450R90102
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                       Report to the Deputy Administrator
                    Clean Air Act Implementation Task Force
                                  July, 1990
                                                 ;.  Doarbcrn 5^-
                                              oi.aca.go.,, i]L  60604

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                            CONTENTS
                                                       Paoe
Executive Summary	—	———	—	—	——  ii
Introduction
     Purpose, Objectives, Methodology———————	   1
Current Agency Regulatory Development Experience-—	   3
          -process flow charts/statistics———————   4
          -problems/concerns———————————   5
Task Force Conclusions and Recommendations	—   7
          -Preparation Responsibilities——	—   7
          -Fundamental Principles	   8
          -Steering Committee Role————————  10
          -Specific Process Options and Criteria—  11
               -Streamlined Method———————  11
               -Core Workgroup	—	  12
               -Accelerated Agency Workgroup	———   12
               -Deputy Administrator Oversight	  12
          -General Streamlining Methods	  13
Remaining issues————-—————	———-  14
Recommendations—————————————  ie
Appendix A—Expected CAA Requirements
Appendix B—Specific Procedures for Processes
Appendix C—Expanded Start Action Request Form
Appendix D—Task Force Composition

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 1.
I
                         EXECUTIVE SUMMARY

    Why the Concern?

        -Volume of regulations and tight statutory deadlines

        -Current Agency regulatory experience averages 37 months for
        rule development

        -Need to neet statutory requirements and still satisfy
        Agency needs

    Fundamental Conclusions

        -Different approaches for different categories of rules-
        There will be different procedural guidelines for different
        categories of rules to ensure that participation and
        timeliness are adequately balanced.

        -Decisions and action-forcing mechanisms—Unresolved issues
        will be raised for resolution quickly and will not linger in
        the workgroup until consensus is reached.

        -Need for strict oversight—Senior management will be
        involved in the oversight of these regulations through
        reports and meetings to ensure that milestones are met and
        issues are resolved.

        -Presumptive deadlines—These regulations will have very
        strict deadlines for development and review.  OAR will go
        forward with regulation at the date stated.
                    f
        -Culture change in Agency—A culture change within EPA
        stressing quick resolution of issues, and a changing
        relatinship between offices where input is based on office
         interest not opinion and fail to comment will be considered
        concurrence.

    Specific Process Option Recommendations and Criteria

        -The Task Force recognized that not all rules need the same
        amount of time for review.  The reasons for these different
        types of review include:  timeframe for rule, cross Agency
         interest, and amount of latitude provided by statute

        -The four methods developed by the Task Force are:

              -Streamlined Method—OAR develops draft rule and
              circulates around the Agency for comment, but not
              concurrence, before proceeding to next step.

                                   ii

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          -Core Workgroup—OAR develops regulation with limited
          workgroup  and  only the AAships participating in the
          workgroup  get  concurrence rights.

          -Accelerated Agency Workgroup—OAR develops regulations
          with more  inclusive workgroup since rule nay have  large
          cross nedia concerns.

          -Deputy Adainistrator Oversight—Deputy Administrator
          has quarterly  meetings on the regulations to provide
          guidance and ensure timeliness.  This process will only
          be used for a  few select regulations with tight
          deadlines  and  large cross media impacts.

Other Basic Changes

     -Expanded Start Action Requests  (SAR) will replace
     Development Plans.  SARs may be grouped for rules with
     common elements.

     -More oversight of  workgroup members including rewards  and
     incentives.

     -Use workgroup  closure as final Agency sign-off

     -OAR will provide preliminary lists and briefings on CAA
     regulations to  program offices to help identify priorities.

     -Steering Committee will act as an issue resolution and
     elevation body  and  also provide oversight of rule and link
     to the AAs.

     -Facilitators—OAR  should use procedural experts in the
     development of  the  rule to relieve the workgroup chairs of
     this duty where possible.

Remaining Issues

     -Uncontrollable time—The amount of time outside of the
     Agency's control  (e.g. public comment period).

     -Regulatory Negotiation as a possible option to the other
     recommended methods for select rules

     -Resources and  Staffing—Insufficient planning or amount  of
     resources both  within OAR and the rest of the Agency  (e.g.
     OGC and OPPE) nay cause problems for timely rule
     development.
                               iii

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-Use of the Streamlined Method on aore complicated and
controversial regulations.

-State involvement in the CAA process has been accomplished
through the different workgroups set up by CAA Title and
through their associations.
                           iv

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                         INTRODUCTION

Purpose/Objectives

     The new Clean Air Act Amendments will require a large number
     of separate regulations,  guidelines, and reports that the
     Agency will need to develop and promulgate in a timely
     fashion.  In addition to  the tine and resource problems
     associated with issuing a large number of regulations, the
     Clean Air Act is a major  piece of legislation which will
     affect every major industry in the United States.  The rules
     that EPA promulgates will have potential impacts for all
     other Agency programs.  It is therefore important to take
     into consideration cross-Agency impacts and participation in
     their development.

     Consequently,  the task force was asked to identify the main
     rulemaking and guidance tasks needed to carry out the Act,
     to identify barriers within the Agency that may prevent EPA
     from meeting the statutory mandates, and develop
     recommendations on how the Agency can work together to
     overcome these barriers.   This report presents the results
     of the Task Force efforts.

Methodology

     OAR and OPPE co-chaired the Task Force.  The full Task Force
     met three times.  The first meeting was mostly devoted to
     explaining the nature and extent of the problem to the Task
     Force..  The Office of Air and Radiation (OAR) provided an
     overview of the five titles of the Clean Air Act Amendments
     and what regulations would be required from each title.  The
     Regulatory Management Division  (RMD), within OPPE, then
     provided information on the Agency's current regulatory
     procedures,  typical lengths of time associated with each
     step, and Agency statistics on rulemaking time.  The Task
     Force discussed certain barriers that can cause regulatory
     delay based on RMD's Procedures Evaluation Project  (PEP)1.

     At the initial meeting, workgroups were set up to discuss
     and provide recommendations on major areas of concern about
     the regulatory process:   roles and responsibilities of the
     workgroup chairs and members; decision making and issue
     resolution;  and the structure of the regulatory process.
     1     The Procedures  Evaluation Project studied and  continues
to study EPA's internal regulatory procedures and also those
associated with other Federal  and State agencies.

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During the second meeting of the full task force,  the three
workgroups presented their findings and recommendations.
Certain issues and recommendations were raised repeatedly by
each workgroup.  These were:

     -Different regulatory processes would be appropriate
     for different types of regulations (much in the same
     way the HSWA regulations were developed).

     -Rapid elevation and resolution of issues and a
     •echanism to ensure that this occurs are necessities if
     the Agency is to meet CAA deadlines.

     -Senior level management attention and commitment to
     these regulations is needed to help facilitate
     timeliness and issue resolution, especially on short
     deadline rules.

Given these issues, another workgroup (consisting of members
of the earlier groups) was formed to develop a "strawman"
that would address these concerns and ultimately to draft
the Task Force recommendations offered to the Deputy
Administrator.

The final meeting of the Task Force discussed the
recommendations and concerns.  There was general agreement
within the Task Force on the recommendations presented.

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Current Process

    The  flow chart below displays the steps required in the
    Agency's regulatory process for a major rule, and an idea of
    the  amount of tine associated with each step.  It is
    interesting and important to note that there are periods of
    time that are relatively uncontrollable during rule
    development, such as the public comment period and OMB
    review,  in addition, most rule development time does not
    occur during review but during the initial stages of
    development and the time following the comment period.
      OVERVIEW OF THE REGULATION DEVELOPMENT PROCESS
              FOR MAJOR RULES (AGENCY EXPERIENCE)

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Statistics
     Statistics provide some interesting insights into the  rule
     development process in EPA.  First, in general,  the amount
     of  tine from start to proposal averages almost the same as
     from proposal to promulgation.  Second, it is evident  that
     the process can be made to work expeditiously as evidenced
     by  the fact that 25% of the regulations vere completed in 16
     months or less.

     The following provides some statistics on the time required
     for EPA regulations.


     TABLE 1

                Time Taken for Various Parts off

              EPA Regulation Development Pr
                Start Action Request to Proposal

                        Mean      19 months
                        Median    14 months
                        Range      1 to 88 months

                        25% of rules took less than 5.5 months
                        25% took over 21 months
                        50% took between 5.5 and 21 months

                    Proposal to  Promulgation

                        Mean      17 months
                        Median    14 months
                        Range      2 to 71 months

                        25% of rules took less than 8.5 months
                        25% took over 25 months
                        50% took between 8.5 and 25 months

              itart Action Request  to  Promulgation

                        Mean      37 months
                        Median    29 months
                        Range      6 to 112 months

                        25% of rules took less than 16 months
                        25% took over 50 months
                        50% took between 16 and 50 months

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Problems and Concerns in Regulatory Development

     The Task  Force  as veil as the recent PEP study identified
     probleas  and  reasons for EPA rulemaking delay in four
     general categories:  workgroup operations, management level
     concerns,  procedural delays, and external forces.

     1.   Workgroup  Operations

         o    Attempting to reach consensus in the workgroup
               instead of elevating issue to nanageaent. Work-
               group chairs often view raising an issue to
               management as a failure.
         o    Workgroup members not representing office because:
                    -Member pursues personal interests or is out
                    of touch with his or her office
                    -Management not focusing on rules until late
                    in the process
         o    Loss  of momentum—After a proposal, the workgroup
               waits for public comments and may be assigned to
               other projects.  The priority of the first rule
               say diminish.
         o    Workgroup members may be slow in responding to the
               Chair with input on a rule.
         o    Large workgroups are difficult to manage  (e.g.
               "too  many cooks...") and some members nay be
               unnecessary.
         o    Failure to share information among the workgroup
               could cause delays when the information finally
               becomes available and members need to analyze it.
         o    Inadequate workgroup leadership
         o    Lack  of workgroup experience
         o    Difficult to get on AA calendar for briefing

    "2.   Management Level Concerns

         o    Management not providing clear direction to the
               workgroup chair and members
         o    Initial priority setting not done by lead office
               management or numerous shifts of priorities as new
               issues arise.
         o    Managers not focusing on the regulation until the
               final step (i.e. Red Border) and raising issues
               late  in the process.
         o    Management not designating effective workgroup
               representatives or not making workgroup
               participation a priority.

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     o    Putting wrong person on the workgroup
     o    Lack of explicit objectives for workgroup
          participation; What is the role of the workgroup
          member?)

3.   Procedural Delays

     o    Number of concurrence points
     o    OMB—Often extends their review period.
     o    Late hits—Workgroup offices bringing up issues
          late in the process.
     o    Redrafting time caused by comments and changes to
          existing packages
     o    Assessing late information
     o    Problems caused by redrafting and addressing one
          office's concerns

4.   External Forces

     o    Inadequate resources—Offices which must
          participate in all rules can cause backlog, e.g.
          OGC.
     o    Substantive public comments
     o    Other projects competing for time and attention
     o    Information/Data Collection
     o    Turnover
     o    Court actions
     o    Congress—Keeping them informed, providing
          information, briefings, etc.

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     TASK FORCE CONCLUSIONS AND RECOMMENDATIONS

     The Task Force's review and analysis resulted in the
     development of conclusions and recommendations in five major
     areas: preparation responsibilities, fundamental principles,
     Steering Committee role, the use of specific processes for
     different rules, and general streamlining.

Preparation Responsibilities

     There are a variety of actions that should be taken in
     preparation for the passage of the CAA to facilitate
     regulatory development.  The Task Force recommends that
     these actions be started now to prepare the Agency for the
     large influx of rules into the system.

     1.    OAR should develop and circulate to AAs descriptions of
          anticipated CAA amendment regulations.  To aid in
          priority setting, OAR should try to present as many
          rules as possible up front.  They should make enough
          information available so that EPA offices can determine
          how the regulation may affect their program or their
          interests.  This can be done with an expanded SAR* that
          includes:  cross media implications, enforcement
          concerns, schedule, and who OAR expects to participate.
          Other EPA offices can also ask OAR for a more in-depth
          briefings if necessary.

     2.    The Steering Committee should determine initially which
          specific process each CAA regulation will undergo  (see
          sections on the role of the Steering Committee and on
          specific recommended rule development processes).

     3.    EPA program offices should determine and identify to
          OAR their priority rules.

     4.    OAR workgroup chairs should go through the OPPE
          workgroup chair training to sharpen their workgroup
          management skills.

     5.  '  OAR should identify all data needs as early as
          possible.

     6.    OPPE should provide training or briefings for OAR staff
          on bow best to deal with process concerns (Regulatory
          Facilitators).
     'See Appendix C for a copy of the expanded SAR.

                               7

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Fundamental Principles

     These principles stress the importance of rapid elevation of
     issues, workgroup operations, and oversight that will govern
     all  of the CAA regulations.  Adhering to these principles
     should help the Agency to develop these regulations within
     the  statutory deadlines.

     The  systems used for the development of the CAA regulations
     oust keep items moving through the process with self-
     enforcing deadlines (i.e., if an office does not respond,
     OAR  will continue to the next step).  In some cases, it may
     be necessary to include the Deputy Administrator to ensure
     that tight schedules can be met (e.g., when issues cannot be
     resolved at a lower level).

     1.   OAR should raise unresolved issues quickly to the
         appropriate level (i.e., they should not linger in the
         workgroup).

     2.   The issue resolution hierarchy should be workgroup to
         Steering Committee, Steering Committee to AAs, and AAs
         to Deputy Administrator.  If an issue is raised that
         cannot be resolved at the workgroup level, the
         workgroup chair schedules the issue for resolution at
         the next Steering Committee meeting.  Ths may encourage
         management to resolve the issue before the scheduled
         meeting; if not, the Steering Committee discusses and,
         if possible, resolves the issue.  If still unresolved,
         a meeting of the affected AAs is immediately scheduled
         with the AA/OAR.  If the issue is not resolved before
         or during the AA's meeting, a meeting is scheduled with
         the Deputy Administrator to resolve the issue.

     3.   When issues are raised to the Steering Committee, they
         should be dealt with by resolution or further elevation
         at that meeting (Steering Committee representatives
         must come prepared to resolve issues or recommend
         elevation).

     4.   OAR should document resolved issues.  Once issues are
       •  resolved, they should not be raised again unless new
         information dictates a change.

     5.   Workgroup members should represent their offices and
         base their positions on how issues affect their
         offices, not on personal opinions or private agenda.
                               8

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6.   OAR should provide the  Deputy Administrator, Agency
     AAs, and Steering Committee  representatives with  a
     monthly report of CAA activities.  This  report  should
     include milestones,  schedule slippages,  and unresolved
     issues.  OAR also should brief the DA  once a month on
     the status of regulations.   This briefing should
     include issues on which OAR  needs decisions.  All AAs
     are encouraged to attend these meetings.

7.   In all cases, OAR should be  responsible  for the
     regulations, the decisions made, and keeping the  rule
     on schedule.  If other  program offices think that OAR
     is not proceeding adequately, they should raise their
     concerns to the AA/OAR  and/or the DA.  This will  stop
     the regulation and is analogous to the "emergency
     brake" on a train.  It  should only be  used in extreme
     circumstances.

8.   The "emergency brake" should be used in  situations
     where other offices believe  that OAR is  proceeding  in  a
     direction that is counter to the policy  of the  Agency
     or a specific program.  The  AA of the  affected  office
     would pull the brake cord by contacting  the Deputy
     Administrator and thus  stop  the rulemaking.  The  Deputy
     Administrator would then determine which way the  rule
     should go.  The emergency brake should only be  pulled
     for serious unresolved  issues and cot  for minor
     comments.  It is pulled when necessary,  an action not
     taken lightly.

9.   Currently the Agency develops many regulations  by
     consensus using workgroups.  This may  be time consuming
     as discussions, compromises  and deals  are made  between
     different offices.  The Agency will have strict
     deadlines for enacting  CAA regulations,  therefore,  it
     will be necessary to enforce discipline  in the  decision
     making, process.  OAR will expect timely  responses.   In
     the past, lack of response has often caused delays
     while lead offices extended  deadlines  for non-
   .. respondents.  This practice  oust stop.  It is the
   ;  responsibility of a reviewing office to  make its
   •  concerns known in a timely Banner.  If OAR hears
     nothing by the time of  a deadline, it  will assume
     concurrence and move on.

10.  The 12th floor special  assistant should  attend  all
     Steering Committee discussions of CAA  issues.

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Steering Committee Role

     The Task Force recommends that the role of the Steering
     Committee should be enhanced to better facilitate the
     development of the CAA regulations within statutory
     deadlines.

     1.   Steering Committee representatives must be delegated
         the authority to speak for, and commit their offices on
         most CAA matters.  OAR will consider any non-responses
         as concurrences.  It is assumed that the Steering
         Committee representative will have access to senior
         management in their AAship.

     2.   OAR must use the Steering Committee for issue
         resolution/elevation.

     3.   Steering Committee representatives must meet with the
         workgroup members and senior management in their
         AAships  on a regular basis to facilitate issue
         resolution.

     4.   The Steering Committee should have three major roles:

              -Ratify the specific regulatory development
              process and workgroup membership  (using OAR
              suggestion) for each rule.

              -Ensure adequate workgroup participation by
              providing access and support to workgroup members
              so  that they can resolve issues.

              -Resolve workgroup issues or raise them to the
              appropriate level for resolution.

     5.   The Steering Committee should determine the appropriate
         process  that OAR will use for each regulation  (based  on
         OAR suggestions).  OAR must provide enough information
         in its expanded SAR so that the Steering Committee can
         determine a rule classification.  The  Deputy
       •" Administrator should resolve any differences of opinion
         on classification between OAR and the  Steering
         Committee.

     6.   To allow for quick resolution or elevation of CAA
         issues,  the Steering Committee should  either meet every
         week, rather than bi-weekly, or a separate CAA Steering
         Committee should be set up to meet on  alternate weeks.
         In the first case, time will be set aside during each
         meeting  to address CAA issues.
                               10

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Specific Process Options and Criteria

     The Agency can and should treat different types of
     regulations differently.  Regulations need to be assigned an
     appropriate regulatory development process based on specific
     criteria.  OAR should  recommend the specific process fox-
     each  regulation required under the new CAA to the Steering
     Committee  for approval.  Any differences of opinion between
     OAR and the Steering Committee on classification should go
     to the DA  for final resolution immediately.  There are some
     classes of actions, such as Reports to Congress and some
     guidances, which do not require intra-Agency review.  The
     process changes discussed here will not affect these
     actions.

     The criteria used  to determine which process to apply to a
     regulation include:
               o    Schedule or Statutory Deadline
               o    Degree  of Cross Agency Interest
               o    Amount  of Regulatory Discretion Allowed by
                   Statute

     Based on these criteria, each regulation would be developed
     under one  of four  processes:  the Streamlined Method, the
     Core  Workgroup, the Accelerated Agency Workgroup, or Deputy
     Administrator Oversight.  These are summarized below; and
     Appendix B contains a  description of the actual steps for
     each  process.

     1.    The Streamlined Method

          The Agency should use this method when there are no or
          very  few cross agency concerns or when the statute
          dictates the  specifics of the regulation (e.g. the
          tailpipe emission standards).  With this method, OAR
          will  not convene  a formal workgroup, but will obtain
          the agency expertise  (technical, legal, etc.) it needs
          to develop the regulation.  The Steering Committee
        :-  would be the  forum for another office to request
        •'  involvement.  There would be no concurrence process,
          but OAR would circulate drafts to the AAs for comment
          before continuing on to OMB review.  OAR would prepare
          a memo explaining the changes Bade in response to
          Agency comments,  and an explanation of comments not
          accepted.  It would be up to other program offices to
          raise any major disagreements they have with OAR to the
          AA/OAR who would  then either resolve the differences or
          schedule a meeting with the DA for final resolution.
          This  process  would be repeated for final promulgation.
                               11

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2.   Core Workgroup Method

     The Agency should use this  process when  there  are  few
     cross media concerns so that only a limited  number of
     offices have an interest (e.g.  Onboard Diagnostic
     systems).  This process would formalize  the  workgroup,
     but would limit participation in the core  workgroup to
     directly affected offices.   Other offices  can  be part
     of an information group that would receive packages.
     We should anticipate OPPE,  OGC,  ORD, OECM, and a lead
     region participation at a minimum, but any of  these can
     choose to opt out if they do not have an interest.
     This process would accelerate the regulatory
     development process by reducing the size of  the
     workgroup, thereby Baking it function more smoothly,
     and limiting concurrence to those offices  with a
     demonstrated interest in the rule.

3.   Accelerated Aoencv Workgroup Method

     The Agency should use this  process for those
     regulations that have major cross-media  implications or
     interests and/or less stringent timeframes (mobile
     sources, air toxics).  This process would  provide  the
     same mechanisms as the Core Workgroup Method to
     expedite development and facilitate issue  resolution.
     Regulatory Scoping meetings and/or Decision  Meetings
     might be necessary for a select number of  these
     regulations given the cross media implications and the
     need for senior management  guidance.

4.   Deputy Administrator Oversight Method

     The Agency should use this  process for major rules with
     large Cross media concerns  and very tight  deadlines
     (e.g. Permit Program).  The major feature  of this
     process is that the DA would have regularly  scheduled
     AA level meetings (every three months)  for these  rules
     to make decisions, give guidance, and enforce
   : schedules.  The first meeting would initiate the
     regulation, provide initial advice, develop  procedural
     guidelines such as schedule development  and  determine
     the number of DA level meetings, and designate next
     steps.  An agency workgroup (set up by the Steering
     Committee) would develop the details of  the  regulations
     with the guidance provided  by the 12th  floor.
                          12

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General Streamlining

     Regardless of the processes used in the development of the
     CAA regulations, there are several general streamlining
     actions that the Agency can take.

     1.   Use Regulatory Facilitators' on major/complicated rules
         to help guide the rule through the procedural steps of
         the process.

     2.   Group SARs with common elements to decrease some of the
         paperwork and take advantage of regulations with common
         elements.

     3.   Eliminate routine Steering Committee information
         briefings that do not require the Committee to take
         some type of action  (e.g. resolve or elevate an issue).

     4.   Expedite 12th Floor signature by getting a commitment
         that the document will be turned around within a week
         unless there are major concerns.

     5.   Limit public comment period to the extent allowable by
         law.  Limit the number of extensions, and limit public
         hearings.  The Federal Register notice needs to make
         clear that EPA will not grant extensions to the comment
         period except in the most extreme circumstances.

     6.   Eliminate Red Border review.  Final Agency sign-off
         will occur at Workgroup Closure unless problems occur
         at the closure meeting which dictate that a short Red
         Border review may be necessary.

     7.   Use different lead Regions for different rules by
         having the Regions assign rules to different sub-lead
         regions.  This will help to distribute some of the lead
         Region workload.

     8.   Maintain strict oversight by the Steering Committee,
         OAR, and the 12th Floor through reports and meetings to
       -" assure that rules stay on schedules.
     *     A Regulatory Facilitator would be part of the  workgroup
to help the workgroup chair with the procedural concerns such as:
determining when issues need to be elevated; whether  an
Information Collection Request is necessary; or getting  better
workgroup representation.

                               13

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                      REMAINING ISSUES

     There are  issues remaining that the Task Force has discussed
     but not resolved.  These are presented below so that the
     Deputy Administrator may consider them as part of the
     context of the Task Force's recommendations.

Use of the Streamlined Method

     A suggestion was made to use the Streamlined Method of rule
     development for come rules with large cross media
     implications  (e.g. the Permit Program rule).  The argument
     is that OAR will be more likely to meet its statutory
     deadline using this method.  Other program offices (OPPE,
     ORD) stated some concern with this approach.

Workgroup Closure vs. Red Border

     The Task Force agreed that having both Workgroup Closure and
     Red Border is redundant and unnecessary.  A majority of the
     Task Force (and OAR in particular) favored using Workgroup
     Closure as the final sign-off because it will be quicker.
     OAR agreed to distribute memos announcing that these
     closures will be the final sign-off.  Some members of the
     Task Force felt that the AA level Red Border signature was
     important  and was a sure way to get management to focus on
     the rule.  Another way to address this issue is to make rule
     specific decisions on whether Red Border is necessary.  For
     example, if there are no issues at closure, then a Red
     Border is  not necessary.  If program offices need to see
     specific language before final sign-off then a short Red
     Border can be set up.

Uncontrollable Time

     There is a substantial amount of time that is relatively
     uncontrollable in the regulatory development system  (e.g.,
     public comment period, 0KB review, etc.).  This can account
     for up to  six months of time, leaving six months for rule
     development on some CAA regulations.  One item that may need
     to be discussed is the possibility for concurrent OMB review
     to alleviate some of these time constraints.
                                                                4i-

Development Time

     Rules require differing amounts of time for data collection,
     analysis,  comment evaluation, etc.  The time needed for
     these important steps in rule development vary tremendously.
     This needs to be taken into consideration when planning
     schedules.
                               14

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Regulatory Negotiation

     OAR has had good experiences  with regulatory negotiation and
     many of the CAA regulations nay  fit the criteria  for
     negotiated rulemaking.   The Regulatory Negotiation staff in
     OPPE has begun some preliminary  work to determine which
     rules qualify and will  contact OAR with their suggestions.

Workgroup Rewards

     Since workgroup participation is a major aspect of the
     regulatory development  process and "good" participation
     improves rulemaking, the Task Force felt that the idea of
     providing rewards to good and helpful participants would
     facilitate the rulemaking effort.  The unresolved questions
     are where the rewards would come from and who would be
     responsible for granting them.   One suggestion is that since
     these regulations are Agency  products, the  rewards should
     come from an Agency pool dedicated to the CAA regulations.
     Responsibility for granting rewards could rest with OPPE
     since it represents a cross-Agency perspective and manages
     the rule development process.

Resources and Staffing

     The Task Force felt that it was  necessary for all offices
     within the Agency to begin doing staffing analysis so they
     can plan for the upcoming regulatory development  load.  In
     addition to OAK, at least OGC and OPPE would be faced with
     significantly increased workloads related to promulgation of
     CAA regulations.

State Involvement

     States have been providing input concerning the CAA
     regulations through the CAA Title workgroups that OAR set up
     to deal with the different titles of the statute. They also
     will be participating through their associations
     (STAPPA/ALAPCO).
                               15

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               SUMMARY OF RECOMMENDATIONS

     This section provides a summary of  the Task Force's
     recommendations on how the Agency should deal with the CAA
     regulations.
Recommendation il
Recommendation 12
Recommendation 13
Recommendation 14
Recommendation 15
Recommendation 16
Recommendation #7
Recommendation 18
Recommendation 19
Recommendation flO
There should be different regulatory
processes used for different categories of
rules as described in the Report.

OAR should not delay its development of
regulations if other offices have  missed
deadlines or have not responded.

OAR should assure that unresolved  issues are
•levated quickly and do not linger in the
workgroup.

OAR should provide the Deputy Administrator
with monthly reports and briefings on the
status of the CAA regulations.

OAR should begin developing descriptions of
the regulations necessary as a result of the
CAA and circulate these to the other program
offices.  Program offices should provide OAR
a prioritized list of rules in which they
have an interest.

The Steering Committee should have an initial
meeting to classify the CAA regulations
according to the processes described in this
Report.

OAR, with the help of OPPE, should identify,
and begin training in rule development for
the workgroup chairs who will be responsible
for the CAA rules.

The role of the Steering Committee should be
enhanced to encompass issue resolution and/or
•levation.

In those cases where final Agency sign-off is
necessary, workgroup closure should be the
mechanism to do this, unless circumstances
dictate otherwise.

Resource and staffing analyses should be
completed for each office to help plan for
the influx of regulations caused by the CAA.
                                16

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                                                       Appendix A

          FIRST CUT AT CATEGORIZING CLEAN AIR ACT RULES
     Rules with an * may need the next higher level of review.

Rules That Would Use The Streamlined Method

Wonattainment
     Publish area designations and classification (8 months)
     Some of the SIP guidance

Mobile sources
     Revise diesel particulate standard for MY91-94 urban buses
     (6 months}
     Promulgate requirements  for overhauled urban buses (12
     months)
     Promulgate requirements  for clean fuel urban buses (12
     months)
     Promulgate diesel fuel sulfur standard (12 months)
     Promulgate oxygenate banking and trading credits program (12
     months)
     Ban lead in. gasoline (12 months)
     Add idle test to Federal Test Procedure (12 months)
     Revise tailpipe standards for HDE,  LDV and LDT (18 months)
     Revise assembly line audit regs (12 months)
     Tailpipe emission standards (6 months)
     Revisions to warranty program
     Addition of short test procedures to I/M certification (12
     months)

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Air Toxics
     Most of the MACT standards,  after proceudres for determining
     HACT have been devloped.
     Five year RACT, BACT,  LAER - MACT extension

Acid Rain
     Information requirements  for repowering (Jan 1996)
     Twenty year £02 trends report
     Baseline determination calculation method* (12 months)

Rules That Would Use The Core  Workgroup Method

Honattainment
     Some of the SIP Guidance  (36 months)
     Most of the PM10 Control  Technology Guidance's (18 months)
     Most of the VOC Control Technology Guidance's (36 months)
     Marine Vessel Regulation  (48 months)
     Consumer Solvent Study (24 months)
                *
     Consumer Solvent Rule*

Mobile iources
     Set formulation standards for conventional gasoline (24
     monthsJ
     Revise recall program regs (36 months)
     Revise certification regs for fleets (36 months)
     Promulgate revised evaporative requirements for vehicles  (18
     months)

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     Promulgate onboard diagnostic systems requirements for
     vehicles (18 months)
     Revise Federal Test Procedure to account for more real world
     conditions (18 months)
     Promulgate cold temperature carbon monoxide standards for
     vehicles (18 months)
     Promulgate onboard refueling requirements for vehicles (18
     months)
     Guidance on I/M programs (12 months)
     Guidance on transportation control measures (12 months)
     Set total in-use emissions standards  for MY95-98 vehicles in
     severe and extreme ozone nonattainment areas (9 months)
     Specifications for reformulated gasoline in conventional
     vehicles for 9 cities (12 months)

Air Toxics
     MACT standards for source categories  where another office
     has special interest in industry or chemical.
     Petition process to list and delist chemicals
     90% voluntary reduction alternative compliance*
     List of major source categories (12 months)
     »
Acid lain
     Create allowance auction (36 months)
     Establish emission monitoring t tracking (18 months)
     Clean Coal Technology Interpretative  Rule  (12 months)
     Evaluation of trading S02 for NOx (Jan. 1994)

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     Low NOx burner emission rates* (18 months)
     Retrofit NOx emission rates* (Jan. 1997)
     Revise NOx NSPS* (Jan. 1994)
     Revise NSPS for fossil fuel stationary source* (36 months)

Enforcement
     Establish procedures for determining penalties
     Establish field citation program
     Promulgate regulations concerning Citizen Suit Awards
     Revisions to contractor listing regulations.

Rules That Would Use An Accelerated Agency Workgroup

Konattaizunent
     Some of the PM10 Control Technology Guidance's (18 months)
     Some of the VOC Control Technology Guidance's (36 months)
     Some of the SIP Guidance (36 months)

Mobile source*
     Set fuel quality specifications to minimize vehicle
     •missions (36 months)
     Determine available clean fuels for KY99 and later vehicles
     (60 months)
     Set total in-use emissions standards for MY99 and later
     vehicles in severe and extreme nonattainment areas (48
     months)
     Set regs and credits for clean fuel/vehicle fleet program

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     (36 months)
     Promulgate regs redefining useful life for vehicles (36
     months)
     Study on impacts of heavy-duty trading,  banking and
     averaging program for particulate and nitrogen oxide
     emissions (48 months)
     Study of vehicle air toxics (18 months)
     Study of non-road engines and vehicles (24 months)
     Study of non-road fuels
     Promulgate standards to determine availability of clean
     fuels and vehicles (24 months)
     Set federal  and private fleet standards for clean
     fuel/vehicles (24 months)

Air Toxics
     First group  of MACT standards (24 months)
     Residual risk evaluation (60 or 84 months)
     Great Lakes  study (60 months)
                4
     Negligible risk alternative compliance (Feb. 1992)

Vexmits -
     Permitting Guidance

Acid main
     Acid Rain permit program including excess emission fee
     system (18 months)

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pules Requiring Deputy Administrator Oversight

Mobil* Sources
     Establish clean fuel vehicle program including establishing
     annual emission reduction requirements,  determining fuel
     availability and establishing 9 city program.

Air Toxics
     First MACT standard (24 months)

Permits
     Permit Program (12 months)

Acid Rain
     Establish allowance system including criteria for electing
     into allowance system (18 months)

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                                                 Appendix B

           PROCESS FOR THE STREAM UN ED METHOD

     8TZP 1    OAR completes expanded SAR and submits to Steering
               Committee  for agreement on process to be used.

     STEP 2    OAR develops regulation without a formal
               workgroup.  OAR will bring in relevant technical
               or legal expertise from other offices when needed.

     STEP 3    OAR circulates draft rule to other AAs within
               agency  for comment but aot concurrence.  AAs have
               2  weeks to respond.

     STEP 4    OAR will develop a short memo that describes how
               they dealt with the major internal agency comments
               and circulate it to the AAs.

               Other offices can raise issues to the AA/OAR if
               they feel  OAR has improperly overlooked their
               comments.   OAR will then schedule a meeting with
               the Administrator or DA.

               OAR incorporates relevant comments and sends  (via
               OPPE) to 0KB for review4 (60 Day review).

     STEP 5    OAR briefs the Administrator or DA in an open
               meeting on the regulation, if accessary, prior to
               signature.

               The Action Memo to the Administrator must contain
               those significant issues raised by other offices
               but not incorporated by OAR.

               Administrator signs regulations  (2-4 weeks).
               *
     STEP €    Package sent to Federal Register.  Public comment
               period  (2  months).

     STEP 7    OAR analyzes comments, drafts final rule.

     STEP •    OAR circulates draft final rule to other AA's for
               comment, aot concurrence.  AA's have 2 weeks to
               respond.
     4     0KB review period  is 60 days for major NPRMs, 30 days
for major Final rules and  10 days for all other actions.

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STEP t    OAR will develop a short nemo that describes how
          they dealt with the major internal agency comments
          and circulate it to the AAs.

          Other offices can raise issues to the AA/OAR if
          they feel OAR has improperly overlooked their
          comments. OAR will then schedule a meeting with
          the Administrator or DA.

          OAR incorporates relevant comments and sends (via
          OPPE) to 0KB for review*.

STEP 10   OAR briefs the Administrator or DA on the
          regulation, if necessary, prior to final
          signature.  Administrator signs final rule (2-4
          weeks).

          Action nemo to the Administrator must contain
          those significant issues raised by other offices
          but not incorporated by OAR.

STEP 11   Final rule sent to FR.

24-30 weeks of total time is uncontrollable by EPA.
     See footnote 3.

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      PROCESS FOR CORE WORKGROUP METHOD

8TEP 1    OAR prepares expanded  SAP.

•TZP 2    Rule comes to Steering Committee  for workgroup
          assignments and designations.  Steering Committee
          •ets up a "core" group for  formal concurrence, and
          information group who  will  receive packages, can
          make comments, but will not participate in the
          final concurrence sign-off.

•TEP 3    Workgroup develops regulation.

          OAR'c workgroup chairs will quickly raise any
          unresolved issues through their management and
          their Steering Committee representative.  The
          Steering Committee must be  given  one week notice
          if OAR plans to bring  an issue before  it.  The
          Steering Committee must resolve the issue at this
          point (failure to get  to the AA or to  get a
          decision cannot hold up the rule).  If Steering
          Committee can't resolve the issue, OAR will
          schedule a meeting for the  DA  or  include it on the
          agenda for the monthly CAA  meeting with the DA to
          get resolution.  AAs from interested offices can
          attempt to resolve the issue before the DA's
          meeting.

STEP 4    OAR goes to workgroup  closure.  Core members
          (representing their AAs) are the  only
          participants.  This will be the final  sign-off of
          the Agency package and signature  by the
          representative of the  office will constitute final
          office level position.

STEP 5    OAR sends rule to OMB  for review*.

•TEP 6    OMB clears regulation.  Administrator  signs rule
          (2-4 weeks).

8TEP 7    Package sent to FR, public  comment period  (2
          months).

•TZP •    OAR analyzes comments, workgroup  drafts final
          rule.

STEP 9    OAR briefs Steering Committee.  Steering Committee
          determines any streamlining processes  (e.g.,
          skipping workgroup closure).
     See footnote 3.

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STEP 10   OAR's workgroup chairs vill  quickly raise any
          unresolved issues through their Steering Committee
          representative.  The  Steering Committee must be
          given one week notice if OAR plans to bring an
          issue before it.   The Steering Committee must
          resolve the issue at  this point (failure to get  to
          the AA or to get a decision  cannot hold up the
          rule).  If Steering Committee can't resolve the
          issue, OAR will schedule a meeting for the DA to
          get resolution.  AAs  from interested offices can
          attempt to resolve the issue before the DA's
          meeting.

•TEP 11   OAR goes to workgroup closure.  Core members
          (representing their AAs)  are the only
          participants.  This will be  the final sign-off of
          the Agency package and signature by the
          representative of the office will constitute final
          office level position.

          In the event that there are  BO significant issues
          raised during the comment period or by the Agency,
          the rule may be able  to skip STEPS 10 and 11.  If
          so, the rule gets Agency clearance (workgroup
          closure or RB)  (2 weeks), and OAR sends to OPPE
          for OMB review7.

STEP 12   OMB clears rule.   Administrator signs (2-4 weeks)
          and sends to the FR.

26-32 weeks uncontrollable time.
     See footnote 3.

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                    PROCESS FOR
    ACCELERATED AGENCY WORKGROUP METHOD

STEP 1    OAR develops expanded SAR.

STEP 2    Kule cones to Steering Committee for workgroup
          assignments and designations.  Steering Committee
          sets up a  workgroup and determines process.

STEP 3    Regulatory Scoping meeting (optional)

•TIP 4    Workgroup  develops regulation.

          OAR'c workgroup chairs will quickly raise any
          unresolved issues through their Steering Committee
          representative.  The Steering Committee must be
          given one  week notice if OAR plans to bring an
          issue before it.  The Steering Committee must
          resolve the issue at this point (failure to get to
          the AA or  to get a decision cannot hold up the
          rule).  If Steering Committee can't resolve the
          issue, OAR will schedule a meeting for the DA to
          get resolution.  AAs from interested offices can
          attempt to resolve the issue before the DA's
          meeting.

STEP 5    OAR goes to workgroup closure.  Workgroup members
          (representing their AAs) provide final
          concurrence.  This will be the final sign-off of
          the Agency package and signature by the
          representative of the office will constitute final
          office level position.

STEP 6    OAR sends  rule to 0KB for review*.

STEP 7    OKB clears regulation.  Administrator signs rule
          (2-4 weeks)

STEP 8    Package sent to FR, public comment period  (2
          months).
STEP 9    OAR analyzes comments, workgroup drafts final
          rule.

STEP 10   OAR briefs Steering Committee.  Steering Committee
          determines any streamlining processes.
     See footnote 3.

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STEP 11   OAR'c workgroup chairs will  quickly raise any
          unresolved issues through their Steering Committee
          representative.  The Steering Committee oust be
          given one week notice if OAR plans to bring an
          issue before it.  The Steering Committee must
          resolve the issue at this point (failure to get to
          the AA or to get a decision  cannot hold up the
          rule).  If Steering Committee can't resolve the
          issue, OAR will schedule a meeting for the DA to
          get resolution.  AAs from interested offices can
          attempt to resolve the issue before the DA's
          meeting.

STEP 12   OAR goes to workgroup closure.  Workgroup members
          (representing their AAs) provide final
          concurrence.  This will be the final sign-off of
          the Agency package and signature by the
          representative of the office will constitute final
          office level position.

          In tbe event that there are  BO significant issues
          raised during the comment period or by the Agency/
          the rule Bay be able to skip STEPS 10 and 11.  if
          so, the rule gets Agency clearance (workgroup
          closure or KB) (2 weeks), and sends to OMB for
          review (30 days).

STEP 13   If no changes from proposal, rule gets Agency
          clearance (workgroup closure or RB) (2 weeks), and
          OAR sends rule to OPPE for OMB review'.

STEP 14   OMB clears rule.  Administrator signs (2-4 weeks)
          and sends to the FR.

26-32 weeks of uncontrollable time.
     See footnote 3.

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                    PROCESS FOR
     DEPUTY ADMINISTRATOR OVERSIGHT METHOD

•TIP 1    OAR prepares expanded  BAR.  Steering Committee
          sets up a agency workgroup.

•TEP 2    Regulatory Scoping meeting

          DA has first AA level  meeting on the regulation to
          provide initial guidance, develop a procedural
          strategy including specific schedule, and
          determine next steps.

1TEP 3    Agency workgroup begins development of the
          regulation.   OAR raises unresolved issues to
          Steering Committee quickly for  resolution or
          further elevation.

          DA meeting for status  report and issue resolution.
          This should occur as regulation approaches
          closure.

STEP 4    When draft is complete, DA open meeting acts as
          workgroup closure mechanism.  The DA group will be
          the final sign-off in  most cases.
                          10
STEP S    Rule sent to OMB

STEP C    OMB clears rule and Administrator signs proposal
          (2-4 weeks).

STEP 7    Rule sent to FR.   Public comment period (2
          •onths).

STEP 8    OAR analyzes comments.

          DA meeting to discuss possible changes as a result
          of comments.  Provides  guidance and direction.
          (Depending on the significance of the comments,
          this meeting may not be necessary.)

STEP t    It no major changes from proposal, rule proceeds
          to OMB after DA meeting concurrence.  If changes.
          see STEPS 3 and 4.
10
     See footnote 3.

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                    ,11
•TEP 10   OMB review
STEP 11   Administrator signs final rule and sends to FR  (2-
          4 week).
26-32 weeks of uncontrollable tine.
     See footnote 3.

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                                                           Appendix D


                   CLEAN AIR ACT IMPLEMENTATION  TASK FORCE


      Chairperson - Michael  Shapiro,  Deputy Assistant Administrator
                     for Air and Radiation -  382-7403

      Co-Chair     - Gary Katz,  Office of  Policy,  Planning and
                     Evaluation - 382-4407


      orrzcs or AIR AKD RADIATION

      Larry WeinstocJc (ANR-443)
      Special Assistant
      Office of Air i Radiation
      382-2632

      John Cabaniss (AKR-445)
      Policy Analyst
      Office of Mobile Sources
      382-7645

      Ton Eagles  (ANR-445)
      Regulatory  Impact Analyst
      Office of Policy Analysis & Review
      382-5585

      John Schakenbach (ANR-445)
      Acid Rain Staff
      Office of Atmospheric  I Indoor  Air  Programs
      475-8545

      William Gunter  (ANR-460)
      Criteria  &  Standards Division
      Office of Radiation Programs
      475-9603

      John Bachmann (MD-11)
      Environmental Engineer
      OAQPS -.Immediate Office
      Research  Triangle Park, NC  27711
      ITS 629-5359

      Mike Tnitna (MD-15)    Permit ting
      Chief, Air  Toxics Programs Section
      OAQPS
      Research  Triangle Park, NC  27711
      FTS 629-5345

      Robert Kellan (MD-13)   BISBAP8
      Chief, Pollutant Assessment Branch
      OAQPS
      Research  Triangle Park, NC  27711
      FTS 629-5647

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Ton Helms (MD-15)   Noaattaiaaent
Chief, Ozone/CO Projects Branch
OAQPS
Research Triangle Park, NC  27711
       OF ENFORCEMENT AND COMPLXXNCE MONITORING

Michael Alushin (LE-134A)
Associate Enforcement Council
  for Air Enforcement
382-2820
omcE or SOLID WASTE AKD EKERQENCY RESPONSE

Elizabeth LaPointe (OS-110)
Director, Policy Analysis I External Affairs  Staff
382-4617

Elaine Davies (OS-120)
Director, Chemical Accident Prevention Staff
475-8600
orricE or PESTICIDES AND TOXIC SUBSTANCES

Judy Nelson (TS-788)
Director, Regulatory Coordination Staff
382-2890
orricE or GENERAL COUNSEL

Tin Williams (LE-132A)
Attorney-Advisor (Air)
382-7636
orrici or WATER

Jin Horn (WH-556)
Director, Water Policy Office
382-7818

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OFFICE 07 RESEARCH AND DEVELOPMENT

Peter Preuss (H-8105)
Director, Office of Technology Transfer
  and Regulatory Staff
382-7669
OFFICE Or POLICY, PLANNING AND EVALUATION

Alex Cristafaro (PM-221)
Director, Air ft Energy Policy Division
382-5490
REGIONAL OPERATIONS AND STATE/LOCAL RELATIONS

Judith Gleason (A-101)
Associate Adninistator
245-3870

Brenda Greene (H-1502
Regional Coordinator
245-3870
Too Haslaney, Director
Air Management Division
EPA - Region III (3AMOO)
841 .Chestnut Bldg
Philadelphia, PA  19107
FTS 597-9390

Dave Kee, Director
Air & Radiation Division
BPA - Region V (5AR-26)
230 S. Pearborn St.
Chicago, ZL  €0604
FTS 353-2212
Bob Hannesschlagtr
Acting Director, Air, Pesticides
  tnd Toxics Division
BPA • Region VI
1445 Ross Ave. Suit* 1200
Dallas, TX 25202-2733
ITS 255-7200

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   .
.   •- •   *
  t^"TV •*>
                Irv Dicfcstein, Director
                Air & Toxics Division
                EPA - Region VIII (8AT)
                999 18th St.
                Denver Place - Suite 500
                Denver, CO  80202-2405
                FTS 330-1438


                OFFICE OF PLANNING AND POLICY EVALUATION

                Dan Fiorino
                Deputy Office Director, Office of Policy Analysis
                382-4034

                Paul  Lapsley,  (PM-223)
                Director,  Regulation Management Division
                362-5480

                Scott  Furlong,  (PM-223)
                Regulatory Development  Branch
                382-7202                                  •

                Cornellius  Xervin
               Dean, School of Public  Affairs
               The American University
                685-2941
                                                  IT. S.  Environmental
                                                  ". •: ,,-n 5,  Library ; '
                                                    "' "•. Dearborn St-.
                                                      -D, IL  60604

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