  will   intrude  more into  formerly  private
decisions, such as how we use our property, what we eat and drink,
and what  we do  in our  homes; therefore,  decisions  about  these
requirements should be made at less distant levels of government-
-in states and localities.

     These  points argue  for  a  growing  importance  for  states,
localities, and  individuals  in environmental protection.   Their
role should  include  implementing programs that are  designed  and
established  at   the   federal level  and,   more   fundamentally,
determining what  the structure of those programs  should  be; they
can also play an important role as experimenters in policymaking.
Some environmental decisions, where cross-regional or even cross-
national  impacts  are at  issue (e.g. long-range transport  of  air
pollutants or global climate change) and where products  are sold
in  nationwide  markets,   should   be  made  at  the  national   or
international level.   Research is another area in  which  Federal
involvement is most  efficient.  But state and  local governments
and individuals will,  in the  future, frequently be  making basic
decisions about which environmental problems deserve governmental

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attention and what the nature of that attention should be.  Federal
environmental policies  should  provide flexibility  for  state and
local  governments  and   individuals   to   seek  cost-  effective
solutions, while still ensuring a basic level of protection.

B.6   The  Role  of Uncertainty  in  Implementing Risk  Reduction
Strategies

     Uncertainty  analysis plays an  important role in  assessing
health  and   ecological   effects  and  in   attempting   to  rank
environmental problems.   One may rank  a problem as  high priority
for further consideration and possible risk reduction  work either
because it is thought with a great deal of certainty to cause high
risks or because  it might cause high risks  but  there is a great
deal of uncertainty about this.

     In this  latter  case, when  the uncertainty  about  potential
effects is large,  it may be appropriate to conduct further research
to narrow the uncertainty, or  it may  be appropriate to  implement
risk reduction strategies immediately.  If the most  likely health
and ecological damages during  the time needed to do research are
not high and the  cost of  research is  low  compared to  the cost of
risk reduction measures,  research  is the most appropriate step.
However,  if  the  cost  of  the  risk reduction strategies  is low
compared to the  costs  of research and the  expected damages that
would  occur   during  this  period of  research,  it  may be  very
appropriate to implement them immediately, rather than spend time
and money obtaining better data.

     In addition,  it may be appropriate to  consider  certain low
cost  risk  reduction  strategies  concurrently  with   additional
research.      Information-based   strategies   and  certain  market
incentive strategies are  likely to  be good  candidates to achieve
low cost risk reduction.  Two examples of  where risk reduction is
appropriate   even  with  high   uncertainty  are   information
dissemination to individuals  about how  to mitigate  indoor air
pollution and information collection/dissemination  on industrial
solid waste disposal amounts/locations.

B.7   Programmatic  Disconnects.  Particularly in the  Industrial
Sector

     The work of the  Subcommittee  has shown that  many  times  a
single strategy can be  an excellent  option for addressing multiple
problem areas. One example of this  is mandatory waste minimization
audits as a strategy for  reducing chemical  releases to  all media
from the industrial sector.

     In  contrast,  the  current  Agency  approach  to  selecting
strategies  on  a  program-by-program  basis  may  optimize  risk
reduction for each EPA  program,  but not for an industrial sector
as a whole.   In  fact,  the current  approach may lead to shifts in
pollution between media, overlapping regulations which address the
same  problem  in different   ways,   overlapping  reporting  and

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recordkeeping  requirements,  and  inefficient  pollution  control
expenditures  for  the affected  sector and for  EPA's enforcement
program.

     For example, a  growing problem  for the  industrial sector is
the overlap/disconnect  between  the water  office  regulations and
the waste office regulations.  Through recent and upcoming changes
in the NPDES regulations, sludge regulations,  and the  land disposal
regulations,  the  Agency  is  giving  conflicting  direction  to
hazardous waste treatment (and all  industrial sector companies who
perform it) without formal  consideration of the impacts that these
uncoordinated actions have  on the affected industrial  sector or the
waste  management infrastructure.    On   the  one  hand,  the  land
disposal restrictions rule is driving wastes into the NPDES/POTW
system.  On the other hand, the proposed sewage sludge and NPDES
regulations are driving wastes toward the RCRA regulatory system.
Failure  to  integrate  these  rules   will  result  in  additional
unproductive media-shifting of pollutants and severe  strain on the
orderly development of safe treatment capacity.   Moreover, to the
degree pollution prevention is the highest priority goal, this type
of regulatory approach is a very inefficient way to get there.

B.8  Regulatory complexity May Be Counter-productive

     EPA's regulations are  getting more and more  complex.  The best
examples are probably the hazardous waste regulations under RCRA.
Such complexity results from Agency attempts to carefully specify
every aspect of the rule's  coverage and  implementation.  While the
goal is laudable, the results  tend  to be problematic.  Neither the
regulated universe nor the state and regional EPA staff can fully
understand  the .regulations  in  the  period  directly after  rule
promulgation.  Significant non-compliance occurs by companies who
are trying to comply but  can't understand or  misunderstand the
rules due  to  their  complexity.   Also, regulatory agency training
and enforcement resources must increase significantly as a result
of the complexity.

     The goal  of  any regulatory program should  be  environmental
compliance.  Given  that, EPA  should  consider a  trade-off between
a perfect rule (one that solves  100%  of  the environmental problem)
which  results  in  lots of  inadvertent non-compliance  due  to
complexity,  and a  rule which  only  solves  perhaps  80% of  the
underlying problem, but which is crafted so  as  to result in very
high compliance rates.
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            C.  categories and Evaluation of strategy options


C.I  Description of the Strategy Categories


I. Scientific and Technical:

 R  &  D  and monitoring  to understand  the  problem —  Includes
 systemic studies  undertaken  to  establish facts,  insights,  and
 principles and to  make technological advances; applications range
 from improved  assessment  of  a problem to innovative  solutions.
 It includes work in the natural sciences, engineering and social
 sciences.  The  applicability of research and development to reduce
 a particular risk depends upon the extent of knowledge about the
 risk, e.g.,  research and development  is of lesser utility for
 risks for  which the cause and effects  are  well known  and the
 solution lacks only funds to implement.  More  details can be found
 in the 1988 Future Risk report of the Science Advisory Board.

 Innovation  —  Includes the  process  of  transforming  scientific
 discoveries  to  uses  beneficial  to  society.     Technological
 innovation  for environmental  purposes   encompasses  both  less
 polluting   production   processes  and   better   end-of-the-pipe
 treatment  technologies.   Social/institutional  innovation  can
 include  incentives  for risk  reduction  behavior.    Strategies
 potentially  useful  in enhancing   innovation   are:   1)  EPA's
 innovation  program authorized by  each  media  law, 2)  flexible
 permitting  systems,  3)  handling liability concerns,  4)  federal
 assistance,   and   5)    regulatory   changes   that   eliminate
 disincentives.  The extent to which innovation applies to a given
 environmental risk depends upon 1) whether the source of the risk
 is a direct emission versus a reservoir of material or a product
 application, and  2)  whether  science is  available  upon  which to
 base the required solution.  Detail can be found in issue papers
 prepared by the Technological Innovation and Economics Committee
 of the  National  Advisory  Council  for Environmental  Technology
 Transfer.

II. Information:

 Consumer information — Includes  information  provided directly to
 individuals  who are most  likely to be   affected  by  pollution.
 Includes information that helps consumers reduce  their risk (e.g.,
 information  about radon),  helps them  reduce damage  to society
  (information on disposal of  toxic agents) or informs  them about
 potential community threats (Title III  of SARA).  Information can
 affect  business decisions, as well  as  decisions  by  individual
 consumers.
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 Technical assistance and technology transfer — Includes measures
 to inforw-more people about  effective  mitigation techniques for
 the problem and help them implement the  techniques.  The technical
 assistance may be directed at groups causing  the problem (e.g.,
 to industry on pollution prevention;  to  farmers on best management
 practices  for  controlling  agricultural  runoff)  or  at  groups
 working to  ameliorate the problem (e.g., training  for publicly
 owned treatment works operators or technical assistance to state
 environmental programs).

 Auditing — Includes visits by expert  personnel  to  a  site where
 pollution is generated  (e.g. an  industrial  plant,  government or
 commercial facility, institution or farm or resource  extraction
 operation) to observe operations at  the site and suggest ways of
 preventing or controlling the pollution.  EPA may encourage more
 auditing in various ways.  For some  problems we suggest that EPA
 might require audits at  certain plants  by regulation — in these
 cases we list auditing in the "Regulations,  other" section.


III. Market Incentives:

 Marketable permits — Includes systems  where the total amount of
 a polluting activity  is established by  regulation  and then the
 right to conduct the activity is allotted among firms in the form
 of permits.   Firms that  reduce  pollution below  their allotted
 amount  of  permits may  sell  or trade  surplus permits  to other
 firms.   Those  sources  that  have the  lowest  cost of  abating
 pollution have an  incentive  to control more  and  to sell excess
 permits, whereas  those  firms with high  pollution  control costs
 have  an  incentive  to   buy  permits,   rather than  to  control
 pollution.  In  theory,  the  result is  that the  desired level of
 pollution reduction is achieved at lowest total  cost.   Congress
 currently is considering using marketable permits to control acid
 rain.

 Deposit/refund systems — Includes schemes  in which a surcharge
 is  levied on an item  (e.g.,  beverage  containers)  when  it is
 purchased and before it is used, with the surcharge being refunded
 if  the  item is  returned after  use.    The  deposit provides an
 economic  incentive  to  return  the  item  (often for  reuse  or
 recycling) rather than to dispose of it.  The approach has been
 used to encourage recycling of beverage containers and could also
 be used for products such as tires and  batteries.

 Fees  and  taxes  — Includes  systems in which fees  or  taxes are
 assessed  on emissions or  on materials  or  products that cause
 pollution.  This increases the cost of pollution and  creates an
 incentive  for   polluters  to  reduce the amount  of  pollution.
 Polluters generally would be  free to decide how much they want to
 continue to pollute.  In theory, they will reduce pollution up to
 the point where  the marginal cost of  control equals the fee or
 tax.  The  amount of pollution control   that is  likely  to result
 from a given fee usually can  only be roughly estimated in advance

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 of imposing the fee.  An example might be a  tax  on  emissions of
 sulfur compounds by power plants.  Fees or taxes may also be used
 in conjunction with other regulatory controls. Fee receipts often
 can be  allocated directly to  cleaning  up remaining  pollution,
 whereas tax receipts usually  get  added  to general  revenues and
 bear no further  relationship  to the environmental  problem they
 are intended to solve.   Environmental fees and taxes  are rarely
 used in the U.S.

 Subsidies  & tax credits — Includes measures that reduce the cost
 of controlling pollution, rather than raising  costs as do fees and
 taxes.  Subsidies  and  tax credits could  be  keyed to  levels of
 emissions   or  pollution,  but  they  have  typically  been used  to
 defray part of the expense of pollution control systems.  Examples
 are federal matching grants  for construction  of municipal sewage
 treatment  plants and pollution control bonds.   This category also
 includes  strategies to  eliminate  government   subsidies  that
 inadvertently create incentives that have adverse  environmental
 consequences.   For example,  "below cost"  timber  sales  could lead
 to increased timber cutting  and to substantial  losses  in habitat
 and damage to watersheds.


 Other — Includes other measures that rely on market  incentives
 or  that remove  barriers  to  market  activity  that could  have
 environmentally  beneficial  effects.   Examples  include:  using
 federal procurement to commercialize an emerging,  environmentally
 beneficial  technology;  changing  the  standards   under  which
 polluters  are legally liable for damages they cause; and removing
 constraints on trading  scarce  western water rights.


IV. Conventional Regulations:

 End-of-pipe  controls  —  Includes  regulatory  measures  that
 prescribe   allowable  levels  of pollution  or  emissions,  or that
 require the use of specific  or equivalent control technology.

 Use restrictions —  Includes  restrictions on the ways in which
 potentially harmful materials may be used.  Examples include: bans
 on  the use of chlorofluorocarbons as  aerosol   propellants and
 restrictions on crops to which specific pesticides may be applied.

 Product specifications — Includes  standards specifying content
 or performance of products.    Examples include:  limits on sulfur
 content of diesel   fuel;  and  tolerance  levels for  pesticide
 residues on foods.

 Monitoring and public disclosure — Includes measures that require
 polluters  to monitor their emissions so as to enable  federal or
 state  agencies  to  enforce   regulatory  requirements.    Public
 disclosure  of  such   information   may  enhance   governmental
 enforcement through activities of public interest  groups and
 citizen suits.

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 Other — Includes other  regulatory  measures  not included in the
 previous categories.  Examples include: requirements that states
 implement specified environmental control programs; requirements
 that environmental testing laboratories be certified; and audits
 of environmental control activities.
V. Enforcement

 Includes measures to  enhance  existing  enforcement and to obtain
 greater  compliance  with existing  regulatory requirements.   In
 addition to traditional enforcement by  the government it includes
 innovative measures such as citizen suits.

VI. Cooperation

 With other agencies — Includes efforts by EPA to cooperate with
 other federal,  state,  or local agencies in  using the Agencies'
 different statutory authorities, expertise,  delivery mechanisms,
 etc. in  a  concerted approach to environmental  problems.   There
 are  many  such  opportunities  in  the  areas  of  energy  policy,
 agricultural policy, etc.

 With other countries — Includes efforts to cooperate with other
 countries to mitigate  an environmental problem.  In several cases,
 such as  stratospheric ozone depletion and global warming,  such
 cooperation is essential.


VII. Indirect Measures

     There is another category of measure on which the Subcommittee
did  not  focus  very  intensively  because they are  not  direct
government actions,  but which  are generally  acknowledged to play
a  very  important part in the  reduction of  environmental  risk.
These are broad social  trends which EPA has some ability to affect.
It  may  be  possible  to  compare the  amount  of  risk  reduction
resulting from an indirect measure with  that resulting from one of
the more direct strategies.

 Public relations — The  increasing concern  of corporations with
 their public  image  and the damage done to this  image  by  being
 branded as a polluter.

 Liability  and  insurance  —   The   increasing  degree  to  which
 polluters  are legally  liable  for  the damages they  cause;  the
 decreasing degree to  which  the risks  entailed by this liability
 can  be  transferred to  insurers;   and the  increasing  cost  of
 premiums for such insurance.

 Disposal costs  — The increasing cost of disposal  of solid and
 hazardous wastes and the strong resulting pressure  to reduce their
 generation.

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 Capital turnover — The extent to which an environmental problem
 will be  mitigated as  a  result of  the  natural turnover  of the
 nation's capital stock.  New capital equipment tends to use less
 energy and is often less polluting.

VIII.  Pollution Prevention

     Pollution  prevention could  be  stimulated  by  any  of  the
foregoing options.  For example, market incentives could be adopted
to  discourage use  of harmful  products  or  to conserve  energy.
Regulations could ban use of certain products.  Information could
assist consumers to buy environmentally benign products.  While not
a measure per se. we have listed it here to show its relationship
to the broad range of measures.
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C.2  Description of Rating Criteria for Strategy Options


 Cost  to EPA  —  The  annual  cost to  EPA  of  implementing  the
 strategy.

 Cost  to  society — The  annual cost to  the public  and private
 sectors of the U.S.  (excluding EPA) of implementing and complying
 with  the strategy.   Transfer payments should not  be counted as
 costs.

 Dependability — The degree  of assurance  that the  strategy will
 obtain the desired risk reduction.

 Speed — The rapidity with which risk reduction is likely to occur
 following initiation of the strategy.

 Implementability/enforceability  —  The  ease  with  which  the
 strategy can be implemented,  and  the ease with which compliance
 with requirements  under the strategy can be enforced against those
 who are objects of the requirements.

 Intermedia transfers and other environmental benefits  — Indicates
 whether the strategy  reduces  (or increases) pollution  in other
 media  or  ameliorates   (or   exacerbates)   other  environmental
 problems.

 Risk  reduction —  The   fraction of  the  risk  posed  by  the
 environmental problem that will be reduced by the strategy.

 Cost-effectiveness — Provides an assessment  of the  cost of the
 strategy relative  to the absolute amount of expected environmental
 improvements.   Cost-effective strategies have a  low cost per unit
 of risk reduced or pollutant or activity affected.  Cost-effective
 strategies may be  difficult to develop for environmental problem
 areas with  low absolute risks  — areas that  either inherently
 involve only  low  risks,  or  areas  where  residual risks  are  low
 because of substantial progress already in risk reduction.

 Short-^erm and long-term scores  — Provides overall  assessments
 of the desirability of the strategy  as a  risk reduction measure
 in the short term  (up to 10  years) and the long term (beyond 10
 years).
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