"Protect people, not bureaucracy. Promote results. not rules. Get action, \ not rhetoric." United States Environmental Protection Agency Office of the Administrator EPA100-R-97-007 July 1997 A REPORT ON REGULATORY REINVENTION Creating a "Fundamentally Different System..." Can we create an environmental regulatory system more attuned to the needs of specific industry sectors and stakeholder groups? • his question is often asked during debates about how to , improve our current envi- ronmental regulatory system. As a result, early in her tenure EPA Administrator Carol Browner launched the Common Sense Initiative (CSI) as a "fundamentally different system" that would allow industry- based, multistakeholder approaches to be explored. From its origin, CSI has provided a pathfinding forum for breaking through one of the biggest constraints associated with the current environmental regulatory system — the single-media approach to pollution control that has prevailed for more than 25 years. During this time, con- trolling pollution in specific media — our air, land, and water — has worked well for „ :-,:..*,«, H,;£g*fe-i inside. CSI Sectors Get Special Help in New England 3 New York City Printers and Communities Get a Helping Hand from CSI 6 Metal Finishing Sector Creating National Performance Goals 7 Reinvention Listserver 8 reducing adverse impacts from the most obvious sources, namely large industries and municipal operations. But recently, the limitations of this approach have become widely recognized. Across the country, environmental managers in industrial and municipal facilities face difficulties in try- ing to track, understand, and comply with multiple regulatory requirements. And EPA staff have often failed to recognize the opportunities for achieving better environ- mental results that lie outside their tradi- tional realm of responsibility. In addition, concerned citizens and other interested stakeholders often have difficulty accessing and understanding environmental infor- mation and participating in environmental policy and decision-making. CSI confronts these limitations, replac- ing the single-media or pollutant-by-pollu- tant approach of the past with a more com- prehensive industry-by-industry approach for the future. This new orientation, along with a commitment to multiple stakeholder involvement and consensus-based decision- making, are CSI's three defining elements. (CONTINUID ON PAGE 2) PRESIDENT CLINTON ------- Automobile riz&Him&r m Manufacturing Computers & Electronics iron & Steel Metal Finishing Petroleum Refining industries 7 7 nercent o ross national over , veople, and The Defining Elements of CSI CONSENSUS-BASED DECISION-MAKING CSI An Industry- by-Industry Approach Under CSI, diverse stakeholders con- vene to discuss how to improve environ- mental performance in specific industry sectors. This involves looking at tradi- tional regulatory functions, such as per- mitting and reporting, and also searching for new opportunities to improve envi- ronmental performance that may not have been investigated or even recognized. To date, CSI has targeted six industry sectors: automobile manufacturing, com- puters and electronics, iron and steel, metal finishing, petroleum refining, and printing. Together, these industries com- prise 11 percent of the U.S. gross nation- al product, employ over 4 million people, and account for more than 12 percent of the toxic releases reported by American industry. These sectors were chosen to represent a broad array of challenges currently fac- ing American industry. Among the six, automobile manufacturing, iron and steel, and petroleum refining are three large, highly regulated industries with a long, and sometimes controversial, rela- tionship with EPA. The metal finishing REPORT ON REINVENTION and printing sectors were chosen to rep- resent the challenges of small businesses, which dominate these industries. Finally, the computers and electronics industry was selected because many of today's processes were not in existence when most environmental regulatory require- ments were written years ago. Multistakeholder Participation To ensure all relevant interests are brought to bear on the changes that evolve under CSI, multiple stakeholders are invited to participate in the dialogue on how to improve traditional regulatory approaches within specific sectors. These stakeholders, which include environmen- tal organizations, environmental justice groups, labor unions, government regu- lators, and industry, have their own dis- tinct needs and interests. For example, industry participants often want more operational flexibility; environmentalists seek continued tough action against pol- luters; communities seek better access to information about the industries in their neighborhoods; and state, tribal, and local governments rally for simpler regu- latory systems. CSI invites these diverse interests to explore and promote innova- tive reforms together. July 1997 ------- *l(:U>fe&"«?* *• -„ Ufe-lHf ,*%* (, «*±1*."W g%*tfr S v ri "^ ej, ^ TT *• „ peratirtjjj rinciples Tr!S?/W""'*»J * vi"*1- «n» »i » V cipating and commumcat- ***£ * «**"«* »«wO«d^%»w«=.J ~~ i,pperi7cliiect coopera- ! U .,&* fstls I and takirig caie not to rais- , /^present the views of other i parties on any agi cement "1 tied,,or to mischaiacteiize 1 ^ % •'•'s'"'™ w "* $* ****•» g ; final those matter^ stijl under 1 ^ Seeking to reach a consensus in Jgood faith, asking for clanfica- ttton, offering alternative sug- "gestions, and listening with an * ^l**~ * Vf, ^ T *^ operl"inind to issues under '»vf ,v _ , -, JBuilding relationshipb with , Vv» 4 -i^p-j^ v i^^. ^ -,_ other membei s that go beyond teriure of ttje Council orv nducting ourselves and pur Jajiiza'tTons in a mannei con- ^ jgSten,t with^the goals and spint "*! ^ClpSI, which each membei *has accepted by agreeing to «^rv£pn the C^SJ Council Decision-Making by Consensus How does CSI channel the energies of diverse stakeholders into decisions that are productive and acceptable to all par- ticipants? The answer lies in consensus- based decision-making, which means giving all voices an equal chance to speak; treating all options, suggestions, and opinions as worthy of considera- tion; and promoting flexibility. Over the past 3 years, CSI participants have found that consensus-based decision-making, while sometimes lengthy, produces stronger environmental protection strategies developed with the very parties responsible for their implementation. A consensus-based approach creates synergy among participants — it affects the way people listen, encourages them to weigh options, and stimulates their creativity in finding solutions to tough problems. It also encourages full and open discussions prior to EPA action. Traditional regulatory processes have often led to conflict and gridlock, with environmental and economic ideals pit- ted against one another. In contrast, CSI's consensus-based approach airs the interests, concerns, and requirements of the various stakeholder groups up front in an effort to identify mutually accept- able and advantageous strategies and to avoid costly and time consuming con- frontations later in the process. CSI Help in • ,. . . A~£* . . »«OT - „ * I n the northeast, CSI is getting a bo,cpt from the New England EnvirorSjiental Assistance Team (NEEAT), anElk staff dedicated to helping.speafic sec-^ tori, understand and comply wi§ envnonmental lawsand regulations, and^* a means of achieving economic and enyi >Iiance. Based on focus group discu: the greatest challenges in i il finishing, electronics majj^afturing, and attention; plore pollution prevention practices nmental benefits that go beyorKLco Lifelttfy those sectdfs . _ _ ., ftoWJtti* CTvfes^tf-yh^ ^ '-"requiiements, NEEAT i - all CSI sectpiS —*Jor speci If • mT jiff *^ K ' ' •-' «4fff* INEEAT is devo& toJistenmg tjr segor representativ^lnd then working in j bperation with teade associations* In^idual com|p§ies, and local government j |ncies to proviff ir^rmation, trammi, and oiher assistance as needed — even if * Jjlg jsiij Sr aSff *^K ' "' i not align iptrQraditional EPA,^ergices. Sample services offered to date include: 1 Joll-free; vice for j ilk j hotline (1-80E90K&BA.T) that provides a "one-stop-shopping" | ask questjpcts about pollution prevention and compliance. tJ'Partners for Change/' ajrolun|ary recognition program that encourages busi- *^^^id commnmties — nojjjptter how small — to explore and implement onsible environmental practices. "documents on nQntiaditional topics, such as Financing Pollution ^mpd si' ' - ItwegttjentstAGmdefy Sryall and Medium-Sized Businesses. |pst recently, ^Pan wor^g Wlth the auto repair and wood coating flgld^jigfthe positive response from its customers, EPA expects ST\y]|lexpand in the future to provide additional services and to include jLsectors, July 1997 REPORT ON REINVENTION ------- How Project Work Groups Project Work Groups Project Work Groups Project Groups Project Work Groups Project Groups L EPA's Administrator and Deputy Administrator co-chair the CSl Council; Assistant Administrators! Fiegional Administrators, and Deputy Regional Administrators serve as chairpersons for CSi subcommittees. Putting CSI to Work CSI is guided by a Council that includes senior leaders from industry and numerous national stakeholder groups. The Council acts as an umbrella for the subcommittees established to explore issues facing each sector. The subcommittees then create work groups to pursue various projects specific to their interests. Sector subcommittees and work groups meet frequently to discuss project progress and policy issues. Results from these efforts may lead to action in one of two ways. First, decisions and findings may be forwarded to the CSI Council, which may translate them into recom- mendations for EPA policy or regulatory actions. For example, the computer and electronic subcommittees recommended EPA take action to ensure that all inter- pretations and decisions affecting envi- ronmental management practices be compiled, made accessible, and publi- cized to interested parties. In response, EPA has set up an Enhanced Public Access Task Force that, among other things, will provide training to regulation writers to help improve the clarity of EPA regulatory language and institution- alize the posting of all new regulatory documents on the Internet. In cases where no EPA action is needed, industry and other participants in the CSI process may act on opportunities for improve- ment independently. Together, these two outcomes are the means through which CSI becomes a force for long-term, pro- gressive change. The CSI Council operates in accor- dance with the Federal Advisory Committee Act (FACA), passed in 1971 to improve public confidence in decision- making and open government processes to public participation. FACA commit- tees are required to have balanced mem- bership representation; their meetings are announced in advance and open to the public, and, as the Act states, "they are frequently a useful and beneficial means of furnishing expert advice, ideas, and diverse opinions to the federal gov- ernment." Given the number and diver- sity of participants involved, the rules guiding FACA committees provide a firm foundation for CSI's open, deliber- ative process. Cross-Agency Support Within EPA, CSI is not an isolated program. Rather, it permeates nearly every traditional program office in the Agency. It does have a small distinct staff, located in the new Office of Reinven- tion, with coordination and communica- tion functions inside and outside the Agency. This staff is only part of a larger cadre of EPA professionals, however, REPORT ON REINVENTION July 1997 ------- CSI Projects Are Exploring AH Aspects of Environmental Management Environmental j \Technology Recordkeeping & Reporting ' Compliance & Enforcement 12% Permitting 8% working on a variety of CSI sector- specific initiatives. This internal network is creating new links among programs, a critical development in achieving the multimedia, industry-by-industry break- throughs that CSI envisions. Success, To Date As CSI has evolved over the past 3 years, a common interest in building a better environmental regulatory system has helped to keep participants at the table even during the most difficult dis- cussions — when diverse opinions and interests have been obvious. Because of this commitment, progress continues to be made in each of the six industry sec- tors. Over 40 projects, in various stages of development and implementation, are underway that, collectively, have the potential for affecting all aspects of envi- ronmental management and regulation. These projects were based on subcom- mittee members' intimate knowledge of the processes, regulations, and policies that affect industries, communities, and our natural resources. The sector profiles that follow provide more detail on why Over 40 projects, m'':f| ;v;"'Si. various stages of devel- opment and implemeh- that, collectively, hav| .. . • _ •-•L'Siiii '!'" " fli'H^ ing all aspects of envi- ronmental managemien^ and regulation. :>'^3Jl specific projects were chosen, what has been accomplished, and how they may affect environmental policies and man- agement approaches more broadly. As work continues under each sector, EPA and Council members are consider- ing how the CSI process might work more effectively in the future. At differ- ent stages, various stakeholders, as well as EPA's own staff, have registered con- cerns. For example, one conclusion reached in independent and government evaluations, as well as during the Coun- cil's own self-assessment, is a need for more direction and leadership from EPA. As CSI becomes more mature and moves into the new Office of Reinvention, the Council may be asked to assume an expanded advisory role, one that would focus on an even broader array of regula- tory reform issues. This expanded role is being considered based on EPAs contin- ued confidence in the Council's ability to lead and address some of today's most challenging environmental management issues. July 1997 REPORT ON REINVENTION ------- New York City Printers and Communities Get a Helping Hand from CSI Solvents, inks, and other mate- rials used in the printing process create a number of environmental management challenges for the printing sector. In an effort to help these businesses better understand and comply with their obligations under federal, state, and local environmental laws, CSI targeted an area of the country with a heavy concentration of printing shops — New York City. Nearly 2,400 shops are in operation there, and more than 75 percent of them are small busi- nesses with 10 employees or less. By act- ing as an organizational force for local printing service providers, as well as for community activists interested in pro- moting cleaner printing in their neigh- borhoods, CSI is helping to meet the informational needs within the printing industry while testing models with possi- ble applicability in other locations and sectors. Printers Learn Where to Turn A dozen organizations in New'York City offer technical assistance to local printers to help them understand envi- ronmental requirements and to assist them with pollution prevention techniques. These include state and local providers, trade associations, environmental ombuds- men, and industrial extension services. Col- lectively, these organizations are a powerful resource for printers interested in obtain- ing environmental regulatory information. But CSI work group members, dedicated to improving environmental performance within the sector, realized that many assis- tance providers were not aware of each other's services. So, how could printers know where to turn for information? hi an effort to raise awareness about the educational and assistance opportunities available, CSI invited Newark City tech- nical assistance providers to a summit to describe their services and to learn about the services of others. Thanks to these organiz- ing steps taken by the CSI work group, this information exchange was so successful that meetings have continued quarterly. This summit also resulted in a technical assistance directory, which is distributed free to all printers and to community members who are also keen to learn about preventing pollution from printers in their neighborhoods. So far, well over 4,000 books have been distributed, and based on high demand, plans have been made to reprint the directory in other languages, such as Korean, Spanish, and "Yiddish, and to provide for regular updates. Communities Share the Responsibility CSI is also building assistance capacity for the printing sector through another network: interested and committed indi- viduals living and working within the community. Realizing that federal, state, and local environmental officials cannot be the sole advocate for environmental protection, citizens are fast becoming active participants in seeing that their neighborhoods are clean, healthy, and prosperous. One avenue for this partici- pation is helping local businesses operate in an environmentally sound manner. Through the community advocacy and technical expertise of the CSI print- ing work group, five community groups in the New York City boroughs were brought together to learn about printing procedures and pollution prevention techniques that local printers may use to help keep the environment clean. Today, these community groups are better edu- cated about good printing practices, and as consumers, know how to select "green" processes that reduce pollution. Soon, they will reach out directly to local printers to encourage them to learn more about compliance and pollution preven- tion, while keeping sight of the much needed printing services and employ- ment opportunities provided by these companies. This unique approach has lead CSI participants in all sectors to reconsider the public's role in environ- mental matters. REPORT ON REINVENTION July 1997 ------- Metal Finishing Sector Creating National Performance Goals »n a bold effort to foster improved environmental performance across an entire industry, the metal fin- ishing sector is creating a voluntary Strategic Goals Program that sets "mean- ingful and achievable" performance targets for metal finishing firms. These targets include a 98 percent efficiency rate for metals utilization on products, a 50 per- cent reduction in water use, a 25 percent reduction in energy use, a 90 percent reduction in organic Toxic Release Inven- tory emissions, and 50 percent reductions in metals emissions and hazardous sludge disposal. The voluntary goals also include reductions in sludge generation, human exposure rates, and compliance costs. Performance targets also are being set for the metal finishing industry as a whole. These include a 100 percent compliance rate across the industry and 80 percent of all firms achieving the facility-specific targets described above. The performance goals are bolstered by an action plan that includes commitments by all stakeholder groups — industry, government, and nongovernment organi- zations — to support the Strategic Goals Program. These actions will cover many important issues for the metal finishing industry, such as reporting reforms, improved compliance assistance, and development of low-cost pollution pre- vention technologies. The action plan includes a commitment to tough enforce- ment against chronic noncompliers, bal- anced by tangible recognition of top-per- forming facilities by all stakeholder groups. Taken as whole, the action plan will provide facilities with incentives to pursue the goals and will reduce barriers to achieving them. Below are two exam- ples of specific actions being taken to support the industry. Working With Local Wastewaier Plants on Industrial Wastewater Pretreatment Publicly Owned Treatment Works (POTWs), also known as wastewater plants, have a major impact on the envi- ronmental performance of metal finish- ers because of the control POTW opera- tors have over the wastewater sent from metal finishers to the POTWs for treat- ment The metal finishing sector recognized this leverage point, and identified oppor- tunities for POTW operators to improve pretreatment practices of industrial facilities in their systems — in other words, to reduce pollutant loadings without limiting indus- trial activity. The sector analyzed POTW practices in three states, then presented ideas for improved POTW information, education, and flexibility to EPA's Office of Water. The Agency has used these stakeholder findings in taking decisive action to provide POTWs with better data systems, training tools, operating guidance, and soon-to-be-proposed regulatory reforms. This collaborative effort by CSI stakeholders and EPA will help POTWs continue their progress in reducing the discharge of pollutants in wastewater. A Well-Balanced Compliance Assistance Program The metal finishing sector is address- ing the compliance assistance needs of small business in this sector with two products that are now available to metal finishers nationwide. The National Metal Finishing Resource Center pro- vides online technical assistance on metal finishing processes and environmental technologies. The Metal Finishing Guidance Manual contains comprehen- sive, plain English information on federal and state environmental standards. Together, these two new tools provide metal finishers with quick, easy, and up- to-date information on how to improve their environmental performance. Meijil:^ water' tiSSipf'; bjf ''Bl;|SIjr| cent, "alia '^nrMus July 1997 REPORT ON REINVENTION ------- Reinvention Listserver Wint to stay on top of the atest activities and events on reinventing environmental protection? EPAs Office of Reinvention has set up an e-mail list- server to distribute key announcements about reinvention activities and events. The listserver is just one tool in EPA's continuing efforts to improve public access to critical information. Anyone with an e-mail account may subscribe (at no charge) to the reinven- tion listserver. To subscribe, send an e-mail message to: listserver® unixmail.rtpnc.epa.gov On die first line of the message type: "Subscribe reinvention your name" "Vbu should receive an automatic confirmation message stating that you have subscribed successfully. Questions? Suggestions? Contact Jeff Morin, Office of Reinvention, at morin.jeff@epamail.epa.gov or 202 260-5067. More nformatlon CTo'you have questions about EPA's reinvention activities? Would you ITRe of thisjeport? If so, corrtacf* .EPA's Regulatory Reinvention Team at 12 260-4261. Or look for more __.jnformationj>n the Internet_2J_V^^_ ^KttpiT/wwwTejJa'.'gov^reinvent). You'll JliricrspecJa'r reports, remarks from "^Iprriior Administration and Agency ^_ Officials, detailed fact sheets, and ^- much more. &EPA United States Environmental Protection Agency Washington, DC 20460 (1102) Official Business Penalty for Private Use $300 FIRST CLASS POSTAGE & FEES PAID EPA Permit No. G-35 ------- |