HC79.E5
E63
1980
                                 100R79001
United Stales
Environmental Protection
Agency
Office of Planning
and Management
Washington DC 20460
April 1979
vvEPA
EPA  Guidance to the States
Fiscal Year 1980

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     EPA GUIDANCE TO THE  STATES
          FISCAL YEAR 1980
U,S,  ENVIRONMENTAL PROTECTION  AGENCY
          WASHINGTON,  D,C,
             APRIL  1979

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                      FOREWORD
     This is the second year EPA has published a Guidance
for the States separate from its larger internal Agency
Guidance.  This was done originally because the scope of
the Agency Guidance had expanded, and we wanted to give
the States a guidance of manageable size which highlighted
items of interest to them.

CONTENTS

     The State Guidance consists of two parts.  The first
contains the Administrator's Policy Guidance, in which
Administrator Costle and Deputy Administrator Blum summarize
their priorities for the coming two years.  Following the
Policy Guidance are Overview Statements from each of the
Assistant Administrators, which highlight their priorities
for specific programs and expand on the themes raised by
the Administrator and Deputy Administrator.

     The second part of the State Guidance contains a
description of what EPA will look for in State program
plans, and sets forth those requirements on which EPA will
base its grant negotiations with the States.  As such, it
translates national priorities into specific program
direction, while recognizing that varying needs and
conditions among States must be taken into account.  State
Projected Program Accomplishments (PPA's) are items which
the States should address in their plan submissions and
report to the Regions as measures of progress in achieving
their objectives.

RELATION TO STATE/EPA AGREEMENTS

     The purpose of the State Guidance is to describe EPA's
national objectives and priorities for the coming fiscal
years, with particular reference to EPA programs which
provide grants for State and local assistance.  The
Guidance identifies areas which State, local, and areawide
agencies should emphasize in preparing their grant program
plans.  State/EPA agreements, developed in accordance with
this Guidance, translate it into specific actions which
States agree to perform after discussions with the Regional
Office.  State/EPA agreements also promote flexibility in
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achieving national goals and priorities, by taking parti-
cular State and Regional needs into account and encouraging
program planning across media lines to meet those needs.
     EPA recognizes that differences between national
objectives and decentralized implementation will inevitably
appear in its programs.  These differences should be dealt
with openly, in a spirit of candor and cooperation; we hope
that this State Guidance will contribute to this spirit and
promote our common efforts on behalf of environmental and
public health protection.  The success of this Guidance will
be measured by how well it serves these goals.
                          IV

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             EPA GUIDANCE TO THE  STATES
                  FISCAL YEAR  1980
TABLE OF
CONTENTS

FOREWORD	iii

ADMINISTRATOR'S/DEPUTY ADMINISTRATOR'S
      POLICY GUIDANCE  	    3

ASSISTANT ADMINISTRATORS' OVERVIEWS

     AIR, NOISE AND RADIATION	11

     WATER AND WASTE MANAGEMENT	16

     TOXIC SUBSTANCES	20

     ENFORCEMENT	35

     RESEARCH AND DEVELOPMENT   	   42

     PLANNING AND MANAGEMENT  	   48

STATE GUIDANCES

     AIR	53

     WATER QUALITY	89

     DRINKING WATER  	  125

     SOLID WASTE	133

     TOXIC SUBSTANCES	149

     PESTICIDES	161

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 ADMINISTRATOR'S POLICY GUIDANCE



             1980/1981
DOUGLAS M, COSTLE, ADMINISTRATOR





BARBARA BLUM, DEPUTY ADMINISTRATOR

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             ADMINISTRATOR'S POLICY GUIDANCE
     EPA and State and local agencies can be proud of what
they have accomplished over the last two years.  We have
won strong legislative mandates, and we are making good
progress in implementing them.  EPA is better  integrated,
and we have begun the process of strengthening our State
and local relationships.  We are making good progress in
developing effective controls for toxics.  In  area after
area we are recognized front-runners in the Administration's
reform efforts.  The air and the water are getting cleaner.
The people, the President, and the Congress support our
work: they respect both our professionalism and our
ability to get a tough job done.

     This Guidance addresses the future.  But  before we
go on to define what lies ahead, we wanted to  note how far
EPA has come.  The Agency has been working hard and well.
Congratulations and our thanks.

     In this Agency Policy Guidance we identify what we
feel the Agency's priorities should be for the next
several years.  Our Assistant Administrators follow with
more detailed guidance for each of their areas of respon-
sibility.  We have worked closely with them in developing
these program guidances.

     Broadly stated, the Agency's priorities are as
follows:

     o  To reduce public exposure to dangerous
        pollutants;

     o  To protect sensitive ecological systems;
        and

     o  To improve management of our environmental
        programs.
REDUCE PUBLIC EXPOSURE TO DANGEROUS POLLUTANTS

     Over the last several years we have come to understand
more of the connections between the thousands of chemicals
our society has put into our environment and a great many
of the diseases that afflict modern man.  EPA has been
given lead responsibility for identifying, evaluating,
and controlling environmental pollutants.  Doing so is one

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of our chief objectives.  We are approaching the problem at
every point — when a chemical is produced, shipped, used,
or ultimately disposed of.  Our Toxics, Air, Water,
Pesticides, Drinking Water, Radiation, Hazardous Waste,
and spills programs must all give the toxics problem
greater priority.  In doing so we expect that all action
on individual pollutants should generally be governed by
the principle of addressing first those that present the
greatest health risks.  A major part of that effort has
been the development of an integrated strategy for toxic
substances, a strategy which we will continue to develop
and refine throughout 1980 and 1981 through vigorous
implementation of the Toxic Substances Control Act.

     As another element of an Agency-wide toxics strategy,
we will develop an Agency cancer policy.  The policy
will provide a framework for continuing decision-making
in our pesticides, toxics, and drinking water programs
and for emerging carcinogen regulations under the Agency's
air, water, and hazardous waste programs.

     Finally, our urban strategy is a key part of this
effort because it is based on attacking the unhealthy
environmental conditions of cities.  We expect the
Assistant Administrators and you to continue to implement
our existing urban initiatives and to develop innovative
solutions for urban problems.

PROTECT SENSITIVE ECOLOGICAL SYSTEMS

     Increasingly during the past two years, we have
focused the Agency's efforts on dealing with pollutants
as they affect public health.  Ultimately, however, we
must protect the environment that supports us and all
other life.  While continuing to clean up our air and
water, we need to give much more attention to particularly
sensitive environmental systems such as wetlands.  Though
natural systems like wetlands and fisheries are usually
described as renewable — on the assumption that they can
regenerate themselves when depleted or damaged — we are
beginning to learn how fragile they truly are as we begin
to understand sensitive ecological relationships.  Once a
groundwater supply is contaminated with toxics, for
example, it may take centuries for natural restoration
(or millions of dollars for clean-up) if it is ever to
support healthy natural life or to be used for drinking
water.

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IMPROVE MANAGEMENT OF OUR ENVIRONMENTAL PROGRAMS

     We have made a major commitment to finding better,
more effective ways of regulating.  There are almost fifty
reform efforts in progress across the Agency now.  We are
beginning to see the results of this commitment, and we
expect a great many more initiatives to move into
implementation stages over the next several years.  We
will continue to look for complements to traditional
regulation, such as offsets and the bubble, our reporting
requirements, sunset, and procedural simplifications.  We
want your active help in finding better ways to carry out
our responsibilities.  Specifically, we want to continue
to:

     o  Integrate EPA programs -- We have made a good
        start in our efforts to consolidate our grant
        and permit programs.  The integration of programs
        in water quality, drinking water, solid waste,
        hazardous wastes, and underground injection can
        serve as a good model for other program areas.

     o  Strengthen Federal/State/local partnerships --
        Establishing the State/EPA Agreements and
        encouraging appropriate delegation should streng-
        then and improve environmental programs at all
        levels.  We also need to retain and improve our
        ability to assess performance at all levels.  We
        want to work for passage of an Integrated Environ-
        mental Assistance Act as a legislative base for
        increasing management flexibility between us and
        the States as well as in State programs.

     o  Improve coordination with other Federal agencies —
        We must make greater use of the IRLG and Regulatory
        Council mechanism to assure coordinated and
        concerted action among all Federal agencies.  We
        must work particularly closely with the Department
        of Energy in developing environmentally and health
        sensitive energy policies.

     o  Reform and refine our management practices —
        In this area we are emphasizing the completion of
        Civil Service reforms recently enacted.  We must
        also put in place the planning, zero-based
        budgeting accountability system for the Agency.

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        In addition, we are reassessing our monitoring
        with an eye to the quality, utility and compati-
        bility of our information systems.

     o  Improve regulatory reform — We are giving major
        emphasis to the development of more flexible, less
        costly alternatives to our traditional regulatory
        approaches, such as the "bubble" concept and
        "banking" of offsets in nonattainment areas.  We
        want to continue improving the quality of our
        regulations.  One of the most important elements
        to the latter is continued strengthening of the
        Steering Committee; we want to enlarge the role
        of the Regions in this process.

     o  Strengthen the Agency's research capacity and
        programs — We want to improve our ability to
        forecast environmental problems and solutions,
        particularly in the long term.  We need to expand
        the data base for our regulatory decision-making.

     Finally, there are a number of cross-cutting issues
we want to flag.  We expect:

     o  a strong commitment to improving public partici-
        pation;

     o  a determined affirmative action program; and

     o  continued attention to the Administration's
        urban programs.
     The 1980-1981 planning years present a great challenge
to us as managers.  We must continue to move this Agency
toward protecting public health and the environment more
fully.   We expect that each participant in this planning
will consider how his or her program can contribute to
these initiatives.

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                           - 7 -
     The following sections of this Guidance set forth our
priorities in greater detail.  They serve as the basis for
FY 1980 Federal and State program implementation and as
the policy framework for program and resource recommen-
dations to the President for FY 1981.
                                       [as M. Costle
                                  Administrator
                                  Barbara Blum
                                  Deputy Administrator

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ASSISTANT ADMINISTRATORS' OVERVIEWS
      AIR, NOISE, AND RADIATION



      WATER AND WASTE MANAGEMENT



      TOXIC SUBSTANCES



      ENFORCEMENT



      RESEARCH AND DEVELOPMENT



      PLANNING AND MANAGEMENT

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         OFFICE OF AIR, NOISE, AND RADIATION

     Overview Statement of Priorities and Goals

      David G. Hawkins, Assistant Administrator


PUBLIC PARTICIPATION AND INFORMATION

     Each OANR program plan should include resources and
should plan for effective participation.  Limited resources
should also be available for case-by-case assistance to
participants in a small number of major rulemaking and/or
permit proceedings.

     I would also like OANR offices to work with Regional
Offices to develop effective public participation programs
for their activities.

     Finally, each office should review existing public
information materials in its area of responsibility.
Program plans should provide for major improvements in
our information base and should include a system for
keeping our public information materials current.  Please
work with our Office of Public Awareness representative
in this effort.  Our laws, particularly the Clean Air
Act, are complex but their purposes and effects can be
simply explained.  We must make more of an effort to do
so.

AIR

     High priority must be given in 1980 to completing all
actions required as a result of State implemention plan
submissions in 1979.  Most plan approvals, disapprovals,
and promulgations should be completed in 1979, as should
the schedules for implementing the plans.  However, some
such actions may not occur until 1980.  We must have in
place systems for tracking State progress in implement-
ing their approved plans.  We need to emphasize and
develop ways of assuring that the States assume their
responsibilities under the plans including all new source
review responsibilities.  It is especially important that
we encourage States to implement the program for Prevention
of Significant Deterioration.

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                         - 12  -

     During 1980 programs for visibility protection and
Prevention of Significant Deterioration for pollutants
other than TSP and SO  should be ready for implementation.
States should be urged to assume responsibility for these
programs as well.

     The next major round of SIP revisions will be in 1982
for those areas where EPA has granted extensions beyond
the 1982 deadline.  Our guidance requires that for ozone
these areas base their revised plans on an air quality
model.  It appears that the most appropriate technique for
protecting future air quality in this round of SIPs will
be the relatively complex dispersion models which account
for photochemical reactions.  We should give high priority
in 1980 to the acquisition of data required for these
models and to validating them.  The 1981 program plan
should provide for the use of these models in all areas
where required in a time frame that permits technical
review and public participation on development of control
strategy to assure meeting the Clean Air requirements.

     The general problem of lack of confidence in air
quality data also must be addressed in 1980.  Emphasis
must be given to the establishment of technically sound
sites and procedures for National Air Monitoring Stations
(NAMS) and State Local Air Monitoring Stations (SLAMS) as
required by our monitoring regulations.  Participation by
State/local laboratories in quality assurance programs
should be mandatory.  If the programs require additional
resources, this should receive a high priority in the
1981 budget request.

     At Headquarters, by December 31, 1890, we must have
completed our review and appropriate revision of all
existing ambient air quality standards.  The plan for
1980 should clearly recognize this requirement and, given
the need for a better quantification of benefits, provide
for the development of such a data base and analyses as
may be required.

     The budget for 1980 provides funding to complete the
development of new source performance standards for all
major stationary sources by 1982.  The program plans for
1980 and 1981 must demonstrate that we are on a schedule
which will meet that statutory deadline.

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     No large  increment  in  resources  is  bein>7  provided  in
1980 for activities related  to  he./-.^--doar; ^i~ pollutants,
I expect that, before  the next  13 seal  year  negiris,  we will
have in place  a policy on air carcinogens providing a
systematic approach to substantially  reduce risks  from  air-
borne carcinogens.  Our  plan in 1980  should provide for
the orderly  implementation  of that policy with a irr-.jor
intensification of actions  in 198],   Thin program  sl-ould
take into account and  be coordinated  with other programs
regulating risks from  toxic or  hazardous pol.luf.ancs.

     In Mobile Sources we should  have-  completed alJ  vehicle
rulemaking specifically  required  by the  Jiean  Air  Act in
1980.  Our future standard-setting prooram  ; hould  aiddress
the need to  regulate presently  unregulated  pol.utants,  and
resources to address the light-duty diesel  jhould  be
available in 1980 in the event  that re; crrch estabL-snes
the need for additional  action.   Our  1980 program  should
focus on such  assessment activities as may  be  necessary if
standards are  to be proposed in FY 1981  or  subsequent
fiscal years.

     Given commitments to inspection/maintenance programs
in the SIP's,  we must  be in a position of being able to
provide expert guidance  to  State  and  local  I/M programs.
The 1980 plans should  address,  as  a matter  of  priority,
such data gathering and  assessment as  may be necessary  to
assure that we can assist I/M programs to achieve  their
maximum potential.

     We should give major attention to other activities
which will help assure that vehicles  in  u^ pet form as
intended, and  the 1980/81 plans should spec! cic
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                         -  14  -

To the extent the 1980 budget is not adequate to complete
the required pre-regulatory work for light duty vehicles
and tires, the Agency should not make formal commitments.
These sources would then be a major initiative in the
1981 budget.

     Although I am attracted by the idea of using noise
labeling as a method of enhancing consumer choice,. I
believe we should complete promulgation of the general
labelling and hearing protector regulations first.  Any
proposal for additional work in the labeling area- in
1980 must be carefully tailored to fit within available
resources and my desire for us to complete pending
actions.  An expanded program may be considered in 1981,
but it should have a lesser priority than work related to
transportation sources.

     I am anxious that we show material progress in
implementing the Quiet Communities Act.  To the extent
that our stated goals of 400 communities and 40 States
with effective noise programs provide a real basis for
program planning, our program plans for both 1980 and
1981 should clearly indicate projected progress against
these goals.

     We should likewise display our actions to. undertake
investigations and studies on a more complete health
base for noise control against a specified objective..  I
think it important that we develop an outline which
indicated the areas in which new information should be
produced on a priority basis and that our proposed
research-related plans in both 1980 and 1981 indicate how
they will meet our needs as outlined.
RADIATION

     In radiation the mission of EPA is now reasonably
well defined as a result of the IRG Report, Libassi
Committee deliberations, NRC Agreements, and our own
actions in developing criteria for waste disposal.  The
IRG Report indicating the multi-agency nature of the
Federal government's nuclear waste management program
should be used as a blueprint for defining the scope of
and timing required for EPA standard-setting in this
area.  The program focus in 1980 should be on actions
delineated in that report.

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                         -  15  -

     The priority we give to actions under the Clean Air
Act must be a product of the reduction in radiation risk
which such actions can accomplish compared to reduction
achieved in other radiation programs.  To the extent that
priority must be given to the issue of radioactive waste,
and/or to the completion of standards required under the
Uranium Mill Tailings Act, I am willing to accept a slower
rate of progress on Clean Air Act-related problems in 1980,
Nevertheless, the program plan for 1981 should present a
full range of actions to effectively implement our deter-
minations on the nature of radioactive air pollution
problems, we should assign them high priority,

     Given the acknowledged limitations of our resources,
I would expect only limited EPA resources devoted in 1980
to implement EPA's general authorities to provide Federal
radiation guidance.  I would much prefer that we take time
to establish an interagency committee to review the poten-
tial scope of the guidance function and assess priorities
as our major program action in the guidance area in 1980.
Implementation of the committee's recommendations would
follow in 1980 and 1981.   Additional resources for EPA in
1981 could be sought where necessary to supplement the
resources of other agencies.

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             OFFICE OF WATER AND WASTE MANAGEMENT

          Overview Statement of Priorities and Goals

          Thomas C. Jorling, Assistant Administrator
     The priority objectives of EPA's Water and Wastewater
Management programs are to implement statutory mandates
providing for:

     o  Achievement and maintenance of the physical,
        chemical, and biological integrity of the Nation's
        ground and surface waters,  with special emphasis
        on protection of public health and sensitive
        aquatic ecosystems;

     o  Treatment, containment, and control of toxic and
        hazardous materials in solid waste;

     o  Protection of an adequate supply of high quality
        drinking water for public consumption; and

     o  Federal, State, and local development of integrated
        environmental management systems which minimize
        transfers of pollutants between media and which
        identify optimal ultimate disposal strategies for
        pollutants.

     The objectives described above can be achieved most
efficiently in terms of both dollars and manpower through:

     o  Effective use of State planning and program funds
        to implement water quality management, water supply,
        and solid waste management goals through State/EPA
        Agreements;

     o  Management of the $4 billion/year construction grants
        program to meet the treatment needs of publicly owned
        treatment works (POTW's) effectively at least cost to
        all levels of government;

     o  Application of alternative, innovative, and cost-
        effective technologies and management practices
        to solve water and solid waste pollution problems;
        and

     o  Emphasis on resource recovery, reuse, and recycling
        to conserve energy, materials, and water.

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      The objectives and man,:-,, ;,i  ,u     •.'L. to ?-,:hieve them
be  delivered v;ti:Jn « cent .-•.,*;   '  ,.  .  .'.it. iut,', a'-,ior. a^3
consolidation.   An integi.cii.eo  .",>,:.!••  >.OL  <_he Agency and  toi:
OWWM  in  particular arises because  the Resource Conservation
and Recovery Act (RCRA) clos.-j^  ta •  ^ap;;  in the waste disposal
cycle left by previous air and v:--ai>.-r  J ,; j isl.-,- t ior bv *r"O*'iding
control  for the disposal o,_  oo I iur ant ~; :•,: or o;i tliu .-.cui<.1
Since there is  no "free dumping  • ..:<.. i<'d ,  an int .-g^a^t r.
approach is necessary to detei ii< i no  ;,i:e oest mix of epv .^on-
mental controls to minimize  tru.-.  adv•: - c~^  ^ i ^rs't,-;  ,f -~ > .  it.ion.
These integrative efforts *iLI •-e  i.ic.n<  • ,-t in the •*? y  ;-^
deal  with identifiable cirecus CL  'joni.^-J  :•,  r' ^•.i..l'.,..' ; .  To,
example;  many programs witni.-i OwwM  &v.'•  -.;n specific c ler.iicals.
When  one program is dealing  with  <  jjrocerfs  to con..rol point jnd
nonpoint  sources of pollution.   Current  WQM efforts are
concentrated on plan implementation  to achieve water quality
improvements.   Continuing WQM grants  wilJ. only be made to
State arid areawide agencies who  can  show evidence of imple-
mentation.

      In  managing the $4 billion/year  construction grant
program,  the Agency will consider puLljciy-owned treatment
work  systems as a structural  and  functional component of
human community.   This should enable  questions relating to
levels of performance and technology,  operations and
maintenance,  sludge management,  pretreatment,  toxics,
combined  storm  water overflow an.i urnan  drainage ~,c be
viewed as parts of a single  system.

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                          - 18 -
     EPA's strategy for 1980-81,  then, is to orient funding
toward meeting environmental requirements through stringent
cost-effectiveness review and to stress innovative and
alternative approaches to waste treatment, including water
and energy conservation, reuse and recycling of pollutants,
and small systems.  Funds earmarked for State delegation
under Section 205(g) of the CWA will be directed toward
State assumption of program activities with high pro-
fessional quality consistent with Congressional policy and
requirements.  In addition, the construction grant program
will move rapidly toward reinforcing other Agency actions
such as the control of toxics and enforcement objectives
through implementation of the municipal enforcement strategy.

     Industry is a key focal point for the application of
technology and management practices to control environmental
pollution.   The multiple controls on industry must be
applied in a coherent way to a single facility or industry
category to control toxic and hazardous pollutants effectively,
The available control mechanisms include spill prevention
control plans; best management practices for toxics; BAT,
pretreatment, new source performance standards, and BCT;
RCRA hazardous waste controls; and underground injection
control (UIC).

     This arsenal of controls will be implemented coherently
through consolidated permitting of NPDES, RCRA Section 3005,
and UIC permits.  Permit consolidation will enable concen-
tration on programmatic, environmental, and procedural
permitting elements which allow technical and legal talents
to be applied effectively and efficiently to achieve environ-
mental objectives.

     All OWWM programs will emphasize conservation of our
precious natural resources:  energy, water, minerals and
other materials.  The resource recovery program will strive
to maximize the use of energy and materials which are
currently disposed of as solid wastes.  Municipal and
industrial point source control programs will stress
reuse of wastewater and recycling of pollutants through
standards, permits, and financial assistance.  In parti-
cular, the construction grants program will focus attention
on multi-purpose projects which recover energy and materials
and reuse wastewater.

     Four final OWWM priority areas are:  attention to
specific ecosystems; development of criteria and standards;
implementation of new OWWM public participation regulations;
and emergency response.

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                     - 19 -
o  An important focus is on specitic ecosystems or
   subsets of ecosystems, such c:s:  .jround water as  it
   is influenced by the programs of (,,vW7M; wetlands
   protection as it is specifically achieved by the
   regulatory program under section 404, and wetlands
   as influenced by such other factors as solid waste
   facility siting, treatment syste.43 siting, and
   others.  The ocean? represent another ecosystem
   which is high priority and can only be protected
   by the integrated application of uWWM programs.

o  Another integration of OWWM activity ranging across
   all programs is in development of criteria and
   standards.  Water quality criteria, 404 criteria,
   403 criteria, safe drinking water standards, and
   hazardous substance criteria  all will be looked at
   as they are developed, issued and applied.

o  Overall public participation  regulations for water
   quality, water supply and solid waste programs,
   which were promulgated in February 1979, will be
   implemented in 1980.  These regulations support
   program integration objectives by standardizing
   certain public participation  requirements for OWWM
   programs.  They should foster more effective and
   constructive public involvement across these
   programs.

o  1980 must see the emergency response capabilities
   of OWWM integrated so that the various authorities
   under the Safe Drinking Water Act, Resource
   Conservation and Recovery Act, and the Clean Water
   Act are carried out in a coherent way by adequately
   trained people.  We must build on the emergency
   response capabilities already in place under
   section 311 and expand them to recognize that the
   response is attentive not just to surface waters
   but also to ground waters and to the landscape
   and atmosphere.

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            OFFICE OF TOXIC SUBSTANCES

    Overview Statement of Priorities and Goals

    Steven D. Jellinek, Assistant Administrator
     This Overview Statement lays out what I believe
to be the important priorities for achievement by the
pesticides and toxics programs for the years 1980
and 1981.  As such, it represents my "guidance" to
the managers and staff of the two programs and infor-
mation of interest to our colleagues throughout the
Agency.

     I have arranged the objectives for each into
"general" and "specific" categories.  The specific
objectives are subdivided further into "highest"
priority, "high" priority, and "other."  We have no
low priority objectives.

     The general objectives are provided to give a
sense of what I believe are the thrust and tone of
the programs.  The specific objectives are more in
the nature of outputs I expect to be delivered.

TOXICS—1979

General Objectives

     o    Continue the thrust toward institution-
          building.  From the organizational per-
          spective:

          -    Secure adequate space.

               Staff up to budgeted levels with
               qualified professional and support
               personnel, with special efforts on
               increasing the number of women
               and minorities.

               Organize to the branch level.

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     From the regulatory perspective;

               Place more emphasis on premanufacture
               review, test standards, and test rules.

               Give less emphasis to existing chamical
               regulation.

     o    Complete the development of a jviority
          setting system for choosing chemicals for
          testing and regulation unde1;  1SC;\ i;io
          other statutes; clarify and t-stdolish the
          role of the Toxic Substances Priorities
          Committee in this system.

     o    Develop a detailed program planning system
          for each DAA-ship.

     o    Clarify the regional role in TSCA implementation.

Specific Objectives

     Highest Priority

     o    Publish the Chemical Substances Inventory.

     o    Promulgate the final regulations on premanu-
          facture notification; establish and operate
          a system for screening and assessing notices;
          and take actions under TSCA sections 5Ce)
          and 5(f) to prevent or control the manufacture
          of new chemicals,  as required.

     o    Promulgate a final regulation establishing
          test standards for oncogenicity, chronic
          toxicity,  combined oncogenicity and chronic
          toxicity,  and good laboratory practices.

     o    Propose the first section 4 test rule
          requiring industry to test 20-30 chemical
          substances and categories of substances.

     o    Propose a rule under section 8(a)  to develop
          basic use/exposure information on approximately
          2-3,000 chemicals  to aid in setting priorities
          for regulation.

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                       - 22  -
          Propose a regulation under section 6 banning
          or limiting the use of one existing chemical
          that poses an unreasonable risk to public
          health.

          Fully implement the program to help States
          and school districts identify and control
          asbestos in school buildings.
High Priority
          Propose testing guidelines for premanufacture
          notification.

          Propose remaining test standards for health
          effects and several fate and ecological
          effects test standards; resolve inconsis-
          tencies with pesticides testing guidelines.

          Conduct health and environmental effects
          assessments, monitoring, and economic impact
          analyses to support regulation of new and
          existing chemicals.

          Follow premanufacture notices with individual
          "significant new use rules" and/or individual
          section 8(a) information rules for a few
          selected new chemicals, as required.

          Begin the development of generic follow-up
          systems for "significant new use rules" and
          section 8(a) information rules for new
          chemicals.

          Begin developing proposed regulations banning
          or limiting the use of an additional 2-4
          existing chemicals that pose an unreasonable
          risk to health or the environment.

          Complete an analysis of the issues concerning
          the impact of testing costs on small volume
          chemicals and, if appropriate, develop
          proposed legislative solutions.

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Other
                         23 -
          Continue the development of TSCA and inter-
          agency chemical information systems and data
          bases.

          Complete the development of responsive and
          effective document control data services,
          and FOI procedures.

          Develop model rules for information gathering
          under section 8(a).
     o    Develop a process to review and act expedi-
          tiously on carcinogens, mutagens, and terato-
          gens under section 4(f).

     o    Initiate the development of generic approaches
          to banning or controlling the use of chemicals
          under section 6.

     o    Promulgate the PCB ban rule.

     o    Provide industry assistance on TSCA require-
          ments.

     o    Distribute State grants.

     o    Continue development of public participation
          programs.

     o    Support OECD and other planned international
          harmonization programs.

     o    Propose model regulations under section 8(c)
          and 8(d) to require recordkeeping and submission
          of health and safety studies concerning signifi-
          cant effects of chemicals.

TOXICS—1980

General Objectives

     o    Continue the thrust toward institution-
          building.   From the organizational perspective:

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                       -  24  -
               Staff up to budgeted levels with
               qualified professional and support
               personnel, with special efforts on
               increasing the number of women and
               minorities.

               Build effective staff teams through
               management actions and training.

     From the regulatory perspective:

          -    Fully operate premanufacture review
               and test rule development.

               Increase emphasis on existing chemical
               regulation, both individual and generic
               approaches.

     o    Operate a priority-setting system for choosing
          chemicals for testing and regulation under TSCA
          and other statutes, in conjunction with the
          Toxic Substances Priorities Committee.

     o    Operate a detailed planning system for the
          toxic substances program; initiate formal
          evaluation; modify program design, as needed,
          to increase quality and quantity of output;
          develop, jointly with the R&D community,
          specific program requirements for high
          priority research; examine the need for
          major legislative changes in 1981.

Specific Objectives

     Highest Priority

     o    Fully operate the premanufacture notification
          review process; take actions under sections
          5(e)  and 5(f) to prevent or control the
          manufacture of new chemicals, as required.

     o    Promulgate the section 4 test rule proposed
          in 1979; propose and promulgate additional
          test rules.

     o    Conduct health and environmental effects
          assessments, monitoring, and economic
          impact analyses to support regulation of
          new and existing chemicals.

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                 - 25 -
o    Promulgate the section 6 regulations proposed
     in 1979 banning or limiting the use of one
     chemical; propose section 6 regulations for
     several additional existing chemicals.

o    Promulgate the section 8(a) information rule
     on 2-3,000 chemicals proposed in 1979.

High Priority

o    Promulgate final testing guidelines for premanu-
     facture notification.

o    Propose and promulgate model rules under
     section 8 (a); promulgate model rules for
     sections  8(c) and 8(d).

o    Promulgate the full set of health effects test
     standards and the fate and ecological effects
     test standards proposed in 1979; propose
     additional fate and ecological effects test
     standards.

o    Futher develop and begin to use generic
     follow-up systems for "significant new use
     rules" and section 8(a) information rules for
     new chemicals.

o    Publish the revised chemical substances
     inventory; maintain the integrity of the
     inventory.

o    Develop proposed regulations implementing
     generic approaches to regulation under
     section 6.

o    Begin partial operation of TSCA and inter-
     agency chemical information systems and data
     bases; continue systems development.

o    Review and act expeditiously on carcinogens,
     mutagens, and teratogens under section 4(f).
Other
     Begin reviewing existing test standards as
     required by section 4.

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                       - 26 -
     o    Begin review of overall economic and
          innovation effects of TSCA.

     o    Provide industry assistance on TSCA require-
          ments.

     o    Continue to develop public participation
          programs.

     o    Support OECD and other planned international
          harmonization programs.

TOXICS—1981

General Objectives

     o    Achieve institutional maturity.  From the
          organizational perspective:

               Have a stable organization in place with
               technically and managerially qualified
               staff.

     From the regulatory perspective:

               Fully operate all major program com-
               ponents .

               Balance emphasis on regulation of new
               and existing chemicals.

     o    Operate an integrated priority-setting system
          for choosing chemicals for testing and regu-
          lation for TSCA and other statutes, in con-
          junction with the Toxic Substances Priorities
          Committee.

     o    Operate a detailed planning and evaluation
          system for the toxic substances program;
          explore alternatives to established regu-
          latory approaches.

     o    If appropriate, develop and support pro-
          posals for major legislative changes.

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                      - 27 -
Specific Objectives

     Highest Priority
          Fully operate the premanufacture notification
          review process at an improved level;  take
          actions under sections 5(e)  and 5(f)  to pre-
          vent or control the manufacture of new chemicals,
          as required.

          Promulgate and propose regulations under section
          6 with greater emphasis on generic approaches,
          banning or limiting the use of a significantly
          greater number of existing chemicals  that pose
          unreasonable  risks to public health.

          Conduct health and environmental effects
          assessments,  monitoring,  and economic impact
          analyses to support regulations of new and
          existing chemicals.

          Continue promulgating rules under sections 4
          and 8 to obtain data to support assessment
          and regulation.
     High Priority
     o    Revise testing guidelines for premanufacture
          notification to provide more specific guidance,

     o    Complete fate and ecological effects test
          standards;  review existing test standards
          as required by section 4.

     o    Use routine, generic follow-up systems for
          "significant new use rules" and section 8 (a)
          information rules for new chemicals.

     o    Complete chemical information systems
          development; operate systems,  services, and
          data bases  at full scale.

     Other

     o    Continue actions under 4(f).

     o    Maintain industry assistance.

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                       - 28  -
     o    Continue to develop public participation
          programs.

     o    Support international harmonization programs.

     o    Continue TSCA overall economic and innovation
          impact studies.

     o    Evaluate and refine operating programs.

PESTICIDES—1979

General Objectives

     o    Continue the thrust toward institution-building.
          From the organizational perspective:

               Secure adequate space.

               Staff up to budgeted levels with qualified
               professional and support personnel, with
               special efforts on increasing the number
               of women and minorities.

               Complete the reorganization; fill senior
               line positions.

     From the regulatory perspective:

               Place more emphasis on completing major
               RPAR actions, initiating conditional
               registration, establishing the registra-
               tion standards process, and making
               registration decisions on new chemicals
               with adequate hazard data.

          -    Give less emphasis to large-scale
               operation of the registration standards
               process.

     o    Develop management systems for expediting
          decisionmaking on high volume operations,
          such as registration and registration
          standards.

     o    Develop a detailed program planning system.

     o    Clarify the regional role in FIFRA implementation.

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                      - 29 -
Specific Objectives

     Highest Priority
          Review benefits and risks of 15-20 RPAR com-
          pounds identified as posing potentially
          unreasonable adverse effects.

          Reach 17-23 final risk/benefit determinations
          on RPAR compounds.

          Implement the conditional registration program.

          Process 25-30 new registrations, 5,000-5,600
          administrative/technical amendments and 2,000-
          2,500 routine/intrastate registrations in an
          efficient,  effective manner.

          Give registration priority to new chemicals
          for which complete hazard data are submitted.

          Inititate the preparation of 42-47 generic
          standards,  including the reassessment of
          associated  tolerances.

          Evaluate the scientific basis of the system
          for establishing tolerances, including con-
          sideration  of inert ingredients in order to
          revise tolerance regulations.
     High Priority
          Provide timely and responsive guidance to the
          States relative to their FIFRA section 5(f)
          experimental use permits and review 180-240
          section 5 registrations in a median turn-
          around time of 120 days.

          Review 1,000-1,500 section 24(c)  special local
          needs registrations and conduct overview
          activities on their final actions.

          Review 170-220 section 18 emergency exemptions
          in a median turnaround time of 4  weeks,  including
          full scientific review of pertinent data.

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                       - 30 -
     o    Develop proposed guidelines for biological
          pesticides.

     o    Establish 80-120 pesticide residue tolerances
          and review 75-100 amendments for food and
          animal feed crops after review of data and
          risk/benefit analyses in a median turnaround
          time of 105 days.

     o    Accelerate the program to classify pesticides
          for restricted use.  Aim for completion in
          1980.

     o    Develop and initiate procedures to require
          early testing to fill data gaps on existing
          compounds instead of waiting until such gaps
          are identified in the development of generic
          standards.

     o    Integrate IPM into the RPAR process and into
          regulatory actions (e.g., section 18 emergency
          exemptions)  when technically appropriate.

     Other

     o    Audit 50-70 testing laboratories.

     o    Develop more precise procedures for handling
          confidential business data.

     o    Conduct training program.

     o    Improve FOI response procedures, so that all
          requests are given an initial response
          within 10 days and a final response as
          quickly as possible.

     o    Monitor for hazard prediction and significance
          of potential problems.

PESTICIDES—1980

General Objectives

     o    Continue the thrust toward institution-
          building.  From the organizational perspective:

               Build effective staff teams through
               management actions and training.

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                      - 31 -
     From the regulatory perspective:

               Emphasize completion of the remaining
               RPAR reviews,  increasing production of
               registration standards, and registration
               decisions on new pesticide chemicals.

          -    Initiate reregistration of existing
               pesticides.

     o    Operate priority-setting systems for selection
          of chemicals for the registration standard
          process and for priority registration decisions.

     o    Operate a detailed planning system; initiate
          formal evaluation;  modify program design, as
          needed, to increase quantity and quality of
          output; develop,  jointly with the R&D
          community, specific program requirements for
          high priority research.

Specific Objectives

     Highest Priority

     o    Review benefits and risks of 12-17 RPAR com-
          pounds identified as posing potentially un-
          reasonable adverse effects.

     o    Reach 15-20 final risk/benefit determinations
          on RPAR compounds.

     o    Implement the conditional registration
          program.

     o    Give registration priority to new chemicals
          for which complete hazard data are submitted.

     o    Reregister 1,000-1,400 products from available
          generic standards.

     o    Complete the generic standards initiated last
          year, and initiate the preparation of 40-50
          generic standards,  including the reassessment
          of associated tolerances.

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                       - 32  -
     High Priority
          Provide timely and responsive guidance to the
          States relative to their section 5(f)  experi-
          mental use permits, and review 180-240
          section 5 registrations in a median turn-
          around time of 120 days.

          Review 1,000-1,500 section 24(c) special local
          needs registrations and conduct overview
          activities on their final actions.

          Review 170-220 section 18 emergency exemptions
          in a median turnaround time of 4 weeks, in-
          cluding full scientific review of pertinent
          data.

          Promulgate guidelines for biological pesticides,

          Establish 80-120 pesticide residue tolerances,
          and review 75-100 amendments for food and
          animal feed crops after review of data and
          risk/benefit analyses, in a median turnaround
          time of 105 days.
     Other
          Audit 50-70 laboratories.

          Improve FOI response procedures, so that all
          requests are given an initial response within
          10 days and a final response as quickly as
          possible.

          Monitor for hazard prediction and significance
          of potential problems.
PESTICIDES--1981
General Objectives
          Achieve institutional maturity.  From the
          organizational perspective:

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                       - 33  -
          -    Have a stable organization in place,
               with technically and managerially
               qualified staff.

     From the regulatory perspective:

               Fully operate all major program com-
               ponents.

               Substantially complete RPAR.

     o    Operate an integrated priority setting system.

     o    Operate a detailed planning and evaluation
          system.

     o    Intensify strategy for replacement of older
          pesticides with unknown or hazardous effects
          with new, safer pesticides and alternative
          pest control actions.

Specific Objectives

     Highest Priority

     o    Integrate the RPAR process into the generic
          standards production process.

     o    Give registration priority to innovative,
          environmentally protective compounds.

     o    Reregister 1,000-1,400 products from available
          generic standards.

     o    Complete the generic standards intiated last
          year,  and initiate the preparation of 40-50
          generic standards, including the reassessment
          of associated tolerances, with attention to
          detail and quality.

     High Priority

     o    Provide timely and responsive guidance to
          the States relative to their section 5(f)
          experimental use permits, and review 180-240
          section 5 registrations in a median turn-
          around time of 120 days.

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                  - 34  -
     Review 1,000-1,500 section 24(c)  special
     local needs registrations, and conduct
     overview activities on their final actions.

     Review 170-220 section 18 emergency
     exemptions in a median turnaround time of
     4 weeks.

     Establish 80-120 pesticide residue tolerances,
     and review 75-100 amendments for food and
     animal feed crops after review of data
     and risk/benefit analyses, in a median turn-
     around time of 105 days.
Other
     Audit 50-70 laboratories.

     Improve FOI response procedures, so that all
     requests are given an initial response within
     10 days and a final response as quickly as
     possible.

     Monitor for hazard prediction and significance
     of potential problems.

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                    OFFICE OF ENFORCEMENT

          Overview Statement of Priorities and Goals

          Marvin B. Burning, Assistant Administrator
     This guidance builds upon the top priority activities
set out for enforcement in the EPA Policy Guidance for
FY 1979/80.  The activities described are our top enforce-
ment priorities, not a complete list of all enforcement
activities.  These priorities are stated as programmatic
priorities and as management-institutional priorities, but
the two are obviously interrelated.

PROGRAMMATIC PRIORITIES

Enforcement in Emergencies

     All EPA, State, and local enforcement personnel should
give top priority to any true emergencies involving sub-
stantial threats to public health and safety.  Containment
and removal of the dangers is, of course, the top priority.
Follow-up on penalties for violations can be undertaken in
the course of other enforcement, rather than as an emergency,
This guidance applies, of course, to emergency enforcement
response to hazardous spills.

     At this time in FY 1979, EPA personnel have as their
top priority the investigation and prevention of substantial
and imminent hazards created by existing or abandoned
chemical waste sites.  Those efforts will continue as facts
may dictate.  We expect a large number of civil actions of
this nature in FY 1980 and 1981.

Major Source Enforcement Effort

     The major source enforcement effort against violators
of the Air Act and Water Act is our next highest priority
after emergency situations.   Enforcement against these major
sources is critically important to accomplishing our environ-
mental goals.  It is directed against that small minority of
major sources which failed to meet the requirements of the
Air and Water Acts by the statutory deadlines.  It includes
many of the most serious and most recalcitrant sources of
pollution in the country.  By bringing these sources into
compliance, with penalties where appropriate, we will keep

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                         - 36 -
faith with the great majority of firms and public bodies
which met their responsibilities and will build the
confidence necessary to continue voluntary compliance
with all the environmental laws.

     In FY 1980, Regions and States will bring the major
source enforcement actions to decision by settlement,
administrative process, or court trial, including
appropriate penalties, and make or defend appeals.  By
the end of FY 1980, the major source drive should be
nearly completed, with only a few actions and appeals
still pending in trial or appellate courts.  In FY 1981,
actions and appeals still pending should be completed as
rapidly as possible.

Enforcement against Automobile and Truck Pollution

     Because of the great public health and environmental
significance of air pollution from automobiles and trucks,
especially in urban areas, enforcement against mobile
sources of pollution will continue to be a top enforcement
priority in FY 80/81.

     EPA enforcement will continue to ensure that new
vehicles meet emission standards.  We will increase our
emphasis on maintaining the effectiveness of emission
control systems throughout the period of their use.  To
achieve this, EPA's main emphasis will be on inspection
and maintenance systems in the major nonattainment areas
for auto-related pollutants, supplemented with Head-
quarters audits and I/M programs.

     o   To ensure that new vehicles meet standards, EPA
         enforcement will continue our assembly line
         audits, recall and warranty efforts.

     o   To ensure that cars in use meet standards and to
         support introduction of inspection and maintenance
         systems where needed, EPA will continue to focus
         investigations and enforcement actions (a) on
         national or regional fleets, chains, dealership or
         repair facilities, or "pattern" violations and (b)
         in major metropolitan areas where auto pollution
         is high and I&M will be introduced.  EPA will
         encourage State and local anti-fuel switching and
         anti-tampering efforts.

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                          -  37  -
     We will use private, State, or local contracts to
carry out inspections to ensure the availability and purity
of unleaded gasoline, and the installation and operation of
vapor recovery systems on fuel delivery trucks and at
gasoline outlets.

     EPA and the States, in cooperation with other agencies,
will implement any programs authorized to control the
leaded-unleaded gas price differential and other authorized
environmental/energy programs.

Consolidated and Simplified Permitting

     EPA is consolidating its permit programs, both to
simplify administrative steps and to get all important
environmental problems addressed in a single process.  By
October 1, 1979, companies will be able to submit just
one application for all water, solid and hazardous waste
permits, go through one review, and be issued one permit.
We expect application forms for air quality permits to be
consolidated in late FY 1980  (or early FY 1981).  NPDES
second round permits under the Clean Water Act will be
issued throughout FY 1980/81.  We will begin to issue
hazardous waste permits in late FY 1980, accelerating in
FY 1981.  We will also start  issuing Underground Injection
permits in FY 1981.

     In all permitting activities, we will give first
priority to large or major sources with serious adverse
health effects, including those with significant toxic
discharges.

Full Federal Compliance

     President Carter has directed all Federal facilities
to come quickly into compliance with Federal, State, and
local environmental requirements.

     By the end of 1980, we expect all, or almost all,
Federal facilities both major and minor sources will be
in compliance.  Regions should see to it that all Federal
facilities do indeed come into compliance as soon as
possible.   EPA will ensure that Federal agencies request
necessary funds for compliance by reviewing the agencies
plans included in the annual A-106 report.

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                          - 38 -
     EPA is encouraging the States to assume these respon-
sibilities for Federal facilities.  The States should
find the managers of Federal facilities cooperative.  EPA
will assist the States in getting any disputes resolved.

Stationary Sources

     Completing the Major Source Enforcement Effort contin-
ues to be of highest priority in FY 1980/81, including the
monitoring of compliance orders to ensure that sources comply
with the terms of the orders.  We also want to ensure that
major sources comply with new requirements placed on them
by SIP revisions and by the ambient standards for lead, and
to enforce new source performance standards and national
emission standards for hazardous air pollutants.

     As the Major Source Enforcement Effort is completed in
FY 1979/80, EPA will design and implement an improved program
of compliance monitoring and enforcement to ensure continuous
compliance.

     During FY 1979, regulations will be promulgated for
administrative assessment of noncompliance penalties under
Section 120 of the Clean Air Act.  This program should be
fully implemented during the second half of FY 1979 and
throughout FY 1980/81.  Prompt implementation of these
penalties should assist in obtaining and maintaining
compliance with the Air Act.

Water Enforcement

     Completion of the Major Source Enforcement Effort,
including actions against publicly owned treatment works
(POTW's), continues to be of highest priority in FY 1980/81.
As this effort is completed, EPA will design and implement
an improved program of compliance monitoring and enforcement
to ensure continuous compliance.

     Beginning in FY 1979 and growing in importance in
FY 1980/81 will be advice and assistance to delegated States
so that State pretreatment programs can be established and
the conditions of those programs enforced.  During FY 1981
the activities of assisting and advising States and POTW's,
modifying permits to incorporate pretreatment requirements,
approving POTW treatment programs, notifying affected
indirect dischargers, and determining treatment levels
should be at their peak level and of prime importance if we
are to achieve compliance by all affected POTW's and indirect
dischargers by FY 1983 or FY 1984.  NPDES permits will be
issued as part of the consolidated permits program.

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                          -  39  -
Strategies for New Programs (TSCA, RCRA, SDWA, FIFRA)

     In recent years, Congress has provided new programs
and has amended existing statutes to respond to the threats
of chemical poisons, hazardous wastes, and pesticides, and
to protect drinking water supplies.  We must carefully
devise or revise enforcement strategies under the additional
provisions of the Toxic Substances Control Act (TSCA), the
amended provisions of the Federal Insecticide, Fungicide,
and Rodenticide Act (FIFRA), the hazardous waste provisions
of the Resource Conservation and Recovery Act (RCRA), and
the Safe Drinking Water Act (SDWA).

     Under RCRA, our priority enforcement activities in
FY 1980/81, in addition to responding to emergencies,
include monitoring and enforcing the notification program
(Section 3010); reviewing proposed State programs for
enforceability and adequacy; issuing permits, monitoring
permitted sites, and ensuring that Compliance Schedules
are met; and monitoring and enforcing the manifest
systems.

     Under TSCA, our compliance monitoring and enforcement
will initially focus on PCBs, chlorofluorocarbons, inventory
requirements and to premanufacturing notice requirements.
We will continue our special investigative efforts regarding
the accuracy and truthfulness of laboratory test data in
the toxics and pesticides programs.

     Under FIFRA, during FY 1980/81 EPA will attempt to
develop cooperative enforcement grant programs with the
remaining seven States (for a total of 50) and will
continue to enforce regulations on pesticide use until
States assume this responsibility.

     Under SDWA, EPA will respond to emergency situations
threatening public health and will concentrate on enforce-
ment of primary drinking water standards, particularly in
non-primary States.

Noise Control

     The noise enforcement program will continue to ensure
compliance with standards and requirements for products and
procedural labeling as its top priority.  Although urban
noise can often be controlled through State and local efforts,
it continues to be a Federal responsibility to ensure that
products meet the standards established under the Noise Act.
EPA Headquarters will carry out this function.

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                          - 40  -
MANAGEMENT AND INSTITUTIONAL PRIORITIES

     In addition to the preceding programmatic priorities,
we have a number of management and institutional improve-
ments as top priorities.  These improvements have to some
degree already been described in the programmatic priorities
and they obviously interrelate with them.

     o  Consolidated Permitting — EPA will consolidate
        and simplify its permitting activities, mostly
        during FY 1979 and totally by the end of FY 1980.
        It will assist and encourage States to do so as
        well.

     o  Industry Enforcement Strategies -- During FY 1979
        and FY 1980 EPA will develop and implement industry
        enforcement strategies for selected industries.

     o  Continuous Compliance — We will develop programs
        for ensuring continuous compliance by regulated
        sources, including compliance monitoring (and
        information systems for recording and tracking
        compliance), penalties to remove the economic
        benefit of non-compliance and remote sensing
        techniques.

     o  Improved Oversight of State Enforcement -- During
        FY 1979 and thereafter, Headquarters and Regional
        personnel will begin to apply standards of perfor-
        mance to State enforcement activities under all
        Federal grants or contracts for enforcement.

     o  Management and Management Information Systems --
        During FY 1979 and FY 1980 as needed, we will
        review our management, reporting, and information
        systems (including ADP systems).  Our emphasis will
        be on improved accuracy, usefulness, simplicity,
        and compatability.

     o  Improved Cooperation with Other Agencies --
        During FY 1979, 1980, and 1981, we will improve
        our cooperation with other agencies, such as the
        Department of Justice, the other members of the
        IRLG (OSHA, FDA, and CPSC), the Securities Exchange
        Commission (SEC), and the Departments of Energy and
        Interior.

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                  - 41 -
Innovative Methods — Throughout FY 1979, 1980,
and 1981 the Office of Enforcement will explore
innovations such as widened use of penalties to
remove economic benefits of delay, environmental
auditing, and contracts or grants with citizen
groups.

Investigating Criminal Violations — During
FY 1980/81 EPA enforcement will improve its
ability to investigate criminal violations of
environmental laws by recruiting and training
EPA investigative personnel.

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             OFFICE OF RESEARCH AND DEVELOPMENT

        Overview Statement of Priorities and Goals

         Stephen J. Gage, Assistant Administrator
     During the next two years, three major objectives will
be driving the Environmental Protection Agency's research
and development program: (1) continuing the integration of
the Office of Research and Development into the mainstream
of the Agency's activities, (2) enhancing the Office's
capability to provide the scientific and technological data
the Agency will use for future regulatory and enforcement
actions, and (3) improving that data through scientific peer
review of research procedures and results, quality control
of risk assessments, and quality assurance of monitoring
data.

     Much of the groundwork for achieving these objectives
has been laid during the past year.  The Research Committees
have been quite successful in planning research in five
critical areas jointly with the Program Offices.  A signifi-
cant Public Health Research Initiative ($37 million, 46
positions) was developed and successfully defended with
OMB through the cross-agency zero-based budgeting for toxics.
A new Office of Health and Environmental Assessment, building
on the successful experiences in scientific assessments by
the Carcinogen Assessment Group and the Environmental
Criteria and Assessment Office, has been proposed.  Other
developments have also built a good foundation for future
action.

INTEGRATING ORD INTO THE AGENCY'S MAINSTREAM

     Joint planning of the Agency's research and development
activities through the five pilot Research Committees already
provides a very valuable linkage between the regulatory
program offices responsible for developing regulations and
the ORD scientists and engineers supporting the regulatory
efforts.  During early 1979, we will establish seven new
Research Committees to cover the joint planning of sub-
stantially all of the research in support of regulation and
enforcement.  Each of the 12 committees will be specifically
oriented to the users of the research information, typically
Program Office Deputy Assistant Administrators or, in some
instances, Division Directors (see Attachment A).

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                         - 43 -
     The new Research Committees will develop multi-year
research strategies oriented toward supporting regulatory
needs; identify research outputs required within the next
budget year (now beginning the FY 1981 cycle); seek the
required resources through the Agency's ZBB process; and
monitor and evaluate ongoing and completed research.  We
must make special efforts during this formative period
to bring more fully the Agency's enforcement and Regional
programs into the joint planning process.  In the interest
of cost-effectiveness, it will be necessary for the Regional
Offices to coordinate their participation and share respon-
sibility for representing Regional interests in the Research
Committee; ORD will support the Regional Offices in this
effort.

     We will continue to experiment cautiously with matrix
management approaches as a means of improving the coordi-
nation and delivery of high-visibility, short-term research
outputs.  Matrix management of the diesel emissions program
will continue, and we will consider establishing a limited
number of similar programs, such as in Acid Precipitation.

     Closely related to the evolution of the joint research
plannng approach is the long-overdue simplification of
ORD'S planning and reporting systems.  We must take this
step to bring ORD's planning and management approaches into
synchronization with (1) the five-year plan developed in the
preparation of the Agency's Research Outlook, (2) the multi-
year plans developed by the Research Committees, and (3) the
Agency's ZBB review and decisions.  We must also eliminate
the redundant paperwork that absorbs too much ORD staff time,

     In order to improve accountability for the research
and development efforts, we must bring into operation a
reliable tracking system for the critical outputs required
by the Program Offices as identified by the Research
Committees.   As a corollary, we must also reduce to a
manageable number the outputs to be tracked.  While we must
have adequate information to monitor progress of the key
outputs, we must vigorously resist spending too much time
and effort reporting preliminary and fragmented data.  Good
research management means monitoring the right indicators,
not all of the possible indicators, of orderly progress
toward objectives.   Too much reporting together with
overspecification of research investments will counterpro-
ductively tie the hands of the research managers and stifle
innovative research.  Management flexibility must, of
course, be coupled  with accountability.

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                         - 44 -
     With the increased pressure for higher quality manage-
ment of several key research areas, we will be realigning
the laboratory reporting relationships to consolidate
functional or discipline groupings.  These changes, which
should improve morale and productivity, will allow us to
improve the implementation of the Agency's research efforts.
Specifically, the realignment will establish an office for
health effects research management; an office to integrate
environmental transport, fate, and effects research; and an
office to integrate control technology and hazardous waste
research.

BUILDING A RESEARCH FOUNDATION FOR AN IMPROVED DATA BASE

     We made important progress in the past year in starting
the long-term process of building a foundation for a signifi-
cantly improved scientific and technological data base for
the future regulatory and enforcement actions of the Agency.
Planning and budgeting the Public Health Research Initiative
was a critical first step, but it was only a beginning.

     We must now commit ourselves to the detailed planning
and implementation of the Initiative.  Since the Initiative
represents the first significant expansion of the Agency's
basic environmental health sciences, we must wisely dedicate
it to achieving a solid understanding of human health effects
caused by both direct and indirect environmental exposures.
Because we will be drawing heavily on scientific talent in
the private sector to assist us in this effort, we must
begin immediately to seek the best scientific advice
available to help us in this planning effort.

     The second critical step, a broad environmental
research initiative, must be taken immediately.  Because
of the heightened awareness in the Administration of
EPA's requirements for the best scientific and techno-
logical data that can be developed for the Agency's
comprehensive environmental regulations, we now have an
excellent opportunity to seek a government-wide review of
environmental research.  This review will focus on how
existing and future Federal resources can support broader
based, longer term environmental research to build an
improved data base.  We must assume the leadership in
developing the conceptual framework for such efforts,
bringing to bear on the program design the best scientific
advice available.  We must look to the Agency's Science
Advisory Board, the President's Office of Science and

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                           - 45 -
Technology Policy,  and  the National  Academy  of  Sciences  as
well  as  numerous  individual  scientists  in  this  comprehensive
planning  and  review effort.  We  are  now in the  process of
developing a  select set of initiatives  for 1981  and  beyond,
focusing  on protecting  humans  from environmentally mitigated
pollutants; identifying and  protecting  critical  components
of  ecosystems from  injury; and addressing  the more global
problems  of protecting  our life  support systems.

      In  parallel  with these  activities,  we must  carefully
review the longer-term  research  already underway in  ORD  to
assure ourselves  that we are directing  our attentions to
the most  important  future problems and  are using the best
scientific talent we can attract to  work on  these problems.
We must  determine if we are  obtaining high quality,  well-
documented results  from our  research grants  --  the primary
mechanism we  have for supporting innovative  ideas.   We must
make  the  scientific community more widely aware  of our
research  grants,  encourage much  greater competition  for
those grants,  and ensure that they are  awarded  strictly  on
the basis of  merit  through enhanced  peer review.  We should
also  see  if alternative approaches for  handling  these longer
term  grants can relieve the  burdensome  monitoring loads
placed on the  individual laboratory  researchers.

      An  invigorated, competitive grant  program  for longer-
term  research  in  each research area, coupled with an expanded
Anticipatory  Research Program, will  provide  the  Agency with
an  important  new  base of exploratory research.   It is
essential that, with the significant infusion of new funding
associated with the Public Health Research Initiative, we do
not waste this opportunity to build  a firmer foundation  with
the help  of the best scientific  talent  available  in  the
country.

IMPROVING THE QUALITY OF DATA USED IN DECISION MAKING

     Scientific and technological data  come  in many  forms
and in varying quality.  The credibility and integrity of
all data  used  in Agency decisions is a  prerequisite  for
any analyses.   The  evaluation and synthesis of the data  is
an essential  step in informing the many  far-reaching
regulatory decisions.  We have made significant  progress
during the last year in providing carcinogenic risk
assessments for the Program Offices and  in improving the
capability of ORD to prepare Air and Water Quality criteria
documents by establishing the new Environmental  Criteria and
Assessment Offices  in Research Triangle  Park and Cincinnati.

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                         - 46 -
     We have not yet, however, undertaken the special
responsibility assigned by the Administrator to provide
quality control of the Agency's risk assessments.  With
approval of ORD's new Office of Health and Environmental
Assessment (OHEA), we must now move ahead, first to quickly
develop guidelines for the several types of risk assessments
required for the Agency's regulation development, and then
to exercise oversight to ensure that the asssessments
prepared by the Program Offices conform reasonably to the
guidelines.  We must also proceed to staff OHEA with the
best qualified people we can attract from the scientific
community, significantly upgrading in this process ORD's
capability to provide consultation to the Program Offices
and, upon request, assessments of specific chemicals.

     Although we in ORD have discussed the role of peer
review extensively during the past year, we must now
act in the coming year to build into all of the Agency's
scientific and technological efforts appropriate review
mechanisms.  We must begin with enhanced peer review for
individual research projects.  The ORD senior laboratory
management must convey to the professional staff strong
support for and assistance in periodic external peer
review of individual projects.  Whenever feasible, the
results of individual projects should be subjected to
rigorous scientific or technological scruntiny through
publication in referred journals.  We should also see
that the results of our grants and contracts are published
in peer-reviewed journals, slowing the growth of that body
of EPA-published "gray literature" which now constitutes
the only publication channel for too much of our work.
Publication of research results in the peer-reviewed
literature must become an important criterion for advance-
ment in all of our laboratories.

     In addition to peer review of individual research
efforts, we must systematically review our research programs,
While such reviews may begin at the laboratory level, it is
usually more appropriate to conduct them at the level of the
Deputy Assistant Administrators or even of the Assistant
Administrator.  Since the Research Committees will be
providing the primary focus for the bulk of our research
activities, it is logical that we direct our attention
increasingly to programmatic reviews along the lines of the
committees.  We should also be mindful of other mutually
supporting programmatic areas which may provide results for
several committees, such as biological screening tests,
analytical methodologies, etc.

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                         - 47 -
     Finally, we have been expanding in the past year our
efforts to provide support to Agency laboratories for
quality assurance of environmental monitoring data.  We must
now assume the lead for improving the quality assurance of
all of the environmental monitoring data used in the Agency's
decisions.  We must first make sure our house is in order
by requiring adequate quality assurance practices for all
environmental quality monitoring, sampling, and analytical
activities conducted in the ORD laboratories or by our
contractors or grantees.  This policy should become effective
immediately.  We must also require, through the Blue Ribbon
Monitoring Task Force, similar quality assurance practices
for all of the Agency's laboratories, contractors, and
grantees.   Lastly, we must work closely with the Regional
Offices to bring quality assurance practices into uniform
use in all of the State and local laboratories, which
provide the bulk of the environmental quality data available
to the Agency.

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            OFFICE OF PLANNING AND MANAGEMENT

       Overview Statement of Priorities and Goals

     William Drayton, Jr.,  Assistant Administrator
     The Agency's central management objective remains that
of creating a national environmental program that derives
strength and initiative from decentralization and purposive-
ness and environmental coherence from effective integration.
Toward these and other ends we must strengthen our analytic
and common services in a number of areas.  This guidance
deals first with that central objective, then with other
objectives connected with our analytic and common services.

AN INTEGRATED,
DECENTRALIZED PROGRAM

     From its inception EPA rejected the top-down, over-
centralized, untrusting Louis XIV/Herbert Hoover form of
management common to most government organizations, a form
that has failed.  Instead we are building on the philosophy
of the Federalist Papers:  decentralize and democratize
within a realistic set of incentives designed to ensure
organizationally responsible results.

     Not only are we doing what makes sense for EPA, but
we're setting the pace for others.  That's why others in
the government have quickly recognized so many of our
reforms as models.

     No matter how satisfying being out front is, however,
it doesn't make ground breaking any easier.  Although
we've come a long way, we still have several years of
intense work ahead of us:

     (1)  We should continue to strengthen our regulation
          development and zero-base budgeting.  They
          provide the structure that makes possible broad
          involvement in the Agency's two principal cross-
          cutting areas for decision making:  respectively,
          (a) regulation and policy development and (b)
          priority setting, management, and resource allo-
          cation.  Regulation development is mature, and
          ZBB is over the worst of its start-up pains.
          Both need continuing adjustment and strong support,

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                    - 49
     The Regions should contribute more heavily to
     regulation development and review, especially
     regarding operational and resource issues.

     Last year ZBB focused heavily on process;
     henceforth it should focus more on substantive
     analysis: getting workload analysis fully
     implemented, finding efficiencies, developing
     new program initiatives, and re-examining older
     programs carefully.  We must also continue to
     help Office of Management and Budget develop
     cross-agency ZBB.

(2)   We need both stronger State programs and
     stronger State/EPA collaboration.  State and
     local officials now staff 85 percent of the
     national environmental regulatory effort, and
     we are seeking to delegate even more.   We must
     strengthen our joint environmental management
     effort, especially in the following areas:

        We have more than doubled the Federal grant
        support to State and local units since 1977
        (including the addition of the Clean Water
        Act, Section 205(g) funds).

        Our new State/EPA agreements should become
        more than contracts:  they should induce
        joint planning and they should press
        decision making up to the senior policy
        officials on both sides.  This should make
        it easier to refocus programs as our needs
        change and to innovate and integrate.  By
        1981 the agreements should cover all our
        programs.

     -  We must win passage for and  then implement
        our Integrated Environmental Assistance
        legislation to give the States the  flexibility
        and added resources for such refocusing,
        innovation,  and integration.

        We should encourage personnel interchange
        and training,  e.g., through  group IPA's.

(3)   Our Regional Administrators must strengthen
     their management/analytic capacity so  that
     they can better manage their Regions,  lead
     and evaluate the  State and local agencies in

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                          -  50  -
          their areas more effectively, and participate
          equally in Agency-wide policy and management
          decision making.  Unless the Regions' ability
          to think and manage is strong, both Regional
          decentralization and EPA's linkage with State
          and local government are at risk.  Headquarters
          analytic units must help the Regions develop
          this capacity, and both sides should build
          strong, continuing ties.

     (4)   Our managers should adopt Agency-wide career
          paths.  True independence, based ultimately
          on the real ability to move if frustrated,
          will flow from the professional breadth,
          self-confidence, and reputation such mobility
          will foster.  It will also give the Agency a
          management team with Agency-wide environmental
          perspective and loyalty, a critical step in our
          successful integration.

     (5)   The Agency's grantees, programs, and managers
          should be held accountable for their perfor-
          mance.  We do not do this core management task
          at all well now.  Our new personnel performance
          evaluation and reward program -- probably our
          most demanding management reform for the next
          12 to 18 months — will make major difference.
          Our review of monitoring and the new Regional
          Profiles may help.  OUr fundamental scrutiny
          and rationalization of our many computer-based
          information systems will help.  A systematic
          regiment of evaluations beginning at the local
          and State levels and working up is critical.
          Such evaluations should be backed by a informed
          reporting system and tied to the promises made
          in ZBB.  Designing and implementing a practical,
          integrated, limited-cost way of holding the
          States' and our own decentralized managers
          accountable is a difficult, missing part of our
          management construction.

RESPONSIVE,
EFFICIENT SERVICES

     We will continue implementing a number of fundamental
improvements in the Agency's services in 1980-81:

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                          - 51  -
     (1)  We must begin to manage EPA's personnel.  The
          new Civil Service Reform Act only makes this
          possible:  we will have to make it happen by
          changing the way each of our managers does his
          or her most important job.

     (2)  We will begin pilot tests of contracting reform
          in 1979 to improve responsiveness and cut
          processing time.

     (3)  The Agency will commit to new computers after
          a thorough management review of our data needs
          and of our existing and planned programs.

A SMART AGENCY

     Our analytic services -- directly supporting our top
managers, helping prepare regulations, checking budget
pricing, providing legal or economic analyses, negotiating
with other agencies, and the like -- must keep up with a
growing workload and maintain a superior level of pro-
fessional quality.  Compromise here is foolish.

     We must continue our leadership in regulatory reform.
Finding more effective, equitable, and economical ways of
doing our work is one of the most useful, highly leveraged
opportunities open to us.  (Further, as America's largest
regulatory agency, we have a responsibility to lead.  Our
two most important reforms are controlled trading and tools
for regulatory decision making, including benefits analysis,

     Once we set a standard for controlled trading of
clean-up requirements, we can allow those we regulate to
find more efficient ways of achieving the same (o : better)
environmental result.  These alternatives must also be as
administrable and enforceable as our initial approach.
Offsets (in both non-attainment and PSD areas), the bubble,
banking, brokerage, and perhaps marketable rights should
gradually all fit together into an increasingly important
complement to traditional "command and control" regulation.
If we can make this approach work on a wide scale, we will
provide our first positive incentive for control technology
innovation and significantly reduce clean-up costs (and
therefore resistance to clean-up).

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                         - 52 -
     To strengthen both performance and accountability
we should strengthen our program evaluation capacity at
all levels.  We should also play a stronger leadership
role in Administration debates on both economic and energy
policies; the best defense is a more sensible alternative.

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AIR STATE GUIDANCE

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                        AIR

MEDIA OVERVIEW

Planning Assumptions

     New Source Review (NSR) — In FY 80, most States
     will have EPA approved State Implementation Plans
     for Prevention of Significant Deterioration (PSD).
     During FY 80, Regional Offices will curtail their
     review of PSD permit applications with the princi-
     pal Regional Office role in FY 81 being one of
     maintaining an overview of State and Local pro-
     grams with little or no direct EPA permit issuance.
     EPA will make maximum utilization of contractor
     support in conducting required permit review acti-
     vities in 1980 until State plans are approved and
     will utilize Section 105 grant funds to secure such
     assistance.

     Headquarters and Regional Offices will provide
     specific expertise and interpretation of Agency
     policy and guidance (ex. modelling) to States in
     implementing the PSD program.  In addition, the
     Regional overview function in FY 81 will give par-
     ticular attention to assuring consistency between
     adjoining States.  The Regional Offices with
     assistance from Headquarters will be involved
     in mediating/arbitrating issues relative to inter-
     state impact on growth plans and use of the increment
     particularly in high growth areas.

     The promulgation of regulations expanding PSD
     requirements to include carbon monoxide, nitrogen
     dioxide, and volatile organic compound emissions
     will be completed by Office of Air, Noise, and
     Radiation (OANR) by the end of FY 80.  OANR will
     support the States efforts to insure consistent
     policy in the review of new source permits and
     control technology determinations by maintaining
     a clearinghouse for these decisions.

     During FY 80/81, the number of New Source Performance
     Standard promulgations by OANR will be greatly
     increased.  These new emission limits will provide  a
     general basis for determining required case-by-case
     Best Available Control Technology  (BACT) by either
     the State or Regional Office for sources subject
     to PSD.

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                   - 56 -

In those States not delegated New Source Performance
Standards (NSPS), National Emission Standard for
Hazardous Air Pollutants (NESHAPS)  or having an
approved SIP for PSD, Regional Offices will con-
tinue to verify the compliance and initiate enforce-
ment action against new sources including Federal
facilities subject to NSR requirements which are in
violation of procedural, permit, or emission require-
ments.

The Office of Air, Noise and Radiation and the
Office of Enforcement in FY 80 will develop procedures
for the overview and audit of State new source review
activities including engineering determinations,
modelling, public notification, surveillance, and
enforcement to assure new source compliance with both
procedural and emission requirements.  This review
will also include adequacy of procedures for tracking
increment utilization,  growth and impact on air
quality including Reasonable Further Progress in
attaining standards.

The consolidation of EPA new source permitting
programs will continue in 1980.  Inclusion of the
air permits into the consolidated program where
direct Regional Office permitting activities are
still necessary will occur in FY 81.

Carbon Monoxide and Ozone (C0/0?) — During FY 80,
the review and possible revision of the National
Ambient Air Quality Standards  (NAAQS) for CO will
be completed.  It is expected that if there is a
revision to the CO standard, it will not signicantly
change the number of major urban nonattainment areas
where the development and implementation of trans-
portation measures (including automobile inspection/
maintenance  (I/M))  by the States would be necessary to
attain the standard by 1987.

In FY 80 followup actions to remedy deficiencies in
the 1978 SIP submissions will be completed by most
States and reviewed by Regional Offices.  Also, the
schedules contained in the 1979 SIP for developing
mandatory I/M programs, conducting a transportation
control planning process, and enacting additional
volatile organic compound (VOC) regulations consis-
tent with the Control Technology Guideline  (CTG)
documents will be met by most States in both FY 80/81.
Regional Offices will track the progress of States
in meeting these schedules with major guidance being

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                    -  57  -

provided in the development of the transportation
planning process in urban areas greater than 1,000,000
population, and the development of mandatory I/M
programs.  The appropriation by Congress of any
additional Section 175 monies for support of the
transportation planning process is not expected in
FY 80 or 81.

Development of a regional ozone model will be completed
by the Office of Research and Development (ORD)  in
FY 81 with support from OANR.  The model will serve
as a major tool in developing the appropriate strat-
egies by States for inclusion in the 1982 SIP sub-
mission for those major urban nonattainment areas
having an extension that are experiencing extensive
air quality violations and which will require imple-
mentation of complex and costly control measures to
attain by 1987.  Use of the model will require in
FY 1980 the development by the States of extensive
data bases within these areas (i.e., emissions,  air
quality, meteorology).  The establishment of National
Air Monitoring Stations  (NAMS) for ozone and the
quality assurance of the data from these stations
should be completed by the States to provide the
ambient data necessary for model application.

Verification of compliance and initiation of necessary
enforcement action by the States against existing
stationary sources subject to the new VOC emission
limits included in the 1979 SIP and the additional
regulations required to be enacted by January 1980
will commence.  Regional Offices will work with
States to develop a strategy for these sources and
oversee State efforts to verify and secure compliance.
The Regions will initiate necessary enforcement action
where States fail or cannot act or request EPA
assistance.  The 1979 SIP is expected to increase
the number of major VOC sources subject to the SIP
by 3,000 with an estimated 6,000-8,000 additional
sources anticipated by the end of FY 81.

In FY 80, enforcement by EPA of anti-tampering and
fuel switching requirements in areas requiring man-
datory I/M programs will be initiated by Mobile
Source Enforcement Division (MSED).   These actions
will assist in reducing the costs to the public of
passing a mandatory vehicle inspection.  States will
be encouraged to enforce existing State anti-tampering
or fuel switching regulations or to develop regu-
lations if none exist.

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                    -  58  -

In FY 80, both EPA Regional Offices and the States
will establish more effective measures for informing
the public and securing public participation in the
strategy development and implementation process
particularly as it relates to the transportation
planning process and mandatory I/M programs.

Procedures will be established and implemented by
OANR to insure consistent application of sanctions
nationwide as required by Sections 176 and 316 of
the Clean Air Act where States fail to enact or
carry out necessary controls for the attainment of
NAAQS.

The development and promulgation of additional mobile
source emission standards required by the Clean Air
Act will be completed by OANR in FY 80.

Total Suspended Particulates and Sulfur Oxides
(TSP and S0y) — In FY 80,  the required review of
NAAQS for TSP and S02 will be completed by OANR with
necessary revisions to be promulgated by EPA in FY 81.
The review of the TSP standard may result in the
promulgation of new primary ambient standard for
inhalable particulates (IP)  and subsequent secondary
ambient standards for sulfates and fine particulates
during FY 81.  The modification and promulgation of
additional TSP/S02 standards will require major State
efforts to revise the SIP in FY 81 with completion
required in FY 82.  In FY 80, efforts to refine the
definition of the nature and extent of the TSP prob-
lem  in urban nonattainment areas where re-entrained
fugitive dust is a major element will be conducted
by both ORD and the States in anticipation of the
new standards.

By the beginning of FY 80,  all State or EPA-initiated
civil/criminal actions associated with the Major Source
Enforcement Effort (predominantly TPS and S02 sources)
will have been undertaken with decisions either by
settlement, administrative process, or trial completed
by the end of FY 80 and disposition of appeals com-
pleted as early as possible in FY 81.  The compliance
of Federal facilities with existing SIP requirements
will also be completed by EPA or the States by the
end of FY 80.  States in FY 80 will assume a larger
role in securing and maintaining the compliance of
Federal facilities.

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                        - 59 -


     Delegation to the States of the non-compliance
     penalty program  (Section 120) initiated by EPA in
     FY 79 will be undertaken in FY 80 and accelerated
     in FY 81.  It is estimated that the program will be
     delegated to 15 percent of the States in FY 80 and
     to 30 percent in FY 81.

     In those cases where the States have not accepted
     delegation for the non-compliance penalty program by
     FY 81, Section 105 grant funds will be utilized by
     EPA for implementing the program.  These funds will
     provide contractor assistance for implementing the
     program to minimize impact on available EPA resources
     in assessing penalties.

     In FY 80/81 new programs devoted to ensuring that
     major TSP/S02 sources that have obtained or are
     presently in compliance remain in compliance will be
     initiated both by EPA and the States.  OE will
     complete development of an improved program in FY 80
     in consultation with the States and then secure
     State plans for implementing the improved program
     with the States focusing first on a limited number of
     selected troublesome sources.

     Toxics --  During  FY  1980/81  emphasis  on  control  of
     hazardous  pollutants will  increase  as result of  the
     Air Carcinogen  Policy.   Promulgation  of  NESHAP
     standards  will  be accelerated.   NESEAPS  for benzene
     and arsenic  are currently  planned for FY 1Q80/R1.
Goals/Priorities/Obj ectives

     The goal of the program is to protect public health
     and welfare through a combination of national efforts
     which provide for consistent and timely progress in
     rectifying existing air pollution problems and avoiding
     new ones.

     With respect to priorities, States were required to
     submit revised Implementation Plans in January 1979
     outlining their strategies for attaining ambient air
     quality standards in designated nonattainment areas.
     High priority will be given to correcting deficiencies
     in these SIPS and to providing adequate guidance to
     States in developing and implementing additional pro-
     grams required for the attainment of standards.  High
     priority will also be given to review of ambient air
     quality standards and development of supporting
     analyses for revisions to the standards.

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                   - 60 -
Emphasis will be given to a program obtaining State
acceptance of full responsibility of all New Source
Review activities, providing adequate guidance for
development of PSD SIPs and maintaining an effective
national clearinghouse for NSR decisions.  The
clearinghouse will be used by both Regions/States to
assure consistent policy in conducting NSR.

The NSPS program will receive increased funding in
FY 80, thereby allowing work to begin on all NSPS
on schedules consistent with the statutory deadline.
When an Air Carcinogen Policy has been established,
development of NESHAPS consistent with that policy
will become a priority item.

In FY 80 priority will be given to establishment of
technically sound NAMS/SLAMS and implementation of
quality assurance measures to establish increased
credibility to air data.

Development of regulations for PSD Set II and
visibility will receive priority in FY 80.

The highest priority in the mobile source program is
the support of I/M implementation by States and the
development of requisite technical information on
evolving aspects of I/M programs, such as its appli-
cability to newer technology control systems.  Also
of importance will be the completion of the standard-
setting activities mandated by the Clean Air Act, and
the implementation of controls necessary to assure
public health protection.

During FY 1980, many standard-setting activities will
result in final rulemaking.  It is expected that
during FY 1981 the standard-setting program will shift
its priority focus to the control of hazardous pollu-
tants, bioactive materials, and emissions under non-
FTP conditions.

Enforcement priorities include:

     o    Enforcement actions in emergency situations
          involving substantial threats to public
          health and safety.

     o    Major Source Enforcement Effort against
          violators of the Clean Air Act.

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                     -  61 -

     o    Enforcement against automibile/truck pollution.

             anti-tampering
          -  fuel switching
             inspection and maintenance program

     o    Fuel compliance by Federal Facilities.

     o    Review for enforceability in FY 1980/81 with
          respect to any continuing SIP revision work

     o    Section 120 noncompliance penalities

     o    Major source compliance with SIP revisions, and
          enforcement of MSPS and NESHAPS

     o    Improved program of compliance monitoring and
          enforcement to assure continuous compliance

Regional priorities are set forth in the Regional Guidance
section.

The objectives of the Air Program Regional Activities in
1980 and 1981 are to:

     o    Assure attainment of standards in accord with
          the approved SIP schedules

     o    Assure consistent application of the law in all
          States

     o    Increase the State responsibilities in new source
          review

     o    Initiate enforcement actions in all appropriate
          emergency situations

     o    Complete all civil/criminal action associated
          with the Major Source Enforcement Effort

     o    Implement effective inspection and maintenance,
          anti-tampering,  and fuel switching program

     o    Initiate civil/criminal actions and impose
          noncompliance penalties against all appropriate
          major sources in violation of SIP standards,
          NSPS, and NESHAPS

     o    Perform annual evaluations/audits of State
          enforcement programs

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               - 62 -

o    Improve and have at least quarterly updates of
     CDS

o    Assure full compliance by Federal Facilities

o    Followup on all enforcement actions and
     compliance schedules

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                          -  63  -
STATE GUIDANCE

Major Program Priorities for State/Local Programs

     The Administrator's Policy Guidance, Policy Overviews
prepared by the Assistant Administrators for the Office
of Air, Noise and Radiation and the Office of Enforcement,
and discussions with the Office of Research and Development
have identified major national priorities for State and
Local programs for FY 80:

     Effectively Enforce Existing Emission Limitations

          0  Respond to Emergency Situations involving
             major threats to Public Health

          0  Complete Major Source Enforcement Effort
             Against Existing Sources

          0  Enforce Anti-Tampering and Fuel Switching
             Provisions in Areas Requiring I/M Programs

          0  Develop and Implement Programs for Assessing
             Non-Compliance Penalties consistent with
             Section 120 of the Act

          0  Accept Delegation for Enforcement of New
             Source Performance Standards and National
             Emission Standards for Hazardous Air Pollutants

          0  Assure Compliance of Major Sources with New
             SIP Requirements

          0  Develop and Implement Continuous Compliance
             Program Plan Focusing on Selected Troublesome
             Sources

     Complete SIP 's and Assume Responsibility for Managing
     Air Quality

          0  Modify and Correct Conditionally Approved
             or Disapproved Sanctionable SIPs

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                   - 64  -


o    Comply with 1979 SIP Schedule Schedules (and com-
     mitments)  to Develop Additional Controls to
     Attain Standards, including Inspection/Main-
     tenance, Transportation Measures,  Volatile
     Organic Compounds Regulation, and Studies for
     Urban Fugitive Dust.

o    Develop Approval SIP for the Prevention of
     Significant Deterioration (PSD)

o    Maintain Effective New Source Review (NSR)
     Program

o    Develop SIP for Lead especially for Primary
     Lead Smelters

o    Develop Effective Public Information and
     Participation Program

Collect Quality Ambient Monitoring and Emissions
Data

o    Develop State Air Monitoring Plan

o    Establish, Operate, and Quality Assure National
     Air Monitoring Network Stations (NAMS)

o    Replace Non-Equivalent Reference Monitors

o    Collect Data for Special Ozone Dispersion
     Modelling Efforts to Support 1982 SIP

o    Establish, Operate, and Quality Assure State/
     Local Air Monitoring Stations  (SLAMS)

o    Validate Potentially Anomalous Data

o    Conduct Annual Review of State Network

o    Conduct Limited Special Purpose Monitoring in
     Selected Urban Nonattainment Areas for Total
     Suspended Particulates  (TSP)

o    Review of Ambient Networks proposed by New
     Sources Seeking PSD Permit

o    Submit Source Data to National Emissions Data
     System  (NEDS)

o    Update Emissions Inventory for All
     Nonattainment Areas

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                       - 65 -
     The State/Local annual program plan for FY 80 nego-
tiated with the Environmental Protection Agency (EPA)
will define the task needed to accomplish the national
priorities.  EPA Regional Offices may supplement these
national priorities as well as this state guidance
with State specific guidance.  Further, the Regional
Offices may provide more detailed information concerning
priorities and expected accomplishments.  Likewise, State
and Local agencies have the flexibility to negotiate
priorities and commitments with EPA Regional Offices
which augment or replace national priorities provided
the national priorities pertinent to the agency's
responsibilities under the Clean Air Act are adequately
addressed.

     As indicated in the Clean Air Act, the development
and implementation of SIPS, are clearly the responsibility
of State and Local governments.  This includes the en-
forcement of SIP  strategies for the attainment and main-
tenance of national standards as well as the prevention
of significant deterioration.  To the extent that EPA
Regional Offices employ resources if they are required
to act in these areas, air program grant monies appro-
priated under Section 105 of the Act will be used.  Dur-
ing the negotiation the State or Local agency and the EPA
Regional Office may determine that contractual assistance
would be appropriate for the achievement of certain prior-
ities or tasks.  In such cases, Section 105 monies would
be used to support such contractor effort.

     Existing EPA/State agreements should be consulted
to assure that long range strategies and schedules con-
tained in the agreements are consistent with the
national priorities described in this guidance and the
negotiated State/Local program plan.

Principal State/Local Activities - Air Quality Management

     Develop/Enact VOC Regulations —  In accordance with
     the requirements set forth in the Administrator's
     policy memorandum of February 24, 1978, concerning
     State development of attainment SIPs, each State,
     in FY 80, having ozone nonattainment areas should
     assess and develop regulations  (if sources exist)
     for the control of VOC emissions from an additional
     ten source categories for which EPA has issued a
     Control Techniques Guideline  (CTG) document prior
     to January 1979.  These regulations are to represent

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                  - 66 -
Reasonably Available Control Technology (RACT)  for
the ten source categories and be enforceable when
submitted to EPA by January 1, 1980.

In addition, where regulations covering any of the
original eleven source categories (due in January
1979)  were not enacted by the States, or were con-
ditionally approved/disapproved by EPA, the State
should likewise enact approvable regulations and
submit them to EPA as soon as possible.  State and
Local program plans for FY 80 should indicate the
categories of additional VOC regulations which will
be enacted and the categories to be corrected or
modified (if necessary).

Implement Inspection/Maintenance (I/M) — In keep-
ing with the provisions of the Clean Air Act and
current EPA policy, including the Administrator's
policy memorandum of February 24, 1978, States are
required to obtain legal authority by June 30, 1979,
for the implementation of mandatory I/M program for
those urban areas receiving an extension under the
Act to 1987 or, if required by a control strategy,
for the attainment of standards by 1982.  Certain
exceptions to this requirement exist as specified
in the Administrator's policy memorandum and sub-
sequent policy statements.  States having EPA
approved SIP schedules and requisite legal authority
should, during FY 80, initiate the introductory
phases of the program.  In some areas, the mandatory
program should commence in FY 80, where the intro-
ductory phases, the hardware, and the procedures
already exist to insure implementation as expedi-
tiously as possible.  The deadlines are December 31,
1981, for decentralized systems  (FY 82), and
December 31, 1982, for centralized systems  (FY 83).
EPA Regional Offices will as requested provide
limited guidance to States in developing required
I/M programs.  The introductory phases include but
are not limited to:

o    Centralized: State-Operated Programs: Public
     information efforts; coordination with the
     service industry; quality control planning;
     design of stations; issuance of procurement
     documents; acquisition of land and equipment;
     construction of inspection facilities; hiring
     and training of inspectors; and adoption of
     necessary standards and regulations.

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                  - 67 -
o    Centralized:Contractor Operated Program:
     Negotiation and issuance of procurements;
     public informaton efforts; coordination with
     the service industry; and adoption of nec-
     essary standards and regulations.

o    Decentralized; Garage Based Program;  Public
     information efforts; quality control planning;
     Coordination with the service industry (partic-
     ularly with respect to inspector training,
     garage licensing, and mechanic training);
     development of "referee" facilities; and
     adoption of necessary standards.

States should realistically assess the start-up cost
and needs of the program.  Though it is EPA policy
that ongoing I/M programs should be self-supporting
and EPA cannot provide for all of the costs of start-
ing an I/M program, EPA is prepared to provide some
assistance (including limited funding for selected
projects).  In FY 80, States (1) having full legis-
lative authority and (2) which are actively pursuing
an approved schedule may be eligible for additional
funding support.  Such support should be discussed
with the EPA Regional Office.  State  (or Local) pro-
gram plans for FY 80 should indicate if State  (or
Local) agency has full legislative authority and
will be implementing an approved schedule.

Implement Transportation Air Quality Planning --
Urban areas nonattainment for carbon monoxide or
ozone which cannot attain the standard by 1982 and
receive an extension to 1987 are required under the
Act to develop transportation plans which, in con-
junction with stationary source controls, will
result in attainment of standards by 1987.  Develop-
ment of transportation plans is also required in
other areas if it is part of a control strategy for
the attainment of the ozone or carbon monoxide
standard by 1982.  Although funds under Section 175
of the Act were awarded directly to lead planning
agencies designated under Section 174 to develop the
transportation plans, the State and local air pollution
control agencies should play an important role in
the transportation-air quality planning process.
This role should have been defined in the division
of responsibilities prepared by the Governor under
Section 174 of the Act.  The President's Budget for
FY 80 does not request any additional appropriation

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                  - 68 -
of Section 175 monies.  The following activities
are important during FY 80:

o    Coordinate Planning.  Planning conducted with
     Section 105 funds should be coordinated with
     Section 175 funds.  State and Local control
     agencies should consult with lead planning
     agencies during development of stationary
     source control measures.  Also, State and
     Local control agencies should not limit their
     role in transportation planning to review of
     Section 175 grant applications, but be active-
     ly involved with the lead planning agency in
     development of an integrated transportation-
     air quality planning process.  State control
     agencies should insure that State departments
     of transportation are actively involved in the
     process.

o    Evaluate Alternative Strategies.  The June 1978
     joint Environmental Protection Agency-Depart-
     ment of Transportation guidelines describe the
     required process for the evaluation of alter-
     natives.  Although the lead planning agency has
     primary responsibility, the State and Local
     control agencies should be fully involved in
     the selection of measures to insure that emis-
     sion reduction targets assigned to the trans-
     portation sector are achieved.  Earlier EPA
     guidance required that emission reduction tar-
     gets for mobile and stationary sources be
     negotiated between the State and the lead plan-
     ning agency. In addition, a process should be
     established for periodic review and adjustment
     of the targets as new information is obtained.

o    Implement Measures in the 1979 SIP.  The 1979
     SIP contains commitments to implement reasonably
     available transportation control measures and
     to evaluate other transportation measures.  In
     most cases these commitments are in the form of
     schedules.  State and Local control agencies
     should track progress and work with implementing
     agencies to insure that all measures are under-
     taken on schedule.  EPA Regional Offices will
     provide extensive guidance to both the State
     and the lead planning agency in developing and
     implementing the transportation planning pro-
     cess and specific transportation control

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                  - 69 -
     measures within those urban nonattainment
     areas having a population 1,000,000 or more.
     The State (or Local) program for FY 80 should
     define the specific steps the agency will carry
     out to interface with the lead planning agency.

Prepare Data Base for 1982 Ozone SIP — Where exten-
sions are approved by EPA for the attainment of the
National Ambient Air Quality Standards (NAAQS) for
ozone or carbon monoxide, States in FY 80 should
initiate certain preparatory activities for the
required 1982 SIP submission.  For ozone, this
entails the development within more severe urban
nonattainment areas of detailed emission inven-
tories; ambient meteorological data bases and modelling
capabilities for the application of ozone diffusion
models developed by EPA or State developed
models approved by EPA.  Urban nonattainment areas
with a design value in excess of 0.20 ppm and an
urban population of 1,500,000 or more are principal
candidates (i.e., NE corridor, California) for
application of the model.  Use of the model will be
a major tool in determining in FY 82 appropriate
strategies for inclusion in the required December 31,
1982 SIP submission.  State (or Local) program plans
for FY 80 should define in which major urban non-
attainment areas for ozone the baseline data for
diffusion modelling will be collected in FY 80.

Undertake TSP Field Studies and Correct Conditional
SIPs — As required by the Administrator's policy
memorandum of February 24, 1978, many of the January
1979 SIPs for TSP contained schedules for the anal-
ysis of measures for control of urban fugitive dust
where necessary to attain the NAAQS by 1982.  In
most cases, the possible measures for control of
urban fugitive dust are complex with little existing
data concerning their effectiveness.  Extensive
study will be necessary to determine which measures
are most effective yet practical in terms of cost
and feasibility to implement.  Many of the schedules
call for analysis of the same or similar control
techniques.  As a result, EPA will initiate efforts
to conduct national studies for a few of the more
promising control measures in order to prevent
duplication.   With the likelihood that an Inhalable
Particulate Standard (IP) will result from the
current EPA review of the NAAQS for TSP, caution

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                  - 70 -
should be exercised in implementing any major and
costly control strategy at the present time.   In
FY 80, States should initiate efforts to collect
limited data on particle size distribution in the
urban nonattainment areas where re-entrained fu-
gitive dust is a major element and where field  studies
to better define the fugitive dust problem are
going to be conducted pursuant to commitments in
the 1979 SIP.  This information will be very use-
ful in determining further the potential sources
and what type of control measures may be most
effective particularly upon the establishment of
an inhalable particulate standard.

States whose 1979 SIP for TSP has been conditionally
approved or disapproved by EPA should correct or
modify the SIP as expeditiously as possible includ-
ing the enactment of new or modified regulations as
required for the control of traditional emissions
from existing stationary sources  (stack and fugitive
process emissions).  The State (or Local) agency
program plan for FY 80 should describe what efforts
the agency will take to define particle size in
these non-attainment areas and to analyze possible
control measures.  In addition, the traditional
source regulations that will be corrected or mod-
ified (if necessary) should be identified in the
program plan.

Consider Maintenance Strategies/Growth Accommodation—
In FY 80, States are likely to receive a number of
requests to modify various SIP control strategies
within attainment areas for TSP and SC>2 as certain
energy supplies become more limited.  Such revisions
will consume air quality and PSD increments.  In
determining whether to make these modifications to
the SIP, States should consider the need to ade-
quately maintain National Ambient Air Quality Stand-
ards and to effectively manage future growth in
emissions.  Caution should be exercised in developing
revisions to the SIP which would be marginal in terms
of attainment and would provide little or no assur-
ances of maintenance or flexibility in managing new
source growth.

Similarly, any effort to revise or delete specific
control measures or commitments from the attainment
SIPs for ozone as a result of the change in the ozone
standard should also be carefully considered in terms

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                  - 71 -
of the impact of the revisions on the continued
maintenance of the standard and future growth as
increments for the automobile related pollutants
are established under the PSD program.  Development
of measures such as I/M and transportation measures
in areas which are presently attaining standards or
will attain them by 1982 would provide greater
assurance of the long term maintenance of standards
and provide significantly more flexibility in man-
aging future growth.

Develop State Plans for Prevention of Significant
Deterioriation -- In accordance with Part C of Title
I of the Clean Air Act and 40CFR51 (June 18, 1978),
States are required to develop and submit to EPA a
plan for the prevention of significant deterioration.
A plan for TSP and sulfurdioxide   (S02) was due on
March 19, 1979, and similarly a plan for automobile
related pollutants is required nine months after EPA
promulgates PSD regulations for these pollutants.
Some States were not able to develop the PSD plan
for TSP and SC>2 on schedule because of other prior-
ities in preparing required SIPs for attainment of
standards.  It is essential that these States com-
plete the plan as expeditiously as possible in FY 80.
The grants mechanism will be employed by EPA to
ensure firm commitments from States to undertake
this important program.  Major EPA Regional Office
assistance will be available, to guide States upon
request in developing the required plan as well as
implementing the early stages of the program.  State
program plans for FY 80 should indicate the date when
an approvable plan will be completed.  Likewise, it
is important that States initiate efforts to prepare
required PSD plans for automobile related pollutants
in FY 81 upon promulgation of final regulations by
EPA in FY 80.

Develop Effective State New Source Review Programs
(NSR) —  By the end of FY 80, States (and Local
agencies having NSR and/or PSD review responsi-
bilities)  should have fully operational NSR/FSD
programs.   In order to accomplish this successfully,
it is essential that State and Local agencies be
capable of conducting NSR/PSD reviews in effective
and timely manner including the conduct of all
Tier I reviews for PSD; the management of
offset or accommodative SIP for new source

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                  - 72 -
growth in nonattainment areas; the conduct of all
Tier II reviews upon EPA approval of the State
PSD plan; and the periodic assessment of PSD
increment consumption.  In conduct of PSD reviews,
priority consideration should be given to Air Qual-
ity Control Regions (AQCR) where energy facilities
are requesting approval to construct.  Within the
AQCR, reviews against the allowable PSD increment
should continue to be conducted on a first-come-
first-served basis or in a manner consistent with
the appropriate States growth policy where one has
been adopted.  In FY 81, the principal EPA role in
NSR/PSD area will be one of periodic overview and
audit of State and Local programs with little or no
direct EPA permitting or sources.

Develop SIPs for Lead (Pb) — While SIPs for lead
(Pb) are due in June 1979, other priorities  involv-
ing attainment SIPs may have caused some problems
for States in completing the development of the SIP
on schedule.  It is important that these States com-
plete, particularly for primary lead smelters, the
required SIP as soon as possible in FY 80.  It will
be particularly difficult to develop effective con-
trol measures for smelters which are feasible and
reasonable in cost.  Extensive efforts will be
necessary to arrive at a suitable control strategy.

Implement Additional Air Management Tasks for FY 80
to Extent Possible — Other efforts mandated by the
Clean Air Act or EPA regulations require action by
State and Local agencies in FY 80.  While these
efforts are of lower priority, State and Local
agencies should initiate, continue, or complete
as many of these requirements as possible if appli-
cable to their program.

     o  Several miscellaneous revisions to the SIP
        are required in order to have a fully approv-
        able SIP.  Included are stack height, public
        notification, State permit fees, State board
        compensation, oxidant alert level, and
        emergency episode requirements.  Information
        as to  which of the miscellaneous SIP revi-
        sions will be completed during FY 80 should
        be included in the State program plan.

     o  A number of States pursuant to the provi-
        sions of Section lll(d) of the Clean Air Act

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                  - 73 -
        and 40CFR62 are required to develop and
        submit plans for the control of emissions
        of designated (noncriteria)  pollutants from
        existing sources.  Certain of these plans
        reflect new requirements for FY 80 (sulfuric
        acid mist from storage battery manufacturing
        plants and fluorides from aluminum manu-
        facturing plants);  while others represent
        plans due in FY 78  or FY 79.  Submission of
        completed plans is  required only from States
        having affected facilities.   An indication
        of the lll(d)  plans which will be completed
        during FY 80 should be provided in the State
        plan.

Prepare for New Requirements in FY 81

     o  In accordance with  Subpart 2 of Part C of
        Title I of the Clean Air Act States are
        required (Section 169A)  to develop as part
        of the SIP, a plan  for the protection or
        enhancement of visibility in mandatory
        Class I areas (Section 162)  where the Depart-
        ment of Interior has determined visibility
        to be an important  value.  Plans are due to
        EPA nine months after the promulgation of
        regulations by EPA  for the protection/enhance-
        ment of visibility.  Regulations are currently
        under development within EPA and are expected
        to be proposed in the Spring of 1980.  States
        in FY 81 should complete the preparation of
        the plans upon the  promulgation of the regu-
        lations.

     o  Section 109(c)  of the Clean Air Act requires
        EPA to promulgate a short term ambient air
        quality standard for nitrogen dioxide if
        evidence indicates  that a short term stand-
        ard  (1-3 hours)  is  needed to protect public
        health and welfare.  At the same time, the
        annual standard for nitrogen dioxide is also
        undergoing review as required by the Act.
        States will have  nine months from the pro-
        mulgation of a new  and/or revised standard
        to develop and submit necessary revisions
        to the SIP.  Proposal of a short term stand-
        ard is expected by  October 1979 with pro-
        mulgation anticipated in the  Spring of 1980.
        States in FY 81 should complete the prepara-
        tion of the plan upon promulgation of the
        standard.

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                       - 74 -
Principal State and Local Activities - Air Quality
Monitoring

     Develop and Submit State Network Plans — For
     FY 80, State and Local programs in air quality
     monitoring will be in transition from those ini-
     tiated in response to the SIP requirements issued
     by EPA in 1971 to those required by the substan-
     tially revised regulations developed by the Stand-
     ing Air Monitoring Work Group (SAMWG).  Current
     schedules call for promulgation of these regula-
     tions by May 1979.  In accordance with these
     regulations, each State should complete, early in
     FY 80, the development of a revision to their SIP
     which provides for the establishment of a State
     monitoring program for all pollutants for which
     there are National Ambient Air Quality Standards
     (NAAQS) as well as the preparation of a written
     description of the network for all State and Local
     Air Monitoring Stations (SLAMS).  The SIP revision
     must be submitted to the Administrator and the
     SLAMS network description made available for EPA
     inspection by January 1, 1980.  Although prepara-
     tion of the SIP revision and the network descrip-
     tion is a State responsibility, the States should
     consult with the Regional Offices during the
     preparation of the SIP and design of the SLAMS
     network.  It should be noted that preparation of
     a complete design and description of the SLAMS
     network will require that the State and Regional
     Office first reach agreement on the network for
     the National Air Monitoring Stations (NAMS) within
     the State.  By January 1, 1980, each State will be
     required to designate all stations to be estab-
     lished as NAMS including a schedule for placing
     into operation any new NAMS.  State program plans
     for FY 80 should indicate the completion dates for
     the required SIP revision for the State Monitoring
     Program; schedules for putting new NAMS into
     operation; and date for completing the written
     description of the SLAMS network.
     While the preceding are high priority tasks within
     the monitoring area, they should not be done at the
     expense of meeting such basic monitoring objectives
     as generating timely ambient and source data or
     making required data submissions to EPA.

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                  - 75 -
Achieve Compliance with Reference/Equivalency
Requirements —  In addition to implementing the
forthcoming regulations developed by SAMWG, the
States are responsible for meeting EPA's refer-
ence/equivalency requirements for ambient instru-
mentation.  These requirements  (40CFR51.17a) were
promulgated in 1975 and require compliance by
February 1980.  During FY 80, as in past years, the
primary obstacle to compliance with EPA's instrumen-
tation requirements will be difficulties in obtain-
ing the funding to purchase necessary replacement
equipment to meet the reference/equivalency require-
ments.  State and Local control agency officials
should allocate funds for these capital expend-
itures in FY 80.  While the President's Budget
requests an increase for air control program grants
in FY 80, the agencies should not view any proposed
increase as their sole source of funding for re-
quired instrumentation and should assume that only
a portion of any forthcoming grant increase would
be for instrument procurement.  State or local con-
trol agency officials should attempt to obtain
funding from local revenue sources or utilize lapse
funds to address at least some of these needs.  In
States where available resources are insufficient
to purchase all instrumentation needed, priority
should be given to acquiring continuous reference
or equivalent equipment for all existing NAMS.  This
is especially important with regard to the ozone NAMS
in major urban nonattainment areas where application
of diffusion modelling will be required  (urban areas
with design value in excess of 0.20 ppm and popula-
tion of 1,500,000 or more).  By concentrating funds
in this way, more States should be able to have
acceptable instrumentation at all NAMS by January 1,
1981, the deadline at which the remaining NAMS
requirements must be met, and  have  adequate  data  for
control strategy development in the more severe non-
attainment areas.  Within the State or Local program
plans, the type and location of unacceptable con-
tinuous monitors to be replaced with reference or
equivalent monitors during FY 80 should be indicated.

Establish/Operate NAMS — A key premise of the new
SAMWG regulations is to give greatest attention and
resources to those monitors in areas with the highest
pollutant concentrations and population exposures
(large urban nonattainment areas).   Since these are

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                  - 76 -
typically stations within the NAMS network,  the
regulations call for the NAMS to be the first
portion of the SLAMS to be fully operational with
respect to the monitoring criteria referenced in
40CFR58 (by January 1, 1981).  Further, emphasis
in FY 80 should be given to the ozone NAMS located
in the major urban nonattainment areas where diffu-
sion modelling will be required.  To meet this
deadline, substantial efforts in FY 80 will  be
required in most States.  The most significant
actions required to achieve this are:

     o  Develop a quality assurance  (Q/A)  program
        meeting the criteria set forth in Appendix
        A and implementation of this program at
        all NAMS.

     o  Take actions to ensure that all existing
        NAMS are physically located according to
        the approved SLAMS network description and
        are consistent with the monitoring objec-
        tives, spatial scales and other design
        criteria presented in Appendix D.

     o  Ensure that the siting of the monitor
        probes for all existing NAMS is consistent
        with the criteria presented in Appendix E
        to the maximum extent possible.  For each
        NAMS  at which the probe siting criteria
        cannot be followed, the State should
        thoroughly document the particular situa-
        tion and submit a written request for a
        waiver not later than the date of submis-
        sion of its revised monitoring plan.

     o  Document the specific pollutant monitor for
        which each "reporting organization"  will be
        responsible relative to calculation and
        reporting of precision and accuracy infor-
        mation for NAMS.

Although positive State or Local commitments are
required for each of the above action items, the
development of detailed plans for assuring the
quality of NAMS data should receive  the greatest
attention at the beginning of the fiscal year.
Early action is needed because of the fact that
most State and Local agencies will have to imple-
ment a substantial number of new activities in

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                   - 77 -
order to have a quality assurance program which
meets the Appendix A requirements.  Thus, no less
than the entire year will probably be needed for
detailed planning, acquiring and testing any new
equipment needed, training personnel in the new
quality assurance (Q/A) procedures, and preparing
written protocols, manuals and procedures.  By the
end of FY 80, all States should have implemented a
majority of the critical components of their Q/A
program and be operating on a plan calling for the
remaining Q/A components to be phased in during
the first three months of FY 81.  The State (or
Local) program plans for FY 80 should commit to
preparing and submitting to EPA by June 30, 1980,
a written program (plan) for assuring the quality
of data at all NAMS consistent with Appendix A.
Their program plan should also define the extent
to which NAMS will be meeting all requirements
of Appendices C,  (Ambient Air Quality Monitoring
Methodology), D, and E by the end of FY 80.

Collect Data for 0-3 Model Application — Urban
nonattainment areas with a design value exceeing
0.20 ppm and having a population of 1,500,000 or
more will generally be required to apply a disper-
sion model to prepare their 1982 03 SIP revisions.
During FY 80, control agencies should compare
available data with that needed to apply 03 dis-
persion models and initiate programs to collect
needed source data and/or short-term ambient data.

Undertake Additional Monitoring Tasks for FY 80

     o  Submit timely air quality data and parti-
        cipate in EPA/State programs to validate
        potentially anomalous data generated at all
        NAMS and for selected SLAMS (for FY 80 data
        and 3-5 years of historical data)

     o  Perform thorough annual review of the
        entire State ambient network;

     o  Maintain strong State capabilities for
        responding to air emergencies (spills
        and/or episodes caused by weather);

     o  Conduct limited special purpose monitoring
        in major urban nonattainment areas for TSP

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   where re-entrained fugitive dust is a major
   component in order to better define particle
   size in anticipation of developing a SIP for
   an inhalable particulate standard.

o  Review ambient networks proposed by new
   resources seeking PSD permits and surveil-
   lance of the ambient monitoring done by
   proposed sources to ascertain the validity
   of the data.

o  Update State source/emission inventories to
   calendar year 1979 (to include, where re-
   sources are available, enhancement of
   inventories in areas of special concern).

Other efforts will require action by State and
Local agencies in FY 80.  While these efforts
are of lower priority than those described above,
State and Local agencies should initiate, con-
tinue, or complete as many of these as possible.
The tasks include:

o  Submit source data to EPA's National Emis-
   sions Data System annually on all point
   sources covered by EPA's reporting require-
   ments (to include changes and an annual
   update of the year of record)

o  Establish systems for daily reporting of an
   index of air quality in urban areas over
   500,000 pop.;  (to be fully operational by
   1/1/81);

o  Prepare population exposure analyses for
   urbanized areas greater than 1,000,000
   population or  for the largest city in the
   State in less populous States;

o  Prepare written plans for the establishment
   of the network for ambient monitoring of
   lead.   (States are encouraged to develop
   these plans and discuss them with the
   Regional Offices in FY 80 prior to the
   submission of  the lead SIP) .

o  Compile and make available to the Regional
   Office, detailed data on the probe siting
   and nearby environment of each National
   Air Monitoring Station.

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                          - 79 -

          o  Conduct performance audits at not less than
             10% of all NAMS to field test the procedures
             required in FY 81 and thereafter;

          o  Validate SLAMS air quality data;

          o  Conduct performance audits of small local
             agencies' operating monitors within the
             SLAMS network.

     The State or Local program plan should define the
     areas which will initiate actions to establish a
     system for reporting a daily air quality index in
     urban areas over 500,000 population by January 1,
     1981.  The plan should also indicate the extent to
     which performance audits will be conducted on all
     operational NAMS by the end of FY 80.

Principal State/Local Activities - Stationary Source
Enforcement

     The major efforts in FY 1980 for the stationary
source enforcement program for the states includes
enforcement actions in situations involving substantial
threats to public health or safety; virtual completion
of the Major Source Enforcement Effort by the end of
FY 1980; support of any continuing SIP revision work;
assurance that major sources comply with new requirements
placed on them by SIP revisions; enforcement of NSPS
and NESHAPS; implementation of noncompliance penalties
under Section 120; and implementation of an improved
program of compliance monitoring and enforcement to
assure continuous compliance.

o  Emergency Response

     States should initiate prompt enforcement actions
in situations involving substantial threats to public
health and safety.  Frequently, the removal of the
danger may not be the responsiblity of enforcement
personnel and enforcement actions have top priority
only when needed to remove the danger.

o  Major Source Enforcement Effort

     The states should be working towards the expenditious
conclusion of all MSEE civil/criminal actions they committed
to in the winter of 1977-1978 or thereafter.  By the
end of FY 1980, MSEE should be virtually completed
with only a few actions and appeals still pending in
trial or appellate courts.

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                          - 80 -


o  Federal Facilities

     The 1977 Amendments to the Clean Air Act made
clear that Federal facilities are subject to State
environmental requirements.  EPA is encouraging States
to assume these responsibilities regarding Federal
facilities.   Since the President has ordered all
Federal facilities to come into and remain in compliance
and is providing necessary funds, States should find
the managers of Federal facilities cooperative.
Careful coordination between the State and EPA Regional
office will be required as States assume more of this
responsibility.  EPA will assist States in getting
disputes resolved, if any should exist.

o  Enforceable SIP Provisions

      The  EPA Office  of  Enforcement  is  taking  an  active
role  in the  1979  SIP revision  process  for  nonattainment
areas and is reviewing  each  state submission  for
enforceability. In FY 1980,  the  Office of  Enforcement
will  continue  to  support  states  in  developing  enforceable
regulations  for any  continuing SIP  revision work,
including the  required  additional VOC  regulations,  and
any necessary modifications  to regulations submitted
in the 1979  SIP revision  process.

o  Assure Major Source  Compliance

      State and local air  pollution  control agencies
should undertake  appropriate enforcement actions  to
ensure that major sources  are  brought  into compliance
with  the  requirements of  the SIP and other requirements
of the Clean Air  Act.   Actions to verify and  to  assure
compliance of  existing  VOC sources  with  the new
emission  regulations submitted in the  1979 SIP revisions
should also  be fully implemented.   In  addition,  states
should assure  that major  sources comply with  new
requirements resulting  from  further  revisions  to  the
SIP.   Intensive surveillance will be needed to assure
that  sources meet compliance schedules as  well as  final
emission  limits and  do  not contribute  to a violation of
the new statutory attainment deadline  (December  31,
1982).  State  enforcement  personnel must stay abreast
of source compliance and  take  prompt enforcement  action
including civil/criminal  actions when  violations  are
determined to  assure that  compliance schedules and
final limits are  met.   Specific  case development
inspections  will  be  necessary  to adequately document
violations for appropriate enforcement action.

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                           -  81  -

 o  Noncompliance Penalties

      In the  last quarter of  FY  1979,  EPA will implement
 the noncompliance penalty program required by Section
 120 of  the Clean Air Act which  will seek administratively
 imposed penalties that remove the incentive for continued
 noncompliance by major sources.  In FY 1980,  EPA will
 work closely with States to  facilitate delegation of
 this new program to the States  and provide appropriate
 assistance when needed.  States which have adequate
 legal authority will be able to secure delegation from
 EPA to  implement the program by the end of FY 1980. EPA
 will work closely with any State  that wishes  to secure
 necessary legislation so that delegation can  be obtained
 as  expeditiously as possible.

 o  Continued Source Compliance

      Also of importance is the  continued compliance of
 sources.  It  is  EPA policy that  states conduct periodic
 (at least once  per year for  major  sources)  inspections
 to  assure continued source compliance.

      The  compliance status of all  major sources (existing
 SIP sources  which  include sources  with  NSR/PSD permits,  and
 also, NSPS and  NESHAPS sources) at the  beginning of FY 1980
 should  be provided to  EPA.   Inspection  means  the verification
 of  the  compliance  status for  all  emission points within  a
 facility  for  all  regulated pollutants and determination  of
 compliance by the  facility with all enforceable procedural
 requirements.   In  FY 1980, States  should expect that efforts  to
 ensure  the continued compliance of sources  will increase as
 initial compliance efforts are  completed.  In  FY 1980,  EPA
 will  complete the  design and  implement  an improved  program
 for  compliance  monitoring and enforcement to  ensure the
 continued  compliance of  sources.

 o   CDS  Updates

      The  CDS is  the  primary EPA system  for  storing  and
 managing  information on  all major  stationary  sources
 subject to the  Clean Air  Act  requirements particularly
 as  that information  relates to  the determination of
 compliance with  these  requirements.   State  and  local
 agencies  have the  primary  responsibility  for  gathering
 and documenting this information and  must therefore
provide periodic updates  to CDS (at least quarterly)  in
 a timely manner to  insure  that  effective  use  of  the system
by EPA can be accomplished.   State  (or  local)   program
plans for FY 1980  must  indicate the frequency  and the
mechanism the agency will  utilize  to  update CDS.

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                          - 82 -
o  State Planned Program Accomplishments

     The following represent program accomplishment
measures for the Stationary Source Enforcement portion
of the State program plans.  The states and Regional
offices will continue to have flexibility to negotiate
additional specific program accomplishment measures for
inclusion in the state plan.  The following measures are
the minimal information needs of the Agency.
     1.  Status of state actions relating to the Major
Source Enforcement Effort  (MSEE).  States committed to
civil/criminal action, DCO's, compliance determinations,
and other actions in the winter of 1977 - 1978 give
the present status of these actions.

     2.  Number of civil/criminal actions against major
existing SIP sources other than MSEE actions.  This activity
would include those actions against major SIP sources which
are not a part of the MSEE.

     3.  Number of civil/criminal actions against new
sources in violation of NSPS, NSR, PSD regulations.

     4.  Number of civil/criminal actions against sources
in violation of NESHAPS regulations.

     5.  Number of Section 120 noncompliance penalties
assessed.  A penalty is assessed when the state and violating
source has agreed upon schedule of payments.

     6.  Number of inspections of major SIP sources  (includes
existing sources and sources operating with NSR, PSD permits),
All major SIP sources must,be  inspected annually and the
compliance status updated.  An  inspection means verification
of compliance status for all emission points within a
facility for all regulated pollutants and determination of
compliance by the facility with all enforceable procedural
requirements.

     7.  Number of NESHAPS sources  inspected.   Instructions
the same as for major SIP  inspections.

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                          - 83 -

     8.  Number of new source permits issued.  Report
the sources receiving an NSR or PSD permit separately  and
sources receiving both an NSR and PSD permit report under
NSR permit.

Footnote:

  There can be exceptions to this annual verification  of
each source.  In cases where an inspection of one source
guarantees compliance by other sources, it is not necessary
to verify the status of each individual source.  For
example, if ten sources are burning only low-sulfur oil and
receive all oil supplies from one distributor, and if
inspection of that distributor will verify the compliance
status of each of those ten sources, only the one inspection
of the distributor must be made.  Other such exceptions
may be approved by the Regional office in accordance with
established Agency policy.
Principal State/Local Activities - Mobile Source Enforcement

     °  Anti-Tampering/Fuel Switching -

        Because of the substantial auto-related air
        pollution emanating from automobiles and
        trucks in the urban non-attainment areas, state
        enforcement of the tampering and fuel  switching
        prohibitions should receive priority attention
        in FY 80.  There is evidence of significant
        problems with deterioration of emission
        control systems while in use,  improper or
        insufficient vehicle maintenance,  tampering,
        and the use of leaded gasoline in catalyst
        equipped vehicles whose systems are deactivated
        by lead.   Increased emphasis should be given
        by States to maintaining the effectiveness
        of emission control systems on the auto and
        trucks throughout the period of their use
        by addressing these problems.   Enforcement of
        anti-tampering and fuel switching provisions
        is also intended to support I/M programs by
        retarding further emission deterioration of
        the vehicle fleet before the programs begin.
        Public resistance to I/M programs may increase
        proportionately with the percentage of the
        fleet that would ultimately fail an I/M program

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                    - 84  -

 due to the  cost of  repairing  emission control
 components  necessary  to  pass  inspection.   If
 resistance  is to be avoided,  tampering and fuel
 switching must be controlled.   To achieve this,
 States should emphasize  enforcing the tampering
 and fuel switching  prohibitions in the major
 non-attainment areas  requiring  I/M programs,
 where enforceable State  regulations presently
 exist.  To  provide  for maximum  deterrent
 effect,  enforcement efforts  should be aimed at
 major chains  of repair facilities, fleet
 operators,  new car  dealerships,  and gasoline
 retailers.  Where enforceable regulations do  not
 exist, States are encouraged  to seek enactment
 of  regulations for  anti-tampering and fuel
 switching which can be implemented in conjunction
 with I/M programs.  The  EPA  Office of Enforcement
 is  available  to provide  assistance to States
 in  developing these regulations.

 I/M Proqtjm Audits

 EPA will conduct audits  of operational I/M
 programs in FY LI.  In conuucting the audits,
 EPA will evaluate state  procedures to assure
 that subject  vehicles  are  tested  and repaired
 (if necessary) by means  of appropriate
 enforcement mechanisms.  EPA  recommenus the
 withholding of vehicle registration as the
 most effective mechanism for  denying, operation
 of  non-complying vehicles.   States should
 be  aware that the Clean  Air  Act Amendments of
 1977 made Federally owned  vehicles subject to
 the same requirement  as  other vehicles in an
 I/M area.

Suggested State Planned Program Accomplishments --
The following  represent suggested program accomplishment
measures for the Mobile Source Enforcement portion
of the State program plan.   The States and Regional
Offices will continue  to  have flexibility to negotiate
specific accomplishments  for inclusion in the State
plan.

     1. Number of Stage I vapor recovery  inspections.
         (No start level,  quarterly reporting.)

     2. Number of Stage I vapor recovery  enforcement
        actions.  (No start level, semi-annual updates.)

     3. Number of tampering inspections.   (No  start
         level, reported quarterly.)

     4. Number of tampering enforcement actions.
         (No start level,  semi-annual  updates.)

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                        -  85  -
5.  Number of Stage I vapor recovery enforcement actions
   — An enforcement action is the issuance of a notice
   of violation, compliance order, and/or filing of a
   complaint in the district court when appropriate.

6.  Number of tampering inspections — A tampering
   inspection includes a determination as to whether
   there has been a removal or rendering inoperative
   of emission controls on a motor vehicle or motor
   vehicle engine, whether the person(s)  who did it
   were prohibited under law, and development of
   sufficient documentary, and physical evidence to
   support a prosecution, if necessary.

7.  Number of tampering enforcement actions — An
   enforcement action can include the issuance of a
   notice of violation, traffic citation and/or filing
   of a civil or criminal complaint in the appropriate
   court.

   Definition — Stage I Vapor Recovery Inspection —
   an inspection to determine to whether or not the
   required equipment and systems are installed and
   connected during operations.  The inspection is for
   the purpose of determining the presence of:

        o  Underground storage tanks.

        o  Proper couplings and fittings (for connection
           with vapor return hose).

        o  Submerged filled pipe  (not more than 6 inches
           from the bottom).

        o  Restrictive devices or ventlines (to ensure
           use of vapor return hose).

   And includes the observation of gasoline transfer
   operations where possible, to determine if vapor
   return hoses are actually used.

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                        -  86  -
Principal State and Local Activities - Public Information/
Participation

     Effective public information and participation pro-
grams are essential to the success of State and local
governments in meeting the requirements of the Clean Air
Act.  It is clearly the intent of Congress that public
participation be a major element in the development and
implementation of strategies for the attainment and main-
tenance of National Ambient Air Quality Standards and
the prevention of significant deterioration.  The 1977
Amendments emphasize these needs and include a number
of requirements for public education or public partic-
ipation and citizen involvement in the decision-making
process.

     State and Local agencies should develop and submit
to EPA by January 1, 1980, a description of the agency's
proposed public information and participation program
including a statement of major objectives; the principal
iaecho.Ai.sms to be employed to achiev these objectives;
the resources which will be allocated to the program;
support requirements needed from EPA; and the procedures
used for coordinating activities with other State and
Local public information and education programs con-
ducted under various EPA requirements (i.e., Metropolitan
Planning Agencies).  Particular emphasis on public infor-
mation and participation efforts associated with inspec-
tion/maintenance programs, transportation control programs,
programs for prevention of significant deterioration, and
the public notification program required by Section 127
of the Act is essential.  Also, it is important that
effective public information efforts describe what ac-
tions have or are being taken to counter potential
restrictions on the growth of cities experiencing major
nonattainment problems.   Such efforts include:  the
interpretation of the Clean Air Act  requirements and
deadlines in a reasonable manner  (i.e., schedules  for
development of I/M  programs and implementation of
transportation measures); establishment of  policies
to minimize the impact of sanctions  and growth limita-
tions where good  faith efforts are made; and the
initiation of specific programs to help cities achieve
both air quality  and economic development objectives
(i.e., Air Quality  Technical Assistance Demonstration
Grants, Section 175 planning grants  to Local govern-
ments and provisions for  the banking of excess emission

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                        - 87 -
reductions).   Staff from EPA Regional Office public
affairs will monitor and oversee State public information
and participation activities as part of the annual mid-
year and final State evaluations.   State or Local pro-
gram plans for FY 80 should indicate the date by which
the description of the agency's public information and
participation program will be developed.

Suggested State Projected Program Accomplishments

     The following represent suggested program accomplish-
ment measures for the Air Monitoring portion of the State
program plans.  The States and Regional Offices will
continue to have flexibility to negotiate specific program
accomplishment measures for inclusion in the State plan.
     1.   Identification of the respective "reporting
          organization" responsible for calculating and
          reporting precision and accuracy data for each
          NAMS within the State —"Reporting Organization"
          is defined in Section 3 of Appendix A to 40
          CFR 58.  To meet this accomplishment the State
          must, as a minimum, prepare and submit to EPA a
          list by pollutant of all National Air Moni-
          toring Stations (NAMS)  and their SAROAD site
          identification codes and identify for each
          NAMS the "reporting organization" to be re-
          sponsible for calculating and reporting
          precision and accuracy information.

     2.   Update the State's source/emission inventory
          to calendar year 1979 by 6/30/80 — The mini-
          mum needed to satisfactorily meet this
          accomplishment would be updating of the
          source/emission inventory to reflect calendar
          year 1979.  Where additional resources are
          available, States are encouraged to also
          undertake programs to enhance inventories in
          non-attainment areas, e.g., emission inven-
          tories needed for the 1982 SIP revisions for
          03 and CO or other areas of special concern.

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                  - 88 -
3.   By 9/30/80 submit to EPA information to update
     the point source inventory within the National
     Emissions Data System (NEDS)  to calendar year
     1979 — The updating requirements for point
     sources subject to EPA's reporting require-
     ments are contained in 40 CFR 51.322 and 51.323
     (to be published as final rulemaking in 5-79).
     In addition to updating the year of record for
     each source, other changes relating to new
     sources, sources no longer operating and signif-
     icant changes to emissions must be also reported
     to NEDS annually.

4.   Number of performance audits of pollutant moni-
     tors performed by the State (by pollutant) --
     As defined in 40 CFR 58, App.  A., States will
     be required to audit each NAMS pollutant moni-
     tor annually starting in 1981.  To meet this
     above accomplishment for FY 1980, States must
     audit at least 10 percent of their NAMS annually
     and in total conduct no fewer performance audits
     than were done in FY 79.

5.   Number of unacceptable continuous analyzers
     replaced with reference or equivalent monitors
     expressed as a ratio to the total number of
     analyzers needing replacement (by pollutant)—
     The State should identify the number of analyzers
     not currently meeting reference or equivalency
     requirements within the entire SLAMS Network
     and report quarterly how many have been re-
     placed on a cumulative basis  (by pollutant).

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WATER QUALITY STATE GUIDANCE

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                   WATER QUALITY

MEDIA OVERVIEW

Major Objectives

During 1980/81 the Water Quality Program will aggressively
pursue the following three central objectives which are
encompassed in this Guidance:

     o  To aggressively control pollution discharges in
        order to protect public health and sensitive
        ecological systems such as wetlands;

     o  To share responsibilities with States and localities
        while encouraging public participation in water
        quality management; and

     o  To manage the program in an efficient manner.

Clearly, the driving force in the Water Quality Program is
to control pollution, to protect public heatlh and the
environment.  As our knowledge has increased regarding the
effects of toxic pollutants on human life, so too have we
intensified our efforts on controlling toxic pollutants
from entering the environment.  Similarly, the significant
improvements in our understanding of aquatic resources,
especially wetlands and shallow water areas, is paralleled
by increased legislative attention to protect these
resources through Section 404 of the Clean Water Act.
It is essential that responsibilities are shared between
Federal and non-federal authorities to maximize our efforts
on improving water quality, to limit redundancies in
Federal and non-federal programs, and to utilize the best
mix of resources to identify and solve our environmental
problems.   Because of the critical nature of the Water
Quality Program and the large number of dollars the program
utilizes,  it is essential that the program be managed
efficiently to maximize environmental benefits.  This can
be achieved through an integrated planning and implementation
process within the Agency as well as integration with other
Federal agencies and States and localities.

Major Planning Assumptions

Inherent in the priority activities for FY 80/81 for
achieving media objectives are the following major planning
assumptions:

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                   - 92  -
Construction Grants

o  The Construction Grants appropriation will be
   $3.8 billion in FY 1980 (available by October 1,
   1979), and $4 billion is requested in FY 1981,
   with the allotment formula for both years the
   same as in FY 1979.

o  The Congress will enact a one-year extension of the
   allotment period for FY 1979-1982 Construction
   Grants funds, increasing the period of availability
   to three years for all appropriations authorized
   in the Clean Water Act.

Spill Prevention

The Spill Prevention and Response Program, while
continuing in the general program direction established
during the last two years, is experiencing some major
changes in emphasis to allow response to hazardous
spills.  The principal assumptions for program
planning in FY 1980 are:

o  Publication of final Hazardous Substances Reg-
   ulations, revised to incorporate the October 1978
   amendments to Section 311 of the Clean Water Act,
   is expected in the Spring of 1979.

o  The list of 299 hazardous substances which must be
   reported in the event of a spill and which will
   require EPA spill emergency response will be
   expanded by 1981.

o  Based on voluntary reports, the program estimates
   about 700-1,200 hazardous spills, involving one or
   more of the 299 substances, will occur annually.

Ocean Disposal

o  All interim Ocean Disposal Permits are to be
   phased out by the end of 1981, by regulation.
   All dumping of harmful sewage sludge is to stop
   by the end of 1981, by statute.

Dredge and Fill

o  Transfer of Section 404 Dredge and Fill Program
   responsibility to qualified States will begin in
   FY 80 and increase in FY 81.  Approvals will  remain
   low until later years  (reflecting both a waiting

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                         - 93  -

        period while EPA  finalizes regulations and the
        lead time for States to develop their programs),
        but EPA will be heavily involved in assisting
        interested States in program development.

     o  The total Dredge  and Fill permit load will
        increase gradually from the current level as
        EPA enforcement activities increase.  This change
        results from better surveillance methods and more
        citizen participation and increasing attention to
        the total acreage and stream mileage being actually
        regulated.

     Water Quality Management

     o  Funding of continuing planning will be limited to
        those areas in which substantial implementation of
        the initial approved plan is taking place.

     o  Funds will be available for continuing planning
        under Section 208 in FY 81 with emphasis on com-
        pletion of planning in high priority problem areas.

     Permits Issuance

     The FY 80/81 Guidance is premised on three major
     assumptions:

     o  FY 80/81 priorities will be essentially the same
        as in FY 79, that is emphasis is placed on issuing
        and reissuing permits to control major sources
        of industrial and municipal pollution, including
        Federal facilities.

     o  Additional priorities which must be addressed
        within the context of decreasing resources are
        implementation of the permits consolidation
        effort and implementation of the National Pre-
        treatment Program.

     o  Clean Water Act amendments require consideration
        of new variances  such as the Section 301 (i)
        municipal time extension, the Section 301 (g)
        water quality variance,  and the Section 301(h)
        marine waiver.

Media Priorities

Program plans in FY 80/81 will emphasize activities that
are designed to better assess environmental problems, and
to develop and implement programs to solve and prevent
environmental hazards.

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                        - 94 -

Essential to an efficient pollution control program is
the ability:

     o  To identify potentially harmful pollutants;

     o  To assess the effects of levels of pollutants on
        aquatic organisms,  other food chain organisms,
        and man,

     o  To assess the transport and fate of pollutants
        in the environment;

     o  To monitor for potential pollution problems; and

     o  To evaluate improvements in water quality.

Much is known about conventional pollutant indicators such
as biological oxygen demand and bacterial counts.  However,
our ability to assess toxic pollution problems is hampered
by the large number of toxic pollutants in the environment
and the necessity of using highly sophisticated and
expensive technology to monitor pollutant levels.  Currently
there is much ongoing work to resolve these problems.

Program plans demonstrate an integrated effort by the Office
of Research and Development and the Office of Water and
Waste Management to improve problem assessment capabilities.

Concurrent with our activities designed to identify and
assess environmental problems,  the Water Quality Program
is aggressively pursuing activities to solve our water
quality problems while limiting environmental impacts to
other media.  Major Water Quality Program thrusts for
1980/81 are in response to the mandate of the Clean Water
Act of 1977.

Program plans represent a coordinated effort by the Office
of Water Program Operations, Office of Water Planning and
Standards and Office of Enforcement, working in concert
with States and localities to:

     o  Control industrial and municipal dischargers of
        pollutants through technology-based controls.

     o  Control nonpoint source pollution and prevent
        and clean up oil and hazardous spills.

     o  Protect sensitive ecological systems such as
        lakes and wetlands.

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                        - 95 -

     o  Utilize Water Quality Standards and environmental
        quality based effluent controls, where necessary,
        to assure protection of public health and
        environment.

     o  Enforce environmental control requirements.

The implementation of these priorities will be characterized
by their integration within the Water Quality Program and
integration with other Agency activities directed at
improving environmental quality.  Information gleaned
from problem assessment activities will be critical  to
the continuing evolution of solutions and strategies.

     Industrial and Municipal Dischargers

     In 1980 and 1981 the control of industrial and
     municipal dischargers of pollutants will remain the
     keystone to water programs control activities.   The
     1980 program will also include additional pollutant
     studies (e.g., "hot spots" analyses) that will  con-
     centrate on selected areas of industry where monitoring
     data indicate high cancer incidence or potential water
     pollution problems would persist after the imple-
     mentation of effluent limitations.  The studies will
     lead to the development and implementation of additional
     controls.   Efforts also will continue in 1980 to
     identify other toxic pollutants and industries  that
     should be addressed in effluent guidelines.

     By 1984, industrial sources of toxic pollutants will
     be required to meet technology-based toxic effluent
     discharge limitations for both direct and indirect
     wastewater  discharges.  This effort entails detailing
     the presence or absence of 65 toxic pollutants  or
     classes of toxic pollutants.  An in-depth economic
     analysis of each industry also must be conducted
     to ensure that regulations are economically achievable
     and equitable.  This program will peak in 1979  and
     1980 and continue through 1981 with final promulgations
     and court defenses.

     Municipal point source control activities are addressed
     principally through the Waste Treatment Facility
     Construction Program.  This program is of major
     importance to reduce water pollution problems resulting
     from conventional pollutants, such as suspended
     solids,  bacteria, and oxygen demanding loads that
     degrade our waters and continue to pose problems to
     public health and the environment.  The long range
     goal of the Construction Grants Program is to eliminate

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                   - 96 -


the municipal discharge of untreated or inadequately
treated pollutants and thereby help restore or
maintain the quality of the Nation's waters.  A
large number of amendments to Title II of the
Clean Water Act created incentives for use of
environmentally justifiable, innovative and
alternative technologies in municipal treatment
systems; established funding for States to assist
them in adopting and managing Construction Grants
Programs; made special considerations for the needs
of small communities; and increased emphasis on water
reuse and recycling, recovery of energy, and confined
disposal of pollutant wastes to prevent their migration
to the water.

Through the passage of the Clean Water Act the Congress
reaffirmed its intention that States have a major and
continuing role in environmental programs.  The year
1980 will mark the start of 3 new era in planning,
implement I:-^ and managing environmental programs at
the Recioncil ana State levels.  State/EPA Agreements
will present consolidated approaches to solving
water supplv, solid waste, and water pollution control
problems.  Tiie integration of these program areas
will be a major step toward the objective of compre-
hensive environmental planning and management.

Activities aimed at integrated management are being
initiated in 1979.  EPA is requiring all States to
develop comprehensive State/EPA Agreements to cover
Clean Water Act programs including consolidation of
Sections 106, 208, 303, and the Clean Lakes provisions
of Section 314.

State/EPA Agreements will be the result of a negotiation
process between each State and its respective EPA
Region.  The Agreements will describe activities that
States and EPA will undertake during the coming year.
An agreement will be the result of an assessment of
the environmental problems faced by an individual
State, development of a long-term strategy to solve
those problems, and a determination of critical steps
to take during the next year.

Each State/EPA Agreement will reflect important decisions
on environmental and programmatic problems, State and
EPA priorities, timing, and responsibilities.  It
also will be a management tool which focuses attention
on the evaluation and accomplishment of major
environmental efforts.

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                    -  97  -

Initial Water Quality Management Planning will be
completed by all States and areawide agencies by
the end of 1979.  The continuing planning effort by
local and State agencies in 1980 will focus on the
highest priority problem areas with special emphasis
on toxics.  The Agency will stress implementation
of the initial plans and require that substantial
implementation occur as a condition for future
funding.

The key change in program management to ensure Section
208 plans are being carried out is the development
of the State/EPA Agreement process.  State imple-
mentation will utilize funds provided under Section 106
Program Grants to accelerate establishment of regulatory
programs and to provide for monitoring to assess the
adequacy of clean-up efforts.

Implementation of the Construction Grants Program
requires integrated Agency and State efforts with a
large delegation of responsibilities to the States.

The program strategy for 1980 recognizes that there are
limited funds available to meet these pollution control
needs and that the funds available must go toward
assisting municipalities in meeting the most critical
needs in the shortest possible time.  Accordingly,
the EPA strategy for 1980-1981 is:  (a) to orient
funding toward meeting the environmental requirements
of the Act through stringent cost-effect review on
a project-by-project basis, and (b) to stress
innovative and alternative approaches to waste
treatment, including emphasis on water and energy
conservation, waste water reuse and recycling of
pollutants,  and small systems.  Funds specifically
earmarked for State delegation under Section 205(g)
of the Act will be directed toward maximizing
State assumption of program activities in the shortest
possible time.  In all cases, State delegation will
be part of an overall agreement that will ensure that
EPA policies and environmental objectives continue to
be met.

EPA will continue to pursue program strategies that
provide sufficient certainty and stability to States
and municipalities to facilitate effective planning
and management at all levels.  The 1980 appropriation
request of $3.8 billion is a critical component of
this management need.

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                   - 98 -

The State Management Assistance Grant Program
authorizes the use of two percent or $400,000,
whichever is greater, of each allotment to cover
the cost of delegation to the States of the
Construction Grants Program and (to the extent that
funds suffice) the National Pollution Discharge
Elimination System  Permit, Dredge and Fill, and
Section 208 Management Programs.  EPA's long-term
goal is to allow the States, rather than EPA, to
assume responsibility for day-to-day management of
Construction Grants activities.  The timing and
extent of delegation to each State depends on the.
State's ability to operate a program that meets the
necessary competency requirements and policy direction
mandated by the law and EPA objectives.  A grant is
given to a State when it can show that it is able to
assume delegated responsibility for a substantial
portion of Construction Grants program activities.

Approximately 26 States are expected to receive
State Management Assistance Grants during 1979,
which will allow gradual phase-in of most program
activities as the States staff up and are trained
to accept each task.   Most of the remaining interested
States will have entered into preliminary negotiations
during 1979 leading to a grant in 1980 and 1981.
Resource benefits from this State delegation strategy
should begin to be evident in 1981.

Control of Nonpoint Sources

Nonpoint source pollutants are a continuing cause of
water quality degradation.  A substantial number of
the nation's waterways will continue to fail to meet
their intended uses unless nonpoint source programs
are developed and controls enacted.  Nonpoint
source problems require further identification;
control techniques must be developed and tested;
and cost effective, best management practice
systems designed and demonstrated.  Substantial
efforts will be directed to the identification and
evaluation of these practices both with Agency resources
and in conjunction with other Federal agencies.

It is a priority to continue to develop and assess
methods of controlling urban nonpoint source
pollution and additional methods for controlling
rural nonpoint source pollution.

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Hazardous jLHAJJLs

In 1980, th-2 Agency will ir.vplemcrt :<-G expand its
Spill Prevention ^nd Response Procrara to cove:' not
only oil spills but also the discharge of those
substances determined to be hazardous by EPA.  The
Agency is currently developing and will promulgate
regulations for hazardous substances designations,
removability, harmful quantities, and rat.es of
penalty.  An Environmental Emergency Response Team
has been established to provide immediate on-the-
scene expertise in handling, clean up, and disposal
of most critical oil and hazardous substance spills.

Protection of Ecological Systems

Wetlands

In FY 80 and especially FY 81 the Wetlanls Protection
Program will have a high priority within the Office
of Water and Waste Management.  Section 404 of the
Clean Water Act provides the principal protective tool
and may underpin other non-Federal activities for
protection of wetlands.  EPA shares the responsibility
for implementing Section 404 with the U.S. Army
Corps of Engineers, the U.S. Fish and Wildlife
Service, and in the future, with the States.

A significant increase in Section 404 responsibility
for EPA will occur in 1980 as the Agency provides
a significant degree of the substantive review on
at least the most significant environmental permits,
whether issued by the Corps or the States, and
responds to the variety of new program developments.

Under the 1977 Act, the Corps will continue to allow
dredge and fill material discharge in the traditionally
navigable waters.  States may assume permit respons-
ibility in other waters, if they are qualified.  EPA' s
role in this process is large and includes respons-
ibility for issuing regulations, establishing State
program approval criteria, reviewing and acting upon
applications from States, and providing continuing
oversight for both States and the Corps permit programs.

EPA is currently drafting two sets of regulations
for State assumption of permitting responsibilities.
The regulations are for program approval and State
program operations.

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                        - 100 -
     Lake Protection
     The Clean Lakes Program is authorized by Section 314
     of rfche Clean Water Act.   The program provides grants
     to States for:  identification and classification
     according to euthrophic condition of all property
     around freshwater lakes; procedures, processes,  and
     methods to control sources of pollution; and pro-
     cedures for restoration.

     Program plans demonstrate continual efforts directed
     at efficient control of lake pollution problems  and
     activities designed for lake quality enhancement.

     Water Quality Standards and Environmental Quality
     Based Effluent ControIsT

     Water qual:hv standards are a means for States to
     protect the ambient quality of their waters.  Section
     303 of the Clean Water Act requires States to review
     Water Quality Standards every three years and to
     submit new and revised standards to the Administrator
     for approval.  If standards are unacceptable to  the
     Administrator, the EPA can promulgate State standards
     where States fail to comply with Federal regulation.

     At present, many State standards do not contain
     criteria for toxic substances.  Even where States do
     have certain criteria for toxics, NPDES permits
     frequently are not written to meet such criteria.
     In FY 80/81 EPA is considering revising the Federal
     standards regulations so that States may be required
     to adopt numerical criteria for a minimum list of
     toxic substances.  The Office of Water Planning  and
     Standards is further attempting to remedy this
     through technical assistance on wasteload allocation
     procedures and methods of implementing bioassay
     criteria in Water Quality Standards.  An additional
     priority here is to develop a strategy for the use
     of Section 307(a) toxic effluent limits where BAT
     requirements are sufficient to protect public health
     and environment.

Enforcement

Enforcement activities play a central role in implementing
an effective pollution control program.  Toxic pollutant
and hazardous materials enforcement wll be pursued through
enforcing reissued permits, bioassay inspections, pre-
treatment requirements, Section 404 requirements, Section 311

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                         - 101  -

hazardous substances requirements, and use of Section 504
emergency powers.  In 1980, the Permit Program will initiate
its issuance of permits based on promulgated effluent
guidelines for toxic pollutants.

Implementation of the pretreatment requirements demon-
strates the importance of >'working liaison between the EPA
and localities.  The Clean Water Act of 1979 requires that
POTW's must develop programs to enforce the EPA's National
Pretreatment Requirements.  Following the 1978 promulgation
of Federal pretreatment guidelines, the program will begin
to shift in 1979 and 1980 to the local level.  Toxic
pollutant controls will proceed through incorporating
pretreatment requirements in municipal permits for control
of indirect discharges.  Enforcement resources will be
devoted to the pretreatment programs, consider requests
for modification of pretreatment standards, and modify
municipal permits to incorporate pretreatment requirements.

The Water Quality Program will rru.ke a major initiative
to limit the redundancies of the regulatory process and
to provide for more efficient program management.  In
1980 the Permit Program will work to consolidate National
Pollutant Discharge Elimination System (NPDES) permits
under the Clean Water Act with Hazardous Waste permits
under the Resource Conservation and Recovery Act, and
Underground Injection Control permits under the Safe
Drinking Water Act.  Consolidation of these permit programs
will eliminate duplicative permit issuance reporting
requirements for affected facilities.

Emphasis will continue in 1979 and 1980 on the Municipal
Enforcement Strategy first formulated in 1978.  As with
other water quality programs, this strategy is an attempt
to integrate program activities of the Grants, Enforcement,
and NPDES Permit Compliance Programs, to better coordinate
and reinforce planning and scheduling of municipalities to
meet the goals of the Act.  The principal effort in 1979
and 1980 will be to implement a program of action through-
out EPA and the States, leading to:

     o  Integrated municipal permit and grants schedules;

     o  Compatible information systems;

     o  Internally consistent operating procedures; and

     o  Coordinated grant and enforcement sanctions for
        noncomplying municipalities.

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                         -  102  -
The overall result is expected to be more effective and
expeditious actions toward the compliance of municipalities
with requirements established in the Act.

Permits Issuance

The major objectives of the FY 1980/81 Permits Program
will be to maximize the control of toxic pollutants
through the initiation of the second round permitting
effort and the implementation of the National Pretreatment
Program; to accomplish a major regulatory and management
reform initiative by streamlining the permit process to
allow for consolidated procedures, organization and permit
format; and contribution to the major source enforcement
effort through implementation of the National Enforcement
Strategy.

Under separate cover, OWE will provide more detailed
guidance on integrating permit program priorities
with particular reference to pretreatment activities.

     o  Toxic control through second-round permits -- NPDES
        second-round permits unde"r the Clean Water Act
        will begin to be issued in FY 80 and will be issued
        throughout FY 80/81.  The reissuance of expiring
        permits to these industries, including Federal
        facilities, covered by the NRDe  ;o^oent decree
         ("primary" industries) will be of particular
        importance as it will impose BAT/toxic limitations
        on the significant sources of toxic pollutants.
        Emphasis on permits issuance will be prioritized
        in FY 1980/81 as follows:  major primary industries
        which could be sources of highly toxic substances,
        major secondary industries, remaining  (80%) minor
        primary industries, and minor secondary industries.

     0  Regulatory and management reform through consolidated
        permitting -- EPA is consolidating its permit pro-
        grams, both to simplify administrative steps and
        to facilitate addressing all environmental concerns
        through a single process.  By October  1, 1979,
        EPA will consolidate permit issuing, i.e., permit
        drafting, paper flow and initial point of  contact,
        for NPDES permits; Hazardous Wastes permits;
        Underground Injection Control permits; Ocean
        Dumping permits; Air New Source permits; and other
        permit-like programs in one place in each of its
        Regional Offices.  Regulated facilities will be
        able to submit one application for all water, solid
        and hazardous wastes related permits; go through
        one review; and be issued one permit.

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                         -  103  -

     o  Toxic control through pretreatment — The pre-
        treatmentprogram is expected to take on increasing
        importance in 1980.  Pretreatment activities in
        FY 1980 should be addressed generally according
        to the following priorities:  1) provide assistance
        to States in developing State pretreatment programs
        and approve such programs: 2) review and make
        determinations on requests for local pretreatment
        program approval; 3) develop compliance schedules
        for insertion in NPDES municipal permits requiring
        the development of a local pretreatment program/-
        and 4) work with States and municipalities in
        identifying industrial users subject to categorical
        pretreatment standards as such standards are
        promulgated.

     o  Major source enforcement through implementation of
        the Municipal Strategy — The National Municipal
        Policy and Strategy published in FY 1979 sets forth
        priorities for reissuing expiring major municipal
        permits.   This policy directs that municipalities
        requesting time extensions for compliance with
        secondary treatment requirements (Section 301 (i)
        extensions)  be given priority in permit reissuance.

        The 301 (i) compliance extension is a major
        mechanism for bringing non-complying municipalities
        into compliance with the law thus contributing
        significantly to the Agency's major source enforce-
        ment effort.

Research and Development

Much is known about conventional pollutant indicators such
as biological oxygen demand, and bacterial counts.
However, our ability to assess toxic pollution problems
is hampered by the large number of toxic pollutants in
the environment,  and the necessity of using highly
sophisticated  and expensive technology to monitor pollutant
levels.  Currently there is much work ongoing to resolve
these problems.  Priority activities (not necessarily in
priority order) in 1980/81 include an integrated effort
by the Office of Research and Development and the Office
of Water and Waste Management to:

     o  complete the publication of water quality criteria
        for 65 classes of toxic pollutants, to assess
        impacts of those pollutants on aquatic species
        and human health, and to determine acceptable
        levels,

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                    - 104 -


o  select additional priority pollutants and develop
   criteria,

o  develop wet weather criteria for pollutants to
   account for nonpoint source contributions during
   high flows,

o  add carcinogens and chronically toxic pollutants
   to the hazardous substance list,

o  develop recreational water quality criteria,

o  expand selected water quality predictive models to
   include toxics and sediments in assessing transport
   and fate of pollutants,

o  develop rapid screening tests for characterization
   of toxic pollutants in complex effluent,

o  assess effects of specific pollutants, pollutant
   transformation products and combinations of
   pollutants on marine biota,

o  develop simulation techniques, including microcosms,
   to predict pollutant stress on marine biota and
   ecosystems,

o  develop a simple implementable, technique for
   assessing wetlands transition zones, and
   characterization of productivity of wetlands, as
   a tool for assessing the quality of wetlands,

o  improve solid phase bioassay techniques to test
   toxicity of dredged and fill material,

o  develop broader spectrum and more cost-effective
   methods for screening and quantifying organics in
   water and wastewater with increased emphasis in
   FY 81 on nonvolatile organics,

o  develop more cost effective multi-element and
   chemical specification methods, with emphasis
   in FY 81 on solids,

o  perform multi-media toxic and hazardous material
   problem assessments in local areas in response to
   public health concerns, in absence of State or
   local capabilities,

o  continue study of toxic materials in publicly
   owned treatment works in order to develop compre-
   hensive urban toxic pollutant control strategies.

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                - 105 -

continue development of methodologies to assess
impact of nonpoint source pollution, and perform
nonpoint source assessments,

integrate Agency monitoring efforts for priority
pollutants, including establishing a single
data base system and approved quality assurance,

develop, evaluate, and report on a practical lake
(quality) evaluation index  (LEI) procedure to
assist lake managers in interpreting lake problems
and selecting corrective actions,

assist Regions and States to develop toxic pollutant
monitoring capabilities to support State/EPA
Agreements, toxic wasteload allocations, water
quality standards, permit setting, and permit
compliance monitoring,

continue exploratory research to identify potential
pollutant problems in the future and to develop
potential controls for pollution problems; to
develop technologies that minimize pollution
production.

sludge:  evaluate innovative and alternative
technology projects; improve data on exposures of
organics, metals,  and pathogens from land appli-
cation; develop beneficial uses, including energy
recovery technologies, evaluate detoxification
methods,

small flows/land treatment: demonstrate central
management of onsite systems; extend overland
flow systems to colder climates; evaluate toxics
management in land application systems; investigate
higher rate nutrient update systems,

investigate process development for treatment
systems for small communities and combined sewer
overflow management and technology; evaluate
conservation/reuse demonstrations and high rate
biological removal of specific pollutants; and
develop surrogate control parameters,

initiate a major program for development and
demonstration of reuse/recycle technologies and
to reduce intermedia impacts of wastewater
treatment.

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                          - 106 -


                        WATER QUALITY


STATE GUIDANCE

     Construction Grants

         The primary State emphasis for the Construction
     Grants Program in FY 1980 will continue to be the
     negotiation and implementation of State delegation
     agreements under Section 205(g).  Delegation agree-
     ments will be reached only when EPA is certain that
     the recipient State has the necessary competency and
     policy direction to be responsible for day-to-day
     and project-by-project management of the program.
     Currently, most States have either received a Section
     205(g) grant or are involved in negotiations leading
     to such a grant.  In all the cases, the initial grant
     defines only the beginning of a phase-in period that
     lasts from two to four years.   By FY 1980, most States
     will be heavily involved in staffing and training
     activities related to the delegation.

         The Construction Grants Program in FY 1980 and
     FY 1981 will put principal emphasis on program imple-
     mentation and management; few (if any) legislative
     changes are anticipated.   Although the overall goal
     of the program remains intact, the new thrusts arising
     from the Clean Water Act of 1977 will significantly
     alter EPA's management strategy.  The highest manage-
     ment priority effort in the near term is to shift the
     program toward decentralized management, with State
     delegation and use of Corps of Engineers resources
     receiving maximum emphasis.  Effective management in
     this decentralized environment will require develop-
     ment of improved program management systems, and much
     of the FY 1980 effort should concentrate in this area.
     Effective management, in this context, will include
     the following major components:

         o    Full implementation of the 1977 Amendments
              and new initiatives,  with primary emphasis
              on environmental managemet, sound program
              planning, and project integrity.  Particular
              attention must be given to the facility
              planning area, where most of the key environ-
              mental decisions are made.  Obligation goals
              and delegation strategies are to be developed
              within this primary emphasis.

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                     - 107  -


    o    Efficient utilization of available EPA, State,
         and Corps resources to ensure maximum produc-
         tivity for the effort expended.  Delegation
         to States and use of Corps resources are to
         be pursued to the maximum extent possible
         (with environmental and fiscal integrity,
         however, continuing to be limiting factors).

    o    Full implementation through the State Priority
         System of long term project planning mech-
         anisms at the State and Federal levels, to
         ensure that use of State allotments is level
         over time, and not constrained by inadequate
         projects ready for funding during any given
         time period.  The purpose of the priority
         system is to provide first funding for those
         projects with the most critical pollution
         control need.   The Agency is to actively
         encourage State Agencies to fund those projects
         most necessary for meeting the enforceable
         requirements of the Act.

    o    Effective use of newly developed management
         tools — such as the Municipal Strategy, outlay
         management system, the Regional Construction
         Grants Management System (PCGMS), the
         Construction Grants Resource Needs Model, and
         the priority system -- to improve coordination
         of program effort among programs and Agencies.
         The State/EPA Agreement will provide the
         environmental and management structure for
         coordinating activities at the State level.

    o    Implementation of program guidance on opera-
         tional requirements during all three steps
         of the grants program.

For purposes of FY 1980/1981 program planning,  the
following program assumptions are to be adhered to:

    o    The appropriation will be $3.8 billion in
         FY 1980 (available by October 1,  1979) and
         $4 billion in FY 1981,  with the allotment
         formula for both years the same as in
         FY 1979.

    o    The Congress will enact a one-year extension
         of the allotment period for the FY 1978 funds,
         increasing the period of availability to three
         years for all  appropriations authorized in the
         Clean Water Act.

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                       -  108  -

    o    The Corps agreement for Step 3 management,
         now scheduled to end during FY 1981, will
         be extended for three years, to allow use
         of Corps resources as long as necessary.

    o    The limitation on State use of funds under
         delegation (Section 205(g)) of 2% of each
         appropriation will continue but will be
         available for obligation for three (not two)
         years.

Operations and Maintenance

    Operational requirements are to receive high priority
in FY 1980.  Beginning in FY 1979 and continuing through
FY 1980, EPA will be developing a series of guidance
packages to clarify operational requirements of the
construction grants program.   The States should ensure
that construction grants are not closed-out until there
is acceptable evidence that POTWs are capable of being
operated reliably at levels set forth by their NPDES
discharge requirements.  Increased effort should also be
directed at identifying existing POTWs that do not
comply with NPDES permit requirements and conducting
performance evaluations when needed.

    Specific State priorities include:

    o    Implement policy guidance (issued during FY
         1979) and (1) use of operational checklists;
         (2) operational reviews of facility plans and
         P&S and (3) conditioning Step 3 grants or
         grantee compliance with plans of operation
         schedules.

    o    V7ork with EPA to use grant sanctions as
         necessary t,o ensure grantee response to
         operational requirements and to ensure
         grantee commitment to adequate O&M for
         completed projects.
    o    Conduct O&M inspections and follow-up inspec-
         tions, as necessary, before close-out of the
         Step 3 grant.

    o    Conduct one-year O&M inspections on closed-
         out projects to verify performance and/or
         flag problems.

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                       -  109  -


Water Quality Training

    The States and municipalties have the responsibility
for developing balanced programs of water quality
training.  Programs should include analysis of workforce
and training needs and development of training resources
supporting Section 205 program delegaitons and POTW
operations.

    States should identify gaps where private sector
and institutional training resources are inadequate or
not available to achieve program objectives.  Federal
resources and assistance to fill these gaps should be
requested in the areas of instructor training and
operational  technology development.

    State and local workforce development and training
activities should include:

    o    Assessment of staffing and training needs to
         implement delegated Section 205 programs.

    o    Conduct of Water Quality Training programs.

    o    Requests for NTOTC assistance for training
         courses, course packages, and instructor
         training to fill needs unmet with State or
         private resources for Section 205 program
         delegation and POTW personnel training
         programs.

    o    Assessment of POTW staffing and training
         needs to meet performance requirements.

    o    Conduct of POTW operator training and certi-
         fication programs to meet identified needs.

    o    Development of Section 109(b) State Training
         Centers and programs.

    o    Development of State Training Coordinating
         Committees.

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                       -  110  -
Water Quality Management

    Management

    o    Manage Statewide programs and oversee the
         areawide programs to bring about implemen-
         tation of certified and approved WQM plans.

    o    Complete State certification requirements
         for all initial plans.

    o    Initiate action to change the designation
         status of areawide planning agencies where
         implementation of the plan is not occurring
         or where other evidence of capability is
         lacking.

    o    With the areawide agencies, address more
         carefully the financial and fiscal impli-
         cations of WQM plan alternatives.  State
         and areawide agency work plans must include
         adequate resources to assess the social,
         economic, and environmental impacts of
         proposed plans to ensure cost-effective
         solutions to nonpoint and point source
         problems.

    o    As appropriate, delegate authority for
         planning activities and pass funds through
         to areawide or local agencies.

    o    With the Regional Offices, fully develop the
         WQM portions of the FY 81 State/EPA Agree-
         ments, which will cover not only Water
         Quality programs, but also Solid Waste and
         Drinking Water Programs; fully develop five-
         year strategies and water quality problem
         assessments on which to base WQM aspects of
         the Agreements.

    o    Assess the quality of the State's publicly
         owned freshwater lakes.

    o    Provide for, encourage, and assist public
         participation in all State activities,
         consistent with 40 CFR Parts 25 and 35.

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                   -  Ill  -
o    Provide continuing evalution of designated
     management agencies, especially those respon-
     sible for national priority problem areas and
     implementation of regulatory programs.

o    Review proposed Construction Grants awards and
     NPDES permits for consistency with certified
     and approved WQM plans.

o    Complete 1975-78 triennial review of Water
     Quality Standards.

o    Develop comprehensive annual Water Quality
     Management work plans and State/EPA Agreements
     that include a State's program for lake quality
     enhancement as an integral part of a State's
     water quality planning strategy.  Indicate
     fiscal resources required to address State lake
     restoration needs on a project priority basis.

o    Ensure that implementation of approved WQM
     plans occurs through management of State agency
     control grants (Section 106), agricultural
     controls costs sharing (208(j)), Clean Lakes
     (Section 314)  grants, and the commitment of
     State and local funds.

o    Work to promote the development of self-sus-
     taining State, areawide,  and local institutions
     capable of maintaining a  continuing planning
     process.

o    With the areawide agencies, emphasize the
     identified national priorities during work
     plan development;  that is, urban storm runoff,
     AWT review (especially regarding Water Quality
     Standards, wasteload allocations, stream
     classification,  and effluent requirements),
     agricultural runoff,  ground water management,
     and septic system management.

o    Emphasize, with the areawide agencies, the
     importance of  water conservation and ground-
     water protection in the development and
     implementation of WQM programs.

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                 - 112 -

o    Document project planning,  management, and
     implementation needs for a five-year period
     (FY 81-85) to enable Headquarters to set
     national priorities based on needs, plan
     future funding requests, assist the States
     with management resources,  and develop policies
     on the optimal use of 106,  208, and 314 funds.
     The States should document their needs, and
     update them annually in the five-year strategy
     update.

o    Promptly certify all completed portions of
     State or areawide WOM plans addressing
     agricultural pollution so that the control
     measures (BMP's) identified can be eligible
     for cost-sharing under the Rural Clean Water
     Program (RCWP) (208(j)) administered by USDA.

o    Develop work programs for continuing funding
     under Section 208 which contain measureable
     outputs leading to technically, politically,
     and financially implementable solutions for
     identified high-priority problem areas.

o    Integrate WQS strategies and general program
     activities into State/EPA Agreements.

o    Review NPDES permits and Area/State Water
     Quality Management Programs.

o    Begin review of WQS for the next mandated
     triennial review with special emphasis on
     possible inclusion of toxic criteria and
     general upgrading of stream uses to achieve
     the goals of the Act.

o    Participate in the development of revised
     Federal regulations on WQS (40 CFR 130.7)
     by commenting on draft Federal proposals.

o    Identify the need for additional policy
     guidance on specific problem areas or
     program-related research and develop-
     ment needs.

o    Review NPDES permits, AWT projects, and Water
     Quality Management Plans to ensure achievement
     of, or implementation of Water Quality Standards
     or as a mechanism to identify future needs in
     WOS.

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                  - 113  -


o    Participate in the development of State/EPA
     Agreements by ensuring the program strategy,
     integration with other programs, and proce-
     dures for adding to or revising WQS are
     fully understood and are operational.

o    Review all stream and criteria variances
     with a view towards moving variances and
     upgrading water quality to protect 1983 goal
     uses.

o    Based on EPA criteria and guidance, carefully
     selected State and areawide WQM agencies will
     conduct AWT planning on prototype projects
     with grants awarded in FY 79 to evaluate
     lower-cost alternatives to AWT.  These agencies
     will concentrate on "Up-front" work related to
     facility planning, such as Water Quality
     Standards issues, wasteload allocations, and
     size and location of treatment works.

o    Selected State or areawide agencies should
     receive funds to develop comprehensive
     pretreatment programs in FY 80 in accordance
     with 40 CFR 403.

o   Selected State or areawide agencies should
    receive funds to initiate major groundwater
    studies for national policy formulation and
    as examples for an aquifer designation/ground
    water protection program.

106 Grants

o    States must have adequate  504(b) authority
     and must develop contingency plans for environ-
     mental emergencies under Section 504(b)(7).
     The States must also prepare legislation
     providing appropriate contingency funding.

o    Based on State/EPA Agreements and completed
     205(g) delegation agreements, States should
     renrogram funds among highest priority
     activities identified in the Agreements,
     especially hazardous and toxic materials
     monitoring,  spill prevention, implementation
     of WQM plans, and support to State compliance
     and enforcement activities.

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                 - 114 -


208 Grants

o    Direct Section 208 grants in FY 80 soley to
     nonpoint source control activities.

o    Through State  RCV7P committees, effectively
     manage the allocation of funds to approved
     projects and oversee the implementation of
     BMP's in the areas selected.

o    With the areawide planning agencies, develop
     a process for  upgrading facility portions of
     certified/approved WQM plans, especially with
     respect to population and economic projections,
     service area and capacities.

o    Additional States should develop regulatory
     programs for nonpoint source pollution and
     septic system  management in FY 80.

o    Seven States or areawide agencies should
     conduct MIP's  (model implementation projects)
     for agricultural runoff; 12-15 new MIP's will
     be chosen from State nominations and initiated
     in FY 80.

o    States with authority to administer section
     404 permit programs should develop Statewide
     208 Dredge and Fill regulatory programs,
     consistent with EPA priorities and guidance.

Clean Lakes Grants

For those States choosing to participate in the
EPA Clean Lakes program,  priorities will be to:

o    Assist local units of government in under-
     standing lake  water quality problems, defining
     actions required to control lake pollution and
     enhance lake quality, and develop appropriate
     plans and management procedures to implement
     effective lake protection and restoration
     programs.

o    Prepare and/or review and submit to the EPA
     Regional Administrator completed proposals for
     grants assistance pursuant to the technical and
     administrative requirements under 40 CFR Part
     35.16000.

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                  - 115 -
o    Properly monitor and manage awarded Clean
     Lakes grant projects to meet program objec-
     tives and project milestones.

State activities are expected to include the
following:

o    Complete by January 1,  1982, a classification,
     according to trophic condition, of their
     publicly owned freshwater lakes that are in
     need of protection or restoration.  Funding
     and guidance is made available by EPA for
     these purposes through Federal Register notice
     (43 FR 29617, July 10,  1978).  This action is
     required pursuant to 40 CFR Part 35.1630.

o    Identify and prioritize Clean Lake project
     requirements (both phase 1 and phase 2 grants)
     on a fiscal year basis and include this ranking
     of Clean Lakes programs needs in the annual
     State Water Quality Management work plan and
     State/EPA Agreement that is submitted to the
     Regional Administrator.  Criteria are stipu-
     lated in the Regulations (40 CFR Part 35.1600)
     to assist States in establishing priorities
     and these should be followed.  The specific
     rationale, or any changes in an established
     rationale, used by a State in presenting their
     final project priorities must be included in
     the annual work plan.  Specific project work
     statements should be developed and proposed in
     a manner that will best implement the approved
     State Water Quality Managment Strategy and the
     provisions of the State/EPA Agreement.  A State
     funding priority must be included in any grant
     application submitted to EPA or the application
     will be returned to the State.

o    States should discuss each project proposal
     development, both phase 1 and phase 2 grants,
     on a continuing basis with both EPA Regional
     program coordinators and the local units of
     government, if they initiated project develop-
     ment, to ensure all regulatory requirements,
     both technical and administrative, have been
     met.  Also, in the preparation of the more
     complex project applications, project site
     meetings (at least one) should be conducted
     among all concerned parties.

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                       - 116  -

    o    States must manage projects, or ensure that
         they are managed, to make sure that all grant
         requirements are  being met technically and on
         time in conformance with a project's milestone
         schedule.  A continuing oral communication
         should be developed between the State (or
         grantee) and the  EPA Regional project officer
         so that necessary corrections to a project's
         scope of work can be made in a timely and
         effective manner.  Water quality monitoring
         is an essential part of all awarded projects,
         and States must make a deliberate effort to
         ensure essential  and effective monitoring is
         maintained.  All  monitoring should conform
         to EPA standard procedures.  States should
         carefully review all monitored data for its
         accuracy before it is reported to EPA according
         to established EPA quality assurance procedures.
         The water quality data should be entered into
         STORET on a quarterly basis and be used not
         only to evaluate  project effectiveness, but
         also to assess the overall status of each
         State's ambient water quality pursuant to
         Section 305(b) of the Clean Water Act.

    o    Each State, at the conclusion of implemented
         Clean Lakes projects, should review the water
         quality condition of the project lake and
         adjust, if necessary, the State water quality
         standards appropriate to the lake to reflect
         the improved water quality and water use.

    o    Develop 404 programs and submit for approval.

    o    Initiate or improve existing wetlands regulatory
         programs.

    o    Improve 401 certification process.

    o    Develop, or improve, monitoring of Dredge and
         Fill activities.

Water Quality Monitoring and Analysis

In Water Quality Monitoring, the following State
priorities and guidance apply:

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                      - 117 -


Implementation of the Basic Water Monitoring Program
(Basic Program)

    o    In FY 80 the States should assume full respon-
         sibility for the Basic Program.   The Regions
         and States should update the implementation
         strategy and monitoring schedules.  Since the
         Basic Program must remain consistent with EPA
         program emphasis, the States should expect
         reasonable modifications to the  program.

    o    In FY 80,  a complete State national ambient
         monitoring station network should be operating
         following  the criteria outlined  in the Basic
         Program.  It is important that each Region
         work closely with the States to  ensure that
         these stations are operated properly and  to
         stress  the need to report data in STORET-
         compatible form.

    o    In FY 80,  the States should again emphasize
         intensive  surveys conducted under the Basic
         Program.  The States should also work closely
         with the areawide planning agencies to conduct
         intensive  surveys that will meet their needs.
         It is important that an abstract be prepared
         for each intensive survey to be  maintained in
         the Region with a copy transmitted to Head-
         quarters.   Expanded Basic Program intensive
         survey  guidance will be issued in FY 79.

    The States should place a stronger emphasis on
    intensive surveys in FY 80 in order to meet the
    following needs:

    o    Following  a new Congressionl resolution,  all
         major AWT  decisions will require a strong
         technical  justification in FY 80 before they
         can be  approved by the Administrator.  The
         States  should,  therefore, improve their
         technical  capabilities for conducting waste-
         load allocations in establishing other water
         quality-based controls.

    o    Technically sound environmental  data on an
         area-by-area basis will be required to develop
         strategies for toxic and non toxic pollutant
         controls (including WLAs) in geographic areas
         where BAT  and BPWTT will not be  adequate  to
         meet water quality goals, and where national-

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                      - 118 -


         level Section 307(a)(2) or other controls are
         not available or are inappropriate.  Biological
         and non-biological data are needed to identify
         these areas to determine relative importance
         and controllability of various sources, and
         to recommend control strategies.  The problem
         assessments associated with this activity
         should be coordinated with Headquarters multi-
         media studies and studies to determine the
         effects of specific effluent levels (dilution
         studies).  Headquarters will continue to work
         with the Regions and States to help identify
         toxic "hot spot" areas.

         Since they provide a much broader picture of
         causes and effects, intensive surveys should
         be used by State programs to address multi-
         media, multi-source problems, e.g., control of
         hazardous waste disposal sites under RCRA and
         its impact on surface and groundwater quality,
         the effects of BAT on drinking water quality,
         etc.  Since a primary objective of this
         Guidance is to protect public health and
         sensitive aquatic ecosystems, the State should
         emphasize biological monitoring as part of
         their intensive surveys.
Quality Assurance

    o    in FY 80, conformance with the Agency's Quality
         Assurance Policy and Management Plan will be
         mandatory.  In implementing water monitoring
         program priorities, the States and the areawide
         Water Quality Management agencies must ensure
         that each agency and contract laboratory is
         carrying out data collection, sample analysis,
         and data reporting activities in strict
         accordance with EPA's Quality Assurance Plan.

Section 305(b) Report

    o    In FY 80, the States should follow the expanded
         Section 305(b) guidance issue in FY 79.  The
         States are also encouraged to work through the
         Section 305(b) process to report, by stream
         reach or segment, all known ecosystem changes
         such as the disappearance or reappearance of
         indigenous populations of biological organisms.
         This information, with additional information
         collected through Headquarters, will place the
         Agncy in a better positin to report on the
         total effects of existing pollution controls.

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                       - 119  -
Water Quality Enforcement
         For FY 80, the highest program priority will
         continue to be initiation of enforcement actions
         in response to emergency situations involving
         substantial threats to public health and
         safety.

         Every effort must be made during FY 80 to
         resolve all pendng enforcement referral cases
         against municipal and nonmunicipal permittees
         in violation of the July 1, 1977 deadline.  All
         case referrals are to be made by the end of FY
         1979.

         States must ensure that major municipal and
         nonmunicipal facilities, including Federal
         facilities, maintain compliance with CWA
         Statutory requirements.  It must also be
         ensured through effective compliance monitor-
         ing and inspection programs and approriate
         follow-up enforcement actions, that municipal
         and nonmunicipal permittees maintain continuous
         compliance with the requirements of the law.
         Additional attention should be given in FY 80
         to planning for and conducting a DMR quality
         assurance program and performance audit inspec-
         tions.

         In response to new initiatives in the area
         of toxics and hazardous substances control,
         State programs must begin to develop plans for
         implementing compliance monitoring inspection
         and enforcement programs to meet pretreatment,
         hazardous substances and "second round" permit
         toxic requirements.

         Efforts during FY 80 must also include plans
         to initiate and/or maintain all ADP systems
         necessary to (1)  track and manage State com-
         pliance and information to EPA Regional offices
         at specified intervals (i.e., cases referred,
         tried, settled, etc.), including all information
         necessary to carry out the Municipal Enforcement
         Strategy (State reporting requirements/comments
         attached.)

         States must ensure compliance by Federal
         facilities with State environmental require-
         ments.

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                      - 120  -


Water Enforcement - Permits Issuance

    o    NPDES State activities in FY 1980 should follow
         the priorities established for Regional Offices
         in FY 1980.  Emphasis should be placed on
         issuing BAT/toxic permits to industrial sources
         in the primary industries.  In addition,
         resources should be devoted to reissuing major
         expiring municipal permits to include 301(i)
         determinations on municipal time extensions,
         where appropriate, and the compliance schedules
         for the development of pretreatment programs,
         where appropriate.  The major change in NPDES
         State program requirements between FY 79 and 80
         will be an increased emphasis on pretreatment
         activities.  Those NPDES States which need
         legislative changes in order to comply with
         the pretreatment requirements set forth in the
         Clean Water Act and associated regulations must
         apply for State pretreatment program approval
         in FY 1980.  Those NPDES States which received
         pretreatment program approval in FY 1979 should
         devote FY 1980 resources to developing compliance
         schedules for municipal permittees required to
         develop pretreatment programs, assisting these
         municipal permittees in developing approvable
         programs in accordance with the compliance
         schedule, and making determinations on whether
         to approve or deny local pretreatment programs.
         In addition, States with approved pretreatment
         programs should provide resources to monitor
         compliance by industrial users not subject to
         POTW control to ensure that such users are in
         compliance with any Federal categorical pretreat-
         ment standards with compliance dates in FY 80
         or earlier.

    o    The Clean Water Act amendments of 1977 removed
         any prohibition on States issuing permits to
         Federal facilities.  Several States have made
         the necessary changes in their approved programs
         to enable them to permit Federal facilities.
         Remaining approved States are encouraged to work
         with EPA to clarify their authority in this
         area so that they may begin permitting Federal
         facilities.

    o    NPDES States should set aside or establish
         resources to complete high priority, presently
         outstanding Section 316(a) and (b) requests
         where environmental benefits are most likely
         to be realized.

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                               - 121 -


WATER ENFORCEMENT

Planned State Program Accomplishments

1.  Number of compliance sampling inspections of major municipal
permittees.   (commitment - quarterly)

2.  Number of compliance sampling inspections of major nonmunici-
pal permittees.   (commitment - quarterly)

3.  Number of compliance evaluation inspections of major permittees,
(commitment - quarterly)

4.  Number of compliance evaluation inspections of major nonpermit-
tees.   (commitment - quarterly)

5.  Number of compliance sampling inspections conducted using
biomonitoring screening for toxic substances.   (commitment -
quarterly)

6.  Number of compliance sampling inspections for toxic substances.
(commitment - quarterly)

7.  Number of performance audit inspections of major municipal
permittees.   (commitment - quarterly)

8.  Number of performance audit inspections of major nonmunicipal
permittees.   (commitment - quarterly)

9.  Number of compliance evaluation inspections conducted for DMR
QA followup.  (commitment - quarterly)

10. Number of NPDES AOs issued.  (commitment - quarterly)

11. Average amount of time (days) it will take to respond to
major NPDES permit violations.   (commitment - quarterly)

12. Number of major municipal permittees not in compliance
with schedule requirements.   (commitment - quarterly)

13. Number of major municipal permittees not in compliance
with effluent requirements.   (commitment - quarterly)

14. Number of major nonmunicipal permittees not in compliance
with schedule requirements.   (commitment - quarterly)

15. Number of major nonmunicipal permittees not in compliance
with effluent requirements.   (commitment - quarterly)

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                               - 122 -


16.  Number of municipal NPDES violations referred by State to
State Attorney General.  (commitment - quarterly)

17.  Number of nonmunicipal NPDES violations referred by State to
State Attorney General.  (commitment - quarterly)

18.  Number of responses to emergency situations involving
substantial threats to public health and safety.   (reporting
requirement - quarterly)

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                               - 123 -
PERMIT ISSUANCE

 PLANNED STATE PROGRAM ACCOMPLISHMENTS

 1.   Number  of major  permits  in "primary industries"  reissued or
 extended.

 2.   Number  of major  permits  in "secondary industries reissued.

 3.   Number  of major  funded POTW permits issued or  reissued,  (not
 301(i)  modifications).

 4.   Number  of expiring  major  municipal  permits modified to
 incorporate compliance  schedule time  extensions pursuant to
 section 301(i).

 5.   Number  of municipal  POTW  pretreatment programs developed
 and/or  approved.

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DRINKING WATER STATE GUIDANCE

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                        DRINKING WATER


MEDIA OVERVIEW

     The goal of the drinking water program is to protect
the public health by assuring the safety of the drinking
water.

     This is primarily the responsibility of State and local
governments.  However, Congress has determined that the
Federal Government should share in this responsibility by
assisting, reinforcing, and setting standards for State and
local efforts.

     The Safe Drinking Water Act requires (1)  primary health
related drinking water regulations requisite to protect the
public health,  (2) public water systems supervision programs
(PWS) to assure compliance with the regulations, (3) under-
ground injection control programs (UIC) to help protect
underground sources of drinking water, and (4) the provision
of emergency assistance.  The Act envisioned that the States
would have primary enforcement responsibility for both the
PWS and UIC programs.  Moreover, the Act was designed to
encourage voluntary compliance with the regulations.

     The program activities will focus on implementation of
the primary drinking water regulations in non-primacy States
and on Indian lands, assistance on the implementation of the
trihalomethane and synthetic organics regulations;  maintaining
a strong management program in primacy States to assure
primacy implementation; continuing efforts to encourage the
remaining States to achieve primacy; emergency assistance;
financial assistance to States;  research, development and
implementation of additional regulations to control other
contaminants in drinking water;  issuance of variances and
exemptions;  implementation of a program to protect under-
ground sources of drinking water; the initiation of enforce-
ment actions in recalcitrant cases to ensure compliance;
review of sole source aquifer petitions; implementation of
an integrated ground-water policy and strategy; implementa-
tion of State/EPA agreements, permitting and enforcement
guidance for the UIC program, legal strategies for Regional
and State overview programs, providing legal and adminis-
trative support in initiating formal enforcement actions,
issuing UIC permits, providing technical and legal  support
in response to emergency actions.

Planning Assumptions

     The planning and operating guidance for FY 1980 is
based upon the following assumptions:

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                              -  128  -

          o    Currently proposed organic regulations
               will be promulgated in  Summer 1979.
          o    Revised drinking  water  regulations will
               be proposed in early FY 1980.
          o    UIC regulations will promulgated by
               January,  1980.
          o    By FY 1981, all 57 States will be
               listed as requiring underground
               injection control programs.   They will
               then become eligible for grants.  The
               following list shows for each year,  the
               number of States  first  becoming eligible
               in that year.

                 - FY 1979 -  23  States listed.
                 - FY 1980 -  18  States listed.
                 - FY 1981 -  16  States listed.

          o    Consolidated permit regulations will
               be in effect in FY 1980.
          o    EPA will utilize  the grant allocations
               for underground water source protection
               of listed States  (1)  that do not apply
               for grants or  (2) that  indicate that they
               will not assume primacy for the UIC
               program.
          o    Sole/principal Source Aquifer  (1424(e))
               regulations will  be promulgated in Spring,
               1979.
          o    In FY 1980, EPA will implement public water
               systems supervision programs in 12 States:
               Indiana,  Pennsylvania,  Oregon, District of
               Columbia, South Dakota, Wyoming, Illinois,
               North Carolina, Vermont, Utah, American
               Samoa, Northern Marianas.
          o    A legislative  amendment extending the
               compliance schedule for exemptions will
               be adopted.

     These assumptions represent the best projections
based upon information currently available.

Media Priorities

     The media priorities for FY 1980  and FY 1981 provide
general national guidance on the relative priorities  of  the
program.  These priorities may differ from one Region to
another depending upon each Region's particular situation.
Regions maintain the flexibility to pursue priorities which
satisfy the needs of their unique situations.

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               - 129 -

Priority 1 activities are:

     to initiate enforcement actions in
     response to emergency situations
     involving substantial threats to
     public health.
     to establish maximum contaminant
     levels and/or treatment techniques
     to assure the safety of drinking water.
     to implement the organics regulations.
     to maintain a strong management
     program in primacy States, including
     overview of State enforcement activities.
     to take enforcement actions, as necessary,
     in non-primacy States.
     to develop a coordinated groundwater
     policy and strategy by the third
     quarter of FY 80 which encompasses
     all activities mandated by the Safe
     Drinking Water Act, Resource Conservation
     and Recovery Act, and Clean Water Act.
     to encourage listed States to assume
     primary enforcement responsibility for
     the UIC program.
     to continue efforts to encourage States
     to assume primacy for the PWS program.
     to manage the State grants.
     to respond to emergency situations.
     to pursue enforcement action against
     public or private entities determined
     to be totally or partially responsible
     for emergency situations.
     to implement and enforce a program for
     assuring compliance with the primary
     drinking water regulations in non-primacy
     States and on Indian lands.
     to conduct research into the health
     effects and treatment of trace organics
     and alternate disinfectants.
     to maximize program effectiveness and
     integration through the consolidated
     permits program, State/EPA agreements,
     etc.

Priority 2 activities are:

     to protect designated sole source aquifers,
     to develop UIC implementation plans on
     Indian lands.
     to provide technical and legal support
     in enforcement actions, as requested,
     in primacy States.

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                              -  130  -

                    to investigate the relationship of
                    inorganic contaminants and asbestos
                    fibers on health.
                    to increase  public awareness and public
                    participation.
                    to provide technical and legal
                    support to States as requested.

          o    Priority 3 activities are:

                    to develop cooperative groundwater
                    research program responsive to
                    program needs.
                    to initiate  enforcement actions in
                    primacy States where a State is unable
                    or fails to  do so.
                    to conduct research on direct and
                    indirect additives.
                    to develop a policy on home water
                    treatment devices.

State Supervision Program Guidance

     In fiscal year (FY)  1980 the State Public Water System
Supervision Program Grants will  total $29.45 million - an
increase of $3.05 million (11.5%) above the FY 1979 amount
of $26.4 million.  The increase  exceeds expected inflationary
rates;  therefore, current activities can generally be
expanded. Specifically, the following increased emphasis, or
new activities, should be emphasized during FY 1980.

          o    Initiate enforcement actions in response to
               emergency situations involving substantial
               threats to public health.
          o    Increase follow-up for systems in non-
               compliance with the State Primary Drinking
               Water Regulations.

                    assure public notification.
                    assure monitoring and reporting
                    of all systems.
                    follow-up enforcement activity
                    shall include compliance assurance
                    for variances and exemptions issued
                    by the State to community water
                    systems.

          o    Maintain primary enforcement responsibility.

                    maintain laboratory certification
                    programs.

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                              - 131 -
                    supply technical assistance with
                    respect to implementation of the non-
                    community public water system program.

          o    For States which have not yet assumed primacy,
               continue efforts to assume program
               responsibility.
          o    Implement the organics regulations.
          o    Initiate activities to meet the requirements
               of the public participation regulations
               and of the guidance issued pursuant to the
               regulations.
          o    Increase surveillance of non-community
               public water systems.
          o    In primacy States, expand compliance assurance
               activities to include non-community water
               systems.
          o    Emphasize State/EPA agreements with respect
               to water supply considerations.
          o    Maintain PWS enforcement activity related
               reporting requirements.

Planned State Program Accomplishments (Public Water System
Program)

     o    Number of PWS variances issued.
     o    Number of PWS exemptions issued.
     o    Number of MCL violations of State primary drinking
          water regulations.
     o    Number of other violations of State primary
          drinking water regulations.
     o    Number of PWS compliance actions initiated
          against MCL violations.
     o    Number of PWS compliance actions initiated
          against monitoring and reporting violations.

State Ground Water Protection Program Guidance

     The major efforts of the groundwater protection program
will be focused on two separate activities.  The States will
be in the process of finalizing the Surface Impoundment
Assessment and beginning the implementation of the Under-
ground Injection Control Program (UIC).   In FY 80, grants
for the UIC program total $7,795,000.  These grants are
available to those States listed by the EPA Administrator as
requiring a UIC program.  However,  those States listed must
implement a program which meets the requirements of the Safe
Drinking Water Act.  The following is specific guidance on
special efforts to be emphasized in order to carry out a
groundwater protection program under the Safe Drinking Water
Act.

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                              -  132  -


          o    Initiate enforcement  actions in response
               to emergency situations involving substantial
               threats to public health.
          o    Finalize Surface  Impoundment Assessment and
               complete report.
          o    State/EPA Agreements  - integrate environmental
               programs through  grant coordination,  permit
               consolidation and Memoranda of Understanding.
          o    Underground Injection Control Program
               Development.

                    Prepare proposed UIC  program description,
                    Obtain legislative authority and
                    verification by  State Attorney General
                    of State's legal authority for a UIC
                    program.
                    Prepare Memoranda of  Agreement with EPA.
                    Solicit public comment (public hearing)
                    on proposed  UIC  program.
                    Request program approval (Governor).

          o    Begin issuing UIC permits.
          o    Compile Injection Well Inventory.
          o    Prepare strategy  for  enforcement actions
               in situations involving violation of UIC
               program requirements.
          o    Develop UIC compliance assurance program
               for implementation in FY 81, incorporating
               data evaluation,  monitoring and inspection
               efforts.
          o    Maintain UIC enforcement related reporting
               requirements.

Planned State Program Accomplishments (Ground Water
Protection Program)

          o    Number of emergency action responses
               relative to investigation of imminent
               and substantial endangerment to public
               health.
          o    Number of permits issued.

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SOLID WASTE STATE GUIDANCE

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                    SOLID WASTE
MEDIA OVERVIEW

     The Solid Waste Media is concerned with the national
management of three Resource Conservation and Recovery Act
 (RCRA) programs:  the Subtitle C (hazardous waste) program/-
the Subtitle D program for the management of wastes not
classified as hazardous; and the Technical Assistance Panels
program, designed to support the two foregoing efforts by
providing implementation assistance.

Media Priorities

     The first priority of the Solid Waste Media is the
national management of the hazardous waste program.  All
Subtitle C regulations are expected to be promulgated by
December 31, 1979, and to become effective in July 1980.
The major hazardous waste activities of the Solid Waste
Media are responding to emergencies (highest priority),
issuing guidance for implementing the regulations, assisting
in the defense of the regulations against court challenges,
authorizing and overseeing State programs, conducting
Federal enforcement activities, and identifying, evaluating
and enforcing against facilities which may pose imminent
hazards (to be referred to as problem sites).

     The second priority is the national management of the
Subtitle D program.  In 1980, high priority activities will
include management of the land disposal site inventory,
State program development and management of grants under the
President's Urban Policy program.

     The third priority is the Technical Assistance Panels
program.

Planning Assumptions

     The Solid Waste Guidance for 1980 is based upon the
1980 President's Budget.  This budget does not include
adequate resources to handle the priority activities listed
earlier.  There are substantial resource shortages in many
areas, but particularly for identifying, evaluating and
enforcing against abandoned or problem hazardous waste
sites.  There are, however, several uncertainties regarding
resources for handling abandoned or problem sites that could
significantly alter this Guidance.   This section will describe
the assumptions used within the limits of the 1980 President's
budget, and will also describe in some detail the uncertainties
that exist regarding resources for solid waste in FY 1980.

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                         - 136  -

Base Level Assumptions

     o    Schedule of Regulations:

                                   Promulgation
     Section of RCRA                   Date

     3001, 3002, 3003, 3004         12/31/79

     3005, 3006                     10/31/79

     4004 and 1008 (a) (3)             07/31/79

     1008 (a) (1)                     01/31/80

     4002(b)                        06/30/79

     405  (Clean Water Act)          08/31/80

     0    FY 1980 Grant Levels;

               Hazardous waste - $18,600,000

               Solid waste - $10,000,000

               Urban Policy program - $13,950,000

                (See Table 1 for State allocations)

     0    Subtitle D grant funding;

                    Declining at a rate of $2 million
                    per year for 5 years

                    To fund high priority activities
                    only  (inventory, State regulatory
                    program, State plan development)

                    No pass-through unless clearly
                    supporting high priority activities

     0    Permitting function will be split in all
          budget documents  (irrespective of Regional
          organization)

                    Abatement and Control will handle
                    technical reviews

                    Enforcement will handle administrative
                    processing and compliance monitoring

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                               -  137  -
                   FY 1981 Stat-.Grant Allocations
                   Subtitle C     Subtitle D
ALA8A.'1A
ALASKA
ARIZONA
ARKANSAS
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
DISTRICT OF COLUMBIA
FLORIDA
GEORGIA
HAWAII
IDAHO
ILLINOIS
INDIANA
IOWA
KANSAS
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASSACHUSETTS
MICHIGAN
MINNESOTA
MISSISSIPPI
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NEW YORK
rJORTH CAROLINA
NORTH DAKOTA
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROL HA
SOUTH DAKOTA
TENNESSEE
TEXAS
UTAH
VERMONT
VIRGINIA
WASHINGTON
WEST VIRGINIA
WISCONSIN
WYOMING
AMERICAN SAMOA
GUAM
PUERTO RICO
NORTHERN MARIANAS
VIRGIN ISLANDS
362,328
160,146
235,848
125,736
1,472,562
183,604
222,084
93,000
93,000
433,414
316,944
93,000
103,044
870,108
572,880
173,724
164,610
322,524
610,080
93,000
253,890
395,994
761 ,856
223,386
127,224
290,160
106,764
93,186
93,000
93,000
553,722
93,000
1,043,088
365,118
93,000
1,015,188
172,794
245,334
1,014,816
121,272
272,862
93,000
478,020
1,855,722
119,040
93,000
237,150
271,932
343,542
353,028
93,000
93,000
93,000
105,276
93,000
93,000
159,100
50,000
81,300
88,800
921 ,300
102,000
140,000
50,000
50,000
313,500
212,000
50,000
50,000
513,400
239,900
130,500
103,800
148,700
167,700
50,000
181,200
262,800
410,000
175,800
102,400
216,000
50,000
68,500
50,000
50,000
331,100
50,000
842,400
234,700
50,000
492,000
118,200
96,600
544,900
50,000
119,700
50,000
181,200
517,200
50,000
50,000
214,700
157,500
80,600
204,100
50,000
50,000
50,000
125,300
50,000
50,000







C D

REGION I 1,018,350 602,800

REGION II 1,795,086 1,348,800

REGION III 2,035,398 1,121,400

REGION IV 2,728,434 1,471,400

REGION V 3.796,446 2,035,200

REGION VI 2.857,332 941,900

REGION VII 721,680 518,800

REGION VIII 693.408 352,000

REGION IX 2,173,410 1,253,600

REGION X 78.0,456 354,100

TOTAL 18,600,000 10,000,000


























TOTAL
18,600,000     10,000,000

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                        - 138 -


     0    Penalty policies, enforcement strategies
          and implementation plans will be prepared
          during FY 1980

     0    No specific funding is provided in 1980
          President's budget for the discovery and
          evaluation of abandoned and problem hazardous
          waste sites

1979 Reprogramming -- Although no specific funds have
been provided in either the 1979 or 1980 budget for the
discovery, evaluation and enforcement activities associated
with abandoned hazardous waste sites, considerable
activity of this type is presently ongoing.  It has
been estimated that approximately 30 workyears of
effort are being expended on this activity, utilizing
Headquarters and Regional solid waste enforcement, and
surveillance and analysis resources.  The effort is not
spread evenly among the Regions, but appears to be
related to the number of problem sites per Region.

     Two enforcement cases related to problem or
abandoned sites have currently been filed, and eight
more are expected within FY 1979.  In the next 18
months, it is anticipated that another 12 to 18 cases
will be evaluated, and remedied either through voluntary
action by the owner or through Federal and/or State
actions, including litigation.  An increase in resources,
estimated at an additional 20 manyears of effort, will
likely be expended on this effort.  This would bring
the total Regional effort on problem abandoned sites to
50 manyears.  It appears that even without official
recognition of this priority charge, the current
reprogrammed resources will continue to function on the
abandoned site problem.  This implies, however, that
resources will be unavailable to implement the regulatory
program.

Request for Supplemental Fund.s — EPA is requesting
supplemental resources of $108.8 million and 113 positions
for FY 1980 to undertake an active program of discovering
and investigating, as well as responding to emergency
actions and conducting enforcement actions concerning
abandoned and inactive hazardous waste facilities that
present an imminent hazard to public health or the
environment.

     The proposed program will have five parts:  discovery,
reconnaissance investigation, full investigation,
enforcement and where essential, emergency action.  The
program will be implemented by the EPA's Regions and,
in fact, by the States wherever possible.  To accomplish

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                         - 139 -

this, EPA has already established a new institutional
structure of national and Regional coordinators and has
issued a change in programmatic priorities that will
result in the reprogramming of approximately 50 workyears
into this program.  Also, EPA is preparing to convene a
three-day workshop to orient the appointed coordinators
and train participating personnel.  Although EPA has
some experience in acting on abandoned/inactive site
incidents, the techniques for investigating cases,
protecting the safety of investigating personnel,
documenting data and preparing cases are still to be
perfected and many of the personnel that will be investigating
and bringing enforcement action on abandoned/inactive
sites will need additional training and experience.

     The discovery of abandoned/inactive sites will
basically involve receiving  (or otherwise obtaining)
and recording leads on suspected sites.  Currently
there is no formal mechanism for the discovery of
problem sites.  Most of the known problem sites have
been identified through informal communications with
States and through citizen complaints.  This portion of
the program will systematize the documentation of
information received from various sources.  It will
also involve several low-cost efforts to search for
undiscovered sites.  The discovery component of the
program will be institutionalized and carried out
throughout the 18 months of the program and thereafter.

     The reconnaissance investigation component of
the program will involve making a preliminary investigation
of those sites identified as suspected problem sites in
the discovery phase of the program.  Supplemental funds
of $1.5 million in FY80 are requested for this work.

     The full investigation component of the program
involves conducting extensive field investigations, in-depth
sampling and analysis, and other related studies on
sites identified by the reconnaissance investigation as
being potential significant hazards.

     It is projected that approximately 300 sites can
and should be investigated over the next 18 months.  At
a cost of 5.5 workyears per site, this workload  (930
workyears) would far exceed the current resource capacity
of EPA and would even exceed EPA's capacity to hire and
train personnel if additional personnel were authorized.
Accordingly, it is proposed to use as many as 30 contractors
under level-of-effort contracts to supplement State and

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                         -  140  -


Regional resources under case-by-case task orders to
conduct full investigations.  There are contractors
available for such an effort.

     It is assumed that 225 sites can be investigated
by the States, but with varying amounts of EPA assistance
from the above-described contracts.  The remaining 75
sites would be fully investigated by EPA also using
contractors.  It is further assumed that all of this
effort would be performed in FY 1980 following discovery
and reconnaissance activities in FY 1979.  Using these
assumptions, the full investigation component of the
program will cost $53.2 million.   To manage the contractual
effort, and provide quality assurance, a limited number
of in-house experts, 43 additional positions and $1.7
million will be required.  Accordingly, supplemental
resources of 43 positions and $54.9 million are requested
for FY 1980.

     The enforcement component of the program will
involve bringing suits to require responsible parties
to take corrective actions.  This phase encompasses the
preparation of legal cases and the additional technical
work and investigations necessary to support such
cases.  It is assumed that following full investigations,
the States will assume responsibility for enforcement
action through State courts in 50 cases, with varying
amounts of EPA assistance, and that EPA will pursue
action on 50 cases under Federal authorities.  Using
workload experience to date in similar enforcement
actions, 60 additional personnel and $2.4 million will
be required in supplemental funding for FY 1980.

     The emergency response component of the program
will involve Federal funding of clean-up actions deemed
necessary to immediately contain extremely hazardous
situations.  This will include action such as the
removal of drums of chemical wastes from navigable
waters and drainages into navigable waters  (e.g.,
Louisville, Kentucky), the segregation and removal of
drums of chemicals that pose a fire or explosion threat
or which are leaking into the environment, and the
temporary containment of subsurface migration of toxic
chemicals through the construction of drains or other
means  (e.g., Love Canal).  These actions will not cover
permanent remedy.  They will be employed where
a responsible party is not available or refuses to take
the emergency action.  Whenever possible, recovery of
costs will be sought from available responsible parties.
Also, enforcement/injunction actions will be concurrently
taken wherever possible.

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                         - 141 -


     Of the projected 300 sites that will be fully
investigated, it is assumed that 20 sites will require
critical emergency response.  At an assumed average
cost of $2 million, $40 million will be required.  It
is proposed that 75 percent of these 20 emergency actions
can be taken under the response authority of Section
311 of the Clean Water Act and that the remainder will
have to be addressed under Section 504 of that Act.
Accordingly, $30 million is requested to supplement the
Section 311 fund and $10 million is requested to fund
the Section 504 authority.  Five additional positions
are requested to manage these clean-up actions which
are very complex and long-term compared to oil and
hazardous materials spills.

     In addition, it is assumed that at least five
sites will require emergency response requiring application
of innovative technology.  The La Bounty site in
Charles City, Iowa, is a good example.  To deal with
these situations, 5 additional positions and $10 million
are requested.

     In summary, 10 positions and $50 million are
requested for emergency response actions.

     Overall, the following supplemental resources are
requested for the proposed program:

                                   FY 1980
Component                        pos     $1,000

Discovery

Reconnaissance Investigation      -       1,50Q

Full Investigation               43      54,900

Enforcement                      60       2,400

Emergency Response               10      50,000
                                III     108,800

     It should be noted that this proposed 18 month
program is designed to address only a small part (300)
of the estimated potential universe of significantly
hazardous abandoned/inactive sites.  Continuing activity
beyond FY 1980, at the same or higher level, is expected,

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                              - 142 -


STATE GUIDANCE

Abatement and Control

     Fiscal Year 1980 will mark the States' initial movement
toward implementing hazardous and non-hazardous waste manage-
ment programs under Subtitles C and D of RCRA.  EPA Regional
Offices and States are required to develop comprehensive
State/EPA Agreements covering these RCRA programs, along
with programs under the Safe Drinking Water Act and Clean
Water Act.  The agreements will replace piece meal environmental
problem-solving with comprehensive environmental planning
and management.  The Office of Solid Waste will issue, in
April, specific guidance outlining the States' responsibilities,
as in past years.  The following is an overview of the RCRA
Guidance.

     States will be urged to seek authorization and begin
implementing hazardous waste programs in FY80.  The regula-
tions to be proposed under 40 CFR Part 123 (Consolidated
State Program Requirements for RCRA, UIC and NPDES) detail
requirements for determining whether a State program is
equivalent to the Federal program and has adequate enforce-
ment provisions.  Authorization will be given to all States
meeting these requirements.  States will also be eligible
for financial assistance for their efforts toward seeking
authorization and implementing their programs.

     Subtitle D encourages the States to develop non-hazardous
waste regulatory programs.  However, RCRA does not mandate a
Federal program or provide Federal enforcement authority
when States do not wish to operate their own program.  In
FY80, financial assistance will be available to assist
States in developing and implementing such programs.  The
need for Federal assistance is expected to decline as State
programs mature, and financial assistance will therefore be
phased out over a five-year period  (FY80 through 84).
Therefore, States must limit use of the funds to highest
priority activities - completion of the disposal site inventory,
development and implementation of State regulatory programs,
and substantial forward progress in development of State
solid waste plans.  Regions should work closely with the
States to help them develop mechanisms to replace the declining
Federal financial assistance.

Subtitle C Activities

     In FY80, most States will continue developing their
hazardous waste management programs.  Their primary activities
will include establishing the necessary legislative and

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                              -  143  -

regulatory structure; conducting the required public partici-
pation activities; taking any other steps necessary to
initiate an equivalent program;  and developing application
packages for authorization.

     Depending on the state of development of individual
programs, States will also begin implementing enabling
legislation and regulations; establishing the necessary
resources to conduct a permit program and operate a manifest
system; and conducting surveillance and enforcement activities.

     States having grant monies  in excess of the amount
needed for regulatory development are urged to undertake
surveys to identify and investigate old hazardous waste
sites which may cause future problems to public health or
the environment.  However, the RCRA grant regulations do not
provide for funding of the actual remedial actions.  Pending
Congressional action to create a superfund, this will remain
a State responsibility.

     In FY80 and 81, States will be eligible for Interim
Authorization and Authorization  under Subtitle C of RCRA.
Although the regulations under 40 CFR Part 123 detail
requirements for Federal hazardous waste program equivalency,
few State programs presently meet these requirements.
Therefore, Interim Authorization provides a grace period
during which existing but inadequate State programs can be
developed to meet the full Authorization requirements.
Interim Authorization will be available for only two years,
beginning six months after promulgation of the Section 3001
regulations.

     Federal funding under Section 3011 will be available
for States to develop and/or implement hazardous waste
management programs.  States which are ineligible for auth-
orization may still be funded to develop a program for
authorization in FY80 and beyond.  Only those States which
totally divorce themselves from  the program will not qualify
for grant funds.  Developmental  activities will receive 100
percent Federal funding, while implementation activities
will be provided 75 percent funding.  Each Regional Adminis-
trator will determine what constitutes a developmental
activity.

     OSW has established mandatory and optional requirements
for the Interim Authorization and Authorization categories.
(These requirements are discussed in detail in the RCRA
Guidance.)  States must work toward the completion of at
least two of the mandatory outputs for funding eligibility
in FY80.   Any or all of the optional outputs may be under-
taken in conjunction with mandatory outputs.  States need

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                              - 144 -


not undertake all mandatory outputs at once,  while the
completion of all mandatory outputs will not disqualify them
from funding of optional outputs.   The appropriate outputs
for individual States will be determined by negotiations
between State and Regional Office staffs.

Subtitle D Activities

     In FY80 and 81, States continue to be eligible for
funding under Subtitle D of RCRA.   The grant requirements
are submission of a work program,  designation by the Governor
of a single State agency to carry out or coordinate distri-
bution of the work program, and allocation of the funds
within the State only to the appropriate agency or agencies.
The specific requirements to be addressed in the work program
are discussed in detail in the RCRA Guidance.  Final work
programs must be submitted to the Regional Administrator by
August 1, 1979, and must comply with the Guidelines for
Development and Implementation of State Solid Waste Manage-
ment Plans which are expected to be promulgated in June
1979.  It is recognized that the Regional Administrator will
need to be flexible with regard to the dates of submission
for the draft and final work program depending on the actual
promulgation date of the guidelines.  Federal funding will
not exceed 75 percent of the total allowable work program
costs, except for inventory activities, for which 100 percent
funding will be provided.

     The three highest priority State activities to be
funded in FY80 under Subtitle D will be to develop and
implement regulatory powers for land disposal, conduct the
disposal site inventory, and to develop State solid waste
plans.  Local and Regional planning and implementation are a
low priority, and will be funded only if maximum progress is
being achieved on the other activities.

     In FY80, States are required to demonstrate their legal
ability to close or upgrade facilities which fail to meet
the RCRA Section 4004 Criteria.  This will include the
development and implementation of regulatory powers  (legisla-
tion, regulations and procedures)  necessary to close or
upgrade open dumps and to prohibit the establishment of new
open dumps.

     The disposal facility inventory, required by RCRA, will
continue in FY80.  In conducting facility evaluations for
the inventory, the States will identify solid waste disposal
facilities; develop a basis for deciding which sites to
evaluate and classify first; collect information necessary
to make classifications; make classifications; notify facility
owners/operators of their facility's classification; and
report this information to EPA Regional Offices.

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                              - 145 -


     OSW will promulgate guidelines for the development and
implementation of State solid waste management plans (Section
4002 (b)) in June 1979.  In FY8Q, States should complete and
move toward submitting an approved State plan by December
1980 (18 months after promulgation of the guidelines),

     The States will continue to participate in the President's
Urban Policy resource recovery program.  Their activities
will include designating applicants as implementing agencies
under Section 4003 of RCRA; reviewing the pre-applications
of grantees; coordinating with Regions and grantees to
ensure consistency with State Plans; and providing input
into the grantees' workscope development.

     The States will continue to provide public participa-
tion in the development of their hazardous and nonhazardous
waste programs, as required in 40 CFR Part 25.

Enforcement

     It is the intent of the Resource Conservation and
Recovery Act that the States implement the Subtitle C require-
ments,  including enforcement, operating under hazardous
waste management programs authorized by the EPA.  EPA will
provide financial and technical assistance to such States in
developing and conducting those programs and will maintain a
general oversight role.  In States without such authorized
hazardous waste management programs, EPA will be responsible
for hazardous waste enforcement functions.

     Program Priorities — In FY 1980 States will be assisted
     and encouraged to develop, implement, and maintain
     hazardous waste enforcement programs having priorities
     parallel to those observed by the Federal program,, in
     addition to any priorities designed to meet specific
     State concerns.  Specifically the States should include
     the following priorities:

          0    Emergency response —- Enforcement actions
               should be initiated in emergency situations
               involving imminent and substantial endanger-
               ment to human health or the environment^

          °    Identification and evaluation of waste disposal
               s_ites -- The States should undertake a program
               to identify and evaluate all hazardous waste
               disposal facilities which may pose an imminent
               hazard to human health or the environment,
               and to take appropriate legal actions.

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                              - 146 -


PROJECTED PROGRAM ACCOMPLISHMENTS - Abatement and Control

Hazardous Waste Management

  *1.     Number of existing permits
  *2.     Number of permit applications received
  *3.     Number of draft permits issued
  *4.     Number of final permits issued
  *5.     Number of permits appealed to Director
  *6.     Number of permits under judicial review
  *7.     Number of draft permits/permit applications
          forwarded to EPA for review
  *8.     Number of appealed permits issued
  *9.     Number of permits suspended, denied, revoked
 *10.     Number of permits modified
 *11.     Number of EPA permit comments refuted/withdrawn
 *12.     Number of facilities suspected or reported as
          not in compliance
 *13.     Number of facilities which were closed or
          ceased operation
 *14.     Number of emergencies (fires, explosions, deaths,
          injuries, and significant discharges, releases,
          or spills)
 *15.     Number of manifests/manifest reports processed
 *16.     Number of international shipments (by receiving
          country)
 *17.     Number of tons of hazardous waste received from
          out-of-state (by sending State)
 *18.     Number of tons of hazardous waste shipped out
          of state  (by receiving State)
 *19.     Number of tons of hazardous waste treated
 *20.     Number of tons of hazardous waste in storage
 *21.     Number of tons of hazardous waste disposed
 *22.     Number of public hearings/meetings held

Solid Waste Management

   1.     State plan submitted to EPA
  *2.     Number of disposal sites:

               to be classified
               in classification process
               classified
*Quarterly and/or annual totals

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                              - 147 -


PROJECTED PROGRAM ACCOMPLISHMENTS - Enforcement

   1.     Number of enforcement actions initiated in
          response to hazardous waste emergencies
   2.     Number of court actions initiated for injunctive
          relief
   3.     Number of inspections conducted of generators
          who store, treat,  or dispose on-site
   4.     Number of inspections conducted of generators
          who store, treat,  or dispose off-site
   5.     Number of inspections conducted of storage,
          treatment, and disposal facilities
   6.     Number of inspections conducted of transporters
   7.     Number of administrative actions or civil
          penalties taken against violators of State laws
   8.     Number of civil actions initiated under State
          law
   9.     Number of criminal actions initiated under State
          law
  10.     Number of violations detected
  11.     Update of inventory file

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TOXIC SUBSTANCES STATE GUIDANCE

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                     TOXIC SUBSTANCES

MEDIA OVERVIEW

Planning Assumptions

     The FY 1980 toxic substances abatement and control'
program activities and outputs are based on assumptions
about resource status and on program activity level.
The significant programmatic assumptions are related
to actions external to the toxic substances program.
The major one is that we will receive 400 premanufacture
notifications annually for review.  We expect that the
Interagency Testing Committee will continue to make
recommendations for priority testing up to the statutory
limit of 50 chemicals.  We are assuming that we will
receive industry substantial risk notifications at the
same rate as up to now.  Requirements for industry
assistance are assumed to remain fairly constant
overall.  We expect that many of the actions the
Agency takes initially will be the subject of petitions
and suits and that this will require significant pro-
gram effort to respond.  We have assumed that section 28
State grant authority and funding authorizations will
not be extended beyond FY 1979 by Congress.  We assume
that imminent hazard actions under TSCA section 7 will
be nonexistent or nearly so.  These assumptions will also
apply to FY 1981.  No legislative changes are assumed
for FY 1980.

     Abatement and control resources for the Regions
will provide for a minimal program level.  Only a
small amount of resources are provided for necessary
actions resulting from regulations.  Coordinative
resources are provided for Regional integration, but
it is assumed that other media will provide resources
for activities to control toxic chemicals which are
being integrated.  No resources are provided for toxic
chemical emergencies or other activities not required
to support legislatively mandated functions.

     Output levels are based on the assumption that the
program operates at the full programmed resource
level in both FY 1979 and FY 1980.  This assumes that
we will be able to locate, hire, and integrate into
our organization large numbers of people with neces-
sary skills and use our contract money effectively.
This in turn depends on having adequate space when
needed and necessary administrative support.

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                        - 152 -


     Finally, because this is a new program, we
have had to base many output levels on models of
resource needs and projections of program design rather
than on actual experience.

     The toxic substances enforcement program antici-
pates that by the end of FY 1980, the Agency will have
promulgated several TSCA section 4 testing standards,
including oncogenicity, chronic toxicity, and combined
oncogenicity and chronic toxicity standards.  In addi-
tion, a section 4 testing rule, requiring the submis-
sion of test results data relating to health and
environmental effects, will have been promulgated and
20-30 chemicals selected for testing under this regu-
lation.  Standards for providing test data in support
of a premanufacturing notice under section 5 will also
have been promulgated, and a number of section 5(e)
and 5(f) rules or orders will have been issued.  An
additional section 6 rule is expected to become effective
by the end of FY 1980.  Under section 8(a),  the Agency
will have promulgated a use/exposure rule gathering
information on 2000-3000 chemicals.  In addition to
individual section 8(a)  information rules for a few
selected new chemicals, model rules will be issued under
sections 8(a), (c), and (d).  Finally, regulations
governing the importation of chemicals will be in
place.

     FY 1981 will bring additional chemical control
regulations under section 6.  New section 4 testing
rules and new rules and orders under section 5(e) and
5(f)  are also expected.  Furthermore, additional
section 8(a)  reporting regulations will be finalized
by the close of FY 1981.

     The enforcement resources necessary to adequately
monitor compliance with these program activities will,
for the most part,  be cumulative.  We assume that
resource allocations to existing programs will decrease
with time.  The net effect of the promulgation schedule,
however, will be to increase the demand for enforcement
resources.

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                         - 153 -


      Research and development planning  assumptions  will
 be  identified through the  research  committee  mechanism
 which is  being established presently  for  the  toxic  sub-
 stances media.

 Media Priorities

      The  FY  1980  and  1981  toxic  substances  programs re-
 flect increasing  levels  of program  activities and out-
 puts.  These expanding activities are based on the
 necessary foundations for  program operation such as a
 chemical  selection and priority  setting system, assess-
 ment  process,  premanufacture  review process,  including
 testing guidelines for new chemicals, and data manage-
 ment  systems and  capabilities  for the most  part being
 in  place  and functioning.  These activity levels also
 require that expedited procedures be  in place for such
 activities as  reporting  and recordkeeping rulemaking
 and for control'actions  on new chemicals, which must be
 taken quickly  in  order to  be  effective.

      In FY 1980,  we will continue establishing these
 toxic  substances  abatement and control program founda-
 tions  while  more  fully operating most aspects of the
 program.  We will put priority on making  the  premanufacture
 review program  fully  operational, in  order  to review
 new chemicals  and take action  on those that may be
 hazardous before  their release into the environment.
 We  will also emphasize development  of rules to obtctin
 testing data upon which  to make chemical  assessments
 in  support of  regulatory actions.   We will  begin to
 increase  our emphasis  on control of existing  chemicals
 which  are identified  as hazards through our assessment
 process.  We will operate  a priority  setting  system
 for choosing chemicals for testing  and regulation under
 TSCA and other  statutes, in conjunction with  the Toxic
 Substances Priorities  Committee.  In  FY 1981,  we will
 emphasize full  operation of all major program components.
 We will place a balanced emphasis on  regulation of  new
 and existing chemicals based upon the information base
 we establish in FY 1979 and 1980.  We will  operate  an
 integrated priority setting system  for choosing chemicals
 for testing  and regulation under TSCA and other statutes
 in conjunction with the Toxic  Substances  Priorities
 Committee.   Public participation in these key  programs
will be emphasized in both years.

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                         -  154  -


     The Office of Enforcement will concentrate its
FY 1980 and FY 1981 resources on the enforcement of
those regulatory programs which provide the most
effective means of (a)  abating threats to public
health or the environment due to chemical contami-
nants, (b)  gathering accurate and comprehensive data
concerning the universe of potentially harmful sub-
stances,  and (c)  monitoring compliance with existing
standards to determine that regulated chemicals are
handled as required,  and (d)  assuring the integrity
of the regulatory program.   Based on these criteria,
the following priority hierarchy has been established.

     Emergency Response -- Since emergency situations
     by definition present a direct and substantial
     threat to public health or the environment, co-
     ordinating Agency response to such imminent
     hazards will be the highest priority for the
     Office of Enforcement.  The Office of Enforcement
     will bring actions under section 7 of TSCA
     for  such injunctive relief as may be necessary
     to remedy the risk at hand.   Moreover, the
     Office of Enforcement will actively enforce the
     requirement under TSCA section 8(e)  that persons
     immediately report any emergency incidents of
     environmental contamination.  Finally, every
     effort will be made to use,  where appropriate,
     emergency response tools available under other
     environmental statutes such as the Solid Waste
     Disposal Act.

     Premanufacture Notification - TSCA Section 5 --
     Because the premanufacture notification require-
     ment contained in section 5 of TSCA can be used
     both to gather information and to reduce the
     risk of hazardous chemicals being introduced into
     commerce,  monitoring compliance with this require-
     ment is a high priority.  The proper implementation
     of the section 5 screening mechanism will allow
     the  Agency (a) to prevent hazardous substances
     from reaching the marketplace, and (b) develop a
     more accurate profile of the chemical industry.

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                    - 155 -

 Chemical  Control Actions - TSCA Sections  6,  5(e),
 and  5(f)  — Chemical control regulations  con-
 stitute the primary means by which the Agency
 directly  controls risks to public health  and
 the  environment.  Section 6 rules on PCBs, CFCs,
 and  any other substances in effect will receive
 special attention.  Since rules or orders
 issued under TSCA section 5(e) and 5{f)  (in con-
 junction  with the review of premanufacture notices)
 also impose chemical-specific controls, the en-
 forcement of the terms of such rules or orders
 will receive the same priority as that assigned
 to other  chemical control enforcement activities.

 Information Gathering - TSCA Sections 4 and 8 —
 TSCA sections 4 and 8 provide the principal
 authority for obtaining information regarding
 chemical  toxicity and exposure.  Since a violation
 of section- 4 or section 8 does not directly
 endanger  health or the environment the enforcement
 of these  programs receives a lower ranking than
 the  compliance monitoring activities described
 above.  The Office of Enforcement recognizes,
 however,  that since the success of other TSCA
 sections  depends upon the integrity of the data
 received  under sections 4 and 8, the Office of
 Enforcement must provide the resources necessary
 to assure that the information received under
 these programs is valid and complete.

 Imported  Chemicals Control - TSCA Section 13 •—
A smaller portion of resources will be used
 to inspect imported chemicals at U.S. ports of
entry.  The Office of Enforcement will monitor
imported  chemicals in cooperation with the U.S.
Customs Bureau.   Developing a specific protocol
to control imported substances will also be a
part of the strategies devised to enforce each
of the programs  listed above.

Federal Facility Enforcement — By the end of
FY 1980,   it is expected that all,  or almost all,
Federal facilities which are major sources will
be in compliance with applicable TSCA regulations
and most minor source Federal facilities will
also be in compliance.   Regions should assure

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                          -  156  -


      that all Federal facilities do indeed come into
      compliance as soon as possible, and no later
      than the end of FY 1980.

      Apart from the enforcement of the substantive
mandates of TSCA, the Office of Enforcement will enhance
the efficiency of its compliance monitoring management
system during FY 1980 and 1981.  Among the many pro-
grams which will be implemented to achieve this objec-
tive, the Office of Enforcement will focus on the
following activities.

     Multi-Media Enforcement — The Office of
      Enforcement plans to implement an intra-agency
     multi-media approach to toxic substances enforce-
     ment.  As appropriate, the Office of Enforcement
     will use both the enforcement tools and
      the resources available under other EPA-
     administered programs to integrate compliance
     monitoring and enforcement activities.

     Inter-Agency Cooperation — To further expand
     inspectional resources, the Office of Enforcement
     will work with participating agencies of the
     Interagency Regulatory Liaison Group (IRLG) to
      (a)  develop cooperative joint, referral, and
     crossover inspection programs, and (b)  coordinate
     complementary compliance monitoring programs.

     Evaluation of the TSCA Enforcement Program --
     The Office of Enforcement will continue to
     evaluate and refine its compliance monitoring
     and enforcement programs in FY 1981.  As part
     of this procedure,  the Office of Enforcement
     will establish a formal, automated system of
     processing information generated through
     compliance monitoring and enforcement activities.
     It will also conduct a periodic review of
     Regional programs and will establish a Regional
     team to evaluate Headquarters performance.

     Research and development priorities for toxic
substances will be established jointly by the research
committee participants.

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                        - 157 -
Major Objectives

     The abatement and control program objectives are
to implement the Toxic Substances Control Act's
policy that  (1) adequate data should be developed with
respect to the effect of chemicals on health and the
environment and that the development of such data should
be the responsibility of those who manufacture and
process the chemicals, and  (2) adequate authority should
exist to regulate chemicals which present an unreasonable
risk of injury to health or the environment.  These
objectives include the information related activities
of developing test standards and applying them to
specific chemicals by rule to obtain test data from
industry, establishing reporting and recordkeeping
requirements to obtain existing information on chemical
substances, setting requirements for submission of
information by industry on new chemicals and significant
new uses, monitoring for field data, implementing
and operating data management systems, and exchanging
nonconfidential information with other programs,
Federal agencies, States, public interest groups, and
the general public.  It also includes scientific assess-
ments of effects, exposures, and risks for new and
existing chemicals based upon this information and
technical determinations of control options, including
economic considerations.  Control related activities
include taking formal actions on the manufacturing,
processing, distribution, use, and disposal of new
and existing chemicals under TSCA authorities, refer-
ring action to other programs or agencies, and taking
nonregulatory approaches.

     The fundamental objective of the toxic substances
enforcement program is to protect public health and
the environment from unreasonable risks posed by
chemical substances regulated under the Toxic Substances
Control Act.   The risk abatement process will be
accomplished through:

     (1)   The implementation of a program to prevent
or respond to toxic substances emergencies and notices
of substantial risk,

     (2)   The achievement of compliance with the substan-
tive requirements of  TSCA and regulations promulgated
thereunder,

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                         - 158  -
     (3)  Assuring that information gathered under TSCA
is accurate and complete so that correct assessments
of toxicity and exposure can be made, and

     (4)  The expansion of inspectional resources
and improvement of the TSCA enforcement management
system.

     Research and development objectives will be
established through the research committee for toxic
substances.

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                        - 159 -
STATE GUIDANCE

Abatement and Control

     EPA is committed to using the powers of the
Toxic Substances Control Act  (TSCA) in an integrated
manner with other Federal authorities, State and local
authorities and programs, and with nongovernmental actions.
The Agency expects that cooperation and coordination with
these programs on information gathering and control
actions will result in more efficient and effective response
to chemical substance risks.

     As part of this overall approach, EPA recognizes the
special expertise and abilities of the States.  The
States often have information on health and ecological
effects, exposure, use, etc. for chemicals which are
produced or used in their areas.  The monitoring or
epidemiological information compiled by State govern-
ments may be valuable to the national toxic substances
program in identifying and characterizing risks that may
be more appropriately controlled by actions at the State
level than by Federal action.  While regulations under
TSCA will be directed primarily to national problems,
EPA will share nonconfidential data that would be useful
to State governments in developing regulations to address
substances that present a particular hazard in a geo-
graphical area.  EPA, through its Regional Administrators,
will make every effort to coordinate with State and
local officials.

     Section 28 of the Act authorizes a program of
financial assistance to States "for purposes of
complementing" the Federal program by addressing
problems on which EPA "is unable or not likely to
take action under" TSCA.  EPA announced the availability
of this assistance, and details of the program in the
Federal Register August 28, 1978.  This first solicitation
brought applications from nine States, of which six
were funded in whole or part.  States interested in
applying for the next round of awards must submit
applications postmarked on or before May 27, 1979.
Cooperative agreements awarded under the first solicitation
included proposals to:

          o    Automate existing data from a toxic
               substances survey ("registry"), and
               augment those data from a variety of
               sources.  The resulting data base will

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                        - 160 -
               be used,  among other things,  to
               develop a State emergency response plan.

          o    Identify, characterize,  and plan for
               the management of toxic  substances
               problems.  The State will establish
               priorities among such problems as are
               identified, and will develop a plan which
               includes  a detailed strategy for managing
               them.   Part of the plan  will be to outline
               the roles of both governmental and
               nongovernmental agencies, and to define
               current or proposed inter-governmental
               relationships in managing toxics problems.

          o    Expand a small (25 substances) volatile
               organic air monitoring program to include
               metallic particulates, a small number of
               heavy hydrocarbons absorbed onto
               particulates, and a broad characterization
               of volatile hydrocarbons.

          o    Study a formaldehyde vapor problem,
               including determining the source of such
               emissions.

     Awards for the first round totaled approximately $1.7
million; approximately $1.3 million remains available for
award from the FY 1978 and FY 1979 appropriations in the
second round of competition.

Enforcement

     Plans to implement a cooperative enforcement grant-
in--aid program with the States have been suspended until
such time as the Federal toxic substances enforcement
program is fully implemented.  Thus, no FY 1980 State
Guidance has been developed.

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PESTICIDES STATE GUIDANCE

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                    PESTICIDES


MEDIA OVERVIEW

Planning Assumptions

     The Federal Pesticide Act of 1978, which amended
the Federal Insecticide, Fungicide and Rodenticide Act
(FIFRA), will make the regulation of pesticides more
efficient, more effective, and more timely.  All
registration (section 3) guidelines will be completed
and in force by the second quarter of FY 80 and new
regulations, where appropriate, will be in effect at
this tine and fully enforceable.  The following
assumptions reflect the new directions and resumed
activities that those amendments have made possible.

     Studies required by the FIFRA as amended on methods
of pesticide applications and minor use pesticides will
be completed the third quarter of FY 79, but at this
time, we do not anticipate the results to cause any
major realigning of OPP's regulatory activities.  Ef-
forts to refine and improve the Agency's tolerance-
setting mechanisms will continue through FY 80 and
FY 81; no radical departures affecting Agency or
registrant resources are anticipated.  Legal chal-
lenges to the trade secrets and data compensation
provisions in the 1978 FIFRA amendments are anticipated.
OPP and the Office of General Counsel expect these to
be resolved in EPA's favor.

     The Generic Standard development process will be
fully productive by the beginning of FY 80.  RPAR will
be merged into the generic standards in FY 81 when the
original RPAR commitment to 65 chemicals has been
completed.

     Until pesticide generic standards are developed,
EPA will be granting conditional registrations.  Con-
ditional registrations will allow the Agency to process
applications for registration of nev; products which
are like one already registered.  Ultimately, OPP will
review all products comprehensively when they are
reregistered under generic pesticide registration
standards.

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                        - 164 -
     "Me-too" products and new uses of "old" chemicals
will be eligible for conditional registration if EPA
determines that enough information is available to
evaluate unique hazards that nay be posed by the new
uses.  The Agency will also issue conditional registra-
tion of new chemicals in the public interest if risk
during the period required to complete and submit
additional studies is not unreasonable.

     States will have broader authority and responsi-
bility for registering Section 24(c)  "Special Local
Weeds" pesticides without requiring EPA's approval.
Regions will assist States in establishing their 24(c)
programs and will provide early guidance and screening
to States on individual 24(c) applications.  Final
review/disapproval will remain a headquarter's function,

     EPA will use broad discretion granted by the 1978
amendments to waive the submission of efficacy data.
OPP will evaluate this during 1980 and, if it does not
prove to be effective, will reconsider this approach.
In any case, the Agency will continue to consider
efficacy when performance of the product bears upon
public health.

     In FY 1980 EPA will complete (except for updating)
the process of classifying uses by regulation, apart
from the registration process.  This  will help to
realize the objectives of the applicator certification
program with regards to restricted use products.

     The effort to develop grants-in-aid with States
and Territories for enforcement will  be continued.  By
the end of FY 1980, 43 States will have cooperative
grants-in-aid,  and by FY 1981 the number of grants will
increase to 50.

     The Office of Enforcement will initiate a new pro-
gram (Investigations of Nationally Targeted Pesticides
Public Health Incidents) during FY 1979 to focus upon
all aspects of  the manufacture, distribution, use, and
disposal of certain restricted use pesticides.  This
effort will be  given continued er.pahsis in FY 1980.

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                        - 165 -
     By the end of FY 1980, it is expected that all, or
almost all, Federal facilities which are major sources
will be in compliance and nost minor source Federal
facilities as well.  Regions should see to it that all
Federal facilities do indeed come into compliance as
soon as possible, and no later than the end of FY 1980.

     Research and Development will be integrated into
supporting pesticide activities in 1980.  Furthermore,
ORD will receive its planning priorities from the
Pesticide Research Committee and specific requirements
from OPP.

     The Federal Certification progran in Colorado and
Nebraska will continue at least through FY 1931.

     OPP will be staffed up to budgeted levels with
qualified professional and support personnel.  Both
Regional RPAR and Special Registration Decision Units
are eliminated connencing in 1980.

Priorities

     FY 80 priorities will emphasize the cor.pletion of
the remaining RPAR reviev;s, completion of registration
standards initiated in FY 79 and reregistration of
existing pesticides based on these registration stand-
ards, registration of new environmentally protective
pesticide products for which complete hazard data are
submitted, expanded enforcement involvement on the
part of the States, and increased response to emergency
situations which involve substantial threats to public
health and safety.

     FY 1981 priorities for the pesticide program will
be similar to those for FY 1980.   RPAR will be substan-
tially completed and integrated into the registration
standards process.  Highest priority will be registra-
tion of new environmentally protective pesticide
products.   Continued completion of registration standards
and reregistration of existing pesticides based on them
will also be emphasized.  Cooperative enforcement grants-
in-aid are expected to be developed in all or most States
by the end of FY 1981.

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                        -  166  -
     In those States which have Federal certificetion
programs, enforcement activities will be in support of
efforts directed toward developing approved plans.

Federal personnel will continue to be responsible for
enforcement of applicator certification in Colorado and
Nebraska.

Major Objectives

     In FY 80 the Agency plans to review benefits and
risks of 12-17 RPAR compounds identified as posing
potentially unreasonable adverse effects and reach 15-20
final risk/benefit determinations on RPAR compounds;
implement the conditional registration program; give
registration priority to new chemicals for which com-
plete hazard data are submitted; reregister 1,000-1,400
products from available generic standards; complete the
generic standards initiated last year and initiate the
preparation of 40-50 generic standards, including the
reassessment of associated tolerances.

     Major objectives, reflective of the special
registration program, will be for Regions and Head-
quarters to provide timely and responsive guidance to
the States relative to their Section 5(f) experimental
use permits and review 180-240 Section 5 registrations
in a median turnaround time of 120 days; review 1,000-
1,500 Section 24(c) special local needs registrations
and conduct overview activities on their final actions;
review 170-220 Section 18 emergency exemptions in a
median turnaround time of 4 weeks including full scien-
tific review of pertinent data.

Guidelines for biological pesticides will be promul-
gated.  The Agency will establish 80-120 pesticide
residue tolerances and review 75-100 amendments for food
and animal feed crops after review of data and risk/
benefit analyses in a median turnaround time of 105 days

     The laboratory audit program will be continued;
50-70 laboratories will be audited.

     FOI requests will be given an initial response
within 10 days followed by a final response as quickly
as possible.  Monitoring for hazard prediction and
significance of potential problems will continue, but
will be more closely tuned to support the regulatory
process .

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                        - 167 -
     The abatement and control objectives for 1981 re-
nain the sane as for 1980 except that the RPAR process
will be integrated into the generic standards process
and increased ercpahsis will be given to registration
of innovative, environmentally protective compounds.

     The Federal Enforcement role will continue to be
one of oversight, guidance, an support of non-Federal
enforcement effects in States and Territories.  The
program will also focus upon all aspects of the manu-
facture, distribution, use, and disposal of certain
restricted use pesticides.

     During the next two years, four major objectives
will be driving the Environmental Protection Agency's
research and development program.  These are (1) con-
tinuing the integration of the Office of Research and
Development into the mainstream of the pesticide
activities by supporting the Pesticide Research
Committee that was jointly developed by ORD, OPP,
Office of Enforcement and regional representation,
(2) enhancing the Office's capability to improve the
scientific and technological data for use in future
reculatory and enforcement actions, (3) improving
that data through scientific peer review of research
procedures and results, quality control of risk assess-
ments, and quality assurance of monitoring data, and
(4) providing specific data in response to OPP's
immediate needs.

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                          - 168 -
STATE GUIDANCE

ABATEMENT AND COKTPOL

State Program Priorities

     Given that guidance should he as its nane inplies
and not prescriptive in nature, what follows is a
seauential priority listing and summation of activities
in which States efforts can be most helpful to the
implementation of FIFRA.

     o  Certification and Training — States need to
        taketheir certification and training
        program to the second generation level.
        This translates into several specific
        activities:

              -  Validation of examinations and other
                 certification mechanisms.

                 Cualitative evaluation of training
                 programs.

                 Correction of deficiencies in the
                 certification and training program
                 identified through the validation
                 and evaluation processes.

              -  Development of new training programs
                 to satisfy special needs.

                 Consideration for standardizing
                 competency requirements across
                 State lines for specialized pest
                 management groups, e.g., food
                 processors, cooling tower operators,
                 and railroad right-of-way operators.

              -  Consideration and implementation of
                 new or improved certification and
                 training methodologies in order to
                 enhance safety and effectiveness of
                 pesticide use.

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                   -  169  -
Special Registration — Provisions of FIFRA
and experience have placed a significant
responsibility at the State level in the
implementation of emergency exemptions
(Sec. 18), special and local needs registra-
tion (Sec. 24(c)), and experimental use
permits (Sec. 5(f)).  To perform these func-
tions effectively, the States will have to
commit high-level scientific and technical
resources to hazard reviews and evaluations.
EPA and the States should also enhance
their consultation and coordination activi-
ties, working principally through the Regional
offices.

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                       - 170  -
     State Specific Guidance

          State-specific guidance has traditionally
     been written by the Regional Offices within the
     franework of broad national priorities, based
     on their unique knowledge and understanding of
     individual States.  As this system has worked
     well, and need not be changed, no attempt to
     set out guidance specific to any State v/ill be
     nade here.
Enforcement
     State Program Priorities

          In response to the continuing concern over
     the dangers inherent to public health and the
     environment caused by improper use or application
     of pesticides, EPA will encourage the States to
     enforce compliance with label directions for use.
     Furthermore, the States are expected to be
     actively involved with the Investigations of
     Nationally-targeted Pesticide Public Health
     Incidents.

     State Specific Guidance

          Through the mechanism of state grants-in-aid
     the States will pay particular attention to pro-
     ducts which are or will he classified as
     restricted.  Pursuant to the Federal Pesticide
     Act of 1978, amending the FIFJRA, the States will
     be granted primary authority to enforce pesticide
     use violations.  In those States which have not
     developed use enforcement programs, the Office of
     Enforcement will continue to enforce such viola-
     tions.  In those states which have developed use
     enforcement programs, the Office of Enforcement
     will provide oversight, guidance, and support.
     In addition, the amendments grant EPA the
     authority to enforce use violations when the
     States cannot or do not take appropriate action
     30 days after a violation has occurred.  Further-
     more, under new Sections 26 and 27 of the

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                   - 171 -
amendments, FPA may resume prinary enforcement
activities for use violations when a state has
failed to assume its enforcenent responsibilities.
These regulations are expected to be implenented
no later than FY 1980.

     In connection with the proposed Investigations
of Nationally Targeted Pesticide Public Health
Incident, State personnel will initiate establish-
ment and books and records inspections at all
producing sites; conduct use observations; and
respond to emergency situations involving the mis-
use of restricted use pesticides, and/or other
pesticides.
                                        836 886

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