SEPA
United States
Environmental Protection
Agency
Office of the
Administrator
EPA100-R-00-020
April 2000
www.epa.gov/opei
Innovation at the
Environmental Protection Agency
A
Decade
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Executive Summary
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During the past decade, a new emphasis
on innovation has changed the way
U.S. Environmental Protection
Agency (EPA) thinks and operates, leading to
real environmental improvements and real
reductions in costs. Regulatory programs are
still the essential core of our environmental sys-
tem, but innovation has provided new tools to
meet future demands.
EPA has embraced innovation out of necessity.
We have a strong legacy of environmental
improvement, but important changes are taking
place around us. Issues like global warming and
loss of biological diversity present challenges
potentially more difficult than any we've faced
before. Our economy is shifting from an indus-
trial base to one of service and knowledge,
opening the door to a world of e-commerce,
global trade, and new biotechnologies. States,.
local governments, and Native American tribes
are expanding their capabilities. Some business-
es are preventing pollution and doing more
than die law requires, because they see advan-
tages in cleaner facilities and products that are
more environmentally sound. And the
American people are demanding a stronger role
in environmental decisions.
By the early 1990s, it was clear diat we had to
adapt, improve, and expand the diversity of our
environmental strategies. Bolstered by die
Clinton-Gore Administrations commitment to
reinvent government, EPA set out to find more
flexible, cost-effective, and common sense ways
to protect public health and the environment.
Through innovation, EPA has made significant
improvements that will benefit America today
and in the years to come.
Cleaner, Cheaper, Smarter
Programs
Because of EPA innovations during die past
decade, environmental management is cleaner—
with less pollution of the nations air, water, and
land. It is cheaper—widi lower costs associated
with environmental protection. It is smarter—
using better means to solve existing and emerg-
ing environmental problems.
Improvements can be seen in regulatory pro-
grams where we've introduced more flexibility,
reduced costs, and made it easier for businesses
to understand and comply with requirements.
Cleanup of Superfund sites is now faster, fairer
and less expensive. As a result of administrative
reforms that began in 1995, the average time
and costs associated with cleanup have fallen by
more than 20 percent. Moreover, more dian
$1.5 billion has been saved as a result of actions
that make it possible to select and use the most
efficient remedy for cleanup.
We have a.
strong legacy of
environmental
improvement, but
important changes are
taking place around us.
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Brownfields—sites that have been abandoned or
neglected because of contamination problems—
are being revitalized and returned to productive
use. Cleanup and redevelopment is now under-
way at more than 300 sites. With seed money
from EPA, communities have leveraged almost $2
billion in public and private sector investments.
New dean air requirements are more flexible and
less expensive, and they yield better, environmen-
tal results. Market-based trading has been sue- .
cessful in controlling acid rain: between 1995
and 1999, national sulfur dioxide emissions fell
by more than 4 million tons annually; rainfall in
the eastern United States is now about 25 per-
cent less acidic, and some New England ecosys- .
terns show signs of recovery. Trading has also
successfully reduced emissions of nitrogen oxide,
the prime ingredient in smog for-
mation: by 1999, states participat-
ing in the Ozone Transport
Commission had cut nitrogen
oxide emissions 20 percent below
levels allowed by law and 50 per-
cent below 1990 levels.
Water quality permitting, moni-
toring, and reporting are now
integrated into broader strategies
that focus on individual water-
sheds, a move that brings greater efficiency,
more attention to local priorities, and better
understanding of local conditions. Today, all 50
states, six territories and 80 tribal governments
have completed comprehensive watershed assess-
ments, creating die first coordinated overview of
water quality priorities in the nations history.
New compliance assistance programs and
incentives complement strong environmental
enforcement. During the past four years, 675
companies have identified potential environ-
mental violations at more than 2,700 facili-
ties—voluntarily—based on EPA's offer to
reduce or eliminate penalties for facilities that
routinely audit their operations, disclose results,
and quickly correct problems. Environmental
managers in different business sectors, local
governments and federal agencies can now find
information on environmental requirements
and pollution prevention by going online to
"Web-based compliance assistance centers.
Partnerships for Better Results
EPA has broadened its impact and effectiveness
by reaching out to work in partnership with
public and private sectors. Today, more than ,
ever, EPA recognizes that it must involve every-
one—other government agencies, businesses,
communities, and individuals—to meet envi-
ronmental goals.
The National Environmental Performance
Partnership System, established in 1995, gives
states and EPA a more flexible process for set-
ting priorities, clarifying responsibilities, and
making the most effective use of taxpayer dol-
lars. Thirty-five states have signed partnership
agreements, and 45 states have opted to con-
solidate EPA grants. In 1997, we reached
agreement with the states on how they can
pursue innovations while maintaining the
nationwide protection provided by federal
environmental standards.
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EPA and businesses are working better together
based on,a growing realization that environmen-
tal and economic performance can go hand-in-
hand. Today, more than 7,000 organizations
participate in one or more of EPA's voluntary
partnership programs. Along with significant
environmental benefits, annual savings for partic-
ipants are estimated at $3.3 billion. Some of
Americas most well-known corporations, along
with smaller, innovative organizations, are using
the flexibility in Project XL to test alternatives to
the. current regulatory system. Today, 20 projects
are underway and 30 more are being developed,
all of which have potential for more efficient and
effective environmental management. Based on
these and other partnership experiences, industry
representatives are now working with EPA on a
new Performance Track to encourage, recognize,
and reward environmental stewardship.
EPA is providing leadership to help communi-
ties grow and prosper in ways that preserve
environmental quality. Through involvement in
the national Smart Growth Network and other
initiatives, we provide 'technical tools and infor-
mation that allow communities to understand
the environmental consequences of growth.
This is critical assistance at a time when the
nations forests, crop lands, and other open
spaces are being lost to development at an
alarming rate.
"We are working more effectively with other fed-
eral agencies, pooling our resources, and mak-
ing best use of our respective strengths to
address a number of national priorities, includ-
ing protecting children's health. Through a
combined strategy of research, public educa-
tion, and regulatory action, we have made sig-
nificant strides in reducing risks for one of
society's most vulnerable populations.
A Stronger Public Role
Well-informed citizens who are
actively involved in environmental
• decisions are a powerful new force
in achieving environmental results.
Increasingly, Americans are getting
involved in environmental issues
and it's clear that they want a say in
decisions that affect them. But to
participate effectively, they need
quality information that they can
understand and use. They need
access to decision-makers and
opportunities to express their views.
Today, EPA is using new tech-
nology to improve the quality of environ-
mental information and make it easier to
obtain. "We also routinely involve the public in
our work—gathering data, developing new reg-
ulations and standards, and experimenting with
new ideas.
To meet Clean Air Act deadlines for developing
control standards for 174 categories of toxic air
pollution sources, EPA turned to the industries
to be regulated and other interested parties to
gather data and consider appropriate action.
This move reduced the time and costs of devel-
oping the standards, laying the groundwork for
faster, smoother implementation.
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The Common Sense Initiative was
one of our broadest and most
ambitious experiments in public
participation. Representatives from
industry, state and local govern-
ment, and environmental groups
came together to identify ways of
making environmental protection
more efficient and effective for all
parties. The experiment resulted in
regulatory changes, greater experi-
ence with public participation
processes, and in one industry—metal finish-
ing—a model for environmental stewardship
that goes far beyond what is required by law.
Sector-based approaches are now being consid-
ered for other indus-
trial sectors.
We believe that com-
munities affected by
environmental viola-
tions should have a
say in how those vio-
lations are addressed.
A 1998 policy empha-
sizes the importance
of community ideas
for supplemental
environmental proj-
ects that could be included in the settlement of
enforcement cases.
EPA supported the publics right to know about
environmental conditions by significandy
expanding the national Toxics Release
Inventory. Citizens now have more information
about releases of toxic emissions in their com-
munities, which provides incentives for facilities
to drive their emissions down.
To provide citizens with more relevant informa-
tion, EPA launched a national program to pro-
vide real-time environmental data. Today,
• citizens in 85 metropolitan areas can get current
information on local environmental quality.
The Challenges Ahead
Over the past decade, EPA innovations have
improved the quality of the environment and
strengthened programs that protect human
health. Yet the greatest benefits are likely to be
seen in the future, for what we learned in the
last 10 years will be
carried forward in our
work. It will affect
how we solve the
problems still con-
fronting us today, like
smog and polluted
runoff. And it will
affect how we address •
new challenges as
they emerge.
We see issues on the
horizon that could affect environmental quality
and public health in significant ways. The long-
term effects of global climate change may cause
significant economic and environmental disrup-
tion. Emerging markets and a global economy
Through innovation, EPA has made
significant improvements that will
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benefit America today
and in the years to come.
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pose questions about how to meet growing con-
sumer demands in a sustainable manner. "We
don't fully understand how certain chemicals
disrupt reproduction and other basic biological
functions. And we've just
begun to consider the possi-
ble long-term impacts—and
unintended side effects—of
genetic engineering.
The future will undoubt-
edly raise other challenging
issues, but we are now bet-
ter prepared to respond.
"We know that a wide vari-
ety of environmental
strategies—both regulatory
and non-regulatory—are
possible. The greatest chal-
lenge in the future will be
to select among all the
options available to design
the most effective response
to existing and emerging environmental
problems.
In some cases, nationwide laws and regulations
will continue to be the best way to reduce risk .
But in others, tailored strategies that involve mar-
ket-based approaches, partnerships, or perform-
ance incentives may offer.
better results at lower costs.
Moreover, the stakeholders
o who join in partnerships will
vary, bringing different per-
spectives and resources,
depending on the environ-
mental problem in question.
Environmental solutions
through new partnerships
and new tools—that is our
expectation for the future.
And we will meet that
expectation with a spirit of
innovation that took root at
EPA during the 1990s, tail-
oring our responses to envi-
ronmental risks with unique
combinations of tools and partnerships that
best attain the nations environmental goals.
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Introduction
Times change, and so has the U.S.
Environmental Protection Agency
(EPA). Our overall goal is the same—-
clean air, clean water, clean land. But we're a dif-
ferent agency than we were 10 years ago. A new
emphasis on innovation has changed the way we
think and operate, leading to real environmental
improvements and real reductions in costs.
Regulatory programs are still the essential core
of our environmental system, but innovation has
provided new tools to meet future demands.
EPA has embraced innovation out of necessity.
tike any other organization, we needed to
evolve in response' to changes around us. Many
of our programs have led to remarkable environ-
mental accomplishments, such as the removal of
lead from paint and gasoline, the rescue of bald
eagles from the threat of extinction, and a ban
on cancer-causing PCBs (polychlorinated
biphenyls). But despite many accomplishments,
more kids were getting asdima, too many rivers
and streams were still not safe for swimming or
•fishing, and hundreds of toxic chemicals persist-
ed in the environment, accumulating over time.
"We also saw changes in the nature of the chal-
lenges we face—challenges like global warming
and loss of biological diversity. And develop-
ments like the shift to a service economy, the
emergence of e-commerce, and the appearance
of new biotechnologies presented challenges
potentially more difficult than any we'd seen
before.
At the same time, many players were taking on
new roles in environmental management. State,
local, and Native American governments were
becoming more active environmental leaders.
Some businesses began to prevent pollution and
do more than the law requires, because they saw
advantages in cleaner facilities and products diat
were more environmentally
sound. And the American peo-
X
pie began to demand a say in
local environmental decisions.
By the early 1990s, it was clear
diat we had to adapt, improve,
and expand die diversity of our
environmental strategies. We
recognized the need and the
opportunity to change the sta-
tus quo. Reinforced by the Clinton-Gore
Administration's commitment to reinventing
government, EPA set out to find more flexible,
cost-effective, and common sense ways to protect
public health and the environment. We took a
hard look at our missibn and our responsibilities,
and as this report shows, a great deal has changed
because of it. Innovation at EPA has led to sig-
nificant improvements in the way we go about
our work, and just as important, it has set the
stage for further improvement in the years ahead.
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Cleaner, Cheaper,
Smarter Programs
EPA's most important responsibility is to
protect public health and the natural
environment. Traditionally, we have
done this primarily through regulation and
enforcement. These approaches have produced
significant environmental improvement
throughout the United States. But there were
complaints about the costs of environmental
requirements, lengthy procedures, too much
paperwork, and overlap and redundancy across
different levels of government. There was fre-
quent litigation, and little incentive for compa-
nies to pursue environmental improvement
beyond that required by law. It was clear we
needed to change.
We have. In the past decade, we've made numer-
ous improvements—streamlining regulatory
procedures, increasing flexibility, and providing
assistance in meeting environmental responsibil-
ities. Today, EPA programs operate more effi-
ciendy and effectively, with cleaner, cheaper,
smarter results.
Contaminated Site Cleanup
Because of innovation, contaminated sites are
being cleaned up more quickly and at less cost.
In many communities, this allows redevelop-
ment of land that was once unusable, strength-
ening the link between environmental quality
and economic growth. Two examples of innova-
tion in traditional cleanup are the streamlining
of Superfund and creation of the Brownflelds
Economic Redevelopment Initiative.
Reforming Superfund
Superfund is the federal government's' pro-
gram to clean up the nation's hazardous waste
sites. For more than 15 years,
EPA has identified and ana-
lyzed tens of thousands of sites,
protecting people and the envi-
ronment from hazardous con-
tamination. But from the
beginning, this program has
been a target for critics.
Companies responsible for
cleanup saw the process as too
complex, too expensive, and
unfair in assigning cleanup responsibility.
State governments, nearby communities, and
Native American tribes felt their concerns
weren't adequately considered as cleanup deci-
sions were made. Few people were satisfied
with the way Superfund was working.
In 1993, we began to target some of
Superfund's weaknesses, applying new strate-
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gies to improve the program. Through inno-
vation, we succeeded on many levels—increas-
ing the pace of cleanups, reducing costs, and
introducing new, more efficient cleanup tech-
nologies. "We found ways to allocate responsi-
bility for cleanup more fairly and we made it
easier for stakeholders to participate in
cleanup decisions.
Cleanup is now completed at more than half of
the sites on the National Priorities List, and
substantial work is underway at most of the
others. Overall, the average time and costs asso-
ciated with cleanup have fallen by 20 percent.
These improvements are the result of innova-
tions that streamline decision-making and
improve efficiency.
For example, we developed new processes
that make it possible to update cleanup
decisions and use the most cost-effective
remedies available. We created a national
board of technical experts to re-evaluate
potentially high-cost remedies at specific
sites. If newer, less expensive technologies
become available, and they can do the
job as well, we now use them instead. We
also re-evaluate selections further along
in the cleanup process if new scientific informa-
tion, advances in technology, or other factors
suggest a less expensive, but equally protective,
remedy is available. Since 1995, we estimate
that innovations in remedy selection have saved
more than $1.5 billion.
We've also used innovative approaches to allo-
cate Superfund liability more fairly. Parties
who sent waste to a site are responsible for
cleanup, but sometimes we can't identify cer-
tain parties, or they've gone out of business.
The law allows EPA to divide the "orphan"
share of cleanup costs among identifiable par-
ties, and in the 1980s, that was what we usual-
ly did. Now, to spread the cost of cleanup
more fairly, at every eligible site we share the
cost of the "orphan" share with responsible
parties. By the end of 1999, we had offered
approximately $175 million in compensation
at 98 Superfund sites.
Another factor that slowed down Superfund
cleanups, and often contributed to the sense of
unfairness in the program, was the involvement
of thousands of companies that had contributed
small amounts of waste at Superfund sites. These
small volume contributors were caught up in
Superfund liability and third-party litigation, as
odier responsible parties tried to spread the cost
as widely as possible. Recognizing the burden
this created, we used our settlement authority to
remove small contributors from Superfund litiga-
tion. Through 1999, we've completed more than
400 settlements with more than 21,000 small
volume contributors nationwide.
Reusing Brownfields
The changes we made to Superfund make
cleanups faster, fairer, and less expensive at the
sites on the National Priorities List. But there
may be as many as 600,000 other contaminated
sites—in urban, suburban, and rural areas
alike—that do not warrant Superfund atten-
tion. These are less contaminated sites, but they
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clearly pose problems. They're often neglected
and decaying, sometimes abandoned, and they
can pose health risks to surrounding communi-
ties. Fearing potential Superfund liability, real
estate developers and other businesses have tra-
ditionally avoided them—building new devel-
opments and creating new jobs in suburban or
"greenfield" areas instead. As a result, during
the 1980s these so-called "brownfield" sites
were unused, undeveloped, and left behind.
Brownfields are a striking example of the links
between environmental quality, economic
growth, and community livability. These are
goals that can't be achieved through site cleanup
alone, and they can't be achieved solely by EPA,
state governments, and the parties responsible
for cleanup. The problems surrounding brown-
fields demand community-driven, bottom-up
solutions that involve all stakeholders, where
environmental cleanup is just one piece of
broader community revitalization.
In the early 1990s, EPA launched the
Brownfields Economic Redevelopment
Initiative, which paves the way for redevelop-
ment by forging cooperative agreements for
brownfield assessment and cleanup, clarifying
liability and other cleanup issues, creating part-
nerships among the public and private sectors,
and creating local workforce development and
job training opportunities.
Since 1995, we've funded 307 Brownfields
Assessment Demonstration Projects. This
money helps pay for the environmental assess-
ment and planning that allows communities to
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across One country The crtypf-Dajlas, Texas) for example, used its I
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lion in grants to 21 communities to train com-
munity members for jobs related to brownfield
.cleanup. Community revitalization requires
community involvement, so EPA holds com-
munity-wide discussions about how brownfield
sites should be used, and about related issues
like how much risk the community can accept
and which cleanup methods they prefer. These
community discussions help generate the local
support that is needed from beginning to end.
We have also tackled one of the biggest obsta-
cles to cleanup and redevelopment—fear about
potential liability. Now,
we enter into adminis-
trative agreements with
prospective purchasers
of contaminated prop-
erties. This assures pur-
chasers that they wont
be responsible for the
costs of cleaning up
contamination that was
on the site when they
bought it.
One of the most exciting things about the
brownfields initiative is that its success is gener-
ating more interest in this type of economic
redevelopment. Along with our federal, state, .
and local partners, we are demonstrating that
environmental protection can promote eco-
nomic and social growth in a way that puts the
community's needs first. Local contractors and
developers are expanding their businesses,
cleaning up sites, and building new facilities;
local lenders are financing community redevel-
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opment; and local people are getting training
and jobs. Most important, human health risks
are being reduced and hundreds of neglected
neighborhoods are becoming livable again.
Air Quality Protection
After 30 years and two major revisions of the
Clean Air Act, strong regulations still form the
core of national air pollution control. But
today, we're placing new emphasis on economic
efficiency, flexible operating procedures, and
industry consultations, providing incentives for
regulated companies to
be more willing, active,
and accountable part-
ners in protecting the
quality of our air.
Expanding
Emissions Trading
An excellent example of
this new emphasis is the
expanded use of mar-
ket-based emissions
trading, averaging, and banking in EPA's air
programs. They are helping to control major air
pollution problems like stratospheric ozone
depletion, and the nitrogen oxide (NOX) emis-
sions that contribute to smog in the East. And
they are also helping to achieve national goals
for cleaner fuels. Today, market-based approach-
es are built into virtually all of our rules for
motor vehicles and engines. For example, a
recent rule sets tighter standards for tailpipe
emissions arid requires cleaner fuels for cars and
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light trucks, but offers flexibility to vehicle
manufacturers and gasoline refiners.
Consistently, we find that market-based pro-
grams are leading to better environmental
results at lower costs.
The most well known air pollution trading pro-
gram is the one required by the Clean Air Act
to control sulfur dioxide emissions—the emis-
sions that help create acid rain. Between 1995
and 1999, national emissions of sulfur dioxide
fell by more than 4 million tons annually, large-
ly through emissions reductions at coal-burning
power plants. Rainfall in the eastern United
States is now about 25 percent less acidic, and
some ecosystems in New England are showing
signs of recovery.
While the 1990 Clean Air Act incorporated
innovative programs like sulfur dioxide trading,
EPA has developed innovative approaches that
make it more efficient to conduct. We worked
with the Chicago Board of Trade to establish
the nations first market for trading pollution •
allowances, and we now use electronic report-
ing to facilitate transactions between buyers
and sellers.
States have primary responsibility for imple-
menting national air quality standards, and
EPA provides them with guidance and assis-
tance in establishing trading and other mar-
ket-based incentive programs. For example,
based on the success of the acid rain trading
program, we worked with northeastern states
through the Ozone Transport Commission to
develop a trading program for NOX emis-
sions—the
primary ingredient
• in smog formation.
In 1999, this pro-
gram reduced NOX
emissions 20 percent
below what the law
requires and 50 per-
cent below 1990
levels.
Involving
Stakeholders for
Better Results
When developing
regulations, EPA
now routinely
involves the people
and organizations
who will be affected.
We consult with
them earlier in the
process, and in more
meaningful ways. In
recent years, state
and local air agen-
cies, industry, and community organizations
have participated in developing the regulations
related to acid rain, air toxics, and emissions
controls on heavy-duty trucks and buses.
The National Low Emissions Vehicle Program'
is a good example of what can be achieved
through consensus when there are incentives for
agreement. This program was created in 1997
when EPA mediated an agreement among the
- Free Market Jracling
Because ofstrong partnerships with industry
** and the, use of a flexible, market-based strat-
~ ^j?"- T ~~~ i ,"**.**«•:-'• . *&. , °V
J egy the pjhaseput of ozone-depleting chemi-
cafs was muchjess expensive/than once „
predictedJn 1988 EPA estimated that a 50
* -T" ' ? V -e^ ^
percent reductionxm chlorofluqrocarbons by
^ 1998 would cost $3 55 per kilogram five
~ years later, a fester 106 percent phase-out
* using market forces*was estimated to be sig-
"-^niffcaritly less—bnly $2 45*per kilogram"
MarkeiTorces are Hiving the'sarqe effect^on
the coste ot£ont£gl|]ng acid rain Now,
^ "annual costs of the ^ad_rain trading pro- -
gram-are 75 perceTrtTlowerthan those (ortlal^*
^_ "* ^ *V $*3^'KSi~^^> *"<*** *** 1&^ %*•.»•-- -i^^n
ly predicted by indusjiy Trading has allowed .
? "the utilrly industry tcTminimize compliance ^
costs, "and itjias spurred'competrtion in
— othefsectqrs of the economy such as
freignl: hauling, coal, ana cleanup technolo-
of which contribute to lower costs
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states, U.S. automobile manufacturers, and
other stakeholders that calls for cars and other
vehicles to be 50 percent cleaner than 1999
models. Automakers voluntarily agreed to meet
the tighter standards because it helps them
avoid a patchwork of different state emission
requirements. It also benefits the public by
delivering cleaner cars five years sooner than
EPA could otherwise have required. These
cleaner vehicles will be available nationwide in
model year 2001.
Overhauling Emissions
Standards
Another innovation that is
saving money while improv-
ing environmental quality is
our recent overhaul of the
traditional process for evalu-
ating whether new cars and
light-duty trucks meet emis-
sions standards. We streamlined traditional
emissions testing, and required automakers to
verify performance once the cars were sold
and on the road. The revised rules will save
the industry an estimated $55 million annual-
ly, reduce paperwork by as much as 50 per-
cent, and save valuable time. In exchange, the
industry will conduct more extensive emis-
sions testing of vehicles in use. Because of
these new approaches, we've made it cheaper
and easier for companies to comply while also
ensuring that vehicles meet public health and
environmental standards under real-world
driving conditions.
Water Quality Protection
Today, Americas water resources—our rivers
and streams, lakes, and coastal waters—are
being stressed by pollutants and sources differ-
ent from those common 20 or 30 years ago. In
the 1970s, poor water quality was linked to
large pollutant sources like sewage treatment
plants and industrial facilities. Much of the
water pollution today is linked to millions of
smaller sources. Silt, sewage, disease-causing
bacteria, excess nutrients, toxic metals, oil, and
grease are entering waterways in runoff from
agricultural lands, residential areas, and city
streets; they are even settling into the water out
of the air. To a large extent, todays pollution is
a byproduct of the way people live, work, recre-
ate, and commute.
Moving From "End-ofiPipe" Controls to
Tailored Watershed Strategies
Our approach to solving water quality prob-
lems has changed dramatically. Starting in the
early 1990s, we began modifying our nation-
ally uniform, pollutant-by-pollutant control
strategy to focus not just on water quality, but
on the overall health of watersheds. Just like
the pollutants we are targeting, the protective
actions we now take differ from place to
place. And when we design them, we consult
with the people most directly affected—the
people living within the watershed. This more
holistic approach promises greater environ-
mental benefits at less cost, with more com-
munity involvement.
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EPA, state, and tribal officials are working to
improve data systems so that management deci-
sions in individual watersheds will be better
informed. We have redesigned our national
water quality database, STORET, making it
easier for government agencies and volunteer
groups to enter data about watershed condi-
tions. Through our Internet-based Watershed
Information Network, we have provided a road
map for citizens and others to find information
about watersheds and the resources available for
protecting them.
We are also working with the states to put new
and improved information to use. Today, all 50
states, six territories, and 80 tribes have com-
pleted comprehensive watershed assessments—
the first coordinated statement of water quality
priorities in U.S. history. States are also consoli-
dating information from water quality, drinking
water protection, agricultural, and natural
resource protection programs to determine
which areas need action. Many states are com-
pleting watershed action strategies, which will
serve as comprehensive plans to restore water-
sheds and better integrate and manage federal
and state programs.
EPA's watershed approach can also be seen in
our traditional regulatory activities. We now
coordinate permitting, monitoring, and
enforcement requirements for municipal and
industrial facilities within a specific water-
shed. The drinking water program helps com-
munities take watershed approaches to protect
both underground and surface sources of
drinking water. The wetlands program works
with other federal agencies to preserve and
protect wetlands on a watershed basis rather
than relying solely on a regulatory, permit-by-
permit approach.
To successfully protect watersheds, adequate
funding is essential. Since 1989, the State
Revolving Fund has loaned more than $830
million for the construction of sewage treat-
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New sqentificjtools make rt possible to more clearly understand the
Ijnk between" human activrties-and Water quality in watersheds For
& ^ "*" ^ ^v ^ -!"*- "*" ' / *^
^-example, in the micf Atlantic region, newly-avaijable satellite imagery
allowed EP/CtcTsee the regiorj^s landscape Jo a degree ^of resolution ^
3- never acbievefiBefore~Worl < a ~~ « J <,
ment plants and other water quality activities.
But along with more traditional projects,
many watershed partnerships have taken
advantage of recently expanded funding
opportunities to address other priority needs,
including wetlands restoration and polluted
runoff controls.
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Through watershed approaches, we are saving
money for communities and the government,
by leveraging the financial resources and coop-
eration of the people
living in the water-
shed. "We are saving
money for the private
sector by using strate-
gies—like pollution
trading, wetland miti-
gation banks, and
streamlined review
procedures—that
make development
permits more pre-
dictable and less com-
plicated. Our innovative watershed program is
enhancing local and regional economies in ways
that are environmentally sound and consistent
with community values and goals.
Compliance Assistance
Much of Americas environmental progress over
the past 30 years is the direct result of EPA's
vigorous enforcement of strong environmental
laws. Though enforcement has worked, we
want to encourage industries and facilities to
comply with the law voluntarily. To do this, we
are making greater use of compliance assistance
and incentives, and developing policies to help
small businesses and small communities, in par-
ticular, meet their environmental responsibili-
ties. And we are targeting our efforts to focus
on the highest environmental risks and the
industry sectors that need help the most.
Providing Help in Understanding
Requirements
To help industries comply, we've partnered
with industry associations, environmental
organizations, universities, and other govern-
ment agencies, to launch 10 compliance assis-
tance centers, all accessible through Internet
sites. Some also offer toll-free hotlines. Each
center serves a specific audience by explaining,
in plain language, the federal environmental
regulations that apply to them. Eight of the 10
centers serve sectors that include many small
businesses. The ninth center serves local gov-
ernments, and the 10th serves federal agencies.
Each center provides a range of information
services: compliance guidelines, pollution pre-
vention information, summaries of EPA regula-
tions and policies, access to e-mail discussion
groups, vendor directories, links to other assis-
tance providers, and environmental manage-
ment software that can be downloaded from the
Internet. Some also provide online access to rel-
evant state regulations. Responses to recent sur-
veys show these compliance assistance centers
get results. Of the users who responded:
• 85 percent rated the assistance as either
very useful or useful;
• 70 percent took positive action (e.g.,
improved waste handling, changed a
production process, obtained a permit); and
• 58 percent made environmental improve-
ments (e.g., reduced air emissions, con-
served water).
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We have created other tools to help businesses
comply with environmental laws on an indus-
try-by-industry basis. Sector notebooks—writ-
ten for specific industries—provide owners
and operators of regulated facilities with plain
English guides for understanding their regula-
tory obligations. This kind of information is
not only useful to busi-
nesses, it also helps regu-
lators, educators,
consultants and other
organizations under-
stand and assist industry
with environmental
management issues.
Encouraging
Self-Audits
Another way we are
helping companies com-
ply is through an audit
policy that encourages
them to complete their
own environmental eval-
uations. The idea is to
have companies find and
fix problems on their
own. If they do, we will
waive or reduce potential
enforcement penalties, as long as die company
was not involved in criminal behavior. During
the past four years, 675 companies have come
forward to disclose potential violations at more
than 2,700 facilities.
Providing Special Help to Those Who
Need It Most
One other recent change in our compliance
program is that our work is more targeted.
Today, we are identifying specific industry sec-
tors as priorities.for special compliance assis-
tance. For example, in 1996, EPA's regional
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office in Atlanta targeted electroplating compa-
nies and dry cleaners in.Georgia and Florida to
help them meet new national emissions stan-
dards for hazardous air pollutants. The rate of
compliance improved dramatically. Georgia
recendy reported an 81 percent compliance rate
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Seif-Poncing Pays Off
• * *•»*••* »
!; Companies that take advantage of EPA's audit policy may find it pays off
'•'"• in a jjlg way. That's been case in the telecommunications industry,^ ^^
.»:', I9SJ£ "GTE .used this policy to resolve spill preventiortand right--tp-kiow'
s.•"violations at 314 facilrties in 21 states. They paid a $52,00(5 penalty, the
','' atiount they saved while noncompliant^ut in, light of their outstanding
cooperation in resolving this matter, EPA waived nearly^|2,4milhonin ^
.;,, potential penalties. Last year, 10 more telecommunications companies
:; foilowed GTE's lead. They found and promptly corrected 1,300 viola-
;":,:tpns at more than 400 sites. They were fined approximately $ 129,000, ^
but may see waivers totaling more than $4 2 million. V
•. ' "';.' ' "i- "^ 3Li
for chrome electroplaters, and Florida reported
that 64 percent of targeted dry cleaners entered
the regulatory system as a result of this compli-
ance assistance.
Similarly, in 1997, Virginia, Maryland, the
District of Columbia, and the Korean Dry
Cleaners Association of Greater Washington
formed a partnership to reduce emissions of per-
chloroethylene from area dry cleaners. The part-
ners set up a mentoring program in which
experienced dry cleaners, trained by EPA and
state environmental offices, help less knowledge-
able dry cleaners better understand—and comply
with—environmental requirements. The compli-
ance rate of participants is estimated to be 20 per-
cent higher than other dry cleaners in the area.
Our new compliance assistance techniques are
enhancing the Agency's traditional enforcement
and compliance programs. Today, we can rely
on more companies to comply because they are
learning what they have to do and how to do it.
And better compliance means better environ-
mental results—the ultimate goal of environ-
mental law.
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Partnerships for Results
Over the past decade, it's become clear
that action by EPA alone wont yield
the environmental quality that
Americans expect. To meet national environmen-
tal goals, we need action by all levels of govern-
ment, businesses, communities,
and individuals alike. In many
cases, die most effective way to
get results is to work together in
cooperative partnerships.
Strong partnerships are vital to
long-term environmental protec-
tion for bodi economic and envi-
ronmental reasons. Partnerships
allow government agencies to
leverage limited resources with each other and
with the private sector. They help eliminate over-
lap among different levels of government, making
their actions more efficient and less complicated.
Partnerships with businesses can identify ways to
prevent pollution and save money at the same
time. And partnerships at the local level can cre-
ate better solutions to local problems.
Partnerships With State
Governments
Because EPA and state governments share
responsibility for protecting human health and
the environment, a strong partnership between
us is essential. In recent years, states have
become stronger environmental managers, and
a new relationship with the states is emerging—
one that allows us to adapt to changing priori-
ties and to experiment with new ideas. We each
have unique roles to play, but by cooperating
and collaborating we are getting
better results at less cost.
Today, the states and EPA are
working hard to make this new
partnership succeed. Separate pro-
grams for air quality, water quali-
ty, and waste management still
pose some obstacles that we need
to overcome for the new system to
work well. But we are moving for-
ward and finding ways to address environmen-
tal problems in more holistic, comprehensive
ways. Together, we are making tough choices
about competing priorities in the face of limited
public resources, and we are developing more
meaningful measures of environmental results.
Creating Better Working Relationships
Because we are committed to improving envi- .
ronmental programs, in 1995, the states and
EPA created the National Environmental
Performance Partnership System. Through this
framework for collaboration, we joiridy set pri-
orities and clarify our roles and responsibilities.
In doing so, we are creating working relation-
ships that are more flexible and resilient.
To meet national
environmental goals,
we need action by all
levels of government,
businesses, communities
and individuals alike.
-------
i
The centerpiece of the new system is a
Performance Partnership Agreement, which sets
expectations for performance yet offers flexibili-
ty in meeting goals. This agree-
ment is an innovative way to
identify priorities, solve problems,
and make the most effective use
of our collective resources. It
emphasizes performance rather
than process and environmental
results rather than administrative
details. It gives a state greater
freedom to focus resources on its
highest environmental priorities
and to select the best strategies
for getting results. Prior to devel- •
oping an agreement, a participat-
ing state assesses its environmental problems
and conditions, while actively involving citizens
in the process. Based on this information, the
state then proposes environmental and public
health objectives along with a plan of action.
This forms the basis for negotiating an annual
agreement with EPA. To date, 35 states have
established agreements with the Agency.
Another feature of the new partnership system
is flexibility in administering grants. States now
can consolidate a variety of individual grants
into one. A Performance Partnership Grant
reduces administrative burdens by cutting
paperwork and simplifying financial manage-
ment. It also allows the states more flexibility to
use grant money to address their most pressing
environmental problems. Forty-five states have
chosen this option.
The National Environmental Performance
Partnership System has led to some important
developments:
• Maryland has seen its administrative report-
ing requirements cut in 13 areas, and the
goals and objectives we jointly identified
serve as the environmental component in
the state's strategic plan.
• Florida's emphasis on showing results led
the state to develop a new performance
measurement and tracking system that
received an "Innovations in Government"
award from the Ford Foundation and
Harvard's Kennedy School of Government.
• Mississippi's interest in targeting resources
to solve priority problems resulted in a
reorganization around specific functions,
business.sectors, and geographic areas.
• Minnesota shifted staff and resources from
the main state office closer to where the
real problems occur—out in the districts.
• Washington saw the paperwork associated
with its annual work plan for grants fall by
an order of magnitude—from about 40 to
four pages.
Improving the System
Strengthening our working relationships set the
stage for another important development
between the states and EPA—consensus about
how to test new ideas that would still work
hand-in-hand with federal laws. Based on the
states' growing interest in improving environ-
-------
mental management, we negotiated an agree-
ment that expresses our joint interest in innova-
tion and specifies how it should occur. It
encourages states to use the flexibility available
in existing regulations—allowing new ideas to
be tested while assuring consistent levels of
environmental and public health protection
nationwide.
Our relationship with states is evolving, leading
us to work in a more collaborative, coordinated
manner. Together, we are applying innovative
approaches to traditional environmental prob-
lems, and we have begun to see results. More
importandy, we have set die stage for greater
cooperation and progress in the years ahead.
We are only just beginning to realize the bene-
fits of our new working relationship, and the
spirit of innovation now reflected in so much
of our work.
Partnerships With Businesses
An improved relationship with industry is one
of the most telling indicators of change at EPA
over the past decade. Today, our partnerships
with businesses often lead to lower costs, less
paperwork, and better environmental results.
Working together, we find that strong business
performance and strong environmental per-
formance often go hand in hand.
In our early years, good corporate citizens were
given little incentive to do more than the law
required or to invest in new, more environmen-
tally sound technologies. As a result, through
the 1970s and 1980s, the entrepreneurial spirit
and technical know-how of private industry was
not fully applied to environmental improve-
ments. Today, EPA and businesses are working
together and finding new ways to meet environ-
Tollutiort Prevention inJDeveloping
*
Thousands of^mencan cofnpanies are lowering production costs^and
improvingjenvir^nrnental performance by^redesigning productdevelop-
* Tment ar^oiarjufajctunng'processes to""nSinjmi2e pollution 'Eastman^
;*vKodak"made a corporate coTnnr\rtrrLer^^?educe all warte and ^nis-
<•* sions, and it's paying off The company wpFked with EPA^to evaluate a ,
' * jiew~7nethooL of predicting t^e pbten^aJ^nviirorTOen^al,,^^^ ofjdiemP
„ <• cals uoder~devefopment Based "blithe Jjesuits, Eastmari Kdclak reforrro-
5- Tatedjive chemicals, improving-theireovi^nnoe^tafperfOTnSi^e
r-"significantty and saving thousands of "doiiar||in cleveJopment^costs^The
_ ^ewTprocepure sfso lowered the- costs of t-cgqcrty"testing, rbducjd *
~ product development time, decreased regutatqfyXincertamty, and
^ helpedmcve the chemicals moreqaickTy to market""V" ^ "
_
mental and economic goals simultaneously. We
are using more negotiation and consultation to
reduce litigation, and everyone is benefitting
from the change.
Testing New Ideas Through Project XL
A good example of die short-term results—and
long-term promise—of our partnership with
business can be seen in Project XL. Launched
in 1995, this innovative program tests ideas that
could make the nation's environmental protec-
tion system more efficient and effective.
-------
Through Project. XL- we
oflfer participants reduced
administrative burdens
or increased regulatory
flexibility if they take
steps to do more than
just comply with regula-
tions—achieving results
that go beyond what the
law requires. Depending
on the outcome, we
decide whether these
innovations can be more '
broadly applied to other
facilities. This willingness
to experiment outside
the regulatory arena sig-
nifies our emphasis on
getting results, not sim-
ply enforcing regulatory
processes.
Not surprisingly, the novel approaches emerging
from Project XL present EPA with issues that
we've never faced before. "We had to create new
ways to allow companies to experiment, but still
hold them accountable for performance and
results. We had to make sure that no one was at
risk, and we involved communities and other.
stakeholders at all stages of the process. "We also
had to ensure that prospective environmental
improvements were realistic and attainable.
Despite these challenges, Project XL is living up
to its potential. Leading companies have joined
smaller businesses, state agencies, and federal
facilities in experimenting with new ideas that
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Environmental Impacts^ ^ ^ — IT
„, At its, pulp'milt in OglethorpeiGec%ia,>iveyerhaeuser,is testing an
alternative facitrty-wide permit thatteduces air pollution, water pol,~
ton, and solid waste. Thetr goaf is to*become a Mpfjnum'lpipact Till*
In exchange, the company receives flexibility to consolidate reports, use
alternative' means to meet new clean air requirements^and maj—!-«VI » *"*"^. *•"""' ' ^r ^^^i *| &, #K ~~ J/1" *- "**.
ther savings of up to $29 million, over-the life of the project As they
continue driving emissions and pollutants down, they will also reduce,,,_
hazardous waste, useWorefprotective forest management ••practices1,:' J^
™ „ -T ^ "• ."^ > s^f^^l'^^
and cut water use, by one millfon"gallons per day ^ ^ •'""
simplify and improve-the current regulatory sys-
tem. They are also moving beyond simply com-
plying—getting environmental results that are
better thari those of the past. Today, 20 XL
projects are underway to test new approaches to
managing wastes, reducing air pollution, and
protecting water quality. More than 30 other
projects are being developed or negotiated. We
believe all of these projects show promise for
broader application in the future.
Participants in Project XL point to numerous
benefits. Besides the obvious environmental
improvements, businesses have streamlined
administrative processes, improved their rela-
tionships with stakeholders and regulators, and
-------
made better use of their employees' environ-
mental expertise. Perhaps most important from
the business perspective, having more opera-
tional flexibility has allowed diem to cut costs
and avoid regulatory delays—results that
improve profits and competitiveness.
But Project XL is not intended to simply bene-
fit a relative handful of participating companies.
On the contrary, the real value of this program
is diat it tests improvements that could benefit
everyone—companies and communities alike. •
Our goal is to apply the lessons we learn from
these projects as widely as possible, and then
integrate them into common EPA practice.
Superior environmental performance, meaning-
ful stakeholder involvement, regulatory flexibili-
ty, and transferability are innovations that have
been brought to the forefront by XL. Our chal-
lenge ahead is to make these innovative ideas a
permanent part of EPA's culture.
Creating Partnerships That Protect the
Environment and Save Money
EPA and businesses are realizing that strong
environmental and economic performance are
not mutually exclusive. Throughout the private
sector, companies are preventing pollution, con-
serving water and energy, and cutting waste
because doing so cuts operating costs and
increases profits. They also see environmental
performance becoming a major consideration
for many of their customers. So they are
demonstrating environmental stewardship and
making improvements that go beyond what
regulations require.
In support of greater stewardship, we have creat-
ed voluntary partnership programs that help
companies make environmental improvements
and improve overall efficiency. Sometimes these
programs target pollutant emis-
sions that are not currendy regulat-
ed, like greenhouse gases;
sometimes they target business sec-
tors that aren't regulated; and
sometimes they emerge simply
because EPA and the involved par-
ties recognize an opportunity for
mutual gain. In all, EPA has more
than 20 national, voluntary part-
nership programs, and many EPA
regions have their own programs
based on regional priorities.
One example is Waste Wise, a
national program that helps com-
panies reduce solid waste and
material use. Today, more than 900 organiza-
tions from more than 50 business sectors have
enrolled in Waste Wise. Among them is
Herman Miller, the world's largest manufactur-
er of office furniture. After becoming a Waste
Wise partner, Herman Miller reduced its use of
packaging material for finished goods by 50
percent, and eliminated 500,000 pounds of
wood pallets and close to 1 million pounds of
corrugated boxes. As a result, the company now
is saving $4 million per year.
Other voluntary programs focus on making
changes that can improve environmental per-
formance across an entire business sector. The
printed wiring board industry, for example,
-------
joined EPA's Design for the Environment (DfE)
Program to find ways their members could
operate in a more efficient, environmentally
sound manner. In particular, they were interest-
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More Choice in Environmental Technology
An EPA partnership with other"public'andprivaltVsectpr organizations
focuses on new environmental technology.' Each year^many companies
and government agencies face investment decisions* related to environ- ^
mental technology. To simplify their decision-making and encourage ¥ ^ /",
new technology development, EPA created "aprogram fo vehfyj per-^ '^
foi'mance ancj reassure purchasers abouttheir choices, this program
verifies technologies for addressing a wide range* of problems, such as
controlling Cryptosporidium in drinking water, detecting leaks from jmtu:
ral gas pipelines, arid measuring pollutant emissions intone air, * , ^ ^"^
Designed with active participation of more than 850* environmental
technology customers, it is now the most comprehensive program ofrts
iype In the world. "1 "' " /•- )*
ed in preventing pollution and reducing the
toxic chemicals that are traditionally used in
manufacturing their products. They have suc-
ceeded: the industry has cut its annual use of
formaldehyde by 240,000 pounds. They've also
reduced water use by 400 million gallons, and
energy use by 15 billion BTUs.
More than 7,000 organizations now participate
in EPA's voluntary partnership programs. The
latest annual results show they can make a big
difference. Collectively, in 1998, participants
conserved 1.8 billion gallons of clean water,
eliminated 7.8 million tons of solid waste, and
prevented air pollution equivalent to taking 13
million cars off the road. They also saved an
estimated $3.3 billion.
Along with technical assistance and potential
cost-savings, several voluntary partnership pro-
grams also offer public recognition for superior
environmental achievement. The Energy Star
program, which works to improve energy effi-
ciency, gives participants the right to display a
distinguishing logo if their product meets cer-
tain energy efficiency criteria. Recognition can
help can drive the market to offer consumers
more environmentally sound products: about
85 percent of all computers sold today feature
the Energy Star logo.
Rewarding Businesses for Doing More
For the past three decades, we have focused
intently on .compliance. Companies have been
expected to meet environmental standards, and
they received penalties and legal action if they
failed. But, in general, they've been offered little
or nothing if they decided to do more. We see
this as a missed opportunity for encouraging
better environmental performance.
EPA is now developing a new program—the
National Performance Track—to reward good
environmental performance. As currently envi-
sioned, this new program would provide
rewards and recognition to top performing
companies and incentives for others to improve.
EPA sees this as an important step towards
building a more performance-based system of
environmental protection and a more positive
working relationship with industry.
-------
EPA's partnerships with businesses generate
benefits for the environment and the economy,
and we expect these partnerships to grow
stronger in the future. Clearly, recognition and
incentives are going to become more important
drivers of environmental stewardship in the
years ahead. We are committed to working
with our private sector partners to develop
their environmental management capabilities as
fully as possible.
Partnerships With Local
Communities
We're building partnerships with states and
businesses, and we're also building partnerships
with American communities—helping them
address their local environmental issues more
effectively. This collaboration is helping com-
munities solve some of their most difficult envi-
ronmental problems such as polluted runoff,
brownfields, and urban sprawl, to name just a
few. Our partnerships with communities are
designed to find innovative ways of assuring
environmental, economic, and social well-being
so that citizens now and in the future can enjoy
a higher quality of life.
Our typical role in these partnerships is to pro-
vide resources, information, and technical assis-
tance in support of local decisions. We reinforce
community initiatives to restore the local envi-
ronment while strengthening the local economy
in the process. These partnerships work because
they respond to each community's unique char-
acteristics and concerns.
Helping Communities Preserve
Environmental Quality
One way we're supporting communities is
through tools that help them make more
informed development decisions. Development
patterns—the physical location, density, and
design of buildings; proximity to other com-
mercial and residential areas; and transportation
options—have a direct effect on public health
and environmental quality. For example, the air
quality in many communities today is threat-
ened by development that makes people
dependent on their cars.
Today, development is consum-
ing valuable green space at an
aggressive rate. Nearly 11 mil-
lion acres of forest, crop land,
and open space were converted
to urban and other uses from
1992 to 1997, more than dou-
ble the rate in the 1980s. Water
runoff from roads and parking
lots is one of the most impor-
tant factors affecting the health
of rivers, lakes, estuaries, and
drinking water sources.
Recognizing the environmental
problems caused by develop-
ment, in the early 1990s, we
decided to take innovative, non-regulatory
action to help communities make more sus-
tainable development decisions. Our assistance
is profoundly changing the relationship
between the federal government, state and
-------
* i a
Growth Linked to Environmen
.Improvement
.... «..«».. ..,«..... | .......^^ ^ »; ^ *» (i,
In northeast Ohio, population and economic growth coupled with ^
, sprawling development have placed unprecedented strains on regional
ecosystems, utility systems, and transportation. EPA's Vegcf gFotfice in ^.
Cleveland is working with communities in the area to help solve their
air, water, and waste management problems in a way that respects ^ ^ ;,
community values and needs: * *
One such effort the Toxic Sweep^fask Force, is helping clean"up*
brownfiefds. which in turn is spurring* economic development in^urban *^'
cores. Working througtvthis group, the city and fhe state nave*emp(ia-
sized local responsiblfiy and local solutions,'calling upon EPA only when
federal involvement is needed. In six year? of operation, they hav%^^v^.
pjpned up( more than 100 properties, By supporting commu'orfy*-based~"
,'effor^', EPA is'able to use rts resources more'efficiently, and only when
focal resources alone can't do the job. -, " * %*~"-^~^*«
^PA's participation is helping to restore streambanks in *tne CuyaVioga
River watershed, protect fragile ecosystems, update water qu^'rty ^an- ^
agement plans, and enhance community participation. „ - " ,
local governments, and the private sector.
What has emerged is a collaborative, coopera-
tive, and flexible model for solving develop-
ment-related environmental problems at the
local level.
Sharing Information for Smart Growth
Another way that we are putting our innovative
ideas into action is through the Smart Growth
Network. Established in 1997, this network
includes architects, planners, government offi-
cials, developers, environmental groups, and cit-
izen organizations. It has grown rapidly, now
including more than 700 individual members
and 24 partner organizations.
Communities are looking to the Smart Growth
Network for many types of development-related
information, including examples of best devel-
opment practices and transit-oriented design;
access to the latest research on development,
transportation, and air quality; and strategies
for protecting open space while insuring the
availability of affordable housing. EPA support
goes to help fund a variety of services, including
newsletters, case studies, and an Internet site
that delivers information to more than 100,000
.visitors per month.
Alone and in partnership with others, EPA is
helping communities design new development
policies that yield better environmental and
economic results. One example is our work
with the U.S. Department of Commerce, the
U.S. Conference of Mayors, and the cities of
Baltimore, Chicago, and Dallas to explore the
impact of air quality regulations on brownfields
and inner city development. Because such
development can help improve regional trans-
portation patterns and thus reduce vehicle-relat-
ed air emissions, we are encouraging more
communities to use this alternative to preserve
green space, protect air quality, and boost eco-
nomic growth in inner city neighborhoods.
Working With Lenders and Builders to
Reduce Pollution
Location Efficient Mortgages are another
example of an innovative program EPA has
supported. These mortgages are a voluntary
-------
market mechanism that communities can use
to encourage development patterns that
. reduce air pollution associated with automo-
bile use. EPA and the U.S. Departments of
Energy.and Transportation supported the ini-
tial research that showed households in popu-
lous areas with good access to mass transit
and other services own fewer cars, drive less,
and spend significantly less money on trans-
portation. As a result of this research, EPA has
supported the efforts of a consortium of non-
profit organizations to work with lenders to
develop a mortgage that allows people to use
their transportation savings to qualify for
more valuable housing.
Thanks to this research and a $120 million
mortgage underwriting experiment sponsored
by Fannie Mae, the Location Efficient
Mortgage is a reality today. Initially, the pro-
gram will be available in four cities—Chicago,
Seattle, the San Francisco Bay area, and Los
• Angeles—to test the concept under actual mar-
ket conditions.
"We also are working with- the National
Association of Home Builders Research
Center to provide communities with technical
information and direct assistance on innova-
tive site preparation techniques such as con-
struction and demolition waste recycling.
These strategies offer traditional environmen-
tal benefits such as resource conservation and
energy savings while also creating new local
job opportunities.
Partnerships With Other
Federal Agencies
Our emphasis on building partnerships also
extends to our relationships with other federal
. agencies. Over the past decade, agencies like the
U.S. Departments of Transportation, Energy,
and Agriculture have become more environ-
mentally conscious. Today, we
are working with our federal
partners in many areas to help
advance environmental and pub-
lic health protection capabilities.
One area where we are collabo-
rating with other federal agencies
is children's health. We are tailor-
ing our own efforts, and combin-
ing them with the activities of
several other federal agencies, to
protect America's children from a
multitude of risks.
In the past, EPA based its stan-
dards for protecting public
health on risks to adults.
Scientists at. the time assumed
that all people were comparable in terms of
their response to pollution exposure. As we've
learned more about the effects of pollutants on
human health, we've come to realize that chil-
dren need special attention.
In May 1997, President Clinton signed an
Executive Order requiring federal agencies to
place a high priority on protecting children
from environmental and safety risks. In
-------
CooperativeResearch Protec&Childfenls ffealfh „
L ««•» ......*»... • *»...•
EPA's research agenda on children s health includes extensive
* 1 .,.. . > Ji * *>
coordination with
federal agencies on critical topics, such as;
• Asthma. EPA and the"*U.S. Department of Health and Human Services (HHS) have a _
comprehensive, cross-government strategy £o sturdy environmental factors that place ^,
a crucial role in childhood asthma. *"" ~ * jr^T . ^ ^v ^4" ^ •
• Pesticide's on Food. EPA*and HHS are wotfeng wth\i£|/.S/!>epartmefl"of*"'
Agriculture to design new surveys on Infant and chitcfren gating" habits to assess
dietary nsks from pesticides. ** »•"," ™"x "T -v/v"~s£ -J ''-* >' J
' * * ""Childhood Cancer. A'multi-agency1 public health plan has'b"ee1|^W^pto%tudy ^ __
elevated rates of childhood leukemia and cancers in^the Joins River and Dover lowjv';
ship area of New jersey, an area wrth two Superfund sites. < -'
response we formed a new Office
Health Protection that would cany
Executive Order, integrate EPA
behalf of children, and coordinate
with other federal agencies.
of Children's
out the
on
those efforts
efforts
the tools at our
Today, EPA is using virtually all dh
disposal to reduce risks for this esf ecially vul-
nerable segment of the population
actions, public education, and an ;
research strategy.
regulatory
ambitious
While government and other
organizations can help protect
children with national pro-
grams, parents and other local
care givers have the daily, ongo-
ing responsibility to reduce the
environmental risks faced by
children. By raising awareness
and providing information and
education resources, EPA and
other federal agencies are help-
ing parents, health-care
providers, and others protect
children from environmental
risks in their homes, schools,
day-care centers, and hospitals.
Our children's program is a
dynamic example of how different federal agen-
cies can integrate and coordinate their activi-
ties—regulatory and non-regulatory—to reduce
environmental risks. A program like this would
not have been possible 20 or 30 years ago,
when cross-media and cross-agency action was
virtually unheard of. In the future, it may pro-
vide a model for protecting all people.
V*^
r* »j
-------
A Stronger Public Role
There is little doubt that Americans are
deeply committed to protecting our
environment. Their concerns led to
enactment of the federal laws that we now
work so hard to administer. But in recent
years, people across the country have begun to
play an even more personal and active role in
environmental protection. They have changed
their individual and family behaviors in a
number of ways by recycling, joining car-
pools, or buying environmentally-preferable
products. And they have
demanded a voice in com-
munity decisions that affect
their health and the quality
of their environment.
Because Americans want to
be actively involved in envi-
ronmental decision-making,
we are increasing public par-
ticipation in our programs
and providing more environ-
mental information to help the public under-
stand critical, and often complex, issues. As a
result, the voice of the American people is
more well-informed than ever before, and it is
being heard more clearly and more often at
every level of government where environmen-
tal decisions are made.
Greater Public Participation
Today the public influences what we do day-by-
day far more direcdy, and far more effectively,
than ever before. Public participation has
become a routine part of how we do business.
Getting Stakeholder Input on
Environmental Standards
One good example is the process we use for
developing control technology standards for
toxic pollutants under the Clean
Air Act amendments. The law .
requires that we establish such
standards for 174 categories of
industrial facilities. To meet
tight statutory deadlines, we
developed an innovative process
to get the public involved in
gathering data and developing
standards. We talked to state
and local air quality agencies,
industry, and local organizations
to get as much information as we could. By-get-
ting these groups involved at the beginning, we
got more done than we could have alone. Our
discussions reduced the costs of developing
standards, and also improved our working rela-
tionship with the parties involved.
The voice of the
American people is
more well-informed
than ever before, and
it is being heard more
•
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Creating a Forum for Sharing Ideas
and Concerns
The Common Sense Initiative was EPA's most
ambitious forum for involving stakeholders in
improving environmental management. In
1993, participants began work to develop
, , * i , .** A , **, **VJ ' ' ; . • *V»*
Cor^surners Help rmprove Product Labels
******** ...... * ............. b .............. A" ........... »«>,
Label information that's clear and direct will help consumers make
, wiser choices in 'choosing* ancl using household products. Through* the~
* 'consumer Labeling Initiative, we're working wrtfi industry an'd other
groups to prevent pollution by promoting safe use and disposal of com.
mon household products. Key to success1 in this effort is'advice.weV
getting from consumers -themselves. * *"
, ,• ,4, «, , >-
(n 19%, we went'directly to consumers to tearh what tiieythpugnt
about existing labels on everyday products like roacb. Jailers and bath-
room cleaners. They told us where the problems were and suggested',
solutions. Over the next "two years, some 6f the product manufacturers
expanded this research and got more customer input oh How' to make
" labels easier to understand. >
.'",^'f" *s*T , .<-&iSJ?*-
Using what was learned, we're now working'wrth companies to make
^formation on labels simpler and easier to follow, If people can easily
Understand information on the labels," they can choose the rigHtprod-r
ucts for their needs, avoid accidents, ancTsafely dispose ofthese" prod-
ucts 'withoui damaging the environment
'
&&•
i-S » t '
"cleaner, cheaper, smarter" environmental pro-
tection strategies for specific industry sectors.
The goal was to create a more tailored system
of environmental protection that took into
account the unique circumstances of different
industry sectors, while also addressing the
needs of other parties that had a stake in these
new strategies.
"We selected six industries that represented a
cross-section of American business. We invited
their representatives, along with representatives
from states, environmental arid public interest
groups, and the environmental justice commu-
nity, to work together to find better ways to
manage their environmental responsibilities.
For the next four years, participants identified
many ways to improve environmental manage-
ment and regulation. Many of the recommen-
dations they made resulted in specific
regulatory changes, and several are still being
considered for potential action.
Especially important, this experience demon-
strated the value of public participation, lead-
ing us to look for better ways to involve the
public in our activities. Now, we are revising
the regulations that guide our public participa-
tion efforts, and providing models to help our
staff learn how to get the public involved in
their work. We also host forums like the
National Community Involvement Conference
to support public participation in environ-
mental issues.
Improving Policy Through Public
Involvement
Our increased commitment to public participa-
tion is evident in one of EPA's most innovative
initiatives—Project XL, which tests alternatives
to current regulations. Because the projects
involve innovative strategies that differ from
-------
what would be allowed under regulation, we
made sure that the public had ample opportu-
nity to review and influence actions first. In
many cases, ideas spawned by the public have
helped shape the project in significant ways.
Public concern about Intel's project, for exam-
ple, led the company to become the first ever to
place its environmental performance data on
the Internet. It did so for its Chandler, Arizona,
manufacturing facility after it proposed to test
an alternative air quality permit there. The
community was concerned about potential
impacts on local air quality, and so in a massive
outreach to local residents, the community was
invited to get involved in project design. In
most cases, community needs were easily met.
By placing its environmental performance data
online, Intel gives residents a way to monitor its
performance and creates an incentive to contin-
uously improve. In the end, Intel has the regu-
latory flexibility it needs, and as a side benefit,
the company now enjoys stronger relations with
the community.
Addressing Community Concerns in
Settlement Decisions
We believe that communities affected by envi-
ronmental violations should have a say in how
those violations are addressed. Under a policy
issued in 1998, we now emphasize the impor-
tance of asking'the community for ideas on .
environmental projects that could be included
in the settlement of enforcement cases. In
Chicago, for example, a settlement required a
major paint manufacturer to reduce emissions
, Improved Data GollectidrrLpwers^Costs ^
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» reduce costs,*save $rne, apd imprgve'data accuracy* EQA is developing a
f > « a 'fi ^ K ''•ii/', , '^j?fL ,- , _^ n^;
proto^pe^ystem.to^allow data to b^fecetved andjtpreq electronicajly_
for usel^ERAlthe sta?e^>ano>^ie'p'ubTic f "^ -" -»^- ^ •
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v system'jA'ill afloV/electronic reporting- instead of paper"
»repbrting, saving companies and government agencies millions" of dol-
"- :s- (t^vjll also* cen%jahz& and integrate EPA's largest environmental „
^v ~*ir>( "f^*-^^r •-- __ -»"v°»~^_n -*%* ^,
i1abases,Tnaki5g- inforrpattpn roore accessible and useful jWe expect",
"Begin Derating this*t5ew system In the "Spring*6f 2000 ~ __ :
of hundreds of tons of volatile organic com-
pounds. Because of community input, the
company also committed to.clean up and
restore a brownfields site and help restore an
area of wetlands.
Greater Access to Better
Information
Collecting and disseminating environmental
information is an area where we've made major
changes in the last decade. Like many other
organizations, we have capitalized on the
opportunities created by new information
technologies and the public's growing ability
to put information to use in their daily lives.
This new capability brings new challenges,
such as information security and protection of
trade secrets. But we're working with stake-
holders to create appropriate safeguards and
still provide the public with high quality envi-
-------
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ronmental informa-
tion.
Today we are pro-
viding more access
to more data than
ever before, because
we have seen the
cause and effect rela-
tionship between
environmental
knowledge and envi-
ronmental results.
When people have
access to accurate
information that
they can readily
understand and use,
they can make deci-
sions and take
actions to reduce
environmental risk.
Better information
is especially impor- .
tant now, because
die environmental
challenges of the 21st century cannot be solved
by EPA alone. To successfully protect public
health and the environment, we need everyone
to play a part.
Using Information to Reduce Risk
Perhaps the most notable example of the power
of environmental information is the Toxics.
Release Inventory (TRI). TRI has significantly
altered die way businesses and communities
'•'"•:^ :;';'
if |.:v^ter'safety "and" waste'management in,.thj|^||'';
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,jii 'f"1 j 'iiiii.'vr.ii'iKr,,: in oil':;,..' a aii "'I't1 s;,,; ^, .r^V
respond to environmental risks. Starting in
1987, certain facilities have been required to file
annual reports on how much of certain chemi-
cals diey release into the air, water, and land.
EPA then compiles those reports, creating a
consistent, year-to-year history of chemical
emissions that is useful in measuring and man-
aging environmental risks.
During the past decade, EPA expanded TRI
and improved its usability. Each year approxi-
mately 80,000 reports—listing billions of
pounds of chemical wastes—are submitted to
us by more dian 20,000 facilities. These data
serve many users, including businesses, local
communities and their emergency planning
committees, state and local environmental
A Dramatic Increase in Public Demand
for Environmental Information
Hits on EPA's Web Site
3t
11/94 11/95 11/96 11/97 11/98 11/99
-------
agencies, trade associations, labor groups, and
health care professionals. This information,
which is now available on the Internet, is help-
ing local communities learn about risk and plan
for emergencies. It is also creating better com-
munication and cooperation between facilities
and the communities that surround them.
Most important, TRI is leading to real reduc-
tions in chemical releases, as companies strive
to improve their environmental performance
and their public relations. Between 1988 and
1997, national air releases declined by 55 per-
cent, and water releases declined by 63 percent.
Over the same period, 22 percent less waste
was injected underground nationwide, while
facilities disposed of 26 percent less waste' on-
site, and increased off-site disposal by just one
percent. The numbers of facilities and kinds of
chemicals subject to TRI have changed over
time, but there can be little doubt that nation-
wide releases of reported chemicals have
declined dramatically since the TRI was estab-
lished. And there is no doubt that the TRI
reporting process, and the information it pro-
vides to the public, government agencies, and
the reporting companies themselves, helped
drive those releases down.
Providing More Useful Information
The American people now have better access to
information about environmental conditions
that affect their daily lives. During reauthoriza-
tion of the Safe Drinking Water Act in 1996,
EPA fought hard for the public s right to know
about the quality of their drinking water. As a
result, consumers now receive that information
from their water suppliers. "We also acted to
make sure home buyers and renters know about
potential lead paint hazards before they move
into a new home. This is especially important
TRI Data-Drives Aqfion, Gets^Resufts
V • I*
- Jii'ngJ;0*10!- Release Inventory (TRI)
,^atat"0^asses$''qslesp~onsib~le for tfie largest" quarrtrties'ofhaz- '
~ ardouslwaste generaticTnNqf toxicremissions, The sjydy^Jjelpecl the^state^
_ set pollution prevention priorities and provideS a Basis for; distributing
"1 technical assistance ^grants ^~ - T * v *- "" -& _, - J^ j-**- •*
-States also'use TRrxlatafcvlegTs)atejddttfonal%envi|onmenta|cont7ols In,
I- response toYreport on upregufeted toxic_aTr'emissionsjiri Nort^^.
"Carolina, the state"setttnTrts>fpc;JQ5_air "pofiutants, While, its,Clean Water
"£Fund used^TRM§ta"a^d.s1reaTitflov^foxmatiof to shovv_fhat toxicrty
^tleVgls in* 15 aVeas1§>ceelJeUstate-*and ^3ecal*crj.;^rrae/or prelecting *,
human health jand the enyironmenf^x<, * ""^-^^4-aV^* ''"*"»,'«, s ^
for families with children, who can have devel-
opmental problems when exposed to lead.
While EPA is expanding access to more kinds
of environmental information, we're also work-
ing to make it more relevant and useful. Until
the last few years, people interested in environ-
-------
npi inn i| i iiiiiiiii • i iiiiii Hi! in 111(11 ii '
Real-Time Data for Real-World Decisions"
.-re.
v 'M-+ ii." TP' n 'i * ' *.
Recent efforts to develop realtime reporting capabilities are layingtjie > ,
groundwork for much more timely, informative/eportrng^abotil envf-
rorim'enta! conditions. For example: '"* "* * * '' ^ J1'
• In Maryland, water quality1 data collected in Ihe summer of 1999
enabled the state to quickly determine—and report—that low oxy-
gen levels! not Pfiesterla, were responsible fora fish- kill oj^ths^V -
i^Pbcomoka River.
• In Des Moines, lowar frequent monitoring and reporting enables , ^- ,
residents to learn about the quality of their, cfciaking Water on a^ckily
, I i * T *(""• r ' «f * -
basis. ^^
* In many school systems, educators, parents, and .children are able to
instantly measure and monitor personal exposures to ultraviolet
radiation and to learn sun safety 'behavior that can r\elp prevenVskin -
cancer, cataracts, and other sun-related health effects. ~ "* '
* In major cities, people can go online* and find dailyJeve(s of ground-'
• level ozone a pollutant that can cause and aggravate respiratory
I'i problems and impair human immune systems.' ^ » ^
mental conditions only had access to historical
data that may have been collected months or
even years earlier. In 1997, EPA set out to
develop real-tune reporting capabilities to pro-
vide people with more timely information that
could be put to immediate use.
EPA joined with the U.S. Geological Survey, the
National Oceanographic and Atmospheric
Administration, and the Department of the
Interior in developing the Environmental
Monitoring for Public Access and Community
Tracking program. This program works with state
and local governments to provide the public with
up-to-date-information about local environmental
conditions. Since its inception, real-time reporting
projects have been started in 85 U.S. cities.
At EPA, we are working to create an environ-
mental protection system that works better for
all parties, including individuals and families,
school and civic groups, and local government
officials who are working to improve conditions
in communities throughout the country. The
American people have much to contribute to
environmental progress, and over the past
decade EPA has taken innovative steps to give
them the opportunity and information to par-
ticipate successfully. We are working to ensure
that their voices are heard when environmental
decisions are made, and we have set the stage
for a much more open, inclusive system of envi-
ronmental protection in the 21st century.
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The Challenges Ahead
The innovative ideas that EPA has tested
and put in place over the past decade
have helped our traditional regulatory
programs achieve better results at less cost. They
have strengthened our partnerships with state
governments, private businesses, local commu-
nities and other federal agencies. They have
supported more extensive and informed
involvement in decision-making by the public,
and increased environmental and public health
protection throughout the country.
Yet the greatest benefits are likely to be seen in
the future, for what we learned in the last 10
years of innovation will be carried forward in
our work. It will affect how we solve the prob-
lems still confronting us today, like smog and
polluted runoff. And it will affect how we
address new challenges as they emerge.
Already, we see issues on the horizon that could
affect environmental quality and public health in
significant ways. The long-term effects of global
warming may cause significant economic and
environmental disruption. Emerging markets
and a global economy pose questions about how
to meet growing consumer demands in a sustain-
able manner. "We don't fully understand how cer-
tain chemicals disrupt reproduction and other
basic biological functions. And we've just begun
to consider the possible long-term impacts—and
unintended side effects—of genetic engineering.
The future will undoubtedly raise other chal-
lenging issues, but we are now better prepared
to respond. "We know that a wide variety of
environmental strategies—regulatory and
non-regulatory—are possible. The greatest
challenge in the future will be to select among
all the options available to design the most
effective response to existing and
emerging environmental problems. In
some cases, nationwide laws and regula-
tions will continue to be the best way
to reduce risk. .But in others, tailored
strategies that involve market-based
approaches, partnerships, or perform-
ance incentives may offer better results
at lower costs. Moreover, the stakehold-
ers who join in partnerships will vary,
bringing different perspectives and
resources, depending on the environ-
mental problem in question.
Environmental solutions through new
partnerships and new tools—that is our
expectation for the future. And we will meet
that expectation with a spirit of innovation
that took root at EPA during the 1990s, tail-
oring our responses to environmental risks
with unique combinations of tools and part-
nerships that best attain the nation's environ-
mental goals.
-------
For More Information
More information about innovation at EPA can be found
on the Internet at , or by calling
EPA's Office of Policy, Economics, and Innovation at
202-564-4332. Our organization supports EPA's mission
through economic analysis and by promoting innovation to
achieve greater, more cost-effective environmental and pub-
lic health protectipn. Through our work with many diverse
partners, we provide a gateway to information about some
of the most current and exciting innovations in the envi-
ronmental management field.
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