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                                        1
  Managing for Better
Environmental Results
         NATIONAL
         REVIEW ALGORE
         Vice President of the United States
  A Two-Year Anniversary Report on

Reinventing Environmental Protection
          March 1997

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            Contents
Executive Summary	3
Introduction,
Innovation and Flexibility	 6






Community Participation and Partnerships	12






Compliance Assistance	18






Cutting Red Tape and Paperwork	21

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                      Managing for Better

                   Environmental  Results

                           Executive Summary

          Two years ago, in March 1995, President Clinton, Vice-President Gore, and EPA Administrator Carol
          Browner put forth an ambitious agenda to reinvent environmental protection as part of the larger goal
          of creating a federal government that works better and costs less. The agenda, which has evolved and
          broadened over time, cuts across all areas of EPA regulatory responsibility. It focuses on achieving a
safer, cleaner environment for all Americans by correcting the everyday inefficiencies and obstacles that have limit-
ed the effectiveness of environmental programs, and by designing and testing fundamentally new approaches and
systems equal to the environmental and public health challenges of today and the new century.
  During the second year, EPA took steps to bolster reinvention, announcing a new Office of Reinvention, led
by a new Associate Administrator, and establishing a network of senior Agency officials to serve as Reinvention
Ombudsmen for their respective programs. These steps were taken while EPA continued pursuing important
environmental and public health protection improvements in a number of areas. The following highlights
describe some of the improvements made over the last year and offer a glimpse of what might be expected as a
result of reinvention in the future.
                Promoting Innovation and Flexibility


  To help companies and communities achieve better environmental results, EPA promoted use of innovative new
environmental technologies and management approaches — and provided the flexibility needed to put newly devel-
oped tools to the test:
• Through Project XL, EPA worked with companies on developing alternative management strategies to improve
  environmental performance beyond what would be achieved under the traditional regulatory system. Agreements
  to begin testing new strategies were reached with three companies —Jack M. Berry Corporation, a citrus juice
  processor in Florida; Intel Corporation, and Weyerhaeuser Corporation — as negotiations proceeded with 20 more.
• Under the Common Sense Initiative, EPA worked with multiple environmental stakeholders to create new
  industry-by-industry approaches to environmental regulation to replace the traditional pollutant-by-pollutant
  approach of the past. Currently, over 40 projects are underway to test elements of industry-based environmen-
  tal management approaches for six different sectors.
• EPA, in partnership with industry, trade groups, and other outside parties, established four new environmental
  technology verification programs to provide objective, reliable information on the cost and performance of
  new technologies. This information encourages rapid awareness  and acceptance of new technologies and helps
  companies and communities make sound technology investment decisions.
• By the end of 1996, EPA completed actions  to improve environmental quality and economic opportunity
  around brownfields — abandoned or underused industrial or commercial sites where real or perceived conta-
  mination discourages redevelopment. Over 29,000 sites were removed from the federal Superfund list; liabili-
  ty responsibilities were clarified for local governments, banks, and other interested parties; and over 70 com-
  munities received funding to invest in cleanup and redevelopment efforts.
                                                                                Executive Summary 3

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                        Increasing Community Participation and
                        Partnerships

          To achieve the widest possible participation in the job of protecting our environment, EPA focused on
       empowering and building stronger partnerships with state and local governments, tribes, community leaders,
       businesses, and private citizens:
       • EPA redesigned its Internet site — which now receives over six million visits a month — to make it more use-
         ful for specific audiences, such as researchers and scientists, business and industry, and concerned citizens.
       • Twenty-three states — nearly half—joined EPA in developing Performance Partnership agreements to pro-
         vide a more effective, collaborative framework for managing state and federal environmental programs and
         resources.
       • Over 500 companies signed up to participate in voluntary environmental improvement programs, bringing the
         total number of participants to over 7,000.
       * EPA released for federal agency review national environmental goals for America. These goals, which include
         specific targets in areas such as safe drinking water and clean air, mark the first time such an effort has been
         undertaken.


                        Improving Compliance


          To help companies and communities prevent pollution and ensure compliance with environmental laws, EPA
       worked to make environmental regulatory information easier to understand and obtain:
       • Compliance assistance centers were opened to provide small businesses in the printing, agriculture, automobile
         compliance, and metal finishing industries widi comprehensive, easy-to-understand information on all aspects
         of environmental management. Based on the positive response, EPA began planning to open 4 more centers.
       * EPA initiated the "Sector Facility Indexing Project," which will allow interested parties to obtain and compa-
         sitc-specific environmental performance data among facilities within a given industry.


                        Cutting Red Tape  and Paperwork


          To ensure that people and organizations with environmental responsibilities are focused on problems as
       opposed to paperwork, EPA looked for ways to cut red tape associated with environmental regulations:
       ป EPA eliminated nearly six. million hours of paperwork burden by cutting obsolete, duplicative, or unnecessary envi-
         ronmental requirements. To date, nearly 16 million hours of paperwork burden have been cut.
       • Five states were awarded $500,000 grants to support development of "one stop" reporting systems as part of a
         larger effort aimed at improving the use and efficiency of environmental data collected at the federal, state,
         and local levels.
       • Electronic mail was offered as a quicker, easier method for interested parties to comment on EPA regulatory actions.
       * Improvements to the pesticides registration process has allowed EPA to cut its review times for some steps by
         50 percent or more.

•!  Managing for Better Environmental Results

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NATIONAL
"a
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vvEPA
REVIEW ALGOW-
Vice PrtiiJtat of die United Sta.ua
                          Introduction
     In March 1995, President Clinton, Vice President Gore, and EPA Administrator Carol Browner put
     forth an ambitious agenda to reinvent environmental protection as part of the larger goal of creat-
     ing a federal government that works better and costs less. Exactly what does reinventing environ-
     mental protection mean? In the most narrow sense, it is addressing the everyday inefficiencies and
limitations associated with environmental programs and regulations. In a broader sense, reinvention
means managing for better environmental results. It includes designing and testing fundamentally new
systems and approaches to address the environmental and public health challenges that still confront
our nation.

   As initially proposed 2 years ago, EPA's reinvention agenda focused on improvements at both levels.
It included 25 high-priority projects, cutting across all areas of environmental regulatory responsibility,
that were designed to promote innovation and flexibility, increase community participation and partner-
ships, improve compliance with environmental laws, and cut red tape and paperwork. In different ways
and to varying degrees, these projects are laying the groundwork for a safer, cleaner future. For example,
while EPA is providing industry with more opportunity for gaining operational flexibility, the offer is
conditioned on achieving greater environmental protection than what would be achieved under current
standards. Similarly, by encouraging innovation, EPA is helping companies and communities find better
ways of addressing some of the complex and challenging environmental issues that may not be
amenable to traditional regulatory approaches.
   Not surprisingly, EPA's reinvention agenda has evolved over time, and now includes an even more
diverse range of activity. The scope and magnitude of this activity suggests that a transformation is tak-
ing place. In addition to achieving new efficiencies and better results, reinvention is creating an alto-
gether new mind-set among Agency managers and staff.
   To nurture this  transformation, EPA has taken steps to bolster reinvention internally. In February
1997, EPA announced a new Office of Reinvention, to be led by a new Associate Administrator. This
new office will provide consistent focus on reinvention throughout the Agency, and help ensure steady
progress in meeting EPA reinvention commitments. It will also assist regulated parties interested in
pursuing innovative strategies for achieving better environmental results. In another move, EPA
appointed senior Agency officials to serve as "Reinvention Ombudsmen" for their respective program
areas, based on the recognition that reinvention is most successful when senior managers take an active
role. The Ombudsmen are charged with ensuring significant legal and policy issues are brought to reso-
lution; stakeholders have easy access to information and the opportunity to provide meaningful input;
and people and organizations outside the Agency receive timely answers to their reinvention proposals,
questions, and requests.

   Together, these steps position the Agency to build on the reinvention progress of the past two years
and pursue an even more aggressive agenda for the future.
                                                                                       Introduction  5

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         A Safer, Cleaner Environment Through...
           Innovation and Flexibility

                  Reinventing environmental protection is about more than just fine-
                  tuning the current regulatory system. It also means looking to the
                  future, and exploring and testing fundamentally different apprdlcnes
                  that can help bring about better performance than what is being
       achieved today. To a large degree, these approaches will stem from technology
       advancements, from the need for operational flexibility, and from a desire by many
       regulated facilities to move "beyond compliance" and achieve truly superior envi-
       ronmental performance. During the past year, EPA focused on these opportunities
       and continued laying the groundwork for an improved system of environmental
       and public health protection for the future.
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Moving Beyond Compliance

   To encourage interest in not just meeting but exceeding
current environmental standards, EPA aggressively pro-
moted Project XL. Launched by President Clinton in
1995, this national pilot demonstration program — which
stands for excellence and Leadership — makes the fol-
lowing offer to companies, communities, and other regu-
lated facilities with proven track records of environmental
performance:

      If you have an idea that promises superior envi-
    ronmental protection to what would be achieved under
    the current regulatory system, and if you use a mean-
    ingful stakeholder involvement process, then EPA will
    work with the relevant state and local agencies to grant
    the flexibility needed to put those ideas to the test.
   In 1996, EPA worked to develop and implement alter-
native management approaches aimed at achieving better
environmental results.

• To meet its ultimate target of fifty XL industry "exper-
  iments," EPA worked with a number of companies to
  move from proposal to implementation stages. Final
  agreements were reached with 3 companies, and nego-
  tiations continue with 20 others.

• In addition to industries, EPA also worked to extend
  the XL opportunity to communities and federal facili-
  ties. Later this year, EPA expects these efforts to come
  to fruition at two sites in California; final project
  agreements are expected to be signed with the the city
  of Anaheim and with Vandenberg Air Force Base in
  Santa Barbara County.
       Profile
 |JLln July 1996, the Jack ML Berry Corporation, a citrus juice processor in Florida, consolidated 23 federal,
 rr-rstate, and local environmental permits into one comprehensive operating permit for the facility. This
 r  approach, which is expected to save the company several million dollars on the testing and administrative
  _, costs typically incurred over the five-year life of a permit, will improve environmental performance in a num-
 _/ ber of areas. For example, the corporation's solid waste generation will drop by more than 25 percent
    'In November 1996, Intel Corporation agreed to an environmental management plan that includes a
    facilitywide cap on air emissions in place of individual limits for different emission sources at a new plant in
 :  Arizona. The agreement allows operational changes without EPA permit review — as  long as certain permit
 r:_Jimits are met. This feature gives Intel the advantage of being able to respond more rapidly to changing
    market needs. In exchange, this multi-billion dollar facility will reduce air emissions below minor source
  :  thresholds and will return nearly 100 percent of its process water in safe, clean condition to the community'
  -" hi January 1997, Weyerhaeuser Corporation agreed to implement a minimum impact manufacturing pro-
   . posal to reduce environmental impacts on the Flint River and its surrounding watershed in Georgia.
 ----' Weyerhaueser will be given greater flexibility in meeting EPA's proposed standards for hazardous air emis-
  —.srons and in expanding or modifying production  processes. In exchange, the facility has committed to
 n-jeeluce discharge of bleach plant effluent by 50 percent, to cut overall water usage by about 1 million gal-
 ?- Ions  a day, and to protect wildlife and reduce runoff on 300,000 acres of Georgia forests.
                                                  i
                                                '1
                                                                                   Innovation and Flexibility  7

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   Creating a" Fundamentally
   Different System..."
      Launched by EPA Administrator Carol Browner in
   1993 as a fundamentally different system of environ-
   mental protection, the Common Sense Initiative (CSI)
   provides a continuing forum for creating new industry-
   by-industry environmental management approaches to
   replace the pollutant-by-pollutant approaches of the
   past. This forum, which occurs in an open public set-
   ting, provides balanced representation among multiple
   stakeholders and consensual decision-making. It
   includes a variety of innovative projects aimed at pollu-
   tion prevention; permitting and reporting streamlining;
   enhanced public participation in environmental man-
   agement; use of innovative technologies; and setting
   industry environmental goals and indicators. Some of
   the innovative projects pursued in 1996 include:
   • Recycling, Reuse, and Recovery of Electronic
     Equipment: To help the computers and electronics
     sector address the rapidly increasing accumulation of
     obsolete or unwanted electronic equipment, CSI co-
     sponsored the National Conference on Electronic
     Product Recovery and Recycling. The conference,
     which focused on the reuse, recovery, and recycling
     of electronic products, was the kick-off for establish-
     ing an independent roundtable to promote long-term
     management of obsolete computer equipment.
   • Setting National Performance Goals for Metal
     Finishers: For the first time ever, multiple interest
     groups — industry, environmentalists, regulators —
     have reached an agreement on national performance
     goals for metal finishers in a variety of areas, includ-
     ing resource utilization, hazardous emission reduc-
     tion, cost control, and compliance. These goals,
     which will serve as a vision for the whole industry,
     should help promote cleaner production at metal fin-
     ishing facilities throughout the country.
   ป Developing A Comprehensive Flexible
     Permitting System: A comprehensive multimedia
     permitting system  is being developed for the printing
     industry. Multi-media permits offer a single enforce-
     able agreement covering all  aspects of environmental
     performance and replace the need for separate per-
     mits for each environmental medium (e.g., air, water,
     land). A key component of the proposed permitting
     system is public participation.
Advancing New Environmental
Technologies
   To encourage rapid awareness, acceptance, and
implementation of improved environmental technolo-
gies, EPA's Environmental Technology Verification
Program provides third-party evaluation of the cost and
performance of new commercial technologies. By
selecting and testing the most promising technologies
available, EPA and its partner organizations are able to
provide objective data and help companies and commu-
nities make sounder investment decisions.
• In October 1996, EPA established four new verifica-
  tion pilot projects — in addition to five projects
  established in 1995 — to test different partnership
  and process alternatives for verifying technologies in a
  number of areas.
   If the projects are successful, EPA expects the results
will help the Agency establish permanent verification
capacity and develop a full-scale environmental technol-
ogy verification program by the year 2000.
KM
       Profile
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I  Environmental
   Technologies Are Being
  Verified for...
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    Drinking water treilment.for small systems.
    Pollution prevention and waste treatment.
    Site characterization and monitoring for haz-
    ardous waste sites.
    Indoor air products.              \
                  n> --              (i       .
    [ Less"p611uting coating techniques for the metals
    and plastics industries.
      < i   -, i  ,   • m  j.             (5
    i Advanced monitoring systems.
    i Air pollution control.
            . T   —ซ, v              a
    i Wet weather flow control technologies.
8  Managing for Better Environmental Results

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 Promoting Effluent Trading in
 Watersheds
   To achieve further reductions of water pollution in
 rivers, lakes, and coastal areas, EPA is promoting efflu-
 ent trading in watersheds. Trading creates an economic
 incentive for pollution sources, such as industries or
 wastewater treatment plants, to exceed requirements for
 water pollution reductions, by providing the opportuni-
 ty to sell "surplus" reduction credits to other sources
 that find purchasing those credits a more cost-effective
way to comply with clean water requirements. This
 arrangement can benefit facilities that go beyond com-
pliance while helping other facilities achieve compliant
status. More importantly, trading can help ensure that
water quality goals in a watershed are met.
• In May 1996, EPA issued the Draft Framework for
  Watershed-Based Trading. This framework, which pro-
  vides guidance on implementation under the national
  policy issued by EPA in January 1996,  outlines five
  different types of trades and includes case studies
  illustrating how trades occur. Following the frame-
  work's release, EPA received comments from over 50
  sources, and is now working to better define and
  address key issues of concern. In the coming year,
  EPA will be releasing periodic updates outlining these
  issues and possible options for resolution.
 Encouraging Open Market Air
 Emissions Trading
    To encourage greater use of open market "emissions
 trading" for smog-creating pollutants, EPA continued
 developing a national policy to guide implementation.
 As initially proposed in August 1995, this guidance
 offers several features to help achieve safer, cleaner air
 quality. It encourages the use of technologies prior to
 required phase-in schedules, and provides incentives for
 reducing emissions to levels below current require-
 ments. As an added environmental benefit, the guidance
 also requires that each trading transaction retire an
 emissions quantity equal to 10 percent of the total
 quantity being traded. In an effort to simplify participa-
 tion, the guidance would allow companies to engage in
 trading without prior EPA approval, as long as reporting
 and public health standards are met.
     The principles of open market emissions trading
 are being applied in several states.

 • For example, a northeastern and mid-Atlantic demon-
  stration project — a collaborative effort between
  industry, environmentalists, and state and federal air
  quality regulators — achieved voluntary reductions of
  over 14,000 tons of nitrogen oxide (NOX\ emissions
  and 350 tons of volatile organic chemical  (VOCs)
  emissions during the summer "ozone season." The
  effort demonstrated that the cost of making reduc-
  tions, at least in the northeast, can be as little as $750
  to $1,000 a ton for NOX, and as little as $2,000 a ton
  for VOCs.

  EPA expects to issue final guidance on emissions
trading later this year.
                                                                                Innovation and Flexibility 9

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              Restoring Environmental Quality and Economic Opportunity
                                         Brownfields Pilot Projects
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   More Flexible Air Permits
     EPA also searched for ways to increase operational
   flexibility under Clean Air Act Title V permitting
   requirements. Currently, facilities obtain air quality per-
   mits for each individual emission unit (i.e., piece of
   equipment), and any change in operations can trigger a
   need for a permit modification or review. These actions
   can hamper a facility's ability to respond rapidly to
   changing market conditions. In its search for a better
   approach, EPA initiated a series of pilot projects —
   known as the "pollution prevention permitting project"
   	to creatively provide operational flexibility and pro-
   mote pollution prevention. EPA is working with states
   and industry to develop innovative permits that include
   facility emissions "caps," allow pre-approvals of certain
   emission control technologies, and increase pollution
   prevention opportunities.
    Removing Barriers to Cleanups
    and Development
      To help restore environmental quality and economic
    opportunity, EPA continued to focus attention on
                                      brownfields — abandoned or underused industrial or
                                      commercial properties where real or perceived contami-
                                      nation inhibits redevelopment. By the end of 1996, EPA
                                      had completed a number of actions to help assess, clean
                                      up, and sustainably reuse brownfields.
                                      • Over 29,000 sites were removed from the federal
                                        Superfund list — either because they had been
                                        cleaned up or because they no longer required federal
                                        attention — thereby removing a stigma that has fre-
                                        quently deterred investment in cleanup and redevel-
                                        opment activities.
                                      • EPA released guidance —which Congress has since
                                        adopted into law — clarifying liability responsibilities
                                        associated with cleanup. It clarified that lenders
                                        acquiring contaminated property through loan
                                        defaults or similar circumstances will not be held
                                        liable for cleanup costs as long as they are not partici-
                                        pating in that property's daily management. The
                                        guidance also clarified that a city or county is not
                                        responsible for cleanup of involuntarily acquired
                                        properties.
                                      • To help assess and leverage cleanup and redevelop-
                                         ment funds for contaminated areas, EPA provided up
                                         to $200,000 in funding to more than 70 communities.
10 Managing for Better Environmental Results

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   These projects are leveraging millions of dollars from
   other sources. For example, in Lawrence,
   Massachusetts, Brownfields funding has helped
   encourage $167 million in additional investment and
   cleanup activity.

   In 1996, President Clinton called for an additional
 $200 million investment for EPA to support community
 brownfields efforts over the next four years.
 Promoting Green Chemistry
   In October 1995, EPA and the American Chemical
 Society issued a "Green Chemistry Challenge" grant
 and awards program for the chemical industry. These
 grants and awards are designed to encourage innovative
 pollution prevention — particularly through safer man-
 ufacturing processes — and development of safer chem-
 icals. Now elevated to a Presidential award program, the
 Green Chemistry Challenge Award provides national
 recognition for technologies that incorporate environ-
 mentally-beneficial principles into chemical design,
 manufacture, and use.

• In July 1996, EPA named five award recipients from
  more than 70 nominations.
• In August 1996, EPA, in partnership with the
  National Science Foundation, provided grants to uni-
  versities around the country to support green chem-
  istry research.
        Profile
      996
    Presidential
   Green  Chemistry
   Challenge Award
       inners
 fc

       Monsanto Company, for developing a new
       to manufacture its herbicide,. Roynd-Upฎ, that
 jpslyjunates hazardous substances, such as
 Igj-pxrnaldehyde and cyanide (Alternative Synthetic _
 ~~~Pathways Award)
i,IheJ3ow Chemical Company, for developing a
^ jiew way to manufacture foam products that elimi-
*!jTates greenhouse gas emissions.and has the
^Jotential to eliminate the use of 3.5, million  .1.
.-^pounds of chlorofluorocarbons (CFCsj each year.  "
^{Alternative Reaction Conditions Award)
ffiZ   ^^                        :' • .:T "-.•-•,. "• •
SLtJRohm and Haas Corporation, for designing its
.JlSea-Nine™ marine vessel antifoulant to ,be .'.
Kbiodegradable and less toxic in the aquatic environ-
fฃ menf. (Designing Safer Chemicals Award)
8&T>
      ._
|*_Donlar Corporation, for developing safer and
^ biodegradeable polymers for a variety of applica-
  tions, and for developing a manufacturing process
TJhat is essentially waste-free (Small Business
                                                    fProfe'ssor Mark T. Holtzapple, Texas A&M
                                                  5|s.l|rriversity, for. his research on recycling waste bio-
                                                  |5f mass:for conversion  into animal, feed, industrial
                                                  Jischemicals, and fuels, thereby reducing dependence
                                                  .si:on nonrenewable resources;: such as petroleum.
                                                  fc(Acade/77/cAward)  :                 ^
                                                                             Innovation and Flexibility  11

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        A Safer, Cleaner Environment Through...
     Community Participation and
                      Partnerships
           In an effort to achieve the widest possible participation in the job of protect-
           ing our environment, EPA is working to build stronger partnerships with
           state and local agencies, tribes, community leaders, businesses, and private
           citizens. These efforts are based on a strong commitment to involve those
      affected by — or responsible for — environmental regulation in finding the most
      effective, workable solutions possible. Last year, EPA demonstrated this commit-
      ment in a number of ways, including making more environmental information
      publicly available, building stronger working relationships with state and local gov-
      ernments, and encouraging voluntary initiatives for improving environmental per-
      formance beyond what is currently required.
\ Itmugii ig for Bet ler Environmental Results

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Increasing Public Access to
Information
  In order to meet its commitment to ensure that
communities and individuals are kept well-informed
about all environmental issues that could affect their
health and well-being, EPA focused on improving pub-
lic access to information. In particular, EPA is expanding
and improving dissemination of information over the
Internet. At present, over 6 million visits are recorded
on EPA's Web site every month. During 1996, EPA
worked to make its Web site even more valuable for a
growing number of users.
• The Web site was redesigned to better meet the infor-
  mation needs of specific user groups: concerned citi-
  zens, business and industry, researchers and scientists,
  and state, local, and tribal governments. As one satis-
  fied customer stated, "This EPA Web site is one beau-
  tiful Web page...well constructed, easy to download,
  and filled with helpful information. As I was asked to
  research regulatory info., I was thrilled to find how
  well this is done."
• A number of new Web pages were added to address
  issues of special interest. For example, EPA developed
  a new user-friendly application called "Surf Your
  Watershed" that allows people to locate, use, and share
  environmental information specific to their communi-
  ty or watershed. This site can be found at
  "http://www.epa.gov/surf."
                Traffic Continues to
            Increase on EPA's Web Site
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                                                6,155,258,,
Performance Partnerships with
State Environmental Agencies
        In an effort to build stronger working relation-
      ships with its most critical partners, EPA is pur-
      suing the development of Performance
  ;    Partnerships Agreements with state environmen-
      tal agencies. Through these agreements, EPA
      and the states decide each year how environ-
      mental and public health protection will be
      accomplished. Fully developed agreements
      include a comprehensive assessment of a state's
      environmental problems, criteria for measuring
      environmental and program management
      results, explicit identification of management
      and implementation roles for the states and EPA,
      and areas where EPA oversight can be reduced
      based on a history of strong state performance.
      These agreements can be examined by the pub-
      lic via the Internet.
     11/94  2/95  5/95  8/95  11/95  2/96  5/96  8/96  11/96  2/97
                                                                 Community Participation and Partnerships 13

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                                  Performance Partnerships
                                       1997 State  Participation
                                                                                                Agreement
                                                                                                Only
                                                                                                Grant Only
                                                                                               Agreement
                                                                                               and Grant
    • As of February 1997,23 states had signed
      Performance Partnership agreements for fiscal year
      1997. This high level of participation and interest
      reflects the positive experience gained through six
      pilot agreements with six states in 1996.
      An additional element of Performance Partnerships is
    grants flexibility. In contrast to the past, states are given
    the option of combining two or more single-media grants
    into one Performance Partnership Grant. This option can
    result in greater efficiency by reducing the administrative
    requirements associated with managing multiple funding
    sources. Furthermore, for states that have a sound envi-
    ronmental assessment and well-defined priorities, these
    grants can be used to reorient funding towards those
    problems posing the greatest risks.
    • As of February 1997,29 states—more than half—had
      committed to using this more flexible grants manage-
      ment approach during fiscal year 1997.
Promoting Sustainable
Development In Communities
   Recognizing that sustainable environmental quality
and economic prosperity are inextricably linked, in
1996, EPA established a new competitive grant program
that challenges communities to invest in a sustainable
future. These grants leverage private and public sector
resources, and help build long-term partnerships for
improving conditions at community or regional levels.
• During the first year pilot phase, EPA received more
  than 600 proposals requesting $20 million in total
  funding — a response that suggests substantial inter-
  est in pursuing sustainable development at the local
  level.
• With $500,000 in pilot funding available, EPA selected
  ten projects, featuring a variety of urban'and rural
  sustainability approaches across the country. Later in
  the year, EPA began gearing up to expand the pilot
  program into a full-scale program capable of manag-
  ing and allocating $5 million annually for sustainable
  development activity.
14  Managing for Better Environmental Results

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       Profile
  Sustainable
  Development Challenge
  Grants Will:
  " Help officials and residents in South Carolina's
 •c~ "low country" protect and capitalize on the
 S-^area's greatest asset — world-class ecological
 -"7 conditions.
 Kl"_Support development of a new ecological park fea-
 f:  luring environmentally-friendly design principles,
 P^  such as recyded construction materials and native
 i—~ plant landscaping techniques, in an mner
-------
   • While the partnership is still in its formative stage,
     186 water systems with 245 treatment plants have
     signed up and more systems are continuing to join.
   " In 1996, over 79 million people nationwide received
     their water from a participating supplier, nearly a
     threefold increase over the previous year.


   Voluntary Efforts to Improve
   Environmental Performance
      EPA now offers a multitude of voluntary programs to
   help companies improve their environmental perfor-
   mance in a number of areas, such as energy efficiency,
   water use, pollution prevention, and recycling.
   Collectively known as EPA's Partners for the
   Environment, these programs are helping companies
   achieve environmental benefits. Based on the latest esti-
   mates, in one year voluntary efforts cut toxic pollution by
   750 million pounds, eliminated nearly two million tons of
   solid waste, and reduced greenhouse gas emissions by
   preventing over 13 million metric tons of CC>2 emissions.
   " In 1996, EPA signed up more than 500 new compa-
     nies in voluntary programs.
   • EPA also issued a new catalogue, called Partnerships in
     Preventing Pollution,  to provide interested companies
     with more information on the full range of voluntary
     opportunities available.
                    Partners for the
                       Environment
                  Participation Continues
                         to  Increase
  20.000
  15,000
  10,000
   5,000
                                               18.566*
         400
         1991   1992    1993   1994    1995   1996   2000*
                                            * Projected
Setting National
Environmental Goals
   One way EPA is working to become a more effective
partner in protecting public health and the environment is
through more strategic use of its resources. As a result of
the Government Performance and Results Act of 1993,
EPA and all federal agencies are required to take a number
of steps to ensure that federal tax dollars are being used as
efficiently and effectively as possible. Specifically, GPRA
requires federal agencies to set strategic goals, measure
performance, and report on progress being made.

"" En^irojirjiejital Goals for	_,;J
   Amejica^Will:

   • Shift the public debate increasingly toward
       "11=^^^         	.             :„
 ^-""en%5rfrnental results.
   HStimulate joint planning .by the public and       "'•
*v" "private sectors   _!!-•'            '  .  	~	"
i   • Provide a basis for the^ nation to measure its
*     e^gojTpigjjJal progress and gauge the effec-
I-    tiveness of its policies and programs,
t_ ~    ___           .]:._..:;.:;...;!:	•----•<-   •••-••ซ--	••••-->
   To meet these requirements, EPA is wqrking to inte-
grate its planning and budgeting activities as never
before. As a first step the Agency is developing a strate-
gic plan that includes a full set of goals, objectives, and
performance measures. These actions are expected to
redefine the decision-making process so that environ-
mental resources are better targeted towards the highest
priority environmental and human health challenges.
   To a significant degree, EPAs progress towards setting
goals and and implementing a more strategic manage-
ment approach can be linked to an ambitious project
undertaken earlier — the development of environmental
goals for the nation. These national goals, which cover
priorities such as clean air and safe drinking water, repre-
sent what could be accomplished by environmental pro-
tection efforts at all levels — public and priyate, regulatory
and voluntary — by the year 2005. EPA took the lead in
developing national goals, and in January 1997, released a
draft set for review by state, tribal, and other federal gov-
ernment agencies. This unprecedented effort has given
EPA a headstart on meeting GPRA requirements as many
of the goals being considered for the Agency's own strate-
gic plan evolved from the national goals project.
16  Managing for Better Environmental Results

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Involving Stakeholders in
Regulatory Developments
   In an effort to provide meaningful stakeholder
involvement in the regulatory process, EPA looked for
opportunities to negotiate and consult with stakeholders
in developing new rules and policies:
• Federal advisory committees were established to assist
  in developing regulations, guidance, and policies in a
  number of areas, including endocrine disrupters;
  micro-organisms, disinfectants, and disinfection by-
  products in drinking water; and industrial nonhaz-
  ardous wastes.
• A federal advisory committee is also being considered
  for development of seven separate — but related —
  air quality standards for internal combustion sources.
   In addition, EPA maintained an Agencywide contract
to make consensus-based services and expertise available
to staff working on various policy and regulatory
actions. More than 145 individual projects, totaling over
$2 million in services, were supported.


Improving Customer Service
   In March 1993, President Clinton issued Executive
Order 12862 directing federal agencies to develop and
implement customer service standards. In response,
EPA developed and began to implement standards for
its major areas of responsibility: environmental permits;
pesticide registration; research grants; state, tribal and
local environmental management grants; environmenal
regulations; environmental information; enforcement
and compliance assistance; and voluntary partnerships.
EPA developed "Six Golden Rules" as a goal for all
aspects of customer service. In addition, EPA:
• Incorporated the "Six Golden Rules" into support
  contracts for hotlines and information centers to
  ensure consistently courteous and quick responses.
• Completed surveys to obtain customer feedback on the
  quality of services, and initiated follow-up actions based
  on customer responses.
• Worked continuously to make customer access to
  information and assistance easier to obtain.
             ERA'S Six  Golden
               Rules  of Customer
                              Service

   r In carrying out our mission  to protect public
 tjiealth. and the environment,

 jffl  We will be courteous, professional, flexible,
&?~ honest, and helpful in all dealings with our cus-
&, _ torners We will actively listen so we can better
^-l"qnderstand what motivates our customers and
1HL
8&~~ JTOW we can best provide the environmental
  ?_- products, services and information they value,
    [|nd will be fully responsive to customer con-
g^tTcgrns'and needs regatding our services
r~ฃl  \Ne will answer all telephone calls promptly,
^J*Z3fid wilj respond to them by  close of the next
C?l ^business day If the  person receiving the call
I&E-" cannot fully respond to the mqjjiry, the cus-
^_=^tomer will be accurately referred to someone
|^t-ฃwh7o can
     We will respond to all external correspondence
           10 working days of receipt If we cannot
            a complete  reply within 10 working
     days, we will contact the customer as soon as
g^rpossible within the 10-day period to acknowl-
S&E_gdge and clarify their request, discuss what is
lsc:Lrequired to provide a full response, and deter-
|"~~^mine when they will receive a full response
#~%. We will provide our customers_with clear, easy
j^ -—tounderstand, timely, and  accurate information
p-_  about products, services, policies and proce-
     dures  We will ensure that customers have  easy
    access to information, available through conve
  j jjient channels, and in various formats
 15  Relationships with our co implementors of envi-
  -==ronmental programs — state,  tribal, and local
  IT governments, and other federal agencies — will
   - be characterized by  partnership, flexibility, and
     assistance  _              	     _       _,	
I* 6 _We will seek customer input to inform our deci-
tuปซjypjls on policies, programs, and rules
                                                                  Community Participation and Partnerships 17

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           A Safer, Cleaner Environment Through...
                Compliance Assistance
                      ne of EPA's most important responsibilities is ensuring that com-
                      panies and communities comply with national laws for protecting
                      public health and the environment. However, an equally impor-
                      tant responsibility is looking for ways to make compliance more
             i ;*•  j'i!>i.'.;';ป''(^!,ii	,;;,.  •-,,•.'.• ,,.;,-,;,;„ M'.;, .'•••, ; :,':'.', ..;.• j. • • . ;>,..ซ: ,i-;. •:-.'?:>'.;:,:..;;:  ••••  ,,  :•. _j;;-   •
         achievable. During the past year, EPA focused on providing environmental informa-
         tion in. simpler, easier-tb-understand terms and making that information more
         accessible. It also .worked to create incentives that reward compliance in the open
         market place. These efforts are helping to create a more productive, less litigious
         relationship between EPA and the regulated community. More importantly, they are
              I, , ,*,' ":„ .4ilPlhHปllปl, ! ,ih I1 ,|1",, ', , ' *i'h''- J n,j- - „ „.', - , ., .. ',., • MI,,, p.. , 	    - , , „               , >,,'n,  , -
         helping to prevent pollution from ever occurring in the first place.
18 Mciiwging for Bettor Environmental Results

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Compliance Centers To Help
Small Businesses
   While EPA is committed to improving understanding
of environmental regulations for all parties, it is especial-
ly committed to helping the nation's one million small
businesses. Compared to larger institutions, many small
businesses simply lack the resources or expertise to gain
a full understanding of what environmental regulations
actually require. To help them overcome this challenge
and improve environmental performance, EPA is estab-
lishing compliance assistance centers for certain key sec-
tors with large numbers of small businesses. Through
partnerships with industry, academic institutions, envi-
ronmental groups, and other federal and state agencies,
these centers serve as a single source of comprehensive,
easy to understand information on regulatory require-
ments, pollution prevention and technical assistance
opportunities:
                                                   ! By October 1996, four centers were officially open.
                                                     They have responded to thousands of requests for
                                                     information; the automotive assistance center has
                                                     recorded nearly 100,000 hits
                                                     to its Internet "Web site alone.

                                                   I After only four months of
                                                     operation, 1,600 companies
                                                     signed up to use the
                                                     metal finishers assis-
                                                     tance center. This enor-
                                                     mous popularity will
                                                     enable the center to charge a modest fee and become
                                                     self-sustaining in just 18 months.

                                                   I Based on the positive response from customers of
                                                     existing centers, EPA began planning to establish four
                                                     more centers in 1997. Centers will be opened for the
                                                     printed wiring board, chemical manufacturing, and
                                                     transportation industries, as well as local governments.
SI!
       Profile
                       At Your Service...
ift-
Ifi-P
 The Printers' National Compliance Assistance Center electronically links
 trade, governmental agencies, and universities to provide the most current and
 ^complete compliance assistance and pollution prevention information on the
 printing industry. The center sponsored a satellite video conference, "Green
 ;and Profitable Printing," in May 1996, with an estimated 1,800 participants at
 'Over 175 sites, (http://www.hazard.vivc.edu/pneac/pneac.html)
 The National Agriculture Compliance Assistance Center works
 with the U.S. Department of Agriculture and other federal and state
 agencies to provide information on various agriculture issues, includ-
 ing: pesticides, nonpoint source pollution,  ground water, animal
: waste management, agricultural worker protection, and wetlands pro-
 tection. (http://es.inel.gov/oeca/ag/aghmpg.html)
i Greenlink™— The Automotive Compliance Information
: Assistance Center provides information designed for automotive shop
; _owners and technicians on topics such as used oil management, flood
^drains, underground storage tanks, solvents, air conditioning repair, and pollution prevention alternatives.
: (http://www.ccar-greenlink.org)

! The National Metal Finishing Resource  Center provides both electronically-linked information and an in-
; house staff to answer questions. The center  offers regulatory information, interpretive guidance, perfor-
^mance and cost comparisons among technology options, pollution prevention case studies, and vendor
: information, (http://www.nmfrc.org)
                                                                                        Compliance Assistance 19

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      Small Business Compliance
      Policy
         In June 1996, EPA issued a final policy aimed at
      helping small businesses improve compliance. The poli-
      cy encourages small businesses to participate in compli-
      ance assistance programs, to conduct environmental
      audits, and to promptly disclose and correct any viola-
      dons. As an incentive to take these steps, the policy
      allows EPA to waive or reduce penalties for newly dis-
      covered, first-time violations as long as the violation
      docs not involve criminal conduct or a significant threat
      to health, safety, or the environment.
       Encouraging Environmental
       Leadership
         In an effort to help move industries towards better
       environmental performance, EPA piloted the
       Environmental Leadership Program in 1996. This pro-
       gram provided incentives, such as public recognition,
       streamlined administrative procedures, and a self-correc-
       tion period — with reduced or eliminated penalties —
       for regulatory violations. In order to participate and take
       advantage of these benefits, facilities were expected to
       have a mature, comprehensive environmental manage-
       ment program in place and show a strong commitment
       to stakeholder and employee involvement. Also, partici-
       pants were expected to mentor other facilities as a way of
       improving environmental performance within sectors.
       ป In 1996, EPA completed the pilot phase of the pro-
         gram, which involved ten companies and two
         federal facilities. Based on the results, EPA is
         now exploring development of a full-scale
         program for implementation.
Improving Performance
Through Comparison
   Recognizing that making environmental information
publicly available can help raise performance levels, EPA
initiated an important new compliance initiative known
as the "Sector Facility Indexing Project." Essentially, this
project will allow the public to more easily evaluate the
environmental records of facilities and compare their
environmental performance.
• In 1996, EPA identified data collected under the
  Clean Water Act, Clean Air Act, Resource
  Conservation and Recovery Act, and Toxic Release
  Inventory for five industry sectors: petroleum refin-
  ing; iron and steel; pulp mills; primary nonferrous
  metals; and automobile assembly. Data related to past
   compliance history, facility size, pollutant releases and
   toxicity, and surrounding population has been aggre-
   gated, and is being prepared for public release later
   this year.
   This initiative represents the first time that data
across EPA programs has been compiled in one place in
a manner that will allow examination of facility-level
environmental  records across multiple statutory pro-
grams. In the past, this information was made available
through separate data systems with little or no opportu-
nity for integration.
20 Managing for Better Environmental Results

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  A Safer, Cleaner Environment Through...
                                   >     $,  * .I*
        Cutting Red Tape and
                  Paper Work
                                                               , p. -t~f ^ ฃ-"=.-! -™v ,
                                   'f tf~ ~" ซ
         EPA understands that real gains in protecting public health and the envi-
         ronment come about through hands-on work at a very local level — in
         manufacturing facilities, around community recycling centers and
         water treatment plants, and across the rural countryside — not in a dis-
tant bureaucracy As such, the Agency has focused intently on finding ways to cut
the red tape and paperwork associated with environmental regulations, so that those  ,
with environmental responsibilities can focus on solving the problems at hand.
                                                              Si"--,,
                                *„   —*---     ^ ttm - 'j_ปr_-t_i- "
                                             w^-Hf
                                       _i ซ*--ji" * ****" ••*" Hi- •*   — * -^~  -,*   ,
                                        f#   - Cutting Red Tape ancfPapcrwork 2
                                 ^-  ^s^  ปiT'*    Sป ""^^^ *"_ ~7^,^ .^ ซ ^wv**3afes^*as%s

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   Reducing Regulatory Burden
     So how much of the paperwork burden required by
   environmental regulation has EPA eliminated? To date,
   nearly 16 million hours — up from 10 million hours
   just one year ago.
     These reductions cut across all environmental areas,
   and included requirements that were duplicative, obso-
   lete, or unnecessary. For example, about one million
   hours were cut as a result of a new two-page certifica-
   tion form and similar improvements to the Toxic
   Release inventory requirements. Currently, EPA is
   working to eliminate over 8 million more hours while it
   continues searching for other burden reduction oppor-
   tunities. Following are some additional actions that EPA
   has taken this past year to help reduce regulatory bur-
   den and achieve higher levels of public health and envi-
   ronmental protection.


   "One-Stop"  Environmental
   Reporting"
      To further reduce unnecessary burden and help
   improve die use of environmental data, EPA worked on
   developing a "one-stop" approach to environmental
   reporting. Under the current system, a single facility
   might report data  to EPA, as well as state and local agen-
   cies under a variety of different authorities. These sepa-
   rate data collection systems are potentially duplicative
                      and burdensome, and make the use of data by govern-
                      ment and the public difficult. One-stop reporting is
                      being designed to address these inefficiencies, while also
                      fostering multimedia and geographic environmental
                      management approaches, and providing the public with
                      access to meaningful, real-time data. Current efforts are
                      focused on forming partnerships with selected states to
                      demonstrate full-scale implementation of reporting and
                      data management reforms, and assessing results in
                      terms of lower industry and government costs and bet-
                      ter public access.

                      • In 1996, $500,000 demonstration grants were awarded
                        to five states —Washington, Massachusetts, New
                        Jersey, Missouri, and Utah — to test one-stop report-
                        ing systems. An additional five to ten grants will be
                        awarded in 1997.

                      • EPA also worked to re-engineer its own internal data
                        systems to achieve better integration with states, to
                        enhance public access, and to promote electronic report-
                        ing of environmental monitoring and permitting data.
      10
    in
    ง
   I
                                    Burden Reduction
                                    Hours by Statute*
                                    (as of December 31, 1996)
H Planned
• Completed
Planned Total: 8.3 million hours
Completed Total: 15.7 million hours
          CWA  CAA  TSCA  FIFRA EPCRA OPA  RCRA SDWA CERCLA Misc.
                                 CTRD
                       Environmental Statute
                                  *Environmental Statutes
                                  CWA= Clean Water Act; CAA= Clean Air Act; TSCA=
                                  Toxic Substances Control Act; FIFRA= Federal
                                  Insecticide, Fungicide, and Rodenticide Act; EPCRA=
                                  Emergency Planning and Community Right-to-Know
                                  Act; TRI= Toxics Release Inventory; OPA= Oil Pollution
                                  Act; RCRA= Resource Conservation ,and Recovery Act;
                                  SDWA= Safe Drinking Water Act; CERCLA=
                                  Comprehensive Environmental Response,
                                  Compensation, and Liability Act
22 Managing for Better Environmental Results

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  Commenting on Regulatory
 Actions
    EPA tested new methods of public commenting on
 regulatory actions to make the process simpler and easier:
 • In a follow-up to its commitment to make all Federal
   Register items available electronically, EPA conducted a
   pilot project to evaluate the feasibility and usefulness
   of electronic mail as a way for interested parties to
   comment on regulatory actions. The results showed
   that most groups who comment on Agency actions
   actually prefer the traditional approach whereby com-
   ments are submitted in writing. Nevertheless, recog-
   nizing that the demand for electronic transactions is
   likely to grow in the future, EPA is now making elec-
   tronic commenting a standard option for obtaining
   public feedback on all regulatory actions.
 • In another effort, EPA tested telephone communica-
   tion. For the proposed ozone and  particulate matter
   regulation, EPA set up 888 TELL EPA, a toll-free
   number through which comments could be sent ver-
                        bally. In this case, users pre-
                        ferred the telephone over
                        electronic submissions;
                        more than 14,000 comments
                        were sent by telephone and
                        more than 4,000 were sent
                        by electronic mail. EPA also
                        learned that this option
                        might be especially helpful
                        for individuals and small
                        businesses.
Permitting New Air Emissions
   To help streamline air emissions permitting, EPA
proposed changes to its new source review regulations
that would help industries planning either to build new
or to expand existing production capacity:
• As proposed in July 1996, the changes reduce time
  delays associated with permitting, expediting con-
  struction start-up; provide greater operational flexibil-
  ity; and encourage the use of new innovative air
  emission control technologies. The proposal reduces
  the number of new or expanded sources subject to
   permitting by one-half— without compromising
   protection against harmful air pollutants.
 Streamlining Pesticide
 Registration

    Every year, under the Federal Insecticide, Fungicide,
 and Rodenticide Act (FIFRA), EPA receives thousands
 of applications to register or modify pesticide products.
 These applications involve multiple steps designed to
 ensure that products in the commercial marketplace do
 not pose unreasonable  risks to people or the environ-
 ment. In 1996, EPA took a number of steps to make the
 process faster and simpler:

 • EPA offered self-certification procedures that allow
   pesticide companies to proceed with certain actions as
   long as they first notify EPA. To ensure compliance,
   these procedures are backed up with penalties and an
   auditing system.

  •  In May, EPA proposed a rule that would allow self-
     certification of some acute toxicity testing results
     for pesticide products. Subsequently, EPA deter-
     mined that a final rule would no longer be needed,
     because the desired result — faster, simpler
     reviews — was being achieved already as a result of
     improvements in EPAs own management process.
     Today, EPA's review time  has been cut by two-
     thirds — from 12 to 4 months.

  •  In June, a final rule was issued that allows minor,
     low-risk product formulation changes, such as
     additions of previously approved dyes or perfumes,
     to be made without prior EPA approval. As a
     result, the amount  of time involved in EPA
     reviews has been cut in half— from 90 to 45 days.
• EPA began performing an analysis to determine the
  reasons that certain registration applications are
  rejected by the Agency. The results are expected to
  reveal additional opportunities for improving the reg-
  istration process in the future.

• EPA also helped develop computer software to stan-
  dardize "precautionary" labeling. These labels, which
  are based on results from acute toxicity tests, are dis-
  played on all commercial pesticide products to protect
  consumers from potential risk. The new automated
                                                                           Cutting Red Tape and Paperwork 23

-------
                    Improving Pesticide
                   Product Registration
                   A Faster, Simpler Process
            Acute toxicity
            testing results
  Minor, low risk
formulation changes
    system, which is now being explored for widespread
    industry use, would decrease EPA review time and help
    companies avoid EPA rejections due to labeling errors.
   Cleaning Up Hazardous
   Waste Sites
      EPA is working on ways to help companies and
   communities address challenges associated with manag-
   ing their Imardous wastes under the Resource
   Conservation and Recovery Act (RCRA):
   • In April 1996, EPA proposed its contaminated media
     rule to establish a new regulatory framework for man-
     aging "contaminated" remediation wastes generated
     during cleanup of hazardous waste sites. The proposal
                          provides options to exempt some remediation wastes
                          from RCRA requirements, and allows treatment
                          methods to be determined based on site-specific con-
                          ditions. The final rule, projected for completion in
                          1998, will allow equally protective, but more cost-
                          effective, treatment options for the large volumes of
                          material now subject to RCRA requirements.
Meeting Water Pollution
Control Requirements
   So that limited resources can be directed to better pro-
tection for rivers, lakes, and coastal areas, EPA worked to
improve water quality permitting under the National
Pollutant Discharge Elimination System (NPDES):
• In April 1996, EPA issued guidance allowing busi-
  nesses and communities to significantly cut back on
  water quality monitoring and reporting requirements,
  as long as certain high levels of performance are met.
  If fully implemented, EPA estimates this incentives-
  based approach could reduce the total NPDES moni-
  toring and reporting burden by 25 to 30 percent for
  most facilities. It could also help bring poorer per-
  forming facilities up to a higher standard, improving
  water quality.
 • In December 1996, a second round of reforms was
   proposed that would streamline the permit appeals
   process, allow for more risk-based monitoring, and
   expand the use of general permits to cover some
   industries. Because they provide more generic
   requirements applicable to multiple facilities, general
   permits are simpler to develop and manage than indi-
   vidual or site-specific  facility permits. Collectively,
   these reforms would reduce the NPDES regulations
   by 14 percent.
 • In another action, EPA made it easier for large cities
   to meet their responsibilities for controlling one of
   their most challenging water quality problems: storm
   water runoff. The 1987 Clean Water Act requires a
   storm water permit for all cities with populations
   greater than 100,000.  Recognizing that most of those
   permits were about to expire, EPA issued a policy in
   May 1996, to streamline the reapplication process.
24 Managing for Better Environmental Results

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For more information...
...on EPA's reinvention efforts, contact the Reinvention Team at
(202) 260-4261. Or look for information on the Internet at
"http://www.epa.gov/reinvent." You'll find special reports,
remarks from senior Administration officials, factsheets on
specific reinvention projects, and much more.
                                       ' Printed on paper that contains at least 20 percent postconsumer fiber.


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