100R86101
Agency
Operating Guidance

FY 1987
March 1986

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                             PREFACE
     The FY 1987 Agency Operating Guidance updates the FY 1986-87
Operating Guidance published in February 1985.  It reflects the
Administrator's Management Plan and the Agency's FY 1987 Priority
List, which follow, as well as the priorities of each of the
Assistant Administrators.  The Guidance highlights the changes in
direction and emphasis since last year and provides the Regions
and States directions for planning and executing environmental
programs.

     The Guidance was compiled by the Office of Policy, Planning
and Evaluation with the Headquarters media program offices and
the Office of External Affairs preparing individual sections.
Valuable input and comments were received from the Headguarters
program and staff offices, Regions and States.  Our sincere thanks
to the many individuals who helped develop the final document.

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                        TABLE OF CONTENTS
  I.   INTRODUCTION

       A.  Administrator's Overview

       B.  Agency Priority List



 II.   PROGRAM OPERATING GUIDANCE

       A.  Office of Air and Radiation

       B.  Office of Water

       C.  Office of Solid Waste and Emergency Response

       D.  Office of Pesticides and Toxic Substances

       E.  Office of External Affairs
III.   APPENDIX:  STRATEGIC PLANNING AND MANAGEMENT SYSTEM
                  FY 1987 MEASURES

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                     ADMINISTRATOR'S OVERVIEW
Administrator's Management Plan

     Over the last year, I have developed a six-point management
plan for the Agency.  The plan contains the management goals I
have set for my term as EPA Administrator.  While I have fre-
quently discussed these goals over the past year, I want to re-
affirm them here.  Along with the FY 1987 Priority List, which
follows, they form the basis for the FY 1987 Agency Operating
Guidance.

     First and foremost, we must continue implementation of EPA's
basic programs with a focus on achieving environmental results.
We will continue to use the management system developed in recent
years to help us identify our most significant problems, decide
how to resolve them, and measure our success.  We want to refine
the system, however, to improve our ability to link our activities
to environmental results.  In the past year, we initiated a stra-
tegic planning process to help us develop long-term plans for
resolving environmental problems.  Through the process we hope to
broaden our traditional Headquarters and media-specific perspective
on environmental problems and solutions.  We are currently develop-
ing plans to address wetland, hazardous waste, air toxic, estuary
and near coastal water, and agricultural chemical in ground water
problems.  Over the next several years, we will develop strategic
plans for all our major environmental problems.  In the future,
these strategies will significantly shape our annual operating
guidance and budget priorities.  Our management system will track
our success in implementing our plans and solving our environmental
problems.

     My second goal is to ensure a strong enforcement presence in
all of our Agency programs.  It is extremely important that we
maintain a vigorous enforcement and compliance program which is
fully integrated into each media program and which addresses
localized environmental problems.  We should make balanced use of
all our enforcement tools—administrative, civil, and criminal
actions—and follow-up to determine how effective we have been in
achieving compliance.  The Regions should continue to make up-front
State/EPA enforcement "agreements."  These agreements should in-
clude expectations for timely and appropriate enforcement response,
the appropriate use of penalties and other sanctions, and essential
communications among all parties involved in enforcement.  We
must also work with the regulated community to encourage voluntary
compliance and to improve environmental management through such
initiatives as environmental auditing.  Where other efforts fail,
EPA must, of course, be ready to step in as needed to take the
aggressive enforcement steps necessary to protect public health
and the environment.

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     Third, we must continue to decentralize our programs and
delegate authority to the Regions and States and others where it
makes sense to do so.  Over the last couple of years, the Regions
have made significant strides towards managing for environmental
results.  Last year, we began working with several States to
analyze environmental problems using advanced risk assessment and
analytic tools.  We must continue to work with the Regions and
States to help them develop and implement innovative programs for
achieving environmental results as quickly and efficiently as
possible.  We must also change longstanding practices that impede
delegation and adopt policies that are supportive of Regional and
State initiatives to manage for environmental results.  We must
also remember our responsibility to work with tribal governments
to develop programs to address environmental problems on Indian
lands.

     It is important to recognize, however, that properly imple-
mented decentralization does not diminish the Federal role.  Ef-
fective decentralization provides a clear definition of roles to
be played by Regional, State and other authorities.  It promotes
efficiency and a system of mutual support.  We must provide timely
guidance and technical assistance to those to whom we delegate
authority.  We must also constructively oversee their efforts to
make sure they have the necessary legal and regulatory authorities
and are carrying out their responsibilities.

     My fourth goal is to maintain our scientific credibility and
identify research priorities as part of our program planning.  We
need to establish and maintain a strong quality assurance program
for our extensive environmental data collection activities in order
to ensure that our environmental data are of known and reliable
quality.  An aggressive quality assurance program will strengthen
the scientific and technical underpinnings of our program and
regulatory decisions.  Also critical to our success is our ability
to attract and keep good scientists.  To the extent possible, we
need to provide opportunities for promotion and scientific recog-
nition as well as necessary state-of-the-art equipment.

     My fifth goal is to reach out to the public and interested
parties.  The American people have made clear they want to be
involved in critical environmental debates.  We need to explain
to them what we are trying to do and why.  We must listen and
respond to their concerns.  We must earn their confidence.  Our
continued success is dependent upon strong public support.  The
Agency has made progress in reaching out to concerned citizens
and affected parties such as small businesses, but needs to
expand these efforts in the future.

     My  last goal is perhaps the most important.  We must invest
more in the human resources that are so essential to the performance
of our programs.  Any progress we make rests on the successes of

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individuals.  The people at EPA and in -State and local governments
who are dedicated to achieving our environmental goals must be
given the necessary support and opportunity to achieve their very
best.  Too often in the government we give short shrift to personnel
matters.  I will do all I can to improve and enhance individual
growth and career opportunities through professional development,
individual mobility, and opportunities to participate in the
decision-making process.

     Finally, as we implement ray six-point environmental management
plan, we must continue to look beyond our national boundaries.  We
have always been a leader with respect to environmental programs.
We must continue to give attention to our work with other nations
to promote sound environmental practices worldwide.  We will
cooperate with our neighbors to correct border difficulties and
will participate in multinational organizations to address global
threats like ocean and air pollution or dangers to the stratospheric
ozone layer.  We will exchange with other nations regulations,
standards, management techniques, technologies and research.
Furthermore, EPA will attempt to harmonize pollution control
standards so as to prevent trade barriers or "pollution havens"
where manufacturers might compete unfairly with U.S. firms who
often, at great expense, comply with EPA regulations.


Agency Priority List

     As Administrator, I have to decide what programs come first
among the many significant programs we are responsible for
implementing.  For the third year in a row, we have developed an
Agency Priority List (see tab) to communicate to EPA, State and
local program managers those problems and activities which deserve
most of their time, energy and resources.  The list relects the
recommendations of Headquarters, the Regions and States.  It
identifies the work I consider most important for EPA and our
State and local partners if we are to achieve our environmental
goals.

     The operating guidance identifies what Headquarters, Regions
and States should do in the priority areas and translates those
activities into Strategic Planning and Management System (SPMS)
measures.  I endorse the priorities on the 1987 Agency Priority
List and will track progress against the SPMS measures for those
areas very closely.

     The Agency Priority List is not intended to include everything
EPA and its State and local partners must do to fulfull various
statutory or judicial requirements.  In fact, a number of those
nondiscretionary activities are not included on the list.  The
Regions and States should address those other activities in accor-
dance with each Assistant Administrator's program guidance.

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Priority List

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                   AGENCY PRIORITY LIST FOR FY 1987
1.  Reduce risks from exposure to existing pesticides and toxic
    chemicals.

    a.  Reduce risks from existing pesticides.  Accelerate the review
        of existing pesticides through the registration standards
        process.  Conduct Special Reviews when the potential for
        unreasonable adverse effects is present.

    b.  Reduce risks from existing toxic chemicals.  Emphasize the
        review of categories of chemicals and an exposure-based
        program to identify, test and control existing chemicals
        posing significant risk.

    c.  Improve ground water protection.  Support the development of
        State programs and methods to address uncontrolled sources
        of contamination.  Give priority to contamination from
        hazardous waste, underground storage tanks and agricultural
        chemicals.

    d.  Control drinking water contaminants.  Implement VOC NPDWRs,
        monitor unregulated contaminants, and promulgate additional
        standards.  Expand the health advisory program in support of
        RCRA waste banning decisions, Superfund cleanup activities,
        and control actions for agricultural chemicals.  Work with
        the States to ensure compliance with existing standards.


2.  Reduce risks from disposal of hazardous waste and stabilize
    imminent threats from uncontrolled hazardous waste sites.

    a.  Require proper management of permitted hazardous waste
        facilities.  Continue to promulgate RCRA regulations and
        guidelines, take corrective action at solid waste management
        units, and issue Part B permits.  Increase enforcement actions
        to obtain compliance.  Give highest priority to enforcing
        against Class I violations at land disposal facilities.

    b.  Control releases of uncontrolled hazardous waste.  Stabilize
        imminent threats, complete Superfund RI/FS and RCRA Corrective
        Action plans, and initiate site clean-up.  Pursue cost recovery
        where Fund expenditures are involved.

    c.  Support development of additional hazardous waste treatment
        and disposal capacity.  Promulgate regulations and issue
        permits that encourage alternatives to land disposal.
        Address public concerns about the siting of these facilities.

    d.  In coordination with the  States, focus underground injection
        control permits and enforcement efforts on existing facilities
        that present the greatest threat to underground sources of
        drinking water.  Undertake a review of underground injection
        of hazardous wastes and initiate appropriate control actions.

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3.   Reduce exposure to unhealthy air quality conditions,  both indoors
    and outside, giving highest priority to the control of hazardous
    air pollutants.

    a.   Control air toxics.   Continue to implement the national
        strategy to improve  preparedness and response capability
        to accidental emergency releases.  Increase State and local
        agency capacity to address air toxics problems.  Accelerate
        Federal development  of NESHAPs, controls for toxic fuel
        additives and diesel vehicles, and controls for TSDFs.

    b.   Coordinate with the  States to take necessary actions,
        including enforcement against significant VOC sources, to
        reduce ozone levels  in areas that will not meet the 1987
        attainment deadline.

    c.   Continue development and implementation of an assessment and
        mitigation program for radon.

    d.   Overhaul national air pollution controls for particulate
        matter.  Implement the PM^g standard designed to protect
        against the most severe particulate health impact.  Adopt
        strong State implementation Plans to control these particles.

    e.   Strengthen technical assistance and support development of
        State contractor licensing and certification programs to
        promote effective remedial actions for asbestos in schools
        and public buildings.  Implement and enforce asbestos NESHAPs.


4.   Maintain and improve water quality by addressing point and
    nonpoint sources of pollution.

    a.   Take every possible  action with the States to meet the July
        1, 1988 deadline under the National Municipal Policy.  Fully
        implement and enforce pretreatment requirements.

    b.   Focus on critical water quality problems.  Implement nonpoint
        source programs and  develop and incorporate toxics criteria
        into State water quality standards.  Work through the States
        to reissue NPDES major and environmentally significant
        minor permits.  Enforce permits and use whole effluent toxicity
        monitoring and limits where necessary.

    c.   Protect near coastal waters.  Design and implement a program
        to protect these waters from further degradation.  Restore
        the most valuable estuaries to acceptable water quality.
        Address the impacts  of sludge disposal and ocean dumping
        beyond the estuarine zone.

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5.   Reduce damage to sensitive environmental areas.

    a.  Protect wetlands.   Implement aggressively the Section 404
        program.  Enforce  against unpermitted dischargers, expand
        the use of Advanced Designation for priority wetlands, and
        take other steps as appropriate.

    b.  Address acid deposition and other issues concerning the
        long range transport of air pollutants.   Evaluate damage
        to lakes and forests through the  acid deposition research
        and analysis program.   Complete work with the States on
        standby regulatory mechanisms to  control sources.  Evaluate
        the stratospheric  impacts of chlorofluorocarbons (CFCs).

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Office of
Air and Radiation

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                        TABLE OF  CONTENTS

I.      INTRODUCTION  	     1
II.     STRATEGY FOR THE AIR QUALITY  PROGRAM
       A.   Major Program Goals and  Objectives   	     1
       B.   Program Strategy for FY  1987	     2
III.    GUIDANCE FOR THE AIR QUALITY  PROGRAM
       A.   Air Toxics	     7
           1.   National Regulations   	     7
           2.   State and Local Air  Toxics  Programs  ....    10
           3.   Multi-media, Multi-source  Problems   ....    12
       B.   National Ambient Air Quality  Standards  Attainment
           1.   State Implementation  Plan  Corrections    .  .    17
           2.   Stationary Source  Compliance  	    17
           3.   Motor Vehicle Controls   	    19
           4.   New Particulate Plans	    20
           5.   Revisions to Standards	    21
       C.   State and Local  Agency Programs
           1.   National Air Audit System	    26
           2.   Grants  Management  	    26
           3.   New Source Review	    27
           4.   Air Monitoring	    27
       D.   Acid Deposition, Ozone Depletion,  and Indoor Air
           1.   Acid Deposition	    31
           2.   Ozone Depletion	    31
           3.   Indoor  Air	    32

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                    TABLE OF  CONTENTS  (CONT.)


      E.    Maintain Air Quality
           1.   New Source Performance  Standards  	    33
           2.   Continuous Compliance Programs.  ......    34
           3.   Visibility Programs  	    34
IV.   STRATEGY FOR THE RADIATION PROGRAM	    36
V.    GUIDANCE FOR THE RADIATION PROGRAM
      A.   Reduced Exposures  	    36
      B.   Surveillance and Emergency Response  	    39

VI.    SUPPLEMENTAL GUIDANCE  	    41

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                   OFFICE OF AIR AND RADIATION
I.
INTRODUCTION
This FY 1987 guidance updates the national  strategies,  goals,  and
objectives developed in FY 1986 for the air quality and radiation
programs.   The guidance also identifies the actions that the
Environmental Protection Agency (EPA) and state and local  agencies
must take  in FY 1987 to implement these updated goals and  objectives.
The FY 1987  guidance is based on overall EPA goals, the Administra-
tor's priority
FY 1987 budget
          list and six-point
          request for EPA.
management plan, and the President's
The FY 1987 guidance for the air quality program and the radiation
program consists of three parts.  The first part identifies the up-
dated national goals and strategy for each program and summarizes
the changes from the FY 1986 strategy for meeting the revised goals.

The second part describes program objectives for each goal and
lists the specific  actions that must be taken by EPA and by state
and local agencies  in FY 1987 to carry out the national strategy.
Actions are divided into two tiers according to national priorities
and projected environmental results.  Tier 1 actions are the
 highest  priority,  followed by Tier 2.  Some actions not listed in
 either  tier may  be a  high  priority  at  the  state  or  local  level,
 but  not  at  the  national  level.

 In carrying out  the actions described  in  the  FY  1987  guidance,  EPA
 will  continue to  ensure  that  its  air and  radiation  programs  are
 conducted  openly,  accurately,  and  fairly.   EPA  will  use the
 Communications  Strategy  Plan  process,  coordinated  by  the  Office
 of External Affairs,  to  inform  the  public  of  all  major  regulatory
 decisions  and actions.
 II.   STRATEGY  FOR  THE  AIR  QUALITY  PROGRAM  FOR  FY  1987

 A.   Major Program  Goals  and  Objectives

 The  updated  EPA  strategy for the  national  air  quality  program  in
 FY  1987 is  based on  five major  program  goals.   These  goals  are
 listed  below in  the  general  order  of  priority.

 0   Reduce the  risk of  exposure  to  air toxics.   EPA  will  implement
    a comprehensive national  strategy, announced  in  June  1985,  to
    address  the significant public  health problem  caused  by  toxic
    compounds in  the  air.

 0   Achieve  National  Ambient  Air Quality Standards (NAAQSs)  set to
    protect public health.
    achieving healthful  air
                       EPA will  place  the  highest
                       quality  for  the 80  million
                     priority  on
                     people  that

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   1ive in 35 major urban  areas  that  will  probably  not  meet the
   ozone standard  by the  December  1987  attainment  deadline  in  the
   Clean Ai r Act.

°  Increase  the  capacity  and  improve  the  effectiveness  of  state
   and local air quality  agencies.   EPA will  continue to  work
   toward a  stronger,  more effective  partnership  with state and
   local agencies  and  help them  improve their capabilities  to
   address air quality problems.

°  Determine the policy alternatives  and  strategy  options  available
   to address acid deposition, stratospheric  ozone depletion,  and
   indoor air pollution.   EPA will  provide federal  leadership  in
   developing national policies  to address these  three  major
   environmental problems.

0  Develop and support programs  to maintain improvements  in air
   qua!ity.  EPA will  carry out  national  standard-setting and
   compliance programs to ensure that gains made  in improving  air
   quality are not lost.

B.  Program Strategy for FY 1987

1. Reduce risk of exposure to air toxics

In FY  1987 EPA will continue to  better define the nature  and
magnitude of the air toxics problem and to develop and  strengthen
the regulatory options for dealing with the problem.  In  June  1985
EPA completed a comprehensive national strategy for addressing
both  routine and accidental releases of air toxics.  Also in  1985,
EPA began developing a Strategic Planning Initiative that will
provide  a more detailed multi-year, Agencywide plan for addressing
air toxics.  One of the objectives in developing  the Strategic
Planning  Initiative is to define the appropriate  links  between
programs  for routine and accidental releases in both the  near-term
and long-term.  A second objective is to examine  the roles of  EPA
and state and local agencies in  prevention and contingency planning
for accidental releases of air  toxics.  A third objective is  to
 identify  the public outreach activities necessary to improve  under-
 standing  of  health  effects, risk assessment, and existing law and
 regulation.

 This  portion of the Agency Operating Guidance will deal with
 routine releases  of air toxics.  Accidental  releases are covered
 in the portion of  the  guidance  prepared by the Office of Solid
 Waste and Emergency Response.   The routine releases portion of
 the  EPA air  toxics  strategy includes three major elements:  an
 enhanced  and  refocused federal  air toxics control  program to
 address problems  that  are  national in  scope, a new program to
 help  state  and  local  governments strengthen  their  capabilities        f
 to deal  with  air  toxics problems within their boundaries, and an      ™
 expanded  effort to  devise  strategies to reduce risks from multi-
 media, multi-source pollutants  in  specific geographic areas.

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Federal  air toxics program.   In FY 1987 EPA will  use its  authorities
under the Clean Air Act and  other federal  statutes to regulate air
toxics.   EPA will  carry out  a more aggressive program for listing
and regulating toxic air pollutants under  section 112 of  the Clean
Air Act.  In addition to publishing regulatory decisions  for 8-12
individual  pollutants, EPA will also decide whether to regulate
emissions by source category (e.g., incinerator emissions)  for
sources  that emit  more than  one toxic air  pollutant.

In FY 1987  EPA will have National  Emission Standards for  Hazardous
Air Pollutants (NESHAPs) under development for 13 hazardous pollu-
tants, more than in any previous year.  EPA will  continue to give
high priority to administrative, civil, and criminal enforcement
of existing NESHAPs  for asbestos and vinyl chloride.  In  FY 1987
EPA also will develop a compliance and enforcement  strategy for
the benzene NESHAPs.

EPA will use its authorities under Title  II of the Clean  Air
Act to  regulate air toxics from motor vehicles and  vehicle fuels.
In FY 1987 EPA will develop test protocols for assessing  the
health  effects  of  alternative  fuels and fuel additives as part of
EPA's fuels and fuel  additives  registration process.  EPA will
also  given high priority  to technology assessments  for particulate
controls for heavy-duty diesel  engines to  help ensure that manu-
facturers  meet  the  technology-forcing standards that start becoming
effective  with  the  1988 model  year.

EPA  will also  regulate  air  toxics  under the Resource Conservation
and  Recovery Act  (RCRA).  In  FY  1987  EPA  will  continue development
of  regulations  required by  RCRA for  controlling  toxic air  emissions
from  seven  types  of  hazardous  waste  treatment, storage,  and dispo-
sal  facilities  (TSDFs).

EPA's Regional  air programs  staff  will continue  to  coordinate  with
their counterparts  in  the Regional  hazardous  waste  programs to
ensure  proper  consideration  of air  quality  in  the  clean-up  of
Superfund  sites and  the issuance  of  RCRA  permits.

State and  local air  toxics  program  support.   In  FY  1986  EPA will
assist  state  and  local  governments  in  strengthening their  existing
air  toxics  programs  and in  establishing programs  where none exist.
EPA  will  provide  guidance on  the  design and  implementation  of  air
toxics  programs and on  technical  aspects  of  programs, such  as  air
sampling,  dispersion modeling, and  emission  inventories.   In  addi-
tion, EPA  will  provide  guidance on  how State  Implementation Plan
 (SIP) measures  for control  of volatile organic compounds (VOCs)
and  particulate matter  can  be used  to gain additional reductions
in  air  toxi cs.

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In FY 1987 EPA will  work  with  states  to  complete  evaluation  and
control  of the toxic air  pollutants  and  high-risk source cate-
gories identified by EPA  in FY 1986.   EPA will  also  continue to
assist state and local  agencies in assessing and  controlling
other high-risk air toxics sources which they identify.   In  addi-
tion, EPA will help state and  local  agencies strengthen  their
overall  capabilities to assess and control high-risk sources.

To implement effective air toxics control programs,  the staff in
some state and local agencies  may have to develop new skills and
expertise.  EPA will assist in staff development  by  providing
technical guidance and workshops and by facilitating the transfer
of experience among agencies.

Multi-media, multi-source strategies.  EPA currently has underway
three studies in Philadelphia, Baltimore, and the Santa Clara
Valley of California to learn  how best to consider multi-media,
multi-source interactions in controlling localized toxics problems.

In FY 1987 EPA will provide state and local agencies with financial
and technical support for follow-up studies in 8-10 additional
geographic areas.

2.  Achieve NAAQSs nationwide

Nationwide, air quality has generally improved as a result  of
federal  technology-based standards for vehicles and stationary
sources and the control measures in SIPs.  Despite these improve-
ments, air quality in many areas still will not meet the NAAQSs
for ozone, carbon monoxide, sulfur dioxide, particulates, or lead
in FY 1987.

Ozone reduction.  Achieving the NAAQS for ozone is one of EPA's
highest priorities.  In FY 1986 EPA will develop an aggressive
strategy  for reducing ozone levels in the areas still remaining
nonattainment after 1987.  The ozone strategy will not be com-
pleted until after the FY 1987 Agency Operating Guidance has been
published in  March  1986.   Supplementary guidance will be necessary.
In general, the  strategy will   consist of three elements:  make
existing  programs work,  require new and tougher  controls, and
implement a  "reasonable  extra  efforts"  program.

Make  existing  programs work.   EPA will  give  high  priority to
correcting  deficient  regulations  in  ozone  SIPs,  fully implementing
stationary  and  mobile  source  controls already  included  in ozone
SIPs, expanding  compliance  efforts  to cover  additional  and  smaller
 VOC  sources,  and tracking progress  in  improving  ozone levels and
 reducing VOC  emissions.   EPA  will  increase the number  of  vehicle
 inspection  and maintenance (I/M)  programs  audited in  FY 1987.   EPA
 will  also aggressively implement  its  vehicle recall  program, empha-   |
 sizing  excessive exhaust and  evaporative hydrocarbon  emissions.       *
 In addition, EPA is considering a VOC compliance initiative that
 would include more comprehensive inspections of  VOC sources, with
 appropriate enforcement  follow-up,  in nonattainment areas.

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Require new and tougher controls.   EPA will  tighten control  of
vehicle refueling and evaporative  emission losses and heavy-duty
exhaust emissions.   States may also have to  adopt and implement
new SIP measures, as well  as tighten existing emission limits and
operating requirements and enhance existing  I/M programs.

Implement a reasonable extra efforts program.  As part of  the ozone
strategy, EPA is considering applying the reasonable extra efforts
approach, developed by Region IX,  to the worst ozone areas in other
parts of the country.  The program includes  more intensive evalua-
tion of the adequacy of existing control measures and the  identi-
fication and testing of new measures.

New SIPs for particulates.  In addition to focusing on reducing
ozone levels in FY  1987, EPA will  also emphasize support to states
developing SIPs to attain the revised NAAQS  for size-specific
particulate matter (PMio)-  Approximately 100 areas will probably
not meet the revised standard, now scheduled for promulgation in
mid-FY  1987.  The population for these areas totals about 20 million
people.  EPA will give highest priority to the PMjQ nonattainment
areas with the most severe problems.  States must submit full
SIPs for these areas within nine months of the promulgation of
the standards.

Other pollutants.  Although the extent of nonattainment for the
ozone and PMjg NAAQSs is the most widespread nationwide, there
are areas which experience severe violations of other NAAQSs,
particular the standards for carbon monoxide and sulfur dioxide.
In these areas EPA will work with states to correct SIP deficien-
cies contributing to the  violations and develop any additional
control  measures necessary.

3.   Strengthen state and  local  programs

EPA will continue to support state and  local air pollution  control
programs by  identifying obstacles to  program effectiveness,  pro-
viding  direct program assistance, facilitating  information  exchange,
and  maintaining  national monitoring  and data management systems.
EPA  will also  continue  active  outreach  and  liaison  with Indian
Tribes, assisting  them  in  identifying  and characterizing  air
quality problems on  Indian  Reservations  and  supporting  Tribal
 governments  in  developing programs  for  dealing  with  these  problems.

 State  and  local  program assessments.   The National  Air  Audit
 System, used to identify  obstacles  to state and local  control
 agency effectiveness and  to help  EPA define more efficient  and
 meaningful national programs,  will  continue on  the biennial cycle
 begun in FY 1986.   During FY 1987, state and key local  agencies,
 with the support of EPA Regional  Offices, will  initiate the
 actions necessary  to address the  major problems identified by the
 FY 1986 audits.  In providing support, EPA  will give priority to
 problems that adversely affect state and local  programs for
 reducing  ozone  levels  and addressing air toxics.

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                               -6-
State and local  financial  support.   EPA will  continue to provide
financial support  to state and  local  agencies through the section
105 grants program.   EPA will  also  continue  to carry  out the
performance-based  grants policy signed  by  the Administrator  in
May  1985.  In implementing the  policy,  EPA will  involve state  and
local agencies in setting national  priorities and determining
the  allocation of grant funds to support these priorities.

Monitoring air quality.   EPA will  continue to support  the collec-
 tion of  accurate  and  complete  air  quality data through  the opera-
 tion of  the  National  Air  Monitoring  System  (NAMS)  and  State and
 Local  Air Monitoring  System  (SLAMS)  networks.   During  FY 1987
 EPA will begin  the  operation  of the  air quality  element of  the
 Aerometric Information Retrieval  System (AIRS).   As  the air
 quality  element  of  AIRS becomes operational, EPA will  assist
 state and local  agencies  in  gaining  direct  access  to the system.

 4.  Address  acid  deposition,  stratospheric  ozone depletion, and
     i ndoor ai r  polluti on

 Acid deposition.   In  FY 1987  EPA will  carry  out  an acid deposition
 program that includes accelerated  research  and  analyses of  policy
 and implementation issues.  The EPA Office of Research  and Develop-
 ment (ORD) will continue to develop the scientific and  technical
 information required  to  respond to policy issues.  The  Office of     {
 Air and  Radiation  (OAR)  will insure that research efforts are
 focused  on policy  information  needs and will review new research
 results  for their  policy implications.  EPA will continue in FY
 1987 to  identify and  resolve possible  imlementation issues through
 the State Acid Rain  (STAR) program.

 Stratospheric ozone  depletion.  Section 157 of  the Clean Air Act
 requires  EPA to issue  regulations to  reduce chlorof1uorocarbon
 (CFC) emissions if the Administrator  of EPA determines  that the
 emissions endanger public health  and  the environment.   In response
 to a  suit brought  by the Natural  Resources  Defense  Council, EPA
 developed and adopted a  comprehensive CFC action  strategy in FY
 1985.   To carry out  this strategy,  EPA will  focus during FY 1986
 on developing a  national and  international  consensus  on the
 nature  and  magnitude of  the CFC problem.   In FY 1987  EPA will
  announce a  decision  on the  need for  regulatory  actions to  control
  CFCs.

  Indoor  air  pollution.  Research  by  EPA and  others indicates  that
  health  risks  result1 from indoor  exposure to air pollutants,  as
  well  as ambient  exposures.   Some  of the  risks  associated  with
  indoor  air  pollution may be  substantial.   Although  more research
  is needed to better  characterize  the  contribution of indoor  air
  pollution to adverse health  effects,  EPA will  begin in FY  1987  to
  analyze the policy issues associated  with  addressing the  problem.    |
  EPA will examine how existing EPA programs  can  be adjusted to        "
  reduce  total  exposure, indoor and ambient,  to  unhealthful  air
  quali ty.

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                               -7-
5.  Maintain improvements in air quality

New Source Performance Standards.   The establishment and review
of technology-based New Source Performance Standards (NSPSs)
are important elements of the national program to prevent air
quality problems from new sources  by setting baseline controls
for major source categories.  In FY 1987 EPA will continue to
give priority to developing standards for each source category
on the NSPS priority 1ist.

Continuous compliance programs.  In FY 1987 EPA will continue to
give priority  to improving the effectiveness of EPA and state
compliance monitoring inspections.   EPA will support application
of the Model Surveillance Targeting Program, completed in FY  1986,
to provide more systematic and efficient inspection programs.  EPA
will also continue to actively promote the integration of continuous
emissions monitoring (CEM) into the continuous compliance program.
During FY 1987 EPA will complete guidance for addressing malfunc-
tions of control equipment and process operations.

Visibility plans.  In FY 1987 EPA will complete promulgation  of
SIPs to protect visibility in pristine areas of those 34 states
that did not prepare their own plans.


III.  GUIDANCE FOR THE AIR QUALITY  PROGRAM

A.  Program Goal:  Reduce risk of exposure to toxic air pollutants

The program objectives for this goal are based on the Air Toxics
Strategy (as it applies to routine  releases) announced in June
1985.  One of the Agency's Strategic Planning Initiatives involves
air toxics and is being directed by OAR.  Results of this effort
are expected in FY 1986 and may alter some of the activities
outlined in this guidance.

1.  Program objectives:  Accelerate national regulations;
                         enforce existing requirements.

Actions for meeting these objectives fall in two categories:

    0   Implementation of section 112 of the Clean Air Act,
       including publication of decisions on whether to regulate
       pollutants or source categories.

    0   Use of federal authorities other than section 112 to
       regulate air toxics, including air toxics from vehicle
       emissions and fuels and from hazardous waste TSDFs.

Implement section 112.  EPA will continue to list pollutants
and establish standards under section 112.  In FY 1987 EPA
will publish regulatory decisions for 8-12 potential hazardous
air pollutants and identify those requiring nationwide regulation

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                               -8-
through NESHAPs.   Decisions  on whether to  list the emissions of
certain source categories  (e.g.,  incinerator  emissions)  under
section 112 will  begin to  be issued  in  FY  1987.   These  decisions
will result from  a study to  be  completed in late FY  1986 on  the
risks caused by sources that emit more  than one  toxic  air pollutant.
The EPA will also continue the  development of data  bases, risk
assessments, and listing decisions for  other  candidate  compounds.

To  assist  in the identification and assessment of potentially
toxic air  pollutants, ORD will  develop and/or evaluate additional
monitoring  methods; provide toxics air monitoring information
through an  expansion of the Toxics Air Monitoring System (TAMS);
test  individual  pollutants  and mixtures for  a number of  health
endpoints;  and develop  biological test  methods  to quickly identify
air toxics that  cause  the greatest  health  risk.

In  FY  1987 EPA will propose changes to  the current  NESHAPs  for
asbestos  and  promulgate NESHAPs  for benzene  and  coke oven emis-
sions.   NESHAPs  development will  be underway for 13 pollutants,
including 10  pollutants for which Intent  to  List decisions  were
published in  1985.   Proposals  for a number of these NESHAPs will
occur  in  FY 1988.   The  research  program will  continue to develop
more  efficient and  cost-effective control  technologies  for  air
toxics,  particularly  VOCs.

 In  implementing  existing  NESHAPs, EPA and  states will give  priority
to  implementing  the enforcement  strategies for  vinyl chloride and
asbestos  demolition and renovation.  EPA  and states have also
agreed  to extend the  EPA  guidance on timely  and  appropriate enforce-
ment  response to NESHAPs  sources  in FY  1987. This  will  include
both  resolving violations  promptly  and  obtaining an appropriate
 penalty.   In  addition,  in  FY  1987 EPA will complete the development
 of a compliance  and enforcement  strategy  for the benzene NESHAPs.

 Regions will  identify and refer  to  the  Office of Criminal  Investi-
 gations (OCI) information relevant  to  enforcement  of  knowing  vio-
 lations of NESHAPs  and will provide technical support  for  cases
 reflecting program  priorities.   OCI and program personnel  will
 communicate (within limitations  of  the  law)  concerning  the  general
 status of investigations, available enforcement options, antici-
 pated resource requirements,  and other  matters  of  similar  managerial
 signi fi cance.

 EPA will  also conduct a pilot  project  to  determine  whether  intensive
 inspections of sources subject  to current regulations  for  particu-
 late matter and  VOCs can  result  in  significant  reductions  in  air
 toxi cs.

 Use other federal authorities.   The Air Toxics  Strategy commits
 the Agency to increased use of federal  authorities  in  addition
 to section 112.   EPA will use  other sections of the Clean  Air
 Act to control air toxics.   For  example,  EPA will  use  the

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                               -9-
provisions of" Title II of the Act to reduce air toxics from vehicle
emissions and fuels.   EPA will  also emphasize implementation of
provisions of the Act which indirectly reduce air toxics.   For
example, an NSPS for  wood stove emissions that will  be proposed
in FY 1987 will  reduce particulate emissions, some of which are
toxic.  Similarly, EPA will promulgate an NSPS for industrial
boilers in FY 1987 that will  apply to municipal waste combustors
and reduce particulate emissions with potentially toxic components.

EPA will also use federal statutes other than the Clean air Act
to control air toxics.  For example, in late FY 1987 or early
FY 1988 the air program will  propose, under RCRA, regulations for
toxic air emissions from seven types of hazardous waste TSDFs.
In early FY 1987, EPA will complete a comprehensive assessment of
the regulatory authorities for controlling sources of methylene
chloride and will develop  regulations as appropriate under the
Clean Air Act; the Toxic Substances Control Act (TSCA); the
Federal Insecticide,  Fungicide, and Rodenticide Act  (FIFRA); and
the Safe Drinking Water Act (SDWA).  Similar studies are antici-
pated for other pollutants in FY 1987.

Control vehicle emissions and fuels.  EPA expects the introduction
of a  large number of vehicle fuel additives in response to the
phasedown of lead in  gasoline.   EPA also expects an increasingly
variable composition  of all fuels due to a changing marketplace.
EPA will strengthen its registration of fuels and additives and
will  develop test protocols for assessing the health effects of
alternative fuels and fuel additives prior to registration, as
mandated by the Clean Air Act.  The enhanced fuels registration
program will lead to  rulemaking to control toxic fuels and additives,

Lead  phasedown presents a special problem to the owners of vehicles
which were designed to operate with leaded gasoline and which
have  operating cycles different from those of cars and trucks
(e.g., farm equipment, antique cars, boats, off-highway vehicles).
If the lead phasedown program is to be sustained and/or a lead
ban adopted, the needs of these vehicle owners must be taken into
account without creating a new market for leaded fuel.  Phasing
down  lead use could be subverted by the existence of this market
for leaded fuel.  EPA will study the effects on existing engines
of lead phasedown and the use of alternative valve lubricants,
and will take appropriate regulatory action.

EPA will continue the aggressive enforcement program started in
FY 1986 to ensure that the required reductions in the lead content
of gasoline take place and that all fuels marketed meet the
requirements of registration, waivers, and fuels regulations.

Diesel particulates constitute an important contributor to air
toxicity.  The "six-month" study prepared by EPA attributes
approximately half of the air toxic health effects to mobile
sources.  A significant portion of these effects result from die-
sel particulates.  The recently promulgated rule for the control

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                               -10-
of diesel  particulate emissions  is  expected  to reduce  the annual
incidence  of cancer from this  source  by  as much as  400 cases  per
year.  In  addition, diesel  particulate  can act as  the  carrier to
the deep lung of substances formed  or accreted in  the  air since
these particles remain suspended for  long periods.   Control  of
this air toxic can be achieved with emission standards (which will
force the  development of new technology) and fuel  composition
regulations.

EPA will concentrate on technology  assessment work  to  assure  that
manufacturers meet the technology-forcing standards already  in
place.  The standards will  present  significant technological
challenges to engine maufacturers.   The  effectiveness  of control
is predicated on the adoption  of as yet  undeveloped technology.
The standards are effective with the  1988 model year and are
tightened  in 1991 and 1994.  Maufacturers do not appear to be
engaged in active research programs for  meeting the standards.
EPA must make sure that manufacturers either adapt technology
applied to light-duty vehicles or change to  cleaner fuels (e.g.,
methanol)  to comply with the emission standards.

EPA will also monitor diesel fuel composition and  develop regula-
tory approaches to assure adequate  control.   The quantity and
toxicity of diesel particulates is  affected  by fuel quality.
Manufacturers have stated that trap technology cannot  be adapted       |
to control particulate emissions at the levels required by the
standards  with sulfur in diesel  fuel  at  current levels.  To
achieve the expected reduction in the annual incidence of cancer
from diesels by as much as 400 cases  per year, it  may  be necessary
to control the composition of diesel  fuel.   Control of sulfur,
aromatics, and heavy components of  diesel fuel can directly  reduce
particulates emitted by about half.  Conversely, increases in
these substances in fuel can increase emissions of particulates.

Another significant contributor to  air toxics is direct evaporative
hydrocarbon emissions, which involve  a wide  range  of potentially
harmful substances.  Extension of known controls to the degree
necessary to reduce these hazards is a high  priority.   Evaporative
emissions control rules will be developed and implemented.  Spe-
cial attention will be given to recalling cars and trucks with
excessive evaporative emissions.

Research attention will be turned to the study of  unregulated
toxic emissions from vehicles and the possibility  that winter
temperatures affect the character of automobile emissions.

2.   Program Objective:  Establish and support effective state and
                        local  programs in defining and addressing
                        toxic air pollutant  problems.

The  EPA in its air toxics strategy  has formally recognized the        *
importance of effective state and local  programs.   These programs
are  necessary to address a diverse  and complex health concern
which  is  often  area  specific.   In addition,  strong state and  local

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                               -11-


programs complement the national  standard setting process by
ensuring effective enforcement and by providing useful  feedback
regarding the implementation of current standards and the
potential need for future standards.

In order to encourage further development of state and  local air
toxics control programs, the Administrator established  a goal  to
have operative air toxics programs in all states by the end of
FY 1986.  For purposes of FY 1986 program development where there
are no existing programs, state and local agencies may  develop and
submit a multi-year plan for developing their air toxics programs.
Additional  development of these plans and progress in implementing
them will occur during FY 1987.  The  activities to enhance state
and local programs also apply to  existing programs as well.  In
FY 1987 EPA will  promote improvements for these programs in several
areas, such as expanding program  coverage to include more aspects
of air toxics problems.

There are four principal ways that EPA will  support the further
development and implementation of state and  local air toxics
programs in FY 1987.   These are:

(1)  Techn i ca 1 A s s i s t a n c e.   The EPA will  again provide  technical
     assistance in several  ways to evolving  state and local air
     toxic  programs.   First, EPA  will continue to operate its  air
     toxics clearinghouse which allows states to share  much of
     their  program design and implementation experience with one
     another.  The EPA will also  continue to provide a  considerable
     amount of case-specific assistance upon request by state  and
     local  agencies in their efforts  to design and implement
     effective programs.

     EPA will take several  actions to enhance the technical and
     scientific bases for program development and implementation
     by providing additional guidance on  ambient sampling, including
     quality assurance, and on emissions  factors and emissions
     inventories.  EPA will also  provide  limited guidance and
     assistance for dispersion modeling.   In addition,  EPA will
     assist states in issuing permits for regulating toxic emissions
     from new municipal waste combustors  by  publishing  documents
     which  identify the lowest emission levels of organic compounds
     (including dioxin), metals,  acid gases, and particulate matter.
     The documents will describe  feed characteristics,  operating
     characteristics, and control  techniques associated with such
     levels.  Finally, EPA  will work  witn states to improve their
     technical capabilities in order  to implement their air toxics
     programs.

(2)  Program Grants and Example Programs.  Substantial  FY 1987
     grant  dollars will be  allocated  for  building state and local
     programs.  Detailed descriptions of  successful  example
     programs beyond  those  documented in  FY  1986 will  be prepared,
     and some additional workshops will be conducted to assist

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                               -12-
     state  and  local  agencies  in  the  efforts to  build upon their
     current  program.   A  state  and  local working  group  established
     in  FY  1986 will  continue  to  define  and set  priorities among
     state  and  local  program needs  and evaluate  which practices
     have  been  most  effective  in  accomplishing  risk  reduction.
     These  actions  will  continue  the  FY  1986 efforts to stimu-
     late  and guide  further  state and local program  development
     using  the  collective wisdom  gained  from experience to date.

(3)   Hi gh-Ri sk  Poi nt Sources.   EPA  will  work with states  to  improve
     their  capabilities  to routinely  address exposures  from  point
     sources  of toxic air polluants which  cause  high individual
     health risks,  but which are  not  appropriate  for federal  regu-
     lation.   In FY  1987  EPA and  states  activities will  continue
     to  focus on pollutants  and source categories identified  in
     FY  1986.  EPA  will  provide guidance documents and  conduct
     workshops  to help states  address selected  source categories
     associated with high individual  risks.

(4)   SIP Development and  Enforcement. Historically, implementation
     of  state plans  for the  attainment of  NAAQSs  has been the most
     effective  air  quality management tool  to  reduce the  risk of
     adverse  health  effects  from  toxic air  pollutants.   In FY 1987
     EPA will help  identify  and support  SIP activities  that  also
     reduce air toxics emissions.

3.  Program objectives:   Identify geographic area problems;
                         determine  intermedia  approaches  to
                         control  under existing  authorities.

In FY 1987  EPA  will  support, through  program grants  and technical
assistance, state initiatives  for the first phase of a  two-year
program to  prepare  comprehensive  air  toxics inventories and
analyze  exposures and risks  in 8-10 geographic  areas with signifi-
cant multiple source and pollutant  interactions.   Several of the
activities  discussed in the  above program  objectives  (e.g.,  expan-
sion of  the TAMS, guidance on  ambient monitoring, modeling,
emission factors and emission  inventories)  will  be of great  use
in implementing the  geographic program.

OAR  and the Regions  and states will coordinate  and provide  input
to the geographic activities  being  implemented  by the Office of
Policy and  Program  Evaluation  (OPPE). These activities include
reports  on  the  multi-media studies  being conducted  in the Santa
Clara Valley  and Baltimore;  follow-up work  in  Philadelphia,  and
Phase I  reports on  one to two  new multi-media  study  areas initiated
in FY 1986.

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                               -13-
Key FY 1987 Headquarters Actions to Implement Program Goal

Ti er 1 Acti ons:

(1)   Continue pollutant assessment and evaluation program.
      Publish regulatory decisions for 8-12 potential  hazardous
      air pollutants.   Publish decisions on whether to regulate
      source categories that emit multiple air toxics.

(2)   Promulgate NESHAPs for coke oven emissions (charging  topside
      and doors) and benzene (coke by-product plants)  and propose
      revisions  to current asbestos NESHAPs.

(3)   Continue to develop NESHAPs for 13 pollutants.

(4)   Publish documents which identify the lowest emission  levels
      of toxic pollutants from municipal waste combustors.   (OAR,
      OSWER, ORD)

(5)   Develop and promote improved asbestos demolition and  renovation
      techniques.

(6)   Develop a  compliance and enforcement strategy for the  benzene
      NESHAPs.

(7)   Develop rules requiring the testing of vehicle fuels  and
      additives  combustion products for human health effects (using
      bioassays).  Publish an Advance Notice of Proposed Rulemaking
      i n August  1987.

(8)   Implement  an aggressive program for registration of vehicle
      fuels and  additives.  Provide for improved access and
      analysis of data on the composition and concentration  of
      fuels and  additives.  Issue rules to control substances  and
      fuels found to present environmental problems.

(9)   Ensure that manufacturers meet the already promulgated diesel
      particulate standards through an aggressive program of
      technology assessment and compliance program resolution.

(10)  Set and enforce  additional rules, such as fuel composition
      rules, for effective control of particulate emissions  from
      vehi cles.

(11)  Actively and aggressively enforce vehicle fuel composition
      regulations already in effect.

(12)  Continue development of regulations under RCRA to control
      air toxics emissions from seven types of TSDFs:   surface
      impoundments, landfills, storage tanks, waste piles,  land
      treatment  facilities, containers, and transfer operations.
      Propose regulations in late FY 1987 or early FY  1988.

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                                -14-
(13)   Propose  an  NSPS  for  residential  wood  stoves;  initiate
      development  of  a compliance  strategy  for  the  wood  stoves
      NSPS.

(14)   Expand TAMS.   Provide  TAMS data  on  the  presence  and  con-
      centrations  of  hazardous  air pollutants.   (ORD)

(15)   Develop  and  operate  mechanisms  (e.g., working groups and
      national  workshops)  to focus,  share,  and  expand  the  implemen-
      tation experience (including example  programs and  practices)
      in  order  to  promote  development  of  effective  state and  local
      air toxics  programs.

(16)   Develop  and  implement  procedures  for  providing oversight  of
      Regional  and  state  and local activities  for  developing  air
      toxics programs  in  all  states.   Issue national report sum-
      marizing  status  of  air toxics  programs.

(17)   Continue  operation  of  the air  toxics  clearinghouse,  pro-
      viding a  primary referral  service for obtaining  information
      and expertise on hazardous  air  pollution  sources,  emissions,
      control  technology,  health  effects, exposure, and  ambient
      concentrations.

(18)   Assist  state  and local  agencies  in  assessing  and regulating        |
      air toxics  sources,  or source  categories  which result in
      high individual  health risks,  but which  are  not  appropriate
      for federal  regulation.   Issue  guidance  and  conduct  workshops
      to  help  state and local  agencies  address  specific  problems
      and improve  their overall  capabilities  to address  high-risk
      sources.

(19)   Develop  guidance to  optimize current  VOC  and  particulate
      matter  programs  and  control  measures  which also  reduce  air
      toxics  emissions.  Consider  adopting  SIP  control policies
      which would  concurrently make  effective  reductions in both
      air toxics  and the  relevant  criteria  pol1utant(s ).

(20)   Issue final  report  on  Santa  Clara and Baltimore  studies.
      (OPPE)

(21)   Issue Phase I reports  on one to two new multi-media  site
      studies  initiated in FY 1986.   (OPPE)

(22)   Provide  guidance on  developing  regulatory programs for
      dealing  with multi-source, multi-pollutant problem areas.

(23)   Respond  to  requests from Regional Offices and state  and
      local agencies for:   (a) information  on health,  exposure,
      and control  technology for specific toxic pollutants;  (b)         |
      support  regarding general program development and control         ™
      strategy options; and  (c) assistance  in evaluating and
      mitigating  specific local problems.  (OAR and ORD)

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                                -15-
(24)   Enhance  the  scientific  basis  for  program  development  and
      implementation  by:

      (a)  Continuing  the  development  of  ambient measurement
      methods  for  hazardous  air  pollutants.   Provide  guidance
      on  sampling  and quality  assurance  to  facilitate  the estab-
      lishment and/or upgrading  of  state and  local  monitoring
      programs to  better  define  air toxics  problems.   (ORD)

      (b)  Issuing  guidance  on  ambient sampling  and  emission
      inventories  of  air  toxic pollutants.   Provide technical
      assistance to  Regional  Offices  and state  and  local
      agencies.

      (c)  Updating  guidance  on VOC  speciation to  include toxic
      constituents.

      (d)  Developing  emission  factors and source  characteri-
      zation  information  for  8-10 substances.

 Ti er 2 Actions:

 (1)   Complete report comparing  the geographic  variability  of the
      air  toxics problems for  a  large number  of counties.   (OPPE)

 (2)   Update  the monitoring  strategy  for toxic  air  pollutants.

 (3)   Issue  summary  report  on  available  air  quality data for air
      toxi cs.

 Key  FY 1987  Regional  Office  and State  Actions  to Implement
 Program  Goal

 Tier 1 Actions:

 (1)   Provide  oversight  to  ensure states implement  commitments  for
      developing air  toxics  programs  in  all  states.  (Regions)

 (2)   Provide  guidance and  assist state  and  local  programs  assess-
      ing  and  regulating  local air  toxics problems, including the
      specific pollutants and  source  categories identified  in
      FY  1986.  Provide  periodic information  and  reports concerning
      state  and  local  activities, including  the status  of program
      development  and specific regulatory actions.  (Regions)

 (3)   Develop  and  implement  programs  for assessing  and  regulating,
      if  necessary,  emissions  of toxic  air  pollutants  from  high-
      risk  point sources  and  source categories  which  are not
      appropriate  for federal  regulation.   Initiate efforts to
      enhance  overall  program  capabilities  to routinely address
      high-risk  sources.   (States)

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                                -16-
 (4)   Give  special  enforcement attention to  VOC and participate
      matter  sources  in  areas where emission  reductions can signi-
      ficantly  reduce  potential  air toxics problems.   (States/Regions)

 (5)   Implement  agreements  for developing state and local air
      toxics  programs.   (States)

 (6)   Ensure  compliance  with NESHAPs,  in accordance with the timely
      and  appropriate  guidance.   Implement EPA's  enforcement
      strategies  for  vinyl  chloride and asbestos  demolition and
      renovation.   (States/Regions)

 (7)   Promote  improved asbestos  demolition inspection  and violation
      detection  techniques  and encourage delegation of  NESHAPs to
      additional  states.   (Regions)

 (8)   For  selected  Regional Offices,  implement an  intensive inspec-
      tion  program  directed at sources that  contribute  to air
      toxic "hot  spots."   (Regions)

 (9)   Provide  assistance  to state  initiatives to  prepare comprehen-
      sive  air  toxics  emission inventories and analyses of exposures
      and  risks  in  8-10  geographic  areas.  (Regions)

(10)   Initiate  analyses  of  emissions  and risks for multi-source,
      multi-pollutant  problems in  8-10 geographic  areas.  Begin
      development  of  control programs, as necessary, to address
      problems  identified by existing  special studies  in Philadel-
      phia, Baltimore, the  Santa  Clara Valley, and the  Kanawha
      Valley.   (States)

(11)   Provide  timely  information  and  updates  to the Air Toxics
      Clearinghouse regarding state and local activities, helping
      to maintain  effective and  current clearinghouse  operation.
      (States)

(12)   In developing SIP  revisions  for  new PM^g standards and
      additional  VOC  measures in  ozone nonattainment areas,
      give  priority to control measures that  also  reduce air
      toxics  emissions.   (States)

 Tier 2 Actions:

 (1)   Where ambient data on VOCs  are  routinely collected, submit
      to EPA raw data  or summaries  of  such data collected since
      1980.  (States)

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                               -17-
B.  Program Goal:  Achieve NAAQSs in areas currently not meeting
                   health related standards.

1.  Program objectives:  Correct ozone deficiencies, fully
                         implement existing SIP requirements,
                         and address post-1987 ozone nonattain-
                         ment problems.

In 1987 EPA will  continue to give top priority to programs for
the development and implementation of SIPs necessary for the
attainment of the NAAQS for ozone.  This involves the continuation
or completion of  three major sets of activities.   The first is
the continuation  of the post-1982 policy for  the  identification
and correction of deficient SIPs necessary for the attainment  of
the standard.  The second is the implementation by states of the
various stationary and mobile source controls committed within
the approved SIPs for achieving the standard.  The third is the
completion of the strategy and policies  for addressing nonattain-
ment problems in  areas which are not likely to attain by the statu-
tory 1987 attainment date.

The ozone nonattainment areas, which will  be  the  focus of EPA  and
state efforts during FY 1987, include both those  where states
requested and received extensions to 1987  and those where states
did not receive extensions, but have subsequently been notified
by EPA during FY  1984 and FY 1985 of SIP deficiencies requiring
modifications and corrections.  Corrective SIPs have been approved
for most of the extension areas, but deficiencies continue in
some areas requiring further state actions and approval by EPA.
In FY 1987 states will also continue to  correct SIPs for any newly
identified ozone  nonattainment areas where notifications of SIP
deficiencies have been provided by EPA.

SIPs approved by  EPA, both within the extension areas and areas
where notifications of SIP deficiencies  had been  issued, contain
commitments to implement regulations and regulatory programs which
are essential to  the attainment of the NAAQS.  During FY 1987  EPA
and state attention will focus on completing  fully remaining
commitments for implementing these regulations and programs
(including required adoption by appropriate governmental bodies)
consistent with national policy, guidelines,  and  schedules committed
in the SIPs.  In  1987 EPA Regional Offices and states will review
and document progress toward meeting the NAAQS within the ozone
nonattainment areas.

EPA, through the  efforts of an Ozone Task  Force,  is currently
formulating a major strategy for future  ozone controls in areas
not demonstrating attainment by the end  of 1987.   This strategy
is expected to be completed by the end of  FY  1986.  This new
strategy will enhance and build upon the existing strategy appli-
cable to both the extension areas and the  post-1982 areas.

The strategy will accelerate progress toward  attainment in areas
with the more severe nonattainment problems.   The strategy is

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                               -18-
expected to require the adoption  and implementation  of new and
additional  measures as well  as  the enhancement  of existing control
efforts.  The additional  measures are expected  to address  both
short-term and long-term  actions  with the number and type  related
to the severity of the nonattainment problem.   The implementation
of a reasonable extra efforts  program similar  to the program being
piloted in Region IX is being  considered  as  a  key element  of the
new strategy for the particularly severe  nonattainment areas.
Many of the new and additional  measures  required to  reduce VOC
emissions will more directly affect the  general  public.   More
extensive outreach programs  will  be needed to  improve public under-
standing of the adverse health  effects of ozone and  the  need for
additional  actions.

A schedule for the implementation of the  new strategy will also
be prepared by the end of FY 1986.  The  completion of the  strategy
and the schedule for its  implementation  will likely  require
specific EPA and state actions  during FY  1987.   Additional guidance
is anticipated to be needed  at  that time  to  more clearly define
the necessary activities  and expectations for  the Regional Offices
and states during FY 1987.   Accompanying  the strategy will be
guidelines concerning expanded  monitoring programs and updates/
revisions to emissions inventories which  will  need to be undertaken
in FY 1987 and beyond in  support  of the  new  strategy and application
of specific measures.

Important to the new strategy  is  a more  complete and credible
scientific basis for implementing additional ozone control measures.
Toward that end, several  studies  will be  undertaken  by ORD to
develop, evaluate, and test  both  monitors and  modeling techniques,
and to improve source control  technologies.

2.   Program Objective:  Implement key elements of the air
                         compliance program.

In FY 1987 EPA will give  priority to three elements  of the air
compliance program: the timely  and appropriate  guidance, the Post-
1982 Enforcement Policy,  and the  guidance that  will  be developed
in FY 1986 on defining a  federally reportable  violation.  Together,
these key elements determine which violations  are to be  reported
to EPA, identify the relative  roles and  responsibilities of EPA
and state and local agencies in returning significant violators
to compliance, and establish important policy  guidance for the
compliance programs.

Regions will identify and refer to OCI information relevant to
enforcement of knowing SIP violations and knowing false  submission
of information under the  Clean  Air Act (subject to criminal enforce-
ment), and provide technical support for cases  reflecting program
priorities.  OCI and program personnel will  communicate  (within
limitations imposed by law)  concerning the general status  of
investigations, available enforcement options,  anticipated resource
requirements or other matters  of  similar managerial  significance.

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                               -19-
A major effort and the principal focus of the air compliance
program in FY 1987 is compliance monitoring and enforcement for
VOC sources in ozone nonattai nrnent areas.  Emphasis will  be on
identifying and addressing significant violators of VOC emission
requirements.  During FY 1986, EPA will  develop a strategy addres-
sing selected Class B VOC violators located in ozone nonattainment
areas.  Implementation of this strategy  will  begin in FY  1987  and
will include developing inventories of Class  B VOC sources that
impact ozone nonattainment areas, targeting many of these sources
for inspection, and conducting appropriate follow-up enforcement
acti ons.

As noted in the objective above, EPA has established an Ozone
Task Force to assess continuing ozone nonattainment problems and
to prepare a strategy for addressing problems within the  more
severe nonattainment areas.  The Task Force is considering as  part
of the strategy an initiative  to enhance the  VOC compliance pro-
gram.   In part, this initiative would involve an intensified over-
view program with more comprehensive inspections of VOC sources
in selected ozone nonattainment areas and appropriate enforcement
fol1ow-up.

Also,  EPA will ensure that federal facilities meeting emission
limits remain in compliance and that the relatively few violating
facilities are returned to compliance.  Federal  facilities will
be inspected and provided with technical assistance, as needed,
in accordance with the revised guidance  from  the Office of Federal
Acti viti es.

c.  Program Objective:   Maintain an effective nationwide  motor
                        vehicle emission control program

The federal motor vehicle pollution control program is a  key
element in the strategy for achieving and maintaining primary
NAAQSs.  Large parts of the population of the United States will
remain subject to unhealthful  levels of  ozone and carbon  monoxide
even in the early 1990's without additional emissions controls.
Motor  vehicles account for essentially all  controllable emissions
of carbon monoxide and are the logical source for achieving
emission reductions.  They also represent the source with the
greatest potential for the next increment in  cost-effective
emissions control related to ozone.  Control  of the growth of
emissions of nitrogen oxides is also very cost-effective  when
controls are applied to motor  vehicles,  especially the sources
that are less stringently controlled such as  trucks and buses.

In FY  1987 the motor vehicle pollution control program will give
priority to controlling heavy-duty engine emissions to levels
comparable in stringency to those for automobiles and to  ensuring,
through technology monitoring, support of state I/M and anti-
tampering/fuel switching programs and, through rigorous federal
enforcement, continued compliance by vehicles in-use with the
standards that they were designed to meet.   Certain actions taken
for the control of toxic air pollutants  are expected to bolster

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                               -20-
the attainment of the NAAQSs.   Examples are the control  of evapo-
rative hydrocarbons (which may have direct toxic effects and are
ozone precursors) and lead (lead in gasoline destroys  emission
control systems, has a large  range of direct health effects, and
its control  directly contributes to the attainment of  the primary
NAAQS for lead).

Two exhaust  emission standards become effective during FY 1987:
lower hydrocarbon and carbon  monoxide standards for light heavy-
duty engines and more stringent diesel  particulate standards for
light-duty vehicles.  The selective enforcement audit  program,
which assures that newly produced vehicles and engines meet
standards, will  be directed toward determining compliance with
these emission requirements.   Furthermore, the recall  program
will test heavy-duty engines  from in-use vehicles for  the first
time in FY 1987.  These engines were required to comply  with
tighter hydrocarbon and carbon monoxide standards in FY  1985 and
will have accumulated sufficient mileage by FY 1987 to enable EPA
to assess whether significant  emission deterioration is  occurring
i n-use.

Federal efforts  alone cannot  effectively address continued vehicle
compliance.   Control of factors related to vehicle and fuel use
are within the purview of state and local  governments.  To ensure
that the considerable national investment  in motor vehicle pollu-
tion control is  not squandered by a minority of uninformed or
irresponsible individuals, state and local governments must main-
tain effective I/M programs,  establish additional anti -tamperi ng/
fuel switching programs, and  improve the operation and enhance the
effectiveness of the programs  already in place.

Research in  FY 1987 will focus on developing more information on
the impact of toxic mobile source emissions on the formation of
ozone.  Methanol is a promising alternative fuel for motor vehicles
and may offer the added benefit of reducting ambient ozone levels.
To test this, a  smog chamber  is being developed and a  study will
be done to compare the effects of gasoline and methanol  combustion
on ozone formation.

4.  Program  objective:  Complete SIPs to meet the revised NAAQS
                        for PM10.
EPA will promulgate the NAAQS for PMio in mid-FY 1987 and issue
the final  implementation guidance for state development of PM^Q
SIPs.   The actions that states must take will depend upon the
severity of the PM]_o problem.  Areas are divided into three groups,
with Group I being the most polluted and Group III being the least.
States  will need to continue to  (1) expand their PM-JQ monitoring
activities in FY 1987 consistent with national guidance focusing
on Group I areas; (2) initiate efforts to modify their permit
systems  for new or modified sources to account for the revised
PM-|Q NAAQS; and (3) begin development of PM-|Q emission inventories,
upgrading  and converting total suspended particulate (TSP)

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                               -21-
inventories as necessary,  to  enable  them to  assess  the  impacts  of
new sources subject to preconstructi on  review,  and  to  have  the
data available for PM-|g control  strategies,  if  required.

In Group I  areas,  based on guidance  from EPA,  states  will  also
need to (1) begin  dispersion  and receptor modeling  to  identify
and evaluate source contributions to PM-jg air  quality  levels,
(2) prepare control strategies to attain the PM-|Q NAAQS,  and
(3) initiate development of PM-JQ SIPs.
Looking beyond PMiQ, ORD will  continue studies for fine particu-
lates, soiling, and visibility impairment.   Specific efforts  will
be undertaken to develop, evaluate, or refine urban scale particu-
late, fine particulate,  and visibility models.

5.  Program objective:   Ensure that NAAQSs  are based on accurate,
                        up-to-date information.

In FY 1987 EPA will promulgate revised or reaffirmed NAAQSs  for
PMig and for sulfur oxides.  In addition, EPA will propose revised
or reaffirmed standards  for lead.   Depending on  the results  of on-
going studies on carbon  monoxide and nitrogen dioxide,  scheduled
for completion by January 1987, EPA may initiate accelerated
reviews of the NAAQSs for these pollutants.   The review of the
ozone NAAQSs will be nearing completion,  with a  proposed revision
or reaf f i rmati on scheduled for FY  1988.

The research program will continue to conduct health effects
research for all of the  NAAQSs pollutants.   Studies will  involve
epidemiology, controlled human (clinical) studies, and  animal
experiments.  Studies on particulate matter  will involve specific
fractions  such as acid  aerosols.

Key FY 1987 Headquarters Actions to Implement Program Goal

Tier 1 Actions:

(1)  Ensure timely and  consistent  implementation of EPA policy
     and guidance for achieving NAAQSs in post-1982 nonattai nment
     areas and for complying with  the litigation settlement  for
     completion/promulgation of required  lead SIPs in remaining
     states.

(2)  Provide, consistent with  EPA  policies  and procedures, timely
     review and final rulemaking for state-submitted (and Regional
     Office-reviewed) corrections  to deficient SIPs, state-submitted
     regulations and programs  required for  attainment of standards
     and,  where necessary, Regional Office  prepared promulgations
     for implementing requirements of litigation settlements.

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                               -22-
 (3)  Continue to support the development and implementation of
     effective and consistent state and local regulations for
     control of VOC emissions by updating and maintaining the
     VOC Clearinghouse and providing periodic reports to the
     Regional Offices and the states.  Assist in resolving
     specific policy and technical issues which impact the
     regulation of key VOC sources and source categories.

 (4)  Complete necessary guidance for implementing the new ozone
     strategy and ensure timely and consistent implementation
     of those strategy elements requiring Regional Office and
     state  actions during FY 1987.

 (5)  Evaluate and ensure consistent implementation of the timely
     and appropriate guidance,  guidance on defining  a federally
     reportable violation, and  the Post-1982 Enforcement Policy.
     Revise  national guidance as necessary.

 (6)  Manage  the Compliance Data System.  Continue to inventory
     VOC sources emphasizing the identification of Class B  VOC
     sources that contribute to ozone  nonattai nment .

 (7)  Set and enforce standards  for vehicle fuel characteristics
     related to evaporative emissions.

 (8)  Operate aggressive mobile  source  enforcement and technology
     assessment efforts to make sure that evaporative emission
     standards are met by in-use vehicles.

 (9)  Reduce  hydrocarbon emissions through improvements and  enhance-
     ments  in state and local I/M programs.  Audit state and  local
     programs and provide appropriate  assistance to  resolve prob-
     lems,  including technical  assessments and effectiveness  of
     I/M for newer technology vehicles.

(10)  Enforce heavy-duty vehicle emission standards through  an
     aggressive  recall program.

(11)  Monitor and assist, via the Regional Offices, state progress
     in  developing SIPs required to meet the PM^Q standard.
(12)   Provide  guidance  and  training  on  the  application  of  various
      receptor modeling techniques  for  PM^Q  SIPs.   Complete  develop-
      ment of  example applications,  provide  PM^g  dispersion  modeling
      techniques,  and disseminate  guidance.
(13)  Issue emission  factor  reports  on  remaining  PM^g  source  cate-
      gories addressed by the program developed  jointly  with  ORD
      and provide consultation  concerning  the  derivation and  use
      of the reports.

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                               -23-
(14)   Provide management  and technical  consultation  to  Regional
      Offices and states  for operation  and  continued refinement
      of the PMiu networks  needed  to develop  SIP  data bases.  (OAR)
      Determine precision and accuracy  of  PM^g  monitoring  methods
      and provide technology transfer on  operations  and  mainte-
      nance of PM]Q  samplers. (ORD)

(15)   Promulgate revised  or reaffirmed  NAAQSs  for PM^o  and for
      sulfur dioxide.

(16)   Propose revised  or  reaffirmed  NAAQSs  for  lead.

 Tier 2  Actions:

 (1)   Conduct research  to improve  the accuracy  of ozone  air quality
      model  predictions and to incorporate  improved  scientific
      knowledge into existing urban  and  regional  scale  models.
      (ORD)

 (2)   Develop a simplified  method  for measuring nonmethane organic
      compounds in ambient  air for use  by  state and  local  agencies.
      Conduct studies  to  determine optimal  numbers and  site locations
      for nonmethane organic compounds  and  nitrogen  oxides monitors
      for providing  city-specific  input  data  for  the EKMA  model.
      Operate a nationwide  standard  reference  photometer network
      assisting state  agencies.  (ORD)

 (3)   Conduct additional  research  into  VOC  control technologies to
      improve the state of  the art in reducing  VOC emissions.
      (ORD)

 (4)   Assist Regional  Offices and  states  in  reviewing current
      ambient ozone  monitoring networks.   Manage  the program  for
      monitoring nonmethane organic  compounds  in  ozone  nonattainment
      areas.  Support  analyses to  obtain  improved data  necessary
      for development  of  required  SIPs  and  revisions.  Promote
      national  oversight  of Regional  Office  and state planning for
      enhancing ozone  networks.

 (5)   Develop and improve emission factors  for  VOC sources for use
      in emission inventories and  photochemical modeling.  (ORD/OAR)
      Prepare guidance  for  the preparation  of  area source  inven-
      tories of VOC  emissions. (OAR)  Develop  a  VOC point source
      model  for reviewing new sources in  urban  and rural nonattain-
      ment areas. (ORD)

 (6)   Provide guidance  and  software  for  the  application  of empirical
      and grid ozone models, incorporating  improved  scientific
      knowledge as it  is  developed,  where  these models  are employed
      by states in developing control strategies  for ozone attainment.

 (7)   Evaluate Regional air compliance  programs,  focusing  on  activi-
      ties and programs directed at  ozone  nonattainment  problems.

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                               -24-
(8)  Provide technical  support  to  the  Regional  Offices  for  nationally
     s igni fi cant cases.

(9)  Provide technical  support  to  the  Regional  Offices  and  states
     for VOC compliance problems.

Key FY 1987 Regional  Office  and State  Actions  to  Implement  Program
Goal

Tier 1 Actions:

(1)  Implement EPA policy  and  guidance for the correction  and
     implementation of SIPs  in  post-1982  nonattainment  areas  and
     for meeting provisions  of  the litigation  settlement  for
     completion/promulgation of required  lead  SIPs  in  remaining
     states.  Remedy  as expeditiously  as  possible deficient SIPs
     and address newly identified  violations  of the NAAQSs.
     (States/ Regions)

(2)  Implement the stationary  and  mobile  source controls  con-
     tained within approved  SIPs  for ozone nonattainment  areas,
     including the adoption  of  additionally required regulations
     consistent with Reasonably Available Control Technology
      (RACT) for Group III  and non  control-technique guideline
      (CTG)  VOC sources.  (States)

(3)  Audit  state and local  I/M programs and provide appropriate
     assistance to resolve problems.  (Regions)

(4)  Closely monitor state implementation of SIP schedules and
     commitments contained in the  corrected and extension area
     SIPs.  Work with states to put SIP implementation  back on
      schedule as quickly as  possible if problems or delays arise.
     Assist states in the  preparation of  VOC regulations  consistent
     with RACT and resolve specific policy or technical issues
     which  impact the adoption and implementation of regulations.
      (Regions)

(5)  Review and document state progress in attaining NAAQS for
      ozone  and carbon monoxide within the major urban nonattain-
      ment  areas.  Focus reviews on those  areas that experience
      the more severe problems and  are not  likely to attain by
      1987.   Identify nonimplementation issues, SIP deficiencies,
      and other  problems needing corrections.  (Regions)

(6)   Assist,  via the  EPA Ozone Task Force  (Regions) and STAPPA/
      ALAPCO (States),  in the completion  of any remaining portions
      of the new ozone  strategy and implementation  guidance.
      Implement  the strategy according to the  schedule developed
      in FY  1986.  (States/Regions)

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                                -25-
 (7)   Review ambient  ozone  monitoring  networks  within  each  non-
      attainment  area,  and  as  required by  the  new  ozone  strategy
      and accompanying  guidance,  initiate  steps to refine  or
      expand monitoring networks  to  fully  characterize ambient
      ozone  levels.   Replace worn-out  or  obsolete  continuous
      ozone  analyzers and laboratory  equipment  identified  in
      the 1985 National Air Monitoring Audits.   Identify areas
      where  additional  ambient (e.g.,  nonmethane organic compounds)
      or emissions  data are most  likely to be  required to  prepare
      revisions to  ozone SIPs  or  to  develop additional control
      measures (Regions/States).   Assist  states in preparing
      plans  and data  quality objectives (and obtaining EPA Head-
      quarters' support where  necessary)  for collecting  needed
      data during FY  1987.   (Regions)

 (8)   Implement provisions  within the  EPA-approved or  federally
      promulgated lead  SIPs consistent with the settlement  agree-
      ment with the  Natural Resources  Defense  Council. (States)

 (9)   Implement the  guidance on  defining  a federally  reportable
      violation and  the timely and appropriate  response  guidance.
      Resolve, consistent with EPA policies, violations  of  SIP
      regulations by  Class  A and  selected  Class B  sources.   Give
      priority to violating VOC  sources in or  affecting  ozone
      nonattainment  areas.   Also, provide  support  to  the criminal
      enforcement program.   (States/Regions)

(10)   Assure that appropriate  violations  are entered  into  the Com-
      pliance Data  System consistent  with  the  new  OAR  guidance on
      defining a  federally  reportable  violation.  Where  compliance
      schedules for  sources have  been  established, track these
      schedules to  assure timely  compliance.  Assure  that  the
      system contains acceptable  compliance status information for
      these  sources.   Assure that appropriate  Class B  VOC  compliance
      data are entered  into the  Compliance Data System.   (States/
      Regions)

(11)   Initiate the  development of required SIPs upon  promulgation
      of the NAAQS  for  PM]o«  Prepare  necessary data  bases  for
      regulatory  decisions  in  all areas.   Revise existing  monitoring
      networks consistent with national  guidance for  collection of
      ambient data  on PM-|g  levels in  areas where control  strategies
      must be prepared.  Begin area-specific analyses  to determine
      and quantify  sources  of  PM-|Q in  areas where  control  strategies
      must be prepared.  Initiate efforts  to modify permit  systems
      in all  areas  to account  for the  revised  PM]Q NAAQS.   (States/
      Regi ons)

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                              -26-
C.  Program goal:   Increase the capacity  and  improve  the effective-
                   ness of state and local  air quality programs.

1.  Program objective:   Use the National  Air  Audit System to
                        identify obstacles  to program effectiveness.

In FY 1987 EPA will  continue the National Air Audit System on the
biennial cycle initiated in FY 1986.  The National Air Audit System
is the primary tool  for assessing state and local  program capabi-
lities and effectiveness and for identifying  problems and needed
improvements.  State and key local  programs will  be evaluated
using national criteria for major air pollution control  activities.
State and local  agencies, with the  support  of EPA  Regional Offices,
will initiate the actions needed to correct program problems iden-
tified in the agencies  audited during FY  1986.  In providing support
EPA will give priority  to problems  that adversely  affect state and
local progrms for reducing ozone levels and addressing air toxics.
Recommendations  for correction of widespread  or national problems
will be summarized and  evaluated at a 1988  symposium.  These will
be incorporated  into future program planning  activities, providing
both a closure on the problems identified in  the audits and
improvements in  EPA and state/local programs.

2.  Program Objective:  Improve the  management processes for the
                       ai r grants program.

In FY 1987 EPA will continue steps  to ensure  effective use and
management of air grant funds appropriated  under section 105 of
the Clean Air Act.  Agency policy on performance-based grants
will be implemented ensuring aggressive negotiation with state
and local grantees of commitments for accomplishing national
priorities and activities, a continuing review of  grantee progress
in meeting commitments, and the initiation  of appropriate follow-up
where problems are encountered.  EPA recognizes that state and
local agencies cannot assume substantial  new responsibilities
and still continue all  existing activities  without accompanying
increases in  resources.  Regional Offices will allow grantees
to eliminate  or delay activities that are mutually agreed to
be a lower priority.

The performace-based grant reporting system begun  in FY 1986 will
be  continued  with modifications as  necessary to improve its  imple-
mentation and usefulness.  The  findings  and  recommendations
resulting from the  review  of the air grant program by the Office
of  the  Inspector General during 1985/86  will be reviewed  and
appropriate  steps taken  to  implement necessary changes  and  key
recommendations within  the Regions  and Headquarters.

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                               -27-
3.  Program objective:   Transfer implementation  and enforcement
                        responsibilities  for new source review
                        to state and local  ayencies.

EPA will  continue efforts to prevent future air  pollution problems
through support of strong state and local  programs to regulate
new sources.  This support includes developing national policies,
standards, and regulations; promoting the  transfer of new or addi-
tional  new source program responsibilities  to state and local
agencies; aiding state  and local agencies  in implementing new  source
review  and compliance programs; and assisting in the response  to
litigation.  During FY  1987 EPA is scheduled to  complete develop-
ment of techniques that will be useful  in  conducting new source
reviews and other dispersion analyses involving  complex terrain
and tal1  stacks.

Litigation actions continue to be an important part of new source
review  activities.  The issue of whether  surface coal mine fugi-
tive emissions should be considered in  determining prevention  of
significant deterioration and nonattainment area new source reviw
applicability will likely be resolved in  FY 1986, with implementation
following in FY 1987.  In addition, final  action on many of the
issues  raised in the Chemical Manufacturers'  Association (CMA)
settlement agreement should be resolved by  FY 1987, but whatever
action  EPA takes will likely result in  continued litigation.

To support state and local permitting decisions, EPA will  continue
to operate two clearinghouses.  One clearinghouse helps state  and
local  agencies to determine best available  control technology
(BACT)  and the lowest achievable emission  rate (LAER) for new
sources in a timely and consistent manner.   The  second clearinghouse
helps  state and local agencies to identify  appropriate air quality
models  and procedures to use in reviewing  the impact of new sources.

4.  Program Objective:   Maintain the National  Air Monitoring System
                        (NAMS) and State  and Local Air Monitoring
                        System (SLAMS)  networks; maintain rigorous
                        quality assurance  programs, and where
                        appropriate, incorporate enhancements;
                        implement the AIRS  air quality system  in
                        EPA Headquarters  and in  all Regional
                        Offices; provide  support to state and
                        local agencies  requesting direct access to
                        AIRS.

High quality data for assessing progress  in improving air quality
and identifying emerging problems is essential to the operation of
effective state and local control  programs.  To  obtain such data,
state  and local agencies responsible for  operating the NAMS and
SLAMS  networks must maintain effective  quality assurance programs
and replace worn-out monitoring instruments on a regular basis.
In FY  1987 state and local agencies will  need to review their

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                               -28-


existing PMjg networks  and,  where  necessary,  procure  additional
PM^o instruments  as  quickly  as  resources  permit  to  provide  the
data necessary for SIP  networks.

EPA will continue to provide revisions  to its technical  guidance
series on quality assurance  during FY  1986 and FY  1987.   EPA  and
the states should ensure that quality  assurance  program  plans  are
updated annually  to  reflect  these  revisions,  as  well  as  year-to-year
shifts and refinements  in monitoring objectives  within  each state's
NAMS/SLAMS network.   EPA and the  states should continue  to  conduct
systems audits of their quality assurance programs  and  to periodi-
cally perform audits of the  data  quality  of NAMS/SLAMS  operations
and other SIP-related monitoring  projects.

During FY 1987 the implementation  of the  AIRS air  quality system
will be initiated and completed in EPA  Headquarters and  in  all
Regional offices.  States currently  storing and  retrieving  their
ambient data via  the EPA's Comprehensive  Data Handling  System
(CDHS) will  be the initial group  to  be  supported in converting  to
direct access to  AIRS.   In late FY 1987 and in FY  1988,  EPA will
assist additional agencies requesting  direct  access to  AIRS in
data conversion and  access arrangements.   Efforts  will  be continued
during FY 1987 to develop an integrated system to  replace the
National Emission Data  System and  the  Compliance Data System  with
one which will allow direct  access,  storage,  and retrieval  of
emissions and compliance data on  all major facilities.

Key FY 1987  Headquarters Actions  to  Implement Program Goal

Tier 1 Actions:

(1)  Using the National Air  Audit  System  results for  FY  198b  and
     FY 1986, supplement or  modify,  as  necessary,  EPA policies
     and provide  implementation support to better  address the
     state and local agency  problems identified  by the  audits.

(2)  Use the findings and conclusions  of  the  national reports
     from the National  Air Audit  System in developing the FY  1988
     and FY  1989  budgets to  focus  resources on identified problems
     and needs.

(3)  Analyze the  results of  the FY 1986-1987  audits and  begin
     development  of a national  report  summarizing  the findings
     and conclusions.  Initiate the  development  of recommendations
     for corrective actions  on significant or widespread problems.
     Prepare national recommendations  through a symposium to be
     held in early 1988, including recommendations for  developing
     and providing guidance  and assistance to state and  local
     programs.  Review the effectiveness  of the audit process and
     evaluate the need for future improvements.

(4)  Issue the allocation of section 105 grant funds  for FY 1988
     and guidance for negotiation of FY 1988 grant awards.

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                               -29-
(5)  Maintain a continuing forum with Regional  Offices and state
     and local  air pollution control  agency officials  for assessing
     and resolving air grant issues and problems.

(6)  Provide support necessary  to develop network  descriptions  and
     implement  prompt establishment of NAMS networks for PMjQ.

(7)  Initiate imp!ementaion of  the Air Quality  Subsystem of AIRS
     in all  Regional Offices and in selected state/local agencies.

(8)  Continue to develop and evaluate software  needed  to replace
     tne National  Emission Data System and the  Compliance Data
     System  with a system which states can directly store and
     retrieve both emissions and compliance data.

(9)  Provide training opportunities,  implementation-oriented
     workshops, technical  guidelines, and operating and procedural
     manuals to help state and  local  agencies strengthen their
     capabilities  in key program areas.

Tier 2 Actions:

(1)  Complete survey of Regional Office procedures and processes
     for managing  air grant funds.  Focus on Regional  activities
     for negotiating grant commitments and for  documenting state
     progress and  performance in meeting commitments.   Prepare
     summary report of findings and conclusions.

(2)  Modify  the performance-based grant reporting  system as neces-
     sary to accommodate FY 1987 priorities and guidance.   Pilot
     the reporting of negotiated funding levels for the major
     functional work areas (Regulation and Program Planning,
     Monitoring, Enforcement, Permitting, and Administration).

(3)  Continue to develop and modify,  as necesary,  new  source
     program guidance and policies to keep state  and local  agencies
     abreast of development and changing requirements.

(4)  Update  and maintain the clearinghouse for  BACT/LAER determi-
     nations.  Provide timely updates to permitting agencies,
     helping to ensure consistent and effective permitting decisions

(5)  Operate the control technologies (modeling)  clearinghouse  to
     ensure  that technically correct  and consistent modeling
     procedures are applied in  reviews of significant  sources.

(6)  Update  the ambient monitoring strategy for criteria
     pollutants.

(7)  Continue litigation activities on CMA issues  and  other
     challenges.

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                               -30-
(8)   Complete  development  and  issue  computer  codes  and  user's  guide
     for performing  complex  terrain  dispersion  analyses and  for
     analyzing air quality impacts  from tall  stacks.   (ORD)

Key  FY 1987 Regional  Office  and  State  Actions to  Implement  Program
Goal

Tier  1 Actions:

(1)   Conduct biennial  audits of  state  and  key local  air pollution
     control programs.   Complete on  schedule  the  audit  reports
     for individual  programs.   (States/Regions)

(2)   Initiate  actions to correct deficiencies identified by  the
     FY 1986 audits  of  individual  state and  key local  programs.
     Include corrective actions  in  grant workplans.  (States/Regions)

(3)   Implement Agency policy and OAR guidance on  performace-based
     grants.  Negotiate with state  and local  air  grantees workplans
     and agreements  for continuing  program support  that addresses
     national  priorities,  SPMS measures, and  all  Tier  I actions
     (if applicable  to  the state)  identified  in the Agency  Operating
     Guidance. Quantify workplan commitments  that address national
     priorities,  SPMS measures,  and  Tier I actions  and  negotiate
     funding levels  for individual  national  priorities.  Implement
     performance-based  grant reporting system providing complete
     and timely reports on commitments, progress, and  funding
     levels.  (Regions)

(4)   Maintain  effective state and  local programs  for new source
     review, prevention of significant deterioration,  and NSPS
     implementation, with  adequate  enforcement response to
     violations.   Take  direct enforcement  action, as necessary,
     when a state has not  been delegated authority  or  a state
     fails to  take timely  and appropriate  action.  (States/Regions)

(5)   Maintain  NAMS and  SLAMS operations.  Update  quality assurance
     programs  to  reflect revised technical guidance and program
     requirements and carry  out  quality assurance system audits.
     Review and revise  networks, as  appropriate,  giving priority
     to timely preparation and review of network  descriptions  for
     PM1().  (States/Regions)

(6)   Report all required air quality,  quality assurance, emissions
     and compliance data on  schedule.   (States)

(7)   Continue  programs  to  replace  worn-out or obsolete  continuous
     analyzers and laboratory equipment in the NAMS network (as
     identified in the  1985  National Air Monitoring Audits).  Give
     priority  to  replacing ozone analyzers in post-1987 nonattain-
     ment areas.   (States)

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                               -31-
Tier 2 Actions:

(1)  Develop for the few remaining  state and key  local  agencies
     approvable  programs for the prevention of significant
     deterioration or agreements to accept  delegation of the
     federal program.  Promote automatic delegation processes
     for NSPSs and NESHAPs.   (States/Regions)

(2)  Support the BACT/LAER clearinghouse by submitting  determina-
     tions to EPA in a timely manner.   Although clearinghouse
     participation is voluntary, the clearinghouse  does benefit
     states and  local agencies by providing a  comprehensive  data
     base for new source permitting decisions.   The extent  and
     quality of  the data base depends  on the degree of  agency
     participation.  (States/Regions)

(3)  Continue programs to replace worn-out  or  obsolete  continuous
     analyzers and laboratory equipment in  the SLAMS network
     (as identified in the 1985 National Air Monitoring Audits).
     (States)

(4)  If final rules include  surface coal mine  fugitive  emissions
     in determining whether  sources are subject to  new  source
     review, develop and implement  this addition  to the rules,
     including the workshops, training, and reference materials
     needed to delegate this portion of the program to  state and
     local agencies. (States/Regions)

D.  Program goal:  Determine the policy alternatives and strategy
                   options available to address acid deposition,
                   stratospheric ozone depletion, and indoor air
                   pol I uti on.
1.
    Program objective:   Identify policy implications of the results
                        of the National Acid Precipitation  Assess-
                        ment Program (NAPAP);  determine policy
                        information needs that must be addressed.

In FY 1987 EPA will  place particular emphasis  on the review of
research results from NAPAP.  EPA's air program will actively
participate in the research planning processes of NAPAP and ORD
to ensure that policy information needs are being adequately
addressed by the national research program.

2.  Program objective:   Evaluate critical implementation and
                        policy issues in addressing acid deposition
                        and define options for their resolution.

EPA will continue a  cooperative  effort  with states to examine
potential implementation issues  associated with the enactment of
an acid rain control  program.   In FY 1987 EPA  will emphasize the
development of specific options  for resolving  these issues.  EPA
and the states will  give special attention to  ensuring that the

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                               -32-
1985 NAPAP emission inventory contains a thorough and  accurate
characterization of the 1985 emissions in each of its  specified
categori es.

3.  Program objective:   Determine the need for a CFC regulatory
                        program to reduce stratospheric ozone
                        depletion; coordinate the EPA  position
                        with the international  community.

In FY 1986 EPA will focus on developing a national  and international
consensus on the nature and  magnitude of the CFC problem.   In FY
1987 these efforts will culminate in  a decision on  the need  for
domestic  regulation and on a United States negotiating position
on the development of an international protocol.

4.  Program objective:   Provide a coordianted EPA approach to
                        indoor air pollution policy analysis,
                        risk assessment, and strategy  development.

In FY 1987 EPA will establish a policy development  and analysis
capability to help guide and coordinate the Agency's response to
indoor air quality problems.  EPA programs have in  the past  dealt
with indoor air as a normal  portion of their activities (e.g.,
home use of pesticides).  In FY 1987 EPA will provide  more struc-
tured coordination of  indoor air policy analysis, risk assessment
and strategy development.  EPA will also continue working with
state and  local agencies, other federal agencies, and  private
organizations who  have  the  interest and capacity to improve
i ndoor ai r  quali ty.

ORD will  place  increased  emphasis  on more fully  evaluating total
 human exposure  to  air  pollutants.  In  FY  1987 ORD will conduct
 field studies  to  measure  human  exposure  to  indoor  air  pollutants,
 evaluate the  corresponding  physiological  and  biochemical  changes,
 characterize  the  emission sources, and evaluate mitigation
 techni ques.

 Key  FY 1987 Headquarters  Actions  to  Implement  Program  Goal

 Tier  1 Actions:

 (1)   Evaluate  and  synthesize  results  of  FY  1986 STAR  projects.

 (2)   Assist ORD and  NAPAP in  design  and  preparation of  1987
      assessment.

 (3)   Complete  draft  of options  of implementation issues  of  external
      revi ew.

 (4)   Publish  a decision on  the  need  for  regulatory  actions  to
      reduce CFCs.

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                               -33-
Tier 2 Actions:

(1)  Work with states on developing model  implementation guidance.

Key FY 1987 Regional  Office and State Actions to Implement Program
Goal

Tier 1 Actions:

(1)  Submit comprehensive 1985 emission inventories for sulfur
     oxides, nitrogen oxides, and VOCs.  (Regions)

(2)  Assist in the evaluation and synthesis of STAR projects.
     (State/Regi ons)

(3)  Provide procedural  and technical guidance on verification of
     1985 emission inventories. (Regions)

(4)  Assist in the development of implementation options.
     (States/Regions)

Tier 2 Actions:

(1)  Assist in the development of the draft strategy implemenation
     document.  (States/Regions)

(2)  Identify acid rain  research  needs of  states and Regional
     Offices and  provide these to the Multi-media Energy Research
     Committee.  (States/Regions)

E.  Program goal:   Develop and support programs to  maintain
                   environmental  quality.

1. Program objective:  Develop NSPSs for all  source categories on
                       the priority list.

In FY 1987 EPA will  continue to implement  a three-part NSPS
program.   EPA will give  priority  to part 1, the completion of  at
least one NSPS for each  source category on the NSPS priority list
for which the Agency  has identified best demonstrated technology
(BDT).

Part 2 of the NSPS program is a longer-term effort, investigating
BDT for other pollutants and facilities on the priority list and
for 27 source categories identified before the priority list was
promulgated.  Part 3  encompasses  the continuing aspects of the
NSPS program:  reviewing each NSPS on the  four-year cycle  required
by the Clean Air  Act, revising an NSPS when appropriate, reevalu-
ating the status  of  the  21  source categories  on the priority list
for which work has been  suspended, and evaluating other source
categories not currently on the list.

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                               -34-
2.   Program Objective:  Implement and  maintain  effective  continuous
                        compliance programs.

Continuous compliance will  remain one  of the  major efforts  of  the
stationary source compliance  program.   EPA is committed to  a  variety
of continuous compliance studies  and projects which will  result
in improved compliance monitoring techniques  and  increased  state
and Regional inspection  and compliance determination expertise.
Many of these projects have already produced  valuable results  and
techniques.

The major thrust of the  continuous compliance program is  to
improve the effectiveness of  compliance monitoring inspections
conducted by EPA and the states.   In this regard, EPA issued  in
FY 1984 guidance on the  expanded  use of unannounced inspections
to increase the likelihood  of detecting noncompliance problems.
In FY 198b EPA revised its  inspection  frequency guidance  for
FY 1986 to provide states with greater flexibility to target
inspections and, importantly, included a definition of a  minimally
acceptable inspection.  EPA will  complete the Model Surveillance
Targeting Program in FY 1986.  A result of this project,  which
will be available in FY  1987, is  a more systematic and efficient
method to target inspections.

Integrating Continuous Emissions  Monitoring (CEM) into compliance
monitoring is a major effort  within the continuous compliance
program.  During FY 1985, EPA began a  process to establish  a  base
CEM program in all Regions.  The  results of the Region VII  CEM
pilot will be available in FY 1986 and will help promote broader
Regional Office and state CEM programs.  To facilitate making
CEM a national program,  EPA has issued guidance on the use  of
excess emission report data and on using the CEM subset in  the
Compliance Data System.   In FY 1986 EPA will  complete guidance
on using CEM data for direct  enforcement.  During FY 1987,  EPA
will continue actively promoting  the CEM program.

In FY 1987  EPA will complete development of guidance for states
and Regions on the major causes of malfunctions for the various
types of control equipment and for selected process operations.
A computer-based model data system to handle malfunction data
will be developed in conjunction with this project.  These  two
efforts will strengthen the capabilities of EPA and the states
to respond to alleged malfunction situations.  Also, EPA will
develop a model recordkeeping system for major types of control
equipment,  as well as guidance on records analysis procedures
to facilitate review of the data associated with the record-
keeping system.

3.  Program objective:  Protect visibility in Class I areas.

In a settlement agreement with the Environmental Defense Fund,
EPA agreed  to promulgate visibility protection plans for 34
states that had not met Clean Air Act  requirements.  The EPA

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                               -35-



will  complete the plans in a two-part promulgation that ends in
FY 1987.

FY 1987 Headquarters Actions to Implement Program Goal

Tier  1 Actions:

(1)   Promulgate  federal programs  to correct deficiencies in
     implementation control  strategies, long-term strategies, and
     integral vistas in state visibility protection plans.

(2)   Approve state visibility plans for implementation  control
     strategies, long-term strategies,  and integral vistas  for
     those states that submitted  SIP revisions pursuant to  the
     provisions  of the settlement agreement with the Environmental
     Defense Fund.

Tier  2 Actions:

(1)   Provide policy and technical guidance to Regional  Offices
     to implement the second part of the settlement agreement
     with the Environmental  Defense Fund.

(2)   Provide policy and technical guidance on the federal  visibility
     monitoring  programs established under the first part  of the
     settlement  agreement with Environmental  Defense Fund.

(3)   Propose one NSPS and promulgate 15 NSPSs.

(4)   Implement continuous compliance projects and studies.
     Complete malfunction technical guidance, malfunction  model
     data system, and recordkeeping guidance.  Promote  the  accep-
     tance and implementation of  recommendations and techniques
     resulting from continuous compliance projects.

FY 1987 Key Regional Office  and State Actions to Implement
Program Goal

Tier  1 Acti ons:

(1)   Review and  track the SIP revisions submitted by states to
     avoid federal promulgation of visibility protection plans
     according to the schedule contained in the Environmental
     Defense Fund settlement agreement. (Regions)

Ti er  2 Acti ons:

(1)   Assist states in improving their compliance monitoring
     capabilities by upgrading their inspection and CEM/coal
     sampling and analysis programs using techniques developed
     in previous continuous  compliance  projects. (Regions)

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                               -36-
(2)  Initiate SIP development  efforts  to  correct  deficiencies  in
     state visibility protection plans in states  with federally
     promulgated plans.  (States)


IV.  STRATEGY FOR THE RADIATION PROGRAM FOR FY  1987

The EPA strategy for the national  radiation program is based  on
two major program goals:

     0  Reduce the risk  of exposure to unhealthful  levels
        of radiation

     0  Maintain comprehensive surveillance and effective emergency
        response capabilities

There are a variety of sources of radiation exposure, and legis-
lative authorities to deal with radiation sources.   EPA has
chosen to emphasize regulatory control over two general categories
which contribute to radiation  exposure: airborne  radionuclides,
and disposal of radioactive wastes.  These categories have  been
given priority because they represent  the greatest  health hazards,
legislative authority is available to  remedy the  problems,  and
the radiation levels are amenable to reduction.  The Agency also
continues to exercise its federal  guidance role in  the radiation
protection community.

In addition to implementing a  regulatory  and guidance program,
the Agency pursues three objectives of environmental assessment
in providing a radiation protection program to  the  public.   These
objectives include: (1)  maintain a capability to  assess and quantify
existing and emerging radiation problems  and the  potential  impact
of technologies under development, (2) be able  to evaluate  and
respond to issues of serious public concern and to  identify the
organization responsible for corrective action, and (3) maintain
a capability to respond  to emergencies and to aid development and
testing of state, local, and federal plans for  emergency response.
This environmental assessment  effort is concentrated in EPA field
facilities and Regional  Offices.


V.  GUIDANCE FOR THE RADIATION PROGRAM

A.  Program Goal:  Reduce the  risk of exposure  to unhealthful
                   levels of radiation

In an effort to address  the health impacts of indoor radon  exposure,
the Office of Radiation  Programs (ORP), in conjunction with ORD,
O.PPE, and other Agency  offices, has undertaken  a  strategy for
indoor radon assessment  and mitigation.  This strategy addresses
the elevated levels of  indoor  radon found in some homes on  the

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                               -37-
Reading Prong in eastern Pennsylvania, New Jersey and New York;
assesses the national  risks of exposure;  and provides an integrated
approach to assist states and the private sector in dealing with
the problem.

In FY  1987 ORP will  continue to provide technical assistance
related to radon to  the states involved,  disseminate information
to the public, and develop criteria for preventive measures in
construction.  The Agency will also assist with the mitigation of
problems in existing homes through the development and application
of techniques to reduce radon in the homes.

As part of the national strategy on indoor radon, the design of
the national assessment and pilot testing of the methodology will
be completed in FY 1987.  The design of a data handling system
will  also be completed.  Demonstrations of low cost remedial
techniques and preventive construction practices will be undertaken,
and cooperative projects with industry will  be initiated.  Develop-
ment  of interim models for predicting the radon hazard potential
of land will be continued.  Demonstrations of remedial actions in
cooperation with ORD and with state and local governments will be
continued.

The disposal of radioactive wastes in an  environmentally sound
manner is a complex  task that requires the collective efforts of
the Department of Energy, the Nuclear Regulatory Commission,
individual states, and private industry,  in  addition to EPA.  The
Agency's principal role in this effort is to establish environmental
standards which limit  exposure from the various categories of
radioactive wastes,  so as to pose minimal public health risks.

Because of the different types and toxicities of waste being
considered, these problems are treated separately in the develop-
ment  of standards for  land disposal of low-level wastes, including
natural  and accelerator produced materials and for residual radio-
activity at decommissioned nuclear facilities.  The Agency expects
to promulgate final  rulemaking for land disposal of low-level waste
in FY  1987.  ORP will  continue to provide technical assistance to
the Office of Water  for the issuance of regulations governing the
ocean  disposal of low-level waste.  Technical work in support of
possible residual radioactivity regulations  will continue.

Under  Reorganization Plan #3 of 1970, the Agency was transferred
the authority of the former Federal Radiation Council to advise the
President with respect to radiation matters  directly or indirectly
affecting health, including guidance for  all federal agencies in
the formulation of radiation standards.  A continuing role is
necessary in implementing the federal guidance covering radio-
frequency radiation  and occupational exposure to radiation.
Protective action guides for relocation and  resettlement will

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                               -38-
be completed and added to  the Manual  of Protective Action.
Continued support will be  given to other federal  agencies in the
implementation of existing federal guidance.

A determination will  be made on the need for  the  regulation of
phosphogypsum piles under  section 112 of the  Clean Air Act.
EPA will also complete implementation of radionuclide NESHAPs in
EPA Headquarters and at the Regional  Offices.  A  comprehensive
environmental assessment program pertaining to multiple sources
of radiation in two Idaho  communities will  continue, with surveys
of various pathways.  Support to the Office of Drinking Water on
the review of drinking water standards will be completed.

Key FY  1987 Headquarters Actions to Implement Program Goal

Ti er 1  Acti ons :

(1) Complete pilot tests of the national radon assessment
    methodology.

(2) Evaluate techniques for radon mitigation in existing homes
    and  prevention in future construction. (0 R P / 0 R D)

(3) Implement home mitigation training programs for contractors
    on  the Reading Prong.

(4) Develop interim models for predicting  radon hazard potential.

(b) Publish final environmental standards  for low-level waste
    disposal.   (ORP/OSWER)

Ti er 2  Acti ons :

(1) Continue technical work in support of  a  residual  radioactivity
    regulati on.

(2) Continue support  to other federal  agencies in the implementa-
    tion of  radiofrequency radiation  federal  guidance.

(3) Complete the  implementation  of radionuclide NESHAPs.

 (4) Determine the  need  for regulation  of phosphogypsum piles.

Key FY  1987  Regional  Office  and  State  Actions to  Implement  Program
Goal

Tier  1  Actions:

 (1) Participate with  Headquarters  Offices  on the  implementation
    of  the  indoor  radon strategy.

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                               -39-
(2) Provide states with technical  assistance and liaison for
    guidance interpretation and radon measurement and mitigation
    support.

(3) Participate with Headquarters  Offices in the identification
    and assessment of sites which  are contaminated with radio-
    acti vi ty.

Tier 2 Actions:

(1) Assist  Headquarters Offices in the development of standards
    by participating in Agency working groups.

B.  Program Goal:  Maintain comprehensive surveillance and effective
                  emergency response capabilities

The Environmental  Radiation Ambient Monitoring  System (ERAMS)  is
the only  national  multi-media surveillance system which provides
timely measurements of ambient radiation levels in air, drinking
water, surface water, and milk.  ERAMS also has the capacity for
rapid assessment of elevated radiation levels which may occur
because of  natural or man-made incidents (such  as the atmospheric
testing of  a nuclear weapon).  The 268 sampling locations are  found
in every  state.  In FY 1987 EPA will continue to emphasize improving
the responsiveness of ERAMS in an  emergency.  EPA will  also conduct
further explorations to determine  if the system can be  used to
collect environmental samples for  analysis of nonradioactive pollu-
tants.  Arrangements will be made  to share environmental samples
collected through  the ERAMS network with EPA program offices
that express a need for these samples.

The protocol for surface and drinking water sampling operations
will be modified to provide sequential sampling, consistent with
the needs of other EPA offices for these samples.

The two field  facilities of ORP have the capability for designing
and conducting field studies to determine the nature and extent
of radioactive contamination in a  variety of media.  In FY 1987
ORP will  again assess problems and recommend remedial actions  to
OSWER to  address sites on the National Priority List.  ORP and
OSWER will  work closely to ensure  that appropriate remedial
actions are taken  at sites contaminated by radiation.

ORP will  also  continue to investigate problems  of elevated environ-
mental radiation levels which pose significant  public health
hazards.   The  study initiated in cooperation with the State of
Idaho to  investigate all sources of radiation exposure  around
Pocatello and  Soda Springs will continue with surveys of various
pathways.  The unique capabilities for the assessment of electro-
magnetic  radiation levels will be  maintained, with emphasis

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                              -40-
placed on determining the extent to which populations may face
unnecessarily high exposures  to radiofrequency  radiation.

Construction of a new building for the  Montgomery,  Alabama,  field
facility will proceed.

Key FY 1987 Headquarters Actions to Implement  Program Goal

Tier 1 Actions:

(1) Continue the study  of radiation sources  around  two Idaho towns.

(2) Address problems at sites listed on the  National  Priority List,
    in coordination with OSWER.

Tier 2 Actions:

(1) Complete update of  ERAMS  air monitoring  stations.

(2) Publish on a quarterly basis the results of analyses taken
    from environmental  samples collected at  268 ERAMS stations.

(3) Continue dialogue with other EPA offices to extend collection
    of environmental samples  to meet the needs  of other program
    offi ces.

(4) Provide support to  federal, state,  and local  requests for
    assistance in resolving problems involving  ionizing and
    nonionizing radiation, where significant public health risks
    may be involved.

(5) Participate in Federal Emergency Management Agency (FEMA)
    and EPA exercises as a means of maintaining and improving
    emergency response  capabilities.

Key FY 1987 Regional Office and State Actions to Implement Program

Goal

Tier 1 Actions:

(1) Assist in continued coordination of the  Idaho Study.

(2) Participate in identification, assessment and remediation of
    National Priority List sites contaminated by radioactivity.

Ti er 2 Actions:

(-1) Participate in the  review, testing, and  critique of state and
    local emergency response  plans for nuclear  facilities.

(2) Participate in FEMA and EPA sponsored emergency response
    exercises conducted within respective regions.

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                              -41-
              OAR SUPPLEMENTAL GUIDANCE SCHEDULE

                   FOR ISSUANCE IN FY 1986
          Guidance
Scheduled Completion
0  AIR TOXICS:   Strategic
                PIanni ng
                Initi ati ve
         Q 4
   OZONE ATTAINMENT:   Strategy
   ENFORCEMENT:   Federally
                 reportable
                 vi ol ati on
         Q 4


         Q 3
0  GRANTS:   Allocation policy
         Q 3

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Office of
Water

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                      TABLE OF CONTENTS
I.    GUIDANCE OVERVIEW

     A.  New Program Thrusts and Priorities for FY 1987               1
     B.  Water Program Performance - Based Assistance Policy          3

II.  WATER PROGRAM GUIDANCE                                           6

     A.  SAFE DRINKING WATER ACT PROGRAMS                             7

         1.  Public Water System Supervision Program                  7
         2.  Drinking Water Standard Setting and Health Advisories   10
         3.  Underground Injection Control Program                   11

     B.  GROUND-WATER PROTECTION PROGRAM                             13

         1.  State Ground-Water Protection Activities                13
         2.  Sources of Ground-Water Contamination                   14
         3.  Guidelines for Ground-Water Protection                  14
         4.  EPA Ground-Water Focus and Coordination                 15

     C.  MARINE AND ESTUARINE PROTECTION AND GREAT LAKES PROGRAM     16

         1.  Ocean Disposal Program                                  16
         2.  Programs for Chesapeake Bay, Estuaries and Great Lakes  17
         3.  Marine Discharge (§301(h)) Variances                    20
         4.  Ocean Disposal (§403(c)) Criteria Evaluations           20

     D.  CLEAN WATER ACT PROGRAMS                                    21

         1.  Cross-Program Management Initiatives                    21

               a.  National Municipal Policy                         21
               b.  Sewage Sludge Management                          22

         2.  Water Quality Standards, Planning and Assessment        24

               a.  Water Quality Standards and Criteria              25
               b.  Monitoring and Wasteload Allocations              26
               c.  Water Quality Management Planning/Priority        27
                   Waterbodies
               d.  Nonpoint Source Management                        28

         3.  Permits and Enforcement                                 28

               a.  Permits                                           29
               b.  Enforcement                                       30
               c.  Pretreatment                                      31
               d.  State Program Approval, Review and Oversight      33
               e.  RCRA Activities for NPDES Facilities              34

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4.  Construction Grant Program                              35

      a.  Transition to State and Local Self-Sufficiency    36
      b.  Effective State/Regional Management               37
      c.  Effective Construction/Program Integrity          37
      d.  Completed Projects                                39
      e.  Program Management                                40
      f.  Performance of Facilities                         40

LIST OF SUPPLEMENTAL GUIDANCES TO BE ISSUED                 41

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      FY 1987 OFFICE OF WATER AGENCY OPERATING GUIDANCE
I.   GUIDANCE OVERVIEW
The Office of Water portion of the FY 1987 Operating Guidance
provides national direction to EPA Regions, States and the
regulated community in carrying out programs mandated under
Federal water protection statutes.  These statutes include:
the Safe Drinking Water Act (SDWA), the Clean Water Act (CWA)
and the Marine Protection, Research and Sanctuaries Act
(MPRSA).  The Office of Water and the States also implement
programs to protect groundwater quality through authorization
under several different statutes described in the Groundwater
Protection Strategy.

This portion of the guidance is arranged in three sections.
The first outlines the new program thrusts and priorities for
FY 1987 and the water program policy for Regional negotiation
of the FY 1987 program assistance to the States.  The second
section contains the specific program guidance and priority
activities for each major water program.  The third section
is the "water" portion of the appendix, which identifies the
strategic planning and management system (SPMS) measures to
be used in evaluating performance on priority activities in
each of the critical program areas.

In addition to the SPMS measures, the Office of Water will
again be publishing a program evaluation guide for FY 1987.
The guide will include definitions, procedures and evaluation
measures for reviewing Regional Office and State agency perform-
ance on water program activities during FY 1987.

The text and priority activities that follow do not assume
passage of any new legislation pending at the time of
publication.  Supplemental guidance will be issued for FY 1987
to implement the legislation once enacted.


A.   New Program Thrusts and Priorities for FY 1987

In FY 1987 and beyond, management of the water programs will
follow five major directions, consistent with the Administrator's
management plan and Agency goals and priorities.  The priority
activities outlined in Part II support and build upon these
five broad, crosscutting program directions.

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                             -2-


Implement Our Basic Programs with a Focus on Environmental
Results

Much of the effort in FY 1987 will be to aggressively implement
standards, regulations, and policies already in place.
Highest priority efforts in this area include support for
State implementation of ground-water protection strategies
developed in FY 1985 - 1986, strong and consistent implementation
of the National Municipal Policy, a shift to pretreatment compliance
and enforcement, a move to compliance and enforcement in the
UIC program, and the first steps in the transition to State
and local responsibility for construction of publicly-owned
wastewater treatment works.  The Agency will also initiate
new VOC monitoring requirements for public water systems,
based on promulgation of new drinking water standards, and
implementation of drinking water health advisories where
regulations are not warranted.

To improve our focus on environmental results, the water
program in FY 1987 will reorient monitoring across
water programs to better determine accomplishments, improve
compliance information, identify unregulated contaminants,
and anticipate future problems.  The water program will also
pursue performance improvement in the field through support for
geographic initiatives, use of priority waterbody lists,
implementation of the ground-water monitoring strategy,
drinking water health advisories, and technical assistance
for permit and compliance decisions.

Expand Emphasis on Toxics Controls Across All Programs

Several major new thrusts will take place in FY 1987 related
to toxics controls in ground-water and surface water.
Priority efforts include new water quality and permit toxics
criteria development, implementation of the TSCA ground water
strategy, new focus on applying drinking water standards for
water quality-based toxics controls, and the beginning of an
incineration-at-sea program for disposal of hazardous wastes.

Strengthen Protection of all Waters from Difficult or
Uncontrolled Sources

Major new efforts will move forward in FY'1987 to investigate
and develop programs for abating toxic and conventional
pollution from uncontrolled sources.  These efforts will
include implementation of a base nonpoint source program to
implement the National NonPoint Strategy, development of a

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                             — 3 —
sediment strategy to identify toxic contamination in sediments,
an increased and stronger emphasis on basin-wide estuarine
management, implementation of the pesticides in ground-water
strategy, the development of Technical Information Publications
(TIPs) for sources of ground-water contamination of significant
concern, continuation of the pesticides in ground-water
survey, and initial studies on unregulated industry categories
with toxic dischargers.

Focus on Cross Media Impacts

Increased awareness is needed by water program managers of
the intermedia impact of the Agency programs, both the impact
our programs have on other media (e.g., air) and the impact
other programs have on our activities.  In FY 1987, several
major efforts are planned that will move toward intermedia
decision-making: implementation of the sludge management
program; implementation of the ground-water classification
guidelines; promulgation of the organics (plastics and
pesticides) industry effluent guidelines;  implementation of
new RCRA requirements at POTWs, industrial NPDES facilities,
and at Class I UIC wells; and water program participation in
other program working groups.

Broaden Public Awareness/Outreach

The water program plans to pursue several external outreach
initiatives in FY 1987 to better communicate water program
policies to our constituencies.  These initiatives will focus
on increased communication with Congress,  State agencies and
associations, public interest groups, trade associations, and
industries.  In addition, the program will aggressively pursue
ways to ensure that other Federal agencies continue addressing
environmental issues of common interest (e.g., nonpoint
source, oceans).  The program will use the Communications
Strategy Plan process (coordinated by the Office of External
Affairs) to inform the public and affected groups of the
regulatory decisions and actions we take.

B.   Water Program Performance-Based Assistance Policy

On May 31, 1985, the Administrator issued the Policy on
Performance-Based Assistance, which explicitly links EPA
assistance to effective State performance.  This section
supplements the Agency policy for program grants administered
by the water programs.  The policy has three components:
negotiation of work programs, oversight of program performance,
and actions to reward accomplishments and correct problems.

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                             -4-
Performance-based assistance programs are built on commitments
jointly negotiated prior to grant award.  Work programs must
provide for early warning of missed commitments and a mechanism
to respond to them.  The overall approach is to use the
assistance process to jointly agree on how and to what extent
Agency and State priorities will be met.

The water program performance-based assistance policy applies
to all State and local assistance programs under the Clean
Water Act, Safe Drinking Water Act, and related appropriations.
Funding priorities should be based on the Agency priority
list, the individual program priority activities (see part
II), and achievement of State SPMS commitments.  All water
program assistance agreements in FY 1987 are to be consistent
with the policy outlined in this section.

Negotiation of Work Programs

Regions and States are to tailor their work programs to the
priority activities listed in Part II of this guidance,
recognizing the individual Region/State circumstances and
priorities and the level of program assistance.  Regional
Offices may issue written guidance tailored for each State to
incorporate national, Regional, and State priority activities
into the work program negotiation process.  Work programs
must contain realistic commitments for every national SPMS
measure.  It is critical that the work program clearly identify
both the performance expectations and the plan for EPA's
evaluation of State performance.  The States should be
encouraged to provide a comprehensive work program that
includes activities outside those paid for under the assistance
agreement.

Oversight of Program Performance

Oversight will be designed to give an early indication of
State progress and problems in meeting the work program
commitments.  Regional Offices must monitor and evaluate
program performance both informally and formally, maintaining
continuous dialogue with the States to give early warning of
emerging  issues.  Regions must conduct a minimum of one on-
site raid-year evaluation, culminating in a report of findings
and  follow-up activities.  Regional reports must include
comments from the State on the report's findings.  A copy of
the mid-year evaluation report for each State  is to be sent
to Headquarters.

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                             -5-
Actions to Reward Accomplishments and Correct Problems

Follow-up actions to evaluate findings are meant to find the
most effective way to maintain and improve program performance.
Regional Offices should encourage good performance by
publicizing accomplishments and reducing the extent, level,
and scope of oversight.  Where appropriate, financial incentives
should be provided.  Likewise, where performance problems
exist, the Regional Office is to initiate a series of escalating
actions to resolve the problem in a quick and fair manner.
Where performance problems persist, actions should include the
use of the grant mechanism as outlined in 40 CFR Part 30 and
Subpart A of Part 35.  Corrective measures are to be based on
the severity and persistance of the performance problem, in line
with the performance expectations laid out in the original
work program.

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                             -6-
                           PART II
                FY 1987  WATER PROGRAM GUIDANCE
                    NOTE ON GUIDANCE FORMAT
Part II of this guidance contains specific program direction
and priority activities for FY 1987.  The priority activities
are of two types, activities that support one or more Agency
priorities or those that support one or more Office of Water
(OW) program priorities.  Activities that support Agency
priorities are denoted on the left-hand margin by an asterisk
(*) while activities that support OW activities are denoted by
a bullet (°).

Although many of these activities appeared word-for-word in the
FY 1986 - 1987 guidance others have been modified or added to
reflect changes in the program direction and/or responsibilities.
Modified priority activities are denoted by a dash (-) in the
right hand margin while new priority activities are denoted by
a plus sign (+).  This simple coding of priority activities
should considerably improve the reader's ability to identify
changes in program activity for FY 1987.

An additional note, the subsection identifiers (a, b & c . . .)
relate only to the structure of this guidance document and not
to the structure of the OW Evaluation Guide soon to be published.

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                             -7-
II. WATER PROGRAM GUIDANCE
A.  SAFE DRINKING WATER ACT PROGRAMS

Two of the priorities listed in the Agency's priority list for
FY 1987 are directly implemented through the drinking water
programs.  The first priority is to control drinking water
contaminants which encompasses implementing the Volatile Organic
Contaminant (VOC) Regulations, monitoring for unregulated
contaminants, promulgating additional standards as needed, and
ensuring compliance with the existing drinking water standards.
In addition, it includes expanding the health advisory program
in support of RCRA waste banning decisions, Superfund cleanup
activities, and control actions for agricultural chemicals.

The second Agency priority is the control of underground
injection.  This encompasses monitoring underground injection
permit issuance and enforcement efforts on existing facilities
that present the greatest threat to underground sources of
drinking water, and to review the current practices of under-
ground injection of hazardous wastes and initiate appropriate
control actions.

1.  Public Water System Supervision (PWSS) Program - Priority
Activities

*  The principal objectives of the State and Regional programs
   should continue to be the elimination of all violations of
   the National Interim Primary Drinking Water Regulations
   (NIPDWRs).  Of particular concern to EPA will be community
   water systems which are in significant noncompliance (SNC).
   (The new definitions of SNC, to apply to FY 1987, will be
   contained in the Office of Water Accountability System (OWAS)
   guide.  They will be subject to change dependent upon the
   outcome of the three PWSS Data Policy Seminars to be held in
   April.)  EPA's goal is that every SNC will either be returned
   to compliance, be operating under and adhering to an enforce-
   eable compliance schedule, or have a formal enforcement
   action taken against it to elicit compliance.  (Ongoing)

*  Regions and States are to negotiate annual targets for the
   maximum allowable number, and percent, of community water
   systems which are significant noncompliers.  For FY 1987,
   we ask that one combined target (rather than separate
   targets as has been the practice in the past) be set for
   systems which are significant noncompliers of any of three
   contaminants — microbiology, turbidity, and total trihalo-
   methane (TTHM).  (Regions may negotiate separate targets in
   addition to the combined target if they desire).  Further,

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                          -8-
we are not setting a national target for significant non-
compliers as has been done in past years.  Rather, Regions
are to negotiate each State's target based upon that State's
current compliance and capabilities.  We are, however,
asking that each State's target reflect, at least, a 10%
improvement over its previous year's results.  Regions
should negotiate for more than 10% improvement where they
believe States can achieve greater improvement.  (Ongoing)

States and Regions are to place greater emphasis on systems       ( + )
which violate a chemical (organics other than TTHM and
inorganics) or radiological requirement.  We will develop
a definition of what constitutes a significant noncomplier
of a chemical or radiological requirement during FY 1986,
and will track these systems and ask States to report en-
forcement activity to us during FY 1987.  We anticipate
requiring States to negotiate targets for these noncomplying
systems beginning in FY 1988.  (Ongoing)

States and Regions are to place high priority on the quality      (-)
of the compliance, inventory, and enforcement data submitted
to the Federal Reporting Data System (FRDS), as this data is
the foundation of much of EPA's oversight program.  As one
element of the quality assurance effort, Regions are to
continue to conduct data verifications of State violation            (
reports.  Regions are to follow up on those States for which
previous audits revealed reporting inconsistencies to ensure
that the recommendations made are being implemented and
that there has been an improvement in the quality of the
reporting. (Ongoing)

States and Regions will implement the VOC Regulations and the     (+)
requirement for monitoring the unregulated contaminants.  HQ
will develop guidance on implementation of these regulations
and on Agency support for enforcement of failures to monitor
for the unregulated contaminants. (First Quarter)

States and Regions should place special emphasis on tracking      ( + )
results, and improving compliance, of the Oceanic Islands
and other groups of systems which have an inordinately high
degree of noncompliance. (Ongoing)

States are to begin, if they are not already doing so, to         ( + )
enter into FRDS the analytical results where chemical and
radiological Maximum Contaminant Levels (MCL) violations
occur so that determinations can be made about degrees of
noncompliance.  (Ongoing)

HQ and Regions will increase their efforts to achieve better      (+)
coordination with the Offices of Solid Waste and Emergency
Response and Pesticides and Toxic Substances.  (Ongoing)

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                          -9-
Regions are to ensure that States have developed formal
compliance strategies and that they are being implemented.
(Ongoing)

States and Regions are to ensure enforcement actions are
timely and appropriate.  (HQ will revise, as necessary, the
existing national timely and appropriate "timelines" to be
consistent with the new definition of SNC.)  (Ongoing)

HQ and Regions will continue to review State enforcement
actions and will consider Federal enforcement actions on
noncompliers against which the States have not taken an
appropriate action and show no signs of immediate return to
compliance.  Regions will, in the conduct of their compliance
and enforcement programs, identify and refer to OIC for
investigation of suspected criminal conduct, "tips' or other
information relevant to criminal enforcement. (Ongoing)

States are to continue to provide quarterly inventory and
violation reports to Regions.  Regions are to discuss with
the States the goal of shortening the data submission and
review periods.  Regions are to place greater emphasis on
their own reviews of state compliance data,  both in terms
of quality and turnaround time.  When the quality of the
data reporting is maximized, we will focus on turnaround
time with the goal being the extraction of the compliance
data from the PROS within one quarter.  (Ongoing)

Regions will conduct intensive reviews of selected primacy
State programs. (Ongoing)

States and Regions are to collect and assess data on com-
pliance rates of "high priority" noncommunity water systems
(schools,  day care centers, factories, hospitals, campgrounds,
etc.), and begin an effort to improve the compliance of these
systems. (Ongoing)

Regions are to fully implement the PWSS program on Indian         (+)
lands to improve compliance with drinking water regulations
and should ensure that their program is consistent with the
Agency's Indian Policy. (Ongoing)

States and Regions are to ensure that compliance at Federal       ( + )
facilities is part of their compliance and enforcement pro-
grams.  To enable EPA to identify Federal facility compliance
automatically, States and Regions should ensure that Federal
facilities are correctly coded in FRDS.

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                             -10-
2.  Drinking Water Standard Setting and Health Advisories -
    Prioirity Activities


The Agency will continue to revise the National Primary Drinking
Regulations in phases and to develop health advisories.
In addition to satisfying the Safe Drinking Water Act require-
ments, the MCLs and advisories will assist Superfund cleanup
activities, response to contamination incidents, and other
purposes.

*  HQ will promulgate the first phase of revised National Primary
   Drinking Water Regulations for volatile organic chemicals
   (VOCs) and monitoring rule for unregulated VOCs.  (First
   Quarter)

*  HQ will promulgate recommended maximum contaminant levels
   (RMCLs) and propose MCLs for synthetic organic chemicals,
   inorganic chemicals, and microbiological contaminants.
   Requirements will be proposed for filtration and disinfection
   of surface water supplies and disinfection of ground-water
   supplies.  (Second Quarter)

*  HQ will promulgate RMCLs for radionuclides and propose MCLs.
   (Third Quarter)

*  HQ will continue with the review of Interim regulations and
   research results concerning disinfection by-products.(Ongoing)

*  Regions will assist States in drinking water contamination
   cases  involving regulated and unregulated contaminants and
   provide follow-up to water supply monitoring in coordination
   with other programs such as RCRA and Superfund. (Ongoing)

*  HQ will develop additional health advisories and disseminate
   to the Regions and States.  EPA Headquarters will direct a
   Performance Improvement Project to assist in use of the
   health advisories.  (Ongoing)

0  HQ will continue to conduct the National Pesticides Survey.
   (Ongoing)

0  HQ will finalize implementation of a third party certification
   program for drinking water additives, and will continue to
   review petitions for use of additives in drinking water
   during the transition to the third party program.   (Ongoing)

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                             -11-


3.  Underground Injection Control Program - Priority Activities

The major goal of the Underground Injection Control (UIC)
program in FY 1987 will be to assure the effective implementation
of high quality direct implementation and primacy programs.
Objectives for FY 1987 are to assure that: (1) programs conform
to applicable regulations and program descriptions; (2) reporting
is accurate and used for management purposes; and (3)  EPA and
primacy States take timely and appropriate action to resolve
instances of significant noncompliance.  A major Headquarters
activity will be to develop appropriate restrictions on the
injection of hazardous waste.


*  HQ and Regions will monitor and review mechanical integrity
   of injection wells authorized by Rule to determine compliance
   with the UIC regulations and determine whether the current
   regulations are adequate to protect Underground Source
   of Drinking Water (USDWs). (Ongoing)

*  States and Regions will complete the assessment of Class V
   wells required by regulations to determine the potential
   for contamination of ground-water through improper underground
   injection activities and/or practices.  (Ongoing)

*  States and Regions will vigorously control land disposal of    (+)
   hazardous waste using injection wells and HQ will complete
   the necessary studies to determine which hazardous wastes
   should be banned from land disposal by well injection.
   (Ongoing)

*  States and Regions will establish a strong field presence by
   conducting field inspections and surveillance, initiating
   compliance evaluations and commencing appropriate enforcement
   actions. (Ongoing)

*  States and Regions will review and make permit determinations
   for new and existing injection wells based on the following
   priority order: (Ongoing)

      1.  new Class II oil and gas wells.
      2.  existing Class I wells, if any.
      3.  existing Class III wells, if any.
      4.  new Class I and III wells.
      5.  existing Class II salt water disposal wells.

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                          -12-
Regions and HO will continue support for enforcement
cases begun in FY 1986 under the UIC enforcement
initiative.  (Ongoing)

States and Regions will annually inspect all Class I           (+)
and IV wells and Class II and III wells with significant
violations to verify compliance with permit and regulatory
requirements. (Ongoing)

States and Regions will respond promptly to all instances      (+)
of noncompliance by Class I and IV wells and significant
Class II, III, and V violations.  (Ongoing)

Regions will oversee delegated State programs, conduct
intensive reviews in selected States, negotiate                (-)
enforcement agreements, and take enforcement action where
the State has not or cannot respond to significant violations
in a timely and appropriate manner.  (Ongoing)

States and Regions will ensure compliance with all formal      (-)
enforcement actions through tracking and prompt follow-up
when deadlines are missed.  (Ongoing)

HQ and Regions will process sole source aquifer petitions.     (+)
Regions will review Federal projects in designated sole
source aquifer areas to assure that drinking water sources
will not be contaminated.  (Ongoing)

Regions will review existing Class II enhanced recovery        ( + )
permit files in lieu of repermitting. (Ongoing)

HQ will manage the necessary research studies to evaluate
the practice of storage or disposal of hazardous waste in
salt domes, bedded salt, and caves.  Regions will work
together with HQ to evaluate the research results and propose
changes to the UIC program regulations as necessary to protect
public health and the environment.   (Ongoing)

Regions will perform hydrogeological evaluations on ground-    ( + )
water contamination incidents that may have the potential
to contaminate drinking water sources. (Ongoing)

Regions and HQ will review alternative methods for demonstrat-
ing mechanical integrity of wells for which no current method
is yet acceptable (i.e., dual completion wells).  (Ongoing)

Regions will continue existing well  construction reviews to
complete their commitment to review  all wells within five
years. (Ongoing)

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                             -13-
B.  GROUND-WATER PROTECTION PROGRAM
The major objectives of EPA's Ground-Water Protection Strategy
include: 1) supporting State ground-water protection activities;
2) addressing sources of ground-water contamination; 3) adopting
guidelines for ground-water protection; and 4) providing greater
EPA ground-water focus and coordination.

This program addresses the first Agency goal of reducing risks
of exposure to existing pesticides and toxic chemicals.
Specifically, most aspects of this program focus on the third
priority under the first Agency goal to support development of
State strategies and programs as well as methods to address
sources of contamination of national concern.  This program will
address high priority concerns expressed in the Regions' Environ-
mental Management Reports.

1. State Ground-Water Protection Activities - Priority Activities

States have responsibility for the protection of the ground-water
resource and EPA has responsibility for the control of certain
contamination sources.  EPA will provide grant support for State
strategy development and technical and management assistance, with
the Regions serving as the principal contact with the States.

*  HQ and Regions will continue to refine section 106 State
   ground-water grant guidelines with final grant guidance avail-
   able in February.  (First/Second Quarters)

0  Regions will assist States in developing coordinated FY 1988
   ground-water work plans and strategies which will assess their
   ground-water protection problems and develop appropriate
   protection efforts.  (Third and Fourth Quarters)

*  HQ and Regions will jointly conduct three State workshops
   focusing on elements of successful State ground-water
   programs.  (Ongoing)

*  HQ and Regions will jointly conduct three workshops to foster
   the capacity to manage the classification guidelines and to
   implement the findings of the Technical Information Publica-
   tions (TIPs) such as that developed on septic tanks.  (Ongoing)

0  HQ will issue technical reports on ground-water management in
   areas such as monitoring, classification, well field protec-
   tion, and State/local coordination.  Topics will be determined
   with the Regions.  (Ongoing)

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                             -14-


*  HQ and Regions will carry out activities initiated in 1986        (+)
   related to aquifer mapping and classification.   Technical
   assistance will be provided to States,  in conjunction with
   the U. S. Geological Survey (USGS)  on aquifer mapping as it
   relates to ground-water quality management and classification.

2. Sources of Ground-Water Contamination - Priority Activities

The Strategy calls for efforts to determine the extent of problems
caused by ground-water contamination sources not covered by
Federal statutes and to provide assistance to States on appropri-
ate responses.

*  HQ will convene two technical panels to develop expert
   consensus and to produce Technical  Information Publications
   (TIPs) describing successful practices for dealing with
   selected unregulated activities affecting ground-water quality,
   (e.g., unregulated mining, run-off  from road salting).  Regions
   will assist in developing the TIPs  and in working with the
   States.  (Ongoing)

*  HQ and Regions will work with the Office of Pesticides            (+)
   Programs and the States to implement selected provisions of the
   Agricultural Chemicals in Ground-Water Strategy.  (Ongoing)

*  HQ and Regions will implement the ground-water monitoring
   strategy and hold meetings with States to address major prov-
   isions.  (First Quarter/Ongoing)

*  HQ will develop a ground-water data program capable of storing    ( + )
   and analyzing ground-water quality data collected by EPA,
   States, and private industry which will be linked to other
   ground-water related systems (e.g., USGS).  (Ongoing)

3. Guidelines for Ground-Water Protection - Priority Activities

EPA will issue guidelines based on a three-tiered classifica-
tion system taking into account the value and relative vulner-
ability of the resource.  Guidelines will apply to new and,
over time, existing ground-water programs.

0  Regions will assist States in implementing guidelines through
   technical assistance, workshops and other vehicles, as needed.
   (Ongoing)

0  HQ and Regions, working with RCRA and Superfund, will assess
   EPA ground-water regulations, guidelines, and policy state-
   ments and propose revisions to improve the consistency of
   ground-water programs.  (Ongoing)

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                             -15-


0  HQ will work to apply the ground-water classification,             ( + )
   monitoring, and other concepts of the strategy for nonpoint
   sources. (Ongoing)

*  HQ and Regions will work with States that have ground-water       (+)
   classification systems to help achieve the equivalence  of the
   State systems to EPA's so that the State system can be  applied
   to EPA programs in lieu of EPA's approach.   (Ongoing)

4. EPA Ground-Water Focus and Coordination - Priority Activities

EPA established ground-water offices in Headquarters and the
Regions. Using the strategy and other mechanisms EPA will
assure coordination among ground-water programs.

0  HQ and Regions will manage internal coordination committees to
   address major policy questions and to fully integrate Regional
   ground-water operations.  External coordinating committees will
   be managed to involve key constituency groups such as State/
   local governments and other Federal agencies.  (Ongoing)

0  HQ and Regions will manage MOU's with the U.S. Geological
   Survey and the Bureau of Reclamation to enhance collaboration
   in achieving ground-water protection goals.  (Ongoing)

0  Headquarters will represent EPA with the National Ground-Water
   Commission to be established under the RCRA reauthorization.
   (Ongoing)

0  HQ will continue a public information program to inform the       ( + )
   public on ground-water issues and EPA protection initiatives.
   (First Quarter/Ongoing)

0  ORD will continue to provide both technical information and       (+)
   improved methods for predicting contaminant movement, trans-
   formation, monitoring and aquifer reclamation including deve-
   loping laser-induced fluorescence for monitoring ground-water
   by fiber optics.

0  ORD will conduct studies to determine the effects of seasonal     (+)
   variation and sampling frequency on the accuracy and confidence
   of ground-water monitoring.

0  ORD will continue to focus on methods development and studies     (+)
   of subsurface transport and fate processes such as sorption,
   biological transformation, redox and hydrolysis.

0  ORD will conduct research to determine the cost-effectiveness     (+)
   of in situ aquifer restoration techniques, leading to cleanup
   where previously the cost was prohibitive.

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                             -16-


C.  MARINE AND ESTUARINE PROTECTION AND GREAT LAKES PROGRAMS

Title I of the Marine Protection, Research, and Sanctuaries Act
(MPRSA) regulates the transportation and ultimate disposal of
materials in ocean waters.  Its purpose is to prevent or limit
disposal of harmful materials and to establish a permit program
for disposal of dredged and other materials.  Clean Water Act
(CWA) provides for protection of marine, estuarine, and Great
Lakes water quality, including permitting secondary treatment
variances which comply with criteria, evaluating compliance of
ocean discharges with established criteria, and conducting
targeted programs to deal with major environmental problems.

These activities are responsive to the Agency's environmental
goal to maintain and improve water quality and also the goal to
protect near coastal waters.  The programs are supported by
Office of Research and Development, including development of
assessment procedures for ocean disposal of waste, procedures for
wasteload allocations to improve estuary source control decisions
and study of transport, fate, and effects of toxics in Great
Lakes.  Some activities result from problems cited in 1985
Environmental Management Reports, including national data
management system for estuaries, monitoring for 106 Mile Ocean
Disposal Site, and improved site designation for ocean disposal.

1.  Ocean Disposal Program

MPRSA required that the Agency establish criteria for ocean
disposal, which are in Agency regulations that establish a two
stage process for site designation and permit issuance.

MPRSA provides authority to designate sites and times for ocean
disposal of acceptable materials and any critical areas where
disposal may be prohibited.  Upon delegation of authority, the
Regions will assume site designation authority (except for incin-
eration-at-sea) and responsibility for attendant site designation
rule making and final decision packages.  The Agency has begun
evaluating sites for incineration-at-sea, and HQs will continue
to be  responsible for designating incineration-at-sea sites.

MPRSA  §102 requires EPA to establish and apply criteria in review
and evaluation of incineration-at-sea and other non-dredged
materials permit applications.  EPA reviews dredged material
permits prepared by Corps of Engineers based on EPA criteria.

a.  Site Designation - Priority Activities

0   Regions, with EPA HQs assistance, will continue to conduct
    field surveys to analyze impacts of waste disposal at
    existing waste disposal sites. (Ongoing)

0   EPA HQs, having delegated disposal site designation
    authority to Regions (except for incineration-at-sea), will
    continue to provide guidance for preparing environmental
    assessments and making designation decisions. (Ongoing)

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                             -17-


0   EPA HQs and Regions should complete activities in Memoranda
    of Agreement with Corps of Engineers on resources to
    designate dredged material sites. (Ongoing)

0   EPA HQs will continue providing technical support to Regions
    for developing environmental assessments or  impact statements
    and for continuing site management.  (Ongoing)

*   EPA HQs will conduct incineration-at-sea site monitoring to
    establish baseline data and to ensure adequate site
    management.  (Ongoing)

0   Regions will prepare environmental assessments or impact
    statements and site designation rule-making  packages, issue
    permits, and conduct monitoring reviews for  site management.
    (Ongoing)

b.  Permit Issuance - Priority Activities

*   EPA HQs will develop revisions to ocean dumping regulations    (-)
    in response to two law suits and statutory amendments, and
    will develop technical guidance for the revised regulations.
    (Ongoing)

0   EPA HQs will implement a research strategy for incineration-
    at-sea permits in cooperation with Office of Research and
    Development and permit applicants. (Ongoing)

*   EPA HQs will develop and implement incineration-at-sea
    regulations and, as appropriate, will develop and issue
    incineration-at-sea permits. (Ongoing)

0   EPA HQs will support monitoring activities necessary for
    evaluation of permit compliance in cooperation with U.S.
    Coast Guard, and take necessary enforcement  action. (Ongoing)

0   Regions will review Corps of Engineers  public notices for
    ocean disposal permits for dredged materials for compliance
    with EPA ocean disposal criteria.  (Ongoing)

0   Regions will review ocean disposal permit applications,
    require field and laboratory tests to evaluate wastes on
    case-by-case basis, conduct needed hearings, require monitor-
    ing to evaluate permit compliance, and  take  necessary
    enforcement action.  (Ongoing)

0   Regions will review and make determinations  on research and    (+)
    emergency ocean disposal permit applications.  (Ongoing)

2.  Programs for Chesapeake Bay, Estuaries  and Great Lakes

In FY 1987, EPA will continue ongoing basin-wide programs in the
Chesapeake Bay, Great Lakes, and support for study and planning
initiatives for selected State and local estuary programs.

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                             -18-
National estuary program funds will again be distributed under
cooperative and interagency agreements with individual estuary
program participants.  In FY 1987, emphasis will be on completion
of characterization of environmental status and trends and on
development of master environmental plans.

a.  Chesapeake Bay - Priority Activities

*   Chesapeake Bay States, with Implementation Committee and
    Liaison Office, will continue to implement 1985 Chesapeake
    Bay Restoration and Protection Plan. (Ongoing)

0   EPA HQs and Region will continue to coordinate EPA and other
    Federal programs for surface water toxics, loss of environ-
    mentally sensitive areas, and ground-water contamination
    affecting Chesapeake Bay.  (Ongoing)
    EPA HQs and Region will provide Bay States with technical and
    funding assistance for controlling nonpoint pollution sources
    and maintaining data base.  (Ongoing)
    EPA HQs and Region will support State monitoring programs for
    Bay's mainstem and key tributaries to assess water quality
    problems and evaluate abatement programs, and target inspect-
    ions and enforcement actions on sources in Bay area. (Ongoing)

    Region, with Bay States, will develop Phase II Implemen-       ( + )
    tation Program to be completed in three years.  (Ongoing)

    National Estuary Program - Priority Activities

    EPA HQs will develop criteria for selection of additional
    estuaries.  (First quarter)

    EPA HQs will provide technology transfer to assist programs    (-)
    with guidance and state-of-the-art science and methodologies.
    (Ongoing)

    Regions, with EPA HQs, will assist estuary program partici-    ( + )
    pants in implementing national guidance. (Ongoing)

    Regions and EPA HQs will develop data evaluation systems to
    complete characterization of status and trends, to define
    pollution and resource problems, and to identify management
    initiatives.  (Ongoing)

    States and program participants, with EPA HQs and Regions      ( + )
    assistance, will carry-out estuary projects funded under
    FY 1986 workplans.  (Ongoing)

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                             -19-


*   States and program participants will conduct characterization  (+)
    of status and trends, assessment of living resources, and
    preparation of information and presentation materials on each
    estuary program. (Second and third quarters)

0   Regions, with EPA HQs assistance, will develop funding agree-  ( + )
    ments with program participants from approved FY 1987 annual
    workplans to address and carry-out workplan elements.
    (Second quarter)

0   EPA HQs and Regions will continue to coordinate with NOAA and
    other federal agencies on research and monitoring activities
    in estuaries.  (Ongoing)

c. Great Lakes (GL)  - Priority Activities

0   Regions and GL States will participate in activities of Inter-
    national Joint Commission (IJC) and IJC Water Quality Board
    and track U.S. progress in meeting terms of GL Water Quality
    Agreements.  (Ongoing)

0   GL States will continue to implement phosphorus load reduc-    (+)
    tion plans for Lake Erie, Lake Ontario, and Saginaw Bay, and
    participate in 1988 bi-national review of progress in
    reaching the target loads. (Ongoing)

0   Regions and GL States will continue to investigate and report
    remaining effluent toxicity from point sources in GL Basin,
    including toxicity testing for major municipal treatment
    plants, major iron and steel sources, petroleum refineries,
    chemical manufacturers, and pulp and paper mills.  (Ongoing)

0   Regions and GL States will continue to investigate and report  ( + )
    effluent concentrations and quantities of top priority
    compounds identified by IJC, consisting of the eleven primary
    track compounds  identified to date, and will complete for
    appropriate industrial categories as part of permit
    reissuance process.  (Ongoing)

0   Regions and GL States, supported by GL National Program        (+)
    Office, will continue to emphasize implementation of
    action plans and related U.S.-Canadian initiatives for
    toxics monitoring and control programs for Niagara
    River.  (Ongoing)

0   GL States will complete and implement remedial action plans    (+)
    for areas of concern, updating plans as needed, and including
    development of plans and measures for addressing in-place
    pollutants and combined sewer overflows.  (Ongoing)

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                             -20-
0   Regions and GL States will  implement GL Monitoring  Strategy    (+)
    Strategy,  including the redesigned GL Atmospheric  Deposition
    network.  (Ongoing)

0   Regions, with GL State support,  will continue to undertake,
    in support of toxic chemical mass balance,  studies  to deter-
    mine the contribution of toxicants from poorly quantified
    sources, such as groundwater, landfills, and pesticides from
    agriculture, and undertake  mass  balance modeling efforts for
    Green Bay and/or Saginaw Bay.  (Ongoing)

0   EPA HQs, Regions, and Great Lakes States will support IJC Water
    Quality Board in developing U.S.-Canada priority ranking of
    toxicants in GLS having adverse  effects on  human health and
    ecosystem.  (Ongoing)

3-  Marine Discharge (§301(h))  Variances - Priority Activities

CWA §301(h) authorizes EPA to allow  publicly owned treatment
works (POTW) to discharge into  marine waters with less  than
secondary treatment, iE certain criteria are met.

0   Regions will review 301(h)  applications, issue decisions and
    permits expeditiously, and  assure that POTWs implement
    approved monitoring programs, including appropriate quality
    assurance planning.  (Ongoing)

0   EPA HQs will provide overview, guidance, contractor assist-
    ance, and national task force support to maintain national
    consistency for 301(h) decision  process and monitoring
    programs.   (Ongoing)

0   EPA HQs will assist Regions in managing and analyzing an
    increased volume of monitoring data.  (Ongoing)

4•  Ocean Disposal (§403(c)) Criteria Evals. -  Priority Activities

CWA §403(c) requires that EPA evaluate ocean discharge  permits on
the basis of Agency criteria developed for activities requiring
such permits, including marine  point source discharges  of munici-
palities and industries and oil and  gas operations on the outer
continental shelf.

0   Regions, with EPA HQs guidance and policy and technical        (+)
    assistance, will prepare Ocean Disposal Criteria Evaluations
    for oil and gas operations  on the outer continental shelf.
    (Ongoing)

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                             -21-
D.  CLEAN WATER ACT PROGRAMS

The Clean Water Act (CWA) provides a comprehensive structure for
water pollution control.  The Act provides for establishing
technology-based and where necessary, water quality-based controls
for point sources of pollution, establishment of water quality
standards, monitoring to assess water conditions and trends, and
water quality management (WQM) planning to analyze problems and
design needed control measures.  EPA and State agencies implement
a permit and enforcement program for municipal and industrial
dischargers.  In addition, the Clean Water program provides grants
to municipalities for construction of wastewater treatment
facilities and State program assistance.

1.  Cross-Program Management Initiatives

During FY 1987 the Agency will pursue two cross-program manage-
ment initiatives to more systematically address key environmental
concerns:  implementation of the National Municipal Policy (NMP)
and sewage sludge management.

a.  National Municipal Policy;  An Overview of Roles and
    Responsibilities

A top Agency CWA priority during FY 1987 is for EPA and the States
to move aggessively to achieve as much compliance as possible
by July 1, 1988, under the National Municipal Policy.  FY 1987 is
a year that presents some interesting challenges to the Federal/
State partnership in water programs.  First, FY 1987 is the time
when administering agencies will be following through to complete
filed cases and when municipalities may begin to miss the milestones
in their enforceable schedules.  As this happens, administering
agencies may face relatively large enforcement workloads.  This
calls for the EPA Regions and States to work side-by-side to
handle the workload cooperatively and efficiently, and to look for
better ways to approach jobs such as responding in a timely and
appropriate manners to compliance schedule violations.

Second, FY 1987 is the year in which administering agencies
accelerate their efforts to get minor POTWs on enforceable schedules,
with special attention on municipalities that receive Federal
grants and on unfunded POTWs that are contributing significantly
to water quality impairment.  In dealing with unfunded municipali-
ties, administering agencies need to exhibit great sensitivity to
their special problems and needs.  In working with these communi-
ties, for example, every effort should be made to provide them with
available technical information on financial capability assessment
and on alternative, less costly wastewater treatment technologies.
It is also important to develop reasonable, expeditious schedules,
even if that means court-approved orders to go beyond July 1, 1988.

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                             -22-


Meeting the Agency's FY 1987 NMP goals also calls for close
cooperation across key organizational units at Headquarters and
in the Regions, especially construction grants, permits and enforce-
ment.  The NPDES compliance and enforcement program has overall
responsibility for managing the NMP effort, including: assuring
that permits contain appropiate final effluent limits; issuing or
obtaining enforcement orders to require compliance; monitoring
whether POTWs meet the milestones in these orders; and escalating
enforcement actions as necessary.  EPA Headquarters is responsible
for contractor assistance and guidance for compliance support
activities, including financial capability analyses and other
technical and legal support for selected NMP cases (see page 30
for the specific activities).

The construction grants program has major responsibilities in
several areas.  It will continue to provide assistance to help
States and local governments pursue sound alternative funding
mechanisms.  The program will also work directly with affected
municipalities.  For POTWs that receive (or are expected to
receive) Federal funding, these activities include: precertifying
potential grantees in advance of actual grant awards to speed up
the process; ensuring that construction and compliance schedules
are reasonable, expeditious, and consistent; monitoring schedules
and taking program action where necessary; and reporting major
slippage beyond July 1, 1988, to the enforcement program.  Where
fully constructed POTWs are not operating in compliance with their   (
final effluent limits, the program will provide onsite compliance
assistance to selected small POTWs and will review grantee
project performance certifications, assisting as appropriate in
development of corrective action programs.

For unfunded municipalities, the construction grant program
responsibilities include: making technical information on financial
capability assessment and treatment technology available; and
reviewing Municipal Compliance Plans (MCPs) and making determinations
on the accuracy and reasonableness of the proposed solutions,
schedules, and financing mechanisms.  (see page 36 for specific
activities)

b.  Sewage Sludge Management

Section 405(d) of the Clean Water Act requires the Administrator
to publish regulations providing guidelines for the disposal of
sewage sludge and the utilization of sewage sludge for various
purposes.  Based on the statute, recommendations of the Sludge
Task Force which studied sludge management issues  from 1982 to
1984, and the "Policy on Municipal Sludge Management"  (49 FR
24358; June 12, 1984), EPA is developing additional technical
criteria governing sludge management activities, and requiring
States to develop programs, or improve existing ones, to assure
that wastewater treatment works, and others that generate or use
sewage sludge, follow the technical criteria.

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                             -23-
The Office of Municipal Pollution Conrol (OMPC) is developing the
State Sludge Management Program Regulations (40 CFR Part 501) and
the Office of Water Regulations and Standards (OWRS) is developing
the technical criteria governing sludge management practices (40
CFR Part 503).  These regulatory development activities are being
coordinated with related program activities in the Office of Marine
and Estuarine Protection (OMEP), the Office of Water Enforcement
and Permits (OWEP), and the Office of Air and Radiation. (OAR)

Activities of the Office of Solid Waste and Emergency Response
related to the implementation of the Hazardous and Solid Wastes
Act of 1984 may affect sludge management practices.  The revision
of the extraction procedure (EP) test, the "land disposal ban
rule", and application of the "permit by rule" and "corrective
action provisions" to wastewater treatment works are the most
significant activities.  The Office of Water is working closely
with the Office of Solid Waste and Emergency Response on these
and other issues.  The goal is to have sewage sludge regulated
under the CWA except for those cases in which sewage sludge is
co-disposed with solid wastes in landfills where regulations
under the Resource Conservation and Recovery Act would govern.

For the purpose of this discussion, sewage sludge means the
residuals from wastewater treatment works treating primarily
domestic sewage.  Not included are residuals from privately-owned
wastewater treatment works operated in conjunction with industrial
manufacturing and processing facilities.  Current estimates are
that about 7 million dry tons of sewage sludge are generated each
year by domestic sewage treatment works.  This figure is expected
to double by the year 2000 as more sewage treatment facilities are
upgraded and go into operation.


Sludge-Management - Priority Activities

0  EPA Headquarters (OMPC) intends to publish the final State
   Sludge Management Program Regulations (40 CFR Part 501)
   in FY 1987.  (Second Quarter)

0  EPA Headquarters (OWRS) plans to publish the final sludge
   technical regulations (40 CFR Part 503) in FY 1987.  (Fourth
   Quarter)

0  EPA (OWRS/OMPC/ORD) will conduct seminars to assist the
   Regions and States in the implementation of both the Part
   501 and Part 503 regulations. (Ongoing)

0  EPA Headquarters (OWRS/ORD) will begin evaluation of
   additional pollutants of concern which will be subjected to
   the risk assessment methodology and potential for regulation
   in FY 1988. (Ongoing)

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                             -24-
0  States should be developing an inventory of sludge use and
   disposal facilities.   The inventory should provide an
   estimate of the quantity/quality of sludge being handled at
   each facility, summarize the quantity/quality of sludge being
   handled by each of the major sludge use/disposal practices,
   and identify projects not in compliance with applicable
   regulations and what  actions are being taken to bring them
   into compliance.  States should develop the inventory whether
   or not the final State Sludge Management Program Regulations
   have been published.  (Ongoing)

0  States should be assessing their current sludge management
   programs and determining what, if any, improvements are
   necessary to comply with the State Sludge Management Program
   Regulations.  Regions should be prepared to assist the States
   in this effort. (Ongoing)

0  States and Regions should cooperate in developing a schedule
   for the orderly submission and approval of State programs to
   avoid overloads and delays.  It may be possible for some
   States to submit their programs to the Region within six
   months after the final State Sludge Management Program
   Regulations are published. (3rd Quarter)

0  Regions and States should ensure that existing and new
   construction grants projects are consistent with sound
   sludge management practices and applicable regulations (e.g.
   40 CFR part 257).  (Ongoing)

0  Headquarters will, in cooperation with Regions and the
   States, develop appropriate compliance and enforcement
   guidance to support the sludge management program.
   (4th Quarter)

0  Regions and States should assess sludge management activities
   in conjunction with National Pollution Discharge Elimination
   System (NPDES) pretreatment inspections to determine POTW
   compliance with applicable sludge disposal criteria.   (Ongoing)

2.  Water Quality Standards, Planning and Assessment

Clean Water Act programs directly implement the Agency goal to
maintain and improve water quality by addressing point and non-
point sources  (NPS) of pollution.  In the point source area, OWRS
will continue to support the application of technology-based
effluent guidelines and the development and incorporation of
toxic criteria into water quality standards.  In cases where
these technology based limitations are not adequate to achieve
water quality standards, we will continue to push  implementation
of post BAT controls using chemical-specific and biomonitoring
methods to develop water quality based permit limitations.

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                             -25-
Nonpoint source controls are needed to meet water quality goals
in many areas and comprise, along with point source controls, an
essential element of control strategies.  Water programs will
place greater emphasis on improving State NFS assessments, stren-
gthening State and local NFS management programs and accelerating
State and local implementation of site-specific NFS controls.
Although the NFS problem is documented, resources are limited
(106, 205{j), and the estuary program).  Therefore, EPA and the
States need to work with other programs and other agencies to
encourage their participation in the NFS effort.

In support of the Agency priority to focus on critical water
quality problems, water quality management (WQM) planning will
play an increasingly important role.  Priority waterbody lists
should be used by the Regions and States as a management tool to
direct resources to those areas with the highest water quality
improvement returns, to highlight coordination between programs
and to assure that necessary activities are properly sequenced.

a.  Water Quality Standards & Criteria - Priority Activities

Water quality standards (WQS) set the goals to be attained and
maintained based on designated uses of a waterbody.  If tech-
nology based controls are inadequate to protect designated uses
from the impacts of toxic and other pollutants, the standards are
the basis for determining: (l)the need for more stringent treat-
ment to control point sources; and/or (2) best management prac-
tices (BMPs) needed to control nonpoint sources.

In FY 1987, EPA will provide technical assistance to the States
and tribal governments on determining attainable WQS through
guidance documents and seminars, reviews of WQS, and assistance
in developing criteria for pollutants where toxicity data is
limited.  In 1987 EPA will accelerate development and issuance of
water quality criteria and advisories for aquatic life and human
health to help Regions and States determine appropriate pro-
tection levels for toxic and other pollutants.

*  Regions will assist States to incorporate water quality cri-
   teria and/or narrative standards for toxic pollutants into
   State WQS, including free-from implementation procedures.
   (Ongoing)

0  EPA Headquarters, with support from the Regions, will promul-
   gate water quality standards in States that don't comply with
   EPA regulations.  (Ongoing)

0  Regions will provide technical assistance to States for
   identifying waters where toxic and other pollutants may be
   adversely affecting water quality, or precluding the attain-
   ment of a designated use.  (Ongoing)

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                             -26-


0  EPA Headquarters will develop freshwater aquatic toxicity and
   human health criteria and advisories; develop marine and
   estuarine criteria and advisories.  (Ongoing)

*  Regions will work with the States to ensure that antidegra-
   dation methods are implemented according to EPA policies.         (+
   (Ongoing)

b. Monitoring & Wastelpad Allocations (WLA) - Priority Activities

Data generated from monitoring efforts are used to support water
pollution control and program planning decisions at several
levels, including issuance of the third round of NPDES permits.
In FY 1987 activities will continue to focus on the identification
of waters where uses are not fully attained and where controls
for toxics are needed using either pollutant-specific or bio-
monitoring techniques.  Emphasis will be on controlling toxic
pollutants.

In FY 1987 States will continue to implement the water monitoring
strategy, the Guidance for State Monitoring and WLA Programs,
and use environmental indicators and procedures to measure water
quality trends.  EPA will assess the extent and severity of per-
sistent bioaccumulative pollutants and sediment contamination.
Where appropriate, States should develop Data Quality Objectives
(DQO) for their monitoring activities and include these in work/
project quality assurance plans.

ORD will continue to support monitoring and WLA activities by
evaluating aquatic ecoregions as one approach for estimating the
ecological potentials of attainable uses.  For site specific
controls, ORD will assess ways to couple the single chemical
approach with the toxicity reduction approach based on bio-
monitoring techniques.  ORD will also conduct research to deter-
mine the effects of pollution on infectious diseases transmitted
through shellfish to humans.

0  States will conduct activities necessary for water quality
   assessments to support preparation and submittal of FY 1988
   305(b) reports.  (Ongoing)

*  States will identify all waters needing water quality based
   controls for toxics and non-toxics and report this information   ( + )
   to EPA in 305(b) reports, FY 1987 WQM work programs, or FY 87
   205(j) assessment updates.  (Ongoing)

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                             -27-


*  States will develop needed water quality based controls (i.e.,
   TMDLs/WLAs/LAs)  for toxics and non-toxics and submit them to     (-)
   EPA for review and approval.  Target is 20% or more of waters
   known to need controls as of beginning of FY 1987.

*  Regions will ensure that States have approved technical pro-
   cedures for conducting and approving TMDLs/WLAs, and will        (+)
   track the number of waters with approved WLAs/TMDLs for toxics.
   (Ongoing)

0  Regions will review State work programs (including monitoring
   checklists) to ensure conformance with EPA guidance and will     ( + )
   conduct audits to assess States accomplishments. (Ongoing)

0  EPA Headquarters will provide guidance, technical assistance,
   and workshops on monitoring and WLA program activities and
   will continue to provide data system support.  (Ongoing)

*  Regions will ensure that States have developed agreed upon
   environmental indicators and procedures to measure water         ( + )
   quality trends.  (Ongoing)

0  Regions will complete field sampling for the bioaccumulative
   study and initiate pilot scale sampling for the sediment         (-)
   study.  (Second Quarter)

c.  Water Quality Management (WQM) Planning/Priority Waterbodies-
    Priority Activities

State WQM plans provide the basis for setting priorities, analy-
zing problems, considering alternatives, and making WQM de-
cisions.  Using data from 305(b) reports, WQM plans and moni-
toring activities,  States will assure that their priority water-
body lists reflect their most critical and solvable water quality
problems or preservation areas and will use the lists as a basis
for determining priorities for WQM grant funds.

States should update WQM plans to reflect changing water quality
conditions, to incorporate signficant new water quality efforts
or products and to fulfill NPDES permit and construction grant
consistency review requirements.

*  States will update their priority waterbody lists as necessary
   and will use them as part of their management approach to
   achieve environmental results.  (Second Quarter)

0  States will update and use WQM plans to establish priorities,
   direct activities to achieve water quality goals, conduct
   consistency reviews, and make pollution control decisions.
   (Ongoing)

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                             -28-


d.  Nonpoint Source (NFS) Management - Priority Activities

EPA will continue to implement the EPA NFS Strategy (Feb.'85)  by
providing national leadership among Federal agencies and over-
sight and guidance to State/local NPS programs; by ensuring that
other Federal agencies support both their national strategies  and
State and local NPS objectives through their technical expertise,
existing delivery systems, financial resources and land manage-
ment authorities; by collaborating with other EPA program offices
(e.g. estuaries, ground-water, and pesticides) on such items as
guidance/requirements for agricultural chemicals management
practices); and by providing technical assistance and support  to
State and local NPS managers and, where appropriate, to Indian
leaders.  Estuary programs will continue to provide the major
source of BMP demonstrations and institutional approaches to NPS.

*  Regions will support and assist States and local agencies in
   identifying and establishing priority for NPS problems, in
   developing comprehensive NPS management programs and in imple-
   menting NPS controls within specific priority waterbodies.
   (Ongoing)

0  EPA Headquarters will provide national leadership/oversight
   for FY 1987 Regional, State and local NPS activities; stren-
   gthen the support of other Federal agencies (e.g. Departments
   of Agriculture and Interior) for State and local NPS objec-         (
   tives; collaborate with other EPA offices (particularly the       (+)
   estuary and ground-water programs) on NPS issues of mutual
   concern; provide technical assistance and technology trans-
   fer to EPA Regions, States and local agencies in such areas as
   data evaluation and analysis, targetting of priority water-
   bodies, and design/start-up/evaluation of specific control
   systems; and inititate development of a national clearing-
   house/reference center for information about state-of-the-art
   NPS assessment, control and management techniques and
   approaches.  (Ongoing)

3.  Water Permits and Enforcement

A top FY 1987 CWA priority is for Regions and NPDES States
("administering agencies") to continue aggressive NPDES
municipal enforcement to achieve as much compliance as possible
by the July 1, 1988, deadline consistent with the tenets of the
National Muncipal Policy.  In addition, EPA will focus on            (-)
toxics control through full implementation and enforcement of
pretreatraent requirements and reissuance of NPDES major and
significant minor permits, with emphasis on establishing and en-
forcing water quality-based permit requirements for toxics, as
well as best available technology (BAT) requirements.

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                             -29-
a.  Permits - Priority Activities

The Agency's goal in the third round of NPDES permitting is to
eliminate toxicity in receiving waters that results from point
source discharges.  Both industrial and POTW dischargers will be
required to routinely screen all effluents suspected of being
toxic, using chemical or biological testing techniques to determine
the extent and cause of any toxicity that may have adverse effects   (-)
on the receiving water quality.  In accordance with the results
of such analyses/ administering agencies will establish permit
limits consistent with the Policy for Development of Water Quality-
based Permit Limitations for Toxic Pollutants, national BAT/BCT
effluent guidelines, and best professional judgment, where appro-
priate.  In appropriate cases, current permits will also be
reopened to include limits for toxics.

In addition, each Region and State with a backlog of expired
minor permits will follow its strategy (developed in FY 1986 in
accordance with the National Minor Permit Issuance Strategy) for     (-)
reducing/eliminating that backlog.  EPA headquarters and Regions
will continue to implement the Permit Quality Review program to
assure the basic integrity of the NPDES permit program. (See
State Overview section)

Consistent with the national goal of eliminating toxicity from
point source discharges, the NPDES permit program will aggressively
implement new State water quality standards and wasteload alloca-
tions for toxic pollutants, will assure proper protection of
surface water quality in any CERCLA action involving a discharge     (+)
to surface waters or POTWs, and will impose best management
practices (BMP) requirements in permits for toxics dischargers
as necessary and appropriate.  In addition, the national
anti-degradation policy will be implemented in all States.

*  EPA (OWEP) will prepare a National Third Round Permit Policy
   to address water-quality based permits for toxics.                ( + )
   (First Quarter)

*  Regions/States will issue major permits to incorporate toxics
   controls, acting promptly in the last 6 months of an expiring     (-)
   permit term to avoid a recurrent backlog. (Ongoing)

*  Regions/States will complete reopeners scheduled for FY 1987,
   and will modify other major permits as needed to impose neces-
   sary and appropriate toxic controls.  (Ongoing)

0  EPA will provide technical assistance to implement effluent
   guidelines and develop water quality-based permit limits/moni-
   toring requirements (including whole effluent biomonitoring).
   (Ongoing)

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                             -30-


*  Regions/States will reissue/modify municipal permits to address
   any effluent toxicity and incorporate:  approved/modified
   pretreatment programs and related requirements for reporting;      (-)
   removal credits, where appropriate; monitoring for toxics;
   determinations under the secondary treatment regulation; and
   final §301(h) decisions. (Ongoing)

*  Regions/States will issue general/individual permits to minor
   dischargers consistent with State strategies developed in FY      (-)
   1986.  (Ongoing)

0  Regions/States will resolve outstanding variance and eviden-
   tiary hearing requests to assure enforceability of NPDES
   requirements.  (Ongoing)

0  Regions/States will identify CWA requirements associated with     ( + )
   Superfund site cleanup.  (Ongoing)

b.  Enforcement - Priority Activities

The FY 1987 goals under the NMP are to complete filed enforcement
cases against major POTWs, to track and respond to POTW noncom-
pliance with milestones in enforceable schedules, and to accel-
erate issuance of enforceable schedules to affected minor POTWs.
Administering agencies will take enforcement actions against
major POTWs based on the Enforcement Management System (EMS) and     (-){
the FY 1987 National Guidance for Oversight of NPDES Programs.
Where noncompliance with existing administrative orders
(AOs) involves major slippage beyond July I, 1988, the presumption
is that judicial orders will be required;  if there is a
significant workload, administering agencies should rank
potential cases based on past violations,  water quality and
public health impact, and grant funding.

To support the Agency's CWA priorities on toxics control, adminis-
tering agencies will direct industrial enforcement efforts to
tracking schedules and enforcing BAT requirements for toxics and     (-)
water quality-based permit requirements.  Regions and NPDES
States will use compliance monitoring and assessment activities
to support this emphasis on toxics control, and will conduct
toxics inspections.

To improve protection of waters and aquatic resources from chemical
and physical destruction, Regions and States will increase enforce-
ment against unpermitted discharges of solid waste to waters,        (+)
including wetlands.

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                             -31-


In FY 1987, all Regions will use PCS directly as the national
data base for the NPDES program, and all NPDES States should
either use PCS directly or effectively maintain existing inter-
faces; States seeking NPDES authority should become direct users
of PCS at the time of program approval.  Finally, Regions and
NPDES States will fully implement the EMS, the Oversight guidance,
the Compliance Inspection Strategy, and the PCS Policy Statement.

*  EPA/States will complete filed cases, monitor POTW compliance
   with NMP milestones in AOs/consent decrees/permits, and will
   initiate/escalate enforcement actions as necessary based on the   (-)
   priorities in the NMP and consistent with procedures in EMS/
   Exceptions List/Oversight Guidance.  (Ongoing)

*  Regions/States will place priority on industrial compliance/
   enforcement activities related to BAT/water quality-based         ( + )
   requirements for toxics.  (Ongoing)

0  Regions will ensure that EPA municipal/industrial referrals/
   consent decrees contain appropriate components/civil penalties
   consistent with the CWA penalty policy.  Where dischargers        (-)
   violate consent decrees, Regions will respond with stipulated
   penalties, contempt proceedings, decree modifications, and/or
   additional compliance monitoring requirements.  (Ongoing)

0  EPA (OWEP/OECM/Regions) will identify program priority areas
   for criminal cases (false reporting/fraud/significant unper-      (-)
   mitted discharges/willful injury to public health and environ-
   ment) , and will provide technical support for such criminal
   investigations and prosecutions.  (Ongoing)

0  Regions/States will implement the new Federal Facility Compli-    (-)
   ance Strategy.  (Ongoing)

0  Regions/States will use PCS as the national data base for all     (-)
   major NPDES permittees, and will maintain a greater than 95%
   accuracy rate.  (Ongoing)

Pretreatment - Priority Activities

The goal of the pretreatment program is to assure removal of
toxicity from POTW effluents and to protect against interference
with POTW operations.  In FY 1987, the program will focus on
assuring that treatment is in place in accordance with currently
enforceable industrial user (IU) requirements and that additional    (-)
local limits are developed to address toxic pollutants (§307(a)
and others) that are not adequately regulated under existing
Federal,  State and local law.  Regions and approved States will

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                             -32-


oversee control authorities (States or municipalities) through
audits, inspections, and review of annual reports.  The Regions and
States will negotiate the appropriate mix of activities based on
resource levels and the stage of implementation in FY 1987,
giving highest priority to activities associated with the Agency's
priority list.

Administering agencies will complete enforcement cases against
any POTWs with unapproved local programs.  Enforcement actions
will be initiated against POTWs that fail to implement approved
programs.  Assistance and advice will be provided to POTWs exper-
iencing difficulty in the early stages of local pretreatment
program implementation.  Control authorities will have primary       (+)
responsibility for enforcement against noncomplying lUs.  Adminis-
tering agencies will initiate IU enforcement actions where neces-
sary, generally in conjunction with enforcement against the
responsible POTW that is failing to enforce or as part of an
overall strategy to bolster a local program.

*  Regions/States will assure that required IU treatment is in
   place by overseeing implementation of local programs through
   review of annual reports, audits/inspections, ensuring public     (-)
   notice of violations, and where appropriate enforcing against
   lUs.  EPA, in cooperation with the States, will audit all
   approved programs over a 5-year period.  (Ongoing)

*  Regions/States will establish POTW effluent limits and related
   requirements needed for control authorities to develop local      (+)
   limits for toxic pollutants of concern, and will assure that
   local limits to prevent pass through and interference are
   established where needed.  (Ongoing)

0  EPA (OWEP) will promulgate revised General Pretreatment Regula-
   tions, and, in accordance with Pretreatment Implementation
   Review Task Force (PIRT) recommendations, will issue
   additional guidance on interference (with ORD), local             (-)
   limits development, and responsibilities of POTWs not required
   to have local programs and of Regions/States acting as control
   authorities.  (Ongoing)

0  EPA (OWEP) will provide technical/contractor assistance to
   control authorities for program implementation focused on         (-)
   development of local limits/control mechanisms. (Ongoing)

*  Regions/States will assure compliance with schedules in permits
   and enforcement actions; new enforcement actions will focus on    ( + )
   POTWs that fail to  implement approved local programs/IU viola-
   tions, as appropriate.  (Ongoing)

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                             -33-


*  Regions/States that act as control authorities will implement/
   enforce the pretreatment program consistent with national         ( + )
   guidance. (Ongoing)

0  Regions/States will establish an inventory of IDs where there
   is no local program, will establish control mechanisms, and       ( + )
   will enforce where necessary.  (Ongoing)

d.  State Program Approval, Review and Oversight-Priority Activities

Effective implementation of the CWA is predicated on a strong
Federal/State partnership in carrying out NPDES and pretreatment
program activities.  In FY 1987, the goal is to further strengthen
program integrity by ensuring that all NPDES States meet their       (-)
statutory obligation to administer the pretreatment and Federal
facility programs.  Regions will also continue to work with other
States to promote full NPDES program approval, and will help
NPDES States obtain general permit authority.

Regions, with Headquarters assistance, will continue to review
State programs to determine whether current State laws and regu-
lations provide adequate authority to administer and enforce the     (-)
current national NPDES/pretreatment programs.  Regions will work
with the States to make any necessary changes.

Regions will negotiate FY 1987 NPDES agreements with their States,
and will continue to oversee State program operations consistent
with the Oversight Guidance and applicable NPDES regulations.
Regions will assure that States implement the national anti-degra-
dation policy, meet national program output objectives, and
provide adequate resources and staffing to implement the national    (-)
program.  Regions will encourage State agencies to involve the
State Attorneys General (SAGs) in the process, where appropriate,
and to establish effective lines of communication to ensure the
SAG's general support for EPA's national enforcement priorities.

As a separate but related activity, EPA may support one FY 1987
model project involving an Indian tribe working towards future       {-)
assumption of NPDES permit and enforcement responsibilities.  In
the meantime, the Regions will continue to issue the NPDES permits
for facilities on Indian lands, as appropriate.

*  Regions will approve remaining State pretreatment/Federal
   facility programs, will condition FY 1987 grants as necessary,    (-)
   and may begin program withdrawal if States fail to seek full
   program authority.  (Ongoing)

0  Regions will work with non-NPDES States to take full program
   authority and with NPDES States seeking general permit author-
   ity, and will provide assistance as appropriate. (Ongoing)

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                             -34-
0  Based on State self-evaluations,  Regions  will  review State
   NPDES programs consistent with national guidance,  and will        (-)
   assist States in making necessary changes such as  revisions to
   State laws,  regulations, program  descriptions, or  MOAs.
   (Ongoing)

0  Regions will negotiate grants/oversee State NPDES/pretreatment
   programs based on FY 1987 National Guidance for Oversight of
   NPDES Programs and applicable NPDES regulations, with special     (-)
   attention to overseeing the six State-run local pretreatment
   programs.   (Ongoing)

0  Regions will conduct State PQRs of industrial/municipal  permits,
   including pretreatment requirements,  will provide  constructive
   feedback on  permit program quality and will work to ensure        (-)
   that any needed corrective action is  initiated.  (Ongoing)

*  EPA will work with States to ensure State water quality  standards
   for toxics are in place for the third round of NPDES permits.     (+)
   (Ongoing)

e.  RCRA Activities for NPDES Facilities-Priority Activities

In FY 1987, Regional and State water programs will assist in
implementing RCRA requirements that  apply to the  NPDES program.      (+)  |
The three primary activities are:

     Implementing RCRA corrective action requirements at POTWs
     receiving  hazardous waste by truck, rail, or dedicated pipe     ( + )
     (for all releases of hazardous  waste or constituents from
     any of the POTW1s solid waste management units);

     Acting on  industry requests for exemption from double  liner
     requirements for new or expanded landfills/surface impound-     ( + )
     ments; and

  -  Implementing recommendations arising from the domestic
     sewage exemption study by assuring  that local limits to
     control both CWA priority toxic pollutants and hazardous        ( + )
     waste are  established and implemented  under  the  pretreatment
     program (See "Pretreatment").

The extent to which Regional and State water programs will  assist    (+)
in the first two of these activities will depend  on FY 1987 RCRA
resources and assignments of responsibility.

In carrying out the RCRA corrective action  requirements, the
Regions and States may be involved in one or more of  the following
activities: issuing RCRA §3007 letters (the  RCRA counterpart to

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                             -35-


CWA §308 information requests); determining whether affected POTWs   (+)
are "in compliance" with NPDES permits for purposes of meeting the
RCRA permit-by-rule; determining compliance with other RCRA
permit-by-rule requirements; conducting site inspections; and
establishing corrective action requirements.  Regional NPDES/RCRA
programs will work with the States to coordinate implementation
of the corrective action requirements with NPDES permit issuance
wherever possible.

With respect to requests for exemptions from the RCRA require-
ments for double liners, the Regions (with State assistance)         (+)
may be engaged in one or more of the following activities:
reviewing applications requesting exemptions from the RCRA require-
ment for double liner; determining whether a facility uses aggres-
sive biological treatment; and making recommendations for approval   (+)
and denial based on RCRA §3005(j)(3) criteria.

0  EPA (OWEP) will promulgate necessary regulatory changes, and
   will issue guidance to help implement RCRA corrective action      ( + )
   requirements. (Second Quarter).

0  EPA (OWEP) will promulgate needed amendments to the General
   Pretreatment Regulations to cover results of the domestic         {+)
   sewage exemption study, and will develop implementing guidance.
   (Fourth Quarter)

0  EPA will  issue guidance on NPDES/RCRA inspections and on          (+)
   issuing RCRA §3008 orders for POTWs not in compliance with
   NPDES-related RCRA responsibilities.  (Unknown)

0  Regions (with States) will gather information needed to identi-
   fy POTWs subject to the RCRA permit-by-rule, will review          (+)
   notifications from POTWs, and will establish corrective action
   requirements for the highest priority POTWs.  (Ongoing)

0  Regions (with States) will review applications for exemptions     (+)
   from RCRA double liner requirements, and will recommend
   approval/denial.  (Ongoing)

0  Regions/NPDES States will inspect POTWs covered by RCRA and
   will issue RCRA §3008 orders (or State equivalent actions) or     (+)
   bring court action for POTW noncompliance. (Ongoing)

4.  Construction Grants Program

The construction grants program provides grants to municipal
agencies to assist in financing the construction of cost effective
and environmentally sound municipal wastewater treatment facil-
ities to meet the water quality and public health goals of the
Clean Water Act.  States also receive funds under section 205(g)
to assist in carrying out program implementation responsibilities.

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                             -36-


Since Title II of the Clean Water Act is scheduled for reauthor-
ization in FY 1986, a key objective in FY 1987 of Headquarters and
Regional Offices is to ensure timely implementation of any amend-
ments.  Reauthorization will require significant revisions to
the guidance for this program.  Additionally, if reauthorization
provides for direct program activity with Indian Tribal Governments,
Headquarters will then develop timely procedures for implementing this
program.

Regions will work closely with States to amend delegation agree-
ments, promote the understanding of and assure the capability to
carry out any new activities, and address future issues.

In FY 1987, the construction grants program will focus on six key
objectives:

    a) manage the transition to State and local self-sufficiency
         to ensure compliance with the CWA;
    b) ensure effective State/Regional management;
    c) ensure effective construction and program integrity;
    d) expeditiously complete and closeout projects;
    e) improve program management; and
    f) improve the performance of treatment facilities.

a.  Transition to State and Local Self-Sufficiency -
    Priority Activities

The construction grants program will continue to provide
assistance to help States and local governments pursue sound
alternative funding mechanisms for construction of wastewater
treatment facilities, including State-financed revolving funds.
To promote self-sustaining operation and maintenance, and to
protect the substantial Federal investment in municipal waste-
water treatment, Regions and States will continue to ensure
that current and prior grant recipients have advanced the
resources within their financial capability to meet the
required local share and to provide for long-term operation,
maintenance, and replacement of the POTW following initial
construction.

The Construction Grants program will continue its implementa-
tion of the NMP in cooperation with the permit and enforcement
program.  Emphasis will be placed on the improved management of       (-)
project schedules with particular focus on bringing projects
affected by the policy expeditiously through to completion of
construction.

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                             -37-
0  HQ and the Regions will develop regulations/guidance to imple-    (+)
   ment the 1986 Clean Water Act reauthorization, if enacted.
   (Ongoing)

0  Regions and States will review grant applications to determine
   whether proposed facilities are consistent with the Financial
   Management Capability Policy.  (Ongoing)

*  Regions and States will ensure effective coordination between
   construction schedules and compliance schedules, and will im-
   plement effective strategies for developing and managing pro-     (+)
   ject schedules for all municipal treatment works to ensure
   consistency and coordination with the National Municipal Policy.

*  Regions and States will coordinate with the enforcement pro-
   gram in working with municipalities that are required to
   develop Municipal Compliance Plans (MCP's) under the National
   Municipal Policy.   (Ongoing)

b. Effective State/Regional Management - Priority Activities

EPA will continue to work with States to ensure full and effective
delegation of construction grants management, and to refine over-
sight systems and approaches consistent with the Policy on
Performance-Based Assistance.

0  Regions and States will implement the Agency policy on delegation
   and overview, and the applicable regulations of 40 CFR Part 35,
   Subparts A and J, including the negotiation of an annual work
   program, overview plan, annual on-site performance evaluation,
   and a performance-based program grant.  (Ongoing)

0  Headquarters will evaluate Regional management of delegation to
   ensure consistency with National Policy.  (Ongoing)               ( + )

0  Regions will oversee the Corps of Engineers Interagency Agree-
   ment to see that workplans address priority needs and that
   workplan commitments are achieved.  The Corps will emphasize
   training of selected States to maintain delegation of con-
   struction management.  (Ongoing)

c. Effective Construction/Program Integrity - Priority Activities

In FY 1987, a high national priority will be the timely comple-
tion of quality construction projects that are within budget.
Continued emphasis will be placed on the improved management of
project schedules to bring projects expeditiously through            (-)
construction, the initiation of operations, and project perform-
ance certificattion.  EPA will continue to place emphasis on
assisting States in refining priority funding systems and lists

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                             -38-
consistent with water quality, public health, and NMP objectives.
Improved priority funding systems will result in a better targeting
of grant resources.  EPA will also continue to improve its capabil-
ity to document and predict water quality improvements resulting
from the Construction Grants Program.  Headquarters will provide
computerized tools and systems for Regional/State use in document-
ing water quality improvements associated with construction grant
funding.

In FY 1987, EPA will continue to work with States and munici-
palities to help develop and implement self-financing techniques.
In addition, EPA will continue technology transfer to improve
technical and financial management of treatment projects.            (+
Substantial attention is being directed by the Construction
Grants and ORD programs to provide information to the States
and the grantee community to assure that municipalities benefit
from the experience gained in dealing with various technologies
and project management systems.

0  Regions and States will conduct and evaluate Construction Man-
   agement Evaluations (CME's) and Project Management Conferences
   (PMCs) to assure that grantees have adequate management capabi-   (-]
   lity to construct and operate projects, and improve pre-award,
   preconstruction and on-site construction management.  (Ongoing)

0  Regions and States should place particular emphasis on ensuring
   that previously phased/segmented projects proposed for 75 per-    (-)
   cent funding are carefully scrutinzed to assure that the
   "grandfathering" provisions of Title II and 40 CFR Part 35 are
   properly carried out.  (Ongoing)

0  Regions and States will manage the preconstruction phase to ensure
   that construction initiation dates are met.  (Ongoing)            (-)

0  Headquarters and Regions will implement improved management
   procedures based on the findings of FY 1986 Internal Control
   Reviews.  (Ongoing)

0  Regions and States will manage the I/A Technology, Rural Grants,
   and the Value Engineering  (VE) programs.  (Ongoing)

0  Headquarters and Regions will continue to implement positive
   management initiatives to prevent waste, fraud and mismanagement  (+)
   including a cooperative effort with the OIG on the assessment
   of grant project bid-rigging. (Ongoing)

*  Regions will work with States to  implement needed revisions to
   State priority systems and lists, to maintain water quality and   (+)
   public health emphasis, and to maximize municipal compliance.
   (Ongoing)

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                             -39-


0  Headquarters will evaluate the use of the Reserve Capacity
   Guidance to ensure that the present capacity limitations in       (+)
   the CWA are implemented. (Ongoing)

0  Headquarters will develop and disseminate information on inno-
   vative, alternative, and conventional wastewater treatment
   technologies which have been determined to be cost effective
   as well as those which have had operational difficulties.
   Regions and States will ensure the dissemination of this
   information to municipalities that need to construct wastewater
   treatment facilities in compliance with the CWA.  (Ongoing)

0  HQ and Regions will work with States to help establish and im-
   plement methods for evaluating environmental results of the       (+)
   Construction Grants Program.  (Ongoing)

0  EPA Headquarters will evaluate AT projects with incremental
   cost over $3 million to ensure significant water quality improve-
   ment, and will oversee Regional and State AT project reviews
   conducted under the AT Review Policy to determine (a) which
   Regions qualify for AT Review responsibility involving projects   (-)
   with incremental AT costs greater than $3.0 million, and (b)
   whether the Regions which are already assuming such responsi-
   bility, comply with the Policy.  (Ongoing)

*  EPA Headquarters will complete a municipal lagoon study to de-
   termine the impact of existing lagoons on ground water quality,
   leading to a report to Congress in November 1987,

d.  Completed Projects - Priority Activities

Continued emphasis will be placed on the elimination of current
backlogs and the prevention of new backlogs.  Regions and States
will continue to place a high priority on resolving issues which
are causing delays on projects.

0  Regions and States will manage grants efficiently to ensure
   that preconstruction lags or completion backlogs do not occur,
   that projects are completed and closed-out in a timely manner,
   and that the level of unnecessary unliquidated balances contin-
   ues to be reduced.  (Quarterly)

0  Regions and States should continue to implement the Claims
   Management Guidance.  (Ongoing)

*  Regions and States will ensure that projects awarded before
   12-29-81 are administratively complete within 12 months of
   physical completion, and that grants awarded after 12-29-81
   are administratively completed within 18 months of initiation     ( + )
   of operations.  In addition, all Step 1 and Step 2 grants
   should be administratively complete by the end of FY 1987.
   (Ongoing)

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                             -40-
0  Regions/States will continue to work with the Agency1s
   Office of Inspector General to ensure timely, high quality audit
   resolution.  (Ongoing)

0  EPA Headquarters will maintain the clearinghouse for grant
   dispute decisions to facilitate timely and consistent
   decisions.  (Ongoing)

0  Regions will implement procedures to achieve the time-based
   goals for resolving disputes.

e. Program Management - Priority Activities

EPA HQ will continue to work with Regions and States to improve
program management, accelerate municipal compliance to meet NMP
goals, and document environmental results.  In addition, improved    (+)
use of the State Project Priority lists, the Needs Survey file,
the Grants Information and Control System (GIGS), and office auto-
mation to satisfy program management needs will continue to be a
high priority.

0  Regions and States will manage outlays and obligations within
   prescribed variances to meet national budget commitments.         (-)
   (Monthly for outlays; quarterly for obligations)

0  Regions will continue working with States to improve the use
   of GIGS for program management.  EPA Headquarters will continue   (+)
   the implementation of the GICS modernization initiative and
   continue to improve the Database System linkages between the
   GICS, PCS, and needs files.  (Ongoing)

0  Regions will work with Headquarters on development of revised
   and new program regulations, policies, and guidance. (Ongoing)    (+)

f. Performance of Facilities - Priority Activities

The Construction Grants program will coordinate with the enforce-
ment program  in implementation of the NMP.  In support of the
Policy, the Construction Grants program will emphasize Region and
State on-site compliance assistance to small POTW1s, project per-
formance certifification and remedial compliance programs for
grant-funded  facilities; work with municipalities that are re-
quired to develop Municipal Compliance Plans (MCP's), and ensure
coordination  between the Region and State O&M, operator train-
ing, construction grants and permit/compliance programs.

0  Regions and States will ensure effective implementation of the
   project performance certification requirements,  including time-
   ly preparation of a Corrective Action Report (CAR) where a
   positive certification is not possible.  (Ongoing)

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                             -41-
*  Regions will continue the Operations Management Evaluation
   (OME)  Program at minor POTWs to assist selected communities and
   operators in maintaining effective operations and maintenance
   management programs in compliance with permits.  (Ongoing)

0  Headquarters and Regions will continue implementation of the
   O&M Excellence Awards program at Regional and national levels
   recognizing municipal wastewater treatment accomplishments.
   (Ongoing)

0  Regions and States will continue to encourage the training of
   municipal treatment plant operators. (Ongoing)


E. LIST OF SUPPLEMENTAL GUIDANCE TO BE ISSUED
   DURING FY 1986-87 FOR OPERATING YEAR FY 1987
 - Guidance for PWS Compliance Reporting

   The guidance will describe how chemical and
   radiological MCLs will fit into the definition
   of significant non-compliance and provide the forms
   for reporting in FY 1987.  (June, 1986)

 - Guidance for UIC Compliance Reporting

   The guidance will explain  how Regions and States
   will report UIC Compliance using the new definition
   of significant non-compliance. (May, 1986)

 - Guidance for FY 1987 State Ground-water Program
   Grants

   The guidance will provide  direction to the Regions
   and States in the development and administration
   of consolidated ground-water work programs for
   FY 1987. (March, 1986)

 - Guidance for State 305(b)  Reports

   The guidance will assist States in developing
   their FY 1988 305(b) reports by providing guidelines
   on methodologies, format and scope. (May, 1987)
 - Guidance for Oversight of the NPDES Program

   The guidance will expand on the FY 1987 Agency
   Operating Guidance relating to oversight of the
   NPDES program.   Detailed direction relating to
   Permits, Enforcement and Pretreatment programs
   will provided in the guidance. (April, 1986)

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Office of
Solid Waste
and Emergency Response

-------
OSWER TABLE OF CONTENTS
                                                       Page

I.    Introduction 	  1

II.  Superfund Operating Guidance

     0 Program priorities	  4

     0 Guidance 	  6

     0 Goal I - Achieve environmental results 	  6

       A) Stabilize actual or potential threats 	  6

       1. Response to threats by releases and spills
       2. Address reportable quantities, release notification
       3. Address oil discharges

       B) Reduce or eliminate risks from uncontrolled
          hazardous waste sites 	 9

       1. Ensure that all phases of the "pipeline" are being
          initiated and are moving towards completion
       2. Continue to operate a strong pre-remedial program
       3. Obtain RP cleanup through settlements

     0 Goal II - Ensure a strong enforcement presence.... 10

       1. Section 106 referrals
       2. Administrative Orders
       3. Incentives for settlements
       4. Section 107 referrals
       5. Federal/state enforcement actions
       6. Oversight of PRP, federal facilities and state
          actions

     0 Goal III - Continue to decentralize and delegate
       authority	  14

       1. Deletion
       2. Remedial Delegations
       3. Enforcement Delegations

     0 Goal IV - Improve scientific expertise	  15

       1. Expand capabilities of the ERT
       2. Implement better systems for technology transfer
       3. Analytical support

     0 Goal V - Improve technical communications with
       the public	  17

       1. Chemical Emergency Preparedness Program
       2. Improve effectiveness of community relations efforts

     0 Appendix/Supplemental Guidance	  20

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III.  RCRA Operating Guidance                             Page

      0 Program priorities	     21

      • Operating themes	     23

      0 Guidance	     25

      0 Goal I - Address previously neglected problems
                 and restore environmental quality to
                 acceptable levels 	     25

        A) Strengthen the permitting and enforce-
           ment process to improve the timeliness
           and quality of actions	     25

        1. Integrate permitting, enforcement and
           corrective actions at hazardous waste
           management facilities

        2. Coordinate RCRA/CERCLA permitting and
           enforcement

        3. Continue to foster an effective working
           relationship with States while maintaining
           necessary oversight of national priorities

        B) Implement RCRA authorities at hazardous
           waste management facilities to protect human
           health and the environment	   28

        1. Implement the corrective action program through
           the use of permitting and enforcement authority

        2. Require proper closure of facilities to ensure
           protection of human health and the environment

        3. Ensure compliance with interim status and final
           permit groundwater monitoring requirements

        4. Resolve technical, scientific and regulatory
           issues associated with "how clean is clean"

        5. Expedite review and decision-making for Part B
           permit applications

        6. Improve compliance at Federal Facilities

        7. Provide technical support to the criminal
           enforcement program

        8. Promote innovative compliance monitoring and
           enforcement of the small quantity generator
           regulation

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     0 Goal II - Control the use of existing commercial
                 chemicals and pesticides that pose an
                 unreasonable risk to health and the
                 environment		  32

       1. Shared basic research
       2. Pesticide disposal
       3. Listing decisions
       4. Land disposal ban
     0  Goal III - Anticipate and prevent future environ-
                  mental problems and maintain high levels
                  of environmental quality	   33

       1. Fix existing regulatory framework where appropriate
       2."New initiatives
       3. Increase public education/outreach efforts
     0 Appendix/Supplemental Guidance	  39

       Summary of the FY 1987 RCRA Implementation
       Plan (RIP)	  40
IV.   UST Operating Guidance

     0  Program priorities	     41

     0  Guidance	     42

     0  Appendix/Supplemental  Guidance	     44

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           OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE
INTRODUCTION

The Office of Solid Waste and Emergency Response Operating
Year Guidance for FY 1987 presents the national strategies,
goals and objectives for implementation of the hazardous waste
programs.  This guidance reflects requirements of the Resource
Conservation and Recovery Act (RCRA), as amended by the
Hazardous and Solid Waste Amendments of 1984, and the Compre-
hensive Environmental Response, Compensation, and Liability
Act (CERCLA) of 1980.  It is anticipated that CERCLA will be
reauthorized sometime during FY 1986.  It is likely that
CERCLA strategies and goals will need to be refined once
CERCLA is reauthorized.

As in FY 1986, one of the Agency's major goals for FY 1987
is to reduce risks from disposal of hazardous waste and
stabilize imminent threats from uncontrolled hazardous
waste sites.  There are three principal themes of our
FY 1987 Operating Guidance:   1) reduction of risks to human
health and the environment from improper past disposal of
hazardous waste, 2) ensure protection in the future; and
3) strive to use our resources and expertise most effectively
by institutionalizing sound management systems and procedures
and delegating programs to Regions and States where appropriate.

From FY 1986-FY 1987, the emphasis of the OSWER programs will
change from initiations to completions.  Priorities center
around making our processes more effective while also striving
to attain high quality environmental results.  Additionally,
OSWER will work towards a multi-media, risk assessment approach
to the management of hazardous waste.

In addition, OSWER acknowledges the existence of various
cross-cutting activities and issues which are currently
being addressed by various Headquarters and Regional groups.
These activities include:
        Streamlining processes - OSWER intends to evaluate
        and improve upon several programmatic functions such
        as regulatory development and information management
        as well as overall management planning of projects
        and facilities.

        "How clean is clean" - Several workgroups are addressing
        this complex issue as it applies to the implementation
        of activities such as corrective action, closures and
        remedial cleanup.

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                      -2-
Groundwater protection - Since groundwater protection
is an Agency and OSWER priority, we intend to maintain
an interdisciplinary approach to determine the most
effective techniques for addressing current ground-
water problems as well as ensuring groundwater
protection in the future.

Overlapping RCRA/CERCLA/UST issues - OSWER recognizes
that there are several activities which may require
involvement by RCRA, CERCLA and UST staffs during
various stages.  Appropriate policies and procedures
are currently being discussed.  Such overlapping
issues include:  RCRA sites on the National Priorities
List, RCRA/CERCLA Off-site Policy, corrective action
of leaking tanks and Loss of Interim Status facilities'
potential impacts on the CERCLA program.

OSWER interface with other programs and agencies - In
an effort to improve multi-media cooperation and
consistent decision making, OSWER intends to solidify
an effective working relationship with EPA programs
such as Air and Radiation  (Air Toxics Strategy/Chemical
Emergency Preparedness Program, and air emissions at
RCRA facilities), Water  (corrective action at POTW's)
and Pesticides and Toxic Substances (PCB disposal).
Additionally, OSWER will work with other Federal
agencies to ensure that Federal Facilities comply
with RCRA and CERCLA requirements.  Where resources
permit, we encourage our Regions to work with Tribal
Governments to undertake activities associated with
hazardous and solid waste on their reservations.

Enhance scientific expertise/pursue alternative
technologies - OSWER is committed towards improving
technical expertise (i.e. SITES project with ORD) as
well as in encouraging innovative technologies where
feasible (i.e. incineration).  Additionally, high
quality analytical support and effective sample
management will be stressed.

Strengthen the enforcement program to ensure corrective
actions - OSWER intends to take an aggressive stance
towards violators in order to ensure timely and
appropriate corrective actions.  We will utilize our
enforcement authorities to increase PRP activity in
cleanup processes, as well as to address those
facilities that are in significant non-compliance.

Enhance human resources -  It is an OSWER priority to
enhance its workforce through various approaches such
as individual development plans, training and rotations
Additionally, the OSWER training needs survey and the
Superfund Workforce planning project completed in FY86
will be utilized to increase the capabilities of the
on-scene coordinators (OSC's) and remedial project

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                               -3-
        managers (RPM's).  Other training efforts will
        focus on groundwater,  Chemical Emergency Preparedness,
        State support and RCRA/CERCLA relationship courses.
        Such efforts are geared towards the professional
        development of our staff as well as in improving our
        overall effectiveness.

This year's guidance is divided into three program areas:
Superfund, RCRA and Underground Storage Tanks.  This structure
allows for more specificity in articulating the goals and
priorities of the individual program areas within OSWER.

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                              -4-


            FY 1987 SUPERFUND OPERATING GUIDANCE

I.  INTRODUCTION

The basic authority under which the Agency addresses threats
from uncontrolled hazardous waste sites is the Comprehensive
Environmental Response, Compensation and Liability Act of 1980
(CERCLA).  This guidance reflects current program goals under
the 1980 statute.  It will be revised following the CERCLA
reauthorization.

A) PROGRAM PRIORITIES

Speed Up the Remedial Process

In FY 1987, the emphasis in the Superfund program continues to
be to implement a balanced program to ensure that environmental
threats pos«d by sites are addressed as quickly and effectively
as possible.  During FY 1987, Regions will begin implementing
programmatic changes identified in the FY 1986 pilot projects
that improve both the management and technical performance of
the remedial program.  The pilot projects are planned to examine
issues concerning contractor continuity and strategy, methods
for expediting the response process and the approach for
identifying remedial alternatives.  The Agency will closely
monitor performance at sites where work is underway and
will place continued emphasis on site-specific planning and
management in the Regions.  Emphasis will shift from initiations
to completions.

Accelerate the Pace of Site Cleanup through a Strong
Enforcement Program

The overall goal of the CERCLA enforcement program is to
accelerate the pace of cleanup by responsible parties at
inactive hazardous waste sites.  The most effective approach
for accomplishing this goal is a balanced program involving:

     0  Fund-financed cleanup, coupled with cost recovery
        action under §107;

     0  Enforcement action under §106, including litigation
        and administractive orders;

     0  Negotiated private party cleanups; and

     0  State enforcement actions under State authority.

The Agency seeks to integrate criminal enforcement with the
routine operation of the CERCLA program.  Accordingly, Regions
will, in the conduct of their compliance and enforcement
programs,  identify and refer to the Office of Criminal Investi-
gations for investigation suspected criminal conduct, "tips"
or other information relevant to criminal enforcement.

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                             -5-
Implement Improved Management Systems

The increased number of sites with ongoing removal and remedial
activity requires greater emphasis on site-specific management
and the necessity for improving tools for managing the Super-
fund program.  During FY 1986, the Regions will be working
with Headquarters to improve Superfund management and
information systems.  This project will focus on methods for
assisting with site-specific management planning as well as
the transfer of project inventory, tracking, and planning
information to a common system for Headquarters and Regional
program management.  During FY 1987, the Regions will be
implementing the site-specific management planning using the
tools developed in FY 1986.  Also, increased emphasis will
be placed on data completeness and quality.

Increase Use of Alternative Treatment Technology

During FY 1987, the Agency will aggressively implement the
results of several efforts directed towards increasing the
use of alternative treatment technologies in removal and
remedial activities.  Demonstrations of alternative
technologies at Superfund sites will be a priority activity.
FY 1986 will see the increased availability of alternative
treatment technology studies and reports, treatment capacity
studies, and other technology transfer studies.  In addition,
early evidence of private sector interest in the SITE (Super-
fund Innovative Technology) program as well as removal program
initiatives with alternative technologies will be available.
As scientific and engineering evidence supports the efficient
and effective use of these innovative and alternative treatment
technologies, the Agency will encourage their utilization at
sites ready for remedy selection.

Implement the Chemical Emergency Preparedness Program

In FY 1986, interim guidance was issued on the Agency's
Chemical Emergency Preparedness Program.  The interim guidance
describes the Agency's program to assist States and local
communities in identifying and developing contingency plans
to deal with potentially acutely toxic chemicals.  In FY
1987, Regions will coordinate with States, local communities
and Regional Response Teams (RRT) to ensure that community
needs for emergency preparedness/prevention and contingency
planning are being met.  The Agency will develop training
programs and make them available to States and communities
to complement the preparedness program.

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                               -6-


II.   GUIDANCE

GOAL I   Achieve Environmental Results

A)   Stabilize Actual or Potential Threats from Releases of
     Hazardous Substances

1.   Response, through removal actions at NPL and non-NPL
     sites, to threats to public health and the environment
     posed by releases from uncontrolled hazardous waste
     sites and spills of hazardous substances and oil

Although the removal program historically has been generally
reactive to hazardous substance releases, the broadened
authorities of the revised NCP allow the removal program
to assume a more proactive role by addressing threats of
releases and thereby preventing releases of hazardous
substances.  We will continue to respond to threats posed
by releases or threats of releases at unlisted waste sites
and from other unanticipated events.

     0  Broader language contained in the revised NCP gives
        the removal program more latitude to abate threats
        in general rather than limiting responses to imminent
        and substantial threats.  The Agency will undertake
        removal actions using these broader authorities at
        NPL sites.  The Agency expects the current level of
        NPL site removals to remain relatively constant.

     0  We will continue to explore the feasibility of using
        Multi-Site Cooperative Agreements (MSCAs) for removal
        actions at NPL sites to enable states to stabilize NPL
        sites prior to initiating remedial activities.  A
        workgroup dealing with multi-site cooperative agree-
        ments for removals has been convened to consider
        options for State involvement in removals and to
        develop procedures where appropriate.

     0  The removal program will make greater use of alter-
        natives to land disposal through adherence to the RCRA
        Off-site Disposal Policy, which directs the program to
        comply with the 1984 RCRA amendments and the intent of
        Congress to "foster the use of more permanent solutions.
        The transition to alternative treatment and disposal
        technologies will parallel the framework of the RCRA
        amendments which call for an evaluation of alter-
        natives to land disposal.  The major factors to be
        considered by the Regions in this evaluation are
        1) the determination of minimum waste quantities and
        any possibility that excessive quantities may tie up
        facilities or exceed facility capacity; 2) waste
        characteristics, which include mobility, hazardous
        constituents and concentrations, volatility, toxicity,
        and persistence; 3) capacity of alternative facilities
        and 4) cost.

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                               -7-
     0  In order to accomplish its removal program goals, a
        contracting network of Emergency Response Cleanup
        Services (ERCS) contractors was established to resoond
        to releases or threats of releases of hazardous
        substances.  ERCS consists of four zone contracts
        covering all ten Regions, plus a projected total of
        sixteen to thirty smaller, supplemental Regional
        contracts.   During FY 1987, all four zone contracts
        will terminate. 'Currently, these four contracts
        together provide almost $60 million in capacity for
        cleanup each year.  To be able to continue to ensure
        quick response to removal actions anywhere in the
        country without a break in coverage, EPA will initiate
        procurement activity for recompetition of ERCS about
        nine months prior to termination of each contract.
        The contract initiative is intended to ensure that
        sufficient contract capacity is available in order
        to carry out removal actions consistent with CERCLA
        and the NCP.

     0  Removals for the purpose of site stabilization or
        for response to emergencies may be Fund-financed or
        conducted by responsible parties.  The Regions should
        contact Potentially Responsible Parties (PRPs) and
        consider whether private-party response is appropriate,
        in lieu of Fund-financed response.

     0  The Agency will issue Administrative Orders in appro-
        priate circumstances before initiating Fund action, as
        long as the site does not pose an unreasonable risk of
        harm to the public health, welfare or the environment.
        The Regions should consider issuing Administrative
        Orders in situations where there is at least one week
        between the time that the OSC determines that a removal
        action is warranted and the time that actual on-site
        response must begin.  In the event of non-compliance
        with an administrative order, the Region should be
        prepared to quickly initiate a Fund-financed response
        and seek fines or treble damages from the responsible
        parties.  Further detail is provided in the policy
        entitled, "Issuance of Administrative Orders for
        Immediate Removal Actions", February 21, 1984.
        Additional  guidance is being developed on the impact
        of the revisions to the NCP which broaden the use of
        removal actions.

2.    Address the promulgation of regulations pertaining to
     reportable quantities and release notification

     0  In FY 1986  and FY 1987, OSWER will develop for Head-
        quarters and Regions a national release notification
        system for  collection of data on releases of oil and
        hazardous substances.  The objective is to design
        and implement comprehensive national notification
        and response data on accidental releases of oil
        and hazardous substances.  The proposed system

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                              -8-
        will improve data quality and quantity and promote
        a consistent format for review.

     0   Additionally,  OSWER will promulgate final RQs for
        potential  carcinogens,  and propose new listings
        promulgated by the media programs directly affecting
        the CERCLA section 101(14) hazardous substance list.
        In addition, OERR will  propose RQ's for the approx-
        imately 250 new air toxics listings which are not
        currently  on the CERCLA section 101(14) hazardous
        substance  list, but which very likely will be
        statutorily required as a result of Superfund re-
        authorization.

     0   It is expected that CERCLA reauthorization will
        include civil and administrative penalties, as well
        as the criminal penalty for failure to notify.
        Releases equal to or exceeding an RQ which are not
        properly and promptly reported will now be subject
        to civil and administrative penalty provisions.
        These provisions will greatly enhance compliance
        with the RQ reporting rule.  However, the civil
        and administrative penalty provisions cannot be
        effectively implemented unless a notification system
        is in place to capture  all release notifications
        received by the Federal government.  Therefore, the
        timing of  RQ implementation and enforcement will be
        largely contingent on the development of the release
        notification system mentioned above.

3.   Address the Agency's continuing commitment to respond to
     major discharges of oil

     0   Regions should maintain their present level of on-
        scene response to major oil spills as defined in the
        NCP.  Further, the Regions should continue to provide
        on-scene oversight of private party cleanups of major
        oil spills.  Where States or local governments are
        known to have the capability and commitment to respond
        to spills, including major discharges, they should be
        encouraged to the maximum extent possible to provide
        response.   Technical assistance should be provided to
        the Coast  Guard in coastal oil spills when the Coast
        Guard specifically requests it or when the RRT is
        activated.

     0   The Spill  Prevention Countermeasure and Control
        Program continues as an important priority in the
        oil program.  Available resources following response
        activity should be directed to SPCC activities.  In
        some situations, it may be possible to perform SPCC
        functions  in conjunction with spill response activities.
        Each Region should review and update its strategy for
        SPCC inspections and plan reviews for the coming year.

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                               -9-
B)   Reduce or Eliminate Risks from Uncontrolled Hazardous
     Waste Sites

1.   Ensure that all phases of the site clean-up "pipeline"
     are being initiated and all projects currently in the
     "pipeline" are moving efficiently toward completion

     0  A major initiative to be conducted by the Agency
        in FY 1986-1987 will be the.implementation of the
        remedial improvement pilot program.  The Office of
        Emergency and Remedial Response, acting as the lead
        office, is currently working with several Regions in
        testing several new approaches which will impact
        project schedules.

     0  Regions will continue to develop comprehensive Site
        Management Plans (SMP).  The SMP provides a vehicle
        for "the Regions and States to reach agreement on a
        schedule for initiating action at each site.  Initially,
        the multi-year plan will be used to develop and adjust
        SPMS commitments and allocate resources.  The SMP
        process will be improved as a component of the remedial
        pilot program to provide a basis for effective project
        planning, monitoring and control over the entire
        "life-cycle" of a site.  The new process will provide
        the Regions with the tools and the support needed to
        develop and maintain effective project plans, monitor
        progress towards achieving planned milestones, and
        highlight the need for corrective action.

     0  Regions will place an emphasis on selecting alternative
        technologies as part of on-site remedies.  The revised
        NCP encourages the use of reliable technologies that
        have long-term effectiveness.  Records of Decision
        should evaluate at least one alternative to land
        disposal.  The alternative technology need not be
        applied to all the waste at the site.

     0  Regions will focus on site completions and the ability
        to delete sites, through remedial action, or removals
        confirming that deletion is appropriate.

     0  Regions will place emphasis on program reviews of
        States that have lead responsibility under single or
        Multi-Site Cooperative Agreements.  Use of the Manage-
        ment Assistance Program (piloted during FY 1985-1986)
        is encouraged.

     0  Regions will ensure that States are meeting their
        responsibilities for operations and maintenance at
        sites where remedial action has been completed.

     0  Pursuant to Headquarters guidance, Regions will
        implement the natural resources claims regulation and
        response claims regulations.

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                               -10-
2.   Continue to operate a strong pre-remedial program

     0  OERR will develop and promulgate in FY 1986 and FY
        1987 HRS changes which recognize improvements and
        enhance the Agency's ability to correctly classify
        sites for the NPL.

     0  Submission of NPL candidates and related rulemaking
        documentation to"support remedial program and Congres-
        sional mandates;

     0  The Regions and States will continue to aggressively
        conduct site evaluations which involve a sequence
        of investigations to determine the extent of contamin-
        ation at a site and to provide a data base sufficient
        to identify the most appropriate response.
           »»
     0  Area specific discovery of new sites for the CERCLA
        inventory to support NPL process and the adequate
        identification and characterization of uncontrolled
        hazardous waste site problems.

     0  Program reviews by the Regions of all State cooper-
        ative agreements and State contracts, assuring that
        conditions are met with quality products.

3.   Obtain responsible party cleanup through settlements

This is the highest priority of the CERCLA enforcement program.
Achieving the proper balance between §106 and § 107 actions
is essential to the overall cleanup effort under CERCLA.  A
visible enforcement presence is needed to encourage settlements
for private party cleanups.  Reliance on §107 actions is not
sufficient to establish this enforcement presence, particularly
where the Agency defers enforcement action until the remedial
action is completed.

GOAL II   Ensure a Strong Enforcement Presence

1.   §106 actions at sites which will not be the subject of
     further Fund-financed cleanup are the highest priority
     for referrals for  injunctive relief

Referrals for injunctive relief may also be appropriate in
cases where it is still possible that Fund-financed cleanup
will be undertaken.  Such referrals may be needed where there
are potential statute of limitations concerns, or where the
site has been identified as enforcement lead, and prospects
for successful litigation are good.

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                               -11-
2.   Administrative Orders will continue to be an important
     method for assuring private party cleanup

Orders should be issued in situations where compliance with
their terms is feasible.  The Regions are not required to make
a pre-issuance determination that Respondents will comply with
an order, but rather that compliance is practicable.  The
following factors are relevent to this determination:

     0  The needed response action and liability are straight-
        forward .
     0  Respondents have adequate financial capability.
     0  There are relatively few PRPs.
     0  The response action is reasonably specific.
     0  The Agency should be ready to litigate the merits of
        the Order.
     0  There is no need for long-term court oversight.

Failure to comply with an Administrative Order will lead in
appropriate cases to the institution of further enforcement
action including civil contempt proceedings.  Where the Admin-
istrative Order has been incorporated into or entered as a
court order or decree, disobedience may also be punished as
criminal contempt under 18 U.S.C. §401(3).

Procedures for issuance of orders will be undergoing modif-
ication in response to CERCLA reauthorization.

3.   Create a climate that is receptive to private party
     cleanup proposals

Responsible parties will continue to have an opportunity to
perform or be involved in the studies used to determine the
appropriate extent of remedy.  Specific details are set forth
in the policy entitled "Participation of Potentially Responsible
Parties in the Development of Remedial Investigations and Feas-
ibility Studies under CERCLA" (Lee M. Thomas and Courtney M.
Price, March 22,  1984).  The Agency anticipates that both the
Fund and private resources may be used at the same site in some
circumstances.  When the Agency settles for less than 100% of
cleanup costs, it can use the Fund to assure site cleanup will
proceed expeditiously, and then sue to recover these costs from
the non-settling responsible parties.  When the federal govern-
ment accepts less than 100% of cleanup costs and non-financially
viable responsible parties remain, Superfund monies may be
used to make up the difference.   The Agency's  "Interim CERCLA
Settlement Policy", December 5,  1984, outlines the general
principles for private party settlements under CERCLA.  The
Agency will develop more specific procedures to clarify the
process for mixed funding.  CERCLA reauthorization may also
necessitate changes to the Agency's Settlement Policy.

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                               -12-
4.   Cost recovery referrals

The following types of cases are the highest priorities for
referrals in the area of cost recovery: §107 actions in which
all costs have been incurred; and §107 actions in which a
significant phase has been completed, additional injunctive
relief is needed and identified and the Fund will not be used.

     0  The Agency recently finalized its policy of filing of
        cost recovery actions. (Price and Porter, "Timing of
        CERCLA Cost Recovery Actions", October 1, 1985).  The
        current legal interpretation is that the Statute of
        Limitations expires six years after the completion of
        the response action.  Priorities for referrals are
        completed removals, completed remedial actions, and
        response actions where there is a significant gap of
        time between removal and remedial actions, or between
        phases of the remedial action.

     0  To assure timely cost recovery actions and avoid the
        loss of evidence and witnesses, cost recovery actions
        should be initiated within one year of completion of a
        removal action at non-NPL sites.  Cost recovery action
        should be initiated within one year of the completion
        of the removal action at NPL sites, if there will be a
        significant gap (18 months or more) between removal
        completion and the signing of the Record of Decision
        (ROD).  Cost recovery action for remedial action should
        be initiated as soon as practicable after the signing
        of the ROD, usually within 18 months of that time.

     0  Anticipated amendments to the law under CERCLA reauth-
        orization will authorize the Agency to develop stream-
        lined procedures for collection in small cost recovery
        cases where the amount of resources to be recovered does
        not merit a full-fledged referral.

     0  On October 2, 1984, the Agency and ASTSWMO issued a
        joint policy on "State/EPA Relationship in Enforcement
        Actions for Sites on the National Priorities List."
        This policy discusses actions to be taken that will
        improve the State/EPA relationship and increase the
        effectiveness of enforcement actions for NPL sites.

5.   Federal/State enforcement actions

The most important initiatives for improving the Federal/
State enforcement relationship include:

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                               -13-
     0  EPA issued guidance on January 17,1986, for providing
        funds to States for RI and FS at State-lead enforce-
        ment sites, and funding for oversight of responsible
        party conduct of RI,  FS and RD.   EPA will also develop
        guidance to allow, where appropriate, funding for
        other State enforcement-related  activities including
        oversight of PRP RA negotiations and litigation to
        compel or encourage private party cleanups.

     0  Sites will ultimately be classified as State-lead if
        States prepare RI/FS, negotiate  within established
        time limits, provide for public  comment, implement a
        remedy at least as stringent as  would be required
        under the MCP, and keep EPA informed of its actions.

     0  State/EPA Enforcement Site Agreements will be estab-
        lished where appropriate to identify the nature and
        level of detail of involvement in each other's act-
        ivities.

     0  States and EPA will establish effective arrangements
        for information exchange to keep each other informed
        concerning progress at each other's sites.

6.  Oversight of PRP's, federal facilities and State actions

     0  The accelerated pace  of enforcement activity, the
        private party initiatives, the number of cleanup
        actions being conducted under settlements and state-
        lead enforcement actions, and federal facility
        cleanups increase the need for intensive oversight
        of private party, state and federal facility cleanup
        activity.

     0  During FY 1987, EPA anticipates  an increased number
        of private party cleanup actions performed under
        administrative orders, consent decrees or court
        orders.  This increase in responsible party actions
        will reauire a greatly enhanced  capability for
        ensuring responsible party compliance with formal
        consent decrees or administrative orders.  PRPs may
        be involved in all phases of response.

     0  The Agency anticipates that CERCLA reauthorization
        will provide additional authorities for oversight of
        responsible party actions.  Guidance is being developed
        on Federal and State oversight of PRP activities and
        the definition of roles when more than one entity has
        site responsibilities (e.g., EPA, State, and PRP).

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                               -14-


     0  OSWER and OECM will jointly develop necessary pro-
        cedures ,  systems and measures for tracking the
        status and appropriateness of responsible party
        actions in all phases of site response.

     0  The Agency will increase the level of effort devoted
        to oversight of Federal facility cleanup action under
        CERCLA.  Oversight should be substantilly equivalent
        to oversight of PRPs, and a specific target for over-
        sight of federal facility RI/FS has been included in
        the SCAP.

We anticipate that the process for federal facility cleanup
under CERCLA should be clarified by changes to the statute.

GOAL III  Cqntinue to Decentralize and Delegate Authority

1.   Deletion

As the program matures, the deletion of sites from the NPL
becomes an important priority.  Guidance regarding the
deletion process will be issued in FY 1986.  The guidance
will discuss the criteria for determining when a. remedial
action is considered complete and how a site deletion should
proceed, including requirements for analytical support.

2.   Remedial Delegations

The Regions will be given additional authority and expanded
criteria in making final site remedy selection.  These actions
will help the program maintain a balance between its planning
and remedial action activities.

     0  Each Region is responsible for reviewing the cleanup
        status of its sites and initiating deletion review
        activities for those sites that are ready to be
        considered for deletion.

     0  In FY 1987, the Assistant Administrator for Solid Waste
        and Emergency Response will address the delegation of
        deletion decisions to the Regions.

3.   Enforcement Delegations

     0  With the anticipated changes in the statute, OSWER and
        OECM will address enforcement delegations to the Regions
        such as settlements and direct referral of small cost
        recovery cases.

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                               -15-


GOAL IV  Improve Scientific Expertise

1.   Expand the Capabilities of the Environmental Response
     Team

During PY 1987, several significant programs will be in
their first or second years of implementation, including
the Chemical Emergency Preparedness Program, the Underground
Storage Tank Program, and the Ground Water Evaluation/Protection
Program.  Because of its experience in all of these technical
areas, the ERT will be looked upon to provide program continuity
both in terms of Region to Region as well as from Federal to
State to local government organizations.

     0  The ERT will rely on its established and nationally
        recognized training program, its in-house staff of
        technical experts, and its contractor support staff.
        However, due to the continuing policy of delegating
        responsibility to the Regions and States, we will
        attempt to increase ERT contractor support.  This
        will enable the ERT to expand the training program,
        technical support, and information services.

     0  Regions should develop support groups through more
        formal use of the RRT's.

     0  Establish a new function within the ERT to provide
        technical information exchange through a wide variety
        of media.  Included will be the responsibility to use
        state-of-the-art techniques and equipment to enhance
        communication with emergency response personnel and
        remedial project managers.  Implementation of this
        program will allow more efficient use of ERT staff
        time, provide quicker exchange of field experiences
        among Regions, and increase program continuity and
        oversight.

2.   Implement Better Systems and Procedures for Technology
     Transfer

All participants in the CERCLA process need ready access to
current technical information.  A system must be established
to facilitate the transfer of research and other technical
information reflecting current knowledge and findings so as
to make measurable improvements in the performance of Super-
fund cleanup activities.  Initial emphasis should be placed
on the transfer of information on alternative technologies
to land disposal and on-site treatment options.  Several
Headquarters/Regional workgroups are currently examining
alternative technologies criteria relating to treatment
performance standards, cost-effectiveness and other issues.

     0  Maintain a focal point in Headquarters for technology
        transfer activities and information.

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                               -16-
        Ensure that all important technical reports, guidance
        and policy documents are kept at a central location,
        are routinely updated, and are readily accessible to
        rsA^^p^^i^l  iie>&v»0
    -------  j
potential users
     0  Implement a system to inform users of available
        information and to actively communicate technical
        facts and data concerning ongoing research and on-
        site activities.-

     0  Establish an interactive, two-way communication process
        to match users needs with the offices that provide
        technical information.

     0  Plan and participate in technology transfer activities
        with the Regions  and Headquarters.

     0  Provide a forum for discussion among government,
        industry and the  public of technology transfer plans,
        activities, problems, overlaps and new opportunities.

     0  Actively support  and help implement the OSWER/ORD
        hazardous waste Technology Transfer Task Force strategy,
        and the ORD/OSWER SITEs Program.

3.  Analytical Support

In FY 1987, analytical support for Superfund will be affected
by two factors: 1) need for flexibility to be able to respond
to changing program requirements and 2) provision of additional
support systems to the Regions.  There will be continuing
emphasis on maintaining adequate capacity to meet program
needs, minimizing turnaround times, and improving data quality.
The Agency will consider  an emphasis on field analytic
capability, including mobile laboratories and short-term field
labs handled through the  on-site contractor.

The groundwork for this expansion will be laid in FY 1986.
The Contract Laboratory Program will establish new types and
levels of analytical support to mesh with requirements
developed through Data Quality Objectives.  The CLP will
continue the process of decentralization, while maintaining
program oversight and national consistency, by furnishing an
Environmental Services Assistance Team (ESAT) to each Region
under a national contract.  In addition,  Regional Sample
Control Coordinators (RSCC) with Deputy Project Officers
(DPO) will be more closely integrated into Sample Management
Office information and tracking systems.

     0  Continued modification and expansion of the menu of CLP
        services to meet new and different requirements.

     0  Development and implementation of procedures by
        which field contractors of the HSCD and ERD can
        obtain information and support from the CLP, while
        concurrently providing documentation on non-CLP

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                               -17-
        analytical activities.

     a  During FY 1986, a decision will be made on imple-
        mentation and development of an integrated Analytical
        Support Communication Network linking the Regions and
        the contract laboratory community with Headquarters.
        This system will streamline and speed up the scheduling
        and tracking of samples and sample data.

     0  Expanded and decentralized support to the Regions,
        via ESAT contracts and access to SMO information
        systems, to meet the growing and changing requirements
        of both RCRA and CERCLA.  As the Regional RSCC and DPO
        functions are required to provide more and more support,
        the existing support will be expanded and modified based
        on the new requirements.

     0  Continued and expanded Quality Assurance Support and
        oversight will be necessary to insure that increasing
        and diversified analytical support activities meet Agency
        requirements.  The existing QA structure will be extended
        to all analytical activities of the Office of Solid Waste
        and Emergency Response as quickly as the availability of
        resources permits.

     0  Continued emphasis on maintaining capacity, timeliness
        and quality of the CLP.

     0  Development of procedures to track all Superfund
        samples and to provide a common base of information
        on the routing of these samples.

GOAL V  Improve Technical Communication with the Public

1.  Chemical Emergency Preparedness Program

FY 1987 will be the second year of the Chemical Emergency
Preparedness Program, which was announced in June 1985 as part
of the Agency's Air Toxics Strategy.  In FY 1986 the program
objectives were:  to develop the List of Acutely Toxic
Chemicals and accompanying guidance to assist communities in
use of the List and development of preparedness programs,
build program infrastructure at the Federal, State, and
local levels, and begin program implementation.  In FY 1987,
the objective will be to continue and extend program imple-
mentation through expanded training and technical assistance
to States and, through States, to local personnel.  New
initiatives may also be mandated bv CERCLA reauthorization.
The overall program goals are to promote community awareness
of chemical hazards and assist in the development of State
and local preparedness programs and response capabilities.

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                               -18-
     0  The role of EPA Headquarters is to provide overall
        coordination of program development and implementation
        and provide additional guidance, program oversight
        and assessment, and support to Regional Offices.
        In particular,  Headquarters will coordinate Federal
        training and technical assistance resources to Regions.
        Federal interagency coordination at the national level
        will take place largely through the National Response
        Team.

     0  EPA Regions will be responsible for program imple-
        mentation within their Region.  In this role, Regional
        staff will work with States to ensure dissemination of
        program materials and provide training and technical
        assistance to States and through States to local
        personnel, and assess program implementation.  The
        Regional Response Team should provide a forum for
        coordination activities in the Regions, particularly
        in the area of training and technical assistance.

     0  The program depends upon the participation of local
        and State governments.  The local government role is
        to take the lead in carrying out the contingency
        planning, preparedness, and response functions
        described in the program guidance material.  The State
        role is to distribute program materials to local
        communities, be the principal point of contact and
        liaison with these communities, and provide training
        and technical assistance to these communities.

     0  Emphasis will be on simulations and exercises to
        evaluate contingency plans, preparedness, and response
        operat ions.

     0  Emphasis will be on increased enforcement and
        information gathering regarding reportable quantity
        releases.

2. Improve Effectiveness of Community Relations Efforts

The Superfund community relations program has been in place for
three years.  During that time, the program has expanded.  New
community relations initiatives, such as a dispute resolution
pilot project, have been undertaken.

     0  Experience to date has reinforced the importance of
        two-way communications based on informal, personal
        contact with Regional project officers and site
        residents.  In FY 1987, the Regions will continue to
        expand their community relations activities, in  terms
        of "risk" discussions, as well as conducting more
        community relations activities in the early and  late
        phases of the remedial process.  Guidance will be
        developed on making presentations to the public  on
        site cleanup alternatives.

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                       -19-
The Regions will continue to implement the basic
community relations program, consistently providing
a minimum three week public comment period for
remedies at remedial sites. In addition, Headquarters
will continue production of generic fact sheets (on
subjects such as risk assessment), while Regions will
focus on site-specific fact sheets.  Responsiveness
summaries will continue to play a major role in feed-
back to the public on their reactions to site remedies.

In FY 1985, the Agency finalized procedures governing
community relations for enforcement actions.  The
provisions for public review of RI/FS in enforcement
actions are comparable to those required for Fund-
financed cleanup, and responsiveness summaries are
required for enforcement actions as well as Fund-
financed actions.

Headquarters community relations efforts will focus
on evaluating the effectiveness of Superfund community
relations efforts and recommending changes, assuring
the integration of the community relations program
currently in place, increasing public educational
materials, and developing program and financial
tracking systems.

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                               -20-

III.    APPENDIX
                     SUPPLEMENTAL GUIDANCE *
1.   Superfund Comprehensive Accomplishments Plan (SCAP) Guidance

2.   Several guidances, as yet undetermined, related to the
     Superfund reauthorization legislation.

3.   Several guidances, as yet undetermined, related to the
     results of the Remedial Program Improvement Pilot Project.
     Potential guidances are:

     0 Contractor continuity
     0 Expediting the removal/remedial process
     0 Revised contracting strategy
     0 Revised RI/FS guidance
     0 Project and site management

4.   Evaluation Guidance - OERR will develop a document to draw
     together the various criteria used to evaluate performance.
     The document will include both Quantitative measures (SPMS,
     SCAP) and qualitative factors (recurring items of the
     annual Regional reviews).

5. Potential Enforcement Guidance Documents
     o
       Mixed Funding Guidance
     0 Procedures for Small Cost Recovery Cases
     0 Guidance on Oversight of PRP Activity
     0 Guidance on Funding State enforcement related activities
  NOTE:  The anticipated availability dates are unknown at
  this time due to their relationship to the pending CERCLA
  reauthorization.

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                               -21-


                 FY 1987 RCRA OPERATING GUIDANCE

I.   INTRODUCTION

The basic authority for the national hazardous waste management
program is the Resource Conservation and Recovery Act (RCRA).
It was amended and strengthened in 1984 by the Hazardous and
Solid Waste Amendments (HSWA).  RCRA established a "cradle to
grave" approach to the management of hazardous waste.  The
major goal of this system is the protection of human health
and the environment.  HSWA significantly expands both the
scope of coverage and the detailed requirements of RCRA.

A)  PROGRAM PRIORITIES

A number of priorities will drive the effective development,
implementation and enforcement of the national hazardous
waste management program in FY 1987.  The FY 1987 RCRA
Implementation Plan (RIP) will provide detailed imple-
mentation guidance and direction to the Regions and States
on how to implement these priorities.  It identifies specific
goals, priority activities and implementation policies that
must be reflected in State and Regional planning documents.

Groundwater Protection

Groundwater protection is the goal of numerous provisions
of HSWA.  Ensuring installation of adequate groundwater
monitoring systems at land disposal facilities is the base-
line for tracking the impacts of these facilities.  It also
provides the basis for requiring corrective action to clean
up releases to groundwater.  HSWA requires the Agency to
restrict land disposal of certain hazardous wastes.  In
addition, HSWA requires the use of minimum technology
standards for those wastes that have to be land disposed,
e.g., liner and leachate collection systems, and strengthens
the standards for groundwater monitoring.  It also requires
regulations prescribing location standards for hazardous waste
facilities and correction of environmental problems from past
mismanagement of waste at RCRA facilities.

The hazardous waste program will examine the linkages among
these provisions and the Agency's approaches to implement
them to determine the most effective and consistent means
for groundwater protection.  In the past, the Agency has
treated these items independently.  We must determine the
incremental benefits of these items when used in combination
and then integrate them into the Agency's groundwater strategy
and classification system guidance.

Permitting and Closures

OSWER will work towards meeting the HSWA-mandated permitting
deadlines for land disposal units (11/88), incinerators  (11/89),
and treatment/storage units (11/92).  In addition to very strong

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                               -22-
effort towards meeting the permitting deadlines, we will also
approach closures on a priority basis, based on environmental
significance.

Identification of Releases and Corrective Action

Implementation of permitting and enforcement authorities for
corrective action under sections 3004(u) and 3008{h) is
essential to protect human health and the environment from
releases of hazardous waste and constituents from TSD
facilities.  Corrective action encompasses several key
phases of activity: evaluation of facilities, identification
of releases; prioritization; compelling interim measures as
needed to abate immediate threats and contain potential
threats before they become significant problems; compelling
a remedial investigation, and design and implementation of
corrective measures.  Long term corrective action should to
the extent practicable be conducted on a facility wide basis
and address all releases associated with the facility.

Enforcement Program

A strong and highly visible enforcement program demonstrates
the Agency's resolve to implement the hazardous waste manage-
ment program effectively.  The Regions and States will inspect
handlers and bring civil, administrative and criminal enforce-
ment actions to achieve compliance, particularly at land
disposal facilities.

Federal Hazardous Waste Management Law (Loopholes)

The hazardous waste program will continue to implement the
provisions of the 1984 Amendments to close the loopholes that
existed in the previous law with regard to management of
wastes from small guantity generators, underground storage
tanks, municipal, nonhazardous (Subtitle D) landfills, listing
additional hazardous wastes, regulation of used oil, and the
burning of hazardous waste fuel mixtures.  For example, final
regulations on the technical and transportation standards for
burners and blenders of hazardous waste fuel mixtures will be
promulgated in FY 1987.  Final regulations concerning the
listing of used oil and related management standards will be
issued by November, 1986.  Following promulgation, these
regulations will be implemented and enforced.

Statutory Deadlines and Hammer Provisions

OSWER intends to meet the statutory deadlines for most of the
regulations, studies and listings.  However, we have missed
some deadlines and will likely miss others.  The delays were
largely the result of Agency's need to resolve complex legal,
technical and policy issues before promulgating regulations.

Treatment Capacity

Ensuring adequate and safe alternative treatment capacity and

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                               -23-


defining the role of the Agency in siting of hazardous waste
management facilities is known to be a regional priority.

OSWER will address these requests on several fronts.  Stream-
lining the permitting process may be the most productive area
to assure adequate capacity.  Development of alternative treat-
ment technologies is critical for the program.  The development
will be assisted by expedited research, demonstration and dev-
elopment permits as well, as permitting mobile treatment units.

In addition, the Headquarters program will develop information
materials on various types of treatment technologies and work
with the Regions in siting.

Improve Information Management

EPA and States must continue to improve information management
systems as a tool to improve management of the RCRA program in
FY 1987.  OSWER is focusing on a new hazardous waste data/infor-
mation system called RCRIS.  OSW and OWPE respectively will be
developing integrated information management systems.  The
hazardous waste program must determine what data we need to
answer questions regarding environmental results and protection
of public health.  Information systems will be refined and
maintained to provide adequate information on the timeliness
and appropriateness of actions at facilities and to provide a
clear picture of the regulatory and compliance status of each
facility.

B)  OPERATING THEMES

Cross Media/Cross Program Cooperation

In FY 1987,  the program will accelerate its efforts to work
with other Agency programs and offices to develop the most
effective and efficient regulatory approaches Cor controlling
toxic chemicals and hazardous waste.  For example, OSWER will
utilize information being developed on the chemicals by the
Office of Pesticides and Toxic Substances (OPTS) in RCRA
listing decisions.   In addition, the program will cooperate
with OPTS on disposal methods for pesticides, sharing data
collection systems  on new and existing chemicals, assessing
risks, and transferring responsibility for PCS disposal from
OPTS to OSWER.   OSWER will utilize the information gathering
provisions of the Toxic Substances Control Act (TSCA) to
require manufacturers of chemicals to provide health and
environmental fate  data on chemicals/wastes covered by RCRA.

Agency policy and approaches to hazardous waste management
must be coordinated between the Office of Water and the
hazardous waste program.  There are a number of overlapping

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                               -24-
issues, some of which include:  municipal sludge management,
corrective actions at wastewater treatment facilities, ground-
water classification, location guidance and standards, re-
strictions on land disposal and underground injection of
hazardou* waste, as well as the linkages among land disposal
restrictions, corrective action and the drinking water
standards established under the Safe Drinking Water Act.
In addition, the exemption for domestic sewage from RCRA
regulation and issues associated with section 404 (wetlands
protection) of the Clean-Water Act must be addressed by both
offices.  Final regulations on the domestic sewage exemption
will be promulgated by August, 1987.

OSWER will cooperate with the Office of Air and Radiation to
resolve issues associated with the burning of hazardous waste
fuel mixtures, use of municipal waste combustors, standards
for facilities other than incinerators, and the disposal of
naturally occurring radioactive materials and other low-level
radioactive wastes.  OSWER will also look to the Office of
Research and Development for assistance in developing quality
assurance programs, monitoring programs and alternative
treatment technologies.

Risk-based Analysis

In FY 1987, OSWER will move toward greater reliance upon risk-
based decision-making to resolve some of the major issues
facing the national hazardous waste program.  Such issues
include a policy on "how clean is clean," a comprehensive
listing and delisting strategy, and the development of risk-
based site-specific decisions regarding land disposal
petitions from hazardous waste treatment, storage, and
disposal facilities.

Site-Specific Decision-Making

Headquarters will work closely with the Regions to transfer
site-specific  decisions in FY 1988 and FY 1989.  In addition,
Headquarters will provide SWAT teams and examples of model
decisions to facilitate rapid and consistent decision-making.

Permit and Enforcement Integration

Within the Office of Solid Waste and Emergency Response
(OSWER), OSW and OWPE will cooperate with the Comprehensive
Environmental Response, Compensation, and Liability (CERCLA)
program to develop a consistent, effective approach to
corrective action, to implement the Agency policy for
disposing of CERCLA hazardous waste off-site, and for

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                               -25-
listing RCRA sites on the NPL.  OSW and OWPE will work to
implement a facility management approach that integrates
permitting, enforcement, and corrective actions.  Related
issues that will have to be resolved in a coordinated manner
include treatment of new v.  old hazardous waste, need for
consistent cleanup standards and risk assessment approaches,
capacity shortfalls, and control of source v. control of
exposure.  Finally, cooperation between OSW and the Office
of Underground Storage Tanks (OUST) will be essential to
ensure that good regulatory rationales exist for technical
standards for product and waste storage tanks.

Streamline and Simplify Program Guidance

OSW will accelerate its efforts to develop and distribute
clear and useful guidance.  Headquarters will include the
Region and ,.the States in developing this guidance.

OSW will concentrate on clarifying guidance documents to
better explain, to the regulated community, the thinking
process that guided Agency decisions in development of our
regulations.  Two examples of OSW's attempt to simplify and
clarify guidance documents are:

      o  Land Disposal Ban Petition Process; and
      o  Alternate Concentration Limits.

II.  GUIDANCE

GOAL I   Address previously neglected problems and restore
         environmental quality to acceptable levels
A)
Strengthen the oermitting and enforcement process to
improve the timeliness and quality of actions
1.    Integrate permitting, enforcement and corrective actions
      at hazardous waste management facilities

EPA and the States will integrate the use of permitting and
enforcement authorities to obtain timely compliance with
interim status permitting, and corrective action requirements.
Complimentary use of permitting and enforcement authorities
will ensure timely progress in achieving compliance and will
serve as an incentive to owners/operators of facilities for
improved compliance in the future.

      o  Implementation of the facility management plan (FMP)
         approach initiated in FY 1985 will be a particular
         priority.  A strategy to bring each facility into

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                               -26-
         compliance with all applicable requirements will be
         developed through early planning and coordination
         between permitting and enforcement staffs.

      o  FMPs should also reflect known and anticipated
         corrective action needs at the facility, including
         initial investigations, interim measures, remedial
         investigations and corrective measures.  The FMP
         should also identify the mix of authorities which
         will be used to"address environmental releases or
         potential releases associated with the facility.
         These authorities include CERCLA §106 and
         appropriate State authorities.

      o  Regions and States must develop a team management
         approach for each facility composed of a team leader
         who acts as a facility expediter and is responsible
         for overseeing the development and implementation of
         a facility management plan/compliance strategy for
         each facility.

      o  At each facility, early and ongoing formal meetings
         with permit applicants and States, where appropriate,
         must be held as part of the facility management
         approach.  These discussions will not be a substitute
         for enforcement, and planned enforcement activities
         will not be discussed.

2.    Coordination between RCRA permitting and enforcement and
      CERCLA enforcement

In FY 1987, OSWER will improve coordination of RCRA and CERCLA
enforcement authorities at facilities.  This will allow EPA to
ensure that all human health and environmental threats are
addressed.

3.    Expedite permitting and enhance enforcement efforts

OSWER will continue to foster an effective working relation-
ship with the states while maintaining necessary oversight
of national priorities.  EPA and the States must continue
to work together to improve the quality and timeliness of
permitting, inspection and enforcement actions as States take
over more program responsibilities.

      o  Improved joint permitting procedures and greater State
         assumption of HSWA requirements will be a focus of the
         program during FY 1987 and 1988.

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                         -27-
o  EPA will encourage active participation by State and
   Regional technical, scientific and legal staffs in
   regulatory development and implementation work groups.
   OSW will develop Implementation Plans during the
   proposed rule period and finalize them when the reg-
   ulation is promulgated.

o  EPA regions must coordinate with and maintain over-
   sight of State actions on closure to ensure protection
   of human health and the environment.

o  Enhancement of State programs will be fostered through
   a combination of resource-sharing, peer matches, and
   technology transfer.

o  Headquarters and Regions will provide technical and
   legal assistance and training.

o  Enforcement staff must work to engage State Attorneys
   General staff with State program staff in program
   planning and management decisions and in developing
   EPA/State enforcement agreements in such program
   areas as corrective action, closures and groundwater
   monitoring.  The State Attorney General's role should
   be reflected in State grant agreements.  In particular,
   EPA will conduct training based on the Groundwater
   Monitoring Technical Enforcement Guidance Document
   and Compliance Order Guidance.

o  As in the last two fiscal years, the Regions and States
   are subject to the RCRA program Interim Quality Criteria
   and the Enforcement Response Policy.  The criteria will
   be revised as needed to reflect additional program
   experience and program goals.

o  Regions should carefully monitor progress in enforce-
   ment action against significant non-compliers (land
   disposal facilities with violations of the groundwater,
   closure/post-closure, and financial responsibility
   requirements) and take action where the States cannot
   or will not take timely and appropriate action.

o  Regions should maintain oversight of State permitting
   and enforcement actions to ensure that States follow
   their commitments in the State grant agreements, the
   State enforcement agreements, and the interim quality
   criteria.

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                               -28-
B)    Implement RCRA Authorities at Hazardous Waste Management
      Facilities to Protect Human Health and the Environment

1.    Implement the corrective action program through the use of
      permitting and enforcement authority, as appropriate

EPA and States (when authorized) will require preliminary and
detailed studies to determine the extent of contamination in
surface and groundwater,- soil, and air and require owners/
operators to initiate interim and final corrective action
measures.

      o  Initial investigations should be conducted at operating
         and closing facilities to determine whether there are
         releases from hazardous waste management units (HWMUs)
         and/or solid waste management units (SWMUs).  Whenever
         possible, the initial investigation should be conducted
         on a facility-wide basis.  When completed, the Region
         should determine whether the owner/ operator should
         undertake additional data collection, interim measures
         and/or remedial  investigation (RI).

      o  Priorities for corrective action include operating and
         closing land disposal and incineration facilities, and
         facilities providing alternative treatment capacity,
         as well as storage facilities with known significant
         releases and target populations likely to be exposed.

      o  Use of section 3008(h) orders to address releases at
         closing facilities is a priority to ensure that they
         do not pose current or future threats to public health
         and the environment.

      o  Use of section 3008(h) to compel interim measures as
         appropriate, especially at closing facilities, is a
         priority.  Compelling interim measures is the most
         effective mechanism to abate significant threats and
         to prevent potential releases from becoming actual
         releases.

      o  Regions and States will ensure that RCRA RI activities
         at facilities are consistent with Superfund RI to
         facilitate transition to CERCLA when the facility
         cannot fund remediation activities under RCRA.

      o  EPA Headquarters will coordinate among program offices
         to develop an approach to corrective action for POTWs
         and underground injection wells, which are subject to
         RCRA Subtitle C permit-by-rule and individually
         permitted under CWA and SDWA.

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                               -29-
2.     Require proper closure of facilities to ensure protection
      of human health and the environment

      o  Closing facilities must have adequate groundwater
         monitoring systems in compliance with 40 CFR Parts 265
         and operate them properly.
      o
         Initial investigations and further corrective action
         requirements, on a facility-wide basis to the extent
         practicable, are priorities.

      o  Facilities may not close surface impoundments by
         removal of wastes until they have demonstrated that
         there is no groundwater contamination and that
         satisfactory investigations demonstrate the absence
         of residual contamination.
           »»
      o  EPA and States must ensure that closure and post-
         closure plans are sufficient to protect human health
         and the environment, that they are carried out as
         approved, and that facilities implement applicable
         requirements for the life of the plan or post-closure
         permit.

3.    Ensure compliance with interim status and final permit
      groundwater monitoring requirements

By FY 1987, all operating and closed land disposal facilities
must at a mininum have groundwater monitoring systems that
meet 40 CFR Part 265 requirements, using the RCRA Groundwater
Monitoring Technical Enforcement Guidance Document to make
determinations on the adequacy of systems.  Facilities that
are not in compliance must be subject to a formal enforcement
action in FY 1986.  In addition, land disposal facilities
seeking an operating permit must satisfy the groundwater
monitoring requirements of 40 CFR Part 270 or be the subject
of a formal enforcement action in FY 1986.

      o  Both operating and closed land disposal facilities
         will continue to be inspected once a year to evaluate
         compliance status.

      o  EPA Regions and States will conduct quality compre-
         hensive groundwater monitoring evaluation (CUE)
         investigations at facilities where this has not
         been done or where a CME completed in the past was
         inadequate.

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                               -30-
      o  OWPE will evaluate inspection guidance to refine
         and improve inspection methodologies through more
         detailed guidance, handbooks and training.  OWPE
         will also develop innovative approaches to conducting
         inspections, such as the use of private inspectors.

      o  Special attention is to be given to evaluate whether
         facilities in detection monitoring have releases and,
         therefore, should undertake assessment monitoring to
         determine the extent of contamination.

      o  Enforcement actions against facilities with inadequate
         groundwater monitoring systems must be brought to a
         final order as expeditiously as possible.

      o  EPA and States must monitor compliance with ground-
         water monitoring requirements specified in permits and
         orders and bring prompt enforcement action for non-
         compliance.

      o  Continue to implement the off-site policy to provide
         acceptable disposal facilities for CERCLA waste.

4.    Resolve the technical, scientific, and regulatory issues
      associated with "how clean is clean"

In the interim, decisions on cleanup levels will be made on a
case-by-case basis with appropriate program guidance.  These
decisions will be applied to permitting, corrective action, and
closures, as appropriate.

5.    Expedite review and decision-making for Part B permit
      applications

All land disposal facilities must have submitted a Part B permit
application by November, 1985 in order to continue to operate.
Processing of these permit applications must be completed by
November, 1988.  During FY 1987 and 1988, the Agency and the
States will evaluate permit applications so that permit
determinations can be completed by November, 1988.  Review of
Part B permit applications is a lengthy, iterative process,
involving negotiations with the facility's owner/operator, public
meetings, and enforcement activities.  Approximately 500 land
disposal facilities had already applied for an operating permit
by the end of FY 1985.

      o  As indicated previously in this guidance, FMP's are
         the mechanism to develop a strategy to move facilities
         through the permitting process in a timely fashion.
         Regions and States will use a team approach to co-
         ordinate permitting and enforcement action at the
         facility.  Agency/permittee meetings, documented as
         part of the regulatory record, will be used to facil-
         itate the permitting process.

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                               -31-


      o  EPA and States will continue to streamline the
         permitting process.

      o  Priorities for permitting are land disposal, incin-
         eration, and alternative treatment facilities.  Lower
         priority permits, such as non-environmentally sig-
         nificant storage facilities will be processed on a
         slower schedule.

      o  EPA and States will work to expand public involvement
         during the permitting process.

6.    Improve compliance at Federal facilities

OSW continues to issue permits to Federal facilities.  Head-
quarters is working closely with the Regional federal facil-
ities coordinators who are responsible for program coordin-
ation with Federal agencies.  It is a priority to make
compliance at Federal facilities a model for all RCRA
Subtitle C facilities.  OSW has developed a policy document
which emphasizes the Agency's commitment to enforce RCRA
permitting requirements at Federal facilities.

      o  EPA must conduct all inspections at Federal facil-
         ities, as well as all facilities owned by State and
         local governments.  State inspectors may accompany
         EPA inspectors.  Whenever possible, inspections
         should be facility-wide to identify corrective
         action needs.

      o  EPA encourages States to take prompt and appropriate
         enforcement action when violations are identified,
         including formal enforcement actions for Class I
         violations.  When States cannot or will not take
         action, EPA will take enforcement action.

      o  Regions should use 3008(h) to compel corrective
         action, as appropriate, at Federal facilities.

      o  EPA and states should continue monitoring to ensure
         compliance with orders.

7.    Provide technical support to the criminal enforcement
      program

During FY 1987, the Agency will continue to take criminal action
in cases in which a person knowingly violates interim status or
permit requirements, causes hazardous waste to be transported to
unauthorized facilities, or exports hazardous waste without
meeting certain conditions.

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                               -32-
      o  Particular attention will be given to persons who
         knowingly and illegally dispose of hazardous waste.

      o  EPA and States must develop an effective communications
         strategy to publicize successful criminal action as a
         deterrent to the rest of the regulated community.

8.    Promote innovative compliance monitoring and enforcement
      of the small quantity generator regulations.

EPA and States must develop new and innovative approaches
relying on intensive public education efforts and targeted
enforcement approaches.
GOAL II  Control the use of existing commercial chemicals
         and pesticides that pose an unreasonable risk to
         health and the environment

OSWER is comitted to creating a link regarding, information on
commercial chemicals and hazardous waste from those chemicals.

1.    Shared basic research

OSWER will work with the OPTS to coordinate and share basic
research on a variety of chemicals and toxic substances.  The
program can draw upon both the methodology and the substantive
conclusions reached through the risk assessment and management
activities of OPTS.

2.    Pesticide disposal

Joint efforts will also be undertaken to develop effective
approaches to disposal of pesticides as this activity overlaps
the mandates of the hazardous waste and pesticide programs.

3.    Listing decisions

While OSWER faces increased requirements and pressures to list
large numbers of toxic materials as hazardous waste, it will
cooperate with OPTS in making its listing decisions.  It can draw
upon data developed by OPTS in its new chemical/new pesticide
reviews and registration standards reviews to assist in this
effort.

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                                -33-
4.    Land disposal bans

OSWER will work with OPTS and use TSCA information gathering
authorities to obtain needed data.
GOAL III  Anticipate and prevent future environmental problems
          and maintain high levels of environmental quality

OSWER will work to prevent risks from hazardous waste treatment
and disposal activities in the future through development of new
regulations and programs and revisions of existing regulations.

1.    Fix existing regulatory framework where appropriate

      o  Appendix VIII

         In FY 1987, the program will make final changes in its
         groundwater monitoring requirements, especially the
         requirements for monitoring the hazardous constituents
         listed in 40 CFR Part 261, Appendix VIII.  Owners/
         operators of facilities and the EPA Regions, have
         requested Headquarters assistance in implementing
         groundwater regulations.  Short-term fixes will
         occur in FY 1987.  For example, in consultation with
         outside experts in December 1985, OSWER will produce
         short-term guidance on how to apply the constituents
         listed in Appendix VIII to the permitting program.

      o  Clean closures

         The requirements for closure of interim status surface
         impoundments now allow closure of a facility with no
         post-closure care requirements, if an owner/operator
         can demonstrate that the remaining hazardous wastes
         have been removed.  The closure standards for char-
         acteristic wastes at interim status facilities are
         not consistent with those of finally permitted facil-
         ities.  In FY 1987, the program will amend these reg-
         ulations to resolve the inconsistencies.  Further,
         OSWER will also ensure that closure standards are
         made consistent with those specified in our reg-
         ulations on land disposal restrictions.

      o  Definition of solid waste

         The regulations on the "definition of solid waste"
         set out which secondary materials are excluded from
         hazardous waste regulation because they are recycled in

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                         -34-
   certain ways or otherwise integral in an industrial
   process.  These regulations are complex and relate to
   •any segments of the hazardous waste regulations.  The
   Agency will continue to simplify wherever appropriate.

o  Delisting program

   OSWER will develop a comprehensive delisting strategy
   that involves Regional and State determinations on
   site-specific delisting petitions.

o  Major/minor permit modifications

   Current and proposed RCRA regulations require a re-
   source-intensive administrative process for approving
   most modifications to RCRA permits once they have been
   issued.  Although some minor modifications can be made
   without public notice and opportunity for comment,
   most permit modifications ("major modifications")
   require adherence to 40 CFR Part 124 public partic-
   ipation requirements, including public notice and the
   opportunity to comment.

   During FY 1986, the program intends to revise current
   permit regulations to allow greater flexibility in
   making changes to facilities'  equipment operations.
   The use of regulatory negotiation for this issue is
   being explored.  The environmental community has raised
   the sharpest criticism with regard to changing the
   regulations.  The Agencvr States and owners/operators
   agree, however, that some modifications should be made
   outside the cumbersome, full-blown process.

o  Mobile treatment

   The Agency will develon mechanisms to improve the
   currently complex procedures for permitting mobile
   treatment units in cases of site-specific cleanups
   where the treatment facilities may not be needed
   permanently.  It has proved inefficient and counter-
   productive to require a Federal permit and a permit
   within each State where treatment is needed.

o  Financial assurance criteria

   OSWER must promulgate regulations specifying financial
   responsibility requirements for facility owners/
   operators for corrective actions (HSWA sections 206
   and 208).

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                               -35-
      o  Subparts X and Y

         Regulations will be developed for the treatment,
         storage and disposal facilities using management
         practices not currently addressed by our regulations,
         (i.e.,  non-incineration thermal treatment, open deton-
         ation).  In addition,  regulations will be developed
         for experimental facilities for treatment of wastes
         in salt domes, salt beds,  mines and caves.

2.    New initiatives

      o  Burning and Blending

         OSW is  phasing in regulations to control burning and
         blending of waste fuels.  These rules will provide
         controls for storage and transportation of all fuels
         that contain or are derived from hazardous waste and
         used oil, and permit standards for burning such fuels
         in industrial and utility  boilers and - industrial
         furnances.   The Agency would prohibit burning of
         waste fuels in non-industrial boilers.   In FY 1987,
         OSW must focus in developing the proposed technical
         standards.   Some of the issues OSW must address during
         FY 1987 are:

         - whether to use a site-specific risk assessment v.
           general performance  standards;

         - whether to tailor permit standards for facilities
           burning hazardous waste  fuels by developing design
           and operating requirements and a waste specification
           for permitting boilers and industrial furnaces rather
           than  the  expensive and comolicated trial burns required
           for incinerators to  demonstrate effective combustion
           of toxic  organics; and

         - whether to permit facilities under permit-by-rule
           standards which would not require interaction between
           facility  owners and  operators and Agency officials.

      o  Small Quantity Generators

         OSWER will  promulgate  the  small quantity generators
         rule in the spring of  1986.  We estimate that these
         new requirements will  affect approximately 175,000
         establishments that produce small quantities of hazardous

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                      -36-
waste.  OSW must inform small quantity generators about
the new requirements and assist  them  to determine their
regulation status and fulfill their new responsibility.
OSW has developed and will  implement  a 3-phase  outreach
program.  Phase 1 of the outreach program  is underway.
In FY 86-87, OSW will focus on implementing phase 2
which includes:

    working with trade and professional associations,
    trade press, and other national groups to alert
    the small  business community about these new
    requirements;

    developing and disseminating print and audio/visual
    materials  to explain new requirements; and

    assisting  State and local agencies to  develop
    State-specific education/outreach programs  and
    target affected business.

Subtitle D

In FY 1987 and FY 1988, the program will proceed with  a
major new initiative in the area of non-hazardous waste
(Subtitle D) landfills.  By November  1987, the  Agency
must  report to Congress on  the adequacy of the  existing
landfill criteria to protect human health  and the
environment from ground water contamination.  It will
recommend additional enforcement authorities, if they
are needed.  In FY 1988, the Agency must revise the
criteria for facilities receiving hazardous household
or snail quantity generator wastes.   At a  minimum,  the
Agency will require groundwater  monitoring, establish
location criteria, and provide for corrective action,
•where appropriate.

Since there are approximately 275,000 Subtitle  D facil-
ities and limited Federal,  State and  local resources
to tackle this issue, careful attention will have to be
focused on those facilities and  wastes most  likely  to
cause adverse  health and environmental problems.  The
program has already begun a massive outreach effort
involving State and local officials as well as  many
representatives of the private sector.  The activities
will  be expanded during FY  1987.

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                         -37-
0  Waste minimization

   Securing implementation of appropriate waste reduction/
   minimization methods on the part of generators will be
   an important part of the hazardous waste program for
   FY 1987.  The Agency will be issuing a Report to
   Congress on Waste Minimization at the beginning of FY
   1987.  This area holds promise for helping to abate
   capacity shortfalls and for assuring the public that
   effective efforts are being made to manage waste
   responsibly.

o  Land disposal restrictions

   An integrated regulatory approach to land disposal
   restrictions that protects human health and the
   environment will continue to be developed and imple-
   mentation initiated during FY 1987.  This approach
   will take into account various components that, to
   a large degree, are now considered separately:
   standards for corrective action;  minimum techno-
   logical requirements (e.h., liners, leachate
   collection systems); facility location criteria;
   land disposal restrictions; standards for determining
   how clean is clean; standards governing facility
   closure; and determination of what constitutes a
   release of a hazardous substance  or waste.

   During FY 1987, the land disposal restriction program
   will be extremely active.  Final  regulations establishing
   a framework for determining which wastes will be banned
   from land disposal will be promulgated in FY 1987.  In
   addition, final rules on land disposal restrictions
   pertaining to dioxins, solvents and the "California
   list" of hazardous wastes must be issued by July, 1987.
   The final rule regarding land disposal restrictions on
   the first one-third of those wastes listed by EPA as
   hazardous must be promulgated by  August, 1988.

o  Comprehensive approach to listings

   During FY 1987, the program will  examine alternatives
   for a comprehensive listing strategy.  Regulations for
   EPA toxicity testing are due by March, 1987.

   Environmental and public health protection will be
   increased through key new listing decisions regarding
   the waste generated by industries associated with

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                               -38-
         petroleum refining and wood preserving, as well as
         the listing of used oil and additional solvents.
         Other benefits may accrue from decisions based upon
         the section 8002 large volume studies which will
         review waste treatment and disposal in the mining,
         utilities, and .oil and gas industries as well as
         wastes treated in cement kilns.

3.     Increase public education/outreach efforts.

      o  Headquarters is considering several candidates for
         negotiated rulemaking, including major/minor permit
         modifications, financial assurance for corrective
         actions,  PCB regulation, and groundwater monitoring
         requirements (Appendix VIII).  Further, we will have
         major outreach efforts in the areas of small quantity
         generators and Subtitle D.

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                                   -39-


*   III.    APPENDIX


                      SUPPLEMENTAL GUIDANCE


                                                              Estimated
      Document                                                Availability

      Location Standards Guidance, Phase II (Final)              5/86

      Land Treatment Standards (Final Draft)                    12/86

      Guidance on Retrofitting Surface Impoundments
        (Final Draft)                                            6/86

      Guidance an Bulk Liquid Hazardous Waste (Final)             8/86

      Guidance on Corrective Action (Final)                     10/86

      Preliminary Assessment/Site Investigation
        Guidance (Final)                                         6/86

      Closure Policy (Draft to Regions)                          8/86

      Interim Exposure Assessments Guidance
        (Draft to Regions)                                        1/86

      Alternative Concentration Limits Guidance (Final)          8/86

      FY 1987 RCRA Implementation Plan                           4/86

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                              -40-


Tentative Outline of the FY 1987 RCRA Implementation Plan (RIP)


 (1)  Goals and Priorities

 (2)  Facility Management

 (3)  Compliance Monitoring and Enforcement

      o  Inspections
      o  Enforcement

 (4)  Permitting

      o  Joint Permitting
      o  Permit Processing Priorities
      o  Exposure Information
      o  Surface" Impoundment Retrofitting Waivers
      o  Public Involvement

 (5)  Corrective Action

 (6)  Closures

 (7)  State Authorization

 (8)  Federal Handlers

      o  Annual EPA Inspections
      o  Biennial Inventory
      o  EPA Enforcement for Federal Handlers

 (9)  Oversight

      o  Requirements for State Grant Work Programs
      o  Evaluating Performance

 (10) Grants Administration

      o  Grant Allotments
      o  Use of Grant Funds
      o  Training

 (11) RCRA Reporting

 (12) Strategic Planning and Management Systems  (SPMS)

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                               -41-


       FY 1987 UNDERGROUND STORAGE TANKS OPERATING GUIDANCE
I.  INTRODUCTION

The Office of Underground Storage Tanks (OUST) is a new
Office established at EPA to respond to the requirements of
Subtitle I of HSWA.  The Underground Storage Tanks (UST)
program is new in the sense that the HSWA amendments ask
EPA to address this program area.  We recognize, however,
that some local and State governments have been dealing with
environmental and health problems caused by leaking under-
ground storage tanks for many years.

What may be new is the national recognition that leaking
underground storage tanks are a much more frequent occurrence
than any of us realized.  Congress has indicated, in Subtitle
I, that the Underground Storage Tank program may be run by
approved States "in lieu" of a Federal program.  We will
emphasize that approach by focusing on providing tools for
development of approvable State programs.   We Will also develop
means to address the needs of individuals on the firing line.
This may be a local fireman, or inspector, a tank installer,
a facility owner or operator, or a State or local agency
regulator.

A)  PROGRAM PRIORITIES

We are committed to developing impleraentable regulations
that protect human health and the environment.  We are also
committed to giving States every incentive to apply for UST
program approval.  There are many uncertainties and unknowns
in this field, many questions left to be answered.  Therefore,
we will seek to promote the development and exchange of useful
and practical information and minimize requiring or directing
specific approaches to be adopted.

Our goal is to have organizations, trained people and effective
methods available, over time, to deal with the problem of
underground storage tanks and to prevent leaks in the future.
EPA's (Headquarters and Regions) role is to help bring this
about through support and assistance to State program devel-
opment while developing a Federal program standard to protect
human health and the environment.

To assist States in developing their UST programs, we will
evaluate a variety of alternative funding mechanisms the
States may use to supplement Federal program grants.  Dif-
ferent approaches are already being used in several States;
we will assess these mechanisms and work with the States to
identify those that are successful.

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                               -42-
To summarize, the UST program is designed to halt the
installation of tanks that are most likely to leak from
corrosion, help States identify the universe of tanks to
be regulated, establish standards for tank design and leak
detection and clean up damage where leaks have occurred.

II.  GUIDANCE

Regulations

The highest priority task for FY 1987 is completion of proposed
regulations for tank technical standards, corrective action
and State program approval .  OUST will develop these reg-
ulations through the workgroup process with extensive
participation from the Regions and States.  In particular,
OUST will cooperate with CERCLA and RCRA staffs to address
the disposal of used and removed tanks.  Research findings
from EPA projects and others will support these workgroup
efforts.

Notification
Early in FY 1986, the Office of Underground Storage Tanks
(OUST) promulgated the rule on notification including the
Federal notification form.  This primary goal was accomplished
with considerable input from the Regions and the States.  We
issued a Notification Handbook to explain the process to
States and recently developed a software program tailored
for use in the State notification programs.  This software
program and relevant training were provided to over two-
thirds of the States.  OUST, with Regional support, will
continue assisting the States with notification.  The data
from notification will be used to report to Congress on the
program size and problem and may be used to determine grant
allocations in FY 1988.

In FY 1987, OUST will work with States to identify classes
of non-notifiers.  We will work with the States to analyze
notification data so they can characterize reliably the
regulated universe and to take follow-up action as
necessary.  User groups will be formed to take advantage of
analyses, reports and State uses of the notification data.

State Programs

State grant guidance for FY 1987 will be developed by mid-1986
with an eye towards incentives for States to seek UST program
approval .  Although the grant allocation formula remains the same
for FY 1987, the State match will increase from 5% to 15%.

During FY 1987, OUST will implement and support the FY  1987
State Grant Program with assistance from the Regions and grant
and contract support.  These groups will also develop the State
grant guidance for FY 1988.  The State match will probably
increase again in FY 1988 to 25%.

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                               -43-
The OUST program will be working in close cooperation with
the Regions and the States to ensure program implementability.
We will seek to use a team approach in managing grants and
contracts with the Region acting as task managers wherever
possible.

Headguarters and Regions will begin reviewing State enabling
legislation when it exists and encourage development of
appropriate legislation where needed.  OUST has developed
and distributed for comment a DRAFT Model Enabling Legislation
for use by States.  We will finalize it in mid-1986.

Outreach

We will continue to have an active Outreach program.  Com-
mentary and slide shows describing the requirements of Subtitle
I, the UST program and the UST problem have been provided to
the Regions.  Several hundred thousand UST information pamphlets
and notification forms are being distributed to the States and
Regions.  Extensive outreach efforts are also being coordinated
with the various trade associations, industry groups, States and
environmental groups.  A newsletter is distributed quarterly to
a mailing list of over 1,000 persons.

Interim Prohibition/Enforcement

As a priority, OSWER, in working with the Regions, will
develop grants and cooperative agreements with States to
enforce the notification and interim prohibition requirements.
OSWER will develop a compliance inspection and enforcement
strategy and will also develop guidances for enforcement of
notification and interim prohibition.

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                               -44-
III.  APPENDIX
                      SUPPLEMENTAL GUIDANCE
Document
Estimated
Availability
Enforcement Guidance
     Interim Prohibition
     Notification
State Program Approval Plan
           »,
State Grant Guidance (FY 1987)
September 1986
September 1986

September 1986

June 1986

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Office of
Pesticides
and Toxic Substances

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            OFFICE OF PESTICIDES  AND TOXIC SUBSTANCES
                    PROGRAM  GUIDANCE FOR 1987
I.  INTRODUCTION AND STRATEGY
The 1987 guidance for the  pesticides  and toxic substances
program is the product of  a  very deliberate development process.
The strategy and guidance  are  in accordance with the direction
of EPA management, as expressed  in  the Agency priority list
and the Administrator's  Management  Plan.  The current position
of the pesticides and toxic  substances programs was carefully
considered as were the major thrusts  of the 1987 budget.  The
lead region for pesticides and toxic  substances was a full partner
at all stages of the guidance  development process.

Strategy
The basic authorities for  the  pesticides and toxic substances
programs are the Federal  Insecticide,  Fungicide and Rodenticide
Act and The Toxic Substances Control Act.  These acts are similar
in important respects.  Both acts  recognize the inherent risks
to human health and the environment from pesticides and toxic
chemicals and, at the same  time,  their numerous benefits.  Both
acts also recognize the need to  balance the benefits and risks
of pesticides and toxic chemicals  -- both new products and those
already in the market place.
Historically, in the pesticide  and  toxic chemical programs the
establishment of programs  to  evaluate  the risks and benefits of
new products took precedence  over  the  establishment of programs
to evaluate existing products.   The  result was that new products
were subject to more stringent  standards than chemicals and
pesticides that had been in use  for  many years.
In the past several years  a  great deal of progress has been made
in developing and testing  mechanisms  to review existing products:
the 60,000 toxic chemicals in  commerce when TSCA was passed and
the 40,000 pesticide products  comprised of 600 active ingredients
In the pesticides program, generic chemical review, with its
components of registration standards/  data call-in, and focused

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                              -2-
Special Reviews, has been  proven  to  work.   At the end of 1985
registration standards for  117  pesticide  active ingredients had
been developed and essential  chronic testing data for all food
use chemicals had been called in.   In addition, over 65 pesticides
have been subjected  to Special  Review;  numerous products have
been suspended from  use or  have had  certain uses restricted.


In the toxic substances program a  phased  program to identify,
evaluate and control the risks  of  existing chemicals has been
established.  The program  has screened over 3,000 chemicals.
There are approximately 85  chemicals undergoing detailed inform-
ation gathering and  analysis  at all  times  and risk management
actions have been completed on  12.   These  actions include:  Section
6 rules on PCBs, asbestos,  dioxins,  and chloroflurocarbons; Section
9 referrals to the Occupational Safety and Health Administration
on 1,3-butadiene and 4,4-MDA  for  potential workplace safety
measures; a significant new use rule on hexachloronorbornadine,
and chemical advisories alerting  the public to potential problems
related to used motor oil,  burning  used oil, nitrosamines in
cutting fluids, leaking underground  storage tanks, MBOCA, butyl
benzaldehyde, butyl  benzoic acid,  and butyl toluene.  Risk manage-
ment actions under Section  6  and/or  Section 9 are being developed
for asbestos, methylene chloride,  glycol  ethers, metalworking
fluids, and formaldehyde.   In addition, rulemakings to define
significant new uses for several  other existing chemicals such as
urethane are in progress.
1987 Priorities
The single overriding  priority  of  the 1987 pesticides and toxic
substances programs will be  the emphasis given to existing
chemical programs.  The importance of this emphasis is reflected
by the Agency's having established reduction of risk from
existing pesticides and toxic  substances as its first priority
in 1987.
     In the pesticides  program  in 1987,  the emphasis on existing
chemicals will take several  forms.   Missing data for non-food
use pesticides will be  called in,  the call-in of chronic data
for food use chemicals  having been  completed.  Final Registration
Standards and Tolerance Reassessments will be developed for some

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                              -3-
priority chemicals with  completed  data bases.  Registration
Standards will be developed  for  some pesticides used as inert
ingredients.  The sampling phase of  the pesticides-in-groundwater
survey will continue and  several special groundwater
studies will be initiated.   Finally  we will begin to review and
revise state restricted  use  applicator certification and training
plans to update them to  agree  with current requirements.


     In the toxic substances programs, we will also address
existing chemical problems using a multi-statute approach
in which TSCA may be used to gather  information, for action
under another agency statute,  or to  control the problem.  We
will also expand the category  approach to all aspects of the
program.  We will place  greater  emphasis on using human exposure
as a basis for initiating existing chemical evaluations.  The
unique features of TSCA  will be  used in special efforts aimed at
groundwater contamination and  acute  hazards.

     We will also continue to  emphasize toxic substances enforce-
ment case development work in  the  regions and compliance assistance
to the regulated communities in  order  to improve the efficacy of
TSCA regulations.

     In both the pesticide and toxic substances programs, we
will continue to emphasize the need  for integrity of laboratory
test data.  The laboratory inspection  program was strengthened
in 1986 by centralizing  more functions in the National Enforcement
Investigation Center.

     We will continue to  ensure  that the business of the Agency's
toxics and pesticides programs is  openly, accurately and fairly
conducted.  EPA will use  the Communications Strategy Plan process,
coordinated by the Office of External  Affairs,  to inform the
public and effected groups of  the  regulatory  decisions and actions
we take.

Changes from 1986
     In both the pesticide and  toxic  substances  programs the 1987
guidance is essentially the same  as  the  1986  guidance.   Changes
reflect, principally, 1986 tasks  that will  have  been completed
by 1987, and the natural movement toward  "next steps."

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                              -4-


     In the pesticides program,  the  principal changes include the
movement of the non-food use  data  call-in program in 1987 from
pilot to an operational program,  initiation of a limited program
(in 1986 and 1987) to develop Final  Regiatration Standards and
Tolerance Reassessments for pesticide  chemicals with complete
data bases, evaluation of product  chemistry data called-in in
1986, and the development of  registration standards for at least
one pesticide used as an inert  ingredient.  We also have planned
a pesticides-in-groundwater survey since  the 1986 guidance was
written and will complete a substantial  proportion of the sampling
phase in 1987.  Finally, we plan  to  review and revise State
restricted use pesticide applicator  certification and training
plans in 1987 in order to update  them  with current requirements.

     In the toxic substances  program,  the principal changes are
the greater use of TSCA to support cross  media environmental
problems such as groundwater  contamination and acute hazards,
expansion of the category approach and increased attention to
those chemicals for which there  is evidence of high human exposure

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                               -5-

                 II.  PESTICIDES  1987  GUIDANCE
In 1987, the-Pesticides Program  will  continue to emphasize the
review, through the Generic  Chemical  Review program,  of existing
pesticides.  Existing product  registrations are largely supported
by incomplete data, or data  which  is  inadequate by today's standards
By first obtaining needed high quality data and then evaluating
it and making necessary risk control  decisions, public trust in
EPA pesticide oversight will be  strengthened.

A.  Program Goal;  Protect Health  and the Environment from Any
    Unreasonable Adverse Effects from Pesticides Currently in Use.

The principal programs in this area are Data Call-in, Registration
Standards, and Special Reviews.   The  Data Call-in program, by
which existing pesticides data bases  are updated to meet today's
standards, will shift in 1987  from calling in exposure data to
calling in data for non-food use pesticides and evaluating product
chemistry data called in in  1986.   The 1987 program includes
continued development of Registration Standards, review of studies
submitted in response to data  call-in and earlier registration
standards, and completion of at  least one Final Regulatory Stand-
ard and Tolerance Reassessment (FRSTR).  The 1987 program also
includes Special Reviews of  the  risks and benefits of pesticides
suspected of causing unreasonable  adverse effects on human
health and the environment.  The need for Special Reviews may be
identified during the establishment of a registration standard,
during review of data supporting applications for the registration
of new chemicals, during the revision of existing registrations,
or by referrals from other sources.

1.  Program Objective;  Continue the  review of previously registered
    chemicals currently being  used.

a .  Key Program Activities;

(1)  By the end of 1986, the pesticides program will have completed
     142 Registration Standards.  In  1987, 25 additional Standards
     will be established. (Fewer standards may be established if,
     due to high exposure or indications of potentially unreason-
     able risk, it is found  necessary to increase the number of
     Final Regulatory Standards  and Tolerance Reassessments -
     FRSTRs).

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                              -6-


     Registration Standard reviews will continue  to  be  conducted
     on clusters of similar-use pesticides  (e.g.,  insecticides,
     herbicides, fungicides on given crops)  in priority order of
     their exposure and potential hazard.   By the  end of 1987,
     registration standards will have been  established  for  es-
     sentially all chemicals in 9 of the top 10 clusters.   (HQ)

(2)   We will continue the program begun in  1986 to improve  the
     rate of compliance with registration standard data and
     label requirements.  (HQ)

(3)   A Final Regulatory Standard and Tolerance Reassessment (FRSTR)
     will be developed on at least one high priority chemical,
     beginning in 1986 on a pilot basis and continuing  in  1987.
     FRSTRs are conducted on chemicals where the  data base  has
     been completed, in response to Data Call-in  and Registration
     Standard requirements, and involve the comprehensive  review
     and updating of the regulatory position of the  standard
     and, in the case of food use pesticides, reassessment  of
     tolerances.  (HQ)

(4)   In 1986 we will evaluate a 1985 pilot  project which required
     registrants to identify and fill data  gaps for  non-food use
     chemicals.  Based on the evaluation, we plan  to implement
     the non-food use DCI program in 1987.   (HQ)

(5)   In in 1987, the product chemistry data called in during 1986
     will be evaluated to develop an up-to-date data base
     essential for determining inerts, impurities, and  contami-
     nants  (e.g., dioxin and DDT) of toxicological  concern in
     pesticides.  (HQ)
(6)   Studies generated by Data Call-in and  required  by Registration
     Standards will continue to be reviewed  as  received in 1987 if
     they meet the criteria for early review:

     —  product chemistry and acute toxicity data necessary to
         approve label changes

         tiered test data

         data flagged in accordance with  flagging criteria im-
         posed by EPA or submitted in accordance with the adverse
         effects provision of FIFRA § 6(a)(2) which  requires
         registrants to report information  indicating potential
         adverse effects.

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                              -7-
     —  studies identified during the  establishment of a standard
         as critical to resolving a health or  safety problem.

     The Agency will rigorously enforce  the  6{a)(2)  provision. (HQ)
(7)   The survey to sample pesticides in groundwater,  designed in
     1985 and begun in 1986, will continue  in  1987.   This statisti-
     cally based,  stratified survey for about  four dozen pesticides
     is being supported by both the Office  of  Pesticide  Programs
     and the Office of Drinking Water.  (HQ)
(8)   Work will continue in accordance with  the  National Pesti-
     cide Monitoring Plan (NPMP) to further  develop  a  national
     information clearinghouse on peticide  monitoring  activities
     and to provide guidance to the monitoring  community on
     priority pesticide monitoring needs.
          The regions will conduct training programs  for  State
     personnel as they develop the capability  to  address  the
     problems of groundwater contamination, especially  recog-
     nition and enforcement of use restrictions.   Assistance
     will also be provided to State lead agencies  to  educate
     users on the proper handling of pesticides with  ground-
     water restrictions. The regions will also be  involved  in
     studies of groundwater problems that are  unique  to a parti-
     cular geographic area.  (RGNS)
  2.   Program Objective;  Restrict or ban the use  of  pesticides
      posing unreasonable adverse effects to human health  and
      the environment.

      In approximately 25% of the Registration  Standards estab-
      lished to date,  health problems have been  identified
      requiring the comprehensive evaluation of  pesticide
      risks  and benefits through the Special Review process.
      Candidates for Special Review are also identified  in the
      course of reviewing data supporting applications for the
      registration of  new chemicals or for the  revision  of
      existing registrations, or by referrals from other
      sources.

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                            -8-

     a .   Key Program Activities

(1)   Special Reviews initiated in  1987 will  continue to employ
     revised risk criteria  that more realistically reflect
     actual exposure and hazard.   Opportunity  will be available
     for public participation in the evaluation process.
     Formal hearings are expected  to be  required on proposed
     Agency cancellation/suspension actions  on suspect chemicals
     The regions and state  programs will give  extra attention
     to  enforcing stop sale orders on cancellation/suspension
     actions.   (HQ)

(2)   Where feasible, alternatives  to cancellation for mitigating
     unreasonable risk will be pursued,  such as modifications
     to  the terms and conditions of use,  and improved pesticide
     labeling  (e.g., requirements  for protective clothing and
     equipment, reentry intervals, warnings,  directions for
     emergency treatment, etc.) to reduce risk.  The Agency
     will also promote use  of closed-system  containers, child-
     proof packaging, and safe container disposal practices,
     and will  continue to refine disposal instructions for
     pesticides, pesticide  containers and rinsates, working
     closely with the hazardous waste program.  (HQ)
(3)   Tolerances for cancelled pesticides  will  be  revoked and
     replaced with appropriate action  levels where necessary.
     This is a continuation of a process  which started in
     1985.  (HQ)
(4)   The Special Review process will  continue  to focus on
     review of clusters of similar  use  pesticides such as wood
     preservatives, termiticides, and grain fumigants, when
     appropriate.  We will also begin to  examine the problem of
     stimulating industry innovation  in high-risk classes such
     as fungicides.  (HQ)
(5)   The program will cooperate  closely  with the Toxic
     Substances program on high  priority chemicals where TSCA
     data may be available or TSCA  data  gathering authorities

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                            -9-
      raay be useful.  We will also  continue  a  pilot program,
      begun in 1986, to broaden registration standards for
      active ingredients, which are  also  used  as  inerts,  to
      consider exposure due to inert uses.   (HQ)

3.  Program Objective;  Reduce the  incidence of  pesticide misuse


   a.  Key Program Activities:
 (1)   Encourage the States, which are  the  primary operating
      arm of the national pesticides compliance  monitoring
      effort, to increase the level of  State  pesticide use
      inspections conducted under Federal/State  cooperative
      enforcement agreements, particularly with  regard to
      groundwater contamination, chemigation,  aerial drift,
      the proper use of restricted use  pesticides such as
      wood preservatives and 1080 collars,  enforcement
      against the use of cancelled or  suspended  products,
      and misuse of registered products.   Annual guidance will
      be developed which will indicate  priorities for the
      cooperative agreement program.   Commitments to be in-
      cluded in the cooperative agreements  will  be negotiated
      by the Regions and States with the States  using the
      formal priority-setting mechanism to  establish priorities
      within their own programs. EPA will  also request in-
      formation from the States on their State enforcement
      response policies (HQ/RGNS)

 (2)   State applicator certification and training programs
      will be strengthened through the  review and revision
      of State applicator certification and training plans
      to update them to agree with current  (or new)  require-
      ments and to make them consistent from  state to state.
      We will also continue to develop  and  implement new or
      revised training materials and programs, especially in
      specific areas where such training materials do not
      exist or are inadequate, such as  wood preservatives,
      fumigants and groundwater.  (HQ/RGNS)

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                           -IO-
CS)   Federal oversight will be maintained  in  all  cases to
     assure nationwide consistency in  the  pesticides  compliance
     monitoring program and that timely  and appropriate en-
     forcement action is taken.  (RGNS)

(4)   The Agency will operate Federal compliance monitoring
     and enforcement or certification  and  training  programs
     in instances where States are unwilling  or unable to
     conduct their own programs.   (RGNS)

(5)   Federal case development support  will be maintained for
     referrals of State enforcement actions and in  EPA-
     operated maintenance programs.   (RGNS)

(6)   The Agency seeks to integrate criminal enforcement into
     the overall compliance monitoring/enforcement  programs.
     Accordingly, regions should identify  and refer to the
     Office of Criminal Investigation  (OCI),  cases  or
     incidents that concern knowing/willful violations
     resulting in human death or major environmental  harm,
     that involve egregious repeat offenders,  or  that
     involve data fraud or pesticide misuse.   These cases
     are further limited to those which  occur in  States
     for which EPA has primary enforcement responsibility,
     or which are referrals from States.   Activities  to
     integrate the programs should include cross-referrals
     within the Regions between OCI and  the program
     office.  The regions will also provide technical
     and program support to criminal investigations and
     prosecutions, as necessary.   (RGNS)

(7)   Revisions to the FIFRA and TSCA Enforcement  System
     (FATES) which contains all enforcement data, will be
     continued, withinput from the Regions, to increase
     its efficiency and usefulness.   (HQ/RGNS)

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                                -11-
     (8)  Small business outreach  efforts  will be developed in
          the area of compliance with  FIFRA.   (HQ)

     (9)  We will begin to examine  administrative and statutory
          alternatives to strengthen  the compliance program.
          (HQ/RGNS)

     (10)  We will develop cooperative enforcement and certification
           and training programs with  Indian  Tribes to address
           problems of pesticide use  and misuse.   (HQ/RGNS)

     (11)  EPA will maintain compliance monitoring  programs at
           Federal facilities.   (HQ/RGNS)
4.  Program Objective;  Conduct research  and  develop methodologies
    to support existing pesticide risk  reduction efforts.


     a .  Key Program Activities:
     (1)  The research program will emphasize  the  development
          of methodologies and techniques  needed  to  evaluate
          health and environmental risks associated  with
          existing pesticides.  These  important  tools  are
          critical to both the testing  and regulation  of
          existing pesticides.  (HQ)

     (2)  Models for evaluating environmental  concentrations
          of pesticides and for determining  health risks will
          continue to be developed and  validated.  Hazard
          assessment methodologies which are critical  in risk
          analysis of chemicals will also  be developed.   (HQ)
  B. Program Goal;  Prevent Unreasonable  Risks  Prom  New Pesticide
        Active Ingredients And Products And  Encourage  Use  Of Safer
        Products (New Or Old).

        The Federal Insecticide, Fungicide and  Rodenticide Act
        (FIFRA) and the Federal Food, Drug,  and Cosmetic Act (FFDCA)
        provide for Agency control of the  terms and  conditions

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                              -12-

      under which new pesticides may be  legally  used in the
      United States, through pre-market  reviews  of  their potential
      human and environmental effects.   Registrations permit
      pesticide use under specific  limitations,  and Tolerances
      specify maximuim pesticide residues  permitted on food and
      feed products.  Exceptions may be  made  to  registration
      requirements under the Special Registration program which
      provides for unregistered uses for experimental purposes or
      in emergency situations, and  for registrations by the
      States for special local needs.
1. Program Objective; Provide careful review to  assure that new
   pesticides do not add unreasonably to  total risk.
  a.  Key Program Activities;


   (1)   The program will continue  to be  alert for  applications
        for new chemical or new use registrations  which indicate
        a possible need for intensive  risk/benefit analysis.
        Agency forums such as the  Scientific  Advisory Panel will
        be used to review difficult science  issues.   (HQ)

   (2)   Current monitoring efforts will  be redirected to focus
        more effectively on special problems  such  as groundwater
        contamination, and guidance for  monitoring,  predicting,
        and preventing pesticide contamination of  groundwater will
        be provided to registrants.   (HQ)

   (3)   Methodologies for assessing risks  posed by new products
        of biotechnology will continue to  be  refined in 1987.  (HQ)

   (4)   Problems of pesticide application  such as  aerial spray
        drift and chemigation will be  assessed and appropriate
        regulatory action taken.   (HQ)

   (5)   The safety of farm workers and families will continue to
        be promoted.  Revised Worker Protection Standards to
        encourage safe pesticide use practices will  be the subject
        of regulatory negotiation  and  will be proposed in 1986;
        a final rule will be published in  1987.  (HQ)

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                            -13-
 (6)   In support of the Agency's goal of  pesticide  safety,  the
      program will undertake to expedite  the  availability of
      fundamentally new products to displace  riskier,  older
      products.  (HQ)

 (7)   Integrated Pest Management (IPM)  technology will be en-
      couraged, and where appropriate,  IPM  alternatives will be
      considered in risk/benefit decisionmaking.   (HQ)

 (8)   Improvements in information management  and  automation
      support will continue in 1987, with the goal  of  supporting
      pesticide program decisionmaking  with rapid and  compre-
      hensive access to relevant information,  and more efficient
      processes for creating, storing,  using  and  updating
      important regulatory decisions and  supporting technical
      assessments.  Changes to data base  systems  and content will
      address regional as well as headquarters needs.   These
      improvements will also provide the  public with more
      meaningful information on the properties and  effects  of
      pesticides.  (HQ)

 (9)   Internationally consistent pesticide  tolerances, and
      greater efficiency in the use of  resources  expended in
      tolerance-setting will be sought  through the  Codex
      Alimentarius program of the U.N.  World  Health Organi-
      zation.  (HQ)

(10)   New approaches to the protection  of endangered species
      and other wildlife from pesticide hazards will be de-
      veloped.  One approach under consideration  would rely
      on generic labeling and the use of  bulletins  distributed
      by field operations of USDA and Interior Department
      agencies.  The bulletins would provide  detailed  in-
      struction on the conditions under which pesticides are
      prohibited as a result of concern for endangered
      species.  The pesticide program will  also continue to
      work to develop requirements for  ecological monitoring
      by registrants.  (HQ)

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                              -14-
  (11)  Experimental use permits,  emergency exemptions and special
        local need registrations  issued  under  Sections 5,  18 and
        24(c) of FIFRA respectively,  will  be monitored to  prevent
        unwarranted circumvention  of  Section 3 registration
        requirements.  (HQ/RGNS)
2. Program Objective: Insure the  integrity  of  data submitted to
   EPA .

   a.  Key Program Activities;
    (1)  The Agency will perform both  full-scale audits of a sample
         of completed test studies  that  have  been submitted to EPA
         and in-process audits of  studies  being  conducted.  (HQ)

    (2)  Ensuring compliance with  Good Laboratory Practice (GLP)
         requirements is a high priority for  the Agency.  In
         cooperation with FDA, Regions II,  III  and V will perform
         GLP inspections at at testing facilities.  Headquarters
         (NEIC) will perform GLP inspections  in  other regions.
         (HQ/RGNS)

    (3)  We will implement the mandatory Agency-wide Quality
         Assurance (QA) program which  ensures that all envrion-
         mental measurements are of known  and documented quality
         and meet the requirements  established  by the responsi-
         ble office or laboratory.   Each program office, region,
         and EPA laboratory must maintain  QA  programs consisting
         of a QA program plan and  appropriate updates, Data
         Quality Objectives (DQO's)  for  specific environmental
         data-generative activities, and QA Project Plans for
         all monitoring projects;  and  must provide for periodic
         audits to assess compliance with  approved QA plans.

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                             -15-

III.  TOXIC SUBSTANCES  1987  GUIDANCE
     The 1987 Toxic Substances  program will continue the
emphasis on assessment and  control  of existing chemical problems.
While progress is being  made  in reducing risks from existing
chemicals, it is still clear  we must continue to seek new ways
to improve the effectiveness  of the existing chemicals program.

     The emphasis we are  placing on existing chemicals does not
minimize the importance  of  TSCA's new chemical programs.  We
will continue to meet the demands placed on us by industry's
introduction of new chemical  products and to deal with the
emerging new chemical programs  such as biotechnology.

A.  PROGRAM GOAL;  Reduce Significant Risks from Existing
    Chemicals.

    (NOTE:  Because of the  complexity and public interest in
    the asbestos problem, we  have established a. program goal
    for asbestos, separate  from the existing chemical program
    goa Is . )
     The 1987 program continues  the  emphasis  on the category
approach to existing chemical  evaluation and  management.  We
will also place greater emphasis  on  using broad-based exposure
for determining program priorities.   The Agency will address
existing chemical problems  using  a multi-statute approach for
which TSCA may be the key information gathering and analysis
tool.  Under this approach,  we anticipate that TSCA information
gathering features will be  called upon increasingly, especially
for special efforts such as  groundwater and  air toxics.

1.  Program Objective:  Identify  and evaluate the potential
    risks of suspect existing  chemicals.
    (1)  In 1987 we will continue  our  efforts  to evaluate
         chemical categories  and begin to  develop category
         chemical testing and  chemical control rules.  When
         taking action on a new chemical,  we  will also consider
         the need to take some action  on existing chemicals in
         the same structural  category.  (HQ)

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                         -16-
(2)  The National Human Monitoring  Program (NHMP) will be
     continued with emphasis  on  the identification of
     chemicals which are  found in human tissue and fluids
     and thus are direct  evidence of broad human exposure.
     NHMP data will be used  to identify candidates for
     Section 4 test rules, to develop baseline/trend data
     necessary to support regional  and State evaluation of
     local concerns, to set  priorities for existing chemicals
     which warrent regulation under Section 6 of TSCA or
     other statutes, and  to  monitor environmental results.
     We will continue efforts to make this data available
     to other EPA headquarters and  regional offices.  (HQ/RG)
(3)  Section 8(a) and Section  21  will continue to be used
     as important chemical  screening  tools that allow
     public input to our  risk  identification process;
     Section 8(a), 8(c),  and 8(d)  will continue to be used
     to obtain current production,  use and hazard data on
     chemicals that are under  review.  We will continue
     efforts to finalize  the Section  8(a) Comprehensive
     Assessment Information Rule  that will facilitate
     information gathering  for all Agency programs.  (HQ).
Program Objective:  Initiate  and  promulgate regulatory
actions under TSCA to reduce  risks  to human health and the
environment'from existing  chemicals.
    Key Program Activities;
    (1)  The Agency will  address  existing chemical problems
         using a multi-statute  approach.   We will continue
         to use Section 6 and  9 authorities to deal with
         existing chemical problems  when  they are the most
         effective authority  to deal with the problem.
         Section 9 of TSCA will be  used to refer chemical
         problems to other regulatory authorities.  Section
         6 will be used where  other  agency statutes and
         other EPA statutes do  not  provide appropriate
         risk management  options.  (HQ)

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                            -17-
        (2)  The significant new  use  provisions  of Section 5
             will be used to track  the  future  commercial develop-
             ment of suspect existing chemicals  that,  based on
             current production and use  information,  do not
             present an unreasonable  risk  to  society.   (HQ)

3.  Program Objective;  Utilize TSCA's  unique  features to
    approach cross-media problems in  an  integrated manner.
    (1)   In 1987, we will continue  to  place  a  strong  emphasis
         on working jointly with other  program offices and
         other agencies to develop  and  implement coordinated
         regulatory and enforcement strategies on priority
         cross-media chemical problems.   (HQ/RGNS)

    (2)   We will continue to educate other EPA offices as to
         the features of TSCA that  permit cross-media integrated
         approaches to problems.   (HQ)

    (3)   Work will continue at the  headquarters,  regional, and
         state level to exchange TSCA  information on  risk
         assessment and regulatory  activities.  (HQ/RGNS)

    (4)   We will continue to refine and  update the acutely toxic
         chemical list and chemical profiles.   Changes to
         criteria for including chemicals on the  list will be
         considered and studies may be  undertaken of  means to
         improve plant safety.  (HQ)

         The Regions will serve as  contact points for questions
         from the public, States and communities  about the
         chemical list and profiles.   (RGNS)

    (5)   We will support the groundwater initiatives  through
         the use of available screening  tools  (e.g.,  DRASTIC
         Index,  exposure assessment models)  to predict areas
         which are vulnerable to groundwater contamination.   We
         will also use these tools  to  establish data  collection
         priorities for areas most  likely to be contaminated.
         The information collection provisions of TSCA may be
         used to obtain data on groundwater  contamination by
         volatile organic chemicals  (VOC's), fertilizers, and
         waste discharged from septic  tanks.   (HQ)

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                            -18-

4.  Program Objective;  Conduct research  and  develop methodologies
    to support existing chemicals  risk  reduction efforts.
         Key Program Activities;
    (1)  The research program will  emphasize  the development
         of methodologies and techniques  needed to evaluate
         health and environmental risks associated with existing
         chemicals.  These important  tools  are  critical to
         both the testing and regulation  of existing chemicals.
         (HQ)
    (2)  Short-term testing will be  conducted to fill critical
         data gaps for regulatory  decision-making on important
         chemical classes.  (HQ)
    (3)  We will continue to  develop  assessment methodologies
         based upon structural  characteristics  and physical-
         chemical properties.   These  will  be  used to screen
         classes or categories  of  both  new and  existing chemicals
         for potential risks  and  to prioritize  chemicals within
         a category.   (HQ)
    (4)  Models for evaluating  environmental concentrations of
         chemicals and for determining  health risks are being
         developed and validated.   We will  continue to develop
         models to define exposure  pathways for toxic chemicals
         along with methods  to  extrapolate  data from animals
         to humans; and models  and  methodologies for predicting
         quantitatively the  toxic activity  of chemicals.  (HQ)
    (5)  Finally, data and models  will  be  developed to predict
         the release of and exposure  to new and existing chemicals
         via research in environmental  engineering and technology.
         (HQ)

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                        -19-

Program obj ective:  Continue  to  strengthen State capacity
to deal with existing  chemical programs.
a .   Key Program Activities:
(1)  The revised 1986 resource  and  activity level for the
     State cooperative agreement  program will be continued
     in 1987.   (HQ/RGNS)

(2)  Confidential business  information  concerns preclude
     the States from participating  in  the enforcement of
     certain sections of TSCA.  Thusr  the States will
     continue to limit their  responsibility to conducting
     compliance monitoring  programs for TSCA Sections 6
     only.  (RGNS)


(3)  The Office of Enforcement  and  Compliance Monitoring
     will support OPTS efforts  to strengthen State part-
     icipation in existing  chemical programs by reviewing
     current State toxic substances laws and developing
     model State legislation.   (HQ)
Program Obj ec tive;   Improve compliance  with all toxic
substances regulations.
a.  Key Program Activities;
    (1)  Because of confidential  business  information concerns
         the Agency will continue to  have  the  responsibility
         to conduct Federal compliance  monitoring programs
         for TSCA sections 5,  8,  12,  and  13.   (RGNS)
    (2)  Hazard assessment and  information collection in-
         spections under TSCA section  5  and 8  will be
         conducted by regions II,  III, V,  and  headquarters
         (NEIC) for other regions.   (HQ/RGNS)

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                        -20-

(3)   EPA will continue to provide Federal  case  development
     support for all enforcement actions,  including  those
     resulting from State inspection activity  (until the
     enactment of state laws).  Enforcement  and litigation
     priorities will include  laboratory  data cases,  PMN
     cases,  and PCB disposal.  In cases  involving  settlement
     with conditions, the regions will insure  the  conditions
     are met.  (RGNS)

(4)   The Agency seeks to integrate criminal  enforcement into
     the overall compliance monitoring/enforcement programs.
     Accordingly, Regions should identify  and  refer  to the
     Office  of Criminal Investigation  (OCI)  cases  or incidents
     that concern knowing/willful violations resulting in
     human death or major environmental  harm,  that involve
     egregious repeat offenders, or that involve data fraud.
     Activities to integrate  the programs  should include
     cross-referrals within the Regions  between OCI  and the
     program office.  The Regions will also  provide  technical
     and program support to criminal investigations  and
     prosecutions, as necessary.   (HQ/RGNS)
(5)   Compliance assistance will receive  continued attention
     in 1987.,  Compliance assistance  involves  alerting the
     regulated community of EPA regulatory  actions,  and
     providing advice and direct assistance to  industry
     in its efforts to comply with  TSCA  rules.   These
     tasks are particularly important  between the time
     EPA issues a proposed or final rule and the time
     a final  rule becomes effective and enforceable.
     Outreach and interaction before EPA begins
     compliance monitoring for a new rule will  increase
     the capacity of industry to comply  and result in
     more effective use of EPA compliance monitoring
     resources.  (RGNS)
(6)   The regions will continue  to  be  involved in the multi-
     media effort to implement  the  national  air toxic
     strategy.  They will continue  educating the public as
     to the purpose and contents of  the  list of acutely
     toxic chemicals and the potential problems and remedies
     They will also work with state  and  local governments
     as they develop contingency plans and the ability to
     address potential problems.   (RGNS)

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                             -21-

    (7)  The Agency, with  input  from  the Regions,  wil continue
         to revise the FIFRA and TSCA Enforcement System (FATES)
         to increase its efficiency and  usefulness.  (HQ)
    (8)  EPA will continue  to  send  draft compliance strategies
         to the Regional Offices  and,  as necessary, to the
         States, for comment before publication.  (HQ/RGNS)
    (9)  We will continue  to  emphasize  small business
         compliance issues  in developing  TSCA compliance
         monitoring strategies.   (HQ)

   (10)  EPA will conduct  compliance  monitoring programs at
         Federal facilities.   (HQ/RGNS)
B.  PROGRAM GOAL:  Address Hazards  from  Asbestos
    1.  Program Obj ective;   Strengthen  the  asbestos-in-schooIs
        and public and commercial  buildings program.
    a.  Key Program Activities:
    (1)  Technical assistance  activities  will  be continued.
         Activities include  (1) operation of  the toll-free
         number, (2) guidance  to  school officials and public
         and commercial building  owners and  managers, and (3)
         dissemination of information  materials.  The role of
         the regional asbestos coordinators  will continue as
         an integral element of the  technical  assistance program
         as they provide assistance  on both  abatement and
         compliance issues.  (HQ/RGNS)
    (2)  Three regional pilot information  centers  were established
         in 1985 to provide information  concerning the identifi-
         cation and abatement of asbestos  hazards  and to educate

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                        -22-
     and train people in proper asbestos  identification
     and abatement techniques.  Three additional  centers
     may be opened in 1986 or 1987.   (HQ/RGNS)
(3)   The state contractor and consultant  and  certification
     program will be expanded from  28  states  expected at
     the end of 1986 to 36 in 1987.  These  programs help
     ensure adequate training and certification of contrac-
     tors involved in abatement projects.   (HQ/RGNS)
(4)   Compliance with the worker protection  rule  for public
     employees not covered by  the  current OSHA rule will
     be a major priority in 1987 for  both the  regions and
     the contractor.  We also  anticipate that  inspection
     activities will be directed toward compliance with
     the contractor certification  requirements imposed by
     Congress through the ASHAA program, asbestos abatement
     worker training rules to  be proposed by OSHA and EPA,
     and a possible rule requiring  the reinspection of
     schools for asbestos.  Wherever  TSCA enforcement coop-
     erative agreements are in place  the States  will conduct
     compliance monitoring inspections in support of the
     asbestos worker protection rule.   (RGNS)
(5)   The Agency will move toward  promulgation of the Section
     6 rule to ban certain asbestos  products  and to phase
     out the use of asbestos in all  other  products.  (HQ)
(6)   We will continue to refine  guidelines  to assist the
     public in identifying  those  situations  in which asbestos
     containing materials present a  serious  risk.  (HQ)
(7)  Field studies to examine  the  efficacy of various
     asbestos abatement technologies,  and  the feasibility
     of air monitoring before,  during,  and after abatement
     will continue in 1987.  Because of the insidious
     environmental characteristics  of  asbestos,  control
     technologies must be thoroughly investigated prior to
     public recommendation or  endorsement  by EPA.  (HQ)

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                              -23-

    (8)  In 1986, we  intend  to  develop a case study of an
         exemplary private asbestos  abatement effort; the study
         will be disseminated in 1987.  We will also conduct a
         survey of the  manner in which public building owners,
         in general,  are  addressing  asbestos problems.  This
         will help us tailor  our technical assistance programs.
         (HQ)
C.  PROGRAM GOAL;  Prevent  Risks  From New Chemical Substances
    And Significant New  Uses  Of  Existing  Chemical Substances
     In 1987, our emphasis  in  the  new chemicals program will be
on continuing to operate a  careful but efficient premanufacture
review program that is responsive  to  the  workload demands
generated by industry's submission of notices.   There will
be increased attention to close  coordination of reviews and
actions with other programs  to ensure that decisions are
consistent across the Agency and that future environmental
problems (e.g., air, water,  or disposal)  are effectively pre-
vented.  Close coordination  with the  existing chemical program
will be an integral part of  all  new chemical decisions.
    Program Objective;  Subject  all  new  chemicals to a meaningful
    review, taking action on  those  that  pose  an unreasonable
    r isk .
a .   Key Program Activities;
    (1)  EPA will conduct reviews on  all  new chemical notices
         within the respective statutory  deadline,  including
         any notices for biotechnology  products  that fall
         under TSCA's purview.  The emphasis in  these reviews
         is on early identification of  data  gaps and concerns
         so that resources can be directed toward the review
         of the most hazardous new chemicals.   (HQ)

    (2)  We will take action on new chemicals  which  present
         unreasonable risks.  The provisions of  Section 5(e)
         will be used to induce data  development and,  when

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                            -24-

         necessary, to control exposure.   Section 5(f) will be
         used when it is necessary  to  control those chemicals
         that pose an unreasonable  risk.   (HQ)
    (3)  Close coordination with  other  EPA programs will be a
         priority, particularly to  prevent groundwater problems
         and to identify new chemicals  that meet the Agency's
         acute hazards criteria.
    (4)  A scientific study  to  determine  the effectiveness of
         structure activity  relationship  (SAR)  as a hazard
         indicator will be continued.   The  SAR  technique is
         used in the majority of  PMN  reviews.  The study will
         select a sample of  past  new  chemical decisions using
         SAR; test those chemicals; and determine if the decision
         would be the same if actual  data had been used instead
         of the SAR technique.   (HQ)
2.  Program Objective;  Protect  society against risks which may
    develop as new chemicals are  commercialized.
a .   Key Program Activities:
    (1)  EPA will continue  to  issue  chemical-specific significant
         new use rules, when warranted,  to  require notification
         of EPA if the chemical  is  to  be used in a different
         manner than described in  the  PMN.   (HQ)
    (2)  We will pursue development of  more efficient regulatory
         approaches, including  category rules,  to the follow-up
         of new chemicals.   (HQ)
    Program Objective:   Insure  integrity of data submitted to
    FPA.
a.  Key Program Activities;
    (1)  We will perform  full-scale  audits of completed test
         studies that have been  submitted to the Agency and
         in-process audits that  are  being conducted.  (HQ)

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                        -25-
(2)   Ensuring compliance with Good Laboratory Practices
     (GLP)  requirements is a high priority  for the  Agency.
     In coordination with FDA, Regions  II,  III,  and V will
     perform (GLP) inspections at testing facilities.
     Headquarters (NEIC) will perform inspections  in other
     regions.  (HQ/RGNS)
(3)   We will implement the mandatory Agency-Wide  Quality
     Assurance (QA) program which ensures  that  all  environ-
     mental measurements are of known  and  documented  quality
     and meet the requirements established by  the responsible
     office or laboratory.  Each program office,  region,
     and EPA laboratory must mtainin QA programs  consisting
     of a QA program plan and appropriate  updates,  Data
     Quality Objectives (DQO's) for specific environmental
     data-generative activities, and QA Project Plans for
     all monitoring projects; and must provide  for  periodic
     audits to assess compliance with  approved  QA plans.
     (HQ/RGNS)

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Office of
External Affairs
                                               Q)

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                    OFFICE OF EXTFPNAL AFFAIRS
T.  INTRODUCTION
The Office of External  Affairs (OEA) was established with the
very clear mandate to provide the Agency with the expertise
necessary to inform the American public, the Congress, the media
and the regulated community on the issues we address and the
decisions we make.  Only by ensuring that the business of the
Agency is openly, accurately and fairly conducted, can the trust
and integrity of EPA be established in the minds of the public.

OEA communicates with external groups using a comprehensive and
coordinated process.  The key element of this process is an
Agency document which outlines EPA's communications strategy - a
Communications Strategy Plan.  OEA, affected programs, regional
components, and the Administrator's staff establish the frame-
work for announcement of a given agency action through the
Communications Strategy Plan.

Regions will continue to inform the public through active
participation in the Communications Strategy Process and through
their own outreach efforts.

Within the Office of External Affairs (OEA), the Office of
Federal Activities (OFA) is responsible for establishing effective
liaison and coordination between EPA and other Federal agencies
on environmental issues and for working with those agencies to
assure that they carry  out their activities in an environmentally
sound manner; for assuring that EPA's programs comply with the
goals and requirements  of the National Environmental Policy Act
(NEPA) and related environmental  legislation; for administering
EPA's program under section 404 of the Clean Water Act; and
coordinating the implementation of EPA's Indian Policy of
November 8, 1984.

This guidance presents  national goals and objectives for
the Federal Activities  Programs for FY 1987-88.  The guidance
also identifies the actions that EPA and, where appropriate,
States must take to implement these goals and objectives.  The
guidance consists of three parts.  The first part (I) provides
an overview of Federal  Activities Programs, summarizes the five
major goals which shape the five major programs, and highlights
major changes in emphasis or direction.  The second part (II)
describes program objectives for each goal/program and lists the
specific actions that must be taken to carry out the national
strategy.  This part also identifies general priorities/
directions for FY 1988  which will be used in the formulation of
national program strategies and budget requests.  The third part
(Appendix) details the  specific performance measures that will be
used in tracking our success in addressing FY 87 objectives.

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                               -2-
A.  Overview

In addition to Agency responsibility for communications  activities,
OEA administers five national  programs which contribute  toward
accomplishment of the fundamental  EPA mission and its  major
goals:

     1.  Federal  Facilities Compliance Program.  Goal:   Ensure
     the Federal  Government shows  leadership in environmental
     control practices through Federal facility compliance with
     air, water,  toxic,  and hazardous waste requirements.

     2.  Environmental Review  Program.  Goal:  Prevent  future
     environmental  problems from major Federal  projects  and
     activities by providing effective EPA input through par-
     ticipation and review in  accordance with the provisions of
     section 309  of the  Clean  Air  Act and of the National
     Environmental  Policy Act  (NEPA).

     3.  Dredge and Fill  Program.   Goal:  Reduce the loss  or
     degradation  of wetlands through vigorous implementation of
     EPA authorities under section 404 of the Clean Water  Act.

     4.  NEPA Compliance  Program.   Goal:  Protect and  enhance
     environmental  quality through ensuring EPA compliance with the
     goals and/or requirements of  the National  Environmental
     Policy Act (NEPA) and related laws and directives.

     5.  Indian Program.   Goal:   Ensure environmental  protection
     on American  Indian  reservations through implementation of
     EPA's authorities and programs.

Each of the OFA programs  managed by OFA, supports more  than one
of the points in  the Administrator's Management Plan.   Because
of their multimedia and  crosscutting nature, these programs are
implemented in close coordination  with the media programs  at
both Headquarters and Regional levels, and help address  many of
the subjects on the FY 1987 Agency Priority List.

Collectively, these programs cut across all environmental  media
and consider a broad range of  impacts on environmental  values
and natural resources, as well as  public health.  In this  regard,
OFA's program goals and  objectives serve both as independent
goals for focusing Federal Activities resources and as  key
elements in supporting the goals of the major media programs.
For example, the  Federal  Facilities Compliance and Indian
Programs both address such Agency  priorities as compliance with
air quality standards, groundwater protection, and hazardous
waste site clean-up, where these are significant issues  with
respect to Federal  Facilities  or Indian lands.  For these  two
programs, most of the resources  and implementation responsibilities
are in the media  programs, with  Federal Activities personnel
playing a key coordinating and catalytic role.

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                               -3-
Federal Activities functions also serve as EPA's primary focal
point for working with other Federal  agencies to ensure that they
carry out their project-related activities in an environmentally
sound manner.  The Environmental  Review Program provides EPA with
a unique opportunity to anticipate and prevent future environmental
problems associated with Federal  actions, by affording the opportunity
to influence decisions, often where it is too early in the planning
cycle for direct application of EPA regulatory authorities.
EPA's NEPA Compliance Program plays a similar role internally by
encouraging consideration of the  full range of environmental
impacts in EPA's project and regulatory planning.   By focusing on
the full range of potential  environmental impacts  in evaluating
Agency actions, such as the award of  sewage treatment construction
grants and issuance of new source NPDFS permits, EPA can assure
that environmental effects can be identified and minimized.

The Federal Activities programs serve a key role in reducing
damage to sensitive environmental areas.   This is  achieved not
only through direct program responsibilities for wetlands protection
under section 404 of the Clean Water  Act, but also in helping to
protect other sensitive areas like near coastal  waters through
other programmatic responsibilities,  particularly  the Environmental
Review and NEPA Compliance programs.

B.  Changes in Program Direction

With the exception of NEPA Compliance, which has been modified to
reflect the current status of Clean Water Act reauthorization and
the Construction Grants Program,  the  FY 19P7 Guidance represents
no major change in direction from the current Guidance.  Rather,
the new Guidance reflects incremental changes in emphasis or
approach which track the continuing evolution of these programs.

With regard to the measures  and commitments, changes have been
made to clarify and simplify the  process, reflecting two years
experience with reporting measures and one cycle of commitment
negotiation.

C.  Supplemental Guidance

OFA plans to issue no comprehensive supplemental guidance in FY
K7.  Program-specific supplemental guidance, where planned, is
listed in the appendix.  All significant  supplemental program
guidance is issued as part of the OFA Policy and Procedures Manual.

II.  GUIDANCE

     1.  MAJOR PROGRAM GOAL:  FNSURF  THE  FEDERAL GOVERNMENT
         DEMONSTRATES LEADERSHIP  IN ENVIRONMENTAL  CONTROL
         PRACTICES THROUGH FEDERAL FACILITY COMPLIANCE WITH
         AIR, WATER, TOXIC AND HAZARDOUS  WASTE REQUIREMENTS.

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                               -4-


     FY  1Q87  Guidance

     a.   The  Federal  Facilities  Compliance  Program  is  designed  to
         bring  Federal  facilities  into  compliance with  environmental
         laws and  regulations  in  the  most  cost-effective  and
         timely manner  possible.   During  FY  1986 the  framework  for
         a  strengthened program  to  return  Federal facilities  to
         compliance  and prevent  future  non-compliance  was  further
         developed and  implemented.   This  was  done,  in  part,  in
         response  to the Administrator's  call  to make  Federal
         facilities  "a  model  for  compliance".   Key  actions  include:
         efforts to  obtain  accurate  data  on  the compliance  status
         of Federal  facilities  to  aid in  targeting  corrective
         programs; improved  Federal  and State  procedures  for
         resolution  of  compliance  problems;  strengthened  State
         participation  in review  of  agency  pollution  control
         plans  under OMB Circular  A-106;  strengthened  communication
         and  technical  assistance  to  Federal  agencies;  and  assistance
         in development of  Federal  agency  environmental  auditing
         programs.

         Of particular  significance  is  development  of  two  impor-
         tant guidance  documents  relating  to  Federal  facilities
         compliance.  The first  is  revision  of the  Federal  Facilities
         Compliance  Strategy  ("the  Yellow  Rook") in  conjunction
         with OECM,  the media  programs  and  EPA Regions.     The
         second is the  Joint  OFA/OSWER  Strategy for  Federal
         CERCLA Problems which  will  clarify  interactions  between
         FPA  and other  Federal  agencies and  accelerate  attention
         to this issue. £/   Many  of  these  efforts will  continue in
         FY 1987.   In  addition,  reauthorization of  RCRA  has
         established numerous  new  requirements which  call  for  an
         expanded  Federal Facilities  Compliance effort.   OFA  will
         continue  to work with  OECM  and the  Media Enforcement
         Offices to  improve  the  existing  Compliance  Agreement
         Process.

         During FY 1986, OFA  is  working with  the OECM  Steering
         Committee on  the State-Federal Enforcement  Relationship
         to clarify  guidance  on  the  State  role in assuring  Federal
         compliance; this will  be  reflected  in the  revised  Federal
         Facilities  Compliance  Strategy.

         In managing the Federal  Facilities  Compliance  Program, OFA
         and  the Regional Federal  Facilities  Coordinators  will  work
         closely with  the media  program offices.  A  major  OFA  program
         objective is  to assure  that  the  program priorities  and
         objectives  established  by  the  various media  programs  are
         met  by Federal facilities.
2_/  Note:   Although this document  has  been  completed,  its  imple-
mentation/modification must await  clarification  of  changes in
Federal  facilities requirements  in the pending  Superfund
reauthori zation.

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                          -5-
    During FY 86 and FY 87,  OFA will  be working with certain
    Headquarters compliance  program offices  on selected special
    initiatives to help improve the overall  quality of the
    Federal  facilities compliance program and increase
    compliance rates among Federal  facilities.  Resource
    limitations may preclude some Regions from fully addres-
    sing all  the key program activities in this guidance.
    Where that is the case and it becomes necessary to
    establish priorities for regional  effort, Regions should
    be guided by two principles.  First, it  is critical to
    the integrity of the FFC Program  that all of the key
    program  activities, be addressed  even if less than
    fully.  Second, Regions  should  determine relative prior-
    ities for emphasis within these key program activities
    based upon: (1) the FY 1987 Agency Priority List; and  (2)
    the relative contributions of the  regional media program
    units to  the objectives  of the  Federal Facilities Compliance
    Program.

b.   Key Program Activities

    (1)  Increase technical  assistance to Federal facilities.
    Executive Order 12088 requires  EPA to provide "technical
    assistance and advice" to other Federal  agencies "in
    order to  ensure their cost-effective and timely compli-
    ance" with environmental laws.   Because  of inherent
    delays in the Federal program and  budgeting system,
    installation managers must quickly plan  for new environ-
    mental controls, or they will be  unable  to budget,
    design and contract facilities  rapidly enough to get
    into compliance.  Because of CERCLA policies and the
    many new  requirements established  by the RCRA
    reauthorization, requests for assistance will increase
    greatly.   Special seminars and  workshops should be
    planned  for Federal Facility Environmental personnel in
    FY 87 to  transmit such information.  At  least one multimedia
    workshop  should be held  for Federal facility environmental
    personnel in each Region.  In addition,  Federal Facility
    Coordinators should hold periodic  (monthly/bi-monthly)
    meetings  with Federal Agency Regional Environmental
    personnel to disseminate information on  new developments
    and regulatory requirements.  In  FY 87 EPA personnel
    must become more familiar with  the significant Federal
    facilities in their Region in order to provide advice
    and guidance.  Federal Facility Coordinators accompanied
    by appropriate media program personnel should make
    periodic  coordination visits to significant Federal
    facilities to provide program assistance.  OFA will
    develop  a consolidated multimedia  training manual for
    dissemination to Federal facilities in each Region.

    (2)  Increase the quantity and  quality of inspections
    at Federal facilities.  Federal Facility Coordinators

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                               -6-
         are  responsible  for  coordinating  a  comprehensive  Regional
         Federal  Facility  Inspection  Program.   Compliance  inspections
         at  Federal  facilities  are  the  responsibility  of the
         media  program  offices  and  are  conducted  by  regional
         media  and  State  personnel.   Federal  Facility  Coordinators
         must meet  with the media program  offices  at the beginning
         of  each  fiscal year  to review  Region  and  State  inspection
         plans  to ensure  Federal  facilities  are being  inspected
         according  to  required  program  frequencies.  Effective
         compliance  monitoring  systems  are an  essential  first
         element  in  improving Federal facilities  compliance.
         Compliance  status will  be  verified  regularly  by on-site
         inspections  and/or reviews  of  self-monitoring reports.
         Results  of  inspections conducted  by  EPA  or  State  agencies
         must be  provided  to  the  Regional  Federal  Facility  Coordinator
         in  a timely  manner through  negotiation with each  State  in
         the  enforcement  agreements.

         In  FY  87,  emphasis will  be  placed on  obtaining  valid
         compliance  data  nationally  at  a statistically signifi-
         cant number  of facilities  belonging  to each Federal
         agency.  With  better information  on  patterns  of compli-
         ance,  future  inspection  programs  at  Federal facilities
         can  be better  focused  and  more productive.  More  specific
         guidance on  this  subject will  be  furnished  at a later  date.

         Federal  Facility  Coordinators  should  work with  program
         offices  to  ensure that all  major  Federal  facilities  are
         receiving  the  required EPA  or  State  annual  inspection.
         Inspections  will  be  performed  at  major sources  of  pollu-
         tants  at least once  a  year.  Significant  minor  sources*
         should be  monitored  through  inspections,  at least  once
         every  two  years.   (The 1984  RCRA  Amendments require
         Annual inspections for all  Federal  Treatment, Storage
         Disposal (TSD) f aci 1 i t i e~sT.  Other  sources  will be
         monitored  through the  review of self-monitoring
         reports  and  through  inspections when  a violation  is
         suspected.   In FY 87,  Regional  Federal Facility Coor-
         dinators in  cooperation  with each pogram office,  will
         review media  program lists  of  majors  and  minors to
         ensure that  all  Federal  facilities  are properly
         classified.   (PCB compliance monitoring  inspections
         will be  conducted as necessary to monitor compliance
         schedules  described  in Federal  facility  compliance
         agreements  and to otherwise  address  PCB  compliance
         within the  Federal sector).  Sufficient  inspections  of
         minor  facilities  will  be  conducted  to provide the  com-
         pliance  picture  at individual  Federal  agencies  described
         above.  Whenever possible,  inspections will be  multimedia
* Significant minor Federal  facilities  do  not  meet  criteria as  major,
but are designated by their  Regional  Federal  facilities  coordinator
(working cooperatively with  media  program  representatives)  because
the facility has unique characteristics and/or it  produces  parti-
cularly hazardous pollutants,  and/or  it has  chronic compliance
problems.  Limited to no more  than 10%  of  minor facilities.

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                      -7-
in nature since these can be both more effective and
more efficient uses of EPA resources.  In FY 87
Federal Facility Coordinators will develop a named
list of up to 10 Federal  facilities per Region (based
upon size, complexity or unique environmental problems)
as candidates to receive multi-media inspections.  In
delegated States, Federal Facility Coordinators will
work with program offices to ensure they receive
the same percentage of oversight inspections for
Federal facilities as is  done for other sources.
To the extent possible Federal  Facility Coordinators
are encouraged to accompany program office inspectors
on oversight inspections.

(3)  Improve State/Federal relationships as they impact
on Federal facility compliance.  Executive Order 12088
requires, with the exception of National Interest waivers,
that Federal facilities comply  with all Federal, State
and local pollution control laws.  EPA is responsible
for acting as liaison between Federal agencies and State
and local governments to ensure that Federal facilities
act in good faith to resolve compliance issues promptly.
In FY 87, EPA will take a number of specific actions to
improve the role of the States  in the Federal facility
compliance process.

States should be encouraged to  designate counterparts
to the Federal Facilities Coordinator as part of a joint
effort to improve compliance.  In FY 1987 an effort
should be made in State/EPA Enforcement agreements to
request States to identify these counterparts where
mutually agreeable between the  Regions and the States.
In addition, FPA must initiate  actions through the
State/EPA agreement to ensure that States:  (1) inspect
Federal facilities in accordance with this guidance,
and (2) report the results of their inspection and
enforcement actions to EPA in an accurate and timely
manner as agreed to in the enforcement agreements between
Regions and each of their respective States.  In addition,
at least one meeting will be held annually with the
States in each Region to  identify and discuss compliance
problems at Federal facilities  and action to be taken to
address them.

Even in States which have been  fully delegated for media
programs, EPA has a responsibility for tracking compli-
ance actions and compliance status of Federal facilities.

(A)  Increase emphasis on returning Federal  facilities
to compliance in a timely manner.  EPA responses to

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                     -8-
Federal  facility violations  will  follow the "timely and
appropriate" guidance established by the individual
media programs.  Media-specific guidance will  govern
the type of initial  response as well as the timeframes
for the  response.  Notices  of Violation (NOVs) or
their program equivalent generally will be issued as
E P A ' s initial written response for significant violations.
In all  cases, EPA (normally  the Federal Facility
Coordinator) should  make every attempt to informally
notify  the Federal  facility  (i.e., telephone call) as
soon  as  possible after the  inspection is completed and
a violation has been identified and before the written
notification is issued.  This will provide the Federal
facility with some  additional time to remedy the
identified violation prior  to receiving formal
notification from EPA.

When  the violation  will take longer to correct than
the specified target date,  EPA generally will  use the
Federal  Facility Compliance  Agreement as the primary
enforcement tool to  formalize mutual agreements on
what  the Federal facility will do to attain compliance
for specific violations.  Regional Federal Facilities
Coordinators are responsible for coordinating  the
negotiation of these agreements with Federal agencies,
in cooperation with  media program representatives.

In FY 87, emphasis  will be  placed on rapid negotiation
of compliance agreements in  line with each of  the media
programs "timely and appropriate" guidelines.   When
agreements cannot be negotiated within these time-
frames,  formal administrative action may be taken.  If
additional delays occur, Regional Federal Facilities
Coordinators will bring this to the attention  of the
next  higher management level of the Agency concerned,
as well  as to OFA,  using the escalation process estab-
lished  by Executive  Order 12088.

(5)  Improve Qualitative Level of Fiscal Plan  Review
under OMB Circular  A-106.  EPA must evaluate the updates
of Agency pollution  control  plans for technical, cost,
and timing adequacy  and submit an annual report to OMB
hy September.  Regions should utilize this review as an

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                       -9-
integral part of their compliance effort.  Regional
Federal Facilities Coordinators are responsible for
coordinating the review, in cooperation with the media
programs.  In FY 87 EPA Regions will  initiate actions
to improve the role of States in the  A-106 Review
process.  This should include communications or meetings
as appropriate with States to compare A-106 submissions
to any State determinations of non-compliance or enforce-
ment actions against Federal  facilities.

Review of projects in the A-106 plan  is an on-going
process throughout the year and should include visits
to priority projects to provide technical assistance
and to review progress.  When appropriate, EPA represen-
tatives should participate in a pre-design meeting for
input in the beginning of project development.

In FY 87 Federal agencies will be encouraged to use  the
A-106 process to report non-point source (NPS) pollution
abatement projects and other  selected program priority
areas.

(6)  Stimulate Federal Agency progress in identifying,
assessing, and cleaning-up abandoned  hazardous waste
sites (CERCLA).  Federal Agency implementation of EPA's
CERCLA strategy will greatly  increase EPA involvement
with Federal  agency CERCLA sites.

During FY 87 EPA will continue to assure that
potentially hazardous waste sites are identified
and properly evaluated and, when appropriate, placed
upon the National  Priorities  List.  Utilizing the E.O.
12088 and the A-106 process,  EPA will  review and approve
Federal agency plans for site cleanup, including an
assessment of the appropriateness of  their remedial
actions.  In addition, EPA will continue to support  HoD
in its Installation Restoration Program.  The new Federal
Facilities Program Manual for Implementing CERCLA
Responsibilities of Federal Agencies  provides
detailed guidance in this area.

(7)  Increase assistance to Federal  Facilities to pre-
vent them from falling into non-compliance with RCRA.
RCRA reauthorization has added a large number of
additional responsibilities to those  of EPA and other

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                              -10-
    agencies.   These include regulating  underground  storage
    tanks,  establishing minimum technical  standards,  greatly
    expanding  the list  of  generators  who must  comply,
    mandating  annual inspections at  Federal  facilities,
    and biennial  updating  of an inventory  of hazardous
    wastes  by  each Federal  agency.

    (8)  Emphasize development  and  implementation  of
    environmental auditing  programs  by  Federal  agencies.
    During  FY  1987,  EPA developed a  policy to  encourage
    environmental auditing  programs  by  the regulated
    community  including Federal agencies.   During  FY  87,
    OFA will  implement  a strategy to  develop environmental
    auditing  programs at as many Federal agencies  and
    installations as possible.   The  program for self-
    auditing  of PCR's at DoD installations will continue
    to be tracked, and  expanded as  appropriate, to other
    non-DoD agencies.  Headquarters  will continue  to  pro-
    vide substantive support for regional  environmental
    auditing  workshops.

FY 1988 Guidance

    In FY 88  the Federal Facilities  Compliance Program  will
    continue  to emphasize  prevention  through specific
    technical  and program  advice and  assistance.  While
    emphasis  on proper  design and construction of  control
    facilities will  continue, greater emphasis must  be  placed
    on correcting operation and maintenance problems  at
    facilities.

    In FY 88,  Federal agencies  will  have largely completed
    the identification  phase of their CERCLA programs.   EPA
    emphasis  will shift to  reviewing  Federal agency  progress
    in assessing those  sites previously  identified and
    closely reviewing their proposed  remedial  actions.   The
    number  of  sites  on  the  NPL  should be reaching  its  peak
    with a  maximum effort  in support  of  Federal agency
    cleanup programs.

    Federal agency RCRA programs will also he  in midstream.
    Hazardous  waste  conforming  storage  sites will  be  under
    construction.  Many facilities  will  be permitted,  but
    many will  remain in interim status.   Closure of  sources
    of pollution including  surface  impoundments will  require
    close EPA  attention.  Detailed  guidance will be  needed
    to assist  Regional  permit writers in permitting  DoD
    open burning/open detonation sites.   The impact  of  the
    Leaking Underground Storage Tank  (LUST) program  and  the
    number  of  Federal generators being  brought under  RCRA
    will be at its maximum.

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                           -11-
 2.   MAJOR PROGRAM GOAL:  PREVENT FUTURE ENVIRONMENTAL PROBLEMS
     FROM MAJOR FEDERAL PROJECTS AND ACTIVITIES BY PROVIDING
     EFFECTIVE EPA INPUT THROUGH PARTICIPATION AND REVIEW  IN
     ACCORDANCE WITH THE PROVISIONS OF SECTION 309 OF THE  CLEAN
     AIR ACT AND OF THE NATIONAL ENVIRONMENTAL POLICY ACT  (NEPA).


 FY  1987 Guidance

i.    This is the fourth year of a four-year concerted
     effort to streamline and improve the effectiveness of
     EPA's Environmental Review Program (ERP).  At the comple-
     tion of this fourth year a system of policy directives,
     technical and procedural guidance documents, and reporting
     and administrative oversight procedures will be in place.
     In addition, by the end of FY 87, all Regions will
     have made significant progress in re-establishing effec-
     tive ongoing participation in the NEPA processes of
     other Federal agencies.  In FY 88 and beyond, the
     program emphasis will shift from development and imple-
     mentation of management systems to more intensive inter-
     agency activity to increase the effectiveness of that
     participation and the resolution of potential environmen-
     tal problems.

     In FY 85-86 emphasis was placed on implementation and
     refinement of the newly revised ERP procedures.  FY 85
     activity emphasized administrative changes to ensure:
     concentration of review resources on those issues with
     potentially significant impacts; increased early partic-
     ipation in project planning; and intensified follow-up
     with agencies to resolve potentially significant impacts.

     In FY 86 emphasis was placed on development of technical
     guidance to increase the effectiveness of the review  process
     and on Headquarters and Regional liaison with other Federal
     agencies to maximize the agencies' conformance with EPA's
     environmental protection strategies and to improve the overall
     environmental protection aspects of their planning processes.
     The FY 87 Guidance given below emphasizes the more direct
     and long-term environmentally protective actions related to
     increased interagency involvement and de-emphasizes the
     program-building activity of guidance development.  In FY 87
     the emphases will be placed on interagency coordination
     through general liaison to improve relationships and  under-
     standing, early involvement on specific projects to reduce
     environmental problems and conflict at later stages,  and
     follow-up on those projects where problems persist to ensure

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                          -12-
    an environmentally satisfactory  resolution.   For  the  first
    time,  commitments  will  be placed  on  parly  involvement and
    follow-up activities.

b.   Key Program Activities

    (1)  ERP staff at  Headquarters  and  Regional  levels  will
    continue to conduct specific  liaison activities with  Federal
    agencies to ensure that they  are  aware  of  EPA regulatory
    or programmatic policies and  initiatives  dealing  with
    national level environmental  problems.   Federal agencies,
    especially at the  field level,  will  be  encouraged to
    become constructively  involved  in promoting  regulatory
    compliance with and participation in EPA  initiatives
    for the resolution of  these environmental  problems.
    Special emphasis will  be placed  on  Headquarters and
    Regional coordination  of such EPA initiatives as  wetland
    protection, air pollution reduction  in  non-attainment
    areas, non-point source pollution,  and  groundwater  protec-
    tion.   This activity,  in conjunction with  the project
    specific liaison described below, is intended to  ensure
    that the environmentally protective  intent of EPA's
    programmatic goals is  not compromised through the actions
    and projects of other  Federal agencies.

    (2)  ERP reviewers at  both the  Headquarters  and Regional
    levels will focus  their pre-Environmental  Impact  Statement/
    Environmental Assessment (EIS/EA) activities on early
    involvement with those  classes  of Federal  projects  that
    have the potential for  the greatest  environmental impacts.
    For these high priority projects, FPA will seek to  provide
    input  to agencies' project development  processes  to
    ensure consideration of the full  range  of  alternatives
    and appropriate use of  assessment methodologies.   Early
    participation or consultation in  Federal  agency planning
    processes should surface, and lead  to correction  of,
    potential problems at  the earlier stages  of  project
    pianni ng.

    (3)  In setting Region  specific review  priorities and
    goals  for FY 87, reviewers should give  special  consider-
    ation  to projects  with  potential  problems  that  fall
    within the Administrator's five priority  areas.   For
    example, reviewers should:

    a.  Emphasize reviews  of Federal  land management  agencies'
        vegetation and pest management  programs  and other
        agencies' use of registered pesticides in sensitive
        environmental  areas to reduce risks from exposure
        to existing pesticides and  toxic chemicals.

    b.  Carefully review all NEPA analyses  related  to
        siting, relocating, and clean-up of hazardous waste
        sites to insure full consideration  of  long-term,
        cross-media impacts.

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                          -13-
    c.  Carefully review Federal  transportation and energy
        projects (including outer continental  shelf oil  and
        gas activities) to ensure minimum conflict with  air
        standards attainment or maintenance programs.

    d.  Work with the Federal  agencies  to maintain and improve
        water quality with particular efforts  to minimize or
        eliminate non-point source pollution from proposed
        activities.

    e.  Fmphasize reviews of Federal  construction projects
        impacting wetlands and other  sensitive areas to  ensure
        that, first,  these impacts are  avoided and second,
        that unavoidable impacts  are  mitigated in accordance
        with Federal  policy.

    (4)   ERP reviewers at the  headquarters and regional  levels
    will  conduct follow-up liaison on all project reviews where
    EPA  has identified significant environmental problems.
    The  purpose of  follow-up is to explain EPA's concerns
    and  to obtain positive agency responses to EPA's specific
    recommendations.   Where necessary to resolve environmental
    problems, the reviewers will  elevate controversial projects
    to higher EPA management levels.
FY 1988 Guidance

    Tn FY 88,  Headquarters  and  Regional  staff  will  continue
    emphasizing general  interagency liaison,  early  involvement
    on specific major projects  and  follow-up  on  issues  of
    continuing concern.   OFA,  in  cooperation  with  Regional
    reviewers, will  assess  the  overall  review  effectiveness,
    in terms of environmental  results,  and  institute modifica-
    tions to the review  process  to  increase its  effectiveness.

3.  MAJOR PROGRAM GOAL:   REDUCE  THF LOSS OR DEGRADATION
    OF WETLANDS THROUGH  VIGOROUS  IMPLEMENTATION  OF  EPA
    AUTHORITIES UNDER SECTION  404 OF THE CLEAN WATER ACT.
FY 1987 Guidance

a.  Reflecting the high Agency priority  placed  on  protecting
    wetlands,  major efforts  have been  underway  to  focus  and
    strengthen the program.   In view of  the  number of  signif-
    icant 404  initiatives  currently  in progress,  guidance  to
    supplement the Operating Year Guidance is  to  be issued in
    1986 in a  document entitled "Strategy  for  Wetlands
    Protection under Section 404."

    Key program objectives are to:   (1)  establish  consistent
    and effective national policies  as a basis  for application

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                      -14-
of section 404 authorities;  (2)  assure wetlands  protection
through participation in permit  review and  enforcement,
while moving towards a more  focused  anticipatory program;
(3) assist the States in strengthening their  wetlands
protection programs, and help increase public understanding
of and involvement in wetlands  issues; (4)  improve  wetlands
protection through cooperation  with  other Federal  and  EPA
programs; and (5) strengthen the scientific and  technical
basis for wetlands decisions.

During FY 1985-86, OFA has  been  working to  improve  the
interagency framework to help meet  these objectives.
Major steps towards clarifying  relationships  with  the
Army Corps of Engineers were achieved through the  signing
of Memoranda of Agreement with  the  Corps on resolving
disagreements on proposed discharges under  Section  404(q)
and on the regulation of solid  waste discharges  into
waters of the U.S.  Resolution  should also  be achieved on
other major issues of importance,  such as the Corps'
proposed revisions to their  National Environmental
Policy Act regulations and  on procedural and  technical
issues relating to jurisdictional  determinations of
wet!ands.

Three major internal initiatives have been  undertaken  in
FY 1985-86.  The first is to develop the capability to
become pro-active in the exercise  of EPA authorities  to
protect the most valuable and threatened wetlands.
While permit review, our most resource intensive
responsibility, is always exercised  in reaction  to  a
proposed discharge, EPA's other  authorities are  under
study to determine how they  can  be  used in  advance  of
permit actions to address wetland  loss problems  in
specific geographic areas.   These  authorities are
advanced identification of  site  404(c) restrictions
or prohibitions, wetland boundary  determinations,
compliance/enforcement initiatives,  and public information
efforts.  In FY 8Fi Regional  offices  developed wetland
priority lists as the first  step toward a pro-active
approach.  In FY 86 the lists will  be refined and
implementation strategies will  be  prepared  to identify
the mix of FPA authorities  that  will improve  levels
of protection for the most  pressing  wetland loss
problems in each Region.

The second initiative underway  in  FY 1985-86  has been
to strengthen our policy framework  to make  EPA's program
more effective, consistent  and  streamlined.  This  has  in-
cluded development of draft  guidance on mitigation, advanced
identification, use of section  404(c) authority, wetland
jurisdictional determinations,  and  bottomland hardwood
wetlands.  EPA regulations  for  404  State programs  and
for section 404(c) are also  being  revised.

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                          -15-
    Improving EPA's capability to enforce against unpermit-
    ted dischargers is the third major internal  initiative.
    This has involved a comprehensive effort  to  improve the
    efficiency of EPA actions through procedural  guidance and
    training, and to improve our effectiveness  in obtaining
    the most environmental gain with the actions  we pursue.

    In FY 87 we will incorporate into the program the
    results of the Agency's Strategic Planning  Initiative on
    Wetlands, refine elements of the regulatory  and
    policy framework, and increase our attention  to pri-
    ority wetlands.

b.  Key Program Activities

    (1)  Headquarters will continue to build  consistent and
    effective EPA policy for exercising our  404  Program
    authorities.  Final 404(c) regulations will  be promulgated.
    Policy guidance will be developed on interpretation of
    the 404(b)(l) Guidelines and on permit exemptions.

    (?)  Headquarters will work with the Department of  Army
    to effectively implement the revised 404(q)  agreement
    and the 1986 Solid Waste agreement, and  to address
    remaining issues such as joint mitigation  policy, the Corps
    permitting regulations, and the agreement  on  enforcement.

    (3)  Regions will continue permit review  activities and
    will work with Corps' Districts and Divisions to effectively
    implement the revised Section 404(q) MQA.

    (4)  Regions will maintain and update their  wetland
    priority lists, and will develop implementation strategies
    to increase the level of protection for  selected priority
    areas.  Regions will also consider these  areas as can-
    didates for inclusion in their Environmental  Management
    Report action plans for addressing geographic problem
    areas.  The implementation strategies will be based on
    the use of FPA authorities in a pro-active manner,
    including, as appropriate, advanced identification  of
    areas as suitable or unsuitable for discharge under
    the 404(b)(l) Guidelines; restriction or  prohibition
    of areas for discharge under Section 404(c);  jurisdictional
    authority; and enforcement.  The mix of  authorities to
    be exercised in each selected priority wetland area
    will be designed to yield the greatest environmental
    results.  Following policy review in FY  86,  the program
    to reduce losses of bottomland hardwood wetlands will
    be implemented.

    (5)  Headquarters will support technical  studies by the
    Regions on priority wetlands and major permit cases.

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                      -16-

(6)  As EPA begins to develop and  issue strategies
for priority wetlands, Regions will  increase efforts
to relate these to other EPA programs  such  as  groundwater
protection, non-point source control,  municipal  wastewater
facilities and RCRA and Superfund  activities in  the
geographic areas of concern.  Headquarters  will  conduct
five additional Regional program evaluations,  at which
inter-program coordination will  he assessed.

(7)  Regions will  focus their enforcement  efforts on
unauthorized discharges in priority  wetlands (including
bottomland hardwood wetlands) and  will  ensure  that  sign-
ificant violators  are returned to  compliance expeditiously
or have a formal enforcement action  taken  against them.
Regions will work  with the Corps to  enforce against
violations of permitted discharges only after
making a determination that such efforts will  yield more
environmental results than additional  enforcement against
unauthorized discharges.  Regions  will  apply the definition
of "significant violator" to the backlog of cases from
FY 86 and to the universe of violators  in  FY 87.

(8)  Headquarters  will provide training to  the Regions
on the use of model Administrative Orders  and  the 404
Enforcement Manual .

(9)  Consistent with available resources,  headquarters
will implement a more active program to inform the
public of the values of wetlands and EPA's  role  in
protecting them, with approaches specifically  tailored
toward developers, farmers, local  governments, environmental
groups, citizens,  educational institutions, and  fishing
and hunting interests.

HO)  Regions will develop public  information/outreach
programs, with special emphasis on priority wetlands.

(11)  Regions will continue working  with the States to
improve their effectiveness in protecting  wetlands,
and will accelerate assisting the  States to the  extent
that resources permit.  Headquarters will  develop guidance
on EPA's enforcement role in States  with approved 404
programs.  We will strengthen communications and technical
assistance to State wetlands programs  through  a  more
active EPA role as a clearinghouse for  information  on
State initiatives.

(12)  Headquarters will continue to  participate  in  inter-
agency efforts to update and refine  wetland plant and
soil lists and to revise the Adamus  Methodology  for
evaluating wetlands.  Regional testing  and  use of the
the Adamus methodology are also expected to increase.

(13)  Headquarters will monitor uses of the EPA/Corps
methodology for establishing wetland boundaries,

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                          -17-
    expected to be Issued in FY 86,  and will  identify needed
    refinements or improvements.

    (14)  Regions will  install  the Section 404 Management
    Information System  developed in  FY 86 and will  make it
    fully operational.   Regions will  also develop mechanisms
    to obtain data from the Corps to  track permitting and
    enforcement actions referred by  EPA.

    (15)  OFA will continue the wetlands technical  training
    program for EPA 404 personnel, maintaining our  cooperative
    agreement with the  Corps'  Waterways Experiment  Station
    to conduct courses  tailored to EPA's technical  development
    needs.

    (16)  The Office of Research and  Development (ORD)  will
    strengthen the research program  in accordance with  the
    seven year Wetlands Research Plan, addressing the following
    questions in FY 87:  (a) What effects do  wetlands have on
    water quality?  (b) Can we  predict or determine the cumulative
    impacts of wetlands loss and relate individual  permit
    decisions to that loss, and (c)  Are techniques  to create
    and restore wetlands working, and how can we best ensure
    success in the environment?

FY 1988 Guidance

    In FY 88 Headquarters will  revise the "Strategy For Wetlands
    Protection Under 404" based on practical  experience
    gathered during the preceding two years,  ORD research
    efforts, and the findings  of the  Agency's Strategic
    Planning Initiative on Wetlands.   The 404 program will
    continue to reflect a heavier emphasis on the anticipatory
    approach to wetlands protection.   Depending upon the
    results of analyses performed in  FY 86-87, program  pol-
    icies may be revised to tailor EPA's 404  regulatory
    response to categories of  wetlands based  upon functions
    and values, environmental  context of impact areas,
    and institutional  recognition of  ecological values.

4.  MAJOR PROGRAM GOAL:  PROTECT AND  ENHANCE  ENVIRONMENTAL
    OUALITY THROUGH ENSURING EPA COMPLIANCE WITH THE GOALS
    AND/OR  REQUIREMENTS OF THE  NATIONAL ENVIRONMENTAL POLICY
    ACT (NEPA) AND RELATED LAWS AND  DIRECTIVES.

FY 1987 Guidance

a.  The objectives of the NEPA  Compliance Program are to:
    (1) help improve EPA decision-making in order to avoid
    unanticipated environmental impacts, with an emphasis
    on identification of alternatives, of the full  range
    of potential impacts, including  impacts on natural
    resources and possible intermedia transfer of pollutants,
    and of  mitigating measures  to avoid or minimize adverse

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                            -18-
    impacts;  and  (2)  ensure  that  EPA  complies  with  the
    requirements  and  procedures  of  other  relevant  environ-
    mental  laws  and  directives.

    The interdisciplinary  experience  developed in  the  course
    of NEPA compliance  (primarily for water  media  programs)
    is increasingly  being  made  available  to  assist  in  other
    EPA program  areas.   In FY  87, the NEPA Compliance
    Program will  continue  to be  directed  to  ensure  that
    EPA's  regulatory  and other  programmatic  actions  comply
    with the  goals  and/or  requirements of  NEPA and  other
    related laws.   The  program  will  be used  to promote
    improved  decison-making  for  complex  and  controversial
    projects  through  comprehensive  environmental  impact
    analyses, impact  mitigation  and  public involvement.
    Emphasis  will  be  placed  on  those  activities  with  the
    greatest  potential  for adverse  public  health  or  natural
    resource  impacts  and intermedia  pollution  transfers.
    It is  expected  that a  major  new  area  of  activity  will
    he required  to  support NEPA  requirements for  off-shore
    oil and gas  permitting.   In  addition  to  those  programs
    for which formal  NFPA  analysis  is required,  the  NEPA
    compliance program  will  also  continue  to assist  agency
    programs, especially those  with  potential  intermedia  or
    natural resource  impacts,  in  carrying  out  review  processes
    that are  functionally  equivalent  to NEPA.

    Assistance will  also be  provided  in the  compliance  of
    EPA with  the  requirements  and directives of  other  Federal
    statutes  and  Executive Orders affecting  such  environmental
    values  as wetlands, floodplains,  coastal zones,  historic
    preservation,  and endangered  species.  Finally,  the
    regions will  develop region-specific  strategies  to  focus
    and describe  their  activities in  this  area.
b.  Key Program Activities

    These activities  will  be  carried  out  within  each  region
    in accordance with region-specific  NEPA  Compliance
    strategies  developed  in  FY  86.

    (1)  Continue to  see  that projects  proposed  for funding
    under the construction  grants  program have  complied  with
    the requirements  of NEPA.  Where  segments  of a  project
    have not been previously  reviewed under  NEPA,  where  the
    review occurred five  or  more years  ago,  or  where  the
    proposed project  or environmental conditions have
    changed, an environmental review  will need  to  be  per-
    formed.  Where major  elements  of  this review are  per-
    formed by delegated states,  technical assistance  and
    support should be provided.   Review the  performance
    of delegated states.   (The  scope  of this activity in
    FY 87 will  be dependent  upon the  provisions  of  the

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                       -19-
pending Clean Water Act reauthorization.) (Regions)

(2)  Continue to provide new source determinations,
FNSI/EAs, and EISs, as necessary, for  all new source
industry permits where States have not assumed National
Pollutant Discharge Elimination System (NPDES)
permitting authority.  Provide new reviews required
for off-shore (Outer Continental  Shelf) oil  and gas
NPDES permitting.  Assure that NEPA compliance
documentation is complete, useful for  decision-making,
and timely.  (Regions)

(3)  As resources allow, evaluate the  effectiveness
of NEPA compliance activities on  selected projects
for which FNSI/EAs were issued, with an emphasis on
accuracy of impact prediction, actual  installation of
proposed mitigation measures and  effectiveness of
implemented mitigation measures.   (OFA, Regions)

(4)  Ensure that special or generic studies  required to
support EPA's NEPA compliance program  are performed and
made available to decisionmakers  in a  timely manner.
(OFA, Regions)

(5)  Increase the Agency's effectiveness  in  meeting the
goals of NEPA in the development  of policies, regulations,
and other initiatives.  Participate in selected working
groups on key issues with potentially  wide public health,
intermedia, or natural resource impacts.   (OFA)

(fi)  Assist in site-specific evaluations, e.g., working
with CERCLA staff in the development of feasibility
studies for remedial actions and  RCRA  staff  on permitting
activities, emphasizing the analysis of alternatives,
cross-media impacts, mitigation,  and public  involvement.
(Regions )

(8)  Improve communication with other  Federal agencies
responsible for implementation of environmental laws
and Executive Orders with which EPA programs must comply,
in order to evaluate problem areas and facilitate Agency
compliance.  (OFA)

(9)  Reflecting the results of the FY  P6  reviews and
communication with other Federal  Agencies, continue to
provide oversight and assistance  to Agency programs in
complying with the requirements of other  Federal environ-
mental laws and relevant Executive Orders affecting
wetlands, floodplains, agricultural lands, coastal
zones, wild and scenic rivers, fish and wildlife,
endangered species, historic and  archeological sites,
etc.  (OFA, Regions)

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                     -20-


FY 198P Guidance

    Emphasis will  continue to be  placed  on  working  to
    improve EPA decisionmaking within  on-going  Agency
    procedures in  order to avoid  unanticipated  adverse
    public health  and natural resource impacts  or  inter-
    media transfers of  pollutants.   Interdisciplinary
    approaches to  decisionmaking  will  be encouraged,  and
    both guidance  and training, as  appropriate,  will  be
    developed to assist program and Regional  Offices.
    Implementation of region-specific  strategies is
    expected to strengthen the effectiveness  of  this
    program in identifying and focusing  on  priority
    needs and issues.

5.  MAJOR PROGRAM  GOAL:  ENSURE ENVIRONMENTAL PROTECTION  ON
    AMERICAN INDIAN RESERVATIONS  THROUGH IMPLEMENTATION OF
    EPA'S AUTHORITIES AND  PROGRAMS.

FY 1987 Guidance

a.  The objectives of EPA's Indian  program  are  to:   (1) directly
    apply EPA's authorities and programs on Indian  reservations;
    (?.} develop and enhance tribal  institutional capabilities
    to assist in the implementation of EPA's  authorities
    and programs on reservation lands; and  (3)  eliminate
    legislative and regulatory barriers  to  program  implemen-
    tation (ranging from partial  participation  of  the tribe
    to full delegation  of  programs  to  tribal  governments).
    This program reflects  the fact  that  EPA retains program
    authority on Indian reservations even where  that  reserva-
    tion is geographically located  in  a  "delegated" State;
    our responsibilities are as they are in "non-delegated"
    States.

    In FY 87, the  results  of the  environmental  survey of
    reservation lands and  the pilot projects  will  be  evaluated
    and made available  for use by EPA  program and  Regional
    offices, other Federal agencies, Congress,  and  tribal
    governments.  Technical assistance will continue  to  be
    provided by OFA contract to assist in problem  identification
    and infrastructure  development.  Coordination  with other
    Federal agencies will  continue  to  increase,  focusing  on
    program implementation through  cooperatively funded
    activities.  Regions and programs  are expected  to continue
    demonstrating  significant and credible  steps toward
    implementation of the Policy  within  the constraints  of
    available resources.  Additional opportunities  to ex-
    tend program applicability and  provide  technical  and
    administrative assistance to  Indian  lands will  arise  as  the
    remaining statutes  and regulations are  amended.  OFA  will
    continue in its role of program coordinator, providing
    guidance, direction, and oversight,  as  appropriate.

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                      -21-
Key Program Activities

These activities will  be carried out within each Region
in accordance with region-specific strategies developed
in FY 86 consistent with the December 1985 Interim
Strategy for Implementation of the EPA Indian Policy.

(1)  Increase the level  of direct programmatic involve-
ment on Indian reservations to address the most critical
air, water, and hazardous/radioactive waste problems
consistent with the overall goals and objectives of the
media programs.  (Regions)

(2)  Develop on a selective basis several  Tribal/EPA
agreements analogous to  State/EPA agreements identifying
priority environmental problems and measures to address
them.  (Regions)

(3)  Continue to provide direct technical  assistance  to
Tribal  governments including assistance on problem
identification and infrastructure development.  (Regions)

(4)  Continue to strengthen external liaison with Indian
Tribal  organizations and relevant Federal  agencies.
(OFA/Media Programs/Regions)

(5)  Strengthen outreach and liaison with  Tribal govern-
ments,  providing information and opportunity to participate
in EPA  programs, as appropriate.  (Regions)

(6)  Continue, as necessary, to seek revision of EPA's
statutes and to revise EPA's regulations  to include
consideration of Tribal  governments.  (OFA/Media Programs/OGC)

(7)  Continue to factor  Indian program needs into media
program fiscal and program planning processes.  (OFA/Media
Programs)

(8)  Work  with the media programs to develop specific
measures relating to implementation of the Indian pro-
gram for their programs.  (OFA, Media Programs, OMSE)

(9)  Maintain and, as  appropriate, update  the data base
developed  during the FY  86 Survey of Environmental
Conditions on Reservation Lands.  (Regions)

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                          -22-
FY 1988 Guidance

    In FY 88,  EPA will  continue to develop its  programs
    along the  lines outlined in the Strategy for Implemen-
    tation of  the EPA Indian Policy/within the constraints
    of available resources.   Direct program activity by
    the Agency on reservation lands will  increase and,
    as the statutes are amended, regulatory programs may
    begin to be delegated to Tribal governments.  Regions
    will  maintain good  communication with major Tribes, and
    will  continue to provide technical  assistance to Tribal
    governments as they assess their environmental  problems
    and needs, and as they continue to  build up the institu-
    tional capability to deal with environmental problems.
    It is to be expected that, as  this  process  continues,
    additional Tribes will be identified  as reaching an
    institutional level capable of dealing with environmental
    problems.   Innovative and alternative institutional
    options will receive a high priority  where  they provide
    an effective means  to address  environmental problems in
    terms of cost and environmental results.  The
    information base on environmental  problems  on reser-
    vation lands will be updated and expanded to additional
    reservations and will assist in focusing Agency
    priorities on the most significant  issues.   By  FY 88
    it is expected that the  Agency will  have wholly
    incorporated consideration of  Tribal  governments into
    all of its management and budgetary  processes,  and  that
    the Regions and media programs will  have developed
    strategies to incorporate Tribal needs and  programs into
    on-going Agency activities, both for  the current fiscal
    year and as additional statutes and  regulations are
    enacted or revised.

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                                      -23-

                    FY 1987 Supplemental Guidance to be Issued
                                      by OFA
                          (Publication dates unknown)
Federal Facilities Compliance Program

1.  "Criteria for Identifying Potentially Environmentally Significant Federal
     Facility Minor Sources."

2.  "Guidance on the Identification of Environmentally Significant Federal
     Facilities."

3.  "Guidance on the Development of Federal Facility Compliance Management
    Plans."
Dredge and Fill  Program

"Guidance on Advance Identification (Section 230.80)"

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Appendix

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-------
        SCHEDULE FOR COMPLETING FY 1987 SPMS MEASURES
             ACTION
     DATE
0  Present measures and indicators
   to Regional  Division Directors;
   distribute draft measures
March 4, 1986
0  Send Comments on draft measures
   to OPMO by COB
March 21, 1986
   Hold first work group meeting
March 27, 1986
0  Send revised draft measures to
   revi ewers
March 31, 1986
0  Send comments to OPMO by COB
April 9, 1986
   Hold second group meeting
April 15, 1986
0  Submit final  SPMS measures to
   OMSE
April 21, 1986

-------










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       SCHEDULE FOR COMPLETING FY 1987 SPMS MEASURES
             ACTION                                DATE
0   Office Directors submit draft measures
    to AA                                         2/5/86
0   AA includes draft measures in final
    draft guidance package and sends to
    OMSE, OECM and Regional Administrators
    for comment.                                   2/14/86
0   Comments on draft measures due to OSWER
    and OMSE                                      3/17/86
0   Second draft of measures to OSWER, OMSE
    Regions and OECM.                              4/8/86
0   Final comments due to OSWER, OMSE and
    OECM                                          4/14/86
0   Outstanding issues and final measures
    elevated to OD,  DD level for resolution       4/17/86


0   AA submits final measure to OMSE              4/21/86

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                                                                                CO
                                                                                rH
                                                                                L
                                Schedule  Leading to
                   Final  FY 1987 SPMS  Measures  for OFA
1.  AA includes preliminary draft  measures                  2/28/86
    in draft guidance package and  sends  to
    OMSE, OECM, Regional  Administrators  and
    HQ program offices with specific
    information explaining the changes to
    and purpose of revised measures

2.  OMSE, OECM, RA and HQ program  office                   3/24/86
    comments due to OFA

    (If at this time, no  issues are
    identified for elevation, OFA  will
    finalize measures and submit them
    through AA to OMSE and OECM.  If
    issues are identifed, OFA will
    work to resolve them  during this
    phase and implement the remainder
    of this schedule.)

3.  AA circulates draft measures to                         4/1/86
    OMSE, OECM, RAs and HQ program
    offices

4.  RAs and HQ program officials                           4/9/86
    officials notify OMSE and OFA
    of any issues to be elevated

5.  OFA/OMSE/OECM/Regions resolve                           4/16/86
    issues (DA meeting if necessary)

6.  AA submits final measures to                           4/21/86
    OMSE and OECM

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