United States Environmental Protection Agency Office of the Administrator EPA100-R-97-001 January 1997 "Protect people, not bureaucracy. Promote results. not rules. Get action, not rhetoric." — ^ ^>/l M ^*^ /OOR9700/ fl^Zl/directions A REPORT ON REGULATORY REINVENTION foreword During President Clinton's first term in office, EPA joined other Federal agencies in an unprecedented effort to "reinvent gov- ernment" so that it works better and costs less. At EPA, that challenge has meant closely examining our programs and priori- ties and acting on opportunities for reduc- ing costs and unnecessary regulatory bur- den. Doing so will help State and local governments, private businesses, and EPA's own staff focus on areas offering greater gains for environmental and public health protection. This report is designed to pro- vide readers with a better understanding of what reinvention is, how it is being pur- sued, and what is being accomplished as a result. Each edition will feature an in-depth look at a major reinvention effort as well as brief updates on other projects that are underway or under development. inside Milestone: New Agreement Under Project XL 2 Spotlight: List of Key Projects 4 Reinvention Ombudsmen Named 6 Reducing Regulatory Burden 6 1001^700 / Performance Partnerships Building a Stronger Relationship Between EPA and the States An important milestone towards reinventing envi- ronmental and public health protection was reached on May 17, 1995, when Administrator Carol Browner and Deputy Administrator Fred Hansen joined State Environmental Commissioners in establishing Performance Partnerships to reform the ways States and EPA work together. What Are Performance Partnerships? Performance Partnerships establish a new working relationship whereby the States and EPA determine on an annual basis what and how work will be per- formed. Traditionally, the process for funding and addressing environmental and public health priorities has been conducted with a single media focus. States have submitted up to 16 annual workplans and received multiple grants to support air, drinking water, hazardous waste, and other pollution control pro- grams. While reflective of the media- specific focus that has characterized environmental management over (CONTINUED ON PAGE 2) ------- Tuesday, November 18,1996, marked an important date for Project XL as Administrator Carol Browner approved a new agreement with Intel Corporation officials, the Arizona State Department of Environmental Quality, and communi- ty leaders in Chandler, Arizona. Project XL is a national pilot program that allows regulated facilities to test alternative management strategies on the condition that they exceed mini- mum standards and achieve higher levels of environmental performance. Under the agreement, Intel will adopt a 5-year environmental management plan that includes meeting more stringent air pollution standards in exchange for an air quality permit that eliminates the usual permit modi- fication process each time the plant needs to make an operational change to its manufacturing process. In addi- tion, the plant will be allowed to file a single, consolidated report for all pollution emissions to Arizona's Department of Environmental Quality, rather than separate reports for air, water, and hazardous waste to sepa- rate agencies. The agreement will benefit the public as well—Intel has agreed to make all the plant's envi- ronmental information available on the Internet. Intel is the first company to do so. Performance Partnerships (FROM PAGE 1) the past quarter century, this approach has fueled administrative management and oversight activity, diverting resources from on-the-ground improve- ment efforts. To overcome this dilemma, Performance Partnerships are designed to place much greater emphasis on envi- ronmental results and to achieve better coordination between Federal and State environmental programs. How Do Performance Partnerships Work? Performance Partnerships begin with a comprehensive assessment of a State's problems and conditions to establish a stronger basis for decision-making. In some cases, this step may be the first such undertaking. In other cases, States may use an existing assessment, such as an annual State of the Environment report or a comparative risk assessment. Based on this information, the State proposes environmental and public health objectives and an action plan as a basis for negotiating an annual agree- ment with EPA. At this point, if not before, the State also conducts outreach efforts to ensure appropriate public understanding and support. Next, EPA and the State begin negotiat- ing the actual agreement. Ideally, this agreement includes specific roles for EPA and the State, including how EPA's oversight of State roles will be reduced in those areas of strong performance. In addition, it includes measures of envi- ronmental and program management performance to better measure success. An added element of Performance Partnerships is grants flexibility. States are given a new option of combining two or more single-media grants into a single Performance Partnership Grant. They also have the option of maintain- ing media-specific grants or requesting a combination of both. What Are the Advantages? Most significantly, Performance Partnerships provide an enhanced focus on improving environmental conditions and reducing the amount of time spent on administrative and managerial activi- ties. Greater management flexibility is another significant benefit for the States. Under Performance Partnership Grants, States can target and leverage their resources for greater gains than could normally be achieved. With regard to EPA's responsibilities, this new approach provides a clearer understanding of actual problems and conditions, and added assurance that States will focus on the issues most in need of attention. The public will gain similar assurance as they are given more opportunity to learn about conditions and trends and to participate in the decision-making process. What Are the Challenges Ahead? The actual content of each Performance Partnership agreement will differ depending on the players, conditions, and issues involved. In nearly every case, certain challenges must be recog- nized and addressed. One of these chal- lenges will be overcoming basic resis- tance to change in the States and EPA. It's far easier, and in the short term pos- sibly even less expensive, for managers and staff to continue operating with the status quo. Creating more effective approaches for the future will require time, money, and, most importantly, a willingness to experiment and make necessary adjustments along the way. Another challenge is how to best achieve a balance between flexibility and REPORT ON REINVENTION January 1997 ------- accountability. The added management flexibility under Performance Partnerships is one of the strongest incentives for State participation. When used properly, it has the potential to sig- nificantly increase productivity. This flexibility cannot be provided, however, without first ensuring adequate safe- guards to protect public health and our environment. Exactly what those safe- guards should be will continue to be an issue for debate and negotiation. Finally, it will be important to develop better ways for informing and involving the public. Protecting public health and the environment is a job beyond EPA and the States—it requires the active involvement of individuals and organiza- tions throughout the country. To be most successful, Performance Partnerships have to fully reflect the concerns and interests of those they affect. At this time, over two-thirds of the States are negotiating Performance Partnership agreements with EPA for FY 1997. This level of participation is largely due to the response from the six States that originally participated in 1996. In a meeting of the State Environmental Commissioners, Bharat Mathur, director of the Illinois state air program, explained how this new process has generated better information than ever before on environ- mental trends in the State and how their environmental programs affect those trends. Jim Pauk, the Illinois water pro- gram director, described how the process has focused the dialogue between his staff see signifi- cant benefit from the thought process involved in developing these agreements . . . we are in a much better position to achieve our mission." Christophe Tulou, ENVIRONMENTAL COMMISSIONER OF DELAWARE Performance Partnerships 1997 State Participation* .*jt\ /. Agreement Only ^H Grant Only Agreement and Grant * Completed or Negotiating and the EPA Regional Office on environ- mental results rather than on "bean count- ing" and bureaucracy. Other States have noted similar advantages. Christophe Tulou, the Environmental Commissioner of Delaware, stated, "I see significant ben- efit from the thought process involved in developing these agreements. We've taken a hard look at our programs and their effectiveness, and based on what we've learned, we've set clear goals and objec- tives and identified what needs to be done. As a result, we are in a much better posi- tion to achieve our mission." He also noted how the final agreement has been useful as a communication device—in working with the public and explaining programs and priorities to the State legisla- ture. These perspectives show that Performance Partnerships are helping to shape a fundamentally different relation- ship between EPA and the States, one that should help deliver stronger, more effec- tive environmental and public health pro- tection for the future. January 1997 REPORT ON REINVENTION ------- In March 1995, as a result of the Clinton Administration's National Performance Review, EPA identified 25 high priority actions and other significant steps to reinvent our system of environmental protection. These actions were designed to fix problems with existing regulatory programs and to create innovative alternative strategies to current regulatory approaches. Collectively, they are often referred to as EPA's "reinven- tion initiative." The profiles below include many of those initial actions as well as other significant efforts that have evolved more recently. This list is not all inclusive and does not capture the full range of reinvention activ- ities underway. Nevertheless, it does provide the reader with a more complete understand- ing of how programs are being reinvented and, more importantly, why these efforts are so important. The specific projects vary con- siderably, and they address different problems. But, in every case, the overarching goal is clear—to continuously improve environmen- tal performance. light A Look Cutting red tape Part in ships \ Flexil for results FacilH compliance Reduction in Paperwork Burden Identify obsolete, duplicative, and unnecessary monitoring, record- keeping, and reporting require- ments with a goal of eliminating total burden by 25 million hours PROGRESS • Completed line-by-line review of all rules • Eliminated over 15 million hours of paperwork burden • Identified and initiated action to eliminate an additional 8 million hours Performance Partnerships Increase effectiveness of State and Federal environmental programs through greater coordination and a stronger emphasis on environ- mental results PROGRESS • Developed and endorsed framework for cooperation with States • Negotiating agreements and/or grants with over 30 States for 1997 Project XL (excellence and Leadership) Allow regulated entities to test alternative management strate- gies that increase performance beyond current regulatory requirements and save resources PROGRESS • Signed agreements with 2 com- panies • Negotiating agreements with and evaluating proposals from numerous public and private sector entities Risk-Based Enforcement Target enforcement and compli- ance efforts to activities that present most serious threat to human health and the environ- ment PROGRESS • Issued new policies that reduce NPDES and RCRA inspections for facilities with strong compliance records • Identified new methods to assess relative risk of specific facilities based on emissions One Stop Reporting Streamline environmental report- ing for regulated community, fos- ter multi-media and geographic approaches, and improve real- time access to environmental data PROGRESS • Supported 5 States in integrat- ing reporting systems to streamline regulatory processes • Proposed information manage- ment policy and identified infrastructure needs to better integrate State-EPA data Center for Environmental Information and Statistics Improve EPA information on multi-media environmental status and trends to provide a more integrated picture of conditions for decision-makers and the public PROGRESS • Developed options to guide pending decisions on Center's function, scale, and manage- ment Common Sense Initiative Create an industry-by-industry, consensus-based approach to environmental protection that improves environmental perfor- mance and saves resources PROGRESS • Streamlining reporting and permitting • Identifying alternative regulato- ry approaches • Examining opportunities to improve small businesses' access to capital for pollution preven- tion and remediation activities Incentives for Auditing, Disclosure, and Correction Promote compliance by providing incentives for systematic discovery of violations through environ- mental audits or management sys- tems, and publicly disclosing and correcting violations PROGRESS • Developed and issued final policy • Received self-disclosures from 83 companies and settled 19 cases, all of which eliminated or signif- icantly reduced the penalty REPORT ON REINVENTION January 1997 ------- at Major Reinvention Projects Consolidated Federal Air Rule Consolidate all Federal air quality requirements specific to an industry into a single rule PROGRESS • Established agreement with chemical industry and States to develop rule for synthetic organic chemical industry Regulatory Negotiation and Consensus-Based Rulemaking Improve quality and effectiveness of rulemaking and policy devel- opment efforts by early involve- ment of outside stakeholders PROGRESS • Routinely assess regulatory negotiation opportunity prior to any new rulemaking • Initiated and presently involved in negotia- tions or consensus-based activi- ties to support new rules or policies in all media Open-Market Air Emissions Trading Provide a more flexible approach for complying with ozone standards PROGRESS • Drafted guidance; expect final document Spring 1997 • Supportred trading demonstra- tion project involving 37 facili- ties and over 40 trades in the northeast and mid-atlantic regions Reinvent Pesticide Registration Process Simplify and expedite process of reviewing and approving pesticide products PROGRESS • Issued final rule exempting 31 low-risk active pesticide ingredients and 160 inert ingredients from registration • Established self-certification process for minor product changes • Automated and standardized precautionary labelling Electronic Public Access Make EPA information widely available and easily accessible to all interested parties PROGRESS • Developed capability to make envi- ronmental Federal Register notices available electronically within 1 day of publication. • Developed ENVIROFACTS to provide access to and easier integration of data from multiple environmental databases • Re-designed EPA homepage to facili- tate use by specific stakeholders • Established on-line ordering capabili- ties for EPA publications Effluent Trading in Watersheds Implement on a national scale as a cost-effective approach for reducing water pollution PROGRESS • Issued final policy • Developed and released for public comment draft "how-to" framework document Refocus Drinking Water Treatment Requirements on Highest Risks Focus EPA drinking water resources on highest risks and increase flexibility for States and water suppliers PROGRESS • Renegotiated court-ordered schedule for setting drinking water requirements to allow for more risk-based approach • Help define significant reforms in Safe Drinking Water Act reauthorization • Established "Partnership for Safe Drinking Water" to reduce risks of microbial cont- amination Community-Based Environmental Protection Help communities achieve sustainabili- ty through management approaches more tailored to local conditions. PROGRESS • Increased internal and external understanding of how EPA authori- ties, programs, and resources can be applied at the community level to achieve stronger environmental results • Identified and providing access to new tools that support local deci- sion-making and action • Providing technical and financial support to scores of communities nationwide Brownfields Refocus Hazardous Waste Regulation on High-Risk Wastes Better target public and private sector resources toward higher risk problems related to hazardous wastes PROGRESS • Proposed RCRA legislative reforms that led Congress to exempt certain low-risk wastes from land disposal requirements • Issued final rule on universal waste to encourage recycling and reduce haz- ardous waste regulatory requirements associated with commonly used products • Proposed rules for hazardous waste identification that would exempt many low-risk wastes from RCRA require- ments Green Chemistry Challenge Promote pollution prevention and industrial ecology PROGRESS • Established annual award and grant program to recognize and support research, development, and implementation of innova- tive and environmentally bene- ficial technologies Empower States, communities, and other interested stakeholders to prevent, assess, safely clean up, and sustainably reuse Brownfields—abandoned, idled, or under-used industrial and com- mercial sites PROGRESS • Provided technical and financial support to 76 communities • Removed 27,000 sites from Superfund list Small Business Compliance Assistance Centers Improve compliance by improv- ing understanding of environ- mental regulatory requirements and increasing awareness of pol- lution prevention techniques and strategies PROGRESS • Established centers for four sectors—printing, farming, auto service, and metal finishing • Establishing two new centers for small chemical and printing wiring board manufacturers Environmental Leadership Program Recognize and provide benefits to facilities that take a systematic approach to achieving environmental regulatory compliance PROGRESS • Developed pilot program and selected 12 participants from pub- lic and private sectors • Evaluated pilot results in prepara- tion for full-scale program • Preparing to issue Federal Register notice announcing plans for full-scale implementation in 1997 January 1997 REPORT ON REINVENTION ------- EPA Reinvention Ombudsmen Named ecognizing that EPA's reinvention efforts have been most successful hen senior managers have been actively involved, Deputy Administrator Fred Hansen has asked Deputy Assistant Administrators and Deputy Regional Administrators to serve as Reinvention Ombudsmen for their programs or Regional offices, One of EPA's biggest reinvention opportunities is reducing record-keep- ing and reporting requirements for busi- nesses and communities. Nearly all EPA regulatory programs require environmen- tal monitoring and periodic reports in order to determine what pollution con- trols are necessary, whether compliance is being achieved, and any impacts of pollu- tion and pollution controls on the envi- ronment. These requirements have evolved over many years as programs have been put into place. Not surprising- ly, many of the requirements are obsolete, duplicative, or unnecessary. respectively. The goal is to open lines of communication so that those on the outside as well as EPA's own staff have a point of contact for raising new reinven- tion opportunities or potential problems with existing efforts. Specifically, the Reinvention Ombudsmen will be ensuring that: 1) significant legal and policy issues are brought to the appropriate management level for timely resolution, 2) our stake- holders have easy access to information and issues being reviewed and an opportunity to provide meaningful input, and 3) people and organizations interested in pursuing reinvention efforts receive timely answers to their proposals, questions, and requests. If you have an issue that needs attention, contact the appropriate Ombudsman listed on the next page. Reducing Regulatory Burden EPA recognized and began to address this dilemma in 1995 when it undertook a comprehensive, line-by-line evaluation of all its regulatory requirements in response to a Presidential directive to all Federal agencies to eliminate regulatory burdens by 25 percent. At that time, EPA estimated the total environmental regula- So how much of the total burden has EPA eliminated? To date, over 15 million hours! tory burden at 81 million hours a year. However, that estimate was increased to 100 million hours in 1996, partly because of new statutory requirements and partly because more complete information became available. For example, the bur- den for meeting land disposal require- ments for hazardous wastes was increased by over 4 million hours to reflect a larger than originally estimated universe of affected generators. So how much of the total burden has EPA eliminated? To date, over 15 million hours! The largest reduction—about 4.7 million hours—was made in discharge (CONTINUED ON PAGES) REPORT ON REINVENTION January 1997 ------- EPA Regional Reinvention Ombudsmen REGION Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 OMBUDSMAN PHONE 617/565-3417 212/637-5000 215/566-2900 * 404/562-8357 312/886-3000 214/665-2100 913/551-7006 303/312-6308 415/744-1001 206/553-5811 E-MAIL ADDRESS EPA Headquarters Reinvention Ombudsmen OMBUDSMAN Air and Radiation General Counsel Cross-Cutting Issues Policy, Planning, and Evaluation Prevention, Pesticides, and Toxic Substances Solid Waste and Emergency Response Water Enforcement and Compliance Inspector General • -. •"•„ '•> * >* J ^^, ^ * i **** %t*"t-'v'^if» Sft^' .>•> * *' 202/260-7400 f 202/260-5372 I -. 202/260-5497 202/260-2997 ' 202/260-2910 ' 202/260-4610 202/260-5700 202/564-2450 202/260-1112 International Activities 202/260-4870 Research and Development Administration and Resources Management Henry I.«Mtgest II * 202/260-7676 202/260-4083 wilson.richard nelson.james January 1997 REPORT ON REINVENTION ------- Reducing Regulatory Burden (CONTINUED FROM PAGE 6) monitoring reporting (DMR) under the National Pollutant Discharge Elimination System (i.e., water quality permitting). Historically, the DMR monitoring and reporting requirements have been the Agency's largest regulatory burden. As a result of new policy, however, this burden has been cut by 26 percent. A 3 million hour reduction was achieved for Title V air quality permittees through a new poli- cy that significantly reduces the amount of information collected and the number of facilities subject to permitting require- ments. In addition, about 1 million hours were cut as a result of a new two- page certification form and similar improvements to the Toxic Release Inventory requirements. It is important to note that these burden reductions have been made without any compromise in environmental and public health protec- tion. For example, the reductions in DMR monitoring and reporting are offered to facilities that have a good com- f-lY pliance record and an ability to reduce pollutants beyond requirements in exist- ing permits. Similar conditions are in effect to safeguard performance in other areas. At this time, an additional 8 mil- lion hours of burden have been identi- fied and slated for reduction as staff con- tinue working to meet the President's goal of a 25 percent across-the-board reduction in Federal requirements. That goal translates into a 25 million hour reduction for EPA, and we are over halfway there. It is important to note, however, that burden reduction is about more than just eliminating monitoring and reporting requirements. It also means finding ways to make the job easier by using more efficient reporting methods. EPA has projects underway to do just that. Look for articles on "One-Stop Reporting" and "Electronic Data Transfer Systems" in upcoming issues. Burden Reduction Hours by Statute* (as of December 31, 1996) H Remaining I Completed Remaining Total: 8.3 million hours Completed Total: 15.7 million hours CWA CAA TSCA FIFRA SARA OPA RCRA SDWA CERCLA Misc. TITLE-IN (TRI) *List of EPA Statutes CWA= Clean Water Act; CAA= Clean Air Act; TSCA= Toxic Substances Control Act; FIFRA= Federal Insecticide, Fungicide and Rodenticide Act; SARA= Superfund; OPA= Oil Pollution Act; RCRA= Resource Conservation and Recovery Act; SDWA= Safe Drinking Water Act; CERCLA= Comprehensive Environmental Response, Compensation and Liability Act &EPA United States Environmental Protection Agency Washington, DC 20460 Official Business Penalty for Private Use $300 FIRST CLASS POSTAGE & FEES PAID EPA Permit No. G-35 ------- |