vvEPA
            United States
            Environmental Protection
            Agency
            Office of the Administrator
            (1801)  ;  ;  - '
EPA100-S-99-001
March 1999
www.epa.gov/reinvent
Reinventing Environmental
Protection
Executive Summary
      INFORMATION
         FLEXIBILITY
       BURDEN
                                 ARTNERSHIP
                                 COMPLIANCE
              C« £K. DeMtltUiAK.
            1998 ANNUAL REPORT

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                                                          REINVENTING ENVIRONMENTAL PROTECTION
    1998 marked another year of steady progress in the U.S. Environmental Protection
 Agency's (EPA's) efforts to reinvent environmental programs. EPA began its reinvention
 efforts in 1995 when President Clinton, Viog7P,resident Gore, and EPA Administrator Carol
 Browner announced a reinvention agenda to make environmental and public health protec-
tion programs more efficient and effective. Since that time, EPA has pursued common sense
 reforms and new ideas that can help us achieve national goals, such as clean air, clean water,
: and better waste management.
    As a result of these efforts, the Agency has cut the annual paperwork burden associated
 with^ environmental requirements by more than 26.9 million hours a year. We've dramatically
 increased public access to  environmental information, enabling citizens to go online and find
 out about issues of concern. Through an array of environmental stewardship programs, the
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 Agency has worked with public and private sector  partners to voluntarily change their busi-
 ness practices to produce significant environmental and economic benefits—the latest data
 shows these partners saving more than $1.6 billion a year by eliminating waste, preventing
 pollution, and conserving energy and water. We've launched special programs, such as the
 Common Sense Initiative and Project XL, which allow us to test new approaches for pursu-^,
 ing environmental and public health protection goals. To boost environmental performance,
 we've  creajed incentives that can lead regulated parties to exceed baseline requirements, and
 offered new tools and assistance so business and communities have what they need.to com-
 ply with the law.
    Last yearTAdministrator Browner made several  strategic decisions that should advance
 our reinvention capabilities even further. She laid  out a vision for improving the way EPA
 managesjind disseminates environmental information, and called for a new^information
 office to* be set up—the first in the Agency's history. Harnessing the many lessons'learned
 about working effectively with Industry sectors and other stakeholders through the
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 Common Sense Initiative, the Administrator approved plans to apply this learning broadly
 within EPA programs. After working on the details for more than a year, she signed an
 agreement'jvjth the states  that provides the additional flexibility and assurance they need to
 proceed with their own reinvention initiatives. These decisions were milestones in a year
 when we followed through and delivered on some of our earliest reinvention commitments.
 But the ye.$r also brought new challenges and initiatives with the potential to significantly
 shape how environmental management is conducted in the 21st century.

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REINVENTING ENVIRONMENTAL PROTECTION
                                     BETTER ENVIRONMENTAL  INFORMATION
                                        With more than 40 million hits on EPA's "Web site every
                                     month, public demand for high-quality environmental informa-
                                     tion has never been greater. To meet this and other related
                                     demands, EPA began setting up its first information office. In
                                     addition to improving data quality and streamlining reporting, this
                                     move will advance community right-to-know opportunities for cit-
                                     izens and improve our ability to analyze environmental conditions.
             Established a National Center for Environmental Information and Statistics
                A new online center launched in August is putting EPA's vast reserves of environmental
             data to work for citizens. The center makes it faster and easier than ever before to retrieve,
             compile, and present data stored in numerous environmental databases. Users can request
             easy-to-understand reports about drinking water, surface water, air quality, hazardous waste,
             and toxic releases in their communities—just by typing in their zip code.
             Developed Real-Time Reporting Capabilities
                To enable citizens to make decisions about their daily lives by taking actual environmen-
             tal conditions into account, we worked with select communities on an environmental
             reporting breakdirough—offering real-time, rather than historical, data. This advance offers
             answers to basic questions, such as "is the air quality safe for me to go jogging today" or "is
             the water safe for a swim?"
             Pushed for More Environmental Disclosures
                Recognizing the effect that public disclosure can have on environmental performance,
             the Agency took actions to make more environmental information publicly available. We
             proposed to expand reporting under the Toxic  Release Inventory for persistent, bioaccumu-
             lative chemicals, such as dioxin and mercury, by almost 25 percent. Other actions will give
             Americans access to information about the hazards from lead-based paint when renovating
             or remodeling their homes, whether their drinking water meets federal public health stan-
             dards, and die potential risks from facilities in  their neighborhoods that produce, use, or
             store chemical products.
             Challenged the Chemical Industry to Make
             Product Toxicity Data Publicly Available
                A new program, announced by Vice
             President Gore, challenges the chemical industry
             to provide missing information on about 2,800
             of the nation's most widely used toxic chemicals
             to the public. By agreeing to conduct any neces-
             sary toxicity testing and to publicly report the

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                                                         REINVENTING ENVIRONMENTAL PROTECTION
results, companies can help resolve remaining questions about risk levels and avoid the need
for further regulation.
Offered Citizens Tools for Evaluating Environmental Performance
   New databases were made publicly available that allow citizens to evaluate and compare
the environmental performance of individual facilities or industry sectors as a whole. A
database created under the Agency's Sector Facility Indexing project offers compliance and
other environmental performance information on facilities in six industrial sectors. Another
database, known as E-GRID, provides extensive data on the environmental performance
and efficiency of electric utilities—information that might become more valuable as deregu-
lation gives consumers more  choice in determining their energy provider.
STRONGER  PARTNERSHIPS
   Industries, businesses, community groups and many other organizations are increasingly
working witli EPA as partners to improve environmental performance, cut costs, and avoid
new regulations. These partnerships are leveraging limited resources and spawning new
ideas that can produce better results more quickly and more cost-effectively than what
might be expected through regulatory actions alone.
Collaborated on Joint Ventures with the States
   With two-thirds of the states now working with EPA under the National Environmental
Performance Partnership System, special attention was given to creating more meaningful envi-
ronmental performance measures that demonstrate the results from federal and state programs.
The year also brought agreement on a process that gives states the flexibility and assurance they
need to engage in their own regulatory reinvention initiatives and still meet federal standards.
Offered Assistance for Smart Growth
   To help more communities avoid poorly planned
development, urban decay, and loss  of valuable green
space, we supported "smart growth" through Agency
programs. We led a national network to help  expand
smart growth tools and information. And by  expanding
a $500,000 pilot project into a $5 million national
grant program, EPA offered 45 communities  seed
money to launch sustainable development initiatives in
agricultural, rural, and urban settings.
Doubled Support for Brownfields Redevelopment
   By offering $21 million to 107 communities, the Agency doubled its investment for revitaliz-
ing brownfields—abandoned, idle, or unused properties tainted by environmental contamina-
tion. Since 1995, EPA has awarded  more than $42 million to 227 communities with a goal of

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REINVENTING ENVIRONMENTAL PROTECTION
             supporting 300 brownfield projects by the end of 1999. In March, Administrator Browner
             joined Vice President Gore to announce that 16 projects would collectively receive an additional
             $28 million and other assistance to create "Brownfield Showcase" communities for the nation.
             Promoted Environmental Stewardship Through Partnership Programs
               To spark interest among potential new members, the Agency compiled and publicized the
             latest annual results on the environmental and economic benefits from participating in its
             voluntary partnership programs. The results showed that about 6,000 partners—ranging from
             Fortune 500 companies to small family-owned businesses—saved $1.6 billion through volun-
             tary improvements that eliminated 7.6 million tons of solid waste, prevented the release of
             79 million metric tons  of the pollution linked to global warming, saved nearly 6 million gal-
             lons of clean water, and conserved enough energy to light 56 million households for a year.
             Shared Business Risks
               In April, EPA offered to become a financial partner with responsible parties under
             Superfund that are willing to invest in innovative cleanup technologies. We agreed to share up
             to one half of the additional cost that would be incurred in cases where an innovative technol-
             ogy might fail and necessitate further investment. In so doing, the Agency reduced the respon-
             sible parties' financial risks and bolstered support for new technology use and development.
             MORE  TAILORED, FLEXIBLE APPROACHES
               Increasingly, EPA is relying on a mix of regulatory and nonregulatory approaches to solve
             environmental problems in common sense ways. In some cases, this means offering incen-
             tives that prompt voluntary environmental improvements. In others, regulations are needed,
             but can be tailored to offer more flexibility in choosing among compliance options.
                               Offered Flexible, Cost^Effective Program for Reducing Smog
                                  In September, EPA issued a flexible, cost-effective plan that would
                               allow most areas of die county to meet the  1997 antismog standards
                               without having to implement costly new controls. The plan offers com-
                               pliance options for states, which include an emission trading program
                               for power plants and other sources of nitrogen oxide—a primary ingre-
                               dient in smog formation. This approach has the potential to drop the
                               per-ton cost of controlling these emissions from as much as $10,000 to
                               about $1,500.

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                                                         REINVENTING ENVIRONMENTAL PROTECT ION
Launched Clean Water Action Plan
   In February, President Clinton unveiled a compre-
hensive Clean Water Action Plan to finish the job of
protecting the nations waters. Developed with
unprecedented cooperation at the federal level, this
plan offers the first-ever, multiagency budget for clean
water programs and specifies more than  100 actions to
address high-priority problems, such as polluted
runoff from livestock operations.
Rewarded Pollution Prevention Achievements
   The Agency supported technical innovations that minimize waste and the use of toxic
chemicals and that help avoid the need for new requirements. This included offering
Presidential awards for outstanding green chemistry achievement. In 1998, awards were
given to four companies and two university research teams whose discoveries offer more
environmentally sound alternatives to current products and processes.

Focused On the Needs of Industrial Sectors and Other Stakeholders
   After 4 years of unprecedented collaboration involving many diverse parties,
Administration Browner concluded the Common Sense Initiative as an experimental pro-
gram, for testing a fundamentally different approach to environmental protection. Lessons
learned from working with six  industrial sectors and other stakeholders formed the basis of
new plans to adopt sector-based approaches more broadly across Agency programs and to
improve EPA's ability for involving stakeholders in decision-making'processes.

Used Project XL to Pursue Innovative Approaches
   The Agency approved three  new projects in 1998, and developed a simplified process for
approving additional projects in the future. One participating company is exploring how
environmental management systems might be used to simplify permitting, recordkeeping
and reporting requirements. In Massachusetts, the state environmental agency is testing self-
certification procedures as an alternative  to traditional environmental permits.
Promoted Innovative Technologies
   Recognizing the financial risks and regulatory barriers faced by companies trying to
develop and market innovative environmental technologies, EPA offered information and
sponsored trade shows and award programs to showcase new technologies. In a new role, we
also helped broker discussions between technology developers and representatives from the
financial community in order to secure more capital for new technology development.

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REINVENTING ENVIRONMENTAL PROTECTION
                                         GETTING TO COMPLIANCE—
                                         AND  BEYOND
                                            Throughout the year, we looked for ways to help busi-
                                         nesses and communities improve their environmental per-
                                         formance. Often, this meant providing more information
                                         or technical assistance, particularly for the smaller entities
                                         that do not always have the resources they need to under-
                                         stand what is required. Increasingly, it meant creating
                                         incentives that encourage companies to reach for perfor-
                                         mance goals that go beyond compliance.
             Responded to Growing Interest in Environmental Management-Systems
               Recognizing the interest and questions still surrounding use of Environmental
             Management Systems, EPA launched pilot projects to test their effectiveness and gather
             information that will be used in future policy decisions. In a move that sent an important
             signal to the regulated community, we issued a policy statement clarifying EPA's support for
             environmental management systems that "help an organization achieve its environmental
             obligations and broader environmental performance goals."
             Opened Five More Compliance Assistance Centers
               In partnership with other organizations, EPA opened new compliance assistance centers
             on the Internet to serve five more sectors: the printed wiring board manufacturers, the
             paints and coatings industry, the  transportation sector, chemical manufacturers, and local
             governments. With the four centers opened previously, nine centers  are now up and run-
             ning. These centers are tailored to serve small and medium-sized organizations, providing
             users with round-the-clock access to information about environmental regulations, pollu-
             tion prevention techniques, and related issues.
             Encouraged Environmental Improvements Through
             Self-Auditing
               More companies had environmental penalties
             reduced or eliminated under an incentive-based policy
             EPA announced in 1996 that encourages self-auditing,
             along with quick correction and public disclosure of any
             environmental violations. As of December 1998, 318
             companies had corrected and publicly disclosed environ-
             mental violations at 1,668 facilities, a twofold increase
             over the number of facilities doing so the-year before.

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                                                        •'REINVENTING ENVIRONMENTAL PROTECTION
Supported Corporate Environmental Mentoring
   Recognizing that businesses can often help each other improve environmental perfor-
mance, EPA offered funding to support what could become a new trend in corporate
America—environmental mentoring. These funds are being used to create an institute that
will provide the information and tools needed to support mentoring relationships between
companies thtat have environmental expertise to offer and those in need of special assistance.

Provided Funding to Improve Drinking Water Compliance
   More than 300 small communities facing newjrequirements under the 1996 Safe
Drinking "Water Act got special help in 1998 when the Agency began administering the fed-
eral government's first-ever loan program for drinking water improvements. Rather than
one-time grants to  select communities, financial assistance was offered through state revolv-
ing loan programs. All but the most needy recipients repay their low interest loan, enabling
the states to maintain a reliable source of capital for  other communities needing assistance.
LESS REGULATORY  BURDEN
   Many reinvention efforts had the effect of reducing
the regulatory burden imposed by environmental
requirements in 1998, but the requirements imposed
for recordkeeping and reporting continued to be a
major focal point. By the end of the year, EPA had
cut 26.9 million hours of paperwork burden by
streamlining processes, eliminating outdated provi-
sions, or consolidating duplicative requirements—
without sacrificing the Agency's ability to ensure
environmental and public health protection. These reductions, which surpassed the Agency's
1995 goal of reducing burden by 25 million hours, offset additional requirements that have
taken effect in recent years to increase environmental protection and accountability. They
should also save businesses and communities an estimated $807 million a year.
Proposed a Consolidated Air Rule for Chemical Manufacturers
   A proposed rule that consolidates 16 federal air regulations into a single guideline could
save the average U.S. chemical plant about 1,700  hours or $80,000 a year in the future.
The proposal, which represents the first consolidated rule ever under the Clean Air Act,
would be voluntary. Plant managers could opt to  comply with the consolidated  rule or con-
tinue operating under the existing 16 rules.
Streamlined Certification Process for Auto Makers
   A streamlined process  for certifying that new passenger cars and trucks  meet federal stan-
dards for air pollution emissions is expected to save automobile manufacturers an estimated
$55 million a year. Under the proposed process, testing would be performed on vehicles

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REINVENTING ENVIRONMENTAL PROTECTION
                                   actually in use on the nations highways rather than on brand new
                                   vehicles. In addition to cutting burden, die new process creates an
                                   incentive for manufacturers to produce more durable emissions
                                   control equipment and gives EPA better data for managing air
                                   quality programs.
                                   Simplified Hazardous Waste Management Requirements
                                     The Agency addressed several barriers that have prevented com-
                                   mon sense practices in managing hazardous wastes. Reforms to the
                                   20-year-old program for managing polychlorinated biphenyls, or
                                   PCBs, are expected to produce cosrsavings estimated at between
                                   $178 million and $736 million each year. New treatment standards
             for land disposal of hazardous waste will facilitate cleanups of contaminated sites. Another
             regulation simplifies the cleanup and closure of hazardous waste disposal facilities.
             Offered Compliance Alternatives to Small Drinking Water Systems
                Based on the 1996 amendments to the Safe Drinking Water Act, the Agency issued new
             regulations that will give small community water systems less expensive treatment alterna-
             tives to comply with federal drinking water standards in the future. Smaller systems can also
             request more time to achieve compliance and variances from federal requirements, as long
             as such actions do not threaten public health.
                               that Discourage'Removal of Lead-Based Paint
               We proposed a new rule to expedite the removal of lead-based paint because doing so
             will help protect*children: from exposure to lead. Based on studies showing that lead-based
             paint debris could be safely placed in ordinary landfills (under the Toxic Substances Control
             Act), we proposed jhat this disposal option be provided as an-alternative to the traditional,
             but more expensive disposal currently required under hazardous Waste regulations.
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             Published Plain Language Regulations                    \        \
               In 1998, the Agency issued several regulations using plainer language^and simpler for-
             mats than-ever before.. Among them were important requirements explaining what gas sta-
             tion owners, industrial facilities, and others operating underground injecticin wells must do
             to protect local drinking water supplies, and what industries must do to respond in a chem-
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             ical emergency situation. These improvements were possible because of a pilot, program
             began in 1997 to improve the understanding of EPA regulations.

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               also contact'the Office of Reinvention in "V^shinetonltt"202 260-1849" In this office, our
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               start manage multimedia reinvention initiatives, such as  rroject XL and coordinate remven-
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               these organizations have senior level managers assigned to oversee reinvention initiatives.
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                                                                    cil. Their responsibilities include
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               Together they make up EPA's Reinvention Action Counci,


               resolving issues that hinder reinvention progress and being available to staff and external


               constituents^whojnight have ideas or concerns about jeinvention issues. A current listing of


               the Reinvention Action Council members, ^along with information about how to contact


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