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
                                       s

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       Executive  Summary
                                                      	!	
         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
      #»***»»««*»«*«*»**»»*«******
       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
  "assessment grant to leverage mofe than $53 million in publicjind pn- ^
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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-
                  !|
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.

-------
 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 $830
 million for the construction of sewage treat-
 ~"  New ToolVSjiow flow Land  Use Affects
 *  4 »•»  "VJST1^—"^"      K?  ~<   ~w» »*w*      <-
  .  Water Quality-      ,   ^ -**-_„-  s   *   „
   5    *  •«? 1?3fe.T.-y...  -*«•;*   S,^.^.'1^-       •*>;        <•
    **»******» +-#»»**»4*««**«»•»*•»*»•*»•«»$•*•»*»*«•**»•«»•*»* 9» ft**»*«»*«*«*
   <  *  — t    *."t-'~ji»*.~  * ~^  *1   ~*   **>  r~ ,    "-   f
    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.

-------
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).

-------
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

-------
   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.

-------
       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
  t       ^  %     *  ,.       V  T ^   **™^$ * :?    '     t    £W Ju?t*^
 ^Flexible Permit Qute^Costs ^nd Deduces 4
   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-
                                       **£'
                          ;    r-^  fjj •$  ^^E-  yp1**'  TfsMC i*™i$srVj v^*^sswr;
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
• 
-------
                     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   ^
  v  »*»*j<*^«*^#*»»**«-«»« »* ••«»*•*• *^» *_• **•*»***•** * * *»**»**•••****••***«»•••*
   THe" demafjd for high-quality envfronTneqtaljJa&ls increasing rapidly,  ™ "
  *  bOf the cosls fnvojye^4e\:ojlectinjfand marigingtdafe. can be high To * -
  » 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    "^    -"   -»^- ^  •
    t.   . ^ r   t^    ^ .^ »-,   >  ^r?o_  '   ^ •£.„  ^-— _^ ^, f ^^	.
              ^~     • « - ~-'->-^*--; ^ „ • • -^- 13-  ^ 	   —-•—•     V
          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-

-------
  	, ,, „.  ,;	,	: •	::::	:	-;;;	^^l^Mff^^m-
|:v:: 	IS:	'"'"i**; •;	*,,,.;?• •-.:	 	,'.,,, ^ ife^W ^^4*i^^*f M:-'
1, Environmental Jnrornri|tior| .;i;'
i, [{or JHispanic Americans:; ', J." ,.
,vvV^iX«1'•iAv'•^>>1,••>•••»•^.^VWi'i^^v;^S^
   -  •.',  '•*	iiii|!!(!	,.' "»,(i| •  ,: ', , ••: ).«&*£&'&$&• >j$£f°^-"
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 [ ..... 'inore thaftiS' ..... miilionlllSpanisH:speal' -;:;':;
                         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|^||'';
""i	J-^-jIg1"^!;c5ijpt5^5fiS^^^ti^^»pTf''"' ''""
     1 ':,     '. n,i|||'ill1  n h '''''iln . N'»if J1'1^ s^V]p'"'ii»!"'''i5ii •'•"-•• ''I-" • H jr
^,^'oni ofthe 28'EFA l^ari'^ri^l^^^-^'-^v
.','ifii*'tf»'	^'AsSMKBLS^iiJ^ijKi'jii^Si^fe^^ij^fe.^'
                	rih ' ii; iiiiii .'i111,,,1111!:,[!;;	i11,!11!, iiiLiisn'')!''!!!1 '	 , 'y i1'1,, ".li.ijuu* "" ''"'|:1^
                ,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.

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         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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