f/EPA
United States
Environmental Protection
Agency
Office Of The
Chief Financial Officer
(271OA)
EPA-190-R-01-001
March 2001
U.S. Environmental
Protection Agency
Fiscal Year 2000
Annual Report
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MISSION
The mission of the U.S. Environmental Protection Agency is to protect human health and to
safeguard the natural environment—air, water, and land—upon which life depends.
J
EPA's purpose is to ensure that:
All Americans are protected from significant risks to human health and the environment where they live,
learn and work.
National efforts to reduce environmental risk are based on the best available scientific information.
Federal laws protecting human health and the environment are enforced fairly and effectively.
Environmental protection is an integral consideration in U.S. policies concerning natural resources, human
health, economic growth, energy, transportation, agriculture, industry, and international trade; and these
factors are similarly considered in establishing environmental policy.
All parts of society—communities, individuals, business, state and local governments, tribal governments—
have access to accurate information sufficient to effectively participate in managing human health and
environmental risks.
Environmental protection contributes to making our communities and ecosystems diverse, sustainable
and economically productive.
The United States plays a leadership role in working with other nations to protect the global environment.
J
STRATEGIC GOALS
1. Clean Air
2. Clean and Safe Water
3. Safe Food
4. Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces, and Ecosystems
5. Better Waste Management, Restoration of Contaminated Waste Sites, and Emergency Response
6. Reduction of Global and Cross-Border Environmental Risks
7. Expansion of Americans' Right-to-Know About Their Environment
8. Sound Science, Improved Understanding of Environmental Risk, and Greater Innovation to Address
Environmental Problems
9. A Credible Deterrent to Pollution and Greater Compliance with the Law
10. Effective Management
k Reflects 1997 Strategic Plan goal language, under which FY 2000 performance was conducted. Goal language has since been updated.
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
THE ADMINISTRATOR
March 1, 2001
The President
The White House
Washington, DC 20500
Dear Mr. President:
I am pleased to present the Environmental Protection Agency's Fiscal Year 2000 Annual
Report. Under the authority of the Reports Consolidation Act of 2000, this report consolidates
several reports to provide a comprehensive look at EPA's programmatic, managerial, and
financial activities over the past fiscal year. This report meets the requirements of the
Government Performance and Results Act, the Federal Managers Financial Integrity Act, the
Agency portion of the Inspector General Act Amendments, the Government Management
Reform Act, and the Chief Financial Officers Act.
Over the past three decades, our nation has realized tremendous progress in our common
mission to preserve and protect our environment and the health of all Americans. Today,
millions of Americans are breathing cleaner air, drinking safer water, eating food that is free from
pesticide residues, and are living in communities that are protected from toxic chemicals. We
have seen that environmental protection and economic prosperity can and do go hand-in-hand.
Building upon the progress we have made, we are now ready to enter a new era of
environmental policy—an era that requires a new philosophy of public and private stewardship
and accountability. In the years ahead, EPA will work to advance our nation's environmental
protection goals by enhancing cooperation among all stakeholders. We are committed to forging
stronger partnerships among citizens, government, and business that are built on trust,
cooperation, and shared goals to achieve measurable results. We will work closely with our
federal, state, tribal, and community partners to profit from their expertise and unique experience
to provide the flexibility needed to develop innovative and workable solutions to environmental
problems. To meet and exceed our shared goals, we will place greater emphasis on market and
incentive-based solutions such as emissions trading. We will base our policies and decisions on
sound science and meaningful peer review. Finally, we will work to promote compliance with
environmental standards and to fulfill our responsibility to the American people for enforcing
environmental laws and regulations.
Internet Address (URL)» http://www.epa.gov
Recycled/Recyclable • Printed with Vegetable Oil Based Inks on Recycled Paper (Minimum 25% Postconsumer)
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The information provided in this report will help us assess the progress we have made
thus far, determine our priorities and goals for the coming years, and ensure sound planning and
budgeting decisions to address the challenges that lie ahead. We look forward to working with
all Americans—citizens, government, business, the scientific community—in a commitment to
achieving a safe and healthy environment for ourselves, our children, and the generations to
come.
Sincerely yours,
Christine Todd Whitman
Enclosure
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EPA'S FY 2000 ANNUAL REPORT
TABLE OF CONTENTS
Mission Statement - Strategic Goals Inside Front Cover
Christine Todd Whitman's Letter to the President Feature
Table of Contents i
Preface iii
Three Decades of Environmental Accomplishments v
SECTION I - Overview and Analysis 1-1 -1-12
SECTION II - Performance Results
Goall: Clean Air II-l
Table of Results II-8
Goal 2: Clean and Safe Water 11-13
Table of Results 11-23
Goal 3: Safe Food 11-29
Table of Results 11-34
Goal 4: Preventing Pollution and Reducing Risk 11-37
Table of Results 11-44
Goal 5: Waste Management 11-49
Table of Results 11-56
Goal 6: Reduction of Global and Cross-Border Risks 11-63
Table of Results 11-69
Goal?: Right-to-Know 11-75
Table of Results 11-81
Goal 8: Sound Science 11-85
Table of Results 11-90
Goal 9: Credible Deterrent and Greater Compliance 11-93
Table of Results 11-98
Goal 10: Effective Management 11-103
Table of Results 11-109
SECTION III - Management Accomplishments and Challenges III-l -111-20
Integrity Act Report III-2
Major Management Challenges III-4
Report on Audits 111-10
Major Management Challenges Needing High-Level Agency Attention (OIG) 111-13
Key Management Challenges and Significant Agency Progress Towards Their Resolution (OIG) .... 111-19
EPA's FY 2000 Annual Report
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SECTION IV - FY 2000 Annual Financial Statements IV-1 - IV-72
Message from the Deputy Chief Financial Officer IV-3
Chief Financial Officer's Analysis IV-5
Principal Financial Statements IV-11
OIG's Report on EPA's FY 2000 Financial Statements IV-61
Appendix
EPA Organization Chart Appendix A
List of Acronyms Appendix B
Public Access to EPA's Programs via http://www.epa.gov Inside Back Cover
Photo Acknowledgments Back Cover
EPA's FY 2000 Annual Report
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PREFACE
The U.S. Environmental Protection Agency (EPA) has prepared the following report to present
a comprehensive picture of the Agency's performance during fiscal year (FY) 2000. Unlike EPAs
Fiscal Year 1999 Annual Performance Report, which was designed specifically to meet the requirements
of the Government Performance and Results Act (GPRA), the Fiscal Year 2000 Annual Report
addresses reporting requirements under GPRA as well as under several other management statutes—
the Federal Managers Financial Integrity Act, the Inspector General Act Amendments, the
Government Management Reform Act, and the Chief Financial Officers Act—as allowed by the
Reports Consolidation Act of 2000. Therefore, this consolidated annual report not only represents
a step toward the government-wide goal of streamlining management reporting but also allows
the Agency to present to Congress and the American public a fuller, more comprehensive picture
of its FY 2000 progress and accomplishments, both programmatic and financial.
Taken as a whole, the sections that follow summarize the progress EPA and its federal, state,
tribal, and local government partners have made over the past year toward ensuring a clean, healthy
environment for all Americans and explain how the Agency has used taxpayers' dollars effectively
and responsibly to do so. Section I provides a general overview of EPAs performance during
FY 2000, in terms of both the Agency's environmental and human health protection initiatives
and its management and financial activities. This "Overview and Analysis" highlights selected
accomplishments, summarizes the insights EPA managers have gained from their review of FY 2000
performance, and discusses how the lessons the Agency has learned from its experience in FY 2000
might be applied to improve performance in FY 2001 and beyond.
Section II, "GPRA Performance Results," reviews the results EPA and its partners have
achieved under the Agency's FY 2000 annual performance goals. It also provides some additional
FY 1999 performance data to supplement the information contained in the FiscalYear 1999'Annual
Performance Report. This section describes EPAs accomplishments and successes, and it explores
those areas in which the Agency was unable to achieve the goals it had set for the year. EPA will use
these performance measurement results to ensure that its environmental protection programs
work as intended and to make adjustments and corrections to improve future performance.
The third and fourth sections of the report, "Management Accomplishments and Challenges"
and "FY 2000 Annual Financial Statements," focus on how EPA manages its programs and activities
and applies its resources to achieve environmental results. Section III discusses management integrity
issues and management challenges and describes the results of the Agency's audit follow-up activities.
Finally, Section IV includes EPAs FY 2000 annual financial statements, along with a message and
analysis from EPA's Deputy Chief Financial Officer, supplemental information, and the Office of
Inspector General Report.
EPA's FY 2000 Annual Report
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THREE DECADES OF ENVIRONMENTAL PROGRESS
1970
• Twenty million people celebrate the first Earth Day.
• President Richard Nixon creates EPA with a mission to protect the environment and human
health. The Agency is formed from parts of the Department of the Interior; the Department of
Health, Education, and Welfare; the Department of Agriculture; the Atomic Energy Commission;
the Federal Radiation Council; and the Council on Environmental Quality.
• Congress amends the Clean Air Act to set national air quality, auto emission, and anti-pollution
standards.
1971
• Congress restricts use of lead-based paint in residences and on cribs and toys. (Lead-Based
Paint Poisoning Prevention Act)
1972
• EPA bans dichlorodiphenyltrichloroethane (DDT), a cancer-causing pesticide.
• The United States and Canada agree to clean up the Great Lakes, which contain 95 percent of
America's fresh water and as of 2000 supply drinking water for 25 million people.
• EPA embarks on a major national commitment to build an advanced network of sewage
treatment facilities to limit raw sewage flowing into rivers, lakes, and streams. (Federal Water
Pollution Control Act)
• Congress requires more robust health and safety reviews of pesticides based on scientific
evaluations. (Under amendments to the Federal Insecticide, Fungicide and Rodenticide Act)
1973
• EPA begins phasing out lead in gasoline.
• EPA issues the first permit limiting a factory's polluted discharges into waterways. EPA now
regulates water pollution from 45,000 industrial facilities, preventing one billion pounds of toxics
from entering waterways each year. (Federal Water Pollution Control Act Amendments of
1972 regulating point source dischargers)
1974
• EPA is authorized to regulate the quality and safety of the public drinking water supply, including
requirements for physical and chemical treatment of drinking water. (Safe Drinking Water Act)
1975
• Congress establishes fuel economy standards and EPA sets tailpipe emission standards for cars.
1976
• President Gerald Ford signs the Toxic Substances Control Act which authorizes EPA to track
industrial chemicals produced or imported into the United States.
• EPA begins phaseout of cancer-causing polychlorinated biphenyl (PCB) production and use.
• Congress passes the Resource Conservation and Recovery Act, regulating hazardous waste
from its production to its disposal and providing incentives for recovery of valuable resources
from solid waste.
EPA's FY 2000 Annual Report
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1977
• President Jimmy Carter signs the Clean Air Act Amendments.
• Congress passes the Clean Water Act, the result of amendments to the Federal Water Pollution
Control Act of 1972 with a focus on toxic pollutants.
1978
• Residents discover that Love Canal, New York, is contaminated by buried leaking chemical
containers. The cleanup is completed through the Superfund Program in 1989, and the area is
proclaimed habitable.
• EPA demonstrates scrubber technology for removing air pollution from coal-fired power plants.
1979
• EPA bans two herbicides containing dioxins, chemical compounds that are by-products of certain
industrial activities that cause cancer and other adverse health effects.
1980
• Congress creates Superfund (through the Comprehensive Environmental Response,
Compensation, and Liability Act) to clean up abandoned hazardous waste sites.
1981
• EPA issues its first hazardous waste storage permit under the Resource Conservation and
Recovery Act.
1982
• Dioxin contamination forces the government to purchase homes in Times Beach, Missouri. The
federal government and the responsible polluters share the costs of cleanups. By 1997 dioxin-
contaminated soil and debris at Times Beach and 27 related sites in Eastern Missouri had been
safely excavated and incinerated.
• A PCB landfill protest in North Carolina begins the environmental justice movement.
1983
• Cleanup actions begin to rid the Chesapeake Bay of pollution stemming from sewage treatment
plants, urban runoff, and farm waste.
• EPA encourages homeowners to test for radon gas, which is a leading cause of lung cancer.
• EPA issues the first Superfund National Priorities List, containing 406 sites nationwide.
1984
• Amendments to the Resource Conservation and Recovery Act require EPA to issue regulations
for and to establish a program to control underground tanks containing petroleum, hazardous
wastes, and other designated substances. (The Federal Hazardous and Solid Waste
Amendments)
• EPA adopts the Indian Policy to explicitly address the role of tribes in environmental
management. As of 2000, five of EPAs statutes specifically allow for EPA authorization of tribal
programs or a substantial role for tribes.
1985
• Scientists report that a giant hole in the earth's ozone layer opens each spring over Antarctica.
• EPA joins an international convention in Vienna calling for worldwide cooperative efforts to
eliminate use of substances that deplete the ozone layer.
EPAs FY 2000 Annual Report
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1986
• Congress declares the public has a right to know when toxic chemicals are released into air, land,
and water with the Emergency Planning and Community Right to Know Act.
• President Ronald Reagan signs the Superfund Amendments and Reauthorization Act, thereby
increasing the size of the trust fund to $8.5 billion, stressing permanent remedies, and increasing
state involvement.
• Congress passes the Asbestos Hazard Emergency Response Act, and the Asbestos in Schools
Program, protecting workers, the public, and children from exposure to asbestos.
• President Reagan signs Safe Drinking Water Act Amendments.
1987
• The United States and 28 other nations sign the Montreal Protocol, pledging to phase out
production of chlorofluorocarbons (CFCs), a primary cause of stratospheric ozone depletion.
• EPA implements the National Estuary Program, bringing together federal, state, and local agencies
to restore and protect estuaries serving as habitats and nursery grounds for two-thirds of the
nation's commercial fish and shellfish.
1988
• Congress bans ocean dumping of sewage sludge and industrial waste. (Ocean Dumping Ban Act)
• The Gulf of Mexico Program is established as a community-based, citizen-led program for the
Gulf region.
• Congress accelerates the reregistration process for previously registered pesticides and authorizes
the collection of fees to support reregistration activities. (Under amendments to the Federal
Insecticide, Fungicide and Rodenticide Act)
1989
• The Exxon Valde^ spills 11 million gallons of crude oil in Alaska's Prince William Sound. Exxon is
fined $1 billion, the largest criminal environmental damage settlement in history.
• EPA makes publicly available the first annual community right-to-know information on the
location and nature of toxic chemical releases in communities around the country, through the new
Toxics Release Inventory Program.
1990
• President George Bush signs the Clean Air Act Amendments, which contain innovative
approaches to pollution control and the promise of a renewed national commitment to
environmental protection.
• Reducing Risk, a landmark report from EPA's Science Advisory Board, calls for the setting of
national environmental priorities and greater use of science in decision-making on environmental
regulation.
• President George Bush signs the Pollution Prevention Act, emphasizing the importance of
preventing—not just correcting—environmental damage.
1991
• Under EPA's coordination, all federal agencies begin using recyclable and recycled content products
whenever possible.
• EPA launches Green Lights®, a voluntary program to encourage corporations, government
agencies, and other institutions to install energy-efficient lighting.
^
EPA's FY 2000 Annual Report
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1992
• EPA signs partnership agreements with eight leading computer manufacturers to promote energy-
efficient personal computers and prevent air pollution associated with power generation through
the Energy Star Program.
• Congress passes the Indian Environmental General Assistance Program Act. This legislation
allows EPA to assist tribes in planning, developing, or establishing environmental protection
programs through the administration of grants.
• EPA establishes a network of Environmental Finance Centers through cooperative agreements
with universities. The Environmental Finance Center Network now consists of nine centers that
assist customers in 40 states on such issues as rate setting, capacity development, brownfields
redevelopment, affordability strategies, asset management, and capital budgeting.
1993
• EPA reports secondhand smoke contaminates indoor air, posing serious health risks to
nonsmokers.
• EPA announces the Common Sense Initiative, an effort to shift environmental regulation to a
sector-based approach.
1994
• EPA launches its Brownfields Program to facilitate the cleanup of abandoned, contaminated sites
for productive use.
• The Tribal Caucus of the Tribal Operations Committee is established to improve communication
and build stronger partnerships with the Agency.
1995
• EPA launches an incentive-based acid rain program to reduce sulfur dioxide emissions. Within
2 years, researchers report unprecedented reductions in acid rain.
• The National Environmental Performance Partnership System (NEPPS) gives states, and EPA a
more flexible process for setting priorities, clarifying responsibilities, and making the most effective
use of taxpayer dollars.
• Project XL (eXcellence and Leadership) is introduced. Under this initiative, companies, facilities,
states, and localities develop innovative ways to achieve results that go beyond those required by
environmental regulations.
1996
• Congress enacts the amendments to the Safe Drinking Water Act. The amendments emphasize
sound science and risk-based standard setting, small water supply system flexibility and technical
assistance, community-empowered source water assessment and protection, public right-to-know,
and water system infrastructure assistance through a multibillion-dollar state revolving loan fund.
• The Grand Canyon Transport Visibility Commission—consisting of states, tribes, and federal
agencies (e.g., EPA and the Department of the Interior)—agree to improve visibility at the canyon,
working with public interest and business groups.
• Congress establishes a health-based standard for pesticides used on food crops, with added
protections for infants and children. (Food Quality Protection Act)
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1997
• An Executive Order is issued to protect children from environmental health risks, including
childhood asthma and lead poisoning. EPA provides tips to help parents protect their children
from environmental factors that can trigger asthma attacks.
• The United States and Canada sign an unprecedented agreement (the Binational Toxics Strategy)
to essentially eliminate toxic substances from the Great Lakes.
1998
• EPA requires states to reduce nitrogen oxide (NOJ emissions to reduce smog in the eastern
United States. EPA encourages states to use an emission trading program called "cap and trade,"
which allows industries greater flexibility in choosing pollution controls because they can buy
and sell market-based "credits" to reduce their NO emissions.
1999
2000
EPA issues new emissions standards for cars, sport utility vehicles (SUVs), minivans, and trucks,
requiring them to be 77 percent to 95 percent cleaner starting with model year 2004.
Marking the 30th anniversary of Earth Day, the Agency launches its new Internet home page at
http://www.epa.gov, making environmental information more accessible to the tens of
millions of visitors who visit the site each month. As part of the Earth Day-related launch, EPA
regional offices around the country release reports detailing environmental progress and public
health protection achieved over the past 30 years.
EPA's FY 2000 Annual Report
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FY2000
ANNUAL REPORT
OVERVIEW
AND ANALYSIS
SECTION I
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OVERVIEW AND ANALYSIS
INTRODUCTION
The U.S. Environmental Protection Agency (EPA)
leads the nation's efforts to safeguard the natural
environment and protect human health. The Agency is
committed to ensuring that the American public has
air that is safe to breathe, water that is clean and safe to
drink, food that is free from dangerous pesticide
residues, and communities that are protected from toxic
chemicals. To accomplish this mission EPA set ten
long-term strategic goals that identify the environmental
outcomes or results the Agency is working to attain
and the sound financial and management practices it
intends to employ. Each year, as required under the
Government Performance and Results Act (GPRA),
EPA prepares an annual plan that translates the Agency's
long-term goals and objectives into specific actions to
be conducted and resources to be allocated for the fiscal
year. EPA is accountable to the American public for
achieving these annual performance goals for the
protection of the environment and human health and
for using taxpayers' dollars efficiently and effectively
to do so.
A central purpose of GPRA is to gain better results
from government programs by requiring federal
agencies to define their performance goals and holding
them accountable for achieving these goals. Successfully
managing for results depends, in part, on strong links
between annual and longer-term planning, budgeting,
financial accounting, and performance results. EPA has
gone farther than most other federal agencies in
structuring its 1997 and 2000 revised Strategic Plans to
reflect the full scope of the Agency's resources and
workforce and in restructuring its budget to mirror its
strategic goals and objectives. Under this approach
EPA's strategic goals include both environmentally
oriented goals, such as Clean Air and Safe Water, and
functional goals, such as Sound Science and Effective
Management, that are critical to the achievement of
these environmental and human health outcomes.
In a further step to promote accountability, this
report includes the Agency's audited financial
statements, an independently reviewed accounting of
expenditures to demonstrate that EPA has sound
financial management practices in place. These financial
reports provide not only the assurance that EPA is
managing its resources soundly and efficiently, but also
information needed to ensure that EPA uses its
resources strategically and effectively to achieve
environmental goals.
Linking planning, budgeting, financial accounting,
and performance assessment helps EPA focus resource
allocation decisions on the environmental and human
health results to be achieved, provides longer-term
perspective and continuity for budgeting, and reinforces
the importance of financial stewardship and fiscal
integrity in achieving the Agency's mission. As a result
EPA can demonstrate to Congress and the public how
taxpayers' dollars are applied across the Agency's
strategic goals and how they support the achievement
of results.
EPA's Fiscal Year 2000 Annual Report serves several
purposes. First it describes the progress that EPA,
workingwith its federal, state, tribal, and local government
partners, made toward the annual performance goals
established in the Agency's Fiscal Year (FY) 2000
Annual Plan. Next it presents major management
accomplishments and challenges EPA faced during the
year and discusses Agency approaches and solutions.
Finally it summarizes EPA's financial activities and
achievements. As a whole the AnnualReportprovides an
opportunity for the Agency to review its performance,
highlight particularly noteworthy accomplishments,
examine causes for missed goals or targets, and, most
importantly, reflect on how EPA's experience in FY 2000
can shape efforts to achieve the Agency's strategic goals
and objectives in the coming years.
This "Overview and Analysis" (which addresses
requirements for a "Management's Discussion and
Analysis" of the audited financial statements
component of the Fiscal Year 2000 Annual Report)1 is
intended to provide a "big picture" view of EPA's
performance and fiscal accountability over the year. In
particular it describes the results achieved under the
Agency's goals and objectives, reviews EPA's financial
accomplishments, and summarizes actions EPA has
taken or plans to take to address management problems.
In addition it discusses significant factors that might
1 Because the Fiscal Year 2000 Annual Report consolidates a number of specific reports,
several components of the ''Management's Discussion and Analysis" are presented in
greater detail elsewhere in this report. In particular EPA's mission statement and long-
range goals appear at the front of the report, and an EPA organization chart is included
as Appendix A. For a discussion of the Agency's performance goals, objectives, and
results, see Section II. Management accomplishments and challenges are discussed in
Section III. Financial statements, along with a discussion of systems, controls, and legal
compliance, are presented in Section IV.
Overview and Analysis
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affect future Agency operations. This section is
supplemented and supported by the more
comprehensive, detailed information provided in the
remaining sections of the FiscalYear2000 AnnualReport.
Summary of Performance Results
During FY 2000 EPA and its partners made
significant contributions to the establishment of a
cleaner, healthier environment. As illustrated by the
performance highlights that follow, in FY 2000 at least
91 percent of the American public served by
community water systems received water meeting all
health-based drinking water standards in effect since
1994. More of the American public breathed cleaner
air, the result of significant reductions in harmful air
pollutants. Food was safer, due to reduced use of high-
risk pesticides and registration of reduced-risk pesticide
ingredients. Completed construction at Superfund sites
and cleanup and redevelopment of brownfields sites
resulted in cleaner, safer, and healthier communities.
In FY 2000 EPA met 80 percent (51) of the 64
annual performance goals (APGs) for which data are
provided in this report.2 EPA also made significant
progress toward the 13 APGs that were not achieved
in FY 2000, and for these APGs the Agency is on track
to meet its long-term goals and objectives.
During FY 2000 new performance data also
became available for several of the 13 FY 1999 APGs
for which there were delayed reporting cycles or targets
set beyond FY 1999. For example, an additional
1.3 million people are living in residences with healthier
indoor air. EPA also exceeded, by over 20 percent, its
goal of documenting that controls are in place at
hazardous waste facilities, helping to ensure that
communities are protected from harmful pollutants. In
summary EPA can now report achievement of
81 percent (50) of the 62 APGs for which the Agency
has FY 1999 performance data. Delays in reporting
cycles and targets set beyond FY 1999 continue to affect
seven FY 1999 APGs.
Tables presenting EPAs detailed FY 2000 APG
results are included in Section II at the end of each
goal chapter. EPA continues to improve its performance
2 EPA committed to a total of 73 APGs in its FY 2000 Annual Plan. Data for eight of
these APGs will not be available until FY 2001 and beyond, and one APG has a target
year that falls beyond FY 2000.
measurement capabilities and will modify some APGs
in FY 2001 and FY 2002 to reflect more outcome-
oriented measures and better performance data.
Highlights of FY 2000 Performance
EPAs FY 2000 accomplishments reflect a variety of
activities and initiatives. They represent progress made
toward achieving the Agency's strategic goals;
accomplishments that cut across individual goals, programs,
or media; and achievements in financial management.
Accomplishments Under Strategic Goals
• EPA issued a final rule for passenger vehicles
(including sport utility vehicles) that will significantly
reduce emissions of nitrogen oxides (NOx), a
primary contributor to urban smog, by nearly
3 million tons per year by 2030. (Goal 1)
• EPA issued three final Maximum Achievable Control
Technology (MACT) standards and proposed eight
new standards that, when fully implemented, will
reduce hazardous air emissions by an estimated
62,000 tons each year. Combined, all the MACT
standards issued to date will reduce emissions by
more than 1.5 million tons each year. (Goal 1)
• Phase II of the Acid Rain Program, which began
in 2000, now requires reductions in sulfur dioxide
(SO^ emissions from more than 2,500 electric utility
units (gas-fired, oil-fired, and coal-fired) and
reductions in year-round NO emissions from
•* X
approximately 750 coal-fired units. (Goal 1)
• Ninety-one percent of the population served by
community drinking water systems received
drinking water meeting all health-based standards
that were in effect as of 1994, up from 83 percent
since that time. (Goal 2)
• For the first time approximately 253 million Americans
have access to annual consumer confidence reports
on the quality and safety of their drinking water, as a
result of the new Consumer Confidence Report rule.
More than 100 million Americans are able to read
their water quality reports online. (Goal 2)
• Implementation of Clean Water Action Plan
activities resulted in the environmental
improvement projects now under way in 324 high-
priority watersheds. (Goal 2)
• Another two million people received the benefits
of secondary treatment of wastewater in 2000,
1-2
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bringing the total number of people served by
secondary wastewater treatment facilities to 181
million and achieving secondary treatment or better
for nearly all of the population served by publicly
owned treatment works. (Goal 2)
EPA registered 16 reduced-risk pesticide active
ingredients and reviewed 1,838 new chemical pre-
manufacture notices for hazards to human health
and the environment. (Goals 3 and 4)
EPA reassessed 121 pesticide tolerances to ensure
they met the Food Quality Protection Act-
mandated standard of a "reasonable certainty of
no harm." (Goal 3)
EPA implemented various risk-reduction steps such
as restricting use, lowering or revoking tolerance
levels, and phasing out or canceling certain uses
for the pesticides azinphos methyl, methyl
parathion, and chlorpyrifos. (Goal 3)
Four hundred sixty-nine companies have committed
to make screening-level hazard data on approximately
2,155 chemicals available by 2005. (Goal 4)
Since the Superfund program began, EPA has
completed construction at 757 private and federally
owned sites to protect human health and the
environment. During FY 2000 the Agency
exceeded its target for Superfund constructions
completed. (Goal 5)
Through the third quarter of FY 2000 EPAs
Brownfields Program provided grants to
communities and states, leveraging $2.8 billion in
cleanup and redevelopment funds, generating an
estimated 7,400 jobs benefitting disadvantaged
communities, and funding more than 2,000 site
assessments of potentially contaminated sites. The
Brownfields Program was named one of the ten
winners of the "Innovations in Government Awards,
2000" granted by Harvard University's John F
Kennedy School of Government, the Ford
Foundation, and the Council for Excellence in
Government. (Goal 5)
Availability of water and sewer services in the U.S.-
Mexican border area has significantly improved.
Thirty-six projects certified by the Border
Environment Cooperation Commission are under
construction or have been completed. (Goal 6)
Working in partnership with businesses, schools,
state and local governments, and other
organizations, EPA is on track to meet its FY 2000
target for reducing greenhouse gas emissions from
projected levels by more than 58 million metric tons
of carbon equivalent. (Goal 6)
• Reductions in domestic use of ozone-depleting
hydrochlorofluorocarbons and domestic
production and import of newly produced
chlorofluorocarbons and halons are on track to
meet targets set by the Clean Air Act Amendments
for FY 2000. (Goal 6)
• EPA demonstrated a mid-size-chassis research vehicle
that achieved 72 miles per gallon (gasoline equivalent)
using a state-of-the-art diesel engine and a patented,
EPA-invented hybrid drivetrain. (Goal 8)
• The Mid-Atlantic Integrated Assessment
successfully demonstrated the monitoring designs
and indicators developed from EPAs Ecological
Research Strategy, resulting in the first statistically
valid assessments of regional environmental
conditions. (Goal 8)
• Enforcement actions brought by EPA reduced or
prevented the emission and discharge of
334 million pounds of pollutants and required
treatment of an additional 1.3 billion pounds of
contaminated soils, sediments, or water; 61 percent
of these enforcement actions required facilities to
improve environmental management practices,
which will reduce the likelihood of future violations.
EPAs enforcement augments the efforts of states
and tribes. Nationally states conduct the large
majority of all federally related inspections and
formal enforcement actions. (Goal 9)
• During FY 2000 an additional 430 companies made
use of EPAs audit and self-disclosure policies,
disclosing and correcting violations at 2,200
facilities. (Goal 9)
• EPA drafted its first strategic plan for investing in
human resources, "Strategy for Human Capital,"
to focus management attention on human resource
issues facing the Agency. (Goal 10)
Accomplishments Across Goals and Programs
• The Office of Children's Health Protection
developed the Children's Health Valuation Handbook
to assist Agency economists in addressing children's
health risks when they conduct cost-benefit analyses
of regulatory options.
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• EPA joined the Department of Housing and Urban
Development, the Department of Health and
Human Services, and other federal departments and
agencies in an interagency strategy to eliminate
childhood lead poisoning as a major public health
problem by 2010.
• Two hundred twenty-eight facilities became charter
members of the new National Environmental
Performance Track Program, created to motivate
and reward performance that exceeds federal
environmental requirements.
• EPA expanded regulatory flexibility under Project
XL (excellence and Leadership) to identify areas
for improving federal environmental programs and
policies and approved an additional 35 proposals,
bringing the total number of projects being
implemented to 50.
• To advance "smart growth" in communities, EPA
provided funding, research, and technical assistance,
as well as support for a national information sharing
network.
• EPA created new web sites to expand public access
to information about environmental permitting
reforms and participation in EPA's voluntary
partnership programs.
• In spring 2000 the Interagency Working Group on
Environmental Justice released the Integrated Federal
Interagency Environmental Justice Action Agenda to
ensure that coordinated federal initiatives and
resources are targeted to environmentally and
economically distressed communities.
• EPA's National Environmental Justice Advisory
Council published Environmental Justice in the
Permitting Process. The first in a series, this report
identifies essential factors to be considered in siting
new pollution-generating facilities to ensure
protection of all citizens.
FY 2000 Performance Issues
Despite their best efforts, EPA and its partners were
not able to meet all planned targets for FY 2000 APGs.
In most cases the Agency does not expect the shortfall
in meeting these APGs to compromise progress toward
achieving the long-range goals and objectives.
For example, EPA changed the focus of
underground storage tank compliance from simply
having the required equipment to operating that
equipment properly. As a result, states' reporting of
compliance rates based on operational compliance led
to a lower overall compliance figure but a better measure
of environmental progress. In another case an extension
of the public comment period delayed completion of
the Exposure Factors Handbook, designed to provide
guidance for assessing risks to children exposed to
environmental contaminants, but permitted increased
public involvement. Similarly, although EPA fell well
short of its target for reassessing pesticide tolerances,
the Agency made progress in developing a scientific
approach to assessing cumulative risk which involved
considerable stakeholder input and scientific peer
review. Once implemented this approach will expedite
Agency efforts to reassess pesticide tolerances.
In all EPA and its partners did not meet 13 of the
73 FY 2000 APGs. These APGs are associated with
seven of EPA's ten strategic goals. The results tables
included in Section II provide more complete
information and show that the Agency made significant
progress toward these goals.
Strengthening Program Integrity Through
Improved Management
Over the past decade EPA made substantial
progress toward resolving programmatic and
administrative issues that had the potential to affect the
Agency's ability to achieve its mission. One of the most
significant accomplishments is the progress the Agency
has made in addressing General Accounting Office
(GAO) concerns regarding the Superfund program. In
FY 1990 GAO designated Superfund a high-risk area,
citing recurring management problems that heightened
the risk of fraud, waste, abuse, and mismanagement.
After 10 years, in its January 2001 report, High-Risk
Series: An Update, GAO removed the Superfund
program from the high-risk list, indicating that EPA
had made significant progress in addressing this long-
standing management challenge and demonstrated a
continuing commitment to these efforts.
Over the next several years EPA faces a number of
management challenges, including two that the GAO
January 2001 high-risk update identified as government-
wide high-risk areas. The first issue, strategic human
capital management, is characterized by what GAO
regards as inadequate efforts to meet current and
emerging needs in the areas of human capital planning,
recruitment, and development. The second issue,
information security, was first designated a government-
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wide high risk area in FY 1997. Despite federal agencies'
ongoing efforts to correct security deficiencies, GAO
believes that critical government operations and assets
continue to be vulnerable.
In its January 2001 report, Major Management
Challenges and Program Risks: Environmental Protection
Agency, GAO identified two additional management
challenges specific to EPA: (1) improving
environmental and performance information to set
priorities and measure results and (2) strengthening
EPAs working relationships with the states. EPAs Office
of Inspector General (OIG) shares GAO concerns
regarding both the high-risk issues and the management
challenges. Section II, "GPRA Performance Results,"
specifically goal chapters 7 and 10, and Section III,
"Management Accomplishments and Challenges,"
present a further discussion of these issues.
EPAs OIG provides Congress with an annual list
of EPAs key management challenges based on OIG
audits and also identifies candidate weaknesses for
consideration during the Agency's annual assessment of
management controls under the Federal Managers
Financial Integrity Act. Section III includes OIG's
statement on the Agency's most serious management and
performance challenges and its assessment of Agency
progress. OIG identified several additional areas it
believes EPA should address in a timely manner to ensure
the Agency can accomplish its environmental mission
and achieve effective management. These issues include
accountability, managerial cost accounting, quality of
laboratory data, EPAs use of assistance agreements to
accomplish its mission, the backlog of National Pollutant
Discharge Elimination System Permits, and results-based
information technology project management. Goal
chapters 2,7, and 10 in Section II and Section III provide
further discussion of these issues.
Recognizing that one of the most critical challenges
facing government today is preserving the public's trust
in the integrity of government programs, EPA places a
high priority on addressing GAO and OIG issues as well
as issues identified by the Office of Management and
Budget (OMB) and through internal Agency reviews and
assessments. Section III contains a full discussion of the
Agency's material weaknesses and major management
challenges and provides a summary of corrective action
strategies under way to resolve the issues. In addition to
goal chapters 2,7, and 10 identified above, goal chapters
5, 6, and 9 discuss Agency efforts to address major
management challenges that may affect the achievement
of EPAs goals and objectives.
Strengthening State and Tribal Partnerships
Many of the advances in environmental protection
made over the past year, highlighted in the list of
accomplishments above and reflected in the chapters
that follow, would not have been possible without the
participation and support of the states. EPA and the
states consulted extensively throughout the
development of EPAs revised Strategic Plan, which was
issued in September 2000, and the Agency worked
closely with members of the Environmental Council
of the States (EGOS) to facilitate state input on the
goals, objectives, and text of the Plan.
During FY 2000 EPA and the states continued to
strengthen their partnership to protect human health and
the environment through the National Environmental
Performance Partnership System (NEPPS). Under
NEPPS EPA and states work together closely on all
aspects of planning, priority-setting, and results-based
management, including performance measurement,
through the use of core performance measures (CPMs)
to evaluate progress toward mutual program goals. CPMs
are a limited number of program performance measures
developed by EPA and EGOS to present a meaningful
picture of each state's environmental quality and program
effectiveness. CPMs are closely aligned with EPAs GPRA
measures and similarly contain a mix of environmental
indicator, outcome, and output measures. (Those CPMs
associated with the Agency's APGs are noted in the tables
for goal chapters 1,2, and 5 in Section II of this report.)
Thirty-four states and their EPA regional offices
documented their partnership efforts with Performance
Partnership Agreements.
In March 2000 EPA formally reaffirmed its
commitment to the NEPPS principles of flexibility,
innovation, and partnership. To demonstrate this
commitment EPA designated leaders from each region
and national program office to provide a broad, Agency-
wide perspective on how EPA and states can improve
all aspects of NEPPS. EPA also finalized new grant
regulations that lay the groundwork for negotiation of
Performance Partnership Grants (PPGs). PPGs enable
states as well as tribes to use grant funds flexibly to
meet their specific environmental needs.
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EPA has been working closely with State
Environmental Commissioners to determine how EPA
might better incorporate state priorities into EPAs
planning and budgeting work and improve the Agency's
understanding of the particular environmental challenges
facing each state. In spring 2000 EPA Regional
Administrators were asked to discuss state priorities with
the Commissioners so that this information could inform
the Agency's planning and budgeting work. EPA is now
working with EGOS to develop an ongoing process to
facilitate the receipt and consideration of state input into
national priority-setting processes.
Over the past 10 years GAO has worked with EPA
and the states to identify areas of concern, make
recommendations, and track Agency progress in
resolving the long-standing challenges associated with
the EPA-state relationship. GAO concerns have
centered around some fundamental disagreements
between EPA and the states over respective roles,
priorities among state environmental programs, and the
appropriate degree of federal oversight. GAO believes
EPA has taken positive steps in some areas that have
improved cooperation with the states, resulting in more
effective and efficient environmental protection.
EPA has also worked closely with tribal
governments to identify priorities for Indian country,
to improve management of environmental issues, and
to develop tribal capacity to implement environmental
programs. EPA's Indian Program involves significant
cross-Agency and multimedia activities designed to
ensure that our trust responsibility to federally
recognized tribes is carried out. The Agency is
committed to assuring protection of the environment
and human health in Indian country in a manner that is
consistent with the government-to-government
relationship and that conserves cultural use of natural
resources. The new PPG regulations mentioned above
will expand the benefits of NEPPS, enabling tribes as
well as states to use grant funds flexibly to meet their
specific environmental needs. During FY 2000 EPA and
tribes also made major advances toward strengthening
their government-to-government relationship. For
example EPA sponsored the 5th National Tribal Annual
Conference on Environmental Management in Lincoln
City, Oregon. The meeting brought tribes from across
the nation together with a number of federal agencies
to address a wide range of environmental issues. The
growing partnership between tribes and EPA was
further demonstrated this year through the Agency's
enhanced and extensive consultation with tribes on
water quality standards in Indian country.
EPA has also worked with tribes to address a
number of cross-media concerns. For example the
Agency initiated training for tribal enforcement officials
interested in obtaining or enhancing their federal
inspection credentials. The development of accredited
staff expands the Agency's ability to address priority
issues. In addition FY 2000 saw the creation of the first
Tribal Science Council as part of EPA's Science
Advisory Board. This new collaborative body will enable
tribes and EPA more effectively to address long-
standing issues in Indian country, such as the need to
further the science surrounding subsistence fishing and
other exposure pathways.
Improving Results-Based Management
In FY 2000 EPA completed its first full planning
and accountability cycle under GPRA with the March
2000 submission of its first Annual Performance
Report, presenting the results of EPA's FY 1999
performance to Congress and the public. In a series of
ten goal meetings, senior Agency managers met with
the Deputy Administrator to discuss the FY 1999 results
and the lessons they prompted, mid-year performance
toward FY 2000 APGs, progress toward long-term
strategic goals, and work under way to improve
performance measurement. In addition senior managers
discussed the broader lessons learned from the Agency's
experience with GPRA implementation to date and
improvements to be made for the future. The discussion
revealed that GPRA has had a positive impact on the
culture of the Agency, specifically in helping managers
to define success and the results of EPA's work. The
focus on priority-setting and results has helped the
Agency relate resources to accomplishments, find new
ways to meet goals despite resource reductions, and
address important data issues and the Agency's ability
to measure results.
To further improvements in EPA's performance
measurement, the Agency formed a performance
measurement improvement team that conducted
workshops with program offices to promote
development of more outcome-oriented goals and
measures. EPA applied many of the lessons learned
from this effort in developing the framework for its
revised Strategic Plan, which was issued in September
2000. The Agency is committed to developing APGs
and performance measures that focus on outcomes;
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linking performance with resources more closely; using
information generated through planning, budgeting,
analysis, and accountability activities to inform
management decisions; and communicating the results
of its efforts clearly to Congress and the public.
Developing Program Evaluation Capabilities
While performance measurement generally
describes what a program achieved—outputs or
outcomes—during a given period, program evaluation
can help explain these results. Program evaluation
identifies areas needing improvement, better strategies
for achieving established goals, and ways to improve
data collection or measurement of program results.
Performance measurement alone cannot always answer
these questions.
To further improve its ability to assess progress,
EPA has taken steps over the past year to increase the
number and improve the quality of program evaluation
activities within the Agency. EPAs OIG has reorganized
and created an Office of Program Evaluation to
conduct evaluations of EPA's programs. During
FY 2000 EPAs Program Evaluation Network—
comprising EPA managers and staff with expertise in
and responsibilities for program evaluation—continued
to meet and to share information. In spring 2000 EPA
presented two 1-day training sessions focusing on the
fundamentals of program evaluation. The
77 headquarters and regional staff who participated in
the training will continue to help build EPAs ability to
conduct evaluations, improving the Agency's ability to
assess progress toward its environmental goals. In
FY 2000 the Agency also solicited program and regional
office proposals for limited central funding of program
evaluations. Four studies were selected for funding,
including the Assessment of the Water Quality
Standards process conducted under Goal 2.
EPA's FY 2000 performance data can be
characterized as acceptably reliable and complete. In
terms of data reliability, a significant number of APGs
are Agency counts of administrative or programmatic
outputs and are not subject to wide margins of error. In
cases where counts involve major EPA data systems,
however, the data are subject to Agency-wide data quality
standards and periodically audited for accuracy and
completeness. The Resource Conservation and Recovery
Act Information System (RCRAInfo), for example,
adjusted the baseline number of facilities in the database
after receiving new data from authorized states, thereby
improving the reliability of the reported performance
data. Performance data for several APGs are obtained
by voluntary reporting, modeling, or extrapolating. The
degree to which the quality of the data is affected by
these data gathering techniques has not been quantified
in most cases, although the reliability of the data can be
estimated at least qualitatively. States and other external
sources provide much of the data EPA uses to develop
its performance data. For the more significant EPA
databases, protocols are in place to check the data for
errors. To a large degree, however, EPA must rely on the
quality assurance/quality controls in place at the primary
data source to ensure data accuracy.
Three EPA databases have been identified as
Agency management weaknesses in FY 2000. These are
the Permit Compliance System, RCRAInfo, and the Safe
Drinking Water Information System. The Agency is
implementing specific corrective action strategies for
each of these databases and has established milestones
for data quality improvements. As a result the quality
of the performance data from these databases can be
expected to improve significantly in the future.
EPA has taken several important steps to improve
its data quality management. The Agency recently
reorganized its information management activities into
one office. It has adopted six new data standards to
promote consistency in reporting and data integration.
In addition the Agency is implementing a Central Data
Exchange—a single portal for states and the regulated
community reporting environmental information to
EPA. These steps will help to improve the efficiency
and reliability of EPA's data as well as detect and correct
errors. In addition, with the goal of significantly
improving data quality, EPA is allowing greater public
access to Agency data, including enforcement and
compliance information.
All of the Agency's 73 FY 2000 APGs are
accounted for in the tables of results presented in each
goal chapter in Section II. (These 73 APGs were first
reported in the FY 2000 Final Annual Plan. They have
since been revised to reflect final budget decisions and
FY 1999 performance and presented in EPA's FY 2001
budget justification to Congress.) In the case of APGs
for which performance data are not yet available, the
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tables indicate when the Agency will have the data
necessary to report performance.
FINANCIAL ANALYSIS
EPA's Financial Statements
EPA's financial statements reflect the range of the
Agency's financial activities over the course of a fiscal
year and present a snapshot of its financial position at
the end of that fiscal year. They are the culmination of
many thousands of transactions and financial records,
and on their accuracy and reliability EPA bases its
assurance to the public that the Agency manages
resources efficiently, effectively, and productively. EPA's
OIG performs an annual audit of the full set of financial
statements to determine whether the picture they
present is a fair and accurate one, based on generally
accepted accounting principles. When an agency's
financial statements receive an unqualified or "clean"
opinion from the auditors, this signals to the public the
auditors' reasonable assurance of the agency's fiscal
health at year's end. When auditors are unable to make
a full assessment of financial statements because there
are elements they cannot evaluate, they will render a
qualified audit opinion. In such a case, auditors report
that the statements represent an agency's financial
circumstances fairly with the exception of individual
elements that cannot be assessed. When auditors are
unable to render an opinion on a set of financial
statements because they are unable to make any kind
of evaluation, they typically issue a disclaimer.
The auditors' annual check on financial management
is fundamental to good management, and EPA
recognizes it as an important indicator of the Agency's
ability to account for taxpayer dollars and manage for
results. EPA also values the resource information
summarized in its financial statements as a basis for cost-
benefit and trends analyses concerning the environmental
results envisioned in EPA's strategic goals. For these
reasons, no annual report of EPA's accomplishments
would be complete without the inclusion of audited
financial statements or some equivalent.
In response to process control concerns raised in
the audit of EPA's FY 1999 financial statements, the
Office of the Chief Financial Officer has worked closely
with OIG to strengthen Agency financial management
processes and financial statement preparation. EPA has
analyzed in greater detail than ever before every element
of its financial statements. EPA also framed new policies
and instituted new procedures, improved quality control
across the entire range of the financial statements, made
selective use of automation in new areas, adopted new
methodologies, and strengthened information security.
EPA is pleased to report that this collaboration has
enabled the Agency to achieve a "clean" audit opinion
on its FY 2000 financial statements.
Budget Authority for FY 1997-FY 2000
Budget authority is the authority provided by law
to incur financial obligations, such as awarding contracts
or grants. For FY 2000 EPA received a total of
$8.3 billion in budget authority. The "Budget Authority
by Fiscal Year" chart provides a comparison of EPA's
total budget authority for FY 1997 through FY 2000.
OMB issues EPA's budget authority in many
accounts, consistent with appropriation law. The
"Budget Authority" chart depicts the Superfund and
State and Tribal Assistance Grants (STAG) accounts
and characterizes other major accounts—such as the
Environmental Programs and Management account
and the Science and Technology account—under "All
Budget Authority by Fiscal Year
18.3
1997
1998
1999
2000
Other." The Superfund category is a net amount in
that it reflects transfers of Superfund authority to other
accounts as directed by Congress.
FY 2000 Obligations
An obligation is a legal responsibility on the part
of the government to make a disbursement at a later
date. For example an obligation is recognized when the
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EPA's FY 2000 Annual Report
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Appropriation
2000 OBLIGATIONS BY GO
(Dollars in Millions)
Goal!
Goal 2
GoalS
Goal 4
GoalS
GoalG
Goal 7
GoalS
GoalS
Goal 10
Reim.
Other
Total
Approp.
STAG
203
3098
94
64
52
71
3582
All Other
340
526
75
177
296
178
139
261
285
381
270
2928
Superfund
1563
15
57
123
700
2464
TOTAL
543
3624
75
271
1923
230
142
264
371
438
393
700
8974
Approp. = Appropriation
Reim. = Reimbursable
STAG = State and Tribal Assistance Grants
Other = Payment from general revenues to the Hazardous Substance Superfund
government awards a contract. The actual costs
associated with the contract are recognized when the
contractor delivers the requested goods or services.
The "FY 2000 Obligations by Goal" table presents
data for each goal by appropriation. Obligations in this
table are not the same as "costs," which are reported in
Section IV under the Statement of Net Costs.
Obligation totals in this table also differ from Agency
financial statements because the obligation totals include
EPA's Superfund transfer to other federal agencies. Each
of the goal chapters that follow in Section II presents
the total obligations for that goal in comparison to
Agency's total obligations for FY 2000.
FY 2000 Expenses
Expenses are EPA's costs for services rendered or
activities performed. In FY 2000 EPA spent $7.9 billion
using current and prior year appropriation authority.
Of this amount 75.8 percent was spent on contracts,
FY 2000 EPA Expenses
All Other
8.7%
inter-agency agreements (TAGs), and grants. FY 2000
expenses are also displayed by strategic goal in the
Statement of Net Costs in Section IV
Superfund Financial Trends
The Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), enacted
in 1980, formally established the Superfund Program
and the Hazardous Substance Response Trust Fund,
now known as the Hazardous Substance Superfund
(Trust Fund). Although CERCLA has not been
FY 2000 Superfund Trust Fund
Revenue Sources
Other
0.4%
Fines & Penalties
0.1%
reauthorized since 1995, the Superfund Program
continues to operate each year by way of annual
Congressional appropriations from general fund
transfer.
Overview and Analysis
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The Trust Fund, administered by the Bureau of
Public Debt, U.S. Department of the Treasury
(Treasury), is the primary financing source for the
Superfund Program. For FY 2000 Treasury reports that
the Trust Fund received approximately $1.2 billion in
receipts from the revenue sources shown in the
accompanying chart.
The Superfund Program's authority to tax expired
on December 31,1995. Consequently the major revenue
sources for the Trust Fund are cost recoveries; interest,
fines, and penalties; income from Trust Fund
investments; and general fund transfer. Due to
diminishing revenues EPA has increased its efforts to
conserve existing Trust Fund balances and replenish
the Trust Fund with all eligible revenues. To accomplish
these goals EPA has:
• Revised the indirect cost rate methodology for
Superfund cost recovery to reflect the full costs of
Superfund cleanup.
• Recovered $230.4 million during FY 2000 as a result
of accelerated efforts to pursue collection of cost
recovery settlements and judgments.
• Reemphasized its "enforcement first" philosophy
to compel Potentially Responsible Parties (PRPs)
to clean up contaminated sites. By having PRPs
perform cleanups, EPA can reduce related response
and legal enforcement costs, resulting in cost
savings to both taxpayers and the Trust Fund.
Cumulative Superfund Costs Recovered
FY 1995 - FY 2000
3000 |-
2500
1995 1996 1997 1998 1999 2000
• With direction from Treasury, diversified the Trust
Fund's investment portfolio and returned a higher
rate of interest to the Trust Fund.
FUTURE TRENDS
A number of current trends will have implications
for the future success of EPA's programs. Should
climate-change-driven weather extremes such as more
frequent hot, dry summers increase, attainment of air
quality standards might be more difficult despite the
full implementation of emission control plans. High
temperatures and bright sunlight, for example, could
increase the formation of ozone. Droughts and floods,
also more likely to increase with a warmer climate, could
significantly affect the success of the Agency's water
and waste programs. Floodwaters could disrupt
hazardous waste sites and spread animal and other
wastes. Drought conditions could preclude reliance on
dilution to improve water quality and thus threaten the
nation's water supply. EPA and its partners have
established some pollution control strategies predicated
on fairly typical temperature and precipitation regimes;
unfortunately, those control strategies might be less
likely to succeed in the face of increased climate and
weather extremes.
Population growth, along with the attendant
development of suburban and exurban areas, also has
implications for environmental protection programs.
Sprawl increases demands on transportation and can
result in more people relying more heavily on private
vehicles. Increases in vehicle miles traveled, coupled
with the trend toward larger vehicles such as sport utility
vehicles, can contribute to increased emissions of
conventional pollutants and greenhouse gases like
carbon dioxide and might affect EPA's air program.
Apart from adding to air quality concerns, population
growth also places increased pressure on the nation's
infrastructure for providing clean and safe water. This
concern is becoming especially apparent as the U.S.
population grows in the southern and southwestern
states, which have fewer water resources and often less
highly developed water and wastewater treatment
infrastructures than other states.
In conjunction with the growth of the overall
population, America's population is aging. This change
will inevitably lead to new and unexpected patterns of
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EPA's FY 2000 Annual Report
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consumption and, therefore, to new patterns of
pollution. For example, greater use of medications and
other biologically active substances might affect the
environment.
The current trend of general economic growth and
increased consumer demands will also affect the success
of EPA's programs across all media. If domestic
manufacturing and production rise, waste streams might
continue to change and require responses from EPA
solid and hazardous waste programs. In the absence of
cleaner processes and better controls, air and water
emissions would tend to increase in response to this
growth. Larger homes increase energy demands and
can lead to growth in greenhouse gas emissions.
Changes in producer and consumer behavior are also
likely to influence the Agency's ability to achieve its
objectives, for example, in the area of food safety.
Several technology changes might have significant
impacts, both positive and negative, on the
environment. Development and adoption of clean
technology, such as hydrogen fuel cells, could reduce
energy consumption and greenhouse gas emissions.
Biotechnology, including the development of genetically
modified organisms, might yield crops that can thrive
without the use of fertilizers and pesticides. However,
researchers continue to investigate the interaction of
genetic engineering and other technologies with
environmental factors. EPA's pesticide and industrial
chemical programs may need to respond to advances
in biotechnology.
The Internet and information technology are
transforming public sector processes and the ways that
agencies interact with their constituents and relate to
one another. Government agencies at all levels are using
technology to be more accessible, efficient, and
responsive to their constituents. Prompted by the
expectations of a citizenry that is growing accustomed
to conducting business online, businesses seeking to
reduce costs in a technology-driven marketplace, and
Congressional efforts to reduce reporting burden,
agencies are using the Internet and information
technology to streamline processes, improve services,
and integrate information. As e-commerce becomes
fully entrenched in the everyday lives of the public, EPA
will need to deliver customer services that will require
integration across multiple departments and levels of
government.
Clearly these and other social, economic, and
technological trends and developments will influence
the Agency's ability to achieve its goals and objectives.
EPA learned from its FY 1999 experience—
through both the work it accomplished and the
challenges it faced—and has made significant progress
during FY 2000 in applying the principles of results-
based management. The Agency advanced its efforts
to set quantifiable, attainable goals and targets; to
forecast external factors that might have an impact on
program planning; to measure performance results
more precisely; and to analyze more accurately the
relationships among costs, activities, and results.
In setting future goals and targets EPA will focus
on delivering environmental and human health
outcomes and developing meaningful performance
measures where possible. The Agency will strive to
develop APGs that reflect progress made toward
meeting long-term goals and that are more closely linked
to environmental outcomes. For example APGs
currently in place under the air pollution control
program for ozone, particulate matter, and other
pollutants enable EPA and states to measure actual
improvements in air quality, rather than progress in
program activities such as permits issued. EPA is making
similar progress in the area of compliance and
enforcement. For example during FY 2000 EPA
established a baseline to measure the average length of
time it takes for significant violators to return to
compliance or enter into enforceable plans and
agreements. Building on this effort, in FY 2001 the
Agency will be able to assess its progress in decreasing
the percentage of facilities that remain in significant
noncompliance after 2 years.
As part of its performance assessment
improvement effort, the Agency will continue to work
with states to improve the CPMs that have been
negotiated through NEPPS, both to realize
improvements in its ability to measure outcomes and
to maintain the close alignment of NEPPS and GPRA
performance measures. EPA and states are particularly
committed to increasing significantly the ratio of
environmental outcome to output CPMs.
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To measure environmental improvements and
assess progress accurately, EPA and its partners need
quality environmental information and the analytical
tools to understand it. The Agency is working to ensure
that it keeps pace with the rapid advances in information
technology and can meet the growing demand for
reliable environmental information. EPA is developing
an Information Plan that assesses the Agency's
environmental direction, establishes a framework for
identifying and addressing information needs, and
matches information and technology resources to those
needs. In addition the Plan will establish processes for
addressing data needs and identify potential data
collection efficiencies and opportunities to leverage
information resources. These initiatives will also support
EPAs efforts to improve its trend data, so that the
Agency may better assess progress toward long-term
goals and provide a context for assessing annual results.
Collaboration with the Agency's federal, state, and
tribal partners and with interested stakeholders will be
critical to the success of these efforts. EPA will continue
to depend on strong, effective partnerships to ensure
progress toward the Agency's goals for protection of
the environment and human health.
The chapters that follow in Section II present EPAs
FY 2000 progress toward each of the Agency's ten
long-term goals. Each chapter discusses the Agency's
accomplishments, research contributions, and program
evaluations, as well as the impact of FY 2000 results
on the FY 2001 Annual Plan. As appropriate, chapters
also discuss the Agency's progress in addressing
significant management problems. Tables provided at
the end of each chapter present information on the
APGs that support each long-term goal. The chapters
and tables together help to describe the results EPA
and its federal, state, tribal, and local agency partners
achieved during FY 2000 and to explain how these
results will shape the Agency's future planning and
performance.
1-12
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FY2000
ANNUAL REPORT
PERFORMANCE
RESULTS
SECTION II
-------
Goal 1 FY 2000 Obligations
S543M
GOAL 1: CLEAN AIR
The air in every American community will be safe and healthy to
breathe. In particular, children, the elderly, and people with
respiratory ailments will be protected from health risks of breathing
polluted air. Reducing air pollution will also protect the
environment, resulting in many benefits, such as restoring life in
damaged ecosystems and reducing health risks to those whose
Note: EPA FY2000 Obligations
were $8,974 million
subsistence depends directly on those ecosystems.
OVERVIEW
Exposure to air pollution at certain levels is
associated with numerous harmful effects to human
health, including premature death, respiratory problems,
heart and lung diseases, and cancer and other serious
health effects such as reproduction or birth defects.
Children may be at greater risk than adults because they
are more active outdoors and their lungs are still
developing. Senior citizens are also more sensitive to
air pollution because they often have heart or lung
diseases. EPA and its partners have made significant
progress in protecting the health of people of all ages
by dramatically reducing air pollution from various
sources.
Air pollution, such as acid rain, ground-level ozone,
and air toxics, can also significantly affect ecosystems.
CLEAN AIR EFFORTS IN INDIAN COUNTRY
EPA has built on its partnership with tribal
governments and has made achievements in many
areas, including providing resources to tribes to work
on air quality planning, management, and control.
More than 100 tribes now receive Clean Air Act
funding. Sixty-seven tribes are actively involved in
ambient monitoring, at least 30 are developing
emissions inventories, 27 are working with EPA on
major source permitting, 35 are conducting education
and outreach activities, and several are actively
participating in Regional Planning Organizations as
they work to address regional haze. Also, in FY 2000
the tribes, Northern Arizona University Institute for
Tribal Environmental Professionals, and EPA
launched a new Tribal Air Monitoring Support Center
in Las Vegas that will assist with building monitoring
capacity among tribes.
For example, EPA has estimated that ground-level
ozone reduces agricultural and commercial forest yields
by $500 million each year. Airborne release and
subsequent deposition of nitrogen oxide (NOx) is one
of the largest sources of nitrogen pollution in certain
water bodies, such as the Chesapeake Bay. Overly
abundant nitrogen can cause excessive growth of algae,
which in turn can harm fish and shellfish and reduce
the light available to aquatic vegetation and coral reefs.
FY 2000 PERFORMANCE
EPA devotes significant effort to meeting annual
targets that support the longer term health and
environmental outcomes and improvements that are
articulated in the Clear Air goal. To achieve the goal of
healthy clean air, EPA relies on the proactive
cooperation of federal, state, local and tribal
government agencies, industry, non-profit
organizations, and individuals. Success is far from
guaranteed even with the full participation of all
stakeholders. Moving into the 21st century, EPA will be
working with various stakeholders to encourage new
ways to meet the challenges of "cross-regional" issues
as well as to integrate programs to address holistically
airborne pollutants.
Reducing Emissions of Criteria Pollutants
Under the Clean Air Act (CAA), EPA establishes
National Ambient Air Quality Standards (NAAQS) to
protect human health, including the health of
"sensitive" populations like asthmatics, children, and
senior citizens. EPA also sets limits to protect public
welfare, including protecting against degradation of
ecosystems, vegetation, crops, and materials and
preventing visibility impairment.
FY 2000 GPRA Perfomance
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EPA has set national air quality standards for six
principal pollutants (referred to as criteria pollutants):
carbon monoxide (CO), lead (Pb), nitrogen dioxide
(NO^, ozone, particulate matter (PM), and sulfur
dioxide (SO^. Between 1970 and 1999, total emissions
of the six principal air pollutants decreased 31 percent
[state core performance measure (CPM) for all six
criteria pollutants]. These improvements occurred
simultaneously with significant increases in the nation's
population, economic growth, and travel and are a result
of effective implementation of clean air laws and
regulations, as well as enhancements in the efficiency
of industrial technologies.
Trends in Emission Sources and
NAAQS Pollution Emissions
U.S. Gross Domestic
Product Increased 147%
Vehicle Miles Traveled
Increased 140%
U.S. Population
Increased 33%
Aggregate Emissions
Decreased 31%
(Six Principal Pollutants)
1970
1980
1990
1999
Further improvements in air quality are expected
with the implementation of new regulations for
passenger vehicles and trucks. In FY 2000 EPA finalized
a rule for passenger vehicles, including sport utility
vehicles, that requires these vehicles to be 77 to 95
percent cleaner for NOx (a contributor to ground level
ozone or smog, and nitrogen deposition in water
bodies). The rule takes effect beginningwith model year
2004 and will reduce NOx by nearly 3 million tons per
year by 2030. A rule for trucks, when fully implemented
in 2030, will reduce NO emissions by 2.6 million tons
X ^
per year.
In FY 2000 as the result of sustained improvements
in air quality and the fulfillment of other CAA
requirements, 13 additional areas, with a population of
5.2 million people, were found to have improved air
quality enough to meet at least one of the standards
for the criteria pollutants (some CPMs for criteria
pollutants). Despite this progress in air quality
improvement, more than 62 million people still live in
counties with monitored pollution levels that do not
meet one or more national air quality standards (this
number does not consider the 8-hour ozone standard).
To address the persistent air pollution problems in those
areas, EPA is working with the states, tribes, and local
governments on additional strategies and has proposed
a program to control regional haze, which is largely
caused by particulate matter.
Population in Counties with Monitored
Levels of Pollutants Above the NAAQS
CO
Pb
NO2
03(1hr)j
03 (8 hr)
Any NAAQS
(1 hr O3)
Any NAAQS
(8 hr O3)
1991
1999
60 90
Millions of People
120
150
EPA and the states are continuing their multi-year
effort to address the ozone transport problem by
moving forward with plans to reduce NOx emissions
in the eastern portion of the country. In FY 1999 EPA
finalized the "NOx State Implementation Plan (SIP)
call," requiring states in the eastern portion of the
United States to submit SIPs that reduce emissions of
NO . In March 2000 a decision by the U.S. Court of
X J
Appeals for the District of Columbia Circuit largely
upheld the NOx SIP call, remanding only a few issues
back to EPA. In FY 2000 EPA developed a plan to
implement the NOx SIP call in accordance with the
court decision. Nineteen states and the District of
Columbia were required to submit, by October 30,2000,
plans achieving approximately 90 percent of the
emission reductions required by the original NOx SIP
call.
In FY 2001 EPA plans to begin the rulemaking
process on the remanded issues. Full implementation
of this SIP call, considering the intended revisions,
would reduce total NO emissions by nearly 1 million
x J •>
tons annually. In FY 2000, as a back-up to the NOx
SIP call, EPA granted petitions filed by four
northeastern states seeking to reduce ozone pollution
through reductions in NOx emissions from other states.
EPA is currently awaiting a decision from the DC.
Circuit regarding the legality of granting these petitions.
The ozone pollution reductions from these actions will
II-2
EPA's FY 2000 Annual Report
-------
provide cleaner air for more than 100 million people.
In addition, these two actions will reduce acid rain and
visibility problems. They will also protect water quality
by reducing the amount of nitrogen deposition in water
bodies.
In FY 2000 EPA continued the litigation on the
legality of the July 1997 ozone and fine particle
standards. The Supreme Court granted EPA's request
for review of the D.C. Circuit decision that remanded
the standards to EPA and heard oral arguments on
November 7, 2000. The Court is expected to decide
the case by the middle of 2001. Because of the litigation,
EPA did not take any steps to implement the 8-hour
ozone standard in FY 2000, although EPA is working
with the states to determine appropriate boundaries for
areas that are not attaining the 8-hour standard. To
ensure a minimal, federally enforceable level of human
health protection against ozone pollution, EPA
reinstated the pre-1997 1-hour ozone standard in the
summer of 2000.
The litigation has not affected efforts related to
the fine particle standard. As was scheduled, EPA is
working with states to collect data from the new fine
Particle Monitoring Network to determine fine particle
levels across the country. EPA is also continuing its
review of the scientific studies on the health effects of
fine particles for the 5-year review of the standard that
is required by the CAA. EPA has stated that it intends
to complete both efforts before beginning
implementation of the fine particle standard.
In FY 2000 EPA also conducted various planning
activities to support implementation of the regional
haze rule by the states and tribes. The first state plans
for reducing regional haze are due in the 2003 to 2008
time frame with full implementation expected by 2018.
Regional haze, due to the presence of fine particles in
air that scatter and absorb light effectively, impairs
visibility over a large area. The Agency's activities include
developing technical tools and guidance, expanding the
Interagency Monitoring of Protected Visual
Environments visibility monitoring network, providing
funding and developing work plans for five regional
planning bodies, and conducting specific work with the
Western Regional Air Partnership on an annex to the
recommendations of the Grand Canyon Visibility
Transport Commission. These activities will help states
achieve the national visibility goal Congress established
when it amended the CAA in 1977.
Monitoring and Controlling Air Toxics
Toxic air pollutants are those pollutants that cause
or might cause cancer or other serious health effects,
such as reproductive effects or birth defects, or adverse
environmental and ecological effects. Some common
toxic air pollutants are benzene (found in gasoline),
perchloroethylene (emitted from some dry cleaning
facilities), and methylene chloride (used as a solvent in
some industries). Most air toxics originate from man-
made sources, including mobile sources (e.g., cars,
trucks, buses, construction equipment), stationary
sources (e.g., factories, refineries, power plants), and
indoor sources (e.g., building materials and some
cleaning compounds). Air toxics are also released from
natural sources like volcanic eruptions and forest fires.
Unlike the criteria pollutant program, an extensive
nationwide monitoring network for air toxics does not
yet exist. In FY 1999, however, EPA, with the assistance
of state and local co-regulators, began developing a
national strategy for monitoring toxic air pollutants. The
Agency is beginning to implement that strategy.
Specifically in FY 2000 EPA, the states, tribes, and local
governments worked to develop criteria for monitoring
and analyzing ambient air toxics. In addition four urban
area pilot projects—Providence, Detroit, Tampa, and
Seattle—were funded and they are expected to operate
for 1 year. Six small city/rural pilot projects will also be
established. This pilot phase, which was reviewed by
the Agency's Science Advisory Board, is part of a larger,
multiyear program to be used to generate information
on the variability of ambient air toxics over time and
geographic areas to guide the proper deployment of
an air toxics monitoring network.
In addition the Agency is conducting a four-step
National-Scale Air Toxics Assessment, as part of the
Integrated Urban Air Toxics Strategy, that will focus
on the 33 air toxics that present the greatest threat to
human health in the largest number of urban areas.
The assessment results can then be used to identify the
areas of the country and pollutants for which further
investigation is needed. The first two steps, completed
in FY 2000, were to compile a national inventory of
air toxics emissions from outdoor sources and to
estimate ambient concentrations of air toxics across
the contiguous United States using data from 1996. The
last two steps, to be completed in early 2001 for peer
review, are to estimate population exposures across the
contiguous United States and to characterize potential
$
e.
FY 2000 GPRA Perfomance
II-3
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human health risk due to inhalation of air toxics,
including both cancer and noncancer effects.
EPA has put in place important controls covering
air toxics from fuels and engines and is continuing to
take additional steps to reduce air toxics from vehicles.
EPA anticipates that by 2020 there will be a 75 percent
emissions reduction in key air toxics from highway
vehicles from 1990 levels. In particular in FY 2000 the
Agency finalized the rule that sets the standards for the
next generation of cleaner-burning engines and gasoline
for passenger vehicles, including sport utility vehicles,
and finalized a similar rule for cleaner heavy-duty trucks
and buses and their fuel. EPA also introduced a
voluntary diesel retrofit program that encourages states,
cities, and private companies to use modern emissions
control technology on their older diesel engines, which
can remain operable for 20 to 25 years. Two pilot retrofit
projects are under way in Seattle and Washington, DC,
and three more projects are planned. In addition to
reducing air toxics, these regulatory and voluntary
efforts will also reduce criteria pollutants.
Another program, the reformulated gasoline (RFG)
program is helping to reduce pollution in the
metropolitan areas of the country with the most difficult
air quality problems. In 1995 EPA began work with the
states to implement a two phased RFG program using
gasoline blends to burn fuel more cleanly. During Phase
I, which ended in 1999, emissions of benzene (a known
human carcinogen) were reduced in major metropolitan
areas by as much as 43 percent. Phase II, which began
on January 1,2000, should reduce vehicle emissions of
volatile organic compounds by 27 percent, air toxics
emissions by 22 percent, and NO emissions by seven
percent (http://www.epa.gov/oms/). Phase II will
also reduce toxic emissions by about 24,000 tons per
year in RFG areas, equivalent to eliminating the toxic
emissions from more than 13 million vehicles. EPA
estimates that the Phase I and Phase II RFG program
will reduce smog pollutants by 105,000 tons per year,
equivalent to eliminating the smog-forming emissions
from more than 16 million vehicles. About 75 million
people in 17 states are breathing cleaner air because of
the RFG program.
EPA is nearing the end of the first phase of the
two-phase process for regulating stationary source air
toxic emissions that Congress established in the 1990
Amendments. In the first phase, air toxic emissions are
to be reduced by requiring industry to do what is doable:
In a program that combines EPA's commitment to
accurate, timely environmental information with
cutting edge technology, AIRNOW displays the smog
levels throughout the day and tracks changes hour by
hour. AIRNOW presents the information in easy-to-
understand maps. "Real-time" data are available for
35 states and Washington DC. Air pollution forecasts
for 135 cities appear in USA Today and on the Weather
Channel. The goals of EPA's AIRNOW web site are
to (1) provide real-time air pollution data in an
understandable, visual format; (2) provide information
about health and environmental effects of air pollution;
(3) provide the public with information about ways in
which they can protect their health and actions they
can take to reduce pollution (http://www.epa.gov/
airnow).
National Air Quality Maps
August 16, 2000 and August 17, 2000
EPA was required to set industry-wide standards based
on pollution control equipment that is already in use.
In FY 2000 the Agency proposed eight of these
Maximum Achievable Control Technology (MACT)
standards covering 12 types of emission sources. The
Agency also issued three final MACT standards for four
source categories. These rules will reduce toxic
emissions by an estimated 62,000 tons each year when
fully implemented; together, once fully implemented,
the toxics standards issued over the past 10 years will
cut emissions of toxic air pollutants by nearly 1.5 million
II-4
EPA's FY 2000 Annual Report
-------
tons per year. EPA is also beginning the second phase
of the two-phase process — determining whether there
are remaining risks that require additional controls. In
FY 2000 the Agency conducted 12 screening risk
assessments on previously promulgated 2- and 4-year
MACT standards and concluded that four source
categories will need further assessments to determine
whether additional regulations are needed. In December
2000 EPA issued a finding that mercury emitted from
power plants is a human health concern. This triggered
a requirement to issue a rule by 2004 to regulate mercury
emissions from power plants.
Reducing Acid Rain
Acidic deposition or "acid rain" occurs when
emissions of SO2 and NOx in the atmosphere react
with water, oxygen, and oxidants to form acidic
compounds. These compounds fall to earth in a dry
form (gas and particles) or a wet form (rain, snow, and
fog). Major human health concerns associated with
exposure to fine particles include effects on breathing
and the respiratory system, damage to lung tissue, and
premature death. In the environment, acid rain raises
the acid levels in certain soils and water bodies, making
the water unsuitable for some fish and other wildlife; it
also damages certain trees at some higher elevations.
Acid rain is carried by the wind, sometimes across state
and national borders. "In the United States, prior to
the implementation of the NOx SIP call (which will
not begin until 2004), electric utility plants that burn
fossil fuels produce about 64 percent of annual SO2
emissions and 26 percent of NO emissions.
The Acid Rain Program, as authorized by the Clean
Air Act, is being implemented in two phases: Phase I
Reductions in SO2 and NOx Emissions from
Utility Sources Following CAA Title IV
Implementation
20
ID
O
O
15
Ł.10
in
o
'« c
LLJ
17.5
SO2 Emissions
16.3 15.9
118.7
Without Title IV
1th Title IV
0
1980 1985 1990 1995 2000 2005 2010
for SO2 began in 1995 and targeted the largest and
highest-emitting power plants, predominantly coal-fired
units; Phase I for NO began in 1996. As the chart
' x o
indicates, the programs have significantly reduced
emissions from the 1990 baseline. Phase II for both
pollutants began in 2000. The Acid Rain Program now
covers more than 2,500 units and includes gas-, oil-,
and coal-fired units. The Phase II units installed
continuous emissions monitors and began reporting
emissions to the Acid Rain Program in 1995. Required
reporting of emissions from all affected units was
needed for EPA to assess utilities' compliance with the
program's reduced utilization provisions. It also ensured
a smooth start-up of Phase II in 2000, when all affected
units became subject to SO2 emission reductions. Most
coal-fired Phase II units also became subject to NOx
emission reductions in 2000. The transition to full
program operation has progressed smoothly. In
addition, the computer-based Allowance Tracking and
Emissions Tracking Systems, which support the
program and were enhanced in FY 2000, will be
expanded in the next several years to support operations
of the Ozone Transport Commission's NOx Budget/
Multistate Emissions Trading Program in the Northeast.
SUMMARY OF FY 2000 PERFORMANCE
EPA has made significant progress toward
achieving its long-term goal of clean air for all
Americans through successful and collaborative
integration of regulatory and partnership activities. Final
rules setting standards for cleaner burning engines and
fuels, final rules for passenger vehicles including sports
utility vehicles, proposal of eight and issuance of three
MACT standards, and expansion of the universe of
electric utility plants covered under the Acid Rain
program all highlight the Agency's movement toward
meeting its strategic clean air goal.
RESEARCH CONTRIBUTIONS
Criteria Pollutants
In FY 2000 EPA completed key research on an
atmospheric model (the Community Multi-scale Air
Quality model, or Models-3/CMAQ) that will allow
state, tribal, and local air quality managers to more
accurately forecast the benefits of alternative ozone,
PM, and regional haze source controls. Models-3/
FY 2000 GPRA Perfomance
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•a
o
CMAQ simultaneously looks at ozone, PM, visibility,
acid rain, and some toxics, as an aid in evaluating control
strategies for one or several ozone precursors. EPA
offices and regions are working together to encourage
states to use the model for upcoming SIPs.
EPA continues to work with state and local agencies
in all areas to develop strategies to help them maintain
clean air or come into compliance while being sensitive
to local economic and other issues. The Agency is
required to examine the NAAQS every 5 years to ensure
that they are protective of human health. Currently, EPA
is working toward completing a review of the ozone
and PM25 standards by 2002. In addition, the draft plan
for the Ozone Air Quality Criteria Document (AQCD)
is nearly ready for release for public comment and Clean
Air Scientific Advisory Committee (CASAC) review;
This is an important milestone in the 5-year review of
the tropospheric ozone NAAQS set by the Agency.
EPA leads research efforts to characterize human
exposures to PM and to evaluate the biological
mechanisms behind PM's respiratory and cardiovascular
effects. PM-related research in FY 2000 included
assessments to determine the best means to estimate
health outcomes and the susceptibility of sensitive
subgroups, including children and senior citizens. A
recently completed exposure study indicates that
exposure of senior citizens to PM creates health risks.
Research in FY 2000 also included the evaluation of
the role of various components of PM, such as
transition metals, in producing toxicity EPA is also
conducting research to evaluate, improve, and develop
control technologies for industrial and commercial
sources. Results of these efforts will ensure that the
Agency's review of the PM standard is based on the
most up-to-date scientific standards available. Additional
research focuses on measurements, methods, and
models to support the review of the PM standard,
including the evaluation of the Models-3/CMAQ model
for PM, which the states can use to predict which
reductions in emissions sources will likely achieve
attainment of PM NAAQS. Also, in FY 2000, work
continued on the second External Review Draft of the
PM AQCD which will be released shortly for public
comment and CASAC review;
Air Toxics
In FY 2000 EPA's air toxics research program
developed and demonstrated new methods to assess
risks from urban toxics and conducted research to
develop integrated control and pollution prevention
approaches for source categories (such as utilities, waste
combustors, and industrial boilers) that have the greatest
adverse effect on urban air quality. Results of this
research will support the Agency's efforts to develop
strategies to reduce the risks posed by the multitude of
hazardous air pollutants present in many urban areas
across the United States.
PROGRAM EVALUATION
The Benefits and Costs of the Clean Air Act (CAA).
The CAA requires the Agency to complete periodic
evaluations of the impact of the program. An EPA
report to Congress entitled, The Benefits and Costs of the
Clean Air Act (November 1999), estimated the benefits
and costs of the 1990 Amendments (http://
www.epa.gov/air/sect812/). The Agency has begun
the process to update this report.
Air Pollution: Status of Implementation and Issues of the
CAA Amendments of 1990. In response to a request from
Congress, the General Accounting Office (GAO) issued
a report (RCED-00-72) on the status of implementation
of Titles I through VI of the 1990 CAA Amendments.
This evaluation indicated that of the 538 requirements
in those titles with deadlines prior to February 2000 or
with no statutory deadlines, EPA met 409 requirements
and the statutory deadline for 129 requirements. As part
of the evaluation, GAO obtained views from
stakeholders on what they considered the key issues
regarding implementation of the 1990 Amendments.
The stakeholders—state governments, local programs,
industries, and environmental advocacy groups—often
cited the following issues: the degree of flexibility
allowed states and the regulated community to
determine how they will achieve air quality
improvements, the extent to which goals and
requirements are clearly specified in the statute or
regulations, and the adequacy of resources at the state
and local levels to effectively implement and enforce
the statute. This information will be considered in the
reauthorization of the CAA. (http://www.gao.gov/
new.items/rc00072.pd^.
EPA's Mobile Source Emissions Factor Model. In 1998
in response to a request from Congress, the National
Academy of Sciences established a committee to
evaluate and develop recommendations for improving
II-6
EPA's FY 2000 Annual Report
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EPA's mobile source emissions factor model, MOBILE.
MOBILE is an EPA-developed model used by
environmental and transportation agencies for
estimating emissions from on-road motor vehicles for
air quality planningpurposes. In FY 2000 the committee
issued its report, which included a number of
recommendations for enhancing MOBILE and for
improving the overall process for estimating mobile
source emissions. EPA is addressing the
recommendations as it develops a new version of
MOBILE, which should be ready in 2001.
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
Goal 1 Annual Performance Goals (APGs) for
FY 2001 reflect successful performance in FY 2000.
For example, the FY 2001 APG for reduction in PM
reflects achievement of the FY 2000 goal by an increase
in the number of areas in which healthy air is maintained
and the associated population in those areas newly
designated as meeting the PM standards. This is also
the case for the CO2, SO2, NO2, and lead reduction
program. In setting APGs and targets for future years,
the Agency will focus on developing outcome-based
program goals where possible. Two areas in which the
Agency currently has good outcome-based APGs are
the NOx and SO2 reduction programs, which are able
to measure emission reductions.
Performance in FY 2000 also impacts broad
program strategies for future years. The CAA provides
a framework for achieving environmental results by
setting specific targets for each program area. The Act
identifies specific activities and establishes a multiyear
schedule for carrying them out. Nationally thousands
of air quality monitors provide the information that is
the foundation for measuring program success. EPA
has a wealth of trend data collected over 30 years for
criteria pollutants; the Agency is now working toward
a similar network for toxic pollutants. Building on the
FY 2000 strategy developed with the states, EPA will
work toward the deployment of a multi-year effort to
generate information on the variability of air toxics over
time and geographic area.
TABLES OF RESULTS
The following tables of results includes
performance results for the eight FY 2000 APGs that
appear in Goal 1. In cases where the FY 2000 APG is
associated with an FY 1999 APG, the table includes
the FY 1999 APG below the FY 2000 APG for ease in
comparing performance. Where applicable, the tables
note cases where FY 2000 APGs are supported by state
National Environmental Performance Partnership
System (NEPPS) and CPMs. As described in more detail
in Section I of the report (the Overview and Analysis),
states use CPMs to evaluate their progress toward
mutual program goals. Additionally, EPA is providing
information on FY 1999 APGs for which data were
not available when the FY 1999 report was published.
FY 2000 GPRA Perfomance
II-7
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
Summary FY 2000 Performance
i — i
nr
I nl Goals
1 UJ Not Met
GOAL 1 - CLEAN AIR
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Planned Actual
Actual
BY 2010, IMPROVE AIR QUALITY FOR AMERICANS LIVING IN AREAS THAT DO NOT MEET NAAQS FOR OZONE
AND PARTICULATE MATTER.
FY 2000 APG 1: Maintain healthy air quality for 33.4 million people living in 43 areas
attaining the ozone standard. •«• Corresponds with FY 2000 NEPPS Core
Performance Measure (CPM).
(FY 1999) Eight additional areas currently classified as non-attainment will have the
1-hour ozone standard revoked because they meet the old standard.
Explanation: Goal met. Maintained healthy air quality for 33.4 million people living in 43
areas meeting the ozone standard. One new area came into attainment and
increased the number of people living in areas attaining the ozone standard
by 1.7 million, resulting in a total of 35.1 million people living in a total of 44
areas designated to attainment.
Data Source: The Aerometric Information Retrieval System (AIRS) is composed of two
systems: Air Quality Subsystem (AQS), which stores ambient air quality data
to determine if nonattainment areas have the three years of clean air data
needed for redesignation and Air Facility Subsystem which stores emissions
and compliance/enforcement information for facilities. AIRS data are collected
from the state and Local Air Monitoring Stations.
The Findings and Required Elements Data System (FREDS) is used to track
progress of states and regions in reviewing and approving the required data
elements of the State Implementation Plan (SIP). SIPs define what action a
state will take to improve the air quality in areas that do not meet national
ambient air quality standards.
Data Quality: Each State and Local Air Monitoring Station (SLAMS) is required to (1) meet
network design and siting criteria, (2) provide adequate quality assurance
assessment, control, and corrective actions functions, (3) ensure all sampling
methods and equipments meet EPA reference or equivalent requirements,
and (4) follow acceptable data validation and record keeping procedures.
SLAMS are summarized and reported annually to EPA. SLAMS undergo
system audits to review the overall air quality data collection activity for any
needed changes or corrections. For AIRS potential data limitations are (1)
incomplete or missing data, (2) inaccuracies due to imprecise measurement
and recording, and (3) inconsistent or non-standard methods of data
collection and processing. No external audit of AIRS has been done in the last
three years. For FREDS the primary limitation is incomplete or missing data
from the Regions. No external audit has been done on FREDS.
33.4 M
33.4 M
10
•a
o
FY 2000 APG 2: Maintain healthy air quality for 1.2 million people living in 7 areas
attaining the PM standards, and increase by 60 thousand the number of
people living in areas with healthy air quality that have attained the
standard. •«• Corresponds with FY 2000 NEPPS CPM.
(FY 1999) Deploy particulate matter 2.5 ambient monitors including mass, continuous,
speciation, and visibility resulting in a total of 1,500 monitoring sites.
Explanation: Goal met. Maintained healthy air quality for 1.2 million people living in seven
areas attaining the particulate matter (PM) standard. Two new areas came
into attainment and increased the number of people living in areas attaining
the PM standard by 76 thousand, resulting in a total of 1.276 million people
living in a total of nine areas designated to attainment.
Data Source: Same as FY 2000 APG 1.
Data Quality: Same as FY 2000 APG 1.
1.2 M
60,000
1.2 M
75,800
1,110
II-8
EPA's FY 2000 Annual Report
-------
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
FY 2000 APG 3: Provide new information on the atmospheric concentrations, human
exposure, and health effects of particulate matter (PM), including PM
2.5, and incorporate it and other peer-reviewed research findings in the
Second External Review Draft of the PM AQCD for NAAQS Review.
(FY 1999) Identify and evaluate at least two plausible biological mechanisms by which
particulate matter (PM) causes death and disease in humans.
Performance Measures
- Hold CASAC Reviewof draft PM Air Quality Criteria Document (AQCD).
- Longitudinal Panel Study on exposure of susceptible sub-populations to PM.
- PM Monitoring Study Data.
- Baltimore Study on Response of Elderly to PM.
Explanation: Goal met. A tremendous amount of new research on atmospheric
concentrations, exposures, and health effects of PM was published in
FY 2000. This research and the results of the FY 2000 Clean Air Scientific
Advisory Committee (CASAC) review of the first draft of the PM AQCD are
being incorporated into the second External Review Draft of the PM AQCD
for National Ambient Air Quality Standards (NAAQS) review. FY 2000
research products included publication of data generated from PM monitoring
studies that reduce uncertainties on atmospheric PM concentrations and
publication of a first generation exposure model for PM of ambient origin.
Research also examined ways to estimate the susceptibility of sensitive
subgroups, specifically through a longitudinal study on exposure to PM and a
study on the response of the elderly to PM.
Data Source: Agency generated material.
Data Quality: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work
products used in Agency decision-making are independently peer reviewed
before their use. EPA has implemented a rigorous process of peer review for
both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry and other federal
agencies.
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BY 2010, REDUCE AIRTOXIC EMISSIONS BY 75 PERCENT FROM 1993 LEVELS TO SIGNIFICANTLY REDUCE
THE RISKTO AMERICANS OF CANCER AND OTHER SERIOUS ADVERSE HEALTH EFFECTS CAUSED BY
AIRBORNE TOXICS.
FY 2000 APG 4: Air toxic emissions nationwide from both stationary and mobile sources
combined will be reduced by 3% from 1999 (for a cumulative reduction
of 30% from the1993 levels of 4.3 million tons.)
(FY 1999) Reduce air toxic emissions by 12% in FY 1999, resulting in cumulative
reduction of 25% from 1993 levels.
Explanation: FY 2000: FY 2000 data will not be available until 2004 due to time lags
associated with reporting and analysis. FY 2000 Target: 3%. Estimated
Actual: 9%, from a revised baseline of 5.9 million tons. The Agency expects
to exceed the FY 2000 annual performance goal primarily due to compliance
with the large municipal waste combustion rule. The estimated 9% reduction
in FY 2000 would result in a cumulative reduction of 32% from 1993 levels.
These estimated reductions are calculated on the expected reduction from
rules becoming effective on emission sources in FY 2000. Actual emission
inventory information from the FY 2002 National Toxics Inventory (NTI) will be
available in mid-2004.
FY 1999: FY 2000 data will not be available until 2001 due to time lags
associated with reporting and analysis. FY 1999 Target: 12%. Estimated
Actual: 10%, from a revised baseline of 5.9 million tons. The target of 12%
was calculated against a baseline of 4.3 million tons in 1993. Analysis of the
3%
Data
available
in
FY 2004
Data
available
mid-
2001
GPRA Performance
II-9
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
FY 1999
Planned Actual
Actual
1996 NTI indicates that the baseline for 1993 is actually 5.9 million tons.
Although emission reduction targets were exceeded, this translates into a
smaller percentage reduction of the increased baseline (estimates for
FY 1999 indicate a 14% reduction in air toxic emissions from the 4.3 million
ton baseline). The estimated 10% reduction in FY 1999 would result in a
cumulative reduction of 23% from 1993 levels. These estimated reductions
are calculated on the expected reduction from rules becoming effective on
emission sources in FY 1999. Actual emission inventory information from the
FY 1999 NTI will be available in mid-2001.
Data Source: The NTI is a database that houses information from other primary sources.
For base year 1993 the system includes emissions information for 188
hazardous air pollutants from more than 900 stationary sources. The 1996
NTI contains facility-specific estimates from state and local data
supplemented with data collected during the development of the Maximum
Achievable Control Technology standards and Toxic Release Inventory data.
It also includes emissions from large industrial or point source, smaller
stationary area sources, and mobile sources.
Data Quality: Because NTI is primarily a database to house information from other primary
sources, most of the quality assurance and control efforts focus on
identifying duplicate data from the different data sources and supplementing
missing data. There has been no effort to validate information collected from
other databases, but a significant effort is underway to determine the best
primary source data in cases where a discrepancy among data sources is
found. Mobile source data are validated by using speciated test data from the
mobile source emission factor program, along with peer-reviewed models
which estimate national tons for the relevant year. Because of the different
data sources, not all information in the NTI has been compiled using identical
methods. Also, for the same reason, there are likely some geographic areas
with more detail and accuracy than others. Each base year's NTI has been
reviewed by internal EPA staff, state and local agencies, and industry.
FY 2000 APG 5: Provide new information and methods to estimate human exposure and
health effects from high priority urban air toxics, and complete health
assessments for the highest priority hazardous air pollutants (including
fuel/fuel additives).
(FY 1999) Complete health assessments for five air toxics as high priority.
Performance Measures
- Produce process & framework for incorporating Acute Reference Exposure values in
Integrated Risk Information System (IRIS).
- Submit for Agency Review Three Toxicological Reviews and Assessments.
Explanation: Goal met. Reports have been published that provide important methods and
data on high priority hazardous air pollutants, including the most potent
carcinogenic environmental polycyclic aeromatic hydrocarbon (PAH) yet
discovered, dibenzo [a,l]pyrene. For non-cancer endpoints new risk
assessment guidance for assessing health risks from acute exposures has
been developed, and research results on relationships between exposure
concentration and duration have been published. Evaluation of
dose-response relationships for several chemicals have been completed, as
have fuel/fuel additives reviews, activities that will support the residual risk,
mobile sources, and National Air Toxics Assessments evaluations and
rulemakings. EPA submitted two assessments for consensus review: vinyl
chloride (IRIS review completed) and hexachlorocyclopentadiene (in IRIS
consensus review) while the third assessment (quinoline and methyl chloride)
was delayed and submitted for consensus review during the first quarter of
FY 2001.
Data Source: Same as FY 2000 APG 3.
Data Quality: Same as FY 2000 APG 3.
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•a
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11-10
EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
BY 2005, IMPROVE AIR QUALITY FOR AMERICANS LIVING IN AREAS THAT DO NOT MEETTHE NAAQS FOR
CARBON MONOXIDE, SULFUR DIOXIDE, LEAD, AND NITROGEN DIOXIDE.
FY 2000 APG 6: Maintain healthy air quality for 27.7 million people living in 46 areas
attaining the CO, SO2, NO2, and Lead standards, and increase by 1.1
million the number of people living in areas with healthy air quality that
have attained the standard.
(FY 1999) Certify that 14 of the 58 estimated remaining nonattainment areas have
achieved the National Ambient Air Quality Standards (NAAQS) for carbon
monoxide, sulfur dioxide, or lead.
Explanation: Goal met. Maintained healthy air quality for 27.7 million people living in
46 areas meeting the carbon monoxide (CO), sulfur dioxide (SO2), nitrogen
dioxide (NO2) and Lead standards. Ten new areas came into attainment and
increased the number of people living in areas attaining the standards by
3.4, million resulting in a total of 31.1 million people living in a total of 56
areas designated to attainment.
Data Source: Same as FY 2000 APG 1.
Data Quality: Same as FY 2000 APG 1.
27.7 M
1.1 M
27.7 M
3.41 M
13
BY 2010, AMBIENT SULFATES ANDTOTAL SULFUR DEPOSITION WILL BE REDUCED BY 20-40% FROM 1980
LEVELS DUETO REDUCED SULFUR DIOXIDE EMISSIONS FROM UTILITIES AND INDUSTRIAL SOURCES. BY
2000, AMBIENT NITRATES ANDTOTAL NITROGEN DEPOSITION WILL BE REDUCED BY 5-10% FROM 1980
LEVELS DUETO REDUCED EMISSIONS OF NITROGEN OXIDES FROM UTILITIES AND MOBILE SOURCES.
FY 2000 APG 7: 5 million tons of S02 emissions from utility sources will be reduced
from the 1980 baseline.
(FY 1999) Maintain 4 million tons of sulfur dioxide (SO,) emissions reduction from utility
sources.
Explanation: Although emissions data are not available until one year after the end of the
calendar year, the Agency is on track to achieve the annual performance
goal.
Data Source: Emissions Tracking System (ETS) receives hourly measurements of SO2 and
nitrogen oxide (NOX) volumetric flow, carbon dioxide (CO2), and other emission-
related parameters from more than 2,000 facilities affected by Title IV.
Continuous Emission Monitoring Systems (CEMS) collect data to measure
NOX and SO2 emissions at major electric utitlities.
Clean Air Status Trends Network (CASTNet) is primarily an eastern, long-term
dry deposition network funded and operated by EPA. The database, which is
also maintained by EPA, measures sulfate and nitrate dry deposition and
meteorological information at approximately 70 active monitoring sites.
National Atmospheric Deposition Program (NADP) is a database that
provides measurements of sulfate and nitrate wet deposition at
approximately 200 active monitoring sites. EPA, along with several other
federal agencies, state, and other private organizations, provide funding and
support for the system. The database is maintained by the Illinois state
Water Survey/University of Illinois.
Data Quality: The Agency performs a series of quality assurance tests of CEMS
performance. For these tests emissions data are collected under highly
structured, carefully designed testing conditions, which involve either high
quality standard reference materials or multiple instruments performing
simultaneous emission measurements. The resulting data are screened and
analyzed using a battery of statistical procedures, including one that tests for
systematic bias. If the CEMS fails the bias test, then either the problem is
corrected or adjusted to prevent the low bias. CASTNet and NADP have
established data quality objectives and quality control procedures for
accuracy, precision, and representativeness. These data are intended to
establish trends in wet deposition and precipitation chemistry.
5 million
tons
Data
available
in late
2001
5.04
million
tons
GPRA Performance
11-11
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000 APG 8: 2 million tons of NOX emissions from utility coal-fired utility sources will
be reduced from the levels before implementation of Title IV of the
Clean Air Act Amendments.
(FY 1999) Maintain 300,000 tons of nitrogen oxides (NOJ reduction from coal-fired
utility sources.
Explanation: Although emissions data are not available until one year after the end of the
calendar year, the Agency is on track to achieve the annual performance
goal.
Data Source: Same as FY 2000 APG 7.
Data Quality: Same as FY 2000 APG 7.
FY 2000
Planned
2 million
tons
Actual
Data
available
in late
2001
FY 1999
Actual
420,000
tons
FY
(Actual
1999 ANNUAL PERFORMANCE GOALS WITHOUT CORRESPONDING FY 2000 GOALS
Performance Data Available in FY 2000 and Beyond or Performance Targets Beyond FY 2000 )
FY 1999 APG:
Explanation:
Data Source:
Data Quality:
Maintain 4 million tons of sulfur dioxide (SO2) emissions reduction from utility
sources, and maintain 300,000 tons of nitrogen oxides (NOX) reduction from
coal-fired utility sources.
Based on information received in FY 2000, EPA exceeded its FY 1999 target. The
Agency surpassed its target of 4 million tons of SO2 emissions reductions and
actually reduced SO2 emissions from utility sources by 5.04 million tons from the
1980 baseline. The Agency also reduced NOx from 265 coal-fired utility units by 420
thousand tons, exceeding the goal by 120 thousand tons.
Same as FY 2000 APG 7.
Same as FY 2000 APG 7.
Planned
4 million
tons
300,000
tons
Actual
5.04
million
tons
420,000
tons
•a
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11-12
EPA's FY2000 Annual Report
-------
Goal 2 FY 2000 Obligations
GOAL 2: CLEAN AND SAFE WATER
Note: EPA FY2000 Obligations
were $8,974 million
All Americans will have drinking water that is clean and safe to
drink. Effective protection of America's rivers, lakes, wetlands,
aquifers, and coastal and ocean waters will sustain fish, plants, and
wildlife, as well as recreational, subsistence, and economic activities.
Watersheds and their aquatic ecosystems will be restored and
protected to improve human health, enhance water quality, reduce
flooding, and provide habitat for wildlife.
OVERVIEW
Safe drinking water is the first line of defense in
protecting human health. The American public enjoys
one of the safest drinking water supplies in the world,
but illnesses due to contaminants continue to occur. In
FY 2000 there were no reported major disease
outbreaks caused by microbial or chemical
contaminants in drinking water, but during the past
decade drinking water contamination caused illness and
even death in places such as Milwaukee, Wisconsin;
Alpine, Wyoming; and rural upstate New York. As
drinking water infrastructure ages and new
contaminants are identified, maintaining the nation's
safe drinking water supply remains a critical challenge.
EPAs human health protection concerns also extend
to threats posed by swimming at contaminated beaches
or eating contaminated fish.
Clean water and healthy aquatic ecosystems support
all life, are vital to many sectors of the U.S. economy,
and play an important role in Native American culture.
Fish, shellfish, and many bird species depend on healthy
aquatic ecosystems for food and shelter. Aquatic plants,
which provide food and cover to many aquatic species,
need clean water to thrive. U.S. manufacturers and the
agricultural industry use vast quantities of clean water
every year to produce products, irrigate crops, and raise
animals. The nation's waters are the number one
vacation choice for Americans. For example, in Long
Island Sound, New York, beachgoers contribute more
than $800 million annually to the local economy. Many
Native American tribes value clean water and some
tribes invoke the spirit of water in cultural ceremonies
for medicinal and purification purposes.
FY 2000 PERFORMANCE
Protecting People From Contamination in Drinking
Water, Fish, and Recreational Waters
Improving Drinking Water Quality
For the second consecutive year at least 91 percent
of the American public served by community water
systems received water meeting all health-based drinking
water standards in effect since 1994, even as EPA, states
and tribes worked collaboratively to develop new
national standards and regulations. In addition the
population served by non-transient, non-community
(NTNC) drinking water systems with no violations in
FY 2000 was 93 percent, just below the target of 96
percent. EPA missed the target because the Agency
estimated FY 2000 performance based on the data
reported by non-transient water systems several years
Population Served by Community Water
Systems Meeting Drinking Water Standards
1994 1995 1996 1997 1999 2000 2005
94
92
90 |
88 -5
a.
86 S.
4-«
84 g
o
82 Ł
80
78
76
FY 2000 GPRA Performance
11-13
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ago. The actual information reported for FY 2000
includes data from many more of these systems, which
are now subject to more rigorous reporting
requirements. The FY 2000 data reflects a more
complete and accurate picture of human health
protection for persons who drink water supplied by
these NTNC drinking water systems. The Agency has
worked diligently with states and water systems over
the past few years to implement its drinking water data
reliability plan.
In FY 2000 EPA headquarters and regions, tribes
and states took significant actions in four key areas:
focusing regulations on high-risk contaminants,
improving consumer right-to-know about drinking
water quality, protecting source waters, and financing
improvements to drinking water systems. To address
microbial contaminants such as Cryptosporidium, E. coli,
and Giardia, which are the most widespread threat to
drinking water, in the spring of 2000 EPA proposed
the Ground Water Rule and the Long-Term Enhanced
Surface Water Treatment Rule. These two rules will
protect consumers served by groundwater and small
surface water systems by preventing up to 198,000 cases
of waterborne disease per year. They build on the
Interim Enhanced Surface Water Treatment Rule,
promulgated in 1998, which required surface water
systems serving over 10,000 persons to protect against
microbial contamination. Together these rules will
complete the first series of measures for microbial
protection, and cover all consumers of water provided
by public water systems, whether from surface water
or groundwater, in small towns and large cities.
In addition EPA and a Federal Advisory Committee
composed of states, water systems, medical
professionals, and other public officials, reached
agreement on the second phase of standards mandated
by the 1996 Safe Drinking Water Act (SDWA)
Amendments involving microbial contaminants,
disinfectants used to treat such contaminants, and
disinfection byproducts resulting from treatment. These
standards will increase controls for source waters at high
risk of contamination by Cryptosporidium, et.al. Also they
are examples of the Agency's first endeavor to address
acute health effects that may be caused by disinfection
byproducts and thereby will assure equal protection
from exposure to these byproducts throughout the
drinking water distribution system.
•a
o
Radon and arsenic were the high-risk chemical
contaminants addressed by the drinking water program
in FY 2000. In November 1999 the Agency proposed
a multimedia mitigation approach for radon that will
have a significant effect on reducing the human health
risk from radon in drinking water as well as in indoor
air. EPA also proposed new protective standards to
address arsenic in drinking water in June 2000. Arsenic
is a known carcinogen and is also linked to many
noncancer health effects. EPA, states, tribes, and water
systems agree that the current, 50-year old arsenic
standard of 50 parts per billion (ppb) does not provide
adequate human health protection. In March 1999 the
National Academy of Sciences concluded that the
current 50 ppb standard does not protect human health
and recommended that it be revised downward as
quickly as possible. Consequently the revised rule not
only proposed a lower level but also requested comment
from both the drinking water community and the
general public on alternative regulatory levels that would
be reviewed thoroughly and carefully during the final
rulemaking process.
The human health protection afforded by these new
standards can be realized only if there is effective
implementation at the state, tribal and local levels. In
this regard EPA conducted more than 20 training and
technical assistance sessions with regional, state, and
drinking water utility staff during FY 2000 on rules
addressing microbial contaminants and disinfectants/
disinfection byproducts, lead and copper, consumer
confidence, and unregulated contaminant monitoring,
as well as on guidelines for operator certification. Ten
workshops on small systems' concerns were also held
nationwide. States, associations, and environmental
groups have undertaken an unprecedented effort at
training and technical assistance for water systems,
particularly small systems, local governments, and the
general public. In addition EPA has worked with
partners to lead many nationwide endeavors to increase
public drinking water protection and awareness. All
states are overseeing capacity development and operator
certification programs to ensure that owners and
operators of public water systems are fully
implementing existing and new SDWA requirements.
The Agency is approaching and promoting
prevention of drinking water contamination through
both voluntary and mandatory activities. Fifty states
and territories have an EPA-approved Source Water
Assessment and Prevention Program and conduct
11-14
EPA's FY 2000 Annual Report
-------
CONSUMERS GET BETTER AND FASTER
INFORMATION ABOUT THEIR
DRINKING WATER
As a result of the new Consumer Confidence Report
Rule, for the first time ever approximately 253 million
Americans have access to annual consumer
confidence reports on the quality and safety of their
drinking water. These reports give customers of
drinking water systems the information they need to
make their own health decisions. More than 100
million Americans are able to read their water quality
reports on-line. Water systems, states, and EPA
worked hard to assure compliance with this rule in its
first year, providing reports for 99 percent of the
population covered by the rule. In May 2000 the
Agency also revised the Public Notification Rule to
require public water systems to alert consumers within
24 hours if there is a serious problem with their
drinking water that might pose a health risk.
^ ^
assessments of their public water supplies. Data from
these assessments will help determine the susceptibility
to contamination of each state's sources of public
drinking water and set the stage for community water
systems to target their efforts to actual or potential high-
risk contaminants. Forty-nine states are voluntarily
going beyond the requirement of the SDWA, which is
only to complete the assessments, by beginning to act
to prevent source water contamination, based on
information gathered during the assessments. These
next steps are critical to the future of the drinkingwater
program, and are the primary responsibilities of states,
tribes, and water systems to implement. In December
1999 EPA issued new final regulations on two types of
shallow disposal wells into which a variety of hazardous
and nonhazardous fluids (e.g., chemicals, mining, oil,
and gas) is injected below the land's surface. There are
an estimated one million underground injection wells
nationwide, of which about 700,000 are shallow disposal
wells. The new regulations, targeted to motor vehicle
disposal and cesspools, are a vital tool in ensuring that
fluid wastes are contained in these disposal wells safely,
and do not pose a health risk to the majority of U.S.
public water systems that get their drinking water from
groundwater.
Over the past four years of the Drinking Water
State Revolving Fund (DWSRF), EPA has made
available approximately $3.6 billion in assistance to all
50 states, Puerto Rico, the District of Columbia, and
the territories to establish their revolving loan programs,
and states have moved quickly to make these funds
available to water systems. Since 1997 more than
1,400 loans totaling over $2.8 billion support projects
to modernize or replace outdated plants and pipes as
well as to construct new systems. Small water systems
have been a focus of these loans, with over three-fourths
awarded to systems serving fewer than 10,000 people.
These loans enable water systems to address critical
human health needs, even as the cost of providing safe
drinking water—finding a water supply, treating the
water, delivering the water, and maintaining the
system—continues to be a challenge. EPA's 1997
Drinking Water Needs Survey Report to Congress identified
more than $138 billion in industry needs, the vast
majority of which are targeted for delivery of water,
rather than for meeting SDWA requirements.
Reducing Exposure to Contaminated Fish
States and tribes have primary responsibility for
informing the public about the risks of eating
contaminated fish, and EPA plays a leadership and
support role. In 1999 approximately seven percent of
river miles and 16 percent of lake acres were assessed
to determine if they contain fish or shellfish that should
not be eaten or should be eaten only in limited quantities,
particularly by sensitive populations such as pregnant
women and young children. The target of ten percent
of river miles assessed was not met. This was primarily
because states focused their resources on lakes, where
most recreational fishing occurs. The total number of
fish advisories in the United States rose by 145 or six
percent (seepage 11-41 in Goal 4). Advisories increased
for mercury, polychlorinated biphenyls (PCBs), dioxin,
and dichlorodiphenytrichloroethane (DDT), but
decreased for chlordane again in FY 2000. The increase
in advisories generally reflects more assessments being
performed and improved monitoring and data
collection methods. Currently, 40 states follow EPA's
guidance for developing fish consumption advisories
based on risk assessments, up from 25 states in 1998.
To support the fish advisory program, EPA in
FY 2000 updated its technical guidance documents to
include new toxicity information for several persistent
bioaccumulative toxics, new fish consumption limits
for recreational and subsistence fishers, and
recommendations for simplified advisory approaches.
Pursuant to the Clean Water Action Plan (CWAP), EPA
FY 2000 GPRA Performance
11-15
-------
and the American Fisheries Society published a joint
report on the national consistency of fish consumption
advisory programs.
Improving Beach Monitoring and Public Notification
In FY 2000 EPA and state officials worked to
strengthen the voluntary beach protection program to
help states and local communities protect their residents
from exposure to contaminated waters at their beaches.
NEW JERSEY LEADS THE WAY IN BEACH WATCH
The State of New Jersey is working with 94 of its
coastal municipalities to eliminate beach pollution.
The municipalities are mapping their storm water and
sewage lines and monitoring storm water discharges
to coastal waters. Beach closings are usually associated
with specific storm events or sewage collection system
disruptions. Over the past several years, contamination
incidents and subsequent beach closings have been
more localized and short-lived. The State expects that
continuing to improve storm water management
will further decrease the need for beach
closings.
X. _ >
EPAs internet site posted information provided by state
and local officials on 1,981 beaches—35 percent more
beaches than last year, and approximately 50 percent
more beaches than when the program began in 1997.
This information included 150 digitized maps available
to the public, meeting EPA's goal for FY 2000.
Approximately 459 beaches (24 percent of the reported
beaches) had at least one advisory or closing during the
year. Although the number of beaches reported has
increased significantly during the past three years, the
percentage of beaches with a closing or advisory has
remained consistent at approximately 25 percent.
Leading causes of impairment included rain leading to
storm water runoff which caused elevated bacterial
levels.
EPA also provided technical assistance materials to
help state and local officials improve their monitoring and
advisory programs. EPA published proceedings of two
major conferences which addressed needs andprocedures
designed to improve beach monitoring and public
notification across the country. The Agency also produced
and distributed a training video and manual on using EPA
recommended recreational water quality indicators
(enterococci andŁL colt) to assess beach water quality. EPA
will continue to work with state and local officials, and
healthprofessionals to improve the quality and consistency
of monitoring and reporting beach water conditions and
to improve and increase communications with the public.
Conserving and Enhancing the Nation's Waters
In the latest national inventory of water quality
summarized below, states, tribes, territories, and
interstate commissions report that about 40 percent
of the U.S. streams, lakes, and estuaries assessed (about
32 percent of all U.S. waters) were not clean enough to
support uses like fishing and swimming. The leading
pollutants in impaired waters are sediment, bacteria,
nutrients, and metals. Runoff from agricultural lands
and urban areas is the primary source of these
pollutants.
SUMMARY PROFILE: 1998 NATIONAL WATER QUALITY INVENTORY REPORT TO CONGRESS
Waterbody Type
River (miles)
Lakes (acres)
Estuaries (sq. miles)
Total Size
3,662,225
41,593,748
90,465
Amount Assessed
(% of Total)
842,426 (23%)
17,390,370 (42%)
28,687 (32%)
Good*
(% of Assessed)
463,441 (55%)
7,927,486 (46%)
13,439 (47%)
Good but
Threatened*
(% of Assessed)
85,544 (10%)
1,565,175 (9%)
2,766 (10%)
Polluted*
(% of Assessed)
291,264 (35%)
7,897,110 (45%)
12,482 (44%)
* Includes waterbodies assessed as not attainable for one or more uses. Note: percentages may not add up to 100% due to rounding.
•a
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11-16 EPA's FY 2000 Annual Report
-------
The CWAP calls for states to identify, from among
the 2,262 watersheds nationwide, those high priority
watersheds for which restoration plans will be
developed and actions taken to restore water quality.
For FY 2000 EPA established an ambitious goal of
having improvement projects underway in 350, or about
40 percent, of the 889 high-priority watersheds
identified by states through last year's unified watershed
assessments. Funded largely through increased grants
to states for implementation of nonpoint source
controls, projects are underway in 324 high priority
watersheds. This is slightly short of EPA's goal, but
indicates a significant promise of real water quality
improvements in impaired watersheds.
State and tribal water quality standards represent
water quality goals for each water body and establish
the regulatory groundwork for the water quality-based
controls (such as the National Pollutant Discharge
Elimination System (NPDES) permits) necessary to
protect human and ecological health. In FY 2000 the
Agency issued guidance to assist states and tribes in
assessing the biological health of their waters and
recommended new criteria that could be incorporated
into existing standards to control nutrients and disease-
causing microorganisms. During FY 2000 EPA
completed new methods for sediment toxicity testing
and compiled information on the food chain effects
of contaminated sediments. EPA also issued a revised
methodology for deriving ambient water quality criteria
to protect human health. The methodology provides
guidance to states and tribes to develop criteria and
describes the Agency's process for developing national
criteria. In FY 2000 EPA acted on new water quality
standard submissions for 35 states and 16 tribes. This
total did not meet the FY 2000 goal of 22 tribes because
tribes have not yet been approved as expected for
"treatment as a state" which is a pre-condition of being
approved to run a tribal water quality standards
program. In addition some extended consultations
delayed the submission of tribal water quality standards.
During FY 2000 states and EPA made significant
progress toward commitments on core performance
measures for determining the sources of pollution and
designing clean-up plans, known as Total Maximum
Daily Loads (TMDLs). This program is the framework
for working in partnership cooperatively with the states
to clean up America's polluted waterways under the
Clean Water Act (CWA). Under existing authorities of
the 2,674 water segments previously identified by states
as being polluted and needing TMDLs in FY 2000,
states submitted TMDLs for 2,167. EPA approved
1,276 TMDLs submitted by states, and EPA established
166 TMDLs. The number of TMDLs submitted is
greater than the number of TMDLs approved, primarily
due to the large number of TMDLs submitted for non-
impaired waters under CWA Section 303 (d) (3), which
does not require either approval or disapproval by EPA.
In July 2000 EPA issued a final rule addressing the
national TMDL program.
EPA continued work to support focused coastal
watershed protection activities through efforts in the
28 estuaries in the National Estuary Program. In
addition the Agency completed two ocean dumping site
designation actions, including a proposed rule to
designate an ocean disposal site off Coos Bay, Oregon,
and the final designation of the Atchafalaya River,
Bayous Chene, Boeuf, and Black disposal sites off the
Louisiana coast.
Understanding the scope and quality of our nation's
wetlands continues to be a top program priority for
EPA. Wetlands play a pivotal role in ensuring watershed
health by filtering contaminants, controlling flooding,
and serving as a critical habitat for many species of
plants and animals. In FY 2000 EPA met its goal of
four more states that made significant progress toward
establishing a wetlands monitoring program. EPA also
continued working with the U.S. Army Corps of
Engineers to make the wetlands permitting program
more environmentally protective, including funding the
National Academy of Sciences to study the effectiveness
of compensatory mitigation in the wetlands permitting
program.
The Chesapeake Bay Program Partners have been
working to restore water quality and key habitats for
the Bay's living resources. Underwater grass beds are a
vital habitat for fish, crabs, and other bay creatures. The
grasses also serve as a nursery habitat for many fish
species. The table displays the trend in Bay grass acreage.
From 1985 to 2000, the Chesapeake Bay Program
Partners restored over 31,000 acres of Bay grass beds,
contributing significantly to the current total level of
68, 125 acres of submerged aquatic vegetation.
Although the Agency's FY 2000 target of 71,500 was
not achieved, increases are expected to continue as
overall water quality improves.
FY 2000 GPRA Performance
11-17
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600
Chesapeake Bay Grass Restoration
Potential Habitat (600,000 acres)
Interim Goal (114,000 acres)
78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 i
The effects of population increases and settlement
shifts to coastal areas represent a particular challenge
in the Gulf of Mexico region. In FY 2000 EPA's Gulf
of Mexico Program, through the leadership of the five
gulf states, teamed with numerous coastal communities,
environmental organizations, and business and industry
leaders to assist in the restoration of 31 impaired coastal
water bodies.
In addition, in FY 2000 the Gulf Program's
innovative public and private partnerships resulted in a
threefold increase in assistance to the states and coastal
communities for projects to restore their coastal
watersheds. New projects included protection and
restoration of more than 800 acres of important
seagrass and coastal wetland habitats, and significant
results have been achieved through Gulf Five Star
Restoration Partnership projects.
Reducing Pollutant Loadings
Reducing Point Source Pollution
A key element of the Agency's efforts to achieve
its overarching goal of clean and safe water is the
reduction of pollutant discharges from point sources
and nonpoint sources. Under the NPDES program,
specific limits are set for pollutants discharged from
point sources into waters of the United States. These
limits are designed to ensure that national technology-
based standards (effluent limitations and guidelines) and
water quality-based requirements are adequate to meet
water quality standards throughout the country. In
support of this effort, a number of activities took place
in FY 2000, including the following:
• Rulemakings to address wet weather pollution
include: (1) promulgation of a final regulation
addressing storm water discharges (the Storm Water
Phase II Final Rule) which are a leading cause of
impairment for the nation's rivers, lakes, and
estuaries; and (2) development of draft proposed
rules for sanitary sewer overflows, after an extensive
stakeholder process.
• Implementation of an aggressive strategy to reduce
the backlog of NPDES permits in regions and
states (see below). Nationwide, at the end of
FY 2000 approximately 70 percent of NPDES
permits were current. This represents a 16 percent
increase over the 54 percent that were current as
of November 1998. Eleven states are already below
the ten percent backlog target, and a total of 18
states are on track to meet the target by December
31,2001. At the end of FY 2000,44.3 percent (285)
of the 644 total EPA issued permits for major point
sources were expired; 78.2 percent (1,603) of the
2,140 EPA issued permits for minor point sources
were expired. Of 6,115 state-issued permits for
major point sources, 26.2 percent (1,603) were
expired, and of 49,672 state-issued permits for
minor point sources, 15,563 or 31.3 percent were
expired. The Agency will continue to work with
regions and states to ensure that they take more
aggressive steps to meet the 2005 corrective action
date.
• Continued work on new guidance and standards
for Concentrated Animal Feeding Operations
(CAFOs) to mitigate actual and potential water
quality impacts from thousands of CAFOs. The
largest may have as many as a million animals at
one facility. Manure from stockpiles, lagoons, or
excessive land application can reach waterways
through runoff, erosion, spills, or via ground water.
These discharges can result in excessive nutrients
(nitrogen, phosphorus, and potassium), oxygen-
depleting substances, and other pollutants in the
water. This pollution can kill fish and shellfish, cause
excess algae growth, harm marine mammals, and
contaminate drinking water.
Providing vital financial support for each of these
activities is the Clean Water State Revolving Fund
11-18
EPA's FY 2000 Annual Report
-------
program (CWSRF). For FY2000 the CWSRF made
nearly $4.1 billion available for nationwide construction
of wastewater treatment facilities. The repayments of
these project loans keeps the funds "revolving" and
continually working for American taxpayers. For
FY 2000 the CWSRF program continued to encourage
use of state Integrated Priority Planning Systems to
target new projects at each state's most pressing
pollution control needs. Since CWSRF financing began
in 1988, more than $30 billion in pollution control
financing has been provided to help achieve water
quality standards.
In FY 2000 EPA promulgated four new effluent
limitation guidelines for the landfill, commercial
hazardous waste combustor, transportation equipment
cleaning, and centralized waste treatment industries,
which should result in combined pollution reduction
benefits of more than 65 million pounds of pollutants
per year. The Agency also proposed a rule to prevent
large fish kills at cooling water intakes at new facilities
and issued the 2000 Effluent Guidelines Plan, which
outlined a new strategy for future regulation. EPA
published a final test procedure for cyanide that will
help NPDES permit writers set limits and help regulated
facilities demonstrate compliance with those limits.
Strengthening State Nonpoint Source Programs
For the last several years, EPA has been working
with states to upgrade and strengthen their nonpoint
source control programs. In FY 2000 EPA completed
draft guidelines for management of on-site wastewater
treatment ("septic") systems and began a major outreach
effort to help states support these guidelines. By the
end of FY 2000, 49 states had upgraded statewide
nonpoint source management programs approved by
EPA, exceeding the goal of 45 states. The states'
upgraded 319 nonpoint source grant programs have
each established specific goals and objectives that are
related in large part to long-term goals to restore the
quality of impaired waters over a given time period
(usually about 15 years). They emphasize partnerships,
operating in both watershed and statewide contexts, as
appropriate, to accomplish their program goals. States
focused one-half of their nonpoint source grants ($100
million) for implementation of watershed restoration
strategies that are designed to address their most critical
water quality problems. In FY 2000 EPA encouraged
states to use the CWSRF for nonpoint source pollution
control, including watershed restoration projects. As
of June 30,2000, 28 states had provided a total of $1.2
billion for some 2,100 nonpoint source pollution
control projects since the beginning of the program.
SUMMARY OF FY 2000 PERFORMANCE
During FY 2000, EPA, states, and tribes made
significant strides in addressing core challenges in the
water program. Public participation increased in many
parts of the water program. These engaged citizens
are vital to achieving our shared watershed goals. EPA
will continue to support states and tribes as they
encourage more community engagement in decisions
about environmental resources and other actions which
affect human health and the environment. EPA will
continue to develop and improve the program tools
such as standards, permits, public information, and
resources which help communities to achieve their goals.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
EPA is continuing to implement an aggressive
strategy to reduce the backlog of NPDES permits. The
success of this strategy is critical to the Agency's ability
to maintain the integrity of the NPDES program and,
ultimately, to make progress toward achieving the overall
loadings reduction goal. As of October 2000 about
70 percent of NPDES permits are current. This
represents an improvement of 16 percent from the
backlog measured in November 1998 (54 percent). Over
the past year, the Agency has taken steps to ensure that
regions and states take more aggressive steps to meet
the 2005 corrective action date.
The Agency completed a comprehensive evaluation
of the water quality standards program and took several
actions to help eliminate the backlog in EPA approvals/
disapprovals of state water quality standards
submissions. As of October 2000 EPA was overdue in
approving or disapproving 45 new or revised standards
from 21 states and six tribes, and had yet to promulgate
19 sets of federal replacement standards for 15 states
that have not corrected the portions of their standards §.
previously disapproved. Backlogs in EPA water quality n
standards actions delay timely decisions to control §
environmental problems, increase uncertainty, and Ł
reduce credibility. EPA placed the highest priority on ^
resolving the outstanding disapprovals and unreviewed S
FY 2000 GPRA Performance
11-19
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•a
o
standards and made considerable progress in FY 2000.
The Agency is also working to identify and eliminate
the problems that generated the backlogs and other
problems. These efforts include conducting an
evaluation of the water quality standards program;
working with states to develop a joint strategy to
improve the water quality standards development,
review, and approval process; and continuing work
toward finalizing a Memorandum of Agreement on
coordinating implementation of the CWA and the
Endangered Species Act.
EPA is in the process of implementing a multi-
step action plan to enhance and improve the
completeness, accuracy, and timeliness of data in the
Agency's Safe Drinking Water Information System
(SDWIS). Human health protection is at risk when the
Agency does not have reliable and comprehensive data
to ensure that safe drinking water is being provided by
all public drinking water systems. During FY 2000 the
Agency developed and implemented state-specific
training for data entry into SDWIS, conducted data
verification audits in 12 states, and developed a new
transaction processing and tracking report. In addition,
the Agency initiated efforts to develop a long-term
Information Strategy Plan that addresses drinkingwater
data collection and data management issues over the
next 5 to 10 years.
Please see Section III -ManagementAccomplishments and
Challenges for a further discussion of the above issues.
RESEARCH CONTRIBUTIONS
Goal 2-related research conducted in FY 2000
continued to strengthen the scientific basis for drinking
water standards by providing improved methods and
new data to better evaluate and control the risks
associated with exposure to chemical and microbial
contaminants in drinking water. To support the SDWA
and its 1996 amendments, EPAs drinking water research
program focused on the development of health effects
data, analytical tools, and risk assessment methods for
disinfectant by-products (DBPs), waterborne
pathogens, and arsenic. The Agency also continued to
develop and evaluate cost-effective treatment
technologies for removing pathogens from water
supplies while minimizing DBP formation, and for
maintaining the quality of treated water in the
distribution system. Increased emphasis was placed on
filling key data gaps and developing methods for
chemicals and microbial pathogens on the Contaminant
Candidate List.
Research in FY 2000 evaluated exposures to
stressors and their effects on aquatic systems and will
improve the Agency's understanding of the structure,
function, and characteristics of those systems. This
research will be used to improve risk assessment
methods to develop aquatic life, habitat, and wildlife
criteria. The Agency is also developing assessment
methods and cost-effective management technologies
for contaminated sediments, with an emphasis on
identifying innovative in situ solutions. In FY 2000 EPA
continued to develop diagnostic tools to evaluate the
exposures to toxic constituents of wet weather flows.
The Agency also continued to develop and validate
effective watershed management strategies for
controlling wet weather flows, especially high-volume,
toxic flows. Research was also conducted to develop
the effective beach evaluation tools necessary to make
timely and informed decisions on beach advisories and
closures.
PROGRAM EVALUATION
The General Accounting Office conducted a study
on the states' ability to implement increasing drinking
water program requirements. The final report of the
study was released at a congressional hearing held on
September 19, 2000, by the Subcommittee on Health
and the Environment of the House Committee on
Commerce (www.gao.gov, Report T-RCED-00-298).
Prior to the release of GAO's report, EPA and the
Association of State Drinking Water Administrators
(ASDWA) agreed on actions to take in FY 2001 to
address this issue. EPA will work with ASDWA and
states to determine each state's program status,
particularly to identify barriers and common problems.
EPAs regions will then work with individual states to
address barriers that are hindering each state's ability to
fully meet SDWA goals. EPA headquarters is working
with regions to share lessons learned about how to
simplify and improve implementation of drinking water
regulations. EPA plans to continue its effort to reduce
monitoring and data collection burdens while still
collecting adequate high quality data to meet essential
program needs.
11-20
EPA's FY 2000 Annual Report
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In addition to external studies, in FY 2000 EPA
conducted several internal reviews which expanded its
ability to use evaluation to strengthen program
management to achieve the goals of clean and safe
water. EPA assessed the process of developing,
reviewing and approving state water quality standards.
These state-adopted standards describe how water
bodies will be used and contain the water quality criteria
that must be met to protect those designated uses.
Developing standards is primarily a state function. EPAs
role is to review, in appropriate consultation with the
U.S. Fish and Wildlife Service and the National Marine
Fisheries Service (the Services), and affirm that the state
standards meet the requirements of the CWA. The
standards review and approval process has been
criticized for being too slow and inefficient. EPA
conducted a thorough nationwide evaluation of the
program to identify the causes and recommend
solutions that will improve EPAs approval process and
assure that standards are based on sound science and
that states have determined appropriate designated uses
and criteria for monitoring. The evaluation found that
statutory and programmatic differences, lack of
sufficient resources and technical expertise, inefficient
coordination and communication, and lack of clear and
consistent national guidance all contributed to the
problem. EPA is implementing several of the
recommendations. In early FY 2001 the Agency will
enter into a Memorandum of Agreement with the
Services to streamline the now complex and time-
consuming review procedures related to the
Endangered Species Act. The Agency also expects to
complete a strategy for implementing other study
recommendations during the latter part of FY 2001.
EPA completed an internal evaluation of the
National Marine Debris Monitoring Program, to
determine whether this voluntary program is statistically
effective and whether the program design remains valid.
Preliminary results suggest that the program will meet
its original goals of measuring the amount of marine
debris on U.S. coasts and identifying the sources of the
debris. EPA is partnering with the Center for Marine
Conservation (CMC) on this project. Summarized data
sets are available on CMC's web site at http://
www.cmc-ocean.org/nmdmp and are user friendly
for local, state, regional, and nationwide stakeholders.
EPA conducted an internal evaluation of regional
oversight of state NPDES programs in Regions 3 and
4. These internal reports recommended that the regions
build consistency in resolving issues by using tools such
as central tenets listing conditions for permit
disapproval, time lines for comment and response, staff
training and support, and tracking/management
systems.
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
FY 2001 performance goals and measures will
continue to evolve, reflecting EPAs increasing ability
to measure and/or represent water quality and its
contributions to human health and healthy aquatic
ecosystems, as well as its value as a natural resource.
For example, in FY 2001 EPA will report for the first
time on the increased number of whole watersheds
whose assessed waters largely meet designated uses.
FY 2001 measures will display the continuing progress
being made in maintaining the population served by
water systems receiving safe drinking water (even as
systems incorporate new health-based standards). The
Agency has met its FY 2000 performance goal of
another two million people receiving the benefits of
secondary treatment (see Annual Performance Goal
(APG) # 16), so that nearly all of the population served
by publicly owned treatment works receive the benefits
of secondary treatment or better. Beginning in 2001,
EPA will report the number of CWSRF projects funded
as a performance measure. In addition EPA expects in
2001 to increase the number of waters for which
TMDLs have been developed and to increase the
number of updated water quality standards.
EPAs 2001 goals also reflect the fact that a complete
baseline of information for many programs is not yet
available, and that a number of our most important
programs depend on significant voluntary efforts on
the parts of states and other partners. Targets for 2001
include increasing the percentage of waters assessed
for meeting water quality standards for designated uses,
waters assessed for the need for fish advisories, and
beaches where monitoring and notification of the public
takes place. Resource constraints as well as overlapping i-
or conflicting program requirements mean that G
meaningful monitoring and reporting remain challenges. |
States and tribes increased their efforts in these areas g>
in FY 2000, and EPA expects them to continue to ^
FY 2000 GPRA Performance
11-21
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•a
o
improve in 2001. EPA will continue to work with
partners to support better standards and testing,
monitoring and reporting, and provision of the resulting
information to the public quickly, clearly, and accurately.
TABLES OF RESULTS
The following tables of results includes
performance results for the FY 2000 APGs that appear
in Goal 2. In cases where the FY 2000 APG is associated
with an FY 1999 APG, the table includes the FY 1999
APG below the FY 2000 APG for ease in comparing
performance. Where applicable, the tables note cases
where FY 2000 APGs are supported by National
Environmental Performance Partnership System Core
Performance Measures (CPMs). As described in more
detail in Section I of the report (the Overview and
Analysis), states use CPMs to evaluate their progress
toward mutual program goals. Additionally, EPA is
providing information on FY 1999 APGs for which
data was not available when the FY 1999 report was
published as well as those FY 1999 APGs that are not
associated with any APGs in FY 2000.
11-22 EPA's FY 2000 Annual Report
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance |
8' I Goals I o I Goals I n|
..„. \f. L,_.._. U
GOAL 2 - CLEAN AND SAFE WATER
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
BY 2005, PROTECT HUMAN HEALTH SO THAT 95% OF THE POPULATION SERVED BY COMMUNITY WATER
SYSTEMS WILL RECEIVE WATER THAT MEETS DRINKING WATER STANDARDS, CONSUMPTION OF
CONTAMINATED FISH AND SHELLFISH WILL BE REDUCED, AND EXPOSURE TO MICROBIAL AND OTHER
FORMS OF CONTAMINATION IN WATERS USED FOR RECREATION WILL BE REDUCED.
FY 2000 APG 9: 91% of the population served by community drinking water systems
will receive drinking water meeting all health-based standards that were
in effect as of 1994, up from 83% in 1994. •> Corresponds with FY 2000
NEPPS Core Performance Measure.
(FY 1999) 89% (increase of 1% over 1998) of the population served by community
water systems will receive drinking water meeting all health-based standards
in effect as of 1994, up from 83% in 1994.
Explanation: Goal met.
Data Source: The Safe Drinking Water Information System (SDWIS) serves as the central
repository for data on both the states' implementation of and compliance with
existing and new drinking water regulations. States and EPA regions (for
"direct implementation" jurisdictions) enter data representing public water
systems characteristics and drinking water monitoring into the SDWIS
database.
Data Quality: SDWIS has a full suite of software-based edit checks and quality assurance
procedures to aid accurate data entry. However, there are recurrent reports
of discrepancies between national and state data bases, as well as specific
mis-identifications reported by individual utilities. Given the particular need
for confidence in the completeness and accuracy of data about drinking water
quality, EPA designated SDWIS content as an Agency material weakness in
1999, under the Federal Managers' Financial Integrity Act.
91%
91%
91%
FY 2000 APG 10: Reduce exposure to contaminated recreational waters by increasing
the information available to the public and decision-makers.
Performance Measures
- Cumulative number of beaches for which monitoring and closure data is available at
"beaches" web-page.
- Number of digitized maps on the web-page.
Explanation: Goal met. The additional electronic information enables the public to
precisely locate beach closings, reducing exposure to contaminated
recreational waters.
Data Source: The National Health Protection Survey of Beaches Information Management
System database.
Data Quality: Self-reported data for public use; participation is voluntary and presently
incomplete. Therefore no rigorous quality assurance requirements are in
place. Inconsistencies between different reporting jurisdictions are possible.
No
FY 1999
APG
1,800
150
1,981
150
FY 2000 GPRA Perfomance
11-23
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000 APG 1 1 : Reduce uncertainties and improve methods associated with the
evaluation and control of risks posed by exposure to disinfection
by-products (DBFs) in drinking water.
(FY 1999) EPA will develop critical dose-response data for disinfection by-products
(DBFs), water-borne pathogens, and arsenic for addressing key uncertainties
in the risk assessment of municipal water supplies.
Performance Measures
- Report regarding feasibility of refined DBP exposure data for previous epidemiological studies.
- Report on new DBFs from alternative disinfectants.
- Final peer-reviewed report on selected DBP mixtures' toxicological endpoints.
Explanation: Goal met. EPA completed methods for improving the interpretation of data
from published DBP epidemiology studies, and reports that provide important
information about new DBPs in drinking water, and the risks that may be
posed by exposures to mixtures of these contaminants.
Data Source: Agency generated material.
Data Quality: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work
products used in Agency decision making are independently peer reviewed
before their use. EPA has implemented a rigorous process of peer review for
both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry, and other federal
agencies.
FY 2000 APG 12: Reduce uncertainties and improve methods associated with the
evaluation and control of risks posed by exposure to microbial
contaminants in drinking water.
(FY 1999) EPA will develop critical dose-response data for disinfection by-products
(DBPs), water-borne pathogens, and arsenic for addressing key uncertainties
in the risk assessment of municipal water supplies.
Performance Measures
- Describe different technologies of cost/effective control of Cryptosporidium and DBPs.
- Report on U. S. waterborne disease outbreaks.
- Evaluation of Method 1622 for Cryptosporidium.
Explanation: Goal met. EPA completed reports on the nature and magnitude of waterborne
disease outbreaks in the United States during 1997-1998 and on an
evaluation of a key method for the identification of Cryptosporidium in
drinking water, directly helping to reduce uncertainties and improve methods
associated with the evaluation and control of risks posed by exposure to
microbial contaminants in drinking water. A project to evaluate cost-effective
treatment methods for Cryptosporidium and DBPs was not completed due to
insufficient time being allotted for the completion of this research. However,
EPA completed complementary projects, such as a research progress report
on biofilm (microbial communities growing on the confining surfaces of a
distribution system) formation and control which will provide useful
information on protecting distribution systems. In this way EPA appreciably
met the performance goal.
Data Source: Same as FY 2000 APG 1 1 .
Data Quality: Same as FY 2000 APG 1 1 .
FY 2000
Planned
1
1
1
9/30/00
1
1
Actual
1
1
1
1
1
FY 1999
Actual
9/30/99
9/30/99
11-24
EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
CONSERVE AND ENHANCE THE ECOLOGICAL HEALTH OF THE NATION'S (STATE, INTERSTATE,
AND TRIBAL) WATERS AND AQUATIC ECOSYSTEMS-RIVERS AND STREAMS, LAKES, WETLANDS, ESTUARIES,
COASTAL AREAS, OCEANS, AND GROUNDWATER-SOTHAT 75% OF WATERS WILL SUPPORT HEALTHY
AQUATIC COMMUNITIES BY 2005.
FY 2000 APG 13: Environmental improvement projects will be underway in 350 high
priority watersheds as a result of implementing activities under Clean
Water Action Plan (CWAP).
(FY 1999) As part of the CWAP, all states will be conducting or have completed unified
watershed assessments, with support from EPA, to identify aquatic resources
in greatest need of restoration or prevention activities.
Explanation: Goal not met. Environmental improvement projects underway in 324 high
priority watersheds, which is slightly short of EPA's ambitious goal. The goal
is for FY 2000 only, to be superseded in FY 2001 by a direct measure of the
number of large-scale watersheds showing improvements in water quality.
Data Source: Internal Agency count.
Data Quality: There are no data quality issues.
350
324
56
FY 2000 APG 14: Assure that states and tribes have effective, up-to-date water quality
standards programs adopted in accordance with the Water Quality
Standards regulation and the Water Quality Standards (WQSs) program
priorities.
Performance Measures
- Number of states with new or revised WQSs that EPA either approved, or disapproved ,and
promulgated replacements.
- Cumulative number of tribes with approved WQSs in place.
Explanation: Goal not met. State WQS reviews are under a 3-year cycle, as mandated by
the Clean Water Act, under which all states maintain updated water quality
programs; therefore, the Agency will review approximately one-third of all
state/tribal programs each year. Fewer tribes than expected have achieved
"treatment as a state" status, which is a pre-condition for being approved to
run a WQS program. EPA is committed to improving the Agency's review and
approval process for "treatment as a state" to address this barrier. In FY 2001
EPA expects to implement a Memorandum of Agreement with the U.S. Fish
and Wildlife Service and the National Marine Fisheries Service to greatly
improve the timeliness and effectiveness of cross-agency coordination in the
WQS review and approval process. EPA will also provide additional technical
assistance to tribes to help them develop better WQSs.
Data Source: Same as FY 2000 APG 13.
Data Quality: Same as FY 2000 APG 13.
No
FY 1999
APG
15
22
35
16
FY 2000 APG 15: Identify the primary life support functions of surface waters that
contribute to the management of sustainability of watersheds.
(FY 1999) EPA will provide data and information for use by states and Regions in
assessing and managing aquatic stressors in the watershed, to reduce toxic
loadings and improve ecological risk assessment.
Performance Measure
- Research strategy document to determine the impact of landscape changes on wetland
structure and function.
Explanation: Goal met. The completed work evaluated specific habitats such as wetlands,
riparian areas, headwaters, and estuaries to determine their basic function
and role in the landscape. This information will allow EPA to determine what
makes these habitats critical and will provide a basis for prioritizing protection
and restoration decisions.
9/30/99
I
GPRA Performance
11-25
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
Data Source:
Data Quality:
Same as FY 2000 APG 11.
Same as FY 2000 APG 11.
BY 2005, POLLUTANT DISCHARGES FROM KEY POINT SOURCES AND NONPOINT SOURCE RUNOFF WILL BE
REDUCED BY AT LEAST 20% FROM 1992 LEVELS. AIR DEPOSITION OF KEY POLLUTANTS IMPACTING WATER
BODIES WILL BE REDUCED.
FY 2000 APG 16: Another two million people will receive the benefits of secondary
treatment of wastewater, for a total of 181 million people.
(FY 1999) Another 3.4 million people will receive the benefits of secondary treatment of
wastewater, for a total of 179 million.
Explanation: Goal met. Currently nearly all of the nation's population is served by publicly
owned treatment works with secondary treatment or better.
Data Source: Manual system. Extracted from EPA databases including the Clean Water
Needs Survey Database and the Permits Compliance System.
Data Quality: Data are manually verified.
2M
2M
3.4 M
FY 2000 APG 17: Industrial discharges of pollutants to the nation's waters will be
significantly reduced through implementation of effluent guidelines.
Performance Measures
- Cumulative reduction in toxic-pollutant loadings by facilities subject to effluent guidelines
promulgated between 1992-1999, against 1992 levels (predicted by models).
- Cumulative reduction in conventional-pollutant loadings by facilities subject to effluent
guidelines promulgated between 1992-1999, against 1992 levels (predicted by models).
- Cumulative reduction in non-conventional-pollutant loadings by facilities subject to effluent
guidelines promulgated between 1992-1999, against 1992 levels (predicted by models).
Explanation: Goal met. EPA substantially met the goal of reducing industrial discharges of
the three classes of pollutants. Targets were based on model projections of
effluent guidelines, having to estimate both the facility universe and the
number of permits developed. The actual number of issued permits in
different industry sectors resulted in greater than expected reductions in
conventional pollutants, and less than expected reductions in
non-conventional pollutants.
Data Source: The Permit Compliance System (PCS) is the principle compliance tracking
system governing EPA's supervision of the National Pollutant Discharge
Elimination System (NPDES) permit program. It contains data from EPA and
states on Wastewater facility NPDES permits.
Data Quality: Ongoing quality action/quality control safeguards include EPA review of state
databases that serve as key data sources. However, there are known
inconsistencies between state/federal records, particularly for minor facilities,
and previous EPA Office of Inspector General audits have discussed the
need for fresher data. EPA is engaged in a major modernization of the PCS
system and databases.
No
FY 1999
APG
4Mlbs
385 M Ibs
260 M Ibs
4Mlbs
473 M Ibs
136 MIbs
FY 2000 APG 18: Develop modeling, monitoring, and risk management methods that
enable planners and regulatory officials to more accurately characterize
receiving and recreational water quality and to select appropriate
control technologies.
(FY 1999) By 2003: Deliver support tools, such as watershed models, enabling resource
planners to select consistent, appropriate watershed management solutions
and alternative, less costly wet-weather flow control technologies.
Performance Measure
- Link urban storm water management models to a Geographic Information System (GIS).
Target
year is
FY 2003
11-26
EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Explanation: Goal met. EPA met this goal by completing research linking urban storm
water management models to a geographic information system, which will
assist in the development of improved safety guidelines and pollution
indicators that states, local municipalities, and tribes can use to monitor
recreational waters in a cost-effective way. Improving the characterization of
recreational water quality will provide important input to the development of
guidance in state, tribal, and local implementation of beach monitoring and
notification programs designed to reduce human exposure to waterborne
microbials and protect the public health.
Data Source: Same as FY 2000 APG 1 1 .
Data Quality: Same as FY 2000 APG 1 1 .
FY 2000
Planned
Actual
FY 1999
Actual
FY 1999 ANNUAL PERFORMANCE GOALS
(NO LONGER REPORTED FOR FY 2000)
EPA will issue and begin implementing two protective drinking water standards for high-risk contaminants, including
disease-causing micro-organisms (Stage I Disinfection/Disinfection By-products and Interim Enhanced Surface Water
Treatment Rules).
4,400 community water systems will be implementing programs to protect their source water (an increase of 1,650
systems over 1998).
EPA will provide funding to restore wetlands and river corridors in 30 watersheds that meet specific "Five Star Project"
criteria relating to diverse community partnerships (for a cumulative total of 44 watersheds).
More than 220 communities will have local watersheds improved by controls on combined sewer overflows (CSO) and
storm water.
In support of the Clean Water Action Plan, ten additional states will upgrade their nonpoint source programs, to ensure
that they are implementing dynamic and effective nonpoint source programs that are designed to achieve and maintain
beneficial uses of water.
I
GPRA Performance
11-27
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Goal 3 FY 2000 Obligations
$75M
GOAL 3: SAFE FOOD
The foods Americans eat will be free from unsafe pesticide
residues. Children especially will be protected from the health
threats posed by pesticide residues because they are among the
most vulnerable groups in our society.
Note: EPA FY 2000 Obligations
were $8,974 million
OVERVIEW
Americans have one of the safest, most abundant,
and affordable food supplies in the world as a result of
work done by federal, state, and local governments to
manage and control the risk posed to human health by
pesticide residues on food. The use of pesticides in
agricultural production and food processing contributes
significantly to that safety, abundance, and affordability.
Ensuring that food remains safe for consumption,
however, requires constant diligence on the part of
pesticide producers, users, and regulatory agencies in
the manufacture, labeling, storage, review, approval, and
use of pesticides. EPA continues to protect the nation's
food supply by reviewing all new and existingpesticides,
making determinations about their safety, and denying
or restricting the use of pesticides that do not meet
current health or ecological standards.
The Agency addresses risk from pesticides when it
registers new pesticides or reregisters older pesticides,
ensuring that each pesticide meets current health and
environmental protection standards and that product
labeling includes complete, up-to-date, easily
understandable use instructions and precautions. The
reregistration program reevaluates the safety of
pesticides initially registered before November 1984.
To mitigate risk in cases where data indicate that a
pesticide does not meet current human health and
environmental standards, EPA can modify or restrict
the allowable uses, including canceling use or allowing
use only by a certified applicator or under supervision
of a certified applicator.
In FY 2000 protection of infants, children, and
other vulnerable groups remained a high priority for
the Agency. EPA applies an extra tenfold safety factor
(for food use pesticides) in risk assessments to account
for children's special vulnerabilities, unless scientific data
indicate that a different factor is warranted, and
considers special dietary patterns of groups such as
Native Americans, urban poor, and farm families. The
Agency is continuing to update and improve its pesticide
toxicity testing guidelines and other assessment tools.
In FY 2000 the Agency made further progress
toward its strategic goal through a combination of
regulatory, outreach, and partnership activities, including
the following: (1) continuing to register new pesticides
and reregister existing pesticides, emphasizing
revaluation of existingpesticides that pose the greatest
health risks, and accelerating the registration of lower-
risk alternatives; (2) training and educating pesticide
users and applicators; and (3) encouraging the
development and adoption of alternative means of pest
control, including the use of nonchemical approaches
and lower-risk pesticides.
FY 2000 PERFORMANCE
Reducing Agricultural Pesticide Risk
Approximately 20,000 pesticides products are
currently registered or licensed for use in the United
States. Pesticide products are used in or on food, around
homes, businesses, schools, hospitals, and in parks.
Before EPA registers a pesticide product for sale and
use, the Agency evaluates test data on all of its
ingredients. The test data, which include studies on the
effects the product will have on humans, wildlife, fish,
and plants (including endangered species), are provided
by the registration applicant (known as the registrant).
Depending on the type of pesticide, a registrant may
be required to generate data from as many as 100
different tests in order for the Agency to determine the
product's safety.
FY 2000 GPRA Performance
11-29
-------
EPA is developing and evaluating improved
methods to estimate human exposure to and risk from
pesticides. The Agency has made considerable progress
in improving its risk assessments by incorporating the
latest scientific methods. For example during FY 2000
EPA published for public comment 14 draft or revised
science guidelines and policy papers that describe how
EPA scientists will evaluate aggregate exposure,
cumulative risk, and other science policy issues when
they assess pesticides under the Food Quality Protection
Act (FQPA). The Agency also convened the Federal
Insecticide, Fungicide and Rodenticide Act (FIFRA)
Scientific Advisory Panel six times to consult on these
subjects with external scientists. Additionally the Agency
consulted with stakeholders through the Tolerance
Reassessment Advisory Committee and the new
Committee to Advise on Reassessments and Transition,
held a public technical meeting on cumulative risk, and
held several public meetings on individual chemicals.
Broadening stakeholder input helps the Agency gain
cooperation from industry and growers in developing
and implementing reduced risk agricultural practices.
Recognizing the need to develop methods that
directly measure or reliably estimate these risks on a
national or regional basis, EPA must currently use a
variety of program activities as surrogate indicators of
progress, one of which is the processing of registration
applications. The Agency, in partnership with Florida
State University, is working to develop a strategy for
building baseline data and national environmental
indicators with the ultimate goal of replacing the
surrogate indicators of progress with those that reflect
health effects associated with pesticides. The strategy
document is expected during FY 2002.
EPA identified and solicited public comment on
several new program progress indicators, including food
pesticide residue data collected by the U.S. Department
of Agriculture (USDA) to track reductions in the
occurrence of residues of neurotoxic and carcinogenic
pesticides on foods frequently eaten by children. Such
indicators will help EPA to better target its limited
resources to obtain the best results.
EPA completed 13 pesticide registrations for several
reduced-risk pesticides. Pesticide usage data indicate that
increased availability of lower-risk pesticides, combined
with public demand for safe food, encourages pesticide
producers and users to shift to reduced-risk alternatives.
REDUCING RISK THROUGH REGISTRATION OF
REDUCED-RISK PESTICIDES
Harpin Protein. This biopesticide has the potential
to be an important human health and environmental
risk reduction tool. Harpin is a class of protein
produced naturally. It triggers the plant's natural
defense mechanism rather than directly interacting
with the pest organism. For this reason, organisms
are not expected to develop resistance to Harpin.
Harpin is effective against certain viral diseases for
which there are no other controls. It also protects
against soil-borne pathogens and pests (nematodes
and fungi) that have few potential controls other than
methyl bromide, an ozone-depleting chemical.
Approved uses include all food commodities, trees,
turf, and ornamentals.
New Uses for Spinosad and Glyphosate. During
FY 2000 EPA staff collaborated with USDA to design
a more efficient strategy for developing and applying
residue data needed to establish tolerances for the
reduced-risk chemicals Spinosad and Glyphosate on
more than 200 crops, including many children's foods.
This effort cut data development time by 2 to 3 years
for many of these uses, allowing EPA to register the
additional uses of these two lower-risk pesticides in
FY 2000. These changes also resulted in a direct
savings of $1 million to the federally and state-funded
program that developed the data. Through these
streamlined registration actions, more than 150 crops
may now be treated with Spinosad and approximately
250 crops may now be treated with Glyphosate
instead of other, higher-risk pesticides.
As the use of reduced-risk alternatives increases, they
may also become more affordable.
Because of public concern over various aspects of
biotechnology (e.g., pest resistance, allergens, genetic
alteration), EPA began a scientific and public review
of the current registrations for certain genetically
engineered corn and cotton varieties, commonly
referred to as Bt corn and Bt cotton. The Agency also
extended the existing registrations of Bt cotton and Bt
corn plant pesticides until September 30,2001, to allow
ample time for this comprehensive review; EPA will
use this comprehensive approach to ensure that
decisions are based on the best available scientific
analysis and that opportunity is provided for an open
11-30
EPA's FY 2000 Annual Report
-------
dialogue with the public regarding Bt products. To
ensure that all viewpoints are represented, EPA will
seek input from the public from the FIFRA Science
Advisory Panel, and through a review being led jointly
by the Council on Environmental Quality and the White
House Office of Science and Technology Policy. In
addition in FY 2000 the Agency worked diligently to
finalize the plant pesticide rule. EPA believes that the
rule, first proposed in 1994, will clarify the status of
plant-incorporated protectants under FIFRA. Plant
incorporated protectants can serve as lower risk
alternatives to conventional pesticides used on foods.
The final rule, expected in FY 2001, will reflect careful
consideration of all public comments and relevant
scientific data.
Reducing Use on Food of Pesticides Not Meeting
Health Standards
Since 1988 EPA has been conducting a
comprehensive review of the risks associated with
pesticides initially registered before November 1,1984.
In FY 1996 FQPA added a new dimension to the
pesticide reregistration program. Under FQPA, EPA
evaluates pesticides to assess whether use of the
pesticides in accordance with their label instructions
presents "reasonable certainty of no harm." After
completing a review and ensuring that the pesticide does
not present human or environmental health threats, the
Agency issues a Reregistration Eligibility Decision
(RED). In cases where the reviews indicate that
pesticides do not meet health and environmental
Progress in Reassessing Pesticide Tolerances as of September 30, 2000
100
90
80
70
! 60
I
I 50
40
30
20
10
0
1186
505
376
169
203
50
1215
683
3190
6170
3551
Organophosphates Carbamates Organochlorines Carcinogens
requirements, EPA can modify the allowable uses of
pesticides, including canceling use or limiting use to
certified applicators. FQPA also sets stricter safety
standards for pesticide residues in or on food and it
requires EPA to reassess all existing tolerances within
10 years to ensure they meet the new safety standard.
In FY 2000 EPA continued to reduce human health
risks (through substitution of these chemicals with safer
pesticides, tolerance reassessments, and reregistration)
from organophosphates and other high-risk pesticides,
such as organochlorines, carcinogens, and carbamates.
Because organophosphates are widely used, accounting
for more than half of all food crop insecticides used in
the United States, and can adversely affect the human
nervous system, EPA views the reassessment of these
products as a major step in risk reduction. EPA is
committed to ensuring a safe and abundant food supply
for Americans and recognizes that restricting use of
widely used pesticides in the absence of appropriate
alternatives could compromise this commitment. In
FY 2000 the Agency worked in collaboration with
USDA to obtain a broad range of stakeholder and
public comments on its risk assessments for the
organophosphate pesticides. EPA also held a number
of open, public technical briefings to communicate risk
concerns and obtain the views of stakeholders.
EPA made substantial progress in reviewing
individual organophosphates and carbamate pesticides
and characterizing their risks. The six REDs EPA
completed in FY 2000 incorporate various risk-
reduction measures, such as allowing use of certain
products only by certified
applicators, canceling
pesticide products or
deleting uses, limiting the
amount or frequency of
use, requiring additional
personal protective equip-
ment or other worker
protection measures for
applicators such as
improving use directions
and precautions, and/or
employing groundwater or
surface water protection.
Others
TOTAL
Completed
I | Remaining L
Status of the EPA's tolerance reassessment program, by chemical class. In total, 3, 551 tolerances
(37% out of a total of 9,721) have been reassessed. Thus EPA is more than one-third complete
with progress on reassessing tolerances, including high-risk chemicals such as organophosphates,
carbamates, organochlorines, and carcinogens.
FY 2000 GPRA Performance
11-31
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RISK MITIGATION ON ORGANOPHOSPHATES
Chlorpyrifos. EPA reached an agreement with
pesticide manufacturers to eliminate and phase out
certain uses of the organophoshate chlorpyrifos—
the active ingredient in Dursban, one of the most
heavily used household insecticides. This agreement
will significantly reduce risk from food and residential
uses, particularly to children. The agreement lowers
or revokes tolerances on apples, tomatoes, and
grapes; classifies new end-use products as restricted
use; and reduces drinking water risk through phaseout
or cancellation of most indoor/outdoor residential
uses, which are major contributors to drinking water
contamination.
Bensulide. EPA's review of bensulide, an
organophosphate herbicide used on vegetable crops,
ornamentals, and turf, found that dietary risk from
residues on food was low but that aggregate risk could
be significant when potential drinking water
exposures through runoff from turf applications
were considered. EPA worked to mitigate the risk
of bensulide by prohibiting handheld application
methods and treatment of large turf areas, adopting
label changes, and restricting the number and timing
of golf course applications.
Regulation of antimicrobial pesticides is another
arena in which EPA contributes to ensuring the safety
of America's food supply. During FY 2000 the Agency
convened an interagency panel to review a procedure
for evaluating the efficacy of consumer products
intended to control disease-carrying organisms on fresh
fruits and vegetables. EPA also initiated a review of
procedures to evaluate the efficacy of antimicrobial
agents claimed to reduce the number of disease-carrying
organisms in food processing, water, and in air. Other
ongoing efforts related to antimicrobial pesticides
include work with stakeholder groups and scientific
experts to (1) develop performance standards and
efficacy tests for registering treated articles (such as
cutting boards, kitchen sponges, cat litter, toothbrushes,
and toys) associated with human health claims and (2)
refine registration requirements and performance
standards for products that claim to control human
pathogens in medical waste. EPA's investments in
expanded outreach and communication concerning
antimicrobial pesticides have proven invaluable in
providing up-to-date information to the public in
instances like the FY 2000 recall of certain cleaning
products found to cause respiratory symptoms in some
users. The National Antimicrobial Information
Network, which provides a wide variety of information
about antimicrobials through a toll-free telephone
number (1-800-447-6349) and the Internet (http://
www.ace.orst.edu/info/nain/), is an example of the
communication tools available.
SUMMARY OF FY 2000 PERFORMANCE
Through successful, collaborative integration of
regulatory, outreach, and partnership activities, EPA
made progress in ensuring that food is free from unsafe
pesticide residues, especially where children are
concerned. The Agency continued using the best
available science in the review of new and existing
pesticides. EPA also continued to expedite the
registration of reduced-risk pesticides and to review
the highest-risk existing pesticides first, canceling or
otherwise restricting use of pesticides that do not meet
the current health standards. Additionally the Agency
encouraged greater public awareness about the
precautions people should take in the proper
preparation and handling of food. These actions played
an important part in moving the Agency toward its
strategic goal to improve food safety.
RESEARCH CONTRIBUTIONS
In FY 2000 EPA conducted research to develop
and improve methods and models that predict, estimate,
and measure health effects resulting from exposure to
pesticides. Developing improved methods to detect,
characterize, and quantify pesticide exposures in infants,
children, and other susceptible subpopulations is an
important focus of this research. The FQPA has
expanded EPA's pesticide risk assessment research,
particularly in the area of evaluating aggregate
exposures to pesticides from multiple sources and the
cumulative risk posed by multiple pesticides that share
a common mechanism of toxicity. In FY 2000 research
centered on providing methods and models to evaluate
the risk to human health posed by food-use products.
One of the most important activities was the revision
of a first generation, multimedia, multipathway pesticide
exposure model that identifies critical exposure
pathways and factors for infants and young children.
Future research will continue to focus on the
development of risk assessment methods and models
11-32
EPA's FY 2000 Annual Report
-------
for susceptible populations, but will also include a
greater emphasis on the development of new exposure
and effects data to address the key issues and science
needs of cumulative risk.
PROGRAM EVALUATION
The General Accounting Office (GAO) assessed
how EPA protects children's health and addresses their
special vulnerability to pesticides in the report Children
and Pesticides: New Approach to Considering Risk Is Partly in
Place (HEHS-00-175). This investigation addressed the
progress EPA has made in considering aggregate
exposure and the cumulative effects of pesticides, as
well as the progress made in reassessing tolerances for
pesticide residues. GAO found that EPA has put in
place interim procedures to address aggregate exposure
and that methods for addressing cumulative risk are
being developed. When complete, the methods will be
implemented on a group of chemicals considered to
be of potentially high risk. To address GAO concerns,
EPA is giving special attention to the foods children
most frequently eat (http://www.gao.gov).
applied to the evaluation of other high-risk pesticides
in FY2001. The FQPA requirement to address the
cumulative risk of all pesticides sharing a common
mechanism of toxicity will continue to affect EPAs
tolerance assessment completions in FY 2001. In
addition, the Agency is revising its 2001/2002 targets
upwards for several registration outputs to better reflect
process improvements made since 1997.
TABLES OF RESULTS
The following tables of results includes
performance results for the two FY 2000 Congressional
APGs that appear in Goal 3. In cases where the FY 2000
APG is associated with a FY 1999 APG, the table
includes the FY 1999 APG below the FY 2000 APG
for ease in comparing performance.
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
The Agency's FY 2000 target for tolerance
reassessments was not met due in part to the continuing
development of the cumulative risk methodology. The
Agency has already done a substantial amount of work
on many tolerances but cannot call the tolerances fully
reassessed because of the pending development of the
Agency's cumulative risk policy. Once the cumulative
risk policy has been approved (expected by the end of
FY 2001) and applied to the tolerance reassessment
process, the Agency expects to increase the pace of
tolerance reassessments. Therefore the Agency will
revise its FY 2002 Annual Performance Goal (APG)
for tolerance reassessment upward so that the Agency
will be on track to meet the statutory requirement of
66 percent of existing tolerances reassessed by 2002.
The Committee to Advise on Reassessments and
Transition, which began in FY 2000, will continue to
add diverse stakeholder input to EPAs decision-making
process. Lessons learned from the organophosphate
pesticide reviewprocess, particularly the need for better
data and collaboration among stakeholders, will be
FY 2000 GPRA Performance
11-33
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance I
I -t I Goals I -t I Goals I A I
I ' JlVlet LLlNotMet LrJOther]
GOAL 3 - SAFE FOOD
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Planned Actual
Actual
BY 2005, THE RISK FROM AGRICULTURAL USE OF PESTICIDES WILL BE REDUCED
BY 50 PERCENT FROM 1995 LEVELS.
FY 2000 APG 19: Decrease adverse risk from agricultural uses from 1995 levels and
assure that new pesticides are safe by such actions as registering
6 new chemicals, 2,200 amendments, 600 me-toos, 200 new uses,
45 inerts, 375 special registrations, 225* tolerances and 13 reduced risk
chemicals/biopesticides.
(FY 1999) Decrease adverse risk from agricultural pesticides from 1995 levels and
assure new pesticides that enter the market are safe for humans and the
environment.
Explanation: Goal met. Pending availability of improved indicators, the Agency uses the
processing of registration applications as surrogate measures. In partnership
with Florida State University, the Agency is refining environmental indicators
for pesticide programs and is analyzing ways to measure risk posed by
agricultural uses of pesticides. It is likely that the risk will be inferred by
examining usage levels of safer "reduced-risk" pesticides, using 1995 (pre-
Food Quality Protection Act) as a baseline. Revised perfomance indicator/
measure is expected in FY 2002.
'The APG for FY 2000 contained in the FY 2001 Congressional Justification
erroneously included 105 tolerances, yet indicated 225 tolerances as the
planned performance measure target for 2000. The correct number of
tolerances for the 2000 APG is 225. In this report, EPA is referencing 225
tolerances, as written in the FY 2001 Congressional Justification as a
performance measure target for 2000.
Data Source: The Pesticide Regulatory Action Tracking System is designed to collect and
track information submitted by the regulated industry to support a pesticide
registration application.
The Tolerance Index System (TIS) contains information on current tolerances,
crop residues by crop and crop group for food and feed use.
Data Quality: EPA conducts internal senior management reviews of data contained in
pesticide tracking systems. EPA is developing two databases: (1) Office of
Pesticide Program Information Network (OPPIN) to consolidate pesticide data
into one system and (2) the National Pesticide Residue Database (NPRD), in
conjunction with the Food and Drug Administration, U.S. Department of
Agriculture, and the states of California and Florida, to automate validation of
data submissions. The NPRD is being created in response to a
recommendation by the National Academy of Science (NAS) Report
Pesticides in the Diets of Infants and Children, 1993. The report provided the
findings by NAS National Research Council Committee on its examination of
the adequacy of present risk assessment methods and policies and
toxicologic issues of most concern to children. One of the findings was that
there was no comprehensive data source on pesticide residue levels in the
major foods consumed by infants and children. The purpose of the database
is to have a single national repository of pesticide residue monitoring data
with consistent/standardized reporting of data.
•a
o
6
2,200
600
200
45
375
225
13
6
3,069
1,106
427
95
458
452
16
7
3,586
1,022
681
109
455
351
19
11-34
EPA's FY 2000 Annual Report
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FY 9nnn ANNIIAI PFRFORMANPF fiOAi ^ AND MFA^IIRF^
i I Ł.\J\J\J nMMUnL. rdir WrilVlnM wC VJIWHLO /AMU IVICnOUriCO
FY 2000
Planned
Actual
FY 1999
Actual
BY 2005, USE ON FOOD OF CURRENT PESTICIDES THAT DO NOT MEET THE NEW STATUTORY STANDARD OF
"REASONABLE CERTAINTY OF NO HARM" WILL BE SUBSTANTIALLY ELIMINATED.
FY 2000 APG 20: EPA will reassess 20% of the existing 9,721 tolerances to ensure that
they meet the statutory standard of "reasonable certainty of no harm."
(FY 1999) Under pesticide reregistration, EPA will reassess 19% (or 1,850) of the
existing 9,700 tolerances (cumulative 33%) for pesticides food uses to meet
the new statutory standards of "reasonable certainty of no harm. "
Explanation: Goal not met. As of September 2000, the Agency had completed 3,430 (or
35%) of the statutorily mandated 9,721 tolerances. Despite the FY 2000
performance, the Agency expects to meet the Food Quality Protection Act
(FQPA) August 3, 2002 statutory deadline of 66% of tolerances reassessed
(6,415) and 100% assessed by August 2006. Although the actual results are
less than the targets, the Agency has already done a substantial amount of
work on many tolerances. However, the Agency cannot call the tolerances
fully reassessed because of the pending development of the Agency's
cumulative risk policy.
*ln FY 2000 EPA targeted the organophosphate pesicides (OPs) for
tolerance reassessment. Because the OPs share a common mechanism of
toxicity, a cumulative risk assessment across all of the OPs is required
before the reassessment of their tolerances is completed. This extra stage of
cumulative assessment was not needed for the tolerances reassessed in
FY 1999. The cumulative assessment requires that EPA establish a
cumulative risk policy, which has taken the Agency longer than first
anticipated. EPA now expects to issue that policy by the end of FY 2001 .
Following that the Agency will be able to complete the reassessment of all of
the OP tolerances, producing a surge of reassessments completed in
FY 2002. EPA is on schedule to meet the statutory deadline of 66% of all
tolerances reassessed by August 3, 2002.
Data Source: Same as FY 2000 APG 1 9.
Tolerance Reassessment Tracking System contains records on all 9,721
tolerances subject to reassessment from all sources. Data is extracted from
the TIS and contains the numbers of total tolerances reassessed and the
results of the reassessments (i.e., number of tolerance levels raised,
revoked, or decreased).
Data Quality: Same as FY 2000 APG 19.
1,250
121*
1,445
I
GPRA Performance
11-35
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Goal 4 FY 2000 Obligations
$271M
GOAL 4: PREVENTING POLLUTION AND
REDUCING RISK IN COMMUNITIES, HOMES,
WORKPLACES AND ECOSYSTEMS
Pollution prevention and risk management strategies aimed at cost-
effectively eliminating, reducing, or minimizing emissions and
contamination will result in cleaner and safer environments in which
all Americans can reside, work, and enjoy life. EPA will safeguard
Note: EPA FY2000 Obligations ecosystems and promote the health of natural communities that are
integral to the quality of life in this nation.
were $8,974 million
OVERVIEW
A preventive, multimedia approach, focusing on
potential risks to human health and the environment
from exposure to pesticides in homes, schools,
communities, workplaces, and the ecosystem, is central
to EPA's strategy for protecting the public and the
environment from the complex array of pollutants and
threats imposed by industrial society. Preventing
pollution before it causes harm can be cheaper and
smarter than cleaning it up afterward. Cooperative and
voluntary activities, including releasing data on the risks
posed by pesticides and industrial chemicals;
encouraging the use of safer alternative technologies,
WEST NILE VIRUS
In FY 2000 EPA addressed the potential threat to
the public from mosquito-borne viruses such as the
West Nile virus, which can cause
encephalitis. In 1999 there were more
than 60 reported cases of West Nile
encephalitis and some deaths. EPA
engaged in a broad, preemptive
communication strategy to provide
information on the risks and benefits
of pesticide applications for
mosquito control before and duringmajor outbreaks.
Communication products were targeted to the public,
states, localities, pesticide registrants, formulators,
handlers, applicators, the U.S. Department of Health
and Human Services, the U.S. Department of
Agriculture, environmental groups, and other
interested parties. EPA also ensured that states and
localities applied pesticides according to proper
application methods to protect the public from
pesticide exposure.
chemicals, and farm practices; and promoting industrial
processes that use less hazardous materials or recycle,
are a vital part of EPA's pollution prevention strategy.
In conducting these activities, EPA emphasizes
protecting children who can be more susceptible than
adults to injury from exposure to hazardous
compounds. EPA's pollution prevention efforts involve
many Agency programs, including those for pesticides,
chemical management, indoor air pollution, waste
management, and research. In addition many pollution
prevention activities require sharing responsibilities with
other federal, state, and tribal agencies, private industry,
and nonprofit organizations. EPA's efforts with these
partners have led to reduced risk in communities,
homes, workplaces, and ecosystems.
FY 2000 PERFORMANCE
Reducing Risk from Pesticides and Other
Chemicals
EPA made substantial progress during FY 2000 in
reducing the risks posed by pesticides and other
chemicals by promoting improved pesticide
management practices, implementing the lead hazard
reduction program, and gaining commitments from
industry to participate in the High Production Volume
Challenge Program.
Pesticides
EPA worked with various pesticide user groups and
other stakeholders to ensure that safer pest management
practices are used in agriculture, homes, and public
buildings (including schools). For example EPA
continued to partner with farmers, researchers, and
agribusiness to encourage the use of innovative and
economical methods for reducing pesticide risks.
5?
9
FY 2000 GPRA Performance
11-37
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•a
o
EXAMPLES OF INNOVATION IN REDUCING
PESTICIDE RISK
(These projects are described at
http://www.epa.gov/oppbppdl/PESP/.)
The Pineapple Growers Association of Hawaii is using a
new innovative injection sprayer that releases
herbicides only where they are needed. The
Association is also testing a 'living mulch" grass cover
crop that is stunted in height and out-competes other
weeds.
The Glades Crop Care, Inc. in Florida has found that
their pepper growers can spend 63 percent less money
on pest management by making fewer applications
of pesticides, applying chemicals that are much less
environmentally disruptive and by using a more
biointensive pest management program. In addition,
these same growers ended up using
43 percent less pesticides on their pepper crop.
The New York City Board of Education reduced
pesticides in their schools by 33 percent in the 2000
school year. This school year (September 2000), they
are only using boric acid and baits. The Department
avoids any and all use of pesticide products in
classrooms and other areas where students might be
exposed to potentially harmful levels of pesticides.
The Mint Industry Research Council promotes the use
of predatory mites to control spider mites and the
use of clean rootstock that will prevent the
introduction of diseased material into new fields at
the time they are being established.
In addition, EPA collaborated with Canada's Pest
Management Regulatory Agency to develop an exam
of core principles for pesticide applicators to be
incorporated into existing pesticide applicator
certification and training programs in both countries.
EPA is also working with the states and tribes to
establish a framework for better managing pesticides
that are likely to leach into groundwater.
Lead
By the end of FY 2000 EPA had authorized a total
of 38 programs (34 states, two tribes, the District of
Columbia, and Puerto Rico) to train and certify lead-
based paint abatement professionals to help ensure that
those engaged in abatement projects work to minimize
lead exposure. EPA began operating such programs in
the remaining states and three territories. EPA
implemented the Pre-renovation Notification Rule,
which requires people who perform renovation for
compensation to distribute a lead hazard information
pamphlet before starting the work. The Agency also
promulgated the Lead Hazard Rule, which establishes
uniform, national standards for lead in paint, dust, and
soil in pre-1978 housing and child-care facilities.
The High Production Volume (HPV) Challenge Program
High production volume chemicals are those that
are manufactured or imported into the U. S. in amounts
of one million pounds or more. The HPV Challenge
Program is addressing deficiencies in the public
availability of basic health and environmental hazard
data for 2,800 HPV chemicals so that scientists, policy
makers, industry, and the public can make sound
judgments about the potential risks from these
chemicals to people and the environment. The program
made progress in FY 2000 by significantly increasing
the number of companies and sponsored chemicals in
the program from last year's level. Four hundred and
sixty-nine companies have committed publicly to
making screening-level hazard data on 2,155 chemicals
available by 2005. EPA has already received some data,
which are provided on the Chemical Right to Know
web site (www.epa.gov/chemrtk).
Green Chemistry
In FY 2000 EPA advanced pollution prevention
and industrial ecology through the Green Chemistry
Challenge Awards Program, which recognizes and
supports innovative chemical processes that accomplish
pollution prevention through source reduction. In
FY 2000 EPA received 50 percent more nominations
for the awards than its target of 50 applications/
nominations. Six awards were made in five categories,
including those for designing safer chemicals, academic
contributions, and small businesses. As an example, one
award was made to Dow AgroSciences for the
development of the Sentricon™ Termite Colony
Elimination System. Each year as many as 1.5 million
homeowners in the United States experience a termite
problem and seek a control option. Sentricon™
represents a novel technology enabling an Integrated
Pest Management approach by using monitoring and
targeted delivery of a highly specific bait. It delivers
high technical performance, environmental
compatibility, and reduced human risk through the use
of very small quantities of the control agent. For
11-38
EPA's FY 2000 Annual Report
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specific information on other awards made in FY 2000,
see the Green Chemistry Home Page (www.epa.gov/
greenchemistry).
Asbestos
A 1999 consumer scare over asbestos-contaminated
vermiculite prompted EPA to undertake an analysis of
the level of asbestos in vermiculite. Vermiculite is a
product whose absorbent properties make it useful in
lawn and garden, agricultural, and horticultural
products. EPAs analysis found that consumers face only
a minimal health risk from using vermiculite products
at home or in their gardens. However, because the
analysis showed that occupational vermiculite exposure
might be higher, EPA provided the analysis to the
Occupational Safety and Health Administration
(OSHA) for further study. In FY 2000 EPA also
proposed extending the Asbestos Worker Protection
Rule issued under the authority of the Toxic Substances
Control Act. The extension is intended to extend
protection from the risks associated with asbestos
exposure to state and local government workers in 27
states not otherwise covered by OSHA asbestos
standards, or by OSHA-approved state Worker
Protection plans, as well as employees in the automotive
brake and clutch repair industry.
Endocrine Disrupters
EPA did not begin testing chemicals in commerce
for endocrine disruption in FY 2000, as was projected
in 1999. The Agency found that assay systems and high-
throughput pre-screening (HTPS) technology, which
is an automated test system capable of detecting
estrogen and androgen receptor interactions on
thousands of chemicals, were not yet sufficiently
developed for routine regulatory application for existing
and new chemicals. EPA is now focusing on developing
quantitative structure-activity relationship models to
serve the purpose HTPS would have served and
continues to monitor the progress of HTPS efforts
for endocrine disruption elsewhere in the world. EPA
was successful in initiating work on four screens,
exceeding its goal of two, while continuing work on
two screens it had initiated the previous year. The
Agency anticipates completing work on all eight Tier 1
screens (Tier 1 screens detect chemical substances
capable of interacting with the estrogen, androgen, and
thyroid hormonal systems) by the end of 2003 and the
additional five Tier 2 tests (Tier 2 tests confirm and
characterize the interaction) by the end of 2005.
Achieving Healthier Indoor Environments
In FY 2000 EPA took action to raise public
awareness about the role of triggers of asthma in
increasing the severity and frequency of asthma
episodes in indoor settings. The action was part of the
Childhood Asthma Initiative and focused particularly
on low-income children. The Ad Council, which
provides advertising campaigns for the public good,
selected EPA for a multi-year partnership through which
the Council is providing pro bono creative services to
help the Agency develop a series of public messages
about the relationship between indoor pollutants and
asthma. EPA organized three Regional Asthma Summits
for Managed Care to engage the managed care industry
in efforts to include information about indoor asthma
trigger control in their conventional medical
management plans for asthma patients. The first
National Asthma In-Home Education and Management
grants competition produced two winning pilot projects,
which received roughly $100,000 each, to demonstrate
the results of educating families with asthma sufferers
about indoor asthma triggers in their homes.
A new public service announcement encouraging
parents who normally smoke inside their homes to "go
outside for your kids" won the prestigious Silver Screen
Award for television advertising and leveraged more
than $14 million worth of donated air time. The
announcement was co-sponsored by EPA with the
PILOT FOR "BUY CLEAN"
EPA and the Western Massachusetts Coalition for
Occupational Safety and Health are testing a pilot
program called "Buy Clean" with the Chicopee School
District. "Buy Clean" schools will evaluate products
as varied as art, auto shop, and drafting classroom
supplies, landscaping and renovation products,
cleaners, chemicals used in chemistry laboratories, and
other custodial and maintenance supplies, and
purchase environmentally preferable products and
services (where appropriate) to promote healthier
indoor air in schools. Schools will consider health,
environmental, and product effectiveness
characteristics in making decisions on which products
to purchase. The project is part of a pilot grant
program to test "Buy Clean" in schools around the
country. In addition, EPA is investigating incentives
to encourage vendors to sell products that are more
environmentally preferable at competitive prices.
FY 2000 GPRA Performance
11-39
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o
Consumer Federation of America Foundation and the
American Medical Association. The radio version played
on 625 radio stations, and the print campaign ran in
281 newspapers across the nation. Environmental
tobacco smoke (ETS) exposure increases the risk of
lower respiratory tract infections such as bronchitis and
pneumonia. EPA estimates that between 150,000 and
300,000 of these cases annually in infants and children
up to 18 months of age are attributable to exposure to
ETS (EPA 1992). ETS exposure is causally associated
with increased risk of acute and chronic middle ear
disease (World Health Organization 1999). The Agency
estimates that 395,000 more children aged six and under
are now living in homes where smoking is not permitted
than in FY 1999 as a result of such education and
outreach efforts.
EPA met its goal in FY 2000 to educate the public
about the health risks of indoor radon exposure by
collaborating with states through the federal radon
grants program and working in partnership with
nongovernmental organizations such as the National
Environmental Health Association and the Consumer
Federation of America Foundation. Indoor radon
exposure causes an estimated 15,000 to 22,000 lung
cancer deaths each year. Based on sales of radon
mitigation fans, EPA estimates that as a result of various
outreach activities some 52,000 residential radon
mitigations took place in FY 2000, meaning that
approximately 138,800 more people lived in homes
where radon exposure has been reduced than last year.
Moreover, based on information collected by the
National Association of Home Builders, some 200,000
new homes were built in FY 2000 using radon-resistant
construction techniques, preventing residential exposure
to radon for 534,000 more people.
Contributing to EPA's effort to create healthier
indoor environments for children in schools, an
additional 5,000 schools in FY 2000 (representing about
2,600,000 students and staff) adopted the problem-
solving and pollution prevention approaches to school
indoor environments in the Agency's Indoor Air Quality
Tools for Schools kit.
Preventing Pollution, Reducing Waste,
and Recycling
Toxics Release Inventory (TRI)
One important measure of the nation's progress
in fostering pollution prevention is the trend in the
generation of non-recycled wastes covered by TRI.
Waste generation measures are best suited for assessing
source reduction efforts, as they are unaffected by the
application of pollution control systems (e.g., waste
treatment systems, incinerators, etc.) which reduce
environmental releases but do not reduce or prevent
generation of pollutants at their source. The generation
of non-recycled wastes by those manufacturing
industries that have been monitored over the last 8 years
under TRI declined by 15.1 million pounds from 1997
to 1998, a 0.2 percent decline. When the change between
1997 and 1998 is normalized for increases in production
by these industrial categories, the decrease represents a
4.1 percent reduction, which is more than double the
FY 2000 performance target of a two percent annual
production-normalized decline in the generation of
non-recycled TRI wastes.
Releases and Transfers of TRI Chemicals
(1995-1998) and Associated Hazard Indices
6000
5800
5600
o
in
o 5400
5200
5000
- Hazard Index (1995 = 100) |
100 99.7
103.96
5868
91.1
5631
5764
1995
1996
1997
1998
Enhanced Chemical List Included; New 1998 Reporting
Sectors Excluded
Other important measures of pollution prevention
are the trends for the volume and toxicity of direct
environmental releases and off-site transfers of
chemicals covered by TRI. Release/transfer measures,
unlike waste generation measures, are considered "end-
of-pipe" measures that capture pollution levels after
on-site pollution control or recycling/recovery
technologies have been applied to generated wastes. The
releases and off-site transfers from those manufacturing
industries and chemicals that have been monitored since
the TRI chemical reporting list was expanded in 1995
declined by 187.3 million pounds (3.2%) from 1997 to
1998. However, the toxicity of these wastes has
increased from 1995 to 1998. [The hazard index is
11-40
EPA's FY 2000 Annual Report
-------
determined by multiplying the release/transfer pounds
for a chemical by the higher of the two toxicity weights
(ingestion or inhalation) assigned to the chemical in
EPA's Risk Screening Environmental Indicators model,
and then indexing the resulting values; the index for
the value from the year 1995 is 100.] Further discussion
of the TRI Program is presented under Goal 7.
EPA's New Chemicals screening system (Pre-
Manufacture Notice (PMN) requirements) and the
Chemical Right to Know (CRtK) initiative may help to
reverse the trend of increasing waste toxicity. The PMN
process prevents manufacture of new chemicals
determined to pose unreasonable human health or
environmental risks. The Agency expects the CRtK
Initiative, begun in FY 2000, to encourage industry to
replace dangerous chemicals already in use by making
hazard information publicly available by 2005 for nearly
2,155 HPV chemicals.
Design for the Environment Program (DfE)
DfE continues to work with private sector partners
to advance cleaner technologies. In 2000 EPA's effort
helped achieve a cumulative 36 percent increase in the
use of alternative cleaning technologies by the garment
care industry over 1998 levels. Under the program, 14
safer cleaning products have been developed and
marketed, including redesigned products that do not
contain alkyl phenol ethoxylates (suspected endocrine
disrupters). The foam furniture industry is investigating
alternatives to the use of methylene chloride, a
hazardous air pollutant for which OSFIA has restricted
use in foam adhesive applications. The dry cleaning
industry has significantly reduced its use of
perchloroethylene, which EPA has characterized as a
probable human carcinogen.
Persistent Bioaccumuktive and Toxic (PBT) Initiative
The PBT Initiative seeks to reduce the use of
priority PBT pollutants and their presence in the
environment. In FY 2000 EPA released four National
Action Plans for public comment. These plans address
ongoing and planned reduction activities for
Hexachlorobenzene; alkyl-lead; Octachlorostyrene; and
a group of five canceled pesticides (Aldrin/Dieldrin,
Chlordane, dichlorodiphenyltrichloroethane (DDT),
Mirex, and Toxaphene). Additional efforts included
finalizing the Mercury Action Plan, expanding the
collection of monitoring data on PBTs in fish and in
humans, funding 12 new state and regional reduction
projects, evaluating more than 200 additional substances
Fish and Wildlife Advisories by Type,
1993 -1999
3000
2500
Ł 2000
o
-------
•a
o
Plan; however, the advisory data indicate that much
work needs to be done to ensure that those individuals
who consume fish and wildlife in large quantities are
protected from toxics in their food. Additional
information pertaining to the advisories is found in
Goal 2.
Recycling of Municipal Solid Waste
Recycling of municipal solid waste (MSW) has
continued to increase, and the diversion of more MSW
from landfilling and combustion to recycling is higher
than ever before. In 1998, the most recent year for which
data are available, 28.2 percent of MSW was recycled,
an increase of 0.8 percent from 1997. This figure means
that more than 62 million tons of recyclables were
diverted from disposal in 1998 alone. The increase
bodes well for attainment of EPA's FY 2000 target
(reflecting 1999 recycling) of 29 percent (64 million
tons). Compared to the previous year, MSW generation
increased in 1998 by 4 million tons, reaching a level of
220 million tons. Per capita generation remained stable
at 4.4 pounds per day, slightly higher than the Agency's
goal of 4.3 pounds per day.
Preventing Pollution on Tribal Lands
An accurate assessment of current environmental
conditions is critical to addressing environmental issues
in Indian Country. In FY 2000 EPA collected basic
environmental data for six percent of Indian Country,
for a cumulative total of 16 percent. In a complementary
effort, EPA regional offices are working with tribes to
help implement environmental programs in Indian
Country. In FY 2000,16 tribes assumed EPA program
responsibilities, exceeding the Agency's goal of 12 tribes.
The total number of EPA programs operated by tribes
is now 270. Also, by the end of FY 2000, 49 tribes had
signed Tribal Environmental Agreements, which
identify tribe-specific environmental priorities to
address multimedia environmental concerns in Indian
Country.
SUMMARY OF FY 2000 PERFORMANCE
EPA and its partners made substantial progress
toward achieving Goal 4 and its objectives. By the end
of FY 2000 EPA had authorized 38 states, tribes, or
territories to train and certify lead-based paint
abatement professionals to help ensure that those
engaged in abatement projects work to minimize lead
exposure. Of particular importance were the 469
companies that have committed to make screening-level
hazard data available publicly on 2,155 HPV chemicals
by 2005. Also in FY 2000, EPA's efforts helped to
achieve a cumulative 36 percent increase in the use of
alternative cleaning technologies by the garment care
industry over 1998 levels. Finally EPA released four
National Action Plans that address ongoing and planned
reduction activities for five canceled pesticides as part
of the initiative to reduce the use and presence of
priority PBT pollutants in the environment.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
In response to a continuing concern that the Agency
needs to strengthen oversight provided for tribal grants
(in particular, grants made with General Assistance
Program funds), EPA assigned additional staff,
developed improved guidance, and provided additional
training to its grants management staff in FY 2000.
Limitations that prevent the use of General Assistance
funds for implementing environmental programs have
been a barrier to tribes' assumption of programs and
willingness to enter into substantive agreements.
RESEARCH CONTRIBUTIONS
Research supports Goal 4 in the development or
improvement of test guidelines for human health and
ecological endpoints of regulatory concern under the
Federal Insecticide, Fungicide, and Rodenticide Act and
the Toxic Substances Control Act. In FY 2000 EPA
developed a model to assess the susceptibility of infants'
and children's developing immune systems to
environmental contaminants. It will be an important
tool for evaluating the impact of environmental
stressors on human health and ecological endpoints.
Understanding how environmental contaminants affect
developing immune systems is particularly important
because infants and children appear to be at greater
risk than adults of experiencing adverse reactions when
exposed to toxic substances.
PROGRAM EVALUATION
The General Accounting Office (GAO) recently
assessed the impact and effectiveness of several EPA
activities dealingwith children's health. In its November
11-42
EPA's FY 2000 Annual Report
-------
1999 report, Pesticides: Use, Effects and Alternatives to
Pesticides in Schools (RCED-00-17, http://www.gao.gov),
GAO noted that although there is no comprehensive,
nationwide information on the amount of pesticides
used in schools, the Agency is considering conducting
a survey on the use of pesticides in schools. GAO also
determined that information is limited regarding short-
and long-term illnesses related to pesticide exposure in
all settings; however, EPA and the National Institutes
of Health have initiated several studies to identify
illnesses linked to pesticide exposure. To address
potential exposure of children to pesticides, the Agency
and the states have initiatives to encourage reduced use
of pesticides in schools through Integrated Pest
Management and the Pesticide Environmental
Stewardship Program, as well as the use of reduced-
risk pesticides.
GAO also assessed the implementation of the
Worker Protection Standards and how well the Worker
Protection Program protects children who might be
exposed to pesticides in agricultural settings. GAO made
several recommendations regarding worker protection
in its report Pesticides: Improvements Needed to Ensure the
Safety of 'Farmworkers and Their Children (RCED-00-40).
EPA generally agrees that the recommendations are
sound and intends to consider them during the
assessment of the Worker Protection Program in
FY2001.
In FY 2000 EPA began the National Assessment
of the Worker Protection Standard for pesticides. The
assessment, a multi-phase process that will take place
over the next 18 to 24 months, will help the Agency
determine whether the Worker Protection Standard
program is adequately meeting its intended goals of
addressing the risks to agricultural workers. The initial
public participation meeting was held in June 2000 in
Austin, Texas. As a result of that meeting, a number of
assessment themes or topic areas were identified for
further consideration, including training, enforcement,
complaint and retaliation, children's health, and
communication.
EPA continued its evaluation of the certification
and training program for pesticide applicators, which
started in 1997 with the formation of the joint EPA-
U.S. Department of Agriculture Certification and
Training Assessment Group (CTAG). In FY 2000 states
indicated the need for using a professional exam
development process to improve their ability to
determine the competency of pesticide applicators.
CTAG's work is leading to improvement in pesticide
applicator exams, establishment of a pesticide safety
education center for training educators and regulators,
and development of a national core pesticide applicator
certification exam for use by state regulators. Improving
the certification and training program addresses risk at
the source (pesticide applications).
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
EPA has reflected FY 2000 performance and
advances in program measurement in its FY 2001
annual performance goals (APGs) and targets. The
performance measure for environmental stewardship
strategies (ESP) in the prevention of harmful pesticide
exposure has been significantly increased for FY 2001,
based on greater than expected performance in
FY 2000. The program had revised the format and
requirements for completing ESP strategies, which
streamlined and accelerated the submissions and review
processes. The FY 2001 APG for safer alternative
cleaning technologies has been reworded to include a
new measure, perchloroethylene reduction, which is a
more reliable indicator of progress toward the APG
than the percentage increase in the use of alternative
cleaning technologies, the FY 2000 measure. In addition
EPA is discontinuing its performance measure for tribal
environmental agreements (TEAs) while it redefines
the TEA process.
TABLE OF RESULTS
The following table of results includes performance
results for the nine FY 2000 APGs that appear in Goal
4. In cases where the FY 2000 APG is associated with
an FY 1999 APG, the table includes the FY 1999 APG
below the FY 2000 APG for ease in comparing
performance.
FY 2000 GPRA Performance
11-43
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance |
4' I Goals Pol Goals Pol
IMI»> Ł- M«t ««„• V
GOAL 4 - PREVENTING POLLUTION AND REDUCING
RISK IN COMMUNITIES, HOMES, WORKPLACES,
AND ECOSYSTEMS
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
BY 2005, PUBLIC AND ECOSYSTEM RISK FROM PESTICIDES WILL BE REDUCED THROUGH MIGRATION TO
LOWER RISK PESTICIDES AND PEST MANAGEMENT PRACTICES, IMPROVING EDUCATION OF THE PUBLIC
AND AT-RISK WORKERS, AND FORMING 'PESTICIDE ENVIRONMENTAL STEWARDSHIP"PARTNERSHIPS
WITH PESTICIDE USER GROUPS.
1
FY 2000 APG 21: Protect homes, communities, and workplaces from harmful exposure to
pesticides and related pollutants through improved cultural practices
and enhanced public education, resulting in a reduction (to be
determined) in the incidence of pesticide poisonings reported
nationwide.
(FY 1999) Protect homes, communities, and workplaces from harmful exposure to
pesticides and related pollutants through improved cultural practices and
enhanced public education, resulting in a reduction of 15% cumulative (1994
reporting base) in the incidence of pesticide poisonings reported nationwide.
Performance Measures
- Environmental Stewardship Strategies.
- Manage pesticides with high probability to leach/persist in groundwater.
- Labor population will be adequately trained (cumulative)*.
Explanation: Goal not met. Data now available do not allow a reliable estimate of the
magnitude or trend in the national incidence of pesticide poisonings. Through
the Chemical and Pesticide Results Measures project, which involves EPA,
state, and industry stakeholders, EPA is developing an accurate reporting
measure for pesticide poisonings, among other environmental indicators. EPA
expects to develop this measure in FY 2002. The Pesticide and Groundwater
State Management Plan Rule was delayed in regulatory review, which
prevented the Agency from meeting its goal. It is unclear at this time when
the rule will move forward, if at all. In spite of the delay in finalizing the rule,
the Agency is on track to meet its long-term goal, which is to manage the risk
of pesticides in groundwater. The Agency has refocused this performance
measure in FY 2001 on significant pesticide management actions taken by
EPA on the specific pesticides that are likely to leach and persist in
groundwater. '[Note: The FY 2001 President's Budget incorrectly
characterized the target for the performance measure "labor population will
be adequately trained" as a cumulative percentage instead of an annual
percentage. Therefore the FY 2000 achievement is 50% of the labor
population trained.]
Data Source: Aggregation of training statistics from state cooperative extension services
and Worker Protection Program. State Cooperative Extension Services
represent the education and training arm of State Agriculture Departments
that extend training programs to counties.
Data Quality: Training statistics are dependent on accurate record keeping at state or
county level.
•a
o
71
10%
50%
109
0%
50%
69
0%
48%
11-44
EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
BY 2005, THE NUMBER OF YOUNG CHILDREN WITH HIGH LEVELS OF LEAD IN THEIR BLOOD WILL BE
SIGNIFICANTLY REDUCED FROMTHE EARLY 1990'S.
FY 2000 APG 22: Administer federal programs and oversee state implementation of
programs for lead-based paint abatement certification and training in
50 states, to reduce exposure to lead-based paint and ensure
significant decreases in children's blood levels by 2005.
(FY 1999) Complete the building of a lead-based paint abatement certification and
training in 50 states, to ensure significant decreases in children's blood lead
levels by 2005 through reduced exposure to lead-based paint.
Explanation: Through FY 2000 EPA continued building the lead-based abatement training
and certification program. Programs for the training, accreditation and
certification of lead-based paint abatement professionals were established in
38 programs (34 states, two tribes, the District of Columbia, and Puerto
Rico). For 19 states that have chosen not to seek approval of a state
program, a federal training, accreditation and certification program was
established. Additional legal requirements for the tribes have delayed
development of two of the four programs planned for FY 2000. EPA activities
to reduce exposure to lead-based paint are on track to ensure significant
decreases in children's blood levels by 2005.
Data Source: Data on blood lead levels in children are from the National Health and
Nutrition Examination Surveys conducted by the Centers for Disease Control
and Prevention. Annual surveys started in 1999.
Data Quality: Data quality issues are related to survey sampling bias and changes in
survey questions from survey to survey.
Target
year is
FY 2005
Target
year is
FY 2005
BY 2005, OF THE APPROXIMATELY 2,000 CHEMICALS AND 40 GENETICALLY ENGINEERED
MICROORGANISMS EXPECTEDTO ENTER COMMERCE EACH YEAR, WE WILL SIGNIFICANTLY INCREASE THE
INTRODUCTION BY INDUSTRY OF SAFER OR 'GREENER"CHEMICALS WHICH WILL DECREASE THE NEED
FOR REGULATORY MANAGEMENT BY EPA.
FY 2000 APG 23: Ensure that of the up to 1,800 new chemicals and microorganisms
submitted by industry each year, those that are introduced in commerce
are safe to humans and the environment for their intended uses.
(FY 1999) Ensure that of the approximately 1,800 new chemicals and micro-organisms
submitted by industry each year, those that are introduced in commerce are
safe to humans and the environment for their intended uses.
Explanation: Goal met.
Data Source: The New Chemicals Management Information Tracking System tracks
requests submitted by industries for review of new chemicals. The requests
include information on chemicals to be manufactured and imported,
chemical identity, manufacturing process, use, worker exposure,
environmental releases, and disposal.
Data Quality: EPA reviews industry data and performs risk screening and assessments.
1,800
1,838
1,717
FY 2000 APG 24: Provide methods and models to evaluate the impact of environmental
stressors on human health and ecological endpoints for use in
guidelines, assessments, and strategies.
Performance Measure
- Develop an animal model to assess susceptibility of the developing immune system to
environmental contaminants.
Explanation: Goal met. A model to assess the susceptibility of the developing immune
system to environmental contaminants was produced. The model is an
important tool for evaluating the impact of environmental stressors on human
health and ecological endpoints.
No
FY 1999
APG
a
d§
&
GPRA Performance
11-45
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Data Source: Agency generated material.
Data Quality: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work
products used in Agency decision making are independently peer reviewed
before their use. EPA has implemented a rigorous process of peer review for
both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry, and other federal
agencies.
FY 2000
Planned
Actual
FY 1999
Actual
BY 2005, 15 MILLION MORE AMERICANS WILL LIVE OR WORK IN HOMES, SCHOOLS, OR OFFICE BUILDINGS
WITH HEALTHIER INDOOR AIR THAN IN 1994.
FY 2000 APG 25: 890,000 additional people will be living in healthier residential indoor
environments.
(FY 1999) 700,000 additional people will live in healthier residential indoor
environments.
Explanation: FY 2000: Goal met. In FY 2000 there were 1,032,000 additional people living
in healthier residential indoor environments. The target was exceeded
because EPA's outreach efforts with builders to construct radon-resistant
homes and outreach to the general public to mitigate radon were more
effective than originally anticipated.
FY 1999: Goal met. Based on information received in FY 2000, EPA
exceeded its FY 1999 targets. In FY 1999 the results were higher (than the
planned target of 700,000) because outreach efforts were also more effective
than anticipated.
Data Source: The National Association of Home Builders and the radon industry provide
data on number of radon resistant homes built. The number of homes
mitigated for high radon levels is obtained through voluntary industry
reporting. The Centers for Disease Control provide data on the number of
children under 6 years old not exposed to environmental tobacco smoke in
the home.
Data Quality: Each of the data sources described above provides a reasonable estimate of
public action on EPA activities.
FY 2000 APG 26: 2,580,000 students, faculty and staff will experience improved indoor air
quality in their schools.
Explanation: Goal met. An additional 5,000 schools (representing about 2.6 million
students, faculty and staff) adopted the Agency's Air Quality Tools for
Schools kit.
Data Source: EPA's Indoor Air Quality Tools for Schools Program is using a database to
track the number of schools that receive the Tools for Schools kit and the
number of schools implementing good indoor air quality practices consistent
with EPA guidance.
Data Quality: Data on actions taken are voluntarily self-reported by school personnel which
may limit accuracy. Interpretation of EPA's guidance may also vary among
schools, which affects what the schools report.
890,000
2,580,000
1,032,000
2,600,000
1,322,000
No
FY 1999
APG
BY 2005, REDUCE BY 25% (FROM 1992 LEVEL) THE QUANTITY OF TOXIC POLLUTANTS RELEASED, DISPOSED
OFJREATED, OR COMBUSTED FOR ENERGY RECOVERY. HALF OFTHIS REDUCTION WILL BE ACHIEVED
THROUGH POLLUTION PREVENTION PRACTICES.
FY 2000 APG 27: The quantity of Toxic Release Inventory (TRI) pollutants released,
disposed of, treated or combusted for energy recovery, (normalized for
changes in industrial production) will be reduced by 200 millions
pounds, or 2%, from 1999 reporting levels.
200 M Ibs
Data
available
in
FY 2002
1
•a
o
11-46
EPA's FY2000 Annual Report
-------
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
(FY 1999) The quantity of Toxic Release Inventory pollutants released, treated, or
combusted for energy recovery will be reduced by 200 million pounds, or 2%
from 1998 reporting levels.
Explanation: FY 2000 data will not be available until 2002 due to time lags associated with
reporting and analysis. The most recent data available show the generation of
non-recycled wastes by those manufacturing industries that have been
monitored over the lasts years under TRI declined by 15.1 million pounds
from 1997 to 1998, a 0.2% decline. When the change between 1997 and
1998 is normalized for increases in production by these industrial categories,
the decrease represents a 4.1% reduction. Greater use of pollution
prevention tools and techniques have lead to the continued trend of reduction
in waste generation.
Data Source: Facilities reporting under TRI. For example, in FY 1997, 21,490 facilities filed
71,670 TRI reports. EPA is developing regulations for improving reporting of
source reduction activities by TRI reporting facilities.
Data Quality: A recent General Accounting Office (GAO) report reviewed EPA's progress to
implement source reduction reporting requirements, results of voluntary
program to reduce emissions of 17 highly toxic chemicals, and activities to
disseminate source reduction information to meet state and industry needs.
Facilities reporting under TRI are identified by regulation and are a narrower
category of facilities. TRI release data covers only a fraction of the total
release. [Toxic Substances: EPA Needs More Reliable Source Reduction
Data and Progress Measures (09/23/94, GAO/RCED-94-93)].
FY 2000
Planned
Actual
FY 1999
Actual
Data
available
in
FY 2001
BY 2005, EPA AND ITS PARTNERS WILL INCREASE RECYCLING AND DECREASE THE QUANTITY AND
TOXICITY OF WASTE GENERATED.
FY 2000 APG 28: Divert an additional 1% (for a cumulative total of 29% or 64 million tons)
of municipal solid waste from land filling and combustion, and maintain
per capita generation of RCRA municipal solid waste at 4.3 pounds per
day.
(FY 1999) Maintain levels (for a cumulative total of 28% or 62 million tons) of municipal
solid waste diverted from land filing and combustion, and maintain per capita
generation of RCRA municipal solid waste at 4.3 pounds per day.
Explanation: Analysis of FY 1999 data is anticipated by September 2001 .
Data Source: The baseline numbers for municipal solid waste (MSW) source reduction and
recycling found in an EPA report titled "Characterization of Municipal Solid
Waste in the United States" are developed using a materials flow
methodology employing data largely from the Department of Commerce.
Data Quality: The report, including the baseline numbers and current progress, is widely
accepted among experts. Data limitations stem from the fact that the baseline
and annual progress numbers are based on a series of models, assumptions,
and extrapolations, and as such, are not an empirical accounting of MSW
generated or recycled.
64 (29%)
4.3 Ib
Data
available
in
FY 2002
Data
available
in
FY 2001
BY 2003, 60% OF INDIAN COUNTRY WILL BE ASSESSED FOR ITS ENVIRONMENTAL CONDITION, AND TRIBES
AND EPA WILL BE IMPLEMENTING PLANS TO ADDRESS PRIORITY ISSUES.
FY 2000 APG 29: 16% of tribal environmental baseline information will be collected and
12 additional tribes (cumulative total of 57) will have tribal/EPA
environmental agreements or identified environmental priorities.
(FY 1999) 10% of tribal environmental baseline information will be collected and ten
additional tribes (cumulative total of 45) will have tribal/EPA environmental
agreements or identified environmental priorities.
16%
12
16%
4
10%
11
a
d§
&
GPRA Performance
11-47
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Explanation: Goal not met. The Agency met its goal of collecting a 6% of tribal baseline
information by enabling a pilot demonstration model to access and display
tribal information from 1 1 EPA databases and seven internal data collection
surveys containing environmental information. However, only four of the
projected 12 EPA/Tibal Environmental Agreements (TEAs) were signed.
During FY 2000 the Agency clarified its definition of TEAs to provide
consistency across the program. Only four TEAs met the clarified definition to
count as FY 2000 achievements. While the target for TEAs was not met in
FY 2000, the work done to clarify the elements of a TEA and to assure
consistency across the nation will lead to more accurate and consistent
reporting in 2001 and beyond.
Data Source: Data are collected from EPA National Data bases in Envirofacts and regional
records on grant programs. Tribal office records on tribal and federally funded
data collection and other assessment activities are also important sources.
As needed, data are also sought from state records.
Data Quality: EPA reviews and analyzes the data limitations and gaps. For example it is
expected that some parts of the environment are more thoroughly studied
than others and some areas have more complete data than others. EPA in
cooperation with the tribes determines the appropriate follow-up activities to
address data inadequacies and gaps through contracting resources, grant
work plans, and environmental program negotiations.
FY 2000
Planned
Actual
FY 1999
Actual
1
•a
o
11-48
EPA's FY2000 Annual Report
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Goal 5 FY 2000 obligations GOAL 5: BETTER WASTE MANAGEMENT,
RESTORATION OF CONTAMINATED WASTE SITES,
AND EMERGENCY RESPONSE
America's wastes will be stored, treated, and disposed of in ways that
prevent harm to people and the natural environment. EPA will work to
clean up previously polluted sites, restore them to uses appropriate
Note: EPA FY 2000 Obligations f°r surrounding communities, and respond to and prevent
waste-related or industrial accidents.
were $8,974 million
OVERVIEW
Improper waste management and disposal threatens
human health and the environment. Uncontrolled
hazardous and toxic substances, including radioactive
waste, migrate to the air, groundwater, and surface water,
contaminating drinking water supplies for communities
located miles from a waste site and potentially causing
acute illnesses or chronic diseases. Hazardous and toxic
substances present unique health threats to sensitive
populations, such as children, senior citizens, and tribal
communities that follow subsistence lifestyles. They can
also significantly damage sensitive ecosystems. To protect
against these risks, EPA has developed and implemented
policies to clean up contamination at active and inactive
waste disposal and management sites; promote safe waste
storage, treatment, and disposal; and prevent spills and
releases of hazardous and toxic materials. These policies
are implemented through a number of EPA programs,
usually conducted under the provisions of
the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA or
Superfund) and the Resource Conservation and Recovery
Act (RCRA). Goal 5 is on track to meet or exceed
objectives outlined in the strategic plan.
FY 2000 PERFORMANCE
Ensuring Progress Through Effective and
Efficient Cleanups
Superfund
EPA and its state and tribal partners use Superfund
resources to provide emergency response to hazardous
substance releases and to clean up inactive hazardous
waste disposal sites. The Superfund process is often a
multistage and multiyear effort that begins with a
preliminary assessment or site inspection to determine
the actions needed to address threats at a site (including
emergency removal actions) and moves through
postconstruction activities, such as 5-year reviews, to
ensure that remedies remain protective as site
conditions, risk science, or cleanup technologies evolve.
Considerable progress has been made in the program
since EPA announced a third round of administrative
reforms in 1995.
As a measure of achieving progress in hazardous
waste cleanups, EPA has selected construction
completion, the point at which a cleanup remedy is in
place. During FY 2000, 87 Superfund sites reached
construction completion, exceeding the Agency's goal
of 85 sites, for a total of 757 sites over the life of the
program on track with the long-term goal of achieving
900 construction completions by the end of FY 2002.
The location and other information about these sites
can be found at http://www.epa.gov/superfund/
sites/query. More than 92 percent of the sites on the
National Priorities List (NPL) are either undergoing
cleanup construction or cleanup has been completed.
Other Superfund Program accomplishments in
FY 2000 included 468 final site assessment decisions
to determine the level of threat at waste sites, for a
total of 36,152 over the life of the program. The
program also conducted 357 removal response actions,
including 208 time-critical responses to emergencies
such as chemical fires and train derailments that are
imminent and substantial threats to human health and
the environment, for a total of 6,286 removal response
actions over the life of the program. More than 1,200
NPL sites now have all final cleanup plans approved.
Since 1982 the program has cleaned up more than
467 million cubic yards of contaminated solids and
sediments and has treated more than 352 billion gallons
FY 2000 GPRA Performance
11-49
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September 1999
EPA ANNOUNCES 750™
CONSTRUCTION COMPLETION
On September 6, 2000, EPA completed
construction at the Pepe Field site in Boonton, New
Jersey, marking the 750th National Priorities List
Superfund site in the country to reach the
construction completion milestone since the
program began in 1980. Senator Frank Lautenberg,
Representative Rodney Frelinghuysen and others
celebrated the successful cleanup of toxic gas-
producing wastes and the restoration and re-
opening of a community park and little league ball
field.
The three-acre park, located in a suburban area of
90,000 residents, was closed after EPA named Pepe
Field a federal Superfund site in 1982. The property
was used from the 1920s to the 1950s as a landfill
for wastes from the manufacture of edible oils and
cleaning products for household and industrial use.
EPA performed extensive reevaluation of the
containment remedy and, in 1997, changed the long-
term cleanup plan, calling for the excavation of
85,000 tons of waste and the removal to an off-site
disposal facility.
O
of liquid-based waste and contaminated water. The
program has also supplied at least 356,000 people
residing at or near Superfund sites with alternative water
supplies to protect them from contaminated ground-
water and surface water.
Following completion of cleanup activities and the
determination that the property no longer poses a threat
to human health or the environment, a site is removed
from the NPL. EPA removed 19 sites from the NPL in
FY 2000, for a total of 220 sites over the life of the
program.
An important element of managing the Superfund
Program is ensuring that questions of liability are settled
quickly and that Potentially Responsible Parties (PRPs)
pay their fair share of cleanup costs. In FY 2000 PRPs
initiated more than 68 percent of new long-term
cleanup actions at non-federal facility NPL sites, slightly
less than the 70 percent annual goal. Over the past
3 years, however, private parties initiated approximately
74 percent of the new long-term cleanup actions. In
FY 2000 EPA secured private party commitments for
cleanup and cost recovery valued in excess of
$1.4 billion (over $1.3 billion for future cleanup and
$145 million for recovery of EPAs past costs). Total
private party commitments for cleanup and cost
recovery since the inception of the program are valued
at more than $18 billion (over $14.9 billion for cleanup
and more than $3.1 billion for recovery of EPAs past
costs), resulting in nearly $7 in private party
Over $18 Billion in PRP Commitments for
Cleanup and Cost Recovery Since 1980
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
11-50
EPA's FY 2000 Annual Report
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commitments for cleanup and cost recovery for every
$1 spent on Superfund enforcement. These
accomplishments of the Superfund Enforcement
Program preserve the Superfund Trust Fund, which
can be used for other Superfund cleanups.
To ensure that EPA's enforcement efforts are
effective and at the same time fair, the Agency
recognizes that some PRPs might have contributed very
small amounts of waste to a site or that some parties
who contributed waste to the site are now insolvent or
defunct, commonly referred to as "orphan" parties. For
fairness EPA is willing to enter into de minimis
settlements with such PRPs or offer to compensate
settling parties for the liability associated with orphan
parties. In FY 2000 the Agency entered into 18 de minimis
settlements with more than 1,000 parties. To date EPA
has entered into more than 460 de minimis settlements
to resolve the potential liability of over 22,800 parties.
As an incentive for PRPs to conduct cleanup or pay for
cost recovery, EPA may make "orphan share offers" to
compensate for cleanup costs attributed to non-viable
parties. In FY 2000 the Agency made seven offers to
compensate settling parties for orphan shares, valued
at over $7.8 million, at eligible sites where EPA was
negotiating for future response work, meeting its goal.
EPA also made an additional 13 orphan share
compensation offers, valued at over $11.2 million,
during cost-recovery negotiations. During the past 5
fiscal years (FY 1996-2000), EPA has offered more than
$194 million in orphan share compensation at 118 sites.
EPA is also responsible for recovering costs in cases
where the Agency and others have already taken action
to clean up sites. EPA's intention is to address all those
cases approaching statute of limitations deadlines with
outstanding past cleanup costs in excess of $200,000
each year. In FY 2000 EPA addressed all but two of
these statute of limitations cases prior to expiration of
the statute of limitations by negotiating settlements,
referring cases to the Department of Justice for
litigation, or making a decision not to pursue cost
recovery when no viable PRP could be located. EPA
has made a decision to write off the costs associated
with these two cases, and the documentation will be
made final during the second quarter of FY 2001.
RCRA Corrective Action
The RCRA Corrective Action Program cleans up
contamination at active industrial facilities, a universe
of more than 3,500 facilities across the country. The
most serious pollution problems at RCRA-regulated
facilities occur when hazardous waste releases migrate
off-site, contaminating public and private drinking water
supplies and endangering wetlands and other sensitive
ecosystems. On-site worker exposure is also a serious
concern of this program. As a means of addressing
the most critical problems first, EPA and its state
partners have established a list of more than 1,700 high-
priority facilities that require corrective action. In
addition EPA has established environmental indicators
for the control of toxic groundwater releases and
human exposures to measure intermediate progress at
RCRA sites in environmental terms rather than
administrative steps.
In FY 2000 EPA's Corrective Action Program
documented that human exposure to contamination is
under control at an additional 191 of the high-priority
facilities and that migration of contaminated
groundwater is under control at an additional 168
facilities. Over the life of the program, EPA and its
state partners have documented that human exposures
have been controlled at a total of 642 facilities and that
migration of contaminated groundwater has been
controlled at a total of 565 facilities. Although
cumulative facility totals remain ahead of the long- term
goals projected for the program in 1998, several sites
that had previously been recorded as meeting the
environmental indicators in 1999 had their
determinations reversed because of new data provided
by authorized states. These included 26 sites previously
recorded for human exposures controlled and 43 sites
previously recorded for groundwater releases
controlled. For additional information on the Corrective
Action Program accomplishments, visit the EPA web
site, http://www.epa.gov/epaoswer/hazwaste/ca/
index.htm.
Leaking Underground Storage Tank Cleanups
EPA's Leaking Underground Storage Tank Program
promotes and implements rapid and effective responses
to underground storage tank (UST) releases. In FY 2000
this program assisted states, tribes, and the regulated
community in completing 20,834 cleanups, for a
cumulative total of 249,760 cleanups since 1987.
Two initiatives were developed in FY 2000 to
increase the effectiveness and efficiency of future
cleanup work. USTfields for Abandoned Tanks was
designed to promote assessment and cleanup of
abandoned or closed USTs located on Brownfields
I
FY 2000 GPRA Performance
11-51
-------
National UST Corrective Action Activity
Cumulative Over Time From FY 1991 - FY 2000
450000
400000
350000
!g 300000
™ 250000
o
J> 200000
I 150000
z
100000
50000
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
• Cleanups Completed —•— Cleanups Initiated
Confirmed Releases
has exceeded its goals for the year. Through
the third quarter of FY 2000, the
Brownfields Program worked successfully
in partnership with states, tribes, local
communities, and other stakeholders to
leverage a total of $2.8 billion of private
funds for cleanup and redevelopment,
generate more than 7,400 new jobs
benefitting disadvantaged communities,
and fund more than 2,000 assessments of
potentially contaminated sites.
Preventing Risk Through a Safe
Waste Management and Response
Infrastructure
RCRA Permitting
s
&
properties. The Faster Cleanups initiative was created
to increase the pace of cleanups as a means of
addressing the backlog of 160,000 identified releases
yet to be cleaned up. Implementation of both initiatives
will begin in FY 2001.
Brownfields
EPA's Brownfields Program promotes the
assessment, cleanup, and sustainable reuse of
abandoned or underutilized industrial and commercial
properties, which are present in nearly every community
in the nation. Although final Brownfields data for
FY 2000 are not expected until April 2001, analysis
through the third quarter demonstrates that the program
NATIONAL RECOGNITION FOR BROWNFIELDS
In FY 2000 the Brownfields Program was named one
of ten recipients of the Innovations in Government
Award granted by Harvard University's John F.
Kennedy School of Government, the Ford
Foundation, and the Council for Excellence in
Government. The award honors innovative
approaches to addressing important public challenges.
The Brownfields Program was selected from a pool
of 1,300 applicants. In addition, the program was
honored in FY 2000 as a recipient of the National
Partnership for Reinventing Government Hammer
Award for innovations in government.
The RCRA Permitting Program
establishes a "cradle-to-grave" framework
that identifies a set of controls facilities should have in
place to ensure the safe management of hazardous
waste. During FY 2000 an additional 308 hazardous
waste management facilities received permits or other
approved controls to verify protection against
dangerous releases to air, soil, and groundwater. Permits
or other approved controls can include operating
permits, verified clean closures, and postclosure permits.
The RCRA Program also successfully implemented
new tools for management of environmental
information to support federal and state programs in
FY 2000. RCRAInfo is EPA's comprehensive
information system, replacing the data recording and
reporting abilities of the Resource Conservation and
Recovery Information System and the Biennial
Reporting System. The RCRAInfo system allows for
tracking of information on the regulated universe of
RCRA hazardous waste handlers, and characterization
of facility status, regulated activities, and compliance
histories. The system also captures detailed data on the
generation of hazardous waste from large quantity
generators and on waste management practices from
treatment, storage, and disposal facilities. RCRAInfo is
web-accessible, providing a convenient user interface
for federal, state and local managers. It encourages
development of in-house expertise to control cost and
incorporates use of off-the-shelf software for collection
of Biennial Report data.
11-52
EPA's FY 2000 Annual Report
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Oil Spill Prevention. Control and Countermeasure
Compliance
To address the more than 20,000 oil spills reported
to the federal government each year, EPA's Oil Spill
Program works to ensure compliance with the Spill
Prevention, Control and Countermeasures (SPCC)
requirements. In FY 2000, 678 additional oil storage
facilities came into compliance with the SPCC
requirements, meaning that EPA significantly exceeded
its goal of bringing 400 additional facilities into
compliance.
Underground Storage Tank Standards Compliance
The focus of the UST Program is to increase the
number of tank owners and operators in compliance
with EPA and state requirements for leak detection, as
well as the 1998 federal requirements to meet new tank
standards; upgrade tanks with spill, overfill, and
corrosion protection; or close substandard tanks
properly. EPA estimates that in FY 2000 about
86 percent of the 714,000 active tanks were in
compliance with the spill, overfill, and corrosion
protection requirements also known as the tank upgrade
requirements, and approximately 65 percent were in
compliance with leak detection requirements. In
addition, 82,500 substandard USTs were properly and
permanently closed in FY 2000, bringing the total
number of permanently closed tanks to 1,460,000.
Two initiatives were developed in FY 2000 to
support UST compliance programs: one addresses
improving operational compliance with established
requirements; the other assesses whether UST
regulations and systems are working and determines
what changes or other reforms may be necessary.
Implementation of both projects will begin in FY 2001.
Risk Management Planning
Industrial accidents and other disasters involving
toxic chemicals and other hazardous substances are a
constant threat to human health and the environment.
In FY 2000, 917 facilities submitted Risk Management
Plans (RMPs) detailing contingencies, emergency
response procedures, hazardous substance inventories,
and disaster response scenarios, for a total of 15,069
plans submitted. EPA granted three states authority to
manage RMP programs, for a total of ten states. In
response to concerns regarding public access to RMP
information, the Chemical Safety Information, Site
Security and Fuels Regulatory Relief Act of 1999
required assessment of both the chemical risk reduction
benefits from allowing public access to off-site
consequence analysis information and the increased risk
of terrorist and other criminal activity from posting
the information on the Internet. Based on assessments
conducted by EPA and the Department of Justice, a
final rule was promulgated in FY 2000 allowing public
access to the off-site consequence analysis portions of
the RMP in ways that minimize the likelihood of
chemical accidents and the risk of terrorist or criminal
activity associated with Internet posting.
Radioactive Waste Management
To ensure protection from potential exposure to
radioactive waste, EPA conducts oversight, including
periodic inspections, to verify continued compliance
with radioactive waste disposal standards. In FY 2000
EPA certified that 1,760 55-gallon drums of radioactive
waste shipped by the Department of Energy to the
Waste Isolation Pilot Plant were permanently disposed
of safely and according to EPA standards, for a total
of 3,000 drums now in storage.
SUMMARY OF FY 2000 PERFORMANCE
EPA has made significant progress toward meeting
the Goal 5 objectives through its FY 2000 performance
for waste programs, as demonstrated by the
accomplishments in cleaning up previously polluted
sites through the Superfund, RCRA, UST and
Brownfields programs. Most long-term commitments
for waste programs are on track or ahead of schedule.
Many of the successes in FY 2000 are the
culmination of long-term program reforms and
initiatives. The Superfund Program underwent
significant improvements in operations, beginningwith
a management review in 1989 which led to three rounds
of administrative reforms initiated in 1993 through
1995. The reforms addressed seven major categories
(cleanups, enforcement, risk assessment, public
participation and environmental justice, economic
redevelopment, innovative technology, and state and
tribal empowerment). One example of the cleanup
reforms is the ongoing initiative to update selected
remedies, which encourages review of cleanup decisions
at sites where new technologies, information, or other
advances offer the potential for more efficient and less
costly cleanups. As a result more than 300 remedies
have been updated, reducing estimated future cleanup
I
FY 2000 GPRA Performance
11-53
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•a
o
costs by more than $1.4 billion while incurring only
$129 million in additional estimated future costs, for a
projected savings of greater than 90 percent in estimated
costs.
Another reform, the Superfund Redevelopment
Initiative (SRI), ensures that communities have the tools
and information needed to realize the benefits of
reusing Superfund sites. Through FY 2000 SRI has
facilitated development of more than 250 options for
commercial, recreational, public service, ecological,
residential, or agricultural use of land at 190 sites.
Included among these sites are 13,700 acres restored
for recreational and ecological purposes. EPA has
integrated all of the reforms into its base program
operations. Through these efforts the Superfund
Program is protecting human health and the
environment in ways that are faster, fairer, and more
efficient.
There has also been significant progress in ensuring
that active industrial facilities regulated under the RCRA
Program are managing their wastes safely and
preventing the migration of pollution. The RCRA
Corrective Action Program, with its state partners, is
implementing reforms to meet national cleanup goals
faster through flexible approaches and results-oriented
guidance. The reforms, focusing on 1,700 high priority
facilities, have demonstrated considerable success in
achieving intermediate cleanup measures at industrial
sites, paving the way for eventual cleanup of
contamination at these sites.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
The Agency has made considerable progress in
addressing management issues under Goal 5 identified
by the General Accounting Office (GAO) and EPAs
Office of the Inspector General (OIG). EPA expects
to resolve remaining issues on Superfund remedial
contracts, Independent Government Cost Estimates
(IGCEs), Superfund 5-year reviews, and the RCRA
corrective action program by the end of FY 2002. The
Agency has taken multiple steps to increase capacity
utilization of Superfund remedial contracts, while
containing and minimizing program management costs.
With respect to IGCEs, EPA established a national
workgroup and is taking action to ensure continued
improvement in the quality and application of these
estimates. A plan has been put in place to eliminate the
backlog of 5-year reviews while maintaining the
schedule of timely 5-year reviews through FY 2002. In
addition the Agency is developing a number of RCRA
cleanup reforms to improve and streamline the cleanup
process and to better clarify how regions, states, and
facilities can approach cleanups more consistently.
Because of the progress EPA has made in addressing
Superfund management problems, GAO removed the
Superfund Program from the high risk list in the January
2001 update to the GAO High-Risk Series.
Please see Section III - Management Accomplishments
and'Challenges'for a further discussion of the above issues.
RESEARCH CONTRIBUTIONS
Research under Goal 5 supports efforts to reduce
or control risks posed to human health and the
environment by contaminated waste sites and improper
waste management by facilities. Research efforts in
FY 2000 were devoted to improving methods for
measuring, monitoring, and characterizing complex
wastes in soils and groundwater; developing approaches
that enable risk assessors to accurately estimate the
amount of a contaminant found in a soil matrix; and
developing more cost-effective technologies for
characterizing and remediating contaminated soils,
sediments, and groundwater. Research focused on
understanding the fate, transport, and treatment of fuel
oxygenates, particularly methyl-tertiary butyl ether, to
help improve source control to reduce impacts on
drinking water supplies. Also in FY 2000 the Superfund
Innovative Technology Evaluation Program continued
to yield significant cost savings through the use of
innovative remediation and characterization
technologies. Additional research efforts were devoted
to providing multimedia, multipathway exposure and
risk methods and models for assessing the risks from
waste facilities, and to improving techniques to control
and prevent releases during waste management
activities.
PROGRAM EVALUATION
The American Society for Testing and Materials
(ASTM) is evaluating whether risk-based decision-
making corrective actions forleakingUSTs are achieving
state agency management goals for the UST Program.
The study has reviewed five state programs employing
11-54
EPA's FY 2000 Annual Report
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risk-based decision-making and will evaluate the impact
on overall performance. A series of bulletins, published
by ASTM beginning in March 1999, have been used to
report on progress and summarize findings. The second
bulletin, published in March 2000, addressed
development of performance measures for risk-based
decision-making programs. Information in the second
bulletin will be used to expand and update a risk-based
decision-making database that is used by state programs.
As part of the RCRA cleanup reforms, EPA has
evaluated current practices and produced draft guidance,
Results-Eased Approaches to Corrective Action (available
through the Internet at http://www.epa.gov/
epaoswer/hazwaste/ca/resource/guidance/
gen_ca/results.htm), promoting incorporation of
results-based cleanup approaches into delegated RCRA
program management. The comment period closed in
November 2000, and EPA anticipates publishing final
guidance in 2001. In addition two audits of the RCRA
Corrective Action Program were conducted in FY 2000
by EPAs OIG and GAO: RCRA Corrective Action "Focuses
on Interim Priorities - Better Integration with Final Goals Needed
(EPA OIG, 2000-P-0028, September 2000, http://
www.epa.gov/oigearth/audit/list900/
rcraaction.pdf), which assessed the progress of the
RCRA corrective action program and recommended
development of additional performance goals for the
restoration of waste sites at active facilities, and EPA
Has Removed Some Barriers to Cleanup (GAO/RCED-00-
224, August 2000, http://www.gao.gov), which
assessed several EPA actions to revise RCRA regulatory
requirements to remove cleanup barriers.
program for tribes. These measures cover operations
within the Superfund, chemical accident prevention,
leaking underground storage tank, and hazardous and
municipal solid waste management programs.
TABLES OF RESULTS
The following tables of results include performance
results for the 12 FY 2000 Congressional Annual
Performance Goals (APGs) that appear in Goal 5. In
cases where the FY 2000 APG is associated with an
FY 1999 APG, the table includes the FY 1999 APG
below the FY 2000 APG for ease in comparing
performance. Where applicable, the tables note cases
where FY 2000 APGs are supported by state National
Environmental Performance Partnership System
(NEPPS) Core Performance Measures (CPMs). As
described in more detail in Section I of the report
("Overview and Analysis"), states use CPMs to evaluate
their progress toward mutual program goals.
Additionally EPA is providing information on FY 1999
APGs for which data were not available when the
FY 1999 report was published.
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
Many of the FY 2000 performance goals and
measures will remain priorities for emergency response
and waste management programs through FY2001.
Based on better-than-anticipated performance in
FYs 1999 and 2000, the annual performance targets
for Brownfields economic indicators and compliance
with the Oil Program's Spill Prevention, Control and
Countermeasure requirements have been raised. Also
EPA has added performance measures related to tribal
accomplishments in its FY 2001 annual plan, focusing
attention on developing and maintaining the waste
I
FY 2000 GPRA Performance
11-55
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance |
[Tto8 fifei, foi
GOAL 5 - BETTER WASTE MANAGEMENT,
RESTORATION OF CONTAMINATED WASTE SITES,
AND EMERGENCY RESPONSE
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
BY 2005, EPA AND ITS PARTNERS WILL REDUCE OR CONTROL THE RISKSTO HUMAN HEALTH ANDTHE
ENVIRONMENT AT OVER 375,000 CONTAMINATED SUPERFUND, RCRA, UST AND BROWNFIELD SITES.
FY 2000 APG 30: EPA and its partners will complete 85 Superfund cleanups (construction
completions) to achieve the overall goal of 900 construction
completions by the end of 2002.
(FY 1999) EPA and its partners will maintain the pace of cleanups by completing
construction at 85 additional Superfund sites (for a cumulative total of 670
construction completions with a target of 925 construction completions in
2002).
Explanation: Goal met. EPA exceeded its target, attaining a total of 87 construction
completions, for a cumulative total of 757 construction completions over the
life of the program.
Data Source: The Comprehensive Environmental Response and Compensation Liability
Information System (CERCLIS) tracks, stores, and reports Superfund/Oil site
information, including cleanup, cost recovery, and compliance status. The
system also records regional accomplishments on Brownfields assessments.
Data Quality: Regional EPA staff are responsible for reviewing, verifying, and validating site
data for CERCLIS. Also, several administrative controls are in place to assure
data accuracy. The Office of the Inspector General (DIG) reviews the
end-of-year Superfund reports to verify numbers for all performance
measures. A General Accounting Office (GAO) audit done to assess the
validity of data in CERCLIS estimated that the cleanup status of National
Priority List sites reported in CERCLIS is accurate for 95% of the sites.
85
87
85
s
&
•a
o
FY 2000 APG 31: Maximize all aspects of potentially responsible party (PRP)
participation, which includes maintaining PRP work at 70% of the new
remedial construction starts at non-Federal Facility Superfund sites,
and emphasizing fairness in the settlement process.
(FY 1999) Obtain PRP commitments for 70% of the work conducted at new construction
starts at non-federal facility sites on the National Priority List (NPL) and
emphasize fairness in the settlement process.
Performance Measures
- Orphan share offers at eligible work settlement negotiations.
- De minimis settlements.
Explanation: Goal not met. Although the goal was not met, the long-term average is near
the 70% target, and the percentage of remedial construction starts initiated
by responsible parties has averaged 74% over the past three years. EPA
determines the percentage of remedial construction starts conducted by
responsible parties at non-federal facility NPL sites. The annual percentage
depends on several factors, including the number of sites ready to begin
remedial action, whether work at those sites is financed by the responsible
party or Superfund, and the funding available for remedial action starts. As a
result, the annual percentage may vary. In FY 2000 responsible parties
committed to funding remedial action at 64 of 94 sites that were ready for
remedial action (68%). To ensure fairness in the settlement process, EPA
successfully made orphan share offers at 100% of work settlement
negotiations. Of the 20 sites having small waste contributors that were
targeted for de minimis settlements in FY 2000, two were lead-acid battery
recycling sites. In October 1999 Congress passed the Superfund Recycling
70%
68%
100%
20
100%
18
80%
100%
37
11-56
EPA's FY 2000 Annual Report
-------
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Equity Act, which specifically exempted from Superfund liability generators of
certain recyclable materials, including lead-acid batteries. As a result the de
minimis parties at the two lead-acid battery sites were no longer liable under
Superfund, and EPA did not have to enter into settlements at these sites.
Data Source: Same as FY 2000 APG 30.
Data Quality: Same as FY 2000 APG 30.
FY 2000 APG 32: Ensure trust fund stewardship by recovering costs from PRPs when
EPA expends trust fund monies. Address cost recovery at all NPL and
non-NPL sites with a statute of limitations (SOL) on total past costs
equal to or greater than $200,000.
(FY 1999) Ensure trust fund stewardship by recovering costs from PRPs when EPA
expends trust fund monies. Address cost recovery at all NPL and non-NPL
sites with a statute of limitations on total past costs equal to or greater than
$200,000.
Explanation: Goal not met. Although the goal was not met, there was no loss in dollars
recovered. Cost recovery was addressed at 253 (or 98.5%) of NPL and
non-NPL sites with total past costs greater than or equal to $200,000. EPA
plans to write off costs associated with the two other SOL cases (1.5%), but
decision documents were not processed in a timely manner.
Data Source: Same as FY 2000 APG 30.
Data Quality: Same as FY 2000 APG 30.
FY 2000 APG 33: 172 (for a cumulative total of 649 or 38%) of high priority Resource
Conservation and Recovery Act (RCRA) facilities will have human
exposures controlled and 172 (for a cumulative total of 612 or 36%) of
high priority RCRA facilities will have ground-water releases controlled.
(FY 1999) 83 (for a cumulative total of 238 or 14%) of high priority RCRA facilities will
have human exposure controlled and 45 (for a cumulative total of 119 or 7%)
will have ground-water releases controlled.
Explanation: Goal met. An additional 191 high priority RCRA facilities have human
exposures controlled (for a cumulative total of 642 out of 1 ,714 total facilities,
or 37%). An additional 168 high priority RCRA facilities have groundwater
releases controlled (for a cumulative total of 565 out of 1,714 total facilities,
or 33%). While the cumulative totals for human exposures and groundwater
releases are slightly less than the FY 2000 targets, cumulative totals still
exceed 1998 projections for achieving long-term RCRA corrective action
goals. Variances in cumulative totals stem from changes in facility counts
following the provision of new data by authorized states, resulting in a change
of designation for environmental indicators being met at 26 sites for human
exposures controlled and 43 sites for groundwater releases controlled. There
were no changes in EPA procedures as a result of the reviews.
Data Source: EPA regions and authorized states enter data on a rolling basis into the
Resource Conservation and Recovery Information System (RCRAInfo),
which contains information on entities (generally referred to as "handlers")
that are engaged in hazardous waste generation and management activities
regulated under the hazardous waste part of RCRA.
Data Quality: RCRAInfo is the national database that supports the RCRA program. It has
user and system documentation that describes the overall administration of
data collection and management activities. Data screen edits help to ensure
that key data are entered for all facilities. States and regions are responsible
for managing data quality.
FY 2000
Planned
100%
172
172
Actual
98.5%
191
168
FY 1999
Actual
99%
162
188
-
GPRA Performance
11-57
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
FY 1999
Planned Actual
Actual
FY 2000 APG 34: Complete 21,000 Leaking Underground Storage Tank (LUST) Cleanups
for a cumulative total of 250,000 cleanups since 1987.
(FY 1999) Complete 22,000 LUST cleanups.
Explanation: Goal met. EPA met the goal by providing assistance to its state partners in
completing approximately 21,000 cleanups, for a cumulative total of about
250,000 since 1987. Projections for outyear accomplishments demonstrate
that the FY 2005 goal of 332,000 cleanups completed, and the overall goal of
370,000 cleanups completed or initiated, will be achieved by or before
FY 2005.
Data Source: Designated state agencies submit semiannual progress reports to regional
EPA offices.
Data Quality: Regional EPA offices verify reports from state agencies and then forward to
Headquarters. Headquarters staff examine the data and resolve any
discrepancies with the regional offices. There is no centralized database on
underground storage tank (LIST) sites. EPA Headquarters has provided
guidance on standard definitions for data reported.
21,000
20,834
25,678
FY 2000 APG 35: EPA will provide additional site assessment funding to 50 communities,
resulting in a cumulative total of 1,900 sites assessed, the generation of
4,900 jobs, and the leveraging of $1.7 billion in cleanup and
redevelopment funds.
(FY 1999) EPA will fund Brownfields site assessments in 100 more communities, thus
reaching 300 communities by the end of 1999.
Explanation: Goal met. Although fourth quarter data are not available until April 2001, EPA
exceeded the goal as indicated by third quarter data that show cumulative
totals of 2,024 site assessments, generation of 7,446 jobs, and leveraging of
$2.8 billion in cleanup and redevelopment funds.
Data Source: Data are entered on a rolling basis into the Brownfields Management System
(BMS). BMS is used to evaluate environmental and economically related
results, such as jobs generated and acres assessed and remediated. Data
are gathered from Brownfields pilots' quarterly reports from grant recipients
and from the regions.
Data Quality: EPA prepared and issued guidance to Brownfields grant recipients on
evaluating and reporting progress on performance measures. Regional staff
responsible for setting up the grants conduct data quality reviews.
1,900
4,900
$1.7B
2,024
7,446
$2.8 B
(at end
of third
quarter
2000)
80 (307
cumulative)
I
•a
o
FY 2000 APG 36: Ensure compliance with Federal facility statutes and Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA)
Agreements and ensure completion of current NPL CERCLA
Inter-agency Agreements (lAGs).
Performance Measures
- Complete NPL lAGs.
- Begin CERCLA Negotiations.
Explanation: Goal not met. Issues raised by the responsible federal parties resulted in
delays in completing four of the six targeted NPL lAGs. EPA is continuing its
efforts to compel the federal parties to complete these four remaining lAGs.
Since the beginning of FY 2001, two outstanding NPL lAGs have been
completed, and negotiations are scheduled to address the two remaining
outstanding lAGs. The Agency also began negotiating the four planned
CERCLA lAGs during the year, but only one of these was properly reflected
in the database (as indicated in the "actual" column).
Data Source: Same as FY 2000 APG 30.
Data Quality: Same as FY 2000 APG 30.
No
FY 1999
APG
11-58
EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
FY 2000 APG 37: Enhance scientifically defensible decisions for site cleanup by
providing targeted research and technical support.
Performance Measures
- Report of natural attenuation case studies of methyl-tertiary butyl ether (MTBE).
- Deliver Superfund Innovative Technology Evaluation (SITE) report to Congress.
- Report of key research on methods, models and factors relating to risk evaluation of dermal
route of exposure.
- Review 20 soil contaminants and develop screening levels.
Explanation: Goal not met. EPA made progress toward this goal by documenting cost
savings and clean up decisions based on research through the SITE Report
and other technical support programs, although finalization of several reports
was delayed. The summary report for MTBE case studies was delayed until
April 2001 because the original scope was expanded to include more than
four sites, thus strengthening the data supporting the report. The SITE report
was delivered to OMB in fiscal year 2000, but the delivery date to Congress
was delayed due to time required for OMB approval. The report on the dermal
exposure route was delayed until December 2000 due to time required for
peer review.
Data Source: Agency generated material.
Data Quality: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work
products used in Agency decision making are independently peer reviewed
before their use. EPA has implemented a rigorous process of peer review for
both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry, and other federal
agencies.
No
FY 1999
APG
1
9/30/00
9/30/00
9/30/00
0
1/30/01
12/31/00
9/30/00
BY 2005, OVER 282,000 FACILITIES WILL BE MANAGED ACCORDING TO THE PRACTICES THAT PREVENT
RELEASES TO THE ENVIRONMENT, AND EPA AND ITS PARTNERS WILL HAVE THE CAPABILITIES TO
SUCCESSFULLY RESPONDTO ALL KNOWN EMERGENCIESTO REDUCETHE RISKTO HUMAN HEALTH
ANDTHE ENVIRONMENT.
FY 2000 APG 38: 106 more hazardous waste management facilities will have approved
controls in place to prevent dangerous releases to air, soil, and
groundwater, for an approximate total of 67% of 2,900 facilities.
(FY 1999) 122 hazardous waste management facilities (for a cumulative total of 61% of
3,380 RCRA facilities) will have permits or other controls in place.
Explanation: FY 2000: Goal met. EPA exceeded its goal by documenting approved
controls for 308 additional RCRA hazardous waste management facilities, for
a cumulative total of 1,802 facilities. The Agency was able to exceed this goal
due to establishment of definitions for non-permitting approved controls at
hazardous waste management facilities, accounting for a high number of
facilities that needed minor administrative work, the completion of an
extensive data cleanup effort, and improved relationships with state partners.
The percentage of cumulative accomplishments against the baseline has
been adjusted to reflect ongoing improvements to RCRA data systems. For
FY 2001 and beyond, the facility baseline has been adjusted to 2,750.
FY 1999: Goal met. Based on information received in FY 2000, EPA
exceeded its FY 1999 target. 149 RCRA hazardous waste management
facilities were determined to have permits or other controls in place.
Data Source: Same as FY 2000 APG 33.
Data Quality: Same as FY 2000 APG 33.
106
308
149
-
GPRA Performance
11-59
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CV OAAA A MMI IAI DCDC/"\DIVfl A M/^C /"*/"\ A 1 O A Ml^ RflCAOIIDCO
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000 APG 39: 400 additional facilities will be in compliance with the Spill Prevention,
Control and Countermeasure (SPCC) provisions of the oil pollution
regulations (for a cumulative total of more than 1,500 facilities since
1997).
(FY 1999) 190 additional facilities will be in compliance with the SPCC provisions of the
oil pollution regulations (for a cumulative total of 490 additional facilities since
1997).
Explanation: Goal met. EPA has exceeded its goal due to implementation of an expedited
inspection and compliance monitoring program. FY 2001 targets have been
adjusted to account for this new program.
Data Source: Same as FY 2000 APG 30.
Data Quality: Same as FY 2000 APG 30.
FY 2000 APG 40: Enhance scientifically defensible decisions for active management of
wastes, including combustion, by providing targeted research and
technical support.
(FY 1999) Complete prototype model for assessing cumulative exposure-risk
assessment integrating the environmental impact of multiple chemicals
through multiple media and pathways.
Performance Measures
- Develop provisional toxicity values for 10 to 20 waste constituents.
- Provide one journal article on factors that control mercury speciation in incinerators.
Explanation: Goal met. EPA met the goal of providing targeted research and technical
support for the active management of wastes by preparing nine provisional
toxicity values from 38 feasibility assessments on 25 waste constituents. The
journal article on factors that control mercury speciation in incinerators was
published in FY 2000.
Data Source: Same as FY 2000 APG 37.
Data Quality: Same as FY 2000 APG 37.
FY 2000 APG 41: 90% of USTs will be in compliance with EPA/state December 22, 1998
requirements to upgrade, close or replace substandard tanks.
Explanation: Goal not met. 86% of USTs demonstrated compliance with the 1998
requirements to upgrade, close, or replace substandard tanks. The original
target was based on equipment changes to LIST systems. However, EPA has
changed the focus of compliance from simply having the required equipment
to properly operating that equipment as well. As a result a number of states
have reported compliance rates based on operational compliance (rather
than "equipped to comply") which led to a lower overall compliance figure.
Improving reporting while maintaining flexibility under the program is a
near-term goal of the Agency.
Data Source: Same as FY 2000 APG 34.
Data Quality: Same as FY 2000 APG 34.
FY 2000
Planned
400
9/30/00
1
90%
Actual
678
9/30/00
1
86%
FY 1999
Actual
774
9/30/99
No
FY 1999
APG
I
•a
o
11-60
EPA's FY2000 Annual Report
-------
FY 1999 ANNUAL PERFORMANCE GOALS WITHOUT CORRESPONDING FY 2000 GOALS
(ACTUAL PERFORMANCE DATA AVAILABLE IN FY 2000 AND BEYOND OR WITH PERFORMANCE TARGETS
BEYOND FY 2000)
FY1999APG:
Explanation:
Data Source:
Data Quality:
Demonstrate and verify the performance of 18 innovative technologies
by 2001, emphasizing remediation and characterization of groundwater
and soils.
Goal met. As of the end of FY 2000, 25 innovative technologies have been
demonstrated and verified (seven in FY 1999 and 18 in FY 2000).
Same as FY 2000 APG 37.
Same as FY 2000 APG 37.
Planned
11
Actual
18
-
GPRA Performance
11-61
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Goal 6 FY 2000 Obligations
S230M
GOAL 6: REDUCTION OF GLOBAL AND
CROSS-BORDER ENVIRONMENTAL RISKS
The United States will lead other nations in successful multilateral
efforts to reduce significant risks to human health and ecosystems
from climate change, stratospheric ozone depletion, and other
hazards of international concern.
Note: EPA FY 2000 Obligations
were $8,974 million
OVERVIEW
Environmental hazards, like ecosystems, are not
limited by national borders. Transboundary circulation
of toxic chemicals; marine pollution; depletion of the
stratospheric ozone layer; climate change; safety issues
posed by the international trade in chemicals, pesticides,
and biotechnology products; and similar global issues
all pose significant risks to the United States. Unilateral
domestic actions and investments cannot adequately
protect the well-being of people or the environment
from such risks. Therefore, collaboration with other
countries and tribal nations is essential in protecting
not only the domestic environment but also the global
environment. Agency programs address this need by
fostering multilateral cooperation on environmental and
trade issues and enhancing foreign countries' technical
capacity for addressing environmental risks globally.
FY 2000 PERFORMANCE
Ensuring a Healthy and Sustainable Environment
Along the U.S.-Mexico Border
The U.S.-Mexico Border XXI Program continues
to make progress in addressing the region's serious
environmental problems. For example, air emissions
inventories and monitoring networks, which serve as the
basis for local air quality management plans, are in place
in the three largest border sister cities (which have a total
U.S.-Mexican population of more than five million).
There have been dramatic improvements in the
availability of water and sewer services in the border area,
primarily because of partnerships with the Border
Environment Cooperation Commission (BECC) and the
North American Development Bank, including the EPA
funded Border Environment Infrastructure Fund. Thirty
BECC-certified projects are in various stages of
construction or have been built in the border area, and
they ultimately will serve about seven million border
residents. Six sister-city pairs now have contingency plans
to respond to chemical emergencies, and systems are in
place to allow cross-border responses to hazardous
substance incidents. The two countries have established
a mechanism to provide information to the public about
new and existing treatment, storage, and disposal facilities
for hazardous and radioactive wastes. In addition a system
to track hazardous waste returned to the United States
for disposal will ensure safe disposal and to serve as an
enforcement tool.
Restoring and Maintaining the Great Lakes Basin
Ecosystem
The Great Lakes Basin contains one-fifth of all the
world's surface fresh water (six quadrillion gallons of
water, enough to cover the entire conterminous United
States to a depth of about ten feet). Environmental data
on the health of the basin are indicating some
improvement, yet some areas show no sign of recovery.
EPA's ability to assess environmental progress and
challenges in the Great Lakes Basin was further enhanced
in FY 2000 with the release of 31 reports on proposed
comprehensive, basin-wide indicators (http://
www.on.ec.gc.ca/solec/indicators2000-e.html).
In partnership with states, EPA continues to address
challenges in the Great Lakes. In FY 2000 the Agency
accelerated the development of Lakewide Management
Plans, issued a plan for each lake in April 2000, and
approved six state programs tailored to protect the water
quality of the Great Lakes. The Great Lakes Program
reported the following developments in FY 2000:
• There was a small increase in reported Great Lakes
beach closures in 1999 as a result of beach
managers' adopting closing criteria more protective
FY 2000 GPRA Performance
11-63
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•i
a
of human health and conducting more frequent
monitoring.
• Concentrations of polychlorinated biphenyls
(PCBs) and pesticides in the air continue to decline;
however, concentrations of polynuclear aromatic
hydrocarbons in the air (from combustion of fossil
fuels and other organic substances) have remained
relatively constant.
• Fish advisories continue for all of the Great Lakes
as a result of toxic contaminants from the air and
sediments; for example, PCB concentrations in
Lake Michigan coho salmon are ten times higher
than the health protection value.
• Oxygen depletion in the Central Basin of Lake Erie
indicates potential for increasing severity of
problems such as excess phosphorus and difficulty
sustaining bottom-dwelling fish and other biota.
• New invasive species are expected to have
ecosystem and economic impacts; for example,
Daphnia lumholt^i, a small crustacean, was recently
identified as the 160th aquatic invasive species in
the Great Lakes.
In FY 2000 EPA also continued to address
contaminated sediments, a major source of fish and
wildlife contamination in the Great Lakes.
Contaminated sediments have contributed to
impairments to more than 2,000 miles (20 percent) of
shoreline and to the fish consumption advisories in
place throughout the Great Lakes. More than 1,600,000
cubic yards of contaminated sediments have been
remediated during the past 4 years (http://
www.epa.gov/glnpo/sediments.html).
Protecting The Northwestern Border
The United States and its multilateral partners ended
the first phase of a project to help Russia manage PCBs
in an environmentally sound manner and thereby comply
with pertinent international agreements. Although
estimated PCB stocks and releases are considerable,
preliminary reviews indicate that the quantities might be
underestimated. Once high-priority sources have been
identified and feasibility studies completed, Russia will take
corrective measures that ultimately will reduce the
environmental releases of PCBs and long-range transport
from Russia. In turn this reduction will lower the bio-
uptake of PCBs not only in Russia but also in Alaska and
other receiving areas.
Addressing Global Climate Change
Through EPA's climate program, the Agency is
delivering real greenhouse gas emissions reductions by
identifying and addressing opportunities to reduce
energy waste and to prevent emissions of potent
greenhouse gases associated with the public and private
sectors, including consumers. For 2000 and beyond
EPA's objective is to reduce U.S. greenhouse gas
emissions to levels consistent with international
commitments under the Framework Convention on
Climate Change, building on initial efforts under the
Climate Change Action Plan. For FY 2000 EPA is on
track to meet its greenhouse gas emissions reduction
target of 58 million metric tons of carbon equivalent
(MMTCE). Data will be available in spring 2001.
Greenhouse Gas Reductions from EPA Climate
Change Technology Initiative Programs
60
ra
o
50
40
~ 30
O JU
'E g
o> .5
s*
20
10
Annual Accomplishments
Annual Goals
1995
1996
1997
1998
1999
2000
The core of EPA's climate change efforts is
government-industry partnership programs designed to
overcome the barriers that limit investments by
consumers, businesses, and other organizations in cleaner
or more efficient technologies. Energy-efficient
technologies provide a sizable opportunity for limiting
emissions of greenhouse gases while simultaneously
improving local air quality and saving money for both
businesses and consumers. EPA's climate change program
has shown results by meeting emission-reduction goals
and demonstrating cost-effectiveness. Based on actions
taken by partners in the voluntary programs, EPA reports
the following results through 1999:
• Annual greenhouse gas emission reductions
equivalent to eliminating the emissions from about
18 million cars.
11-64
EPA's FY 2000 Annual Report
-------
• Annual reductions in emissions of nitrogen oxide
(NOJ totaling over 100,000 tons, equivalent to the
annual emissions from 70 power plants.
• Continued emission reductions from actions already
taken by program partners of more than 20
MMTCE per year through 2010.
Cars, trucks, aircraft, and other components of the
nation's transportation system emit about one-third of
total U.S. greenhouse gas emissions. Transportation
policies, plans, and choices have an immense effect on
greenhouse gas emissions, particularly on carbon
production. Although technology and market-oriented
measures will make a major contribution toward
reducing emissions, efforts to reduce vehicle miles
traveled (VMT) are also critical for achieving EPAs
greenhouse gas emission reduction goals. To this end
in FY 2000 EPA actively supported voluntary regional,
state, and community efforts that encourage additional
travel choices and alternatives to single-occupancy
vehicle driving. An example of these efforts is the
national Commuter Choice program that was launched
in 2000 to achieve VMT reductions. Commuter Choice
programs encourage employers to provide their
employees transportation options in commuting to and
from work, such as free or reduced cost passes for public
transportation, opportunities to carpool, telecommuting
options, and incentives to bike or walk.
In addition EPA joined six other federal agencies,
along with Ford, General Motors, andDaimlerChrysler,
in the Partnership for a New Generation of Vehicles
(PNGV), an ongoing program to develop a new
generation of safe, attractive, affordable vehicles with
ultra-low emissions and high fuel efficiency. In FY 2000,
as part of the PNGV program, EPA demonstrated 72
mpg (gasoline equivalent) on a mid-size research chassis
using a state-of-the-art diesel engine and an EPA-
invented, patented, and developed hybrid drivetrain.
Restoring the Ozone Layer
The stratospheric ozone layer protects life on earth
from harmful ultraviolet (UV) radiation. Scientific
evidence amassed over the past 25 years indicates that
the use of chlorofluorocarbons (CFCs) and other
halogenated chemicals has resulted in the destruction
of stratospheric ozone. In FY 2000 EPA furthered the
nation's commitment to assisting in the restoration of
the ozone layer by tracking, through a marketable permit
system, industry compliance with regulatory restrictions
on the consumption of ozone-depleting substances.
Although continued U.S. commitment to these
restrictions is essential to halting the destruction of
ozone in the stratosphere, the participation of
developing countries is also key to ensuring the timely
restoration of the ozone layer. U.S. leadership in
international negotiations during FY 2000 led to an
agreement with China, the largest consumer of ozone-
depleting substances among developing countries.
China will now reduce its use of ozone-depleting
solvents at a faster rate than that to which it originally
agreed.
Scientists anticipate that by the end of this decade
the stratospheric ozone hole will stop growing.
However, because ozone-depleting substances have a
long life and were emitted for many years before EPAs
restrictions and the international agreement, the public
is faced with potentially unhealthy levels of UV
radiation. Recognizing this, during FY 1999 EPA
launched the Sun Wise School Program to promote sun
safety practices. The program's goal is to protect
children from skin cancer, cataracts, and other long-
term UV-related health effects. Sun Wise now reaches
more than 10,000 children between the ages of five
and 15 in 42 states across the nation, and the list of
participating schools is growing. Pre- and post-program
surveys of participating students show that the program
has already begun to increase the level of knowledge
among children about ways to reduce their exposure to
harmful UV radiation. More importantly the students
are demonstrating their knowledge. In FY 2000 EPA
set a target that 60 percent of children in Sun Wise
schools would be very likely to use Healthy People 2000
"safe sun" practices. EPA has found, however, that an
"all of the time" standard is more likely to be associated
with greater risk reduction and less disease. Using this
revised metric, in FY 2000 the proportion of Sun Wise
children who used sunscreen all of the time was 26
percent; hats, 18 percent; long-sleeve shirts, 23 percent;
and sunglasses, 25 percent. The action steps
recommended by SunWise are provided at http://
www.epa.gov/sunwise/actionsteps.html.
SunWise-Y
• • v •< .•• ;: i >i '> • nrililit { -.!•••
FY 2000 GPRA Performance
11-65
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o
Reducing Circulating Chemicals
EPA made progress in FY 2000 toward reducing
the risks to U.S. human health and ecosystems from
selected toxics that circulate in the environment at global
and regional scales. Under the auspices of the North
American Commission for Environmental
Cooperation, the United States, Canada, and Mexico
prepared a second-phase North American Regional
Action Plan (NARAP) for mercury, which calls for
ending specific mercury uses where there is an
unreasonable or otherwise unmanageable risk of release
to the environment or risk to human health. However,
because of the countries' differences in levels of priority
and effort devoted to mercury risk reduction, economic
conditions, and technological and infrastructure
capabilities, they did not establish time lines for
completing the activities set forth in the nonbinding
mercury NARAP.
EPA expanded its mercury monitoring network in
FY 2000 to collect additional data on the long-range
transport and transformation of mercury. Through this
monitoring, EPA and its partners are contributing the
data required for modeling through the placement of
new air quality monitors in coastal Alaska. These new
monitors will determine the relative apportionment
between domestic and international sources of mercury
that concentrates in fish (the primary exposure route
for humans). Having such apportionments will permit
EPA to focus domestic emission control efforts and
international risk management initiatives, all of which
are intended to minimize mercury releases to the
environment and thus decrease exposures to mercury.
This effort supports domestic obligations under the
Clean Air Act, as well as those made in the mercury
NARAP and other agreements.
The negotiations on a legally binding global
convention on persistent organic pollutants (POPs)
such as dichlorodiphenyltrichloroethane (DDT) were
successfully concluded in December 2000. It is not yet
clear, however, whether international financial
institutions, the United States, and other developed
countries will be able to offer levels of capacity-building
support sufficient to prompt key developing countries
to sign and comply with the global POPs convention.
Finally, EPA and other member countries of the
Organization for Economic Cooperation and
Development completed work on five harmonized test
guidelines, a protocol of consistent international testing
guidelines based on a combination of standard U.S. and
European chemical toxicity testing procedures.
Increasing Harmonization and Environmental
Capacity
In establishing a greater connection between the
environment and trade, EPA, workingwith other federal
agencies, contributed to the development and
implementation of Executive Order (E.O.) 13141,
Environmental Review of Trade Agreements. In addition to
EPAs analysis of the potential regulatory effects of
trade agreements, under the E.O. the Agency will
contribute to the "core analysis" by estimating changes
in various categories of pollution in the United States
that could be expected from the trade agreement. When
fully implemented in 2001, E.O. 13141 will represent
one of the most significant policy contributions to the
environment and trade debate because comprehensive
trade agreements potentially touch every natural
resource through the primary and secondary effects of
tariff changes, removal of nontariff trade barriers, and
rule changes.
High-quality environmental information plays a
vital role in building capacity to address global
environmental problems. The Agency's international
environmental information efforts have expanded
rapidly during the past several years. In FY 2000 EPA
completed its first International Environmental
Information Inventory and used the resulting data to
develop the Agency-wide Strategic Plan for
International Environmental Information. This plan
will help EPA track new international information
programs, ensure that programs do not duplicate
efforts, and target scarce resources as effectively as
possible. Toolkits were also developed and designed to
help other countries enhance their environmental
libraries and to locate, through the Internet,
environmental information from around the world.
SUMMARY OF FY 2000 PERFORMANCE
EPA has long been recognized as the leading source
of environmental regulatory and management expertise
worldwide. The direct benefit to U.S. citizens and their
environment resulting from this involvement
underscores the importance of ensuring an active and
continuing international presence. EPA has made
progress in its efforts to advance protection of the
11-66
EPA's FY 2000 Annual Report
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global commons. There has been progress in protecting
the ozone layer, and progress is being made to reduce
the increasing rate of greenhouse gas emissions. Treaties
and binding conventions such as the Global POPs are
under way and are advancing the ideal of sustainable
environmental growth. People along the U.S. border in
various municipalities have access to water and
wastewater treatment for the first time. Continued
progress will rely greatly on the Agency's ability to
achieve agreement on key global negotiations and on
its ability to sustain support for this work.
RESEARCH CONTRIBUTIONS
In FY 2000 EPA research and assessment activities
examined the potential consequences of climate change
for human health and ecosystems in the United States.
EPA assessed the possibility of changes in disease
patterns due to changing climate; the impact of heat
stress on populations, especially senior citizens and
children; the air pollution-related health effects of
climate change; and the socioeconomic consequences
of extreme weather events. Researchers also analyzed
the impact of climate change and variability on the
ability of ecosystems to provide the services that many
people rely on but often take for granted, such as water
filtration and air purification. In an effort to understand
how climate change might affect life in the United States,
EPA sponsored the Great Lakes, Mid-Atlantic, and Gulf
Coast Regional Assessments, as well as the Health Sector
Assessment, as part of the U.S. Global Change Research
Program's First National Assessment of the Potential
Consequences of Climate Variability and Change for
the United States. The assessments provide stakeholders
and policy makers with information on the potential
risks and opportunities presented by climate change
and offer options for adapting to the changes.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
EPA's Office of the Inspector General (OIG)
evaluated the Great Lakes Program at the Agency's
request to provide advice and assistance on how to
improve the Lakewide Management Plan (LaMP) and
Remedial Action Plan processes and develop and
implement effective national strategies and agreements.
The Agency undertook several actions consistent with
the OIG's recommendations, including accelerating the
development of LaMP documents that were published
for the Great Lakes in FY 2000; reinstituting the Great
Lakes U.S. Policy Committee, including states, tribes,
and other federal agencies; and developing a tracking
system to address the issues. Efforts will continue
toward improving the Great Lakes Strategy and clearly
identifying the responsibilities of EPA program offices
and regions, states, and Canada to fully support the
restoration and maintenance of the chemical, physical,
and biological integrity of the Great Lakes.
Please see Section III - Management Accomplishments
and'Challenges'for a further discussion of the above issues.
PROGRAM EVALUATION
EPA's Great Lakes Program regularly consults with
federal, state, and tribal governmental agencies
responsible for setting strategic directions for Great
Lakes environmental protection. In FY 2000 EPA
responded to FY 1999 consultations and evaluations
by reinstituting the Great Lakes U.S. Policy Committee.
The consultations and evaluations were conducted as a
series of meetings and did not result in a published
report.
Pursuant to a congressional request, the General
Accounting Office (GAO) reviewed the partnership
between the federal government, including EPA, and
three domestic automobile manufacturers (the
Partnership for a New Generation of Vehicles
(PNGV)), focusing on the following aspects: (1) the
progress made to date toward achieving the partnership
goals; (2) the historical federal funding levels; (3) the
technologies being developed under PNGV; and (4) a
comparison of the overall research and development
activities of the automobile manufacturer participants
with research sponsored by the partnership.
In its letter "Cooperative Research: Results of U.S.-
Industry Partnership to Develop a New Generation of
Vehicles" (Letter, March 30, 2000, GAO/RCED-00-
81, http://www.gao.gov), GAO noted, "While
progress has been made toward the goals of the PNGV
partnership, technological and affordability obstacles
still need to be overcome. It is not yet possible to assess
if the partnership is improving U.S. competitiveness in
manufacturing, its first goal. The partnership is making
progress towards its second goal of implementing
FY 2000 GPRA Performance
11-67
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•a
o
commercially viable innovations in conventional
vehicles. In addition the partnership has made progress
toward its third goal, releasing concept cars by March
2000 that manufacturers stated demonstrate the ability
to achieve nearly 80 miles per gallon. However, the
manufacturers and National Research Council stated
that significant technological and affordability obstacles
remain."
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
Development of EPA's FY 2001 Annual
Performance Goals (APGs) and measures under Goal 6
was guided by FY 2000 performance results. In some
instances data indicated no change in course. Most
programs are on track toward meeting the strategic goal.
In other cases, however, the Agency made dramatic
changes. For example the Agency's decisions to pursue
enhanced involvement in trade negotiations and
liberalization agreements in FY 2000 have focused
greater attention on analyzing and participating in trade
agreements affecting U.S. environmental regulations as
EPA implements the E.O. on environmental review; In
addition, the following programs reassessed their
direction in FY 2001 based on FY 2000 performance:
• Great Lakes Basin ecosystem. The depletion of oxygen
in the Central Basin of Lake Erie indicates potential
problems, which will be explored further in
FY 2001. Identification of the 160th invasive
species has reinforced the urgency of EPA and its
partners making progress on technology to prevent
the further introduction and spread of invasive
species. Projects are exploring the use of filtration,
as well as the use of UV light, for secondary
treatment of ballast water, and are looking at the
impacts of "No Ballast on Board" vessels. The
FY 2001 performance measures for Great Lakes
Ecosystem Assessment have been revised to
measure ecological trends, a significant
improvement over FY 2000 measurement of
outputs.
• O^pne depletion. EPA's successful performance in
FY 2000 is reflected in its FY 2001 ozone layer
restoration goals. The goals will include
implementing the next regulatory step in the
phaseout of methyl bromide, implementing a
market-based allowance allocation system for
hydrochlorofluorocarbon (HCFC) production and
importation, increasing the number of developing
countries helped by U.S. assistance through the
Multilateral Fund, and improving childlren's
knowledge of the importance of proper sun
protection by expanding the SunWise School
Program to include 20 percent more children across
the country.
• Circulating chemicals. EPA's performance in FY 2000
is reflected in the Agency's FY 2001 goals for
increasing the number of mercury transport
monitoring stations operating in North America
and elsewhere (e.g., Russia), as well as its targets
for POPs capacity-building projects.
TABLES OF RESULTS
The following tables of results include performance
results for the 12 FY 2000 APGs that appear in Goal 6.
In cases where the FY 2000 APG is associated with an
FY 1999 APG, the table includes the FY 1999 APG
below the FY 2000 APG for ease in comparing
performance.
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EPA's FY 2000 Annual Report
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
FuWtfMpMVuVtf GOAL 6 - REDUCTION OF GLOBAL &
iBHJBUJIBHil CROSS-BORDER RISKS
FY 9000 ANNUAI PFRFORMAMPF fiOAl ^ AND MFA^URF^
i I Ł.\J\J\J nMMlfnL. t ^V\t\J rilvlnli w^ V^WHLw nMLJ IVI^nOlfrl^O
FY 2000
Planned
Actual
FY 1999
Actual
BY 2005, REDUCE TRANSBOUNDARY THREATS TO HUMAN HEALTH AND SHARED ECOSYSTEMS IN NORTH
AMERICA CONSISTENT WITH OUR BILATERAL AND MULTILATERAL TREATY OBLIGATIONS IN THESE AREAS,
AS WELL AS OURTRUST RESPONSIBILITY TO TRIBES.
FY 2000 APG 42: Five additional water/wastewater projects along the Mexican border will
be certified for design-construction for a cumulative total of 30 projects.
(FY 1999) One additional water/wastewater project along the Mexican Border will be
certified for design construction.
Explanation: Goal met. The goal for FY 2000 was exceeded by five projects due to the
more rapid implementation of the process that has been developed and
refined by all Border partners. The cumulative total of water/wastewater
projects certified for design-construction along the Mexican border is actually
36 projects, rather than the 30 projects cited in the APG.
Data Source: Manual system.
Data Quality: Data are manually verified.
FY 2000 APG 43: Measurable improvements in Great Lakes ecosystem components.
Performance Measures
- Indicator Indices.
- Model predictions for toxics reductions.
Explanation: Goal met. The goal for FY 2000 was to improve the capacity for measuring
environmental outcomes by developing better models and indicators. This
year protocols for the ten indices were developed for Limnology (Trophic
State, Dissolved Oxygen, and Swimmability), Atmospheric (PCBs, Pesticides,
and PAHs), Biology (Benthic Community Health), Sediments (Sediment
Quality and Remediation), and Fish Contaminants (Safety for Wildlife
Consumption and Safety for Human Consumption). Outcome reporting will
begin in FY 2001 .
Modeling illustrates that atrazine does not appear to breakdown after it enters
the lake; consequently, with continued use, its concentration in Lake Michigan
will likely increase.
Data Source: Data comes from the Great Lakes National Program Office (GLNPO) base
monitoring program, which is a cooperative effort of EPA, the Great Lakes
states, U.S. Geological Survey, and U.S. Fish and Wildlife Service.
Data Quality: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order. GLNPO is audited every three years in
accordance with federal policy for Quality Management. There is greater
uncertainty regarding the representativeness of data collected in near shore
areas because of the greater variability of the near shore environment.
5
9
5
10
10
5
9
No
FY 1999
APG
FY 2000 GPRA Perfomance
11-69
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned
Actual
FY 1999
Actual
BY 2000 AND BEYOND, U.S. GREENHOUSE GAS EMISSIONS WILL BE REDUCED TO LEVELS CONSISTENT
WITH INTERNATIONAL COMMITMENTS AGREED UPON UNDER THE FRAMEWORK CONVENTION ON CLIMATE
CHANGE, BUILDING ON INITIAL EFFORTS UNDER THE CLIMATE CHANGE ACTION PLAN.
FY 2000 APG 44: Assess the consequences of global climate variability at a regional
scale.
(FY 1999) Conduct preliminary assessment of consequences of climate change at
three geographical locations: (Mid-Atlantic, Gulf Coast, and upper Great
Lakes.)
Explanation: Goal met. Results from the three EPA-sponsored Regional Assessments
(Mid-Atlantic, Great Lakes, and Gulf Coast) were included in the First U.S.
National Assessment report, "Climate Change Impacts on the United States:
The Potential Consequences of Climate Variability and Change." Mandated
by Congress in the Global Change Research Act of 1990 and organized by
the U.S. Global Change Research Program (USGCRP), this is the first
comprehensive assessment of the potential impacts of climate change on
the United States.
Data Source: Agency generated material.
Data Quality: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work
products used in Agency decision-making are independently peer reviewed
before their use. EPA has implemented a rigorous process of peer review for
both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry and other federal
agencies.
FY 2000 APG 45: Assist 10 to 12 developing countries with economies in transition in
developing strategies and actions for reducing emissions of
greenhouse gases and enhancing carbon sequestration.
Explanation: Goal met.
Data Source: Manual system.
Data Quality: Data are manually verified.
FY 2000 APG 46: Demonstrate technology for a 70 mpg mid-size family sedan that has
low emissions and is safe, practical, and affordable.
Explanation: Goal met. EPA demonstrated 72 mpg (gasoline equivalent) on a midsize
research chassis using a state-of-the art diesel engine and an EPA-invented,
patented, and developed hybrid drivetrain.
Data Source: EPA uses Fuel Economy Test data for both urban and highway test cycles
under the EPA Federal Test procedure for passenger cars. EPA fuel economy
tests are performed at the National Vehicle and Fuel Emissions Laboratory in
Ann Arbor, Michigan.
Data Quality: The EPA fuel economy tests are performed in accordance with the EPA
Federal Test Procedure and all applicable quality assurance/quality control
procedures. The EPA's National Vehicle and Fuel Emissions Laboratory is
recognized as the world state-of-the-art facility for fuel economy and
emissions testing.
FY 2000 APG 47: Greenhouse gas (GHG) emissions will be reduced from projected levels
by more than 58 million metric ton of carbon equivalent (MMTCE) per
year through EPA partnerships with businesses, schools, state and
local governments, and other organizations thereby offsetting growth in
greenhouse gas emissions above 1990 level by about 20%.
3
10
70 mpg
58
3
10
72 mpg
Data
available
in Spring
2001
2
No
FY 1999
APG
No
FY1999
APG
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EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
(FY 1999) Reduce U.S. GHG emissions by 35 MMTCE per year through partnerships
with businesses, schools, state and local governments, and other
organizations.
Explanation: FY 2000: EPA is on track to meet its FY 2000 GHG emissions reduction
target of 58 MMTCE.
FY 1999: Goal met. Based on information received in FY 2000, EPA
exceeded its FY 1 999 target of 35. Reductions came from energy star
program and multiple sectors including buildings, waste, industrial methane,
transportation, and state and local programs.
Data Source: Baseline data for carbon emissions related to energy use comes from the
Energy Information Agency (EIA). Baseline data for non-carbon dioxide (CO2)
gases are maintained by EPA. EPA reports on facility specific energy-saving
improvements. A carbon-conversion factor is used to convert this information
to estimated GHG reductions. EPA thus maintains a tracking system of
emissions reductions based on the reports submitted by its partners.
Data Quality: EPA has a quality assurance process in place to check the validity of partner
reports. Peer-reviewed carbon-conversion factors are used to ensure
consistency with generally accepted measures of GHG emissions. EPA
regularly evaluates the effectiveness of its climate programs through
interagency evaluations. A 1997 audit by EPA's Office of the Inspector
General concluded that the climate programs the were examined "used good
management practices" and "effectively estimated the impact their activities
had on reducing risks to health and the environment.. ."The voluntary nature
of the program may affect reporting. Some of the data are indirect measures
of GHG emissions modeled using conversion factors and methods to convert
material-specific reductions to GHG emissions reductions.
FY 2000 APG 48: Provide analysis, assessment, and reporting support to Administration
officials, the Intergovernmental Panel on Climate Change, and the
Framework Convention on Climate Change.
Performance Measure
- Greenhouse Gas Inventory.
Explanation: Goal met. The Greenhouse Gas Inventory serves as a basis for national
actions by countries to reduce their greenhouse gas emissions.
Data Source: Information is compiled in accordance with appropriate guidance from the
United Nations Framework Convention on Climate Change and other bodies,
using data primarily from statistical agencies and scientific literature.
Data Quality: All products are subject to internal governmental review as well as full public
review. Secondary data used in analysis are generally peer reviewed during
development.
FY 2000 APG 49: Reduce energy consumption from projected levels by about 60 billion
kilowatt hours, resulting in over $8 billion in energy savings to
consumers and businesses that participate in EPA's climate change
programs.
Explanation: EPA is on track to meet its target.
Data Source: EPA collects partner reports on facility specific improvements (e.g., space
upgraded, kWh reduced).
Data Quality: Same as FY 2000 APG 47.
FY 2000
Planned
1
60
Actual
1
Data
available
in
FY 2001
FY 1999
Actual
46
No
FY1999
APG
No
FY 1999
APG
GPRA Performance
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned
Actual
FY 1999
Actual
BY 2005, OZONE CONCENTRATIONS IN THE STRATOSPHERE WILL HAVE STOPPED DECLINING AND SLOWLY
BEGUN THE PROCESS OF RECOVERY.
FY 2000 APG 50: Provide assistance to at least 50 developing countries to facilitate
emissions reductions toward achieving the requirements of the
Montreal Protocol.
Explanation: Goal met.
Data Source: EPA measures the progress toward international implementation goals by
tracking the number of countries receiving assistance, dollars allocated to
each, and the expected reduction in ozone-depleting substances in assisted
countries. EPA and the United Nations Environment Programme (UNEP)
maintain the database.
Data Quality: EPA receives periodic reports on the financial status of participating
countries from UNER Information from UNEP is then cross-checked with
Agency records to ensure accuracy.
FY 2000 APG 51 : Restrict domestic consumption of class II hydrochlorofluorocarbons
(HCFCs) below 15,240 ozone depletion potential-weighted metric tons
(ODP MTs) and restrict domestic exempted production and import of
newly produced class I chlorofluorocarbons (CFCs) and halons below
60,000 ODP MTs.
(FY 1999) Ensure that domestic consumption of class II HCFCs will be restricted to
below 208,400 Mts and domestic exempted production and import of newly
produced class 1 CFCs and halons will be restricted to below 130,000 MTs.
Explanation: FY 2000: EPA is on track to meet its targets.
FY 1999: Goal met. Based on information received in FY2000. EPA met its
FY 1999 target.
Data Source: EPA tracks progress on restricting domestic consumption of Class II HCFCs
by monitoring industry reports of compliance with phaseout regulations. EPA
maintains these data in its Allowance Tracking System (ATS) database.
Data Quality: The ATS data are subject to a Quality Assurance Plan. In addition the data
are subject to an annual Quality Assurance review. The ATS is programmed
to ensure consistency of the data elements reported by companies.
Inconsistent data are flagged by the tracking system for review and
resolution by the tracking system manager. The ATS receives monthly
information on domestic production, imports and exports from the
International Trade Commission. This information is then cross-checked with
compliance data submitted by reporting companies. Regional inspectors
perform inspections and audits on-site at producers, importers, and
exporters facilities. These audits verify the accuracy of compliance data
submitted to EPA.
50
<1 5,240
<60,000
50
Data
available
in
FY 2001
No
FY1999
APG
<208,400
<130,000
BY 2005, REDUCE THE RISKS TO U.S. HUMAN HEALTH AND ECOSYSTEMS FROM SELECTED TOXICS THAT
CIRCULATE IN THE ENVIRONMENT AT GLOBAL AND REGIONAL SCALES CONSISTENT WITH
INTERNATIONAL OBLIGATIONS.
2000 APG 52: Successfully conclude international negotiations on a global
convention on Persistent Organic Pollutants (POPs) reaching
agreement on POPs selection criteria, technical assistance, and risk
management commitments on specified POPs.
(FY 1999) Obtain international agreement on criteria for selecting POPs to be covered
in a new global POPs treaty, and on capacity-building activities to support
the convention's implementation.
9/30/00
12/15/00
12/15/00
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EPA's FY2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
Explanation: FY 2000: Goal met. The global POPs treaty was concluded in December
2000. Although negotiations were delayed by 3 months into the next fiscal
year, the target was met.
FY 1999: Goal not met. The achievement of this goal was met during FY 2000.
Data Source: Manual system.
Data Quality: Data are manually verified.
BY 2005, INCREASE THE APPLICATION OF CLEANER AND MORE COST-EFFECTIVE ENVIRONMENTAL
PRACTICES ANDTECHNOLOGIES INTHE UNITED STATES AND ABROAD THROUGH
INTERNATIONAL COOPERATION.
FY 2000 APG 53: Deliver 30 international training modules; implement six technical
assistance/technology dissemination projects; implement five
cooperative policy development projects; and disseminate information
products on U.S. environmental technologies and techniques to 2,500
foreign customers.
(FY 1999) Deliver 30 international training modules; implement six technical assistance/
technology dissemination projects; implement five cooperative policy
development projects; and disseminate information products on United
States environmental technologies and techniques to 2,500 foreign
customers.
Explanation: Goal met. EPA met the overall goal. Although efforts on one of the four
performance measures fell short, efforts on another performance measure
greatly exceeded the target. The same number of people were reached, just
through individual process, rather than through training modules. This
shortfall in the delivery of the modules can be attributed to (1) leveling off of
EPA funds, (2) maturation of our programs, and (3) less demand than
originally anticipated. EPA fulfilled all requests for training from countries that
were able to supply their share of the costs.
Data Source: Manual system.
Data Quality: Data are manually verified.
30
6
5
2,500
12
6
5
3,100
16
6
6
2,500
GPRA Performance
11-73
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Goal 7 FY 2000 Obligations
S142M
Note: EPA FY2000 Obligations
were $8,974 million
GOAL 7: EXPANSION OF AMERICANS' RIGHT
TO KNOW ABOUT THEIR ENVIRONMENT
Easy access to a wealth of information about the state of their
local environment will expand citizen involvement and give people
tools to protect their families and their communities as they see fit.
Increased information exchange between scientists, public health
officials, businesses, citizens, and all levels of government will
foster greater knowledge about the environment and what
can be done to protect it.
OVERVIEW
EPA's right-to-know goal reflects the Agency's
commitment to provide the public with information
that will help protect human health and safeguard the
natural environment. The American public has a right
to know about the quality of the air it breathes, the
water it drinks, and the food it eats.
The Agency has shifted the focus of Goal 7 to
better reflect the priorities set by the Agency when it
centralized information policy, management, and
technology in a new Office of Environmental
Information. EPA's vision for Goal 7 is that
environmental information be a strategic resource to
enhance public health and environmental protection.
This vision, adopted in EPA's revised Strategic Plan that
was issued in September 2000, should influence
activities at every stage of the information life cycle:
creation, storage and management, and analysis and
dissemination. This new vision retains the Agency's
commitment to the public's right to know about the
environment, and strengthens it with a new
commitment to ensure the quality, availability, and
security of meaningful environmental information.
To attain this vision, the Agency focused on four
major areas during FY 2000: protecting and enhancing
the quality of environmental information; integrating
information; improving access to information; and
strengthening information security to keep pace with
new threats and technology.
FY 2000 PERFORMANCE
FY 2000 proved to be a successful year for
information management in EPA. The Agency achieved
all of its annual performance goals and measures under
Goal 7 and made progress toward the vision of
information as a strategic resource to enhance public
health and environmental protection, particularly in the
four main areas of focus.
Protecting and Enhancing the Quality of
Environmental Information
To ensure the strong leadership needed for
improving the quality of EPA's information, EPA
established the Quality and Information Council (QIC)
made up of representatives from the Agency's senior
management. In FY 2000 the QIC presided over an
assessment of the quality of information in four of
the Agency's data systems. The assessment showed that
the data in these systems are of high quality and are
appropriate for their intended uses. The QIC also began
to develop a Data Quality Strategy that will be the
blueprint for enhancing the quality of environmental
information.
To address the quality of data in EPA's publicly
available data sets, EPA developed and implemented
the Integrated Error Correction Process (IECP) for
reporting and resolving errors identified by the public.
The IECP was implemented in the Envirofacts Facility
Information system (http://www.epa.gov/enviro) in
May 2000 and has made error-reporting tools more
prominent and easier to use. Itis now used for 11 major
EPA data systems.
Integrating Information
To improve the management, utility, and availability
of environmental information, in FY 2000 the states
and EPA began a joint effort to plan a comprehensive
data exchange network that will provide a wide range
of information that can be shared among EPA, states,
3
:
FY 2000 GPRA Performance
11-75
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I
tribes, localities, the regulated community, and other
data partners. The national network will extend beyond
past EPA information integration efforts and ensure
that future integration efforts by EPA and its partners
and stakeholders are consistent and complementary.
EPAs information integration priorities in FY 2000
emphasized creating the building blocks needed for the
exchange network including establishing common data
standards for environmental information systems,
creating a centralized system for electronic data
exchange, and establishing an electronic registry for
facility identification information.
For integration efforts to succeed, the Agency must
continue to strengthen its partnerships with
stakeholders. EPA, the states, and tribes established the
Environmental Data Standards Council (EDSC) to
identify and develop the next set of data standards to
be used in collecting, storing, and retrieving
environmental data in their respective systems. In
FY 2000 the Agency and its partners took several steps
toward easing the reporting burden, facilitating data
integration, and improving data quality. EPAs Central
Data Exchange received official Toxics Release
Inventory (TRI) submissions from 80 facilities in Illinois
via the Internet. The Agency received the first file with
a digital signature from Pennsylvania and also began
testing data exchanges with six other states, hoping to
conduct exchanges with additional states in FY 2001.
The Facility Registry System, a centrally managed
database that identifies facilities subject to
environmental regulations or of
environmental interest, is now populated
with more than 70,000 records. This system
will contain 250,000 records by September
2001.
EPA and its partners are moving toward
a shared information network. The Agency's
One-Stop Reporting Program creates
incentives for states to reinvent
environmental information management
practices through grants and technical
assistance. States have undertaken a number
of activities under One-Stop, including
expanding web sites to improve access;
establishing links to EPA databases;
integrating isolated, media-specific data sets;
and implementing geographic information
systems (GIS) to map facility locations.
Additional information on the One-Stop
program can be found at http://www.epa.gov/
reinvent/onestop. In FY 2000 the One-Stop Program
met its goal to increase the number of states
participating in the program by nine. There are currently
34 states in the program.
Improving Access to Information
FY 2000 brought a number of significant
achievements in the TRI Program, which publishes data
on toxic pollutants released into the environment. It is
one of EPAs most visible right-to-know programs. On
May 11, 2000 the Agency released the 1998 TBJ Public
Data Release Report, which included data for seven new
industry sectors, including electric utilities; metal mining;
coal mining; chemical wholesalers; petroleum terminals;
solvent recovery; and hazardous waste treatment,
storage, and disposal facilities. These sectors accounted
for nearly 2,000 new facilities and more than 15,000
chemical reports addressing nearly five billion pounds
of toxic chemicals, increasing the quantity of chemicals
accounted for in the TRI Database by 67 percent. The
1998 TRI data are available on EPAs web site at
http://www.epa.gov/tri/tri98. The chart, which
displays trend data for the core set of TRI chemicals
and manufacturing sectors (that is, it does not include
data from the seven new industry sectors), shows a
marked decrease in releases over the past 10 years.
[Note: Goal 4 contains a more in-depth discussion of
the trends in the volume and toxicity of TRI wastes.]
TRI Releases, 1988-1998 (using the 1988 core set of
chemicals and manufacturing sectors)
3500
Off-site Land/Undergound Injection
Land (on-site)
Underground Injection (on-site)
Surface water
Air
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Total releases to air, land, water and underground injection have decreased
by 1.5 billion pounds or 45% since 1988. Data from the seven new industry
sectors that began reporting in 1998 are not included in this graphs.
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In May 2000 EPA upgraded the TRI Explorer, an
Internet tool that provides fast and easy access to reliable
environmental information, making it easier for the
public to identify facilities and chemical release patterns
in their communities. The latest version provides three
times the amount of information available in the
previous version and is available on EPA's web site at
http://www.epa.gov/triexplorer.
Under the TRI Program, EPA is responsible for
establishing reporting thresholds for chemical releases
to the environment. In FY 2000 the Agency published
a final rule lowering the TRI reporting thresholds for
persistent bioaccumulative toxic (PBT) chemicals and
adding seven more PBT chemicals and two PBT
chemical compound categories to the list of toxic
chemicals subject to reporting. The first year of PBT
chemical reporting was calendar year 2000 and the
reports are due to EPA by July 2001.
The Agency met or exceeded all of its established
annual performance measures for the TRI Program.
These included publishing the 1998 TRI Public Data
Release Report, processing 119,000 TRI submissions and
revisions from industry, and continuing work on
peripheral modules to the new version of the TRI
System.
EPA also remains committed to providing real-time
monitoring data to communities through its
Environmental Monitoring for Public Access and
Community Tracking (EMPACT) program (http://
www.epa.gov/empact/index.htm). The EMPACT
Program has continued to expand its assistance to local
communities in building capacity for real-time
monitoring, management, and communication of
environmental information. Currently the program,
through a network of more than 300 community-based
partners, has helped implement real-time environmental
monitoring projects in over 90 cities across the United
States. These partnerships include state and local
governments, tribes, federal agencies, non-pro fit groups,
universities, and other private organizations. In addition
to providing grants directly to local communities and
supporting projects that partner EPA program and
regional offices with local communities, the EMPACT
Program has moved into new areas to increase the
public's right to know through the institution of
technology transfer and integration/networking
projects. These projects will allow the transfer of
existing EMPACT projects into new communities, as
well as the integration of data from multiple projects
to provide a more comprehensive source of
information in a specific community.
EPA reached another milestone in increasing the
public's access to environmental information that affects
their lives on a daily basis. During FY 2000 most
Americans received their first annual drinking water
quality report from their local water supplier. October
19, 1999 was the first federal deadline for these
consumer confidence reports, which tell consumers of
public water systems the source of their local tap water,
contaminants detected, the likely source of the
contaminant, health advice for sensitive populations,
and where to go for more information. These reports
represent the most widespread right-to-know
information provided directly to consumers in EPA's
history. Water systems and states were extremely
successful in getting these reports out on time.
Approximately 53,500 community water systems,
serving approximately 253 million people, met the
statutory deadline.
Communities have a right to know about the different
forces that affect their local environments. EPA's Sector
Facility Indexing Project (SFIP) uses the Internet to
provide the public with facility-level information in five
industrial sectors and is being expanded to also include a
subset of federal facilities. The database brings together
existing information from a number of Agency data
systems and can provide data on a facility's compliance
and enforcement history, production capacity, releases
and spills, and the demographics of the surrounding
community in a single location on the Internet (http://
www.epa.gov/oeca/sfi). EPA is also committed to
making its enforcement-related policy and guidance
documents available to the public. In FY 2000 the
national enforcement and compliance assurance program
exceeded its goal by making 94 percent of its policy and
guidance documents available through the Internet. Refer
to the Tables of Results for further explanation, including
a discussion of the Integrated Data for Enforcement
Analysis system (IDEA), a tool designed specifically for
states, local governments, and federal agencies to access
enforcement data.
EPA is working to ensure that no segment of the
population or no community bears a disproportionate
amount of burden from adverse environmental
conditions. The Agency manages an assistance program
to help communities; state, tribal, and local government
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agencies; grassroots organizations; and other non-
governmental organizations become knowledgeable
about environmental laws, and to address local
environmental and human health concerns. In FY 2000
EPA's Environmental Justice Small Grants Program
awarded 62 grants totaling approximately $900,000. The
Agency has also continued to improve public
consultation by working with the National
Environmental Justice Advisory Council (NEJAC),
which was established in 1993, and particularly by
increasing the number of meetings that focus on issues
(such as permitting) that are central to the concept of
environmental justice for all.
EPA's web site (http://www.epa.gov) continues
to be an important tool for providing the public with
access to environmental information and its popularity
continued to grow in FY 2000. Statistics from the
month of September 2000 showed a 47 percent increase
in the number of visitors over the same period in
FY 1999. Also, in a recent survey by Federal Computer
Week, EPA's site ranked in the top 15 most effective
web sites based on the utility of the information on
the site, its organization, and ease of use. The number
of pages EPA offers reached 525,796 (an 88 percent
increase over FY 1999), and the number of other sites
with links to the EPA site grew to 796,103 (a 25 percent
increase over FY 1999).
For Earth Day 2000 EPA released a new, more user-
friendly version of its web site that included improved
search capabilities and introduced the popular topics
format common to most informational sites. The new
organization and topic buttons help users quickly get
to where they want to go. The "Browse EPA" topics
page has been enhanced so that visitors can more easily
find the information they need within 16 main topic
areas, including water, air, pollution prevention,
enforcement, and environmental management. The
Agency has received many favorable comments on the
redesign from visitors to the site.
Strengthening Information Security
The availability and reliability of environmental
information depend on the security of the technology
c,- platform on which the information resides. EPA made
O
« substantial progress toward ensuring the security of its
^ information assets in FY 2000. Following an audit by
? the General Accounting Office (GAO), EPA
J temporarily disconnected its network from the Internet
to accelerate installation of improved security features.
Since February 2000 the Agency has taken steps to
further separate the entire EPA Wide Area Network
from the Internet; implement better approaches to
monitor, detect, and deter Internet attacks and
unauthorized users; conduct formal reviews of
information security plans; update EPA's regulations for
handling confidential business information and
implementing the Freedom of Information Act to
ensure adequate protection of information; and increase
the Agency's efforts to create a more security-conscious
workforce.
To underscore the importance of these efforts,
during FY 2000 EPA established a special Technical
Information Security Staff to provide a focal point for
protecting the Agency's information. The staff reports
directly to the Agency's Deputy Chief Information
Officer for Technology and is responsible for rapid
enhancement of EPA's technical approach to protecting
the integrity of information. EPA will continue
addressing potential threats to its information systems
in FY 2001.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
EPA's major information-related management
challenges-identified in one or more audits conducted
by EPA's Office of the Inspector General (OIG) and
GAO-focus on several major themes:
• Information management. EPA must continue to
improve the management, comprehensiveness,
consistency, reliability, and accuracy of its data to
help better measure performance and achieve
environmental results.
• Information system security. EPA must enhance the
security of its information systems by minimizing
the possibility of unauthorized access, use,
modification, or destruction of the Agency's
information resources.
• Data accuracy and error correction. EPA must improve
data completeness, compatibility and accuracy.
• Filling data gaps.
• Improving the collection of accurate data.
' Implementing a quality assurance program Agency-wide and
with the states.
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EPA's FY 2000 Annual Report
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• Implementing procedures for data error detection and
correction.
As the discussion in preceding sections of this
chapter shows, EPA, with a focus on information
quality, integration, access, and security, is working to
address these management issues. Although
considerable progress was made in FY 2000, much
remains to be done. Information management at EPA
will be greatly enhanced with the development of a
comprehensive Information Plan that establishes the
framework for strategically identifying the information
the Agency needs; matches the information and
technology resources to meet the need; and establishes
processes for addressing information needs, identifying
potential data collection efficiencies, and seeking out
opportunities to leverage information resources from
outside EPA. Also the environmental information
exchange network will require effort by EPA, the states,
and tribes to move from its current fledgling stage to a
fully operational network. Cultural and organizational
changes in the way EPA, the states, and tribes plan for
and implement new information systems and make
improvements to existing systems will be needed. EPA
will continue to improve the quality of its information
systems and ensure that the Agency has management
procedures in place to maintain an effective, consistent
quality system. These efforts will remain a priority for
the QIC in the future. EPA must also retain its vigilance
over information security and take steps to ensure use
of the best available information security tools.
Many of the Agency's programmatic and
enforcement decisions are based on environmental data
produced by EPAs research and analytical laboratories.
Data that are timely and of the appropriate quality are
critical to understanding environmental processes and
to making decisions that will support the protection of
human health and the environment. The OIG has noted
some concerns about the quality of laboratory data,
which led the Agency to declare laboratory quality
systems practices as an internal Agency weakness. EPA
completed technical reviews of its regional laboratories
during FY 2000 and will complete reviews of the
remaining Agency laboratories in FY 2001. Section III,
FY 2000 Management Accomplishments and
Challenges, provides additional discussion on ongoing
and future corrective actions that will ensure all
environmental data submitted to and used by the
Agency, whether from EPAs or other laboratories, are
produced using appropriate systems and controls and
meet the Agency's data quality needs.
Please see Section III - Management Accomplishments
and Challenges tot a further discussion of the above issues.
RESEARCH CONTRIBUTIONS
Research under Goal 7 supports efforts to enhance
the Agency's ability to protect human health and the
environment by providing sound environmental
information to federal, state, local, and tribal partners.
FY 2000 research concentrated on the development of
data interpretation and risk communication tools to
provide timely, relevant information to the public and
environmental decision makers. Research results that
assist in environmental decision-making were provided
to internal and external users through various tools,
databases, manuals, and guidance. For example in
FY 2000, considerable progress was made in developing
and populating the Environmental Information
Management System (EIMS), a web-based inventory
that focuses on the organization of descriptive
information (metadata) for data sets, databases,
documents, models, projects, and spatial data. The
EIMS design also provides a repository for scientific
documentation that can be easily accessed with standard
web browsers at http://www.epa.gov/eims/
eims.html. Research results in FY 2000 also provided
consensus human health assessments of environmental
substances of high priority to EPA, which were then
incorporated into the Integrated Risk Information
System and made publicly available at http://
www.epa.gov/iris/index.html. EPA believes it is
important for local government bodies and individuals
to have access to this information, which can help them
make more informed choices to protect human health
and the environment.
PROGRAM EVALUATION
In the past few years GAO and OIG have released
more than a dozen audit reports that address issues
related to information quality and information
management at EPA. These reports have guided work
toward improving information management, quality,
and security.
In addition to the findings of GAO and OIG, the
Agency's TRI Program obtained an independent
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FY 2000 GPRA Performance
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assessment of its effort to develop newTRI reporting
software for industry. The new system, called Toxics
Release Inventory Made Easy (TRI-ME), will replace
the Automated TRI Reporting Software (ATRS,
available at http://www.epa.gov/tri/atrs/). TRI-
ME, which is more user-friendly than ATRS, will be
made available to the public to assist businesses in
determining whether or not they need to file TRI
reports. If they are required to submit reports, the
system will provide the necessary forms. The assessment
of the TRI-ME project concluded that TRI-ME is a
beneficial and technically achievable project. Version 1.0
of TRI-ME will be released in spring 2001 as a pilot.
TABLES OF RESULTS
The following tables of results include performance
results for the five FY 2000 Congressional APGs that
appear in Goal 7. In cases where the FY 2000 APG is
associated with an FY 1999 APG, the table includes
the FY 1999 APG below the FY 2000 APG for ease in
comparing performance. Additionally EPA is providing
information on FY 1999 APGs that are not associated
with any APGs in FY 2000.
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
FY 2001 Annual Performance Goals (APGs) under
Goal 7 reflect successful performance in and
performance measurement improvements over
FY 2000. For example, the APG for enhanced public
access to environmental information includes a target
for all ten regions to have a web site with region specific
enforcement and compliance information. This APG
also includes several new measures in FY 2001 focused
on increasing the availability of environmental
information on the Internet. In FY 2000 and continuing
in FY 2001, the Agency has been moving from a focus
on public right to know to a broader focus on quality
environmental information for all decision makers. As
the new organizational structure for information
management has taken shape, the Agency has been
working to refocus the long-term goal and objectives
to reflect EPAs vision of information as a strategic
resource for improving environmental protection. In
FY 2002 the Agency expects to refocus its annual goals
and targets to reflect better this broader vision.
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance
GOAL 7 - EXPANSION OF AMERICAN'S
RIGHTTO KNOW ABOUTTHE ENVIRONMENT
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Planned Actual
Actual
BY 2005, EPA WILL IMPROVE THE ABILITY OF THE AMERICAN PUBLIC TO PARTICIPATE IN THE PROTECTION
OF HUMAN HEALTH AND THE ENVIRONMENT BY INCREASING THE QUALITY AND QUANTITY OF GENERAL
ENVIRONMENTAL EDUCATION, OUTREACH AND DATA AVAILABILITY PROGRAMS, ESPECIALLY IN
DISPROPORTIONALLY IMPACTED AND DISADVANTAGED COMMUNITIES.
FY 2000 APG 54: The Agency will streamline and improve the information reporting
process between state partners and EPA by increasing the number of
state participants in the One Stop Reporting program from 29 to 38.
(FY 1999) The Agency will streamline and improve the information reporting process
between state partners and EPA by increasing the number of participants in
the One Stop Reporting program (for a total of 29).
Explanation: Goal met. In FY 2000 "One Stop" added nine additional states to its roster of
participants for a cumulative total of 34. [Note: The FY 2000 baseline (29
states) and target (38 states) did not take into account the lower than
expected performance in FY 1999 (25 States).]
EPA is now in the process of awarding $500,000 demonstration grants to
these nine additional states to further their data integration efforts, improve
data access, and reduce reporting burden. Additional information on the One
Stop program can be found at http://www.epa.gov/reinvent/onestop/.
Data Source: Manual system. EPA tracks the number of state participants in the program.
Data Quality: Data are manually verified. There are no limitations on the use of this data.
38 states
34 states
25 states
FY 2000 APG 55: Improve public access to compliance and enforcement documents and
data, particularly to high risk communities, through multimedia data
integration projects and other studies, analyses and communication/
outreach activities.
Performance Measures
1. Percent of OECA policy and guidance documents available on the Internet.
2. Increase by 50% the number of states with direct access to Integrated Data for Enforcement
Analysis (IDEA).
Explanation: Goal met.
1. The Agency provides access to a wide array of compliance and
enforcement documents and data via the Internet at http://www.epa.gov/
oeca. In FY 2000 EPA's enforcement programs made 2,146 documents
available.
2. The Agency is also working to improve state access to EPA data systems.
In FY 2000 EPA increased the number of states with direct access to
IDEA from 12 to 34 states by launching an Internet version of the Online
Targeting Information System for states at http://www.epa.gov/idea/otis.
[Note: Prior to FY 2000 states used the EPA mainframe or Windows
version of IDEA. IDEA is a comprehensive system that provides
multimedia information on the environmental performance of EPA
regulated facilities. States can obtain historical profiles of EPA
inspections, enforcement actions and associated penalties, and toxic
chemical releases.]
Data Source: Manual system. EPA tracks the dates documents are issued and uploaded to
the Internet and monitors usage of IDEA.
Data Quality: Data are manually verified. There are no limitations on the use of this data.
No
FY 1999
APG
90%
21 states
94%
34 states
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY1999
Actual
FY 2000 APG 56: Ensure that EPA's policies, programs and activities include public
meetings, address minority and low income community issues so that
no segment of the population suffers disproportionately from adverse
health or environmental effects, and that all people live in clean, healthy
and sustainable communities consistent with Executive Order 12898.
(FY 1999) Provide over 100 grants to assist communities with understanding and
address Environmental Justice (EJ) issues.
Performance Measures
1. Number of EPA-sponsored public meetings held where disproportionately disadvantaged
communities participate.
2. Number of grants awarded to low income, minority communities for addressing environmental
problems.
Explanation: Goal met. EPA is working to address this broad goal in a variety of ways and
has established two surrogate indicators of progress:
1. EJ related public meetings, which help guide the Agency's national EJ
program. In FY 2000 the number of meetings, which focused on issues
such as facility permitting in low income communities and the health
effects of populations living near multiple pollution generating facilities,
exceeded the target.
2. EJ grants to community-based organizations working to carry out projects
that increase citizen involvement in EJ issues. In FY 2000 the Agency
received fewer eligible grant applications than expected. As a result, EPA's EJ
Small Grants Program issued 62 grants totaling approximately $900,000.
[Note: approximately $135,000 came from EPA's Regional offices.]
Additional information on the Agency's EJ activities, including meeting
summaries and grant applications, as well as activities associated with
the federal EJ interagency workgroup can be found at
http://www.epa.gov/oeca/ej.
Data Source: Manual system. Action items from public meetings and the number of EJ
grants are tracked internally. The grants are also entered into the Agency's
grant tracking system for financial tracking purposes.
Data Quality: Data are manually verified. There are no limitations on the use of this data.
100
grants
25 mtgs.
70 grants
31 mtgs.
62 grants
BY 2005, EPA WILL IMPROVE THE ABILITY OF THE PUBLIC TO REDUCE EXPOSURE TO SPECIFIC
ENVIRONMENTAL AND HUMAN HEALTH RISKS BY MAKING CURRENT, ACCURATE SUBSTANCE-SPECIFIC
INFORMATION WIDELY AND EASILY ACCESSIBLE.
FY 2000 APG 57: All community water systems (CWSs) will issue annual consumer
confidence reports according to the rule promulgated in August 1998.
(FY 1999) EPA will partner with the states in implementation activities that will ensure
all public water systems - large, medium, and especially small - are informed
of both the requirements of the consumer confidence report regulation and
implementation tools for complying with this rule.
Performance Measures
- CWSs that will comply with the regulation to publish consumer confidence reports.
- Population served by CWSs that will comply with the regulation to publish consumer
confidence reports.
Explanation: Goal met. The number of CWSs is constantly changing due to consolidation
and other events that change the size of the regulated universe. By the fourth
quarter of FY 2000 the total number of CWSs in the United States had
dropped to approximately 54,000, down from an estimated universe of
55,000 a few years earlier, which the Agency used to develop this measure.
-55,000
249
million
53,500
252.8
million
50 states
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY1999
Actual
Approximately 500 systems (<1% of the universe) did not issue consumer
confidence reports by the October 19, 1999 deadline. These are very small
systems, e.g., trailer parks. States and EPA are working with these systems
to provide technical assistance. The Agency has already followed up with a
number of actions to assure compliance and will continue to do so as
appropriate. Many of these systems have since provided the information and
EPA expects the remainder to comply with this regulation in FY 2001.
Data Source: The Safe Drinking Water Information System (SDWIS) serves as the central
repository for data on both the states' implementation of and compliance with
existing and new drinking water regulations. States and EPA regions (for
"direct implementation" jurisdictions) enter data representing public water
systems characteristics and drinking water monitoring into the SDWIS
database.
Data Quality: SDWIS has a full suite of software-based edit checks and quality assurance
procedures to aid accurate data entry. However, there are recurrent reports of
discrepancies between national and state databases, as well as specific
mis-identifications reported by individual utilities. Given the particular need for
confidence in the completeness and accuracy of data about drinking water
quality, EPA designated SDWIS content as an internal Agency weakness in
1999 under the Federal Managers' Financial Integrity Act.
FY 2000 APG 58: Process all submitted facility chemical release reports; publish annual
summary of Toxics Release Inventory (TRI) data; provide improved
information to the public about TRI chemicals; and maximize public
access to TRI information.
(FY 1999) Process 110,000 facility chemical release reports, publish the TRI Data
Release Report, and provide improved information to the public about TRI
chemicals, enhancing community right-to-know and efficiency processing
information from industry.
Performance Measures
1. TRI Public Data Release.
2. Form R's Processed*.
3. Toxics Release Inventor System (TRIS) database complete and report issued.
Explanation: Goal met.
1. There is a 15 to 18 month data lag associated with the release of TRI
data due to reporting cycles and data QA/QC. In FY 2000 EPA issued The
1998 TRI Public Data Release Report (May 11, 2000). TRI is a valuable
source of information regarding toxic chemicals that are being used,
manufactured, treated, transported, or released into the environment. The
most recent report included toxic release data from seven additional
industrial sectors. As a result of the inclusion of these seven new sectors,
together with the manufacturing industry, the total amount of toxic
emissions reported in the United States was 7.3 billion pounds. Additional
information on TRI can be found at http://www.epa.gov/tri.
2. *The performance measure as stated above is inaccurate. Facilities are
required to report their annual TRI data (Form Rs or Form As) to EPA by
July of the following year. Form R, a detailed report of facility activity and
emissions, is used when a facility has exceeded EPA established
threshold levels. Form A, a less detailed form, is used when a facility
releases amounts of TRI chemicals that are below the established
threshold. The Agency processes all the reports it receives. This includes
Form Rs and Form As as well as revisions and the FY 1999 and FY 2000
results include Form Rs, Form As, and revisions. In FY 2000 the Agency
processed 119,000 chemical submissions and revisions, which covered
the calendar year 1999 reporting period.
3. The Agency uses the TRIS data management system to process and
store TRI data. Several peripheral modules are scheduled to be
completed in time to issue the 1999 TRI Report (2/2001).
117,171
1
110,000
2/2001
1
119,000
On target
&
1
GPRA Performance
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Data Source: Facility chemical release reports (Form Rs & Form As) submitted by the
regulated community are input into and stored in the TRIS data management
system.
Data Quality: The quality of the data contained in the TRI chemical reports is dependent
upon the quality of the data that the reporting facility uses to estimate its
releases and other waste management quantities. While the Agency does not
control the quality of the data submitted by the regulated community, the
Agency does work with the regulated community to improve the quality of
their estimates. EPA also provides verification that the information delivered
by the facilities is correctly entered into TRIS. Use of these data should be
based on the user's understanding that the Agency does not have direct
assurance of the accuracy of the facilities' measurement and reporting
processes.
FY 2000
Planned
Actual
FY 1999
Actual
FY 1999 ANNUAL PERFORMANCE GOALS
(NO LONGER REPORTED FOR FY 2000)
Increase compliance with right-to-know reporting requirements by conducting 1,300 inspection and undertaking
200 enforcement actions.
By 1999, complete five to seven monitoring pilot projects in Environmental Monitoring for Public Access and Community
Tracking (EMPACT) cities, implement timely and high quality environmental monitoring technology in five to seven
EMPACT cities.
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Goal 8 FY 2000 Obligations ^rkiĄo orkiixTTk crnmrr, Ym/rnnsvirark
$264M GOAL 8: SOUND SCIENCE, IMPROVED
UNDERSTANDING OF ENVIRONMENTAL RISK,
AND GREATER INNOVATION TO ADDRESS
ENVIRONMENTAL PROBLEMS
EPA will develop and apply the best available science for addressing
current and future environmental hazards, as well as new approaches
Note: EPA FY2000 Obligations
were $8,974 million
toward improving environmental protection.
OVERVIEW
Sound science allows EPA to identify the most
important sources of risk to human health and the
environment and therefore underpins the Agency's
priorities and policies. It is critical that research and
scientific assessment be integrated with EPA's policy
and regulatory activities. As the Agency addresses
increasingly complex issues in the future, its research
programs will continue to provide the understanding
and technologies needed to detect, abate, and avoid
public health and environmental problems. Under Goal
8 EPA conducts core research to improve our
understanding of the fundamental principles underlying
risk assessment and risk management. Additionally EPA
conducts problem-driven research to address specific
environmental risks associated with a number of the
other strategic goals, and descriptions of this research
can be found in the discussion of these goals.
Goal 8 also highlights EPA's commitment to
innovative, continuous improvement in how the Agency
conducts its business and accomplishes its mission. This
commitment, for instance, encourages the use of expert
review and collaborative partnerships to ensure the
highest level of quality in the Agency's work. Building
on its scientific, economic, and regulatory research and
analysis activities, EPA strives to make environmental
protection more flexible, efficient, and effective, while
minimizing the burden on the regulated community.
FY 2000 PERFORMANCE
Understanding Ecosystems
EPA's ecosystems research program serves a key
integrative function by enhancing the basic
understanding of the processes that govern ecosystem
function as well as the technology needed to model
those processes. In FY 2000 EPA continued to conduct
research to develop the scientific understanding needed
to measure, model, maintain, and restore the integrity
and sustainability of ecosystems now and in the future.
The Agency focused on developing verified decision
support tools and methods and technologies to improve
or maintain ecosystem conditions at the watershed scale.
Efforts included a methods manual for the collection
of biological, chemical, and physical habitat samples
and a report on relationships between wetlands and
land-use patterns and the quality of streams and biotic
communities in watersheds of the Lake Superior Basin.
In 1989, concurrent with the beginning of the
Environmental Monitoring and Assessment Program
(EMAP), EPA began the Mid-Atlantic Integrated
Assessment (MAIA) to provide integrated
environmental assessment information as input into
future environmental policy decisions. Ten years of
representative regional monitoring provided by EMAP
have produced several interim assessment products that
decision-makers are already using. These reports include
An Ecological Assessment of the United States Mid-Atlantic
Region: A Landscape Atlas (1998) and The Condition of the
Mid-Atlantic Estuaries (1999). A report on the state of
Mid-Atlantic region highland streams was produced in
FY 2000. The next phase of MAIA is the Regional
Vulnerability Assessment (ReVA), part of EPA's
FY 2000 initiative for the National Science and
Technology Council's cross-Agency Integrated Science
for Ecosystem Challenges (ISEC). ReVA will assess and
compare current and future (up to 25 years hence)
ecological vulnerabilities in the region to improve
targeting of restoration and risk reduction activities.
(http://www.epa.gov/maia/html/reports.html).
FY 2000 GPRA Performance
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°
The Agency has also begun similar studies in the
western United States and in coastal areas across the
nation using EMAP monitoring and sampling
procedures developed for use in the Mid-Atlantic
region. For example, the Western EMAP Study will test
the approach used by MAIA on a larger scale in a region
that contains ecosystems, such as arid zones, not found
in the Mid- Atlantic region. FY 2000 also marked the
first year of the Coastal 2000 Initiative, a national
demonstration of the EMAP monitoring design that
will provide a comprehensive, statistically valid estimate
of the health of the nation's estuaries.
Understanding and Detecting Risks to the
Environment and Human Health
Advances in the state of environmental science have
illustrated that new risk assessment methods are needed
to investigate complex environmental and human health
issues across EPAs environmental protection programs.
The unique susceptibilities of infants and children to
exposure to toxic substances is an example of such issues.
The Agency is coordinating efforts to develop new
methods, models, and measures to address three major
areas of scientific uncertainty in human health risk
assessment (1) measuring and modeling human
exposure, (2) identifying or characterizing hazards and
dose response, and (3) characterizing and assessing
variation in human exposure and susceptibility to
disease. In FY 2000 EPA developed risk assessment
guidance and regional assessments for evaluating risks
to children exposed to environmental contaminants. In
addition the Agency continued its support of the eight
pediatric research centers established in 1998 and issued
a solicitation for proposals to establish a ninth center
to focus on non-asthma-related research issues, such
as developmental disorders.
In recent years EPA has begun moving toward a
more proactive approach for protecting human and
environmental health by anticipating potential risks
before they become major concerns. FY 2000 research,
for example, focused in part on endocrine disrupters.
Specifically FY 2000 research products included
protocols to screen pesticides and chemicals found in
food and drinking water sources for their potential to
cause estrogenic and other endocrine effects. EPA will
use these methods to implement the screening and
testing program requirements of the Food Quality
Protection Act and the Safe Drinking Water Act
Amendments of 1996. Further research identified
specific developmental and reproductive effects (and
the mechanisms behind them) caused by certain
endocrine-disrupting chemicals. Benefits of this work
and similar efforts will include an improved framework
for Agency decision-making, increased ability to
anticipate and perhaps deter serious environmental risks,
and enhanced communication with the public and other
stakeholders.
In addition to the developments in risk assessment
data, EPAs efforts over the past year produced further
improvements in the economic information and
methods available for use in the Agency's analyses. In
FY 2000 the Agency continued to convene workshops
for its ongoing economic research and policy series,
bringing economists together to explore important
topics, such as economic assessments of land use
policies, community-based environmental decision-
making, and methods applied by different government
agencies to characterize benefits from enhanced food
safety. EPA held additional workshops in collaboration
with the Science Advisory Board to better integrate the
methods and tools used to assess and manage human
health risks, with a focus on characterizing cancer health
effects. Also EPA and the National Science Foundation
supported a series of new economic research
solicitations directed at such priorities as market-based
mechanisms and economic incentives, corporate
environmental performance and the effectiveness of
government intervention, and characterizing children's
health benefits.
Understanding How to Prevent Pollution
Research under Goal 8 has also focused on
developing innovative pollution prevention strategies
and technologies. In FY 2000 EPA undertook research
to develop methods and decision tools that are more
quantitative and easier for stakeholders and decision-
makers to use when considering pollution prevention
strategies, including computer-based tools for chemical
and industrial processes. FY 2000 research also
accelerated the adoption and incorporation of pollution
prevention technologies by developing, testing, and
demonstrating techniques applicable across economic
sectors. In FY 2000 56 innovative technologies were
verified through EPAs Environmental Technology
Verification Program, which evaluates the performance
of pollution prevention technologies that are ready for
commercial application.
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Testing Sector- and Facility-Based Innovations
Another important program under Goal 8 is Project
XL, which stands for "eXcellence and Leadership."
Project XL is a national initiative that tests innovative
ways of achieving better and more cost-effective public
health and environmental protection. EPA is using the
information obtained and lessons learned from Project
XL in redesigning its current regulatory and policy-
setting approaches. EPA met its goal of 50 signed
project agreements by the end of October 2000. To
increase the opportunities for broader incorporation
of innovative approaches into EPA programs, the
Agency is increasing its efforts to identify and develop
pilot projects targeted to specific programmatic needs.
For example, Project XL is running a series of five
projects designed to test alternative approaches for
streamlining the water pretreatment program. There are
also several projects to test the value of bio-reactor
technology for solid waste landfills. The use of this
technology could decrease emissions of landfill gas,
accelerate waste decomposition, enhance groundwater
protection, and increase the waste capacity of existing
landfills. More information on Project XL is available
on the Internet at http://www.epa.gov/ProjectXL.
Regarding sector-based innovations, EPA
developed the Sector Program Plan 2000-2005, which has
been endorsed by external stakeholders and will
complete the integration of sector approaches into core
federal and state environmental programs. EPA showed
continuing progress in the Metal Finishing Strategic
Goals Program, through which over 400 facilities in 21
states have, to date, voluntarily reduced sludge
shipments to landfills by over 120 million pounds,
wastewater discharges by 380 million gallons, and
organic chemical releases by 700,000 pounds. EPA also
developed new partnerships with four other industry
sectors participating in the Sustainable Industries
Program.
In FY 2000 EPAs Regional Geographic Initiative
(RGI) supported 137 projects, of which 58 were new
projects fostering partnerships in additional parts of
the country. All of the projects support Agency
initiatives; contribute to at least one of the air, water,
waste, toxics, and enforcement environmental goals; and
support the overall national EPA mandates. For
example, Region 4's Chattanooga Air Toxics Study
consolidated monitoring data to develop a risk
assessment contributing to Goal 1 air toxics
FY 2000 Distribution of Regional Geographic
Initiative Projects Across Agency Goals
Clean Water
25.9%
Pollution Prevention
16.0%
Better Waste Management
7.4%
Right-to-Know
16.7%
Enforcement & Compliance
Assurance
3.1% Science & Innovation
14.8%
characterization work. In addition Region 8's Missouri
River Benthic Fish Study finished field work and moved
into data analysis, contributing to Goal 2 clean water
efforts.
Goal 8 efforts are also geared toward providing field
sampling, analytical and data management support, and
quality assurance to Agency programs nationwide. To
ensure the highest quality scientific data is being
generated by the Regional Science and Technology
(RS&T) laboratories, the regions participated in a
laboratory assessment program, which included internal
reviews and external audits. In addition RS&T "Centers
of Applied Science" (CAS) reflect state-of-the-art,
nationally recognized expertise responding to Agency
and stakeholder needs. In FY 2000 CAS developed
methods and standard operating procedures for dioxins
and furans, polychlorinated biphenyl (PCB) congeners,
explosives, arsenic speciation, endocrine disrupters, and
fish tissue extraction. EPA continues to partner with
other federal, state, and local agencies to locate, assess,
and share environmental data. These efforts build
Agency capacity and assist partner agencies by providing
technical and analytical support and by converting
environmental data of sound and credible quality into
useful decision-making information.
Improving the Production and Use of Science at
EPA Through the Science Advisory Board
EPAs Science Advisory Board (SAB) provides
independent peer review advice to the Administrator
and Congress about the scientific underpinnings of
Agency decisions to make a positive difference in the
FY 2000 GPRA Performance
11-87
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production and use of science at EPA. In FY 2000 the
SAB conducted reviews on key pollutants, including
arsenic in drinking water and airborne particulate matter;
risk assessment methodologies and methods, such as
environmental technology verification; and policies,
including the use of data from the testing of human
subjects. The Board also held workshops to develop
ways to merge the social sciences with the biological,
chemical, and physical sciences to inform Agency
decisions. FY 2000 saw the publication of Toward
Integrated Environmental Decision-making. The
recommendations of this SAB report (http://
www.epa.gov/sab/ecirp011.pdf) hold the promise of
a future of environmental protection that integrates
science—and the scientific community—into the
broader social enterprise of decision making in newer,
more productive, more efficient ways.
SUMMARY OF FY 2000 PERFORMANCE
In summary EPA made significant progress toward
this strategic goal in FY 2000. The Agency continued
to develop and apply the highest quality scientific
methods and tools as it sought solutions to this nation's
most pressing public health and environmental
problems. EPA also looked to identify those areas that
may pose hazards in the future. In addition the Agency
continued to address environmental and human health
issues through the use of new and innovative
approaches that are not only scientifically sound, but
also effective, efficient, and flexible.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
In FY 2000 EPA continued its efforts to reinvent
environmental regulation to achieve better results
through the use of innovative and flexible approaches
to environmental protection, encourage states, tribes,
communities, and citizens to share in environmental
decision making, make it easier for businesses to comply
with environmental laws, and eliminate unnecessary
paperwork. Lessons learned from Project XL pilots are
being incorporated into permanent policy changes in
EPAs programs and regional offices. The Agency also
S launched the Performance Track Program during
<&
•3 FY 2000, which offers high performing companies a
<*> new, more flexible regulatory path. EPA will continue
66
"3 to involve stakeholders from national and local
environmental groups, industry, states, environmental
justice organizations, and other interested parties in the
design and implementation of these projects and
activities.
Please see Section III - Management Accomplishments
and'Challenges'for a further discussion of the above issues.
PROGRAM EVALUATION
During the past year, EPA has actively participated
with the National Academy of Public Administration
in the Academy's evaluation of Agency and state
reinvention efforts. The Agency reviewed 17
commissioned studies and the Academy's draft report.
The final report published in November 2000 made
sweeping recommendations to reinvigorate the whole
environmental regulatory framework and specifically
addressed new approaches for such issues as watersheds,
emissions trading systems, adoption of environmental
management systems, innovative approaches to
permitting, and Superfund reform (http://
www.napawash.org/napa/index.html).
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
Goal 8 Annual Performance Goals (APGs) in
FY 2001 reflect generally successful performance in
FY 2000.
Environmental research is long-term in nature, and
its outcomes are often difficult to predict. Research
outcomes do not necessarily occur on a regular basis,
but rather at sometimes unexpected points over the
lifetime of the work and beyond. A scientific model
might yield benefits when it is used in the development
of an environmental standard some time after work on
the model has ended. Therefore APGs related to EPA's
research programs represent those points in time when
Agency scientists and engineers hope their work will
produce noteworthy accomplishments.
In FY 2000 EPA launched a multiyear planning
initiative that charts these critical junctures. This effort
has the potential to dramatically streamline and improve
the flow of performance results into future research
planning. Under the initiative, Agency scientists have
formed work groups to develop multiyear plans (MYPs)
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EPA's FY 2000 Annual Report
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for major research programs. These MYPs remain
consistent with the Agency's Government Performance
and Results Act structure and identify long-term goals
for various research strategies. MYPs also present a set
of measurable steps that enable achievement of the
long-term goals. Although the MYPs cover a period of
at least 5 years, they are living documents that are
updated annually. Multiyear planning will allow EPA
decision makers to better understand the impact of
annual planning decisions on future research efforts
and resulting performance achievements.
TABLES OF RESULTS
The following tables of results includes
performance results for the FY 2000 five Congressional
APGs that appear in Goal 8. In cases where the FY 2000
APG is associated with an FY 1999 APG, the table
includes the FY 1999 APG below the FY 2000 APG
for ease in comparing performance. Additionally EPA
is providing information on FY 1999 APGs for which
data was not available when the FY 1999 report was
published as well as those FY 1999 APGs that are not
associated with any APGs in FY 2000.
1
FY 2000 GPRA Performance 11-89
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance I
~~ ~~ fol
I A (Goals I -t (Goals
1^ I Mot I • jNotMet
GOAL 8 - SOUND SCIENCE, IMPROVED UNDERSTANDING
OF ENVIRONMENTAL RISK, AND GREATER INNOVATION
TO ADDRESS ENVIRONMENTAL PROBLEMS
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Planned Actual
Actual
BY 2008, PROVIDETHE SCIENTIFIC UNDERSTANDING TO MEASURE, MODEL, MAINTAIN, OR RESTORE, AT
MULTIPLE SCALESJHE INTEGRITY AND SUSTAINABILITY OF ECOSYSTEMS NOW AND IN THE FUTURE.
2000 APG 59: Report on monitoring findings in the Mid-Atlantic Region as a cost
effective means of measuring the condition of these systems.
(FY 1999) Complete and evaluate a multi-tiered ecological monitoring system for the
Mid-Atlantic Region and provide select land cover and aquatic indicators for
measuring status and trends (2001).
Performance Measures
- A final report on the extent and magnitude of fish tissue contamination in small, wadeable
streams in the Mid-Atlantic Region as means of identifying high risk areas.
- Final report on the relationship between macro-invertebrate and periphyton assemblages and
chemical and physical stressors to verify the applicability of these biological indicators in the
Mid-Atlantic Region.
Explanation: Goal met. Reports were completed on monitoring findings regarding fish
tissue contamination and biological indicators in the Mid-Atlantic Region.
This research supports the long-term goal to design a more cost-effective
scientifically sound environmental report card on these ecosystems in the
future. The research also supports further development of ecological and
biological criteria, improved designs for monitoring surface water quality, new
indicators to assist in diagnosing degraded streams, rivers and estuaries,
and development of better methods for evaluating improvements.
Data Source: Agency generated material.
Data Quality: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work
products used in Agency decision-making are independently peer reviewed
before their use. EPA has implemented a rigorous process of peer review for
both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry and other federal
agencies.
Target
year is
FY 2001
BY 2008, IMPROVE THE SCIENTIFIC BASIS TO IDENTIFY, CHARACTERIZE, ASSESS, AND MANAGE
ENVIRONMENTAL EXPOSURES THAT POSE THE GREATEST HEALTH RISKS TO THE AMERICAN PUBLIC BY
DEVELOPING MODELS AND METHODOLOGIES TO INTEGRATE INFORMATION ABOUT EXPOSURES AND
EFFECTS FROM MULTIPLE PATHWAYS.
FY 2000 APG 60: Develop risk assessment guidance and regional assessments
concerning risks to children exposed to environmental contaminants.
Performance Measures
- Assess pesticide exposures to children in Washington, Minnesota, and Arizona.
- Report on the use of mechanistic data in developmental toxicity risk.
- Develop exposure factors handbook for children.
Explanation: Goal not met. Two of the three critical performance measures supporting this
annual performance goal were completed on schedule. The Exposure
Factors Handbook was not completed due to the extension of the public
comment period. The final handbook will be released in FY 2001. Reports on
the use of mechanistic data in developmental toxicity risk assessment and
assessments of pesticide exposures to children in Washington, Minnesota,
and Arizona, were published in FY 2000.
No
FY1999
APG
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EPA's FY 2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Data Source: Same as FY 2000 APG 59.
Data Quality: Same as FY 2000 APG 59.
FY 2000
Planned
Actual
FY 1999
Actual
BY 2008, ESTABLISH CAPABILITY AND MECHANISMS WITHIN EPA TO ANTICIPATE AND IDENTIFY
ENVIRONMENTAL OR OTHER CHANGES THAT MAY PORTEND FUTURE RISK, INTEGRATE FUTURES PLANNING
INTO ONGOING PROGRAMS, AND PROMOTE COORDINATED PREPARATION FOR AND RESPONSETO CHANGE.
FY 2000 APG 61 : Develop tools to identify hazards and formulate strategies to manage
risks from exposure to endocrine disrupting chemicals (EDCs) capable
of inducing adverse effects in humans and wildlife.
(FY 1999) Initiate field exposure study of children to two endocrine disrupting
chemicals.
Performance Measures
- Workshop report on Endocrine Disrupter Screening and Testing Advisory Committee
(EDSTAC) screening process for EDCs and application of the EDSTAC testing program for
chemical hazard and risk assessment.
- Characterization of environmental agents as risk factors in human prostate cancer.
- Reports on endocrine and other effects in exposed women and their offspring in a
contaminated cohort.
- Reports on the molecular mechanisms underlying estrogen receptor functions in mice.
- Development and refinement of test methods for use in Tier 1 testing of potential EDCs.
- Development of amphibian assay for use in hazard identification.
Explanation: Goal met. Tools were developed to help identify hazards and formulate
strategies to manage risks from exposure to EDCs. The finding of one report
indicated that daughters of mothers exposed to poly-brominated biphenols
(PBBs) begin menarche earlier than daughters of unexposed mothers.
Methods were developed and refined for use in Tier 1 testing of potential
EDCs. Reports were published on the molecular mechanisms underlying
estrogen receptor (ER) functions in ER knockout mice and on the
development of an amphibian assay used in hazard identification. A position
paper that helped determine the application of the EDSTAC testing program
for chemical hazard and risk assessment was published. Work characterizing
environmental agents as risk factors in human prostate cancer was delayed,
but this delay did not prevent substantive achievement of this goal.
Data Source: Same as FY 2000 APG 59.
Data Quality: Same as FY 2000 APG 59.
1
1
2
2
2
1
1
0
2
2
2
1
Target
year is
FY 2008
BY 2006, DEVELOP AND VERIFY IMPROVED TOOLS, METHODOLOGIES, AND TECHNOLOGIES FOR MODELING,
MEASURING, CHARACTERIZING, PREVENTING, CONTROLLING, AND CLEANING UP CONTAMINANTS
ASSOCIATED WITH HIGH PRIORITY HUMAN HEALTH AND ENVIRONMENTAL PROBLEMS.
FY 2000 APG 62: Complete development of one or more computer-based tools which
simulate product, process, or system design changes, and complete
proof-of-process structure for one or more generic technologies
(applicable to more than one environmental problem) to prevent or
reduce pollution in chemicals and industrial processes.
Performance Measures
- Complete development of PARIS II Software tool to design environmentally benign solvents,
and development and integration of Waste Reduction (WAR) Algorithm into commercially
available chemical process simulator.
- Complete Beta testing of a decision support tool for life-cycle analyses of municipal waste
management options.
9/30/00
9/30/00
9/30/00
9/30/00
No
FY 1999
APG
1
FY 2000 GPRA Perfomance
11-91
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•a
o
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Explanation: Goal met. EPA completed the development of two software programs: the
PARIS II Software, a tool to design environmentally benign solvents; and the
WAR Algorithm, version 1.0, a commercially available chemical process
simulator. Furthermore, the beta testing of a decision support tool used in
life-cycle analysis for municipal solid waste management options was
completed.
Data Source: Same as FY 2000 APG 59.
Data Quality: Same as FY 2000 APG 59.
FY 2000
Planned
Actual
FY1999
Actual
BY 2005, EPA WILL INCREASETHE NUMBER OF OPPORTUNITIES FOR AND APPLICATIONS OF
SECTOR-BASED APPROACHES TO ENVIRONMENTAL MANAGEMENT BY 150% OVER 1996 LEVELS.
FY 2000 APG 63: All 50 Project XL projects will be in implementation.
(FY 1999) 50 Project excellence and Leadership (XL) Projects will be in development or
implementation, an increase of 23 projects over 1998.
Explanation: Goal met. There are 50 XL projects in place and entering the implementation
phase.
Data Source: Manual system.
Data Quality: Data are manually verified.
50
50
24
FY 1999 ANNUAL PERFORMANCE GOALS
(ACTUAL PERFORMANCE DATA AVAILABLE IN FY 2000 AND BEYOND OR WITH PERFORMANCE
TARGETS BEYOND FY 2000)
Planned
Actual
FY 1999 APG: Develop and verify innovative methods and models for assessing the
susceptibilities of population to environmental agents, aimed at enhancing
risk assessment and management strategies and guidelines.
Explanation: In FY 2000 work continued to quantify the exposure of children to environmental
agents such as organophosphates, trazines, and pyrethroids.
Data Source: Same as FY 2000 APG 59.
Data Quality: Same as FY 2000 APG 59.
Target year
is FY 2008
FY 1999 ANNUAL PERFORMANCE GOALS
(NO LONGER REPORTED FOR FY 2000)
Analyze existing monitoring data for acid deposition and Ultraviolet-B (UVB) and implement a multiple site UVB
monitoring system for measuring status and trends.
Provide ecological risk assessment case studies for two watersheds, final guidelines for reporting ecological risk
assessment, and ecological risk assessment guidance and support.
Produce first generation exposure models describing residential exposure to pesticides.
Improve Computational Efficiency of Fine Particulate Model by 25%.
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EPA's FY 2000 Annual Report
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Goal 9 FY 2000 Obligations
$371M
GOAL 9: A CREDIBLE DETERRENT TO POLLUTION
AND GREATER COMPLIANCE WITH THE LAW
EPA will ensure full compliance with laws intended to
protect human health and the environment.
Note: EPA FY2000 Obligations
were $8,974 million
OVERVIEW
Protecting the public and the environment from
risks posed by violations of environmental requirements
is basic to EPA's mission. By using tools such as
assistance designed to prevent violations, incentives to
motivate compliance, and enforcement actions to
correct violations and deter others, EPA obtains
continuous improvement in compliance with standards,
permits, and other requirements. As a result human
health is protected, environmental risks are mitigated,
and regulated facilities do a better job of environmental
management.
In partnership with the states and federally
recognized tribes, EPA's enforcement and compliance
assurance program regulates approximately 8 million
entities that range from community drinking water
systems to pesticide users to major industrial facilities.
Compliance data are maintained for approximately 1.7
million of these entities. These include municipal
sewage treatment plants, large manufacturing and
industrial operations, and hazardous waste treatment
and storage facilities. The remaining 6.5 million entities
range from small business facilities to individual
property owners. The variety of regulatory requirements
under the various environmental statutes and the large
and diverse universe of regulated entities require that
EPA use many different tools and strategies to maximize
compliance.
EPA addresses compliance problems through a
comprehensive, strategic compliance assurance
approach. This approach includes a strong program of
compliance monitoring, civil and criminal enforcement,
compliance incentives and compliance assistance. The
Agency's experience has shown that using these tools
in a strategic, targeted way addresses noncompliance
most effectively. A strong enforcement effort provides
the foundation for the national compliance program,
motivates regulated entities to seek assistance and use
incentive policies, and provides fairness in the
marketplace by ensuring that noncomplying facilities
do not gain an unfair competitive advantage.
As a result of the delegation authority provided
for by most statutes, state, tribal, and local governments
bear much of the responsibility for ensuring the
compliance of regulated facilities and other entities.
Nationally, states conduct a large majority of all
federally-related inspections and formal enforcement
actions, and provide most of the data retained in EPA's
enforcement and compliance data systems.
FY 2000 PERFORMANCE
FY 2000 was a successful year in achieving
compliance. The national enforcement and compliance
program met or exceeded 80 percent of its annual
performance goals. As a result EPA made great strides
toward meeting its mission of protecting human health
and safeguarding the natural environment.
Enforcing the Law, Achieving Results
Enforcement actions brought by EPA against a
noncomplying facility often result in a reduction in the
amount of pollutants the facility discharges to the air,
water, or land. EPA's FY 2000 enforcement actions
required reduction or prevention of emissions or
discharges of an estimated 714 million pounds1 of
pollutants and required the treatment of an additional
1.3 billion pounds of contaminated soils, sediments, or
water. Concluded enforcement actions also require
changes in facility practices that bring environmental
I
PP
1The level of pollutants reduced includes 334 million pounds from FY 2000 civil
enforcement actions and 380 million pounds (190,000 tons of nitrogen oxide (NOJ and
sulfur dioxide (SO,)) from the first year of the Tampa Electnc Company (TECO) settlement.
FY 2000 GPRA Performance
11-93
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8
§
KEY ENFORCEMENT OUTCOMES
Enforcement cases concluded in FY 2000 produced
the following results:
• 2 billion pounds of pollutants were reduced or
treated.
• 75 percent of enforcement actions required various
improvements in environmental management.
• Violators spent $2.6 billion to return to compliance.
•Violators spent $66.8 million on other
environmentally beneficial projects as part of case
settlements.
improvements. In FY 2000 approximately 14 percent
of concluded enforcement actions required
improvements in the use or handling of pollutants, such
as changes in industrial processes or storage and disposal
practices to achieve emission and discharge reductions.
Approximately another 61 percent required
improvements in facility environmental management
practices, including testing, training, labeling, and overall
improvements to environmental management systems.
In FY 2000 polluters were required to spend more than
$2.62 billion to correct violations, known as "injunctive
relief," and take additional steps to protect the
environment. Settlement of enforcement cases also
produces supplemental environmental projects (SEPs) in
which violators perform additional environmentally
beneficial projects in exchange for a penalty reduction. In
FY 2000 SEPs totaled $66.83 million, with Clean Air Act
(CAA) settlements accounting for 60 percent of the total.
The Agency uses compliance inspections,
investigations and other assessments to determine the
compliance status of regulated facilities. In FY 2000
EPA conducted 20,123 inspections and 660 intensive
civil compliance investigations. These inspections and
investigations resulted in the identification of a number
of serious environmental violations, including, but not
limited to, pollutant releases not allowed by permit,
illegal storage of hazardous waste, and discharge of oil
in harmful quantities. Where necessary EPA addresses
noncompliance with an enforcement action appropriate
to the violation. In FY 2000 EPA took a total of
2The money spent by polluters to correct violations includes $1.6 billion from FY 2000
cases and $1 billion from the TECO settlement.
•a
o
3 The money spent by polluters on SEPs includes $55.8 million from FY 2000 enforcement
cases and $11 million from the TECO settlement.
5,791 civil judicial and administrative enforcement
actions, the highest number taken in the past 10 years.
In FY 2000 EPA took many enforcement actions
that addressed high risk violations of regulations
designed to protect human health and the environment
and that led to environmental improvements. A few
examples follow:
• As the result of a settlement agreement between
EPA and Willamette Industries, the release of
approximately 27,000 tons of pollutants to the air
will be prevented per year. The agreement covers
13 facilities in four states for violations of CAA
provisions designed to ensure that air quality does
not deteriorate in areas that have previously been
deemed to have clean air. The company will pay
the largest CAA civil penalty ever assessed for
factory emissions of air pollution—$11.2 million—
which will be shared with EPA and the three states
(Arkansas, Louisiana and South Carolina) joining
EPA in the action.
• Koch Industries, a petroleum refining firm, agreed
to pay a record fine of $30 million to improve its
leak-prevention programs and spend $5 million on
environmental projects for very serious violations
of the Clean Water Act (CWA) stemming from oil
spills in six states. Most of the spills were caused
by the corrosion of pipelines in rural areas resulting
in an estimated three million gallons of crude oil
and other products leaking into ponds, lakes, rivers,
streams, and shorelines.
• In November 1999 EPA filed lawsuits against seven
of the nation's largest power generating companies.
The filings resulted from one of the Agency's largest
investigations targeted at reducing the emissions of
nitrogen oxide (NOJ and sulfur dioxide (SO^ to the
air and enforcing the requirements of the CAA. The
lawsuits filed alleged that the seven companies' 32 coal-
fired power plants had been upgraded without adding
the needed air pollution controls and that the power
plants illegally released massive amounts of air
pollutants contributing to some of the most severe
environmental problems facing the nation today. The
first case settled after the November filings was with
the Tampa Electric Company (TECO). Based on the
settlement, emissions of NOx and SO2 will be reduced
by a combined 190,000 tons annually. The TECO
settlement will result in the company installing "best
available control technology" at all ten coal-fired power
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EPA's FY 2000 Annual Report
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plant units at a cost estimated to be approximately
$1 billion, along with additional injunctive relief of
approximately $10 million and a civil penalty of $3.5
million.
EPA's criminal enforcement program addresses
violations that are the result of deliberate or negligent
actions. In FY 2000, 477 in-depth criminal
investigations were targeted at the most serious and
dangerous violators of environmental laws, resulting
in 236 cases referred to the Department of Justice for
criminal prosecution. Moreover, in criminal cases
concluded in FY 2000, violators received 146 total years
of jail time. One of the most serious criminal cases
involved an Idaho man who received the heaviest federal
environmental sentence ever given for knowingly
exposing employees to cyanide-17 years for four federal
violations. One employee in his twenties was left with
permanent brain damage from exposure to deadly
cyanide gas. In addition to jail time, the defendant was
ordered to immediately pay the victim approximately
$6 million in restitution and pay EPA more than
$300,000 for cleanup costs.
In FY 2000 EPA put into place several outcome
measures that allow the Agency to evaluate the
compliance behavior of the regulated community. For
example, to assess the Agency's effectiveness in
deterring recurrence of significant noncompliance
problems, EPA is now establishing a baseline for the
percentage of significant violators with recurring
significant violations within 2 years of returning to
compliance. The percentage of facilities with recurring
significant violations of the CAA is 20.9 percent; for
the CWA 53.5 percent; and for the Resource
Conservation and Recovery Act (RCRA) 18.1 percent.
EPA is now also measuring the time taken by significant
violators to return to compliance or begin implementing
enforceable agreements: 1.16 years for CWA and 0.97
years for RCRA. (Final data are not yet available for
the CAA.) EPA uses this information to determine how
the regulated community responds to being found in
significant noncompliance with the law; (Significant
noncompliance is carefully defined for each media
program based primarily on criteria of severity and
duration.) A pilot project to establish statistically valid
noncompliance rates for selected regulated populations
was undertaken in FY 2000 and is continuing in
FY 2001. This effort is verifying the compliance status
of selected industries and providing a baseline for
performance measurement in future years. EPA will
build on these results to measure changes in behavior
as a result of targeted enforcement and compliance
assurance activities.
Increasing Compliance Through Incentives
and Assistance
EPA promotes the compliance of the regulated
community through a program of incentives and
assistance. The Agency has two significant incentives
policies that are designed to address different groups
of the regulated community—the Audit/Self-Policing
Policy and the Small Business Policy. These policies
provide incentives for regulated facilities to detect,
disclose, and correct environmental violations and they
produce excellent results. These results are reflected in
r ^>
AUDIT INITIATIVE IMPROVES
COMMUNITY RIGHT-TO-KNOW
Since 1988 Toxics Release Inventory (TRI) provisions
of the Emergency Planning and Community Right-
To-Know Act (EPCRA) Section 313 has required the
reporting of nitric acid treatment and "coincidental
manufacture" of nitrates. EPA was concerned that
nitrate discharges were not being reported by certain
industries, even though the Agency disseminated
instructions and guidance about nitrate reporting
under TRI. Such discharges can adversely affect local
water quality and drinking water sources.
EPA focused on six industry sectors in which under-
reporting was suspected, first offering companies the
opportunity to disclose and correct violations under
the Audit Policy or the Small Business Policy. Sixty
days later EPA sent letters to 600 companies that did
not utilize the audit policies, offering the opportunity
to provide the nitrate reports for a reduced penalty.
EPA also offered the option of additional penalty
reduction for those facilities that would conduct a
facility audit for other EPCRA reporting violations.
More than 130 companies reported using the audit
or small business policies, 350 companies agreed to
report and pay a reduced penalty, and more than 1,000
facilities will report and audit for EPCRA compliance.
Participants in the initiative have filed over 5,000 TRI
reports totaling more than 50 million pounds of
nitrate compounds as a result of this and other EPA
initiatives. Communities will now have access to more
information on the discharges of nitrates and other
i substances from local plants.
V S
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FY 2000 GPRA Performance
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3
§
the FY 2000 self-disclosures^-30 companies reported
violations at 2,200 facilities.
The Small Business Compliance Policy provides
penalty waivers to small businesses that, following the
policy's criteria, voluntarily discover, disclose, and
correct a violation. FY 2000 modifications to the policy
expanded the situations in which a business could use
this tool to include any voluntarily discovered violations,
not merely violations discovered as a result of on-site
compliance assistance or audits. The updated policy also
extends the disclosure period from ten to 21 days,
allowing small businesses more time to consider the
policy, resolve any questions, and prepare their
disclosure letters.
EPA has developed a wide range of tools and
services that improve understanding of regulatory
requirements and provide compliance assistance. The
Agency reached 455,581 entities in FY 2000 through
various activities: on-site visits, hotlines, workshops,
training, and distribution of compliance assistance tools.
These tools included sector guides, fact sheets, and
compliance checklists. EPA targets compliance
assistance activities to regulated facilities, states, trade
associations, compliance assistance providers, the
public, universities, and nonprofit organizations.
Recipients may access Agency information through
different pathways, including the Internet.
Growing Public Use of Compliance
Assistance Centers
40000 r
35000
5000
In FY 2000 EPA continued to support the ten
Internet-based Compliance Assistance Centers created
to help small and medium-sized businesses, local
governments, and federal facilities understand and
comply with their regulatory obligations. In FY 2000
target audiences and the public visited the Centers more
than 400,000 times, an increase of 56 percent from
FY 1999. These visits included over one million requests
for web pages and targeted compliance documents.
EPA regions conducted ten projects for which they
measured outcomes of compliance assistance activities.
The projects involved a combination of workshops,
on-site assistance, and written assistance. EPA surveyed
project participants and learned that on average, 77
percent of responding recipients indicated an increased
understanding and awareness of regulations as a result
of the assistance provided. Also, 64 percent of the
responding recipients indicated that they had taken at
least one action to comply with the environmental
regulations as a result of the assistance received.
EPA also provides support to regulatory partners
through development of user-friendly guides, reference
materials, assisted inspections, and training. To enhance
the expertise of state and tribal inspectors, EPA
conducted 713 assisted inspections. In addition the
Agency conducted 154 training classes or seminars for
states, localities, and tribes to improve their ability to
identify and reduce noncompliance. EPA also provided
34 states with direct access to the user-friendly On-line
Targeting and Information System, exceeding its target
of 21 states. This system provides states with enhanced
information about noncompliance patterns.
SUMMARY OF FY 2000 PERFORMANCE
EPAs FY 2000 performance in the enforcement
and compliance program reflects strong progress in
achieving the goal of a credible deterrent to pollution.
The program relies on traditional measures coupled with
new outcome-oriented measures to evaluate progress
and document results. In FY 2000 the program achieved
high levels of performance in inspections and
enforcement actions, as well as record levels for
delivering compliance assistance, promoting self-
disclosures, and delivering compliance tools. These
activities all contributed to EPA greatly exceeding the
target for real environmental results: pounds of
pollutants reduced. EPA also established several key
baselines for the program from which to evaluate the
future environmental results of actions taken. The
enforcement and compliance program is maintaining a
strong foundation and integrating innovative
approaches to ensure full compliance with laws intended
to protect human health and the environment.
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EPA's FY 2000 Annual Report
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STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
As a result of concerns about data quality and the
age and usefulness of EPA enforcement and compliance
data systems, the Agency initiated a process to modernize
data systems that would result in the integration of
enforcement and compliance information from various
media. This effort has been carefully coordinated with
EPAs broader effort to address data integration and
modernization across the Agency.
A particular area of focus for EPA is the CWA
Permit Compliance System (PCS). EPA has worked with
the states to identify problems and define the revisions
needed to PCS that are critical to effective National
Pollutant Discharge Elimination System (NPDES)
program management and oversight. In partnership
with the states, EPA is reengineering PCS to better
address current requirements of the NPDES permitting
and enforcement programs and to meet the demands
of new initiatives such as tracking reduced pollutant
loadings, capturing information on storm water sources,
and assessing the health of individual watersheds.
Please see Section III -ManagementAccomplishments and
Challenges for a further discussion of the above issues.
PROGRAM EVALUATION
In response to a request from Congress, in March
2000 the General Accounting Office (GAO) issued the
report Pesticides: Improvements Needed to insure the Safety of
Farmworkers and their Children (RCED-OO^I-0) (http://
www.gao.gov) on issues related to the safety of children
who may be exposed to pesticides in agricultural settings.
The report recommended (1) improving data on acute
pesticide illnesses, (2) taking steps to protect children
younger than 12 years old that work in agriculture or are
otherwise present in pesticide-treated fields, (3) completing
the documentation on the adequacy of EPAs Worker
Protection Standard entry intervals for children 12 years
old or younger that work in agriculture, and (4)
strengthening EPA's oversight of the states'
implementation and enforcement of the Standard. The
Agency initiated a review of national, regional, and state
enforcement of the Standard. Using a newly developed
Standard protocol, EPA is currently engaged in regional
and state reviews to assess whether changes are needed to
the implementation and oversight of the Standard to
protect the health of farmworkers and their children.
ASSESSMENT OF FY 2000 IMPACTS ON THE
FY 2001 ANNUAL PERFORMANCE PLAN
Performance in FY 2000 largely met or exceeded
expectations. In a few areas EPA has adjusted performance
targets for FY 2001. For example, the target for the amount
of pollutant reduction from concluded enforcement
actions has been significantly increased, as has the number
of inspections. Additionally in FY 2000, the Agency found
it more difficult than anticipated to arrive at an accurate
first-time count of results for several new measures.
Examples are the percent of inspections and investigations
(civil and criminal) conducted at priority areas and the
number of EPA-assisted inspections to build enforcement
capacity for states and tribes. EPA is considering ways to
improve the measurement of these activities.
The Agency is continuing to improve annual
performance goals (APGs) and performance measures
for Goal 9, reflecting more experience in measuring
enforcement and compliance assurance activities. In
FY 2000 the program successfully established baselines
for the following: timelines for return to compliance
by significant violators; percent of significant violators
with recurrent significant violations; and statistically
valid compliance rates on permit exceedances based
on self-reported information from the regulated
community. EPA is using this information for new
performance measures for FY 2001.
In addition to these new outcome-oriented
performance measures, the Agency has also added
measures in FY 2001 for the number of concluded
enforcement actions that result in improvements in facility
management and information practices, as well as training
to build enforcement capacity for tribal and state personnel.
Also EPA refined its measures for voluntary self-disclosure
and violation correction, and for the handling of hazardous
waste import and export notices.
TABLES OF RESULTS
The following tables of results includes
performance results for the five FY 2000 APGs that
appear in Goal 9. In cases where the FY 2000 APG is
associated with an FY 1999 APG, the table includes
the FY 1999 APG below the FY 2000 APG for ease in
comparing performance. Additionally EPA is providing
information on FY 1999 APGs that are not associated
with any APGs in FY 2000.
I
FY 2000 GPRA Performance
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
I Summary FY 2000 Performance I
~~ ~~ fol
I A I Goals I -\ I Goals
1^ I Mot I ' jNotMet
GOAL 9 - A CREDIBLE DETERRENT TO POLLUTION
AND GREATER COMPLIANCE WITH THE LAW
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Planned Actual
Actual
IDENTIFY AND REDUCE SIGNIFICANT NON-COMPLIANCE IN HIGH PRIORITY PROGRAM AREAS, WHILE
MAINTAINING A STRONG ENFORCEMENT PRESENCE IN ALL REGULATORY PROGRAM AREAS.
FY 2000 APG 64: Deter and reduce noncompliance and achieve environmental and
human health improvements by maintaining a strong, timely and active
enforcement presence. EPA will direct enforcement actions to maximize
compliance and address environmental and human health problems;
75% of concluded enforcement actions will require environmental or
human health improvements such as pollution reduction, etc.
(FY 1999) Deter noncompliance by maintaining levels of field presence and
enforcement actions, particularly in high risk areas and/or where populations
are disproportionately exposed. In 1999, EPA will conduct 15,000 inspections
and undertake 2,600 enforcement actions.
Performance Measures
- Estimated pounds of pollutants reduced (aggregate).
- Percent of actions which require pollutant reductions.
- Establish statistically valid noncompliance rates or other indicators for selected environmental
problems.
- Establish a baseline to measure percentage of significant violators with reoccurring significant
violations within two years of returning to compliance.
- Establish a baseline to measure average length of time for significant violators to return to
compliance or enter enforceable plans/agreements.
- Produce report on the number of civil and criminal enforcement actions initiated and
concluded.
Explanation: Goal met with 75% of concluded enforcement actions requiring environmental
and human health improvements. Approximately 14% of concluded
enforcement actions required improvements in the use or handling of
pollutants, such as changes in industrial processes or storage and disposal
practices to achieve emission and discharge reductions. Approximately
another 61% required improvements in facility environmental management
practices, including, testing, training, labeling, and overall improvements to
environmental management systems. In managing for environmental results,
EPA significantly exceeded the target of pounds of pollutants reduced and
treated as a result of enforcement actions. This large increase over the target
was due to the settlement of the Tampa Electric Company (TECO) case. In
setting the FY 2000 target, resolution of the TECO case was not anticipated. In
addition, EPA required treatment of 1.3 billion pounds of contaminated soils,
sediments and water. The Agency will report several new performance
measures in FY 2001 on the outcomes resulting from concluded enforcement
actions. The percentage of overall actions that required pollutant reductions fell
below the target. This is partly because, in fulfilling a new regulatory
requirement, drinking water utilities were required to provide consumer
confidence reports (CCR) on the quality of their drinking water. Until most
states assume delegation for this program in FY 2001, EPA had made this an
enforcement priority. (In FY 1999 there were 313 settlements; this grew to
2,134 settlements in FY 2000.) As these enforcement actions result in CCR
publication rather than direct pollutant reduction, the percentage of actions that
required pollutant reductions fell below the target. EPA is considering revising
downward the target for this measure in FY 2001.
Data Source: Regional offices calculate the results of enforcement actions and enter the
information in the DOCKET system. DOCKET tracks EPA civil, judicial and
administrative enforcement actions. The Permit Compliance System (PCS)
tracks permit and enforcement actions on effluent discharges. The Air Facility
300 M
35
5
1
1
1
714 M
13.6
5
1
1
1
21,410
3,935
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EPA's FY 2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
Sources System (AFS) captures emission compliance and permit data for
major stationary sources and air pollution. The Resource Conservation and
Recovery Information System (RCRAInfo) is a national database that
supports the Resource Conservation and Recovery Act (RCRA) program and
contains information on entities that are engaged in hazardous waste
generation and management activities regulated under the hazardous waste
part of RCRA.
Data Quality: EPA manages 14 national data systems containing enforcement and
compliance data. The Agency has concerns about the quality and
completeness of data, ability of existing systems to meet data needs, and
incompatible database structures/designs. EPA has begun to address data
quality, is committed to data integration and modernization efforts, and believes
promoting greater public access to data will result in improved data quality. As
part of agreement between the headquarters and regional offices, the Agency
is placing greater emphasis on strengthening the quality of this data.
In FY 2000 the Agency continued to modernize its data systems and
completed the concept and requirements phase for the new Integrated
Compliance Information System (ICIS). ICIS will be an integrated
enforcement and compliance data management system that will support core
information needs. ICIS will track facility inspections, violations and
enforcement actions, as well as address more complex needs for compliance
assistance tracking, multimedia planning, targeting and evaluations. As EPA
migrates data into ICIS, the data will undergo quality control.
FY 2000 APG 65: Ensure compliance with legal requirements by assuring that hazardous
waste exports from the U.S. are properly handled. Implement U.S.
international commitments, and gain enforcement and compliance
cooperation with other countries, especially along U.S. borders (Mexico/
Canada).
Performance Measures
- Ensure compliance with legal requirements by assuring that hazardous waste exports from the
United States are properly handled (number of import and export notices filed and reviewed).
Explanation: Goal met. EPA met the goal of ensuring compliance with legal requirements
for hazardous waste exports by reviewing and responding to all submitted
waste import/export notifications. EPA is revising this annual goal and
performance measure in FY 2001 to reflect better the EPA review and
response to the notices for transboundary movement of hazardous wastes.
Data Source: The Hazardous Waste Export System maintains manual reports submitted by
United States exporters. The Waste Import Tracking System maintains
manual reports submitted by foreign governments.
Data Quality: Hazardous waste import/export notifications are self-reported and, thus, are
subject to bias. EPA works with the U.S. Customs Service to ensure the
quality of data and compliance by exporters/importers with legal
requirements.
FY 2000 APG 66: EPA will conduct 13,500 inspections, 500 criminal investigations, and
150 civil investigations, 50% of which are targeted at priority areas.
(FY 1999) Deter noncompliance by maintaining levels of field presence and
enforcement actions, particularly in high risk areas and/or where populations
are disproportionately exposed. In 1999, EPA will conduct 15,000 inspections
and undertake 2,600 enforcement actions.
Performance Measures
- Number of EPA inspections.
- Number of civil investigations.
- Number of criminal investigations.
- Percent of inspections and investigations (civil and criminal) conducted at priority areas.
FY 2000
Planned
1,500
13,500
150
500
50
Actual
1,584
20,123
660
477
15
FY 1999
Actual
No
FY 1999
APG
21,410
3,935
I
FY 2000 GPRA Perfomance
11-99
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
Explanation: Goal not met. Actual inspections surpassed targets and this target increases
for FY 2001. The Agency exceeded the target for civil investigations because
of investigations in the new media enforcement areas of the Oil Pollution Act
and the Emergency Planning and Community Right to Know Act. EPA fell
short of the target for criminal investigations due to an Agency hiring freeze.
EPA is revising downward the target for this measure in FY 2001. For the
major media programs, the percentages of inspections in high priority areas
were: Clean Air Act-38%; Clean Water Act-34%; and RCRA-35%. The
annual goal and measure for the percentage of inspections and
investigations conducted at priority areas proved difficult to define and
calculate, and is not a measure in FY 2001.
Data Source: The Integrated Data for Enforcement Analysis (IDEA) System integrates data
from major enforcement and compliance systems (e.g., PCS, AFS,
RCRAInfo), including data from states.
Data Quality: See APG 64, first paragraph.
FY 2000 APG 67: Improve capacity of states, localities and tribes to conduct enforcement
and compliance assurance programs. EPA will provide grants, guidance
documents, training, classes and seminars, and assist with selected
inspections.
(FY 1999) Assist states and tribes with their enforcement and compliance assurance
and incentive programs. EPA will provide specialized assistance and training,
including 83 courses, to state and tribal officials to enhance the effectiveness
of their programs.
Performance Measures
- Number of EPA-assisted inspections to build capacity.
- Number of EPA training classes/seminars delivered to states/localities and tribes to build
capacity.
Explanation: Goal met. EPA significantly exceeded its target of conducting EPA-assisted
inspections to improve capacity of states, localities and tribes. State/tribal
partners often request that EPA accompany them when they undertake
enforcement and compliance assurance site visits. EPA exceeded the target
for this first-time measure due to difficulty in defining EPA-assisted
inspections. As a result EPA is considering increasing the target for this
measure in FY 2001. EPA missed its target for delivering training classes/
seminars to state/localities and tribes due to budget constraints but reached
the comparable number of students in FY 2000 as in FY 1999 through
distribution of computer-based and video-based training products. EPA is
adding new measures in FY 2001 including the number of tribal personnel
trained and the number of computer-based training modules developed.
Data Source: Manual system. Reports on EPA-assisted inspections are completed by
regional staff and tracked by headquarters. Manual reports also provide
information to National Enforcement Training Institute's (NETI) course
information management systems and the NETI registrar.
Data Quality: Data are manually verified.
3
§
•a
o
218
100
200
713
154
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EPA's FY 2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
PROMOTE THE REGULATED COMMUNITIES'VOLUNTARY COMPLIANCE WITH ENVIRONMENTAL
REQUIREMENTS THROUGH COMPLIANCE INCENTIVES AND ASSISTANCE PROGRAMS.
FY 2000 APG: 68: Increase entities self-policing and self-correction of environmental
problems through use of EPA incentive policies: small business, small
community and audit policies over FY 1997 levels.
Performance Measure
- Number of facilities that self-disclose potential violations.
Explanation: Goal met. EPA exceeded its goal of increasing entities' self-policing and
self-correction of environmental problems because of unexpected increases
in the number of facilities using the policies. Increased publicity about the
modified policies and Agency initiatives-especially those involving
companies with multiple facilities nationwide-and the cooperation of these
companies, contributed to the successful outcome. EPA revised this measure
for FY 2001 to reflect the completion of settlements with facilities to
voluntarily self-disclose and correct violations. However, EPA does not expect
the large one-time increase in number of self-disclosures in FY 2000 to stay
at that same high level in FY 2001. EPA will expand efforts to specifically
encourage disclosure from companies suspected of having serious
violations, which, as a class, occur less frequently and require more complex
analysis to address.
Data Source: The DOCKET System tracks EPA civil, judicial and administrative
enforcement actions.
Data Quality: This is the first year of relying on the DOCKET system for the data. EPA is in
the process of assessing data quality and identifying any necessary changes.
346
2,200
No
FY1999
APG
FY 1999 ANNUAL PERFORMANCE GOALS
(NO LONGER REPORTED FOR FY 2000)
Target high priority areas for enforcement and compliance assistance and complete baseline data assessment in major
databases needed to measure quality of key indicators of compliance. The Agency will identify five high priority areas
and improve two data systems.
Increase regulated community's use of compliance incentives and their understanding of, and ability to comply with,
regulatory requirements. The Agency will continue to operate nine small business compliance assistance centers and will
complete sector notebooks, guides, and other outreach materials begun in FY 1998.
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FY 2000 GPRA Perfomance
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Goal 10 FY 2000 Obligations
S438M
Note: EPA FY 2000 Obligations
were $8,974 million
GOAL 10: EFFECTIVE MANAGEMENT
EPA will establish a management infrastructure that will set
and implement the highest quality standards for effective
management and fiscal responsibility.
OVERVIEW
EPA management provides vision, leadership, and
support for all Agency programs. The effectiveness of
EPAs management and the delivery of administrative
services will determine, in large measure, the Agency's
success in achieving its environmental mission. Sound
leadership, proactive human resources management,
rational policy guidance, innovation, quality customer
service, consultation with stakeholders, results-based
planning and budgeting, and fiscal responsibility provide
the foundation for everything EPA does to advance the
protection of human health and the environment. In
addition work under Goal 10 ensures that EPA's
management systems and processes will be supported
by independent evaluations that promote operational
integrity and efficient, effective programs. As stated in
the Overview and Analysis section, EPA has made
progress in strengthening results-based management
through its planning and accountability processes and is
working to promote more outcome-oriented goals and
measures to further improve performance measurement.
EPA has made significant progress in ensuring the
security of its financial systems consistent with the
Federal Financial Management Improvement Act.
In fulfilling its managerial commitments, the
Agency focuses on five overarching priorities: managing
human capital, streamlining business processes and
meeting customer needs, investing in infrastructure,
protecting children's health, and improving management
and program operations.
FY 2000 PERFORMANCE
Managing Human Capital
The Agency faces a number of challenges in
managing its human capital resources, including the
expected retirement of a large number of senior
employees, which threatens to deplete EPA's pool of
critical skills: retaining and recruiting a highly skilled
and diverse professional and technical staff; providing
employees with the competencies they need to
effectively address the Agency's strategic goals; and
building a sense of community while recognizing
differences as contributions to the whole.
VALUES
EPA respects and values integrity, the trust and
confidence of the public, diversity of cultures and
thinking, competence, innovation, continuous
learning, and sound science. We treat our people fairly
and with respect, and encourage a spirit of teamwork
and the consistent practice of these values.
Source: YLuman Capital Strategy
To address these issues the Agency drafted a
strategic plan for investing in human resources, the
"Strategy for Human Capital." The Strategy represents
the first time EPA has developed a strategic direction
for investing in and managing its human resources. To
support the Strategy, the Agency has:
• Tested five pilot training courses to provide Agency
mid-level managers with the competencies they
need to successfully support the EPA mission.
• Implemented the Agency's Hispanic and Asian
Outreach Strategies to enhance the career
development and recruitment of Hispanics and
Asians in federal employment.
• Recruited the third class of interns, which will
provide the Agency with a diverse, high-potential
cadre of future leaders.
E.
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FY 2000 GPRA Performance
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o
• Completed a. Labor Relations Strategic Plan that
established specific targets for the Agency managers
and union representatives to aim for over the next
12 months.
In FY 2000 EPA made inroads in promoting
diversity and fairness in the workplace by tasking
managers and employees to continue to work
collaboratively in accomplishing the goals of the
Agency's Diversity Action Plan and ensuring review of
the Agency's hiring, promotion, and award practices.
Following the plan also ensured that EPA employees
were trained in working with tribes on a government-
to-government basis to enhance the protection of tribes
and tribal lands. The Agency's recruitment program was
modified in 2000 to decentralize the management of
recruitment activities to the regional and field human
resources offices. Agencywide progress in 2000 has
demonstrated improvement in minority representation
within the Senior Executive Service (SES). An increase
in the number of minorities and women also occurred
in the SES feeder groups, GS-13 and above. Please see
Section III - Management Accomplishments and Challenges
for a further discussion of the above issues.
Streamlining Business Processes and Meeting
Customer Needs
In FY 2000 EPA took a number of steps to
streamline and automate its administrative systems and
processes to provide the best customer service at the
least cost and burden to the taxpayer. For example, EPA
is automating the entire travel reimbursement process
to obtain a significant reduction in administrative
burden. EPA earned a prestigious federal award in
recognition of its efforts, along with several other
agencies, to implement an online system that allows
employees to view and update many payroll and benefits
options such as health plan choices. The Agency also
made substantial progress in replacing its aging payroll
system, and efforts are now under way to replace the
Integrated Financial Management System. In addition
EPA developed a financial data warehouse to improve
Agency access to a range of financial and program data
to better manage programs. EPA also reduced
administrative burden and improved customer service
by consolidating several local payment functions, and
the resources saved were redirected to support
environmental goals.
In the area of financial management, two major
accomplishments have improved EPA's ability to set
priorities and manage for results. First, a major new
accounting methodology adopted for the Superfund
Trust Fund will increase cost recoveries for that
program and serve as a model for indirect cost
accounting in other programs. Second, EPA continues
to take aggressive steps to promptly redirect unspent
funds from inactive contracts and assistance agreements
to other site response activities where funding is needed.
For example, in FY 2000 the Agency redirected about
$166 million in unspent funds within the Superfund
Program.
Increased use of automation continues to improve
EPA's ability to manage for results, reduce burden, and
gain efficiencies. The Agency added cost accounting
features to its Budget Automation System in FY 2000
so that the system more clearly links budgetary resources
with the achievement of environmental results.
Measurable results of EPA's automation efforts include
$775,000 in rebates and discounts for prompt payment
earned in FY 2000 as well as continued reduction of
overhead costs through the electronic transfer of funds.
In FY 2000 virtually all payments to contractors and
employee salary payments were made electronically
rather than by check.
Throughout FY 2000 EPA continued to introduce
innovative approaches to providing electronic
commerce for both the grants and contracts programs.
For example, Agency grant recipients are beginning to
benefit directly from a new system that allows them to
request their funds online. The Agency brought all 11
Grants Management Offices online and fully
implemented Phase I of the Integrated Grants
Management System, a paperless programmatic and
administrative system that will fully automate the grants
process from pre-award activities to closeout. EPA is
now in a position to accept electronic applications from
grantees and make electronic awards, making the grant
process faster and more user-friendly. In the area of
contracts management, significant progress was made
during FY 2000 in developing a Program Office
Interface for the Integrated Contracts Management
System. This new interface will streamline and automate
communications and provide for the electronic routing
of contracts-related documents among program offices,
contracting offices, and EPA contractors. The Agency
has achieved significant improvements in increasing the
percentage of performance-based contracts, which are
considered more cost-effective and result in the
contractors assuming a greater share of the risk. EPA
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EPA's FY 2000 Annual Report
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had set a performance goal of awarding 11 percent of
its new procurements as performance-based by
FY 2000 and exceeded that goal by awarding 14 percent
of its contracts as performance-based.
Investing in EPA's Infrastructure
EPA has a master plan for making ongoing
investments in state-of-the-art construction and
infrastructure renovations to its office facilities and
laboratories to provide a safe and healthy environment
for its employees and the surrounding communities. In
FY 2000 the Agency continued its commitment to using
"Green Power"—renewable electric power—for its
facilities. The Agency purchased 100 percent renewable
energy for three regional laboratories: Golden, Colorado;
Manchester, Washington; and Chelmsford, Massachusetts.
This action will reduce the Agency's dependence on fossil
energy, comply with lower energy consumption goals
under Executive Order 13123, and promote market
penetration of renewable energy technologies.
A key component of this master plan is the new
headquarters project, which is unique in the federal
building universe. The design work focuses on achieving
indoor air quality and energy efficiency, and it
incorporates sustainable design practices within the
context of federal design and procurement practices.
The Agency was assigned 1.2 million square feet of
space in the Federal Triangle to serve as its consolidated
headquarters. Although this was not enough space to
accommodate all of the EPA headquarters staff, the
Agency accepted the new assignment because of the
need to vacate Waterside Mall and the desirability of
the Federal Triangle location. In FY 2000 the Agency
moved additional employees, bringing the total number
of employees relocated to the new headquarters
complex to 3,400. Over the next 20 months, an
additional 2,500 people will be moved.
EPA also continued to promote the Laboratories
for the 21st Century (Labs21) initiative. In conjunction
with the U.S. Department of Energy, the Agency
provided technical assistance to pilot laboratory partners
from the federal, state, and private sectors, sharing
technical information and innovative whole-laboratory
designs for reducing pollution and energy and water
consumption. In September 2000 Labs21 became apart
of Project XL (eXcellence and Leadership), a voluntary
program that encourages state and local government
agencies, businesses, and federal facilities to test cleaner,
cheaper, and smarter ways to attain environmental
LABS FOR THE 21ST CENTURY
results superior to those achieved under current
regulations and policies. The web site for the Labs21
initiative is http://www.epa.gov/Iabs21century.
EPA has implemented an aggressive strategy to
reduce energy consumption in its facilities. Results
include a 19 percent decrease in energy consumption
in Agency-owned laboratories—from 374,000 Btu/ft2
in 1985 to 304,000 Btu/ft2 in 2000. By FY 2001 the
Agency will have begun operations at three new energy-
efficient laboratories.
Protecting Children's Health
In FY 2000 EPA made significant progress in its
efforts to protect children from potential environmental
hazards. The Agency provided leadership for federal
efforts to address asthma and lead poisoning (two major
children's health issues) and raised awareness about the
effects of exposure to environmental hazards on
children by incorporating environmental health issues
into the activities of youth organizations. EPA reshaped
its policy on science and risk assessment for children's
environmental health, guiding the development of an
Agency-wide strategy for research on environmental
risks to children. In addition action was taken to reduce
risks to children by considering such risks specifically
in new and reevaluated standards and regulations.
In August 2000 EPA issued the Interim Evaluation
Report of the Child Health Champion Community Pilot
Program established in 11 communities across the
United States. The evaluation assessed the feasibility
of community-led approaches to children's health
protection and how best to support such efforts in the
future. Interim report findings indicated that broad-
based community participation efforts are difficult
without funding; tension exists between local
community empowerment and federal laws and policies
(including funding limitations on activities); and limited
local information and data on human health issues
hinder planning for local action. All 11 communities,
despite the difficulties and limitations, are continuing
their efforts to implement their programs in FY 2001.
e.
5
FY 2000 GPRA Performance
11-105
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Improving Management and Program Operations
The Agency's Office of Inspector General (OIG)
met its goal to increase its effectiveness in detecting
and deterring fraud and other improprieties by
increasing the number of assistance agreement and
contract cases, improving the percentage of cases
referred for action, and reducing the average time for
case completion. The OIG continued to emphasize an
investigative initiative to uncover criminal activity in the
awarding and delivery of assistance agreements and
contracts. Fraud awareness briefings, an important part
of fraud prevention and detection efforts, were held
for EPA employees and state and local law enforcement
organizations to address vulnerabilities to fraud, waste,
and abuse. In addition the OIG developed an initiative
to perform investigations of intrusive activities that
affect the Agency's computer systems and to partner
with other agencies in the growing effort to protect
government computer systems. Overall investigative
activity resulted in $70.8 million in fines, recoveries,
restitutions, and savings and 105 judicial, administrative,
and other actions. OIG investigations consistently
yielded significant monetary and environmental results,
as indicated in the following examples:
• An EPA contractor agreed to a $24 million
settlement in a civil lawsuit alleging that the
company billed government agencies for computer
center costs in excess of the costs actually incurred.
• A firm agreed to a $35 million settlement in a civil
lawsuit alleging that it had charged excessive lease
costs to EPA and several other government
agencies.
• A company agreed to pay $1.75 million in fines
and restitution for failing to disclose to government
officials that the wastewater it discharged directly
into Dryman Bay in Sarasota County, Florida, was
not properly treated.
The OIG provided timely, independent auditing
and consulting services responsive to the needs of
customers and stakeholders by identifying means and
opportunities for increased economy, efficiency, and
effectiveness in achieving environmental results. The
OIG made its audit products and services more
customer- and goal-driven by implementing an
extensive customer input and survey process,
reengineering the audit planning and development
process, and expanding advisory services. As a result
the OIG achieved its highest level of customer
OIG PROFILE OF PERFORMANCE
/ Questioned Costs/Savings (millions)
>/ Environmental Program Improvements 78
>/ Fines, Recoveries, Settlements (millions) $71
>/ Criminal, Civil, Administrative Actions 105
/ Customer Service Rating 76%
^ ^
satisfaction as determined through surveys of EPA
management and staff. The OIG added four new areas
to its list of Agency Top Ten Management Challenges
provided annually to Congress. In addition the OIG
made numerous recommendations for improving
Agency business practices and environmental results,
including the following areas (1) submitting timely and
complete financial statements that are accurate and have
adequate accounting support, (2) strengthening controls
over access to sensitive data on the Agency's mainframe
computer, and (3) operating a viable asbestos inspection
program to ensure that school districts comply with
the Asbestos Hazard Emergency Response Act.
The OIG developed a new strategic plan that charts a
course through FY 2005. It builds on past
accomplishments and establishes new directions for
contributing to improved environmental quality and
human health. This plan will be enhanced through the
creation of a new OIG Office of Program Evaluation to
assess the linkage and impact of EPA actions and
programs. The OIG's challenge is to perform work related
to each of EPA's ten goals and measure progress and
performance using a "balanced scorecard" combining
outcomes, financial indicators, and customer satisfaction
rather than the traditional monetary results approach.
Additionally the OIG implemented an outreach
plan for improving OIG performance. The plan was
designed to involve customers and stakeholders in
planning the products and services for delivery, measure
performance in meeting customers' needs, promote the
benefits and value of OIG work and seek opportunity
for collaborative partnerships. For example, the OIG
formed the Environmental Consortium of the
President's Council on Integrity and Efficiency, which
includes the General Accounting Office (GAO) and
19 executive agencies, whose goal is to achieve greater
efficiencies and more effective solutions to cross-cutting
environmental issues. The OIG is also developing
similar partnerships with state environmental agencies.
11-106
EPA's FY 2000 Annual Report
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SUMMARY STATEMENT OF FY 2000
PERFORMANCE
The Agency made tremendous progress toward
achieving Goal 10 and its objectives. Many significant
steps were taken to strengthen the integrity of program
operations. EPA has developed a strategic approach to
manage human capital, took a number of steps to
streamline and automate various administrative systems
and processes, continued to reduce energy consumption
in its facilities, made significant progress in efforts to
protect children from potential environmental hazards,
and increased effectiveness in detecting and deterring
fraud and other improprieties.
STRENGTHENING PROGRAM INTEGRITY
THROUGH IMPROVED MANAGEMENT
EPA completed several major actions in FY 2000
to strengthen the management of the taxpayers' dollars
used to support the Agency's grant and contract
programs. The Agency implemented a comprehensive
strategy of technical assistance, monitoring, and
oversight to help ensure that grantees properly expend
federal funds on ongoing projects and achieve results
that will benefit the public. In addition the Agency
closed out an estimated backlog of 20,000 grants
originally reported to Congress in July 1996, ensuring
that all unused funds were deobligated and redirected
to other environmental projects or returned to the
Federal Treasury. In the contracts area, EPA negotiated
a settlement with two major contractors in which the
government and the U.S. taxpayers realized $390 million
in savings.
EPA has taken numerous steps to remedy the
problems that led to a qualified audit opinion from the
Inspector General on its FY 1999 financial statements
and is pleased to report that the FY 2000 statements
have earned an unqualified opinion. Recent
improvements include strengthening quality controls
and financial systems security; developing additional
policies and procedures for preparing the statements;
providing expert training to the Agency's financial
management staff; and compiling interim financial
statements for use as a "dry-run" to identify potential
problems. EPA also contracted with the Department
of the Treasury for technical assistance and focused
on recruiting and hiring experienced staff
knowledgeable about federal accounting standards. EPA
continues to improve its capabilities related to cost
accounting, illustrated by revisions to the account
structure that linked the Agency's financial resources
to the elements of the Strategic Plan.
In FY 2000 EPA made progress in improving the
security of financial information systems, but additional
measures are needed to meet the security challenges of
the rapidly changing cyber world and effectively move
toward electronic government. Reviews of Agency
security practices by GAO and OIG revealed a number
of vulnerabilities. In response EPA has thoroughly
evaluated its current practices and is implementing cost-
effective means of ensuring the security of the Agency's
financial information systems and the transactions
processed. For example, EPA established a cross-office
financial information security council; updated
hardware and software; initiated a structured process
to identify, assess, and mitigate risks; and improved
financial system documentation, technical and
management controls, and security training.
The OIG identified accountability as a management
challenge for the Agency, stating that EPA needs to
take further action to develop accountability systems
that tie performance to its organizational goals. The
Agency has made significant progress to strengthen
results-based management, and it continues to work
toward more effectively linking assessments of program
performance with resource decisions as well as
identifying goals and measures that will allow for trends
analysis over time. EPA has efforts underway to improve
cost accounting to better link budgetary resources with
the achievement of environmental results and to
provide for more informed decision-making In addition
the Agency is replacing its aging financial and payroll
systems and improving the use of automation to reduce
burden and gain efficiencies.
The Agency is undertaking several actions to
improve its ability to manage administrative complaints
alleging discrimination under Title VI of the Civil Rights
Act of 1964. Title VI prohibits discrimination on the
basis of race, color, or national origin by any entity that
receives federal financial assistance. EPA's Title VI
complaints investigation program has had difficulty
meeting regulatory deadlines for processing and
investigating complaints. The Agency is temporarily
assigning additional case managers to expedite
processing and reduce the current backlog of 61 Title
VI complaints that require an investigation or a
jurisdictional determination. In addition the Agency is
e.
5
FY 2000 GPRA Performance
11-107
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•a
o
working to improve its long-term efficiency by
developing needed guidance on processing complaints
and by reducing the processing time for sending letters
on acceptance, rejection, or referral of complaints.
Title VII of the Civil Rights Act of 1964 requires
implementation and management of an effective federal
discrimination complaints process that provides
employees and applicants for employment an
opportunity to seek redress. The Agency has several
problems that adversely affect the timeliness of the
discrimination complaints process, including lack of
accurate and timely data in the tracking system; late,
incomplete, or missing discussions of allegations in
counselors' reports; and insufficient contractor support.
The Agency has initiated several corrective actions to
be fully implemented by September 2001, including
weekly monitoring of all actions in the discrimination
complaints inventory and the recruitment and hiring
of four additional employees for the Title VII team.
Over the past several years, the Agency has
undertaken a comprehensive strategy to streamline the
grants management process, provide ongoing assistance
agreement training and ensure accountability for
oversight responsibilities. During FY 2001 the Agency
plans to conduct a series of management assessment
reviews in EPA program offices and regions to assess
the adequacy of the administrative and programmatic
management of assistance agreements. EPA will
continue, on an ongoing basis, to provide training for
EPA staff and to conduct periodic reviews to ensure
ongoing compliance with Agency policy and federal
laws relative to assistance agreements.
Please see Section III - Management Accomplishments
and'Challenges'for a further discussion of the above issues.
PROGRAM EVALUATION
EPA undertook several evaluations in FY 2000 to
review the effectiveness of its program strategies and
guidance in achieving program goals and safeguarding
resources.
• Conducted a program evaluation that led to the
redesign of the business processes of the EPA
Computer Center. The Center provides a range of
computing services to Agency customers and is
supported by customer payments. The new design
features streamlined business practices and a new
rate structure that more accurately aligns prices for
services with the Center's costs.
• Executed an annual review of its General Services
Administration leased space. The review verified
space measurements, ensured that EPA was billed
correctly, validated space utilization needs, and
ensured that rents were comparable to prevailing
market rates. This careful management of EPA's
inventory has ensured the best possible utilization
of space and has yielded the Agency substantial
savings.
• Conducted Management Oversight Reviews across
the Agency to ensure that each Grants Management
Office engages in sound grants management
practices and follows established grant rules,
regulations and policies.
ASSESSMENT OF IMPACTS OF FY 2000
PERFORMANCE ON FY 2001 ANNUAL
PERFORMANCE PLAN
Overall, FY 2000 performance under Goal 10 was
as expected, and FY 2001 Annual Performance Goals
(APGs) build on this success. EPA is improving
accountability for Agency results-based management
processes and financial management functions by
developing more outcome-oriented goals and measures
and by incorporating feedback from customers and
stakeholders into its annual performance goals and
measures. In developing outcome-oriented
performance results, EPA has committed to increasing
the percentage of outcome-oriented annual
performance goals and performance measures reported
in the Agency's FY 2002 Annual Performance Plan by
4 percent over FY 2001.
TABLES OF RESULTS
The following tables include performance results
for the five FY 2000 APGs that appear in Goal 10. In
cases where the FY 2000 APG is associated with an
FY 1999 APG, the table includes the FY 1999 APG
for ease in comparing performance. Additionally EPA
lists the FY 1999 APGs that are no longer reported for
FY 2000.
11-108 EPA's FY 2000 Annual Report
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FY 2000 Annual Report
Annual Performance Goals and Measures - Table of Results
fnHfnjH^ GOAL 10 " EFFECTIVE MANAGEMENT
FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned
Actual
FY 1999
Actual
THE OFFICE OF THE ADMINISTRATOR AND DEPUTY ADMINISTRATOR WILL PROVIDE VISION AND
LEADERSHIP (WITHIN THE AGENCY, NATIONALLY AND INTERNATIONALLY) AS WELL AS EXECUTIVE
DIRECTION AND POLICY OVERSIGHT FOR ALL AGENCY PROGRAMS.
FY 2000 APG 69: Evaluate health outcomes related to environmental health effects for
asthma and lead addressed in 11 Pilot Child Health Champion
Communities.
Performance Measure
- Issue report on health outcomes.
Explanation: Goal met. EPA met this goal by issuing the Interim Evaluation Report of the
Child Health Champion Community Pilot Program in August 2000. The
interim evaluation focused on community-level coalition building, project
planning, and implementation planning processes within each of the 1 1
communities. The final report will provide a complete picture of activities,
findings, and lessons learned from the pilot program.
Data Source: All data are being provided by the communities. EPA will compile and analyze
the data supplied by the communities.
Data Quality: The communities are making every attempt to provide good quality data. The
data quality, however, will vary by community because of the types of
interventions being implemented, availability of health and non-health
outcome data, availability of database and database expertise, and limited
resources to assemble outcome data.
1
1
No
FY 1999
APG
EPA WILL PROVIDE THE MANAGEMENT SERVICES, ADMINISTRATIVE SUPPORT AND FACILITY OPERATIONS
NECESSARYTO ACHIEVE ITS ENVIRONMENTAL MISSION AND TO MEET ITS FIDUCIARY AND
WORKFORCE RESPONSIBILITIES.
FY 2000 APG 70: 100 percent of EPA's Government Performance Results Act (GPRA)
implementation components (planning, budgeting, financial
management, accountability, and program analysis) are completed on
time and meet customer needs.
(FY 1999) By the end of 1999, the Agency can plan and track performance against
annual goals and capture 100% of costs through the new PBAA structure,
based on modified budget and financial accounting systems, a new
accountability process, and new cost accounting mechanisms.
Explanation: Goal not met. The Agency, however, did make notable progress toward the
goal as follows:
- EPA delivered its FY 1999 Annual Performance Report to Congress on
March, 31, 2000.
- EPA delivered the Revised Strategic Plan to Congress by September 30,
2000 meeting the GPRA requirements.
- EPA substantially improved internal processes and submitted the financial
statements on time. Although the Agency received a qualified audit opinion
from the Inspector General on the FY 1999 financial statements, EPA has
taken significant steps to remedy the issues raised and has earned an
unqualified opinion in FY 2000.
- EPA evaluated options for replacing its aging payroll system and made a
selection based on a thorough business case analysis. In 2000 EPA replaced
an ancillary financial reporting system with a data warehouse providing better
access and reporting capabilities, and enhanced the cost accounting
100%
85%
9/30/99
e.
5
FY 2000 GPRA Perfomance 11-109
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned Actual
FY 1999
Actual
Data Source:
Data Quality:
features of its Budget Automation System (BAS) to more closely link
resources to accomplishments. These cost-effective improvements, along
with comprehensive efforts in security, enhanced EPA's financial systems
capabilities. EPA plans to take advantage of the Joint Financial Management
Improvement Program testing to support development of options for replacing
its core Integrated Financial Management System (IFMS).
- EPA budgeting processes executed resource adjustments necessary to
meet emerging priorities to satisfy Agency and Congressional
requirements.
The Performance and Environmental Results System (PERS) houses data
for GPRA performance goals and measures as a basis for the Annual
Performance Report. IFMS contains the data for the financial statements.
The BAS supports the budget processes.
Because PERS and BAS are databases that primarily house information
from Agency program databases, most of the quality assurance and control
efforts focus on ensuring effective data entry. EPA's quality assurance
program for IFMS includes automated data checks and edits as well as
periodic quality assurance reviews.
FY 2000 APG 71: All 58 mission-critical systems will continue to support core Agency
functions without interruption across Year 2000 date change.
(FY 1999) All mission-critical systems will continue to support core Agency functions
without interruption across Year 2000 date change.
Explanation: Goal met. This Annual Performance Goal carried over in order to ensure that
all mission critical systems were Year 2000 (Y2K) compliant on
January 1 , 2000. EPA continued monitoring and maintenance of these
systems to ensure a smooth transition to Year 2000 date change.
Data Source: Manual system.
Data Quality: Data are manually verified.
100%
100%
100%
EPA WILL PROVIDE A QUALITY WORK ENVIRONMENT THAT CONSIDERS EMPLOYEE SAFETY AND SECURITY,
BUILDING OPERATIONS, UTILITIES, FACILITIES, NEW CONSTRUCTION, REPAIRS, AND POLLUTION
PREVENTION, WITHIN HEADQUARTERS AND NATIONWIDE.
FY 2000 APG 72: EPA will ensure that all new and ongoing construction projects are
progressing and completed as scheduled.
(FY 1999) Complete at least 50% of construction of the consolidated research lab at
Research Triangle Park, North Carolina.
(FY 1999) Continue renovation of the new consolidated headquarters complex,
completing 100% build out of the Ariel Rios north and Wilson Building, and
50% of the Interstate Commerce Commission, and moving 38% of EPA
personnel from vacated spaces to the new consolidated complex.
Performance Measures
- Percentage of new Research Triangle Park building construction completed.
- Percentage of the Interstate Commerce Commission construction completed.
- Percentage of EPA personnel consolidated into Headquarters complex.
Explanation: Goal met. Construction completion is progressing as planned.
Data Source: Manual system.
Data Quality: Data are manually verified.
80%
80%
40%
80%
80%
40%
60%
90%
50%
31%
11-110
EPA's FY 2000 Annual Report
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FY 2000 ANNUAL PERFORMANCE GOALS AND MEASURES
FY 2000
Planned
Actual
FY 1999
Actual
EPA WILL PROVIDE AUDIT AND INVESTIGATIVE PRODUCTS AND SERVICES, ALL OF WHICH CAN FACILITATE
THE ACCOMPLISHMENT OF ITS MISSION.
FY 2000 APG 73: Office of Audit will provide timely, independent auditing and consulting
services responsive to the needs of our customers and stakeholders by
identifying means and opportunities for increased economy, efficiency,
and effectiveness in achieving environmental results.
(FY 1999) In 1999, the OIG will provide objective, timely and independent auditing,
consulting, and investigative services through such actions as completing 15
construction grant closeout audits.
Performance Measures
- Potential monetary value of recommendations, questioned costs, savings and recoveries.
- Examples of the Office of Inspector General (OIG) recommendations or actions taken to
improve economy, efficiency, and effectiveness.
- Overall, customer and stakeholder satisfaction with audit products and services.
Explanation: Goal met. The OIG met its annual performance goal of providing timely,
independent auditing and consulting services. Although the monetary value
resulting from the work was less than projected, the OIG identified the
amount of ineligible, unsupported, and unnecessary/unreasonable costs to
the extent possible in the audits performed. Monetary estimates are based on
professional judgment since there is no way of determining in advance
precisely the amounts of disallowed costs.
Data Source: The database for the OIG recommendations and the potential monetary
value of recommendations, questioned costs, savings, and recoveries is the
Inspector General Operations and Reporting System. There is no formal
database for customer/stakeholder satisfaction; information for these areas is
extracted from audit reports and survey responses.
Data Quality: The OIG will continue working in FY 2001 to strengthen data quality in the
Inspector General Operations and Reporting System.
$64 M
63
75%
$55.3 M
78
76%
24
S128.8M
60
75%
FY 1999 ANNUAL PERFORMANCE GOALS
(NO LONGER REPORTED FOR FY 2000)
By the end of 1999, evaluate five EPA regulations to ensure they are protective of children's health.
EPA will improve the quality, effectiveness and efficiency of EPA's acquisition and contract management process by
completing 10% of contracts utilizing performance-based statement of works.
Implement Phase 1 of the Integrated Grants Management System award module in all regions.
e.
5
FY 2000 GPRA Perfomance
11-111
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FY2000
ANNUAL REPORT
MANAGEMENT
ACCOMPLISHMENTS
AND CHALLENGES
^9
S
I
fl
m
SECTION III
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MANAGEMENT ACCOMPLISHMENTS AND CHALLENGES
One of the most critical challenges facing federal
managers today is preserving the public's trust in the
integrity of government programs. The U.S.
Environmental Protection Agency (EPA) is strongly
committed to achieving its goals and objectives in a manner
that maintains this integrity. Over the past several years
EPA senior managers have placed a high priority on
strengthening results-based management and overall
accountability and on improving the efficiency and
effectiveness of environmental programs.
Section III provides a comprehensive discussion of
EPAs management and performance challenges and the
Agency's strategy to resolve these issues. (The most
significant of these, and their relevance to the achievement
of the Agency's mission, are also addressed in the preceding
goal chapters.) This section also meets reporting
requirements of the Federal Managers Financial Integrity Act
(FMFIA), The Inspector General Act Amendments, and the
Reports Consolidation Act of 2000, as discussed below
Integrity weaknesses and major management
challenges represent deficiencies in program policies,
guidance, or procedures that may impair the Agency's
ability to achieve its mission and weaken the safeguards
against fraud, waste, abuse, and mismanagement. These
issues are identified through internal Agency reviews and
through independent reviews and audits by the General
Accounting Office (GAO), the Office of Management
and Budget (OMB), and EPAs Office of Inspector
General (OIG). EPA managers work diligently to identify
strategies to address these issues, set milestones, and take
prompt corrective action. For some management
problems the Agency has put annual performance goals
in place to trackprogress. Currently, two of the five integrity
weaknesses and five of the 19 management challenges
are linked to Government Performance and Results Act
(GPRA) goals. Although the Agency does not have specific
goals for all integrity weaknesses and major management
challenges, EPAs senior leadership monitors all problems
closely.
Under FMFIA, all federal agencies must submit an
annual Integrity Act Report to the President and Congress
and provide reasonable assurance that policies, procedures,
and guidance are adequate to support the achievement of
their intended mission, goals, and objectives. Agencies also
must report material weaknesses—those deficiencies that
are found to impair achievement of their missions—and
identify corrective action strategies being instituted to
remedy the problems. EPA senior managers periodically
report to the Administrator on efforts under way to address
material weaknesses and other less serious but important
problems. EPA's record in correcting its integrity
weaknesses has steadily improved over the past decade.
Since 1990 EPA has corrected 27 integrity weaknesses
and numerous major management challenges.
FISCAL YEAR 2000
ANNUAL ASSURANCE STATEMENT*
I am pleased to report that EPA's annual self-
assessments of the Agency's internal controls,
management and financial control systems, with
the exception of noted material weaknesses,
provide reasonable assurance that the Agency's
programs and resources are protected from fraud,
waste, and mismanagement.
Carol M. Browner
Administrator
* Assurance statement is required by December 31,2000
under the Federal Managers Financial Integrity Act.
The Inspector General Act Amendments of 1988 require
federal agencies to report to Congress twice a year on the
status of efforts to carry out corrective actions and reach
final action on OIG audits. EPA managers are vigilant in
carrying out timely and effective audit management
practices. Since 1996 the number of audits without final
action one year after the management decision has
decreased by nearly 50 percent. In FY 2000 EPA was
responsible for 503 audits; by year's end 40 were without
final action one year after the management decision date.
As required by the Reports Consolidation Act of 2000,
OIG's list of top management challenges facing the
Agency along with its assessment of EPA's progress in
addressing these challenges is included at the end of this
section. The Agency's response to the OIG statement is
included as part of the discussion of corrective action
strategies for integrity weaknesses and major management
challenges.
FY 2000 Management Accomplishments and Challenges
III-l
-------
INTEGRITY ACT REPORT
The Agency is declaring three new material
weaknesses for FY 2001 on Title VI and VII of the
Civil Rights Act of 1964 and Information Systems
Security and is continuing to address two weaknesses
from the previous fiscal year: National Pollutant
Discharge Elimination System (NPDES) Permits and
Construction Grants Closeout. These are described
below, along with a summary of corrective actions and
expected completion dates.
1. Backlog of Title VI (Civil Rights Act of 1964)
Discrimination Complaints (Goal 10): Title VI prohibits
discrimination on the basis of race, color, or national
origin by any entity that receives federal financial
assistance. The number of Title VI administrative
complaints that require an investigation or a
jurisdictional determination by EPA is 61 and growing.
EPA's program to investigate Title VI complaints
generally does not meet regulatory deadlines for
processing and investigating complaints.
Corrective Action Strategy: In addition to the four
temporary employees hired as Title VI case managers
for 2-year terms, four employees will be detailed to the
Office of Civil Rights from regions and programs to
complete a civil rights investigation. By the end of the
third quarter FY 2001 EPA will improve the long-term
efficiency of the program by finalizing Draft Revised
Investigations Guidance, issuing final guidance
regarding alleged discrimination against persons with
limited English proficiency, issuing standardized
procedures on preparing complaints for the
investigation process, and drafting protocols for
conducting adverse impact analyses and statistical
demographic analyses. Completion of corrective actions
is expected by the end of FY 2001.
2. Deficiencies in Internal Employment Discrimination
Complaints Resolution Process under Title VII (Civil
Rights Act of 1964) (Goal 10): Title VII requires that
EPA implement and manage an effective federal
discrimination complaints process that provides
employees and applicants for employment an
opportunity to seek redress. Difficulty in managing the
Equal Employment Opportunity (EEO) process in a
timely manner is attributable to several factors, including
inadequately trained counselors; lack of accurate and
timely data in the tracking system; late, incomplete, and/
or missing discussion of allegations in counselors'
reports; an inability to utilize the automated data
tracking system effectively; insufficient contractor
support to manage the investigations process; and a
lack of staff to handle the current inventory of 269
complaints.
Corrective Action Strategy: Corrective actions
currently under way include utilizing attorneys from
the Civil Rights Law Office to review and provide advice
on final Agency decisions; to provide regions with
monthly status reports on the inventory of complaints
and overdue reports and with feedback on inadequate
submissions; and to devote more attention to each area
of the process currently needing improvement.
Completion of corrective actions is expected by
September 2001.
3. Information System Security (Goal 7): EPA needs
a centralized security program with strong oversight
processes to address risks adequately and ensure that
valuable information technology resources and
environmental data are secure. The Agency is
strengthening its information security program by
instituting a comprehensive strategy that addresses all
security-related deficiencies, including currently
identified weaknesses covering Information Systems
Security Plans and Cyber Security. In doing so, EPA is
taking a systematic approach to correct its information
security weakness by FY 2002. (FY 1997-2000 OIG
major management challenge;FY 2000 GAO and OMB major
management challenge; declared a material weakness FY 1997
and an expanded material weakness FY 2000.)
Corrective Action Strategy: Though EPA has
corrected the most serious security vulnerabilities,
several significant milestones remain. Corrective actions
currently under way include completing security risk
assessments of critical applications and systems,
evaluating network and data security, installing network
intrusion detection and monitoring controls, conducting
training, certifying security plans for all critical security
systems, finalizing EPA's National Network Security
Policy, validating success of policy and guidance, and
conducting random program office formal security plan
reviews of mission-critical systems. All corrective
actions are expected to be completed by the end of
FY 2002. (Also see OIG List of EPA Top Management
Challenges^)
III-2
EPA's FY 2000 Annual Report
-------
4. National Pollutants Discharge Elimination
System Permits (Goal 2): The backlog in EPA-issued
major permits has tripled over the past 10 years, and
the backlog in state-issued permits has doubled over
that time. As the universe of NPDES permits expands
to cover storm water and concentrated animal feeding
operations, the backlog is likely to increase unless
additional effort is exerted. The expanding backlog
threatens the environment, because expired NPDES
permits may not reflect the most recent applicable
effluent limitation guidelines, water quality standards,
or Total Maximum Daily Loads. EPA headquarters and
regional offices are working together closely to track
both Agency and state-issued permit efforts. (FY 1998-
2000 OIG Management Challenge; declared a material weakness
FY 1998.)
Corrective Action Strategy: During the past year EPA's
Deputy Administrator sent a memorandum to Regional
Administrators directing them to submit a current
backlog reduction plan for every state and territory in
each region by May 15, 2000. The backlog reduction
strategies developed by the regions reaffirm regional
and state commitments to meet the Agency's backlog
reduction targets. During FY 2000 the backlog of
NPDES permits was reduced from 46 percent to
30 percent. EPA expects to eliminate the backlog by
FY 2005. (Also see OIG List of EPA Top Management
Challenges^)
5. Construction Grants Close Out (Goal 2): Without
timely closeout of construction grants, millions of
dollars in potentially ineligible program costs cannot
be recovered for use in other high-priority state clean
water projects. (FY 19920MB candidate material weakness;
declared an Agency weakness FY 1992; elevated to a material
weakness FY 1996.)
Corrective Action Strategy: The Construction Grants
Completion/Closeout Strategy developed in 1990
required EPA to assess the remaining workload in each
region every year, to identify the bottlenecks, and to
enter into agreement on a closeout plan and follow-up
actions. States are required to submit annual work plans
and closeout strategies. The number of open grants
has decreased from 5,860 in 1990 to 177 in 2000, and
EPA expects to complete corrective actions in FY 2002.
As shown in the accompanying table, EPA has made
significant progress over the years to correct integrity
weaknesses reported to the President and Congress.
Since 1997 the Agency has not reported any new
financial nonconformances, which are failures of a
financial system to comply with government
requirements.
STATISTICAL SUMMARY OF PERFORMANCE
Material Weaknesses
Section 2
1988-
1996
1997
1998
1999
2000
Total
Reported
44
1
1
0
3
49
Corrected
39
3
0
1
1
44
Pending
5
3
4
3
5
5
Financial Nonconformances
Section 4
1988-
1996
1997
1998
1999
2000
Total
Reported
18
0
0
0
0
18
Corrected
15
3
0
0
0
18
Pending
3
0
0
0
0
0
FY 2000 Management Accomplishments and Challenges
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MAJOR MANAGEMENT CHALLENGES
This portion of Section III presents a. brief
description and summary of activities planned in
response to 19 management challenges identified by
GAO, OMB, OIG, and EPA itself. The Agency will
continue to use the tools available under GPRA and
other management statutes to assist in addressing these
issues. Five of the 19 major management challenges
are linked to GPRA goals and measures. Twelve of
EPAs management challenges are being addressed as
internal Agency weaknesses for which the Agency
develops specific and measurable corrective actions and
reports on progress to the Administrator.
1. Relationships with States (NEPPS) (Cross-goal,
addressed in the "Overview and Analysis"): Under
the National Environmental Performance Partnership
System (NEPPS), the Agency committed to long-term
collaboration with state agencies to improve EPA and
state management of national environmental programs.
(FY 1999 GAO major management challenge;FY 2000 GAO
and OIG major management challenge.)
Corrective Action Strategy: A national EPA-state
workshop reviewed evaluations and developed the
following recommendations for strengthening NEPPS:
(1) recommit to the fundamental principles of NEPPS;
(2) coordinate and integrate systems/programs; and (3)
improve performance measures. Actions taken in
response to these recommendations include reaffirming
EPAs commitment to NEPPS; designating "NEPPS
Leaders" at the senior management, mid-management,
and staff levels; producing a crosswalk of GPRA annual
performance measures and NEPPS core performance
measures; completing an internal training survey to help
strengthen the skills of NEPPS practitioners; and
implementing a work plan that commits to developing
better tools for NEPPS practitioners. (Also see OIG List
of EPA Top Management Challenges^)
2. Safe Drinking Water Information System
(SDWIS) (Goal 2): The Agency established SDWIS
to serve as the central repository for data on both the
states' implementation of and compliance with existing
and new drinking water regulations. In 1998 EPA
supported a series of data verification audits, the results
of which pointed out serious data quality and reliability
issues. (FY 1999 OMB candidate material weakness; declared
an Agency weakness FY 1999.)
Corrective Action Strategy: EPA is implementing a
data reliability action plan developed in 1999 as a multi-
step approach to improve data in SDWIS. Two
important steps completed by the end of 1999 included
(1) an industry survey analysis in which water utilities
examined and compared data in SDWIS with the
utilities' own data, and (2) a study of the variety of
ways that states are organized to carry out drinking water
program responsibilities and the effects of these
organizations on data collection. This effort laid the
groundwork for state-specific, on-site training that is
expected to enhance and improve the completeness,
accuracy, and timeliness of the data in SDWIS.
Completion of corrective actions is expected during
FY2001.
3. Water Quality Standards (Goal 2): The Agency
must reduce the backlog of actions to approve,
disapprove, and promulgate water quality standards.
This backlog includes 43 water quality standards from
20 states, one territory, and six tribes that EPA has not
yet approved or disapproved, and 23 disapprovals in
15 states that have not been resolved. In addition to
the overdue standards there is a backlog of
40 Endangered Species Act consultations with 15 states
and two tribes on standards provisions that EPA has
approved. Another 16 states, three territories, and eight
tribes have not completed triennial reviews in the past
3 years as required by the Clean Water Act. EPA
identified these backlogs through routine reporting and
program reviews and is concerned that without
corrective action the backlogs may grow (Declared an
internal Agency weakness FY 1999.)
Corrective Action Strategy: EPA is employing a two-
tiered strategy in an effort to eliminate the existing
backlog. In the short term EPA is giving high priority
to resolving the outstanding disapprovals and
unreviewed standards. EPA made considerable progress
in FY 2000, reducing both the number of outstanding
disapprovals and the number of unreviewed standards.
In the longer term the Agency is working to identify
and eliminate the problems that have led to the backlogs
and other concerns. Completion of corrective actions
is expected by FY 2004.
4. Resource Conservation and Recovery Act (RCRA)
Corrective Action Program (Goal 5): EPA and other
stakeholders, including GAO, have identified several
factors impeding timely and cost-effective cleanups under
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RCRA. To address the problem, GAO recommended
that EPA devise a strategy for ensuring that cleanup
managers in EPAs regions and states have a consistent
understanding of new approaches outlined in guidance
or regulation and that EPA oversee program
implementation to determine whether cleanup managers
are using the new approaches appropriately. (FY 1999
GAO major management challenge; declared an internal Agency
weakness FY 1999.)
Corrective Action Strategy: EPA has already
undertaken a number of regulatory, guidance, and
oversight initiatives consistent with GAO's suggestions.
A number of additional actions are planned for the
near future and the long term, including providing new
results-oriented cleanup guidance with clear objectives;
encouraging maximum use of program flexibility and
practical approaches through training, outreach, and
new uses of enforcement tools; and enhancing
community involvement and greater public access to
information on cleanup progress. Completion of
corrective actions is expected by FY 2001.
5. Superfund 5-Year Reviews (Goal 5): Without
timely and adequate 5-year reviews Congress and the
public are not assured of the continued effectiveness
of remedial actions at sites where waste left on site
exceeds that allowed for unlimited use of and
unrestricted exposure to land where cleanups took place.
(FY 1999 OIG major management issue; declared an internal
Agency weakness FY 1999.)
Corrective Action Strategy: During the first quarter
of FY 2000 EPA established the Superfund
Consolidated Accomplishments Plan (SCAP), which
targeted for completion 92 5-year reviews due in
FY 2000 and 46 of the backlogged 5-year reviews (one-
third of the backlog) for a total of 138 reviews. A total
of 183 5-year reviews were completed that included 75
reviews due in FY 2000, 69 backlogged reviews, and
39 additional regional reviews. A total of 86 reviews
(17 from FY 2000 and 69 of the remaining backlog)
are still overdue and are targeted for completion during
FY 2001 and 2002, alongwith the reviews due for each
year. Completion of corrective actions is expected by
FY 2002. (Also see OIG List of EPA Top Management
Challenges^)
6. Superfund Independent Government Cost
Estimates (IGCEs) (Goal 5): GAO believes that EPA
is too reliant on contractors' own cost estimates and
definitions of work in providing cost-reimbursable work
to the Agency. (FY 1997 and 1999 GAO major management
challenge; declared an internal Agency weakness FY 1997.)
Corrective Action Strategy: The Agency established
a national IGCE workgroup to develop and implement
corrective actions to address this issue. The U.S. Army
Corps of Engineers conducted in-depth reviews of
IGCEs in every EPA region and issued its final report
in December 1999, which identified problems and
guidance needed. Additional actions taken include
sharing best practices for preparing IGCEs and lessons
learned, providing additional training to personnel who
prepare IGCEs, expanding the review of IGCEs during
regional contract reviews, expanding the use of regional
databases to provide historical data to be used in IGCE
preparation, and standardizing statements of work and
baselines for recurring activities. EPA and GAO agree
that the Agency should monitor the corrective actions
closely and keep IGCEs a high priority. Completion of
corrective actions is expected in FY 2001.
7. Superfund Remedial Action Contracts (Goal 5):
Routine contract oversight and monitoring activities
have found that the percentage of total contract costs
expended for program management under response
action contracts (RACs) may be too high. (FY 1997
GAO major management challenge; declared an internal Agency
weakness FY 1997.)
Corrective Action Strategy: During FY 2000 the
Agency continued to take significant steps to increase
the capacity utilization of RACs and to contain and
minimize program management costs. The most recent
quarterly report for actual costs through September 2000
shows that the overall national program management
percentage has been reduced to 6.9 percent. This
represents a dramatic decrease from September 1999,
when the national program management percentage
stood at 14.6 percent, and reflects the Agency's
continuing efforts to monitor closely and reduce RAC
program management costs. Completion of corrective
actions is expected by FY 2002.
8. Great Lakes Program (Goal 6): The U.S.-Canada
Great Lakes Quality Agreement calls for Lakewide
Management Plans (LaMPs) and Remedial Action Plans
(RAPs) to support the restoration and maintenance of
the chemical, physical, and biological integrity of the Great
Lakes. At the Agency's request OIG evaluated the Great
Lakes Program to provide advice and assistance on how
to improve the LaMP and RAP processes and develop
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and implement effective national strategies and agreements.
(FY1999 OIG major management challenge.)
Corrective Action Strategy: Agency progress over the
past year included implementing a tracking system to
address the issues, re-instituting the Great Lakes U.S.
Policy Committee to increase attention to RAP issues,
and drafting a Great Lakes Strategy that emphasizes
goals and measures. In addition the Agency and its
partners issued LaMPs for each lake in April 2000. EPA
will continue to respond to the need to accelerate RAP
progress and complete the Great Lakes Strategy. (Also
see OIG Ust of EPA Top Management Challenges^)
9. Data Management Practices (Goal 7): EPA needs
to i rove the management, comprehensiveness,
consistency, reliability, and accuracy of its data to help
better measure performance and achieve environmental
results. In addition, EPA needs to develop error
detection processes to ensure that errors in Agency
databases are addressed appropriately and in a timely
and documented fashion. EPA broadened the scope
of an existing internal Agency data management
weakness, consolidating Agency efforts to address the
multiplicity of issues related to information
management, data accuracy, and error correction.
(FY 1998-1999 GAO andOIG major management challenge;
FY'2000 GAO, OMB, and OIG major management challenge;
IBM data management declared an Agency weakness FY 1994;
scope of weakness expanded FY 2000.)
Corrective Action Strategy: EPA is working internally
and in partnership with the states to improve data
management, comprehensiveness, consistency,
reliability, and accuracy for better performance
measurement and achievement of environmental
results. EPA, states, and tribes formed the
Environmental Data Standards Council to promote
further development and implementation of data
standards. Work is under way to develop standards for
permitting, enforcement and compliance, tribal
identifiers, and geolocational data that are expected to
be approved in FY2001. All six data standards that
EPA adopted previously are now being implemented,
as appropriate, in Agency information systems, and EPA
has engaged the managers of scores of data systems in
helping to develop implementation plans. The systems
are at varying stages of standards implementation, but
all of the thirteen major data systems have completed
implementation of at least one of the six data standards,
and at least one system has implemented all of the
applicable standards. In addition, as part of its
environmental information integration effort, EPA
developed a 5-year Integration Management Plan that
includes a series of planning documents and specific
actions.
To further achievement of shared Agency-state
objectives for improving data management integration,
EPA collaborated with the states to develop a Network
Blueprint that outlines the plans and components
required to establish a national network for data
exchange of environmental information and defines
how it will operate. The components include data
standards, data exchange templates, trading partner
agreements, a central data exchange infrastructure, a
Facility Registry System, and other data registries. EPA
is also working to expand implementation of its
Integrated Error Correction Process, developed in
July 2000. Since that time, 195 errors have been
reported, of which 78 have been resolved. (The
reporting or allegation of an error does not imply that
it is an error. In fact almost 100 data points reported as
errors have been investigated and found to be correct.)
EPA is also developing a Data Quality Strategic Plan to
improve the quality and reliability of environmental
data, as well as an Agency-wide Enterprise Architecture
that will guide the creation and revision of EPA's
programmatic and regional information systems. The
Agency anticipates that all corrective actions will be
completed by the end of FY 2002. (Also see OIG Ust of
EPA Top Management Challenges^)
10. Laboratory Quality System Practices (Goal 7):
Through internal reviews and OIG investigations, the
Agency has found management control weaknesses and
some cases of misconduct in laboratories concerning
data quality that could impact environmental and
enforcement decisions. (FY 1999—2000 OIG major
management challenge; declared an internal Agency weakness
FY'2000.)
Corrective Action Strategy: EPA completed
independent technical reviews of its regional
laboratories in FY 2000 to assess the Agency's ability
to produce data of known and documented quality. The
Agency will complete reviews of the remaining
laboratories by the end of FY 2001. Ongoing actions
include assembling a workgroup consisting of both
EPA and non-EPA members that will (1) identify
weaknesses in laboratory quality systems that produce
analytical data used for Agency decision making; (2)
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establish methods to detect and deter misconduct in
labs; and (3) promote best practices in laboratory
performance, documentation, and implementation. In
addition each EPA organization will be responsible for
establishing management controls to ensure that
environmental measurement data supplied by
laboratories is of known and documented quality. This
effort includes monitoring and oversight of the
development and implementation of Agency-approved
quality systems by third parties. Completion of
corrective actions is expected by December 2003. (Also
see OIG Ust of EPA Top Management Challenges^)
11. Results-Based Information Technology Project
Management (Goal 7): EPA and its partners need to
plan strategically for implementing a common data
architecture, data standards, geospatial information, and
one-stop electronic reporting in order to share
environmental information with EPAs diverse partners
and stakeholders and facilitate environmental protection
efforts. In addition the Agency needs to ensure that
information technology projects are timely, cost-
effective, and results—based. (FY 2001 OIG major
management challenge.)
Corrective Action Strategy: EPA has already begun
to address the systemic issues of information
technology project planning and management. For
example EPAs environmental information integration
effort provides a new approach to state-data
relationships and new technologies. Over the next few
years EPA plans to develop a more robust and rigorous
program to meet the architectural and investment
management requirements of the Clinger—Cohen Act.
As part of this effort EPA plans to expand its project
management review criteria for projects with annual
costs greater than $1 million or more than $5 million
over the life-cycle of the system to ensure greater
accountability and capability to produce results. (Also
see OIG Ust of EPA Top Management Challenges^)
12. Reinventing Environmental Regulation (Goal
8): In January 1999 GAO reported that EPAs current
regulatory system is costly and occasionally inflexible
and that the Agency faces challenges in making changes
to the current system. These challenges include helping
employees understand and support changes and
reaching consensus among stakeholders on objectives
and approaches for addressing important reinvention
issues and policies. (FY 1999-2000 GAO major
management challenge.)
Corrective Action Strategy: Efforts are under way to
achieve better environmental results with less burden
through the use of innovative and flexible approaches.
Actions taken to date include:
• Reorganizing the Agency's policy and reinvention
staff into one organization focusing on
innovation, economic analysis, and support for
business and community environmental
approaches.
• Building Agency c ap acity for evaluating innovative
policies and approaches.
• Finalizing 50 Project XL (eXcellence and Leadership)
agreements, continuing follow-through on XL and
state innovation projects, and implementing an
annual cycle of evaluation for Project XL pilots.
• Initiating the Performance Track Program to
recognize high-performance companies.
• Establishing regular forums and networks with
small businesses and industrial sectors.
13. Permit Compliance System (PCS) (Goal 9):
OMB believes that, because of missing data and data
quality problems, PCS is not a reliable source of
information for the management and oversight of the
Clean Water Act NPDES program. (FY 1999 OMB
candidate material weakness; declared an internal Agency
weakness FY 1999.)
Corrective Action Strategy: EPA has been aware of
problems with PCS and, over the past few years, has
worked with the states to identify problems and define
the systems revisions needed for effective NPDES
program management and oversight. In conjunction
with the states, EPA has three major initiatives under
way that are intended to improve the usefulness of the
system as a management tool: PCS modernization,
interim data exchange format, and electronic reporting.
EPA is monitoring progress carefully and will gauge
success by the level of state participation, improvements
in the quality and comprehensiveness of the data, and
reliability of the analyses generated. Completion of
corrective actions is expected by FY 2003.
14. Accountability (Goal 10): OIG describes this
major management challenge broadly to encompass the
Agency's planning, budgeting, and accountability
functions overall and points specifically to issues related
to managerial cost accounting, performance partnership
agreements, and the Great Lakes Program. (FY 1997-
2000 OIG major management challenge.)
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Corrective Action Strategy: EPA has made significant
progress over the past few years in strengthening results-
based management, including development of a goal-
based budget and planning and accountability functions
to support it. In FY 2000 EPA issued its revised
Strategic Plan for FY 2000-2005 that reflects lessons
learned about performance measurement and Agency
priorities for protecting the environment and human
health, improved performance measures to reflect better
programmatic and environmental outcomes, and
strengthened cost accounting to link more clearly
Agency budgetary resources with the achievement of
environmental results. It must nevertheless be kept in
mind that the resources identified with a particular
environmental outcome will rarely, if ever, fully capture
the relevant costs. For example, the Great Lakes
program benefits greatly from work done in other
programs, including overall water quality protection and
the acid rain program. Since resources cannot be
double-counted, such omissions are inevitable. (Also
see OIG Fist of EPA Top Management Challenges^)
15. Agency Process for Preparing Financial
Statements (Goal 10): According to OIG, EPAs
process for preparing financial statements needs
improvement to enable the Agency to submit audited
financial statements by March 1 of each year. (FY 1999—
2000 OIG major management challenge; declared an internal
Agency weakness FY 1999.)
Corrective Action Strategy: In an effort to deliver
timely financial statements and obtain clean audit
opinions by March 1, 2001, EPA has issued policies
and procedures on the Agency's financial statement
preparation process, prepared interim financial
statements, reached agreement with OIG on the
timeline for key milestones, established formal controls
with OIG to address audit questions and adjustments,
and provided technical training to staff responsible for
financial statements. In addition, the Agency is
examining options for automating the preparation of
statements. Completion of corrective actions is
expected in FY 2001, and OIG has issued an unqualified
opinion on the Agency's FY 2000 statements.
16. Managerial Cost Accounting (Goal 10): OIG
believes that EPA needs to improve its cost accounting
systems and processes to provide Agency managers with
timely and reliable information on the cost of carrying
out EPAs programs and administrative activities. In the
Agency's FY 1999 financial statement audit, OIG
reported that EPA did not comply with the Managerial
Cost Accounting Standard requirements to (1)
determine the full cost of its activities, (2) accumulate
and report on a regular basis the cost of activities for
management information and other stakeholder
purposes, and (3) use appropriate costing methodologies
to accumulate and assign costs to outputs. (FY 2000
OIG major management challenge.)
Corrective Action Strategy: EPA believes that it
substantially complies with the Managerial Cost
Accounting Standards. Since FY 1999 all new
obligational authority has been budgeted and accounted
for in the Agency's GPRA 10-goal structure using a
Program Results Code (PRC). The PRC provides the
structure whereby all the costs that benefit the activities
in a particular goal and objective, regardless of national
program manager or program office, are accumulated
to show the cost of the Agency's outputs. Some indirect
costs are accumulated in distribution accounts and
allocated to the appropriate PRC. Obligations made
before FY 1999 are accounted for in the old program
element structure. Cost information from both
accounting structures is available for use by managers
to review how resources are spent to achieve expected
results and to help them make future budgeting
decisions.
Cost accounting is a process that will continue to
evolve as a result of on going improvements and
enhancements. EPA has taken a number of actions and
has planned others to strengthen cost accounting
further. The Agency has:
• Linked resources in the Annual Plan and Budget
with the GPRA goal structure, beginning with
FY 1999.
• Issued policy and guidance and provided training
on budget restructuring and cost accounting.
• Issued Superfund indirect cost rates that comply
with the Managerial Cost Accounting Standards.
• Issued the FY 2000 Statement of Net Costs by goal
in the Agency's Annual Financial Statements.
The Agency is currently:
• Developing reports on outputs that combine both
the old and new structure.
• Workingwith individual program offices to address
specific accounting needs.
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• Assisting programs in developing indirect costs for
user fees.
(Also see OIG Ust of EPA Top Management Challenges^)
17. Improved Management of Assistance
Agreements (Goal 10):OIG audits have found that
EPA needs to validate the effectiveness of its strategy
for ensuring effective management of its assistance
agreements. (FY 2000 OIG major management challenge;
grants closeout and oversight of assistance agreements was declared
a material weakness inFY 1996, reported substantially corrected
in FY 1999 and redesignated as an internal Agency weakness;
grants closeout was corrected in FY 2000; and improved
management of assistance agreements was declared an internal
Agency weakness in FY 2000.)
Corrective Action Strategy: The Agency closed the
grants closeout portion of this weakness in FY 2000,
reporting that all but 26 grants of the estimated backlog
of 19,000 reported to Congress in July 1996 were closed.
Twenty-four of the remaining 26 grants will be closed
out as the Agency resolves an outstanding indirect cost
rate issue. The remaining two grants will be closed out
as the Agency completes the audit resolution process.
To manage grant closeouts more efficiently, EPA has
established interim closeout goals for each year. Each
Grants Management Office submitted its FY 2000
grants closeout strategy as required. In addition the
Agency developed and implemented policies to ensure
effective post-award management of EPA assistance
agreements.
During FY 2001 EPA will assess whether the
Agency manages its assistance agreements appropriately,
both administratively and programmatically. The
Agency will examine quarterly reports and information
from the Grantee Compliance Assistance Database;
conduct evaluations of Management Effectiveness
Reviews, post-award plans, and the Grantee Compliance
Assistance Initiative; and consult with Senior Resource
Officials in conducting the assessments and with OIG
to validate corrective actions. Completion of corrective
actions is expected by FY 2002. (Also see OIG Ust of
EPA Top Management Challenges.)
18. Human Capital Strategy Implementation (Goal
10): EPA must devote considerable attention to building
a workforce with the highly specialized skills and
knowledge required to accomplish the Agency's work
or risk seriously weakening its ability to fulfill even the
most basic of its legal, regulatory, and fiduciary
responsibilities. With its Human Capital Strategic Plan
in place, the Agency has a blueprint for the initial and
longer-term steps needed to begin addressing this
impending weakness. (FY 1998-1999 OIG major
management challenge; FY 2000 GAO and OIG major
management challenge; declared an internal Agency weakness
FY2000.)
Corrective Action Strategy: The Agency's workforce
planning efforts call for identifying the skills needed in
every program unit based on an assessment of future
program needs, determining the gap between those
needs and the current state, and tying those needs to
future budget development. Developmental programs
aimed at support staff, mid-level professionals,
managers, and the Senior Executive Service (SES) are
being implemented or are in final design. The first SES
Candidate Development Program to be offered in more
than a decade will begin this spring. Completion of
corrective actions is expected by FY 2003. (Also see OIG
Ust of EPA Top Management Challenges^)
19. Performance Partnership Grants (PPG) (Goal
10): During regional audits on PPGs, OIG found that
(1) Agency officials had difficulty determining how to
provide flexibility while ensuring accountability for
performance and environmental results; (2) some PPGs
did not include quantifiable, verifiable, measurable, and
time-specific measures; and (3) some PPGs included
activity-based measures rather than outcome-based
measures. OIG concluded that EPA and states have
not been able to redirect scarce resources to improving
environmental results and that the lack of goals and
performance measures contributed to the poor
integration of NEPPS. OIG believes that greater
integration and acceptance of NEPPS in the Agency,
combined with meaningful performance measurement,
would result in rapid environmental improvements.
(FY 1997 OIG issue addressed as part of management challenge
on accountability^)
Corrective Action Strategy: Following the
promulgation of regulations to establish the PPG
program for states and to add a new regulation
specifically for Indian tribes, EPA is working to
implement and provide training on the state and tribal
PPG regulations. The Agency anticipates publishing the
final rules in FY 2001, pending concurrence from OMB.
In addition EPA will include PPGs in its administrative
Management Oversight Reviews. Completion of
corrective actions is expected in FY 2001.
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MANAGEMENT'S REPORT ON AUDITS
During FY 2000 EPA made significant progress in
reducing the number of audits without final action as
well as strengthening its audit management practices
Agency-wide. EPA reduced the number of audits
without final action after 1 year by 35 percent, from 62
in FY 1999 to 40 in FY 2000. Overall, EPA was
responsible for addressing OIG recommendations and
tracking follow-up activities on 503 audits in FY 2000.
The Agency achieved final action on more than half
of these audits within 1 year.
In addition to strengthening Agency-wide audit
follow-up activities for promptly addressing audit issues,
EPA began to develop a new web-based system to
improve its efficiency in audit management practices.
The Agency plans to implement the new system in
FY 2001. EPA continues to work with OIG and senior
managers to emphasize the importance of timely and
effective audit management practices. Following is a
summary of the Agency's audit management activities
for FY 2000.
Final Action Taken: EPA achieved final action on
32 performance audits and 244 financial audits. Of the
244 financial audits, OIG questioned costs of more
than $59.6 million. After careful review OIG and the
Agency together agreed to disallow $29.8 million of
these questioned costs. For this period EPA
management and OIG did not identify audits for which
resources could be better utilized (that is, put to better
use) based on findings in a performance audit.
Final Action Not Taken: As of September 30, 2000,
227 audits were without final action (excluding those audits
with management decisions under administrative appeal
by the grantee). Of these 227 audits, EPA officials had
not completed final action on 40 audits (18 percent) within
1 year after the management decision.
DISALLOWED COSTS AND FUNDS PUT TO BETTER USE
Category
Audits with management decisions but without final
action at the beginning of FY 20001
Audits for which management decisions were
reached in FY 2000
Total audits pending final action during FY 2000
Final action taken during FY 2000:
(i) Recoveries
a) Offsets
b) Collection
c) Value of Property
d) Other
(11) Write-Offs
(iii) Reinstated Through Grantee Appeal
(iv) Value of recommendations completed
(v) Value of recommendations management decided
should/could not be completed
Audits without final action at end of FY 2000
Disallowed Cost
(Financial Audits)
Number
196
228
424
244
180
Value
$ 166,793,646
$ 23,263,486
$190,057,132
$ 29,811,957
$ 18,182,932
$ 4,142,067
$ 0
$ 191,000
$ 5,375,496
$ 1,920,462
$ 160,245,175
Better Use
(Performance Audits)
Number
57
22
79
32
47
Value
$0
$0
$0
$0
$0
$0
$0
1 Differences in number of reports and amounts of disallowed costs and funds put to better use between this report and our previous semiannual report result
from adjustments made to follow-up data in the tracking system.
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Audits Awaiting Decision on Appeal: EPA
regulations allow grantees to appeal management
decisions on financial assistance audits that seek
monetary reimbursement from the recipient. In the case
of an appeal, EPA must not take action to collect the
account receivable until the Agency issues a decision
on the appeal. As of September 30, 2000, there were
74 management decisions in administrative appeal
status.
Audits Pending Final Action Beyond 1 Year: Due to
the complexity of the issues, Agency management often
requires longer than 1 year to complete corrective action
on audits conducted by OIG. Beginning October 1,2000
management will track 40 audits with outstanding
corrective actions after the 1-year period. These audits are
discussed below by category—contracts, single audits,
assistance agreements and program performance—and
identified by title and responsible office.
Contracts: Final action for contract audits occurs
when the contract is awarded, the solicitation is
canceled, repayments to EPA are received, or corrective
actions are implemented. EPA is tracking completion
of one audit taking longer than 1 year to complete.
Office of Acquisition Management:
10040 CMC, Inc.
Single: Single audits are those that affect nonprofit
organizations, universities, and state and local governments.
Final action for single audits occurs when nonmonetary
compliance actions are completed. This process may take
longer than 1 year to implement if the findings are complex
or if the grantee does not have the resources to take
corrective action. EPA is tracking completion of corrective
actions on three single audits.
Region 9:
85018 Arizona
85053 Colorado River Indian Tribes, Arizona
85059 Colorado River Indian Tribes, Arizona
Assistance Agreements: Final action for assistance
agreement audits occurs when all corrective actions have
been implemented. Final action may take longer than a
year because the grantee may appeal, refuse to repay,
or be placed on a repayment plan that spans several
years. EPA is tracking 11 audits with financial or
associated corrective actions taking longer than 1 year
to complete.
Region 3:
12023 Bath County Service Authority
20207 Center for Environment,
Commerce Engineering
Region 4:
73023 Atlanta, Georgia
Region 7:
13038 Metro St. Louis Sewer District
Region 5:
13084 Strongsville, Ohio
13115 Gallon, Ohio
14038 Gary, Indiana
14042 Cass County, Michigan
14047 Indianapolis, Indiana
24077 Gary, Indiana
34038 Flint, Michigan
Program Performance: Program performance
audits include reviews of Agency programs and audits
of EPAs financial statements. Final action for program
performance audits occurs when all corrective actions
have been implemented. This process may take longer
than 1 year when corrections are complex and lengthy.
EPA is tracking 25 audits in this category.
Office of the Administrator:
61301 Environmental Education
71277 Regional Labs Office of
Environmental Information:
51240 PCIE Application Maintenance
81240 Field Sampling Capping Report
Office of the Chief Financial Officer:
21660 Superfund FY91 Trust Fund
81058 FY 1997 Financial Statement
81166 FY 1997 Financial Statement
Office of Prevention, Pesticides, and Toxic Substances:
11378 Pesticides Inerts
34030 Pesticides Banned (follow-up)
41205 Pesticides Theme Report
Office of Research and Development:
P0217 Selection of Peer Reviewers
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Office of Water:
71142 Animal Waste Disposal Issues
71223 Mining Financial Assurance
Office of Solid Waste and Emergency Response:
51512 Manifesting Requirements
71114 Audit of RCRA Hazardous Waste Data
71132 Lab Data Quality - Federal Facilities
81090 Replacement Housing
81234 Audit of Deferrals to States
Region 5:
10058 Tribal Water Grants
P0055 RCRA SIG Non-Compliers
P0210 Ohio Water Quality
P0212 GLNPO
Region 9:
83004 Physical Environmental
Region 10:
81094 Air Enforcement Program, Washington
81252 Region X LANS
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MAJOR MANAGEMENT CHALLENGES NEEDING HIGH-LEVEL AGENCY ATTENTION
(Prepared by EPA's Office of Inspector General)
ACCOUNTABILITY
EPA's stated mission is to protect human health
and safeguard the environment. Accountability, a critical
part of the Agency's overall system, is needed for EPA
to accomplish its mission effectively. Over the years
OIG has recommended improvements in a number of
areas that will help EPA achieve greater accountability.
However EPA needs to take further action to develop
accountability systems that tie performance to the
Agency's organizational goals.
EPA can be viewed as a business which must
endeavor to deliver high quality products and services
to its customers. To do this EPA needs to integrate its
management systems better. These systems encompass
leadership to define the Agency's mission, values, and
products; strategic planning to establish goals and
measures of success; customer focus to ensure
expectations are met; management information systems
to report progress in achieving goals; streamlined work
processes; and effective human capital management.
These components should all work together so that
EPA can meet customer needs and achieve desired
environmental and business results.
EPA was consciously organized with ten largely
autonomous regional offices so that the Agency could
be more sensitive to local environmental concerns. With
this organizational structure it is very important that
regional offices be held accountable for implementing
national environmental policies. Resources budgeted for
environmental programs by EPA Headquarters should
be controlled and accounted for to ensure they are used
for designated purposes. This can be achieved through
clearly defined goals, performance measures, and areas
of responsibility; better tracking of how employees
spend their time; and greater commitment to achieving
national goals.
EPA needs to work with its state, tribal, and federal
agency partners to identify roles and responsibilities
for carrying out environmental protection. For example,
in work on the Great Lakes Program, we found that
plans to address the Great Lakes ecosystems would
benefit from clarifying the organizational roles and
responsibilities for the offices, divisions, and teams
involved. Another example is the 1998/1999 RCRA
Implementation Plan, which did not include specific
expectations regarding basic permit program
maintenance. Clarification of roles and responsibilities
for this program would establish accountability and help
the program achieve success.
The availability of management information also
greatly impacts accountability. EPA needs to work with
its partners to identify and agree on what data is needed
to measure the health of the environment and assess
progress. As further discussed under the information
resources data management weakness, the Agency has
a number of ongoing activities to improve the quality
and availability of its environmental data; however, it is
unlikely EPA will have the foundation it needs to share
comparable information, monitor environmental
activities, or compare progress across the nation in the
near future.
RESULTS-BASED INFORMATION
TECHNOLOGY PROJECT MANAGEMENT
As the Agency looks to its future it is increasingly
apparent that EPA has not adequately planned an
information technology (IT) infrastructure to support
an integrated approach to managing environmental
information. To facilitate improvements in
environmental protection EPA needs to provide and
share environmental information with its diverse
partners and stakeholders. To achieve that goal EPA
and its partners need to plan strategically for
implementing a common data architecture, data
standards, geospatial information, and one-stop
electronic reporting. Although EPA has initiated
numerous IT projects in recent years, they were not
evaluated to assess how they support the Agency's
programmatic and operational goals. In the last 2 fiscal
years, EPA has dedicated approximately $822 million
to IT projects. The Agency expects it will spend at least
$472 million in FY 2001. To ensure projects are timely,
cost effective, and results-based, it is imperative that
EPA better plans, develops, approves, and manages its
IT projects.
We have significant concerns regarding the current
structure of EPA's investment process and the Agency's
ability to track IT development and implementation
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effectively. For several years EPA has attempted to
address these problems but has been unable to craft an
adequate project management process for IT capital
investments that will enable the Agency to support its
environmental mission. Instead EPA appears to have
an evolving approach to integrating information using
existing IT projects, which in themselves have not
incorporated reasonable project management controls.
This approach has resulted in many stops and starts
over the last several years and does not meet the intent
of the Clinger-Cohen Act of 1996. The Act requires a
comprehensive approach to capital planning and a
disciplined budget process for managing a portfolio of
assets to meet Agency goals and objectives.
Our concerns regarding the lack of IT project
management at EPA are echoed in the special report,
Federal Agency Compliance with the Clinger-Cohen Act, issued
by the Senate Governmental Affairs Committee. This
report noted that EPA could produce no evidence of
mission-related reviews or assessments regarding IT
projects that discussed programmatic or operational
goals. EPA's own 1999 analysis of 49 major IT
investment proposals found that:
• Project milestones were too general, non-
measurable, and not tied to key life-cycle milestones.
• Projects were still being planned, developed, and
managed in a stovepipe fashion.
• EPA had not established Agency-wide priorities for
IT investments.
• EPA's Information Resources Management
Strategic Plan was outdated and did not track with
the Results Act.
EPA created the Office of Environmental
Information (OEI) 2 years ago to consolidate many
information technology operations. While well-
intentioned, OEI has not formalized a long-term
implementation strategy for providing the Agency with
a multimedia approach to accomplish its various
programmatic missions.
DATA MANAGEMENT
Audits of EPA programmatic areas often cover
areas relating to environmental data information
systems, and we frequently find deficiencies within these
systems. States have developed information systems
based on the information they need to support their
environmental programs. EPA and the states often
apply different data definitions within their respective
information systems and sometimes collect and input
different data. As a result states and EPA report
inconsistent data and often have difficulty sharing
comparable information. EPA has attempted to address
data quality issues such as data gaps, but, to date, has
not produced an approved action plan. Consequently
EPA may not have the environmental data it needs to
monitor environmental activities or compare progress
across the nation.
For many years EPA has acknowledged data
management as an internal Agency weakness. In
particular it has recognized the need to implement (1)
a data architecture, (2) data standards, and (3) data
administration functions to share environmental data
Agency-wide and with EPA's partners and stakeholders.
Developing a data management program has been a
complex effort and, consequently, corrective action
dates have been extended several times since the
problem was first reported in 1994. The Agency's
estimated date to correct this Agency weakness is now
FY 2002.
Several areas remain to be addressed. First EPA
committed to publish a data architecture by December
1996. The Agency stated that it completed the corrective
action in May 1999, but it has been unable to produce
evidence of a publication for our review Second EPA
initiated action to promulgate six data standards by June
1996. Although the standards have been formally
approved, they have not been implemented in the
Agency's major environmental systems. Third EPA
agreed to revise policies and procedures by March 1997,
and although this action was reported complete in May
1999, the revised policies have not been approved or
implemented. Using the data standards and revised
procedures, EPA stated that a functioning management
structure would be operational by September 1998.
EPA's Environmental Data Registry and Facility Registry
System (FRS) were to form the backbone of the
management structure. However it will be FY 2001
before FRS is fully loaded and functioning.
In 1999 EPA formed OEI to increase the value of
environmental information for all stakeholders by
systematically improving interagency data sharing, as
well as the accuracy, reliability, and scientific basis of
environmental information. The Administrator also
established an Information Integration Initiative (1-3)
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focused on establishing a single integrated multimedia
core of environmental data and tools. After 1 year the
1-3 project still does not have an approved action plan
to coordinate current and future efforts.
OEI recognizes that much needs to be done to
realize EPA's vision of integrated, quality environmental
information and expects to develop a long-term
approach and implementation schedule for improving
the quality and reliability of the Agency's environmental
data. To that end OEI will continue to develop data
management policies and procedures and work on
promulgating existing data standards. Moreover,
through the recently-established Environmental Data
Standards Council, EPA will work with states and tribes
to identify and develop the next set of data standards.
OEI is also continuing to develop and expand
implementation of its integrated error correction
process to improve the reliability of collected
environmental data. Finally, in FY 2000, EPA began to
plan a comprehensive data exchange network which,
through the use of current technology, will provide a
wide range of shared information among EPA, states,
tribes, localities, the regulated community, and other
data partners.
Although the Agency is moving in the right
direction, it has not developed an overall strategy to
address the integration, quality, and management of its
environmental data. To help the Agency achieve success
in these endeavors, we shared thoughts with EPA's Chief
Information Officer regarding the Agency's strategy and
planned activities for 1-3 and the proposed exchange
network. At this point it is unlikely that EPA will have
the foundation it needs to share comparable
information, monitor environmental activities, or
compare progress across the nation within the near
future. Moreover EPA's ability to evaluate the outcomes
of its programs in terms of environmental changes will
continue to be limited by gaps and inconsistencies in
the quality of its data.
MANAGERIAL ACCOUNTING
During the audit of the FY 1999 financial
statements we reported that the Office of the Chief
Financial Officer (OCFO) needed to further improve
its systems and processes to increase the accuracy,
reliability, and usefulness of financial information used
to prepare the financial statements and to manage EPA's
environmental programs and administrative activities.
Because of Agency process problems, reliable FY 1999
financial statements were not prepared to enable an
unqualified audit opinion by March 1, the date required
by the Government Management Reform Act.
Although EPA improved its financial preparation
processes over prior years, the financial statements
provided for FY 1999 were incomplete, contained
significant errors, and were received late. The Agency
has recently made some process improvements. OIG's
assessment of the impact of the improvements on
EPA's financial reporting capabilities will not be
completed until late February 2001.
EPA has been recognized as a leader in developing
a goals-based budget aligned with its programmatic and
operational outputs and outcomes. EPA needs to follow
through and improve its cost accounting systems and
processes, so Agency managers have timely and reliable
information on the cost of carrying out EPA's programs
and administrative activities. The lack of cost
information adversely impacts nearly every facet of
EPA's operations, from budget formulation and
planning, to program execution and evaluation, to the
recovery of EPA's costs to provide services to others.
During the FY 1999 financial statement audit we
reported that EPA did not comply with the Managerial
Cost Accounting Standard requirements to (1)
determine the full cost of its activities, (2) accumulate
and report the cost of activities on a regular basis for
management information and other stakeholder
purposes, and (3) always use appropriate costing
methodologies to accumulate and assign cost to outputs.
We also plan to report this noncompliance for FY 2000.
OCFO disagrees that its cost accounting system is
noncompliant with the required standard, but agrees
that improvements should be made to the system over
time.
A critical component of a good cost accounting
system is the indirect cost rate. An Agency-wide indirect
cost policy is needed to help ensure that direct and
indirect costs are consistently identified for inclusion
in determining the full cost of conducting Agency
programs and activities, including cost per output. EPA's
indirect cost policy should identify what costs should
be included to recover full cost when determining user
fees for programs that receive fees for services provided
by EPA and when developing billing rates for work
EPA performs for other government agencies.
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Although progress has been made in developing
and implementing cost accounting procedures, more
needs to be done. Strong leadership from OCFO and a
commitment by all Agency offices is needed for EPA
to have systems and procedures in place to provide
useful, consistent, timely, and reliable information about
the cost of EPA's programs and outputs. Agency
managers need cost data integrated with program
information to make the best decisions about how to
use available resources to maximize environmental
results. For example, with information about the
transactional cost of various approaches to achieving
an environmental outcome, Agency managers could
make comparisons and select the most cost-effective
approach to achieving the desired environmental result.
The development of sound cost accounting
information will also promote greater accountability
within the Agency.
EMPLOYEE COMPETENCIES
The Agency recognizes one of its biggest challenges
over the next several years is the development and
implementation of a workforce planning strategy that
focuses its attention and resources on employee
development. Appropriate training for staff, including
supervisors and managers, is critical to accomplishing
EPA's environmental mission. The need for training is
highlighted in a number of OIG audit reports.
In an audit of the Superfund program, we reported
that the Headquarters program office and several EPA
regions did not clearly identify the quality assurance
training needs of program staff. Even in regions where
training needs were identified, the training was not
always provided. Also audits have repeatedly noted a
need to better train managers in their oversight and
administration of EPA's assistance agreements
programs. As a third example we found that EPA
employees in the hazardous waste program needed
more rigorous training to calculate proposed penalties
against violating facilities.
NEPPS is a major EPA-state program. We found
that a lack of training for EPA employees has hindered
the effective implementation of NEPPS. This training
is important because the NEPPS program is
fundamentally different from traditional EPA programs
in that it allows the states greater flexibility in achieving
environmental results. Therefore it is critical that EPA
and the states work closely together to agree on
expectations and measurements.
EPA also recognizes the need for broader
management and leadership skills. This need is clearly
expressed in the Workforce Assessment Project that reported
on the implications of future changes in EPA's mission
and role in environmental protection. The study
identified competency gaps that EPA must close to
ensure its workforce can meet existing and new
challenges. GAO also reported EPA's need to develop
and implement a workforce planning strategy. EPA
drafted a Human Capital Strategic Plan. EPA's
workforce planning efforts call for identifying the skills
needed in every program unit based on the Agency's
assessment of future program needs, identifying skill
gaps, and tying skill needs to future budget requests.
The Agency needs to make a commitment to deploy
the strategy by dedicating resources, developing
performance measures, and implementing necessary
systems.
QUALITY OF LABORATORY DATA
High quality scientific analysis is critical to the
accomplishment of EPA's mission. The quality of some
scientific analyses generated by EPA and contract
laboratories is questionable and should not be used to
support environmental decisions. Our reviews disclosed
weaknesses and fraud in laboratory management
practices resulting in data quality and integrity problems
that impact environmental and enforcement decisions.
EPA relies on the testing data provided by contract
laboratories to assess threats to public health and the
environment and to determine where and when
remedial action is needed. In September 2000 employees
at one EPA contract laboratory were indicted for
falsifying data involving sample analyses for several EPA
program areas including Superfund, RCRA, NPDES,
air toxics, and pesticides. At another contract laboratory
key employees were convicted for falsely certifying that
gas chromatograph/mass spectrometer analyses on
samples taken from hazardous waste sites nationwide
complied with all EPA contract requirements. EPA is
spending significant resources to determine the impact
of fraudulent analyses on environmental and
enforcement decisions.
OIG work at an EPA laboratory disclosed several
problems with the quality of analytical results and chain
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of custody procedures. An internal EPA review also
identified numerous weaknesses in laboratory
management practices. OIG recommended various
actions for improving management, accountability, and
oversight of the laboratory, including independent
technical reviews. The Agency has responded to these
recommendations and deployed technical review teams
around the country. The Agency also plans to take long-
term measures to ensure management controls are in
place to assure that environmental data generated by
both EPA and non-EPA laboratories meet the Agency's
quality needs and requirements.
EPA'S INFORMATION SECURITY PROGRAM
EPA relies on its information systems to collect,
process, store, and disseminate vast amounts of
information used to assist in making sound regulatory
and program decisions. We believe EPA needs a
centralized security program with strong oversight
processes to adequately address risks and ensure that
valuable IT resources and environmental data are secure.
With a decentralized wide area network that links all of
EPAs computer systems, even one regional location
with an inadequate security program can make the entire
Agency vulnerable. Similarly weaknesses surrounding
EPAs key environmental and financial systems could
jeopardize the integrity of vital data for decision making
and public use.
We found significant and pervasive problems
regarding the adequacy of security for EPAs financial
systems and various regional operations. We recently
reported that controls over entry to EPAs mainframe
computer at RTP needed strengthening. Also in
July 2000 GAO reported serious problems with EPAs
security program and spotlighted unacceptable security
risks by penetrating numerous systems. GAO also
reported that Agency security plans were inadequate
and added that existing practices were largely a
paperwork exercise that did little to mitigate risks to
Agency data and systems. In response to GAO's findings
EPA initiated a number of aggressive steps to enhance
and improve its information security program. For
example, the Agency temporarily shut down much of
EPA's IT communications with its partners and
stakeholders until critical controls could be established.
Despite many notable actions OEI is only
beginning to establish its security oversight role for
EPAs vast information system network. Moreover OEI
is just starting to take needed steps to enhance and
institutionalize an expanded information security
program. In addition, although EPA has installed
firewalls, no final network security policies exist
regarding Agency Internet networking controls or dial-
up access. EPA recently developed an Agency
Information Security Action Plan which uses a phased
approach to address GAO and prior OIG report
recommendations. EPA expects it will take 2 years to
implement the expanded Agency security program and
to address the related action plan recommendations.
In the interim, we believe the Agency should
continue to concentrate resources on this significant
weakness, ensuring that all aspects of an Agency-wide
information security program are addressed. This
includes not only adequate security plans, but also the
process used to develop those plans and the hardware
tools and policies that EPA must implement to enforce
security throughout the Agency. For example
management needs formally to approve and implement
final network security policies using appropriate
firewall(s) technology. Moreover we recommend that
EPA thoroughly verify the effectiveness of
implemented controls before concluding work in this
crucial area.
EPA'S USE OF ASSISTANCE AGREEMENTS TO
ACCOMPLISH ITS MISSION
Assistance agreements are the primary vehicles
through which EPA delivers environmental and human
health protection to the public. Therefore it is important
that the Agency and the public receive what the Agency
has paid for. For many years funding of assistance
agreements has constituted approximately one-half of
the Agency's budget.
Agency managers have been working to improve
their management of assistance agreements. However
our audit work continues to identify problems in the
delivery of environmental protection activities through
the award of assistance agreements. For example we
reported in September 2001 that EPA Region 8 was
not consistently awarding and monitoring tribal grants.
Agency officials placed a higher priority on external
relationships, generally with the tribes, and did not pay
sufficient attention to grant management and internal
organizational relationships. Some grants included
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unallowable activities or EPA received inadequate or
untimely work plans and progress reports from grantees.
Recent OIG audits of EPA's assistance recipients
disclosed that some recipients did not have adequate
financial and internal controls to ensure federal funds
were managed properly. As a result EPA had limited
assurance that assistance agreement funds were used
in accordance with workplans and met negotiated
environmental targets. For example an EPA Region 5
grantee could not adequately account for almost
$169,000 of the $300,000 in EPA funds. As another
example a Region 2 grantee had submitted multiple
financial status reports with different ending balances,
had excess federal funds on hand, and could not support
that it had met the minimum cost-sharing requirement.
Misuse of assistance agreement funds also resulted in
an agreement with one city to settle a civil lawsuit
charging that the city's air pollution control program
improperly spent a total of $429,158 in assistance
agreement funds awarded by EPA.
The Agency has completed a number of actions to
improve its management controls over assistance
agreements. OIG will continue to conduct audits to
determine if systemic problems exist in EPA's
management of assistance agreements and to work with
the Agency to identify solutions.
BACKLOG OF NATIONAL POLLUTANT
DISCHARGE ELIMINATION SYSTEM
PERMITS
EPA has recognized that the backlog in issuing
NPDES permits is a nationwide problem. In 1998 OIG
conducted audits in three states to assess the extent of
permit backlogs. EPA had not issued or renewed most
of the required permits for municipal and industrial
dischargers in Alaska and Idaho. Although Region 10
issued 33 permits in 2Vz years, there were 1,000
applications waiting to be processed of which 70
percent were more than 4 years old at the time. As a
result large numbers of dischargers were operating
without permits or had their permits administratively
extended without being subjected to more current and
stringent discharge requirements. Also we found Kansas
did not reissue expired wastewater facility permits in a
timely manner and did not submit expired permits to
Region 7 for review; As a result the permitees may have
been allowed to discharge pollutants at levels that could
adversely affect human health and aquatic life.
EPA reports that the backlog in EPA-issued major
permits has tripled over the last 10 years and the backlog
of state-issued permits has doubled over this time. EPA's
Office of Water developed a corrective action plan to
address this weakness. Originally EPA expected to
complete corrective action by 2004; however, the
completion date has since been delayed to 2005. The
Agency's "Clean and Safe Water" goal for FY 2001
addresses the NPDES permit backlog.
While reducing the NPDES backlog is important,
EPA needs to realize that its current permitting system
will probably never allow for complete backlog
elimination. Accordingly EPA needs to identify those
areas where permitting will result in the greatest
environmental payback and permit those areas first. We
will continue to monitor the progress EPA makes in
addressing this important issue.
EPA'S WORKING RELATIONSHIP WITH
THE STATES
During the last two decades environmental and
human health protection programs have grown in size,
scope, and complexity. Many environmental problems
transcend media boundaries and solutions may require
innovative, cross-media approaches. EPA and states
came to recognize that existing arrangements for
implementing environmental programs and addressing
environmental problems were not as efficient and
effective as they could be. NEPPS established a new
framework to reinvent the EPA-state working
relationship so that the focus is on trying to work as
partners to accomplish very complex environmental
issues with scarce resources. EPA began implementing
PPGs in 1996 that allowed states and tribes to combine
multiple EPA grants into one grant. PPGs are important
tools for implementing NEPPS and share many of the
same objectives as NEPPS.
A series of OIG audits on regional and state
NEPPS and PPG program implementation found that
NEPPS was not well-integrated into EPA because of
the lack of (1) leadership to provide clear direction and
set expectations, (2) training and guidance, (3) trust in
NEPPS due to fear of change and losing control, and
(4) goals and related performance measures to monitor
and measure progress on achieving better
environmental results. EPA can help increase NEPPS/
PPG success by providing training and establishing a
more collaborative, action-oriented process for
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establishing goals, defining EPA and state roles and
responsibilities, agreeing on measures to assess
environmental progress, and obtaining commitments
for results to be achieved.
EPA had not clearly established a central authority
or responsibility for NEPPS, and senior EPA
management had not clearly communicated its
expectations about NEPPS andPPGs. EPA staff often
did not know where to turn for specific information
on direction, expectations, and clarification. NEPPS was
perceived by EPA staff as a policy that was implemented
only if a state and EPA wanted it and that, even then,
allowed the state to choose the NEPPS components in
which it wanted to participate.
The lack of clear goals, guidance, and training has
resulted in many EPA managers and staff having little
direction and lacking the skills needed to use NEPPS
effectively to carry out their environmental programs.
NEPPS created a great deal of concern among some
EPA managers and staff who believed NEPPS could
eliminate program and financial accountability. EPA and
states have not yet agreed on how to provide flexibility
to states along with accountability. EPA and state
managers struggled with how to provide states flexibility
to address their highest environmental priorities while
continuing to implement and report on core program
requirements such as permitting, inspections, and
enforcement.
Many EPA and state staff still embodied their
media-specific, activity-based cultures and lacked trust
in the new system. They viewed their activity-based
authorities under the media-specific statutes as having
priority and had difficulty reconciling these media-
specific activities with NEPPS' cross-media, priority-
setting process that focuses on environmental results
rather than on the number of permits and inspections.
Although NEPPS and PPGs have their own overall
goals, EPA has not defined its performance measures
and related milestones to measure how the Agency and
its partners are progress ing toward accomplishing those
goals. EPA has not defined specific measurable goals
for evaluating whether it is making progress toward
obtaining environmental results and whether NEPPS
and PPGs are contributing to those results.
The Agency agreed with many of the
recommendations presented in OIG audits and is in
the process of building the institutional capacity and
infrastructure to accomplish NEPPS work. EPA
prepared a corrective action plan with milestone dates
that takes a comprehensive approach to addressing
NEPPS implementation. We believe that the increased
emphasis the Agency has recently placed on this very
important area will result in more effective working
relationships and thus be more effective and efficient.
Because NEPPS is an integral part of all EPA programs,
the Agency needs to continue this recent attention. We
will continue to monitor Agency progress closely.
KEY MANAGEMENT CHALLENGES AND SIGNIFICANT AGENCY PROGRESS
TOWARDS THEIR RESOLUTION
(Prepared by EPA's Office of Inspector General)
SUPERFUND 5-YEAR REVIEWS
The Superfund statute requires that remedial
actions, where hazardous substances, pollutants, or
contaminants remain onsite be reviewed every 5 years
to assure that human health and the environment
continue to be protected. Some 5-year reviews found
that additional corrective actions were needed. This
issue is of growing importance because containment
remedies have been used more frequently since 1992.
In March 1995 we reported that a substantial
number of 5-year reviews were not performed due
largely to the low priority given them by Agency
management. We recommended several options for
improving the program and reducing the backlog. At
that time Agency management agreed to implement
the recommendations or take other actions to address
the issues. However during our 1999 followup audit we
found that (1) the backlog of 5-year reviews was nearly
three times larger than at the time of the previous audit,
(2) approximately 30 percent of the reports did not
contain a definitive statement on protectiveness or
information in the report and seemed to conflict with
the statement made, and (3) results of the reviews were
not being reported to the Congress or the public.
I
I
FY 2000 Management Accomplishments and Challenges
111-19
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We estimated that EPA might need to devote
approximately $1 million above the expected spending
level each year for the next 3 years to eliminate the
backlog. At the conclusion of our followup audit the
Agency had not yet committed the funds necessary for
accomplishing this work. The increasing use of
containment remedies, a growing backlog of 5-year
reviews, the repeat nature of many of our findings,
and a need to devote additional resources warrant EPAs
formal recognition of the importance of the 5-year
program and the establishment of necessary corrective
actions as priority action items.
EPA identified this as an FY 1999 management
control weakness with an FY 2002 correction date. EPA
reports completing 51 percent of the backlog of 5-year
reviews during FY 2000. Since it had projected a 3-year
schedule to eliminate the backlog, the Agency is
progressing faster than expected. We will continue to
monitor the Agency's progress in reducing the backlog.
significant progress were not made in the near future,
might withdraw their support, affecting EPAs ability
to accomplish its mission.
The Agency has made progress in the last year.
Through a major effort the Agency issued LaMPs for
Lakes Michigan, Erie, and Superior and an action plan
for Lake Huron in April 2000. The Lake Ontario LaMP
was completed in 1998. These plans now serve as guides
for future activities on the Great Lakes. In addition EPA
programs are committed to LaMP implementation
priorities and a reinstituted Great Lakes U.S. Policy
Committee to discuss RAP issues leading to increased
attention to RAP issues and initiation of RAP delisting
criteria. The Great Lakes National Program Office and
EPA Region 5 staff and management also have given
priority to resolving the recommendations in our 1999
report. They are keeping us informed about their
progress and indicate that most of the action items have
been resolved.
S3
W
"8
3
THE GREAT LAKES PROGRAM
The Great Lakes Water Quality Agreement between
the United States and Canada was signed over 25 years
ago. The purpose of the Agreement is to restore and
maintain the chemical, physical, and biological integrity
of the Great Lakes basin ecosystem. The basin area is
home to more than one-tenth of the U.S. population
and has some of the world's largest concentrations of
industry. Environmental challenges include
contaminated sediments, the effects on exotic species,
and loss of habitat.
We previously reported that EPA needed to
improve and complete its LaMPs and RAPs, which were
established as systematic and comprehensive ecosystem
approaches to address the Great Lakes. These plans
were taking considerably longer than expected to
complete. For example while a draft LaMP for Lake
Michigan was first published in 1992, it had never been
finalized. The statutory deadline for incorporating RAPs
into state water quality plans was January 1, 1993. At
the time of our review no U.S. RAPs had been fully
implemented. Without these plans there was no
assurance that EPA was doing the right, most cost-
effective, and highest priority activities needed to protect
the Great Lakes. We reported that EPA and its partners
had been slow in restoring and maintaining the integrity
of the Great Lakes basin. We found that states were
frustrated over the slow progress made and, if
111-20
EPA's FY 2000 Annual Report
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FY2000
ANNUAL REPORT
FY 2000 ANNUAL
FINANCIAL
STATEMENTS
SECTION IV
-------
TABLE OF CONTENTS
Message from the Deputy Chief Financial Officer IV-3
Chief Financial Officer's Analysis IV-5
Principal Financial Statements IV-11
OIG's Report on EPA's FY 2000 Financial Statements IV-61
EPA's FY 2000 Annual Financial Statements IV-1
-------
MESSAGE FROM THE
DEPUTY CHIEF FINANCIAL OFFICER
I am pleased to present the fiscal year (FY) 2000 audited financial statements of the Environmental
Protection Agency (EPA). This year the statements are presented for the first time as an integral part of our
Annual Report. As such, they offer Congress and the public a clear and comprehensive picture of the
Agency's progress over the past year under a single comprehensive document. This year's financial
statements provide strong evidence of EPA's commitment to effective management of its resources and
finances. In addition, they portray progress toward the Office of the Chief Financial Officer's (OCFO) goal
of providing better and more timely cost information and reporting, thereby allowing EPA's program
offices to more efficiently accomplish their environmental and public health protection mission.
EPA has achieved an unqualified opinion on its financial statements this year, an important
accomplishment and testimony to the diligent work of the finance community in addressing several financial
weaknesses noted in our prior year statements. An unqualified opinion conveys an important message
about sound financial management within an organization. It reflects that EPA has improved its methods,
processes and systems for recording and reporting financial information to the extent that it fairly presents
and characterizes the Agency's financial position, a significant issue for Congress, the public and our
stakeholders.
During FY 2000, the OCFO made significant progress on a number of important management
initiatives. In the area of results-based management, we issued EPA's revised Strategic Plan for FY 2000-
2005, which lays out the Agency's long-term goals, guides us in establishing annual goals, allows us to
measure progress in achieving our goals, and provides a basis from which Agency managers can focus
resources on the highest priority environmental issues. We also issued our first Annual Performance
Report, providing Congress and the public with a comprehensive, plain-English account of Agency
performance. In the cost accounting arena, we established a new indirect cost accounting methodology
which substantially boosts the amount of Superfund cleanup costs we can expect to recover from
Responsible Parties. In the budget area, we streamlined our process for managing Trust Fund carryover
funds: by making these resources immediately available to program managers for important environmental
projects, we not only reduced administrative burden, but also strengthened accountability.
The OCFO also made great strides in improving the security of its financial management systems as
a result of numerous independent reviews. We established an OCFO Information Security Council to
provide direction and oversight to these efforts and began vulnerability and risk assessments of our critical
systems. The rapidly changing and complex environment associated with systems security will require
constant and long term vigilance to protect against intruders.
Over the past year, we also made substantial progress in planning an orderly replacement of our
legacy systems with more modern and integrated financial systems. We completed the evaluation for
replacing our aging payroll system and created a centralized staff to oversee the planning and integration of
our critical systems. In addition, the OCFO moved to modernize the Agency's financial reporting tools by
adopting a new, user-friendly Financial Data Warehouse. These systems efforts, along with our on-going
automation initiatives in travel, grants and vendor payments, go a long way toward ensuring sound
stewardship, optimal leveraging of resources, and the integrity of our critical data. The ultimate benefit for
our program managers and stakeholders will be better, faster, and easier to use financial data, cost
information and reporting tools to support day-to-day decision-making needs as well as long range planning
efforts.
EPA's FY 2000 Annual Financial Statements IV-3
-------
Many challenges lie ahead as we enter a new era of public stewardship and accountability. For
example, our systems modernization efforts have just begun. While we anticipate our payroll replacement
efforts will move along substantially this year, the groundwork for replacing our core financial management
system has only recently gotten underway. We also look forward to improving our cost accounting
processes by capturing and reporting additional financial information to better serve the needs of EPA's
program managers.
I would like to express my thanks to all the people who helped EPA obtain its unqualified opinion
on the financial statements. Such an achievement requires a tremendous effort from individuals at all levels
of the organization. The preparation and presentation of fairly presented and timely financial statements is
dependent on the day-to-day effort of countless individuals. Whether they carefully record and monitor
transactions, oversee budget execution, operate our financial systems, develop accounting policies, provide
financial analysis or audit our statements, we owe a debt of gratitude to them all. The preparation of EPA's
financial statements has been a collaborative effort among many organizations — the OCFO, the Office of
the Inspector General, and EPA's many program, regional and administrative offices. I want to
acknowledge the hard work and commitment of all the employees throughout the Agency who contributed
to this effort.
I believe we have established a stable, yet dynamic, environment for implementing sound financial
management within EPA. We intend to enhance and build upon this solid foundation.
As we work toward forging stronger partnerships with our stakeholders and developing innovative and
market-based approaches to improving our protection of the environment and the public health of all
Americans, accurate, timely and useful financial information becomes critical to our success. We are
committed to maintaining high standards as we face the challenges associated with modernizing and
continually improving our financial and management systems and processes.
Michael W.S. Ryan
Deputy Chief Financial Officer
IV-4 EPA's FY 2000 Annual Report
-------
EPA's FY 2000 Annual Financial Statements IV-5
-------
Chief Financial Officer's Analysis of Financial Statement Audit
and Summary of FY 2000 Accomplishments
Summary of Auditor's Report and Opinions
The Agency prepared the following FY 2000 Financial Statements: Statement of Financial Position (Balance
Sheet), Statement of Changes in Net Position, Statement of Net Cost, Statement of Budgetary Resources, Statement
of Financing, and Statement of Custodial Activity. Each of these statements was broken out between the Superfund
appropriation and all other funds. In addition, we prepared a Statement of Net Cost by Goal for each of the
Agency's ten Strategic Goals.
The Office of Inspector General (OIG) stated "In our opinion, the consolidating financial statements
present fairly the consolidated and individual assets, liabilities, net position, net cost, net cost by goal, changes in net
position, budgetary resources, reconciliation of net cost to budgetary obligations, and custodial activity of the U.S.
Environmental Protection Agency and its subsidiary funds, the Superfund Trust Fund and All Other Appropriated
Funds, as of and for the year ended September 30, 2000, in accordance with generally accepted accounting
principles." No material weaknesses were reported.
Report on Internal Controls
Although the OIG did not identify any material weaknesses, the audit report listed seven "reportable
conditions," which are described below, along with a short statement on the Agency's position with respect to each of
those items.
• Process for Preparing Financial Statements - The OIG recommended that the Office of the Chief Financial
Officer (OCFO) continue its aggressive efforts to improve the preparation and presentation of the Agency's
financial statements and to advance the time frame for completion of the statements. OCFO agrees and will
continue to work closely with the OIG in making those improvements.
• Accounting for Capitalized Property - The OIG made eight recommendations for improving accountability
over and accounting for Agency property assets. OCFO and the Office of Administration and Resources
Management (OARM) have agreed with most of the OIG's recommendations and will be improving
guidance, stressing quality control and performing additional followup with the offices directly responsible
for property.
• EPA's Process for Reviewing Unliquidated Obligations — The OIG made no new recommendations and
acknowledged the actions we have taken to date to monitor unliquidated obligations and to ensure they are
deobligated timely when appropriate.
• EPA's Interagency Agreement Invoice Approval Process — The OIG made no new recommendations and
recognized Agency progress in implementing corrective actions from earlier audit reports.
• Documentation and Approval of Journal Vouchers — The OIG recommended that appropriate OCFO staff
review Agency policy and procedures on journal vouchers and ensure that vouchers are properly documented
prior to approval. OCFO agrees with that action.
• Timely Repayment of Asbestos Loan Debt to Treasury — The OIG recommended that OCFO develop a
schedule for repaying asbestos loan debt to Treasury on an annual basis and to reduce asbestos loan
borrowing authority to zero. OCFO agrees to develop the recommended schedule and has already reduced
borrowing authority to zero.
IV-6 EPA's FY 2000 Annual Report
-------
• Automated Application Processing Controls for the Integrated Financial Management System (IFMS) — The
OIG made no new recommendations. The audit report summarized the history of the discussions between
the OIG and OCFO on this topic and noted that in FY 2001 the OCFO will be taking steps to develop a
project team to replace IFMS. OCFO believes the IFMS replacement project will address the OIG's
concerns about the adequacy of automated application controls.
Compliance with Laws and Regulations
Compliance with the Federal Financial Management Improvement Act (FFMIA)
The OIG identified only one instance where they believed the OCFO was in substantial noncompliance with
the FFMIA: the OIG believes that EPA does not comply with Statement of Federal Financial Accounting Standards
Number 4, also known as the Managerial Cost Accounting Standards. Specifically, OIG's position is that EPA does
not adequately: (1) determine the full cost of its activities; (2) accumulate and report the cost of activities on a regular
basis for management information and other stakeholder purposes; and (3) always use appropriate costing
methodologies to accumulate and assign cost to outputs.
While OCFO agrees that improvements in cost accounting can be made, OCFO believes that the Agency
does comply with this Standard. A detailed discussion of this issue is provided in Section III of this Report under
"Management Challenges." We will continue to improve Agency cost accounting and will work with the OIG on
these improvements.
Other Noncompliance Issues
The OIG identified two other areas where they believed the OCFO had noncompliances that were not
substantial and therefore not in violation of FFMIA.
• The OIG noted that EPA was unable to reconcile intra-governmental transactions. However, the OIG
commended EPA's proactive approach to reconciling and acknowledged that the resolution of this issue
requires Federal level action since EPA does not have control over the other federal agencies with which it
must reconcile.
• The OIG stated that EPA's financial system security plans continued to be noncompliant, although they
recognized that progress had been made. They also reported that they had determined that the Agency
Remediation Plan, submitted to the Office of Management and Budget (OMB) on November 13, 2000,
sufficiently addressed their prior concerns.
The OIG also noted that EPA is not complying with appropriation law when making disbursements for
grants funded with more than one appropriation. However, this issue does not affect the audit opinion on the
financial statements.
Progress in Correcting Previously Identified Problems
OCFO management undertook a concerted effort to resolve a backlog of audit issues raised in previous
years. Consequently, issues such as financial statement preparation (discussed in the next section) and accounts
receivable have been resolved or downgraded as major issues. The OIG has accepted all of the OCFO's proposed
corrective actions raised in the FY 1998 and 1999 financial statement audits (except for cost accounting as noted
above). The Agency has not encountered any significant impediments to correcting problems. One specific
challenge for 2001 is the need to revise the methodology for determining accrued grant expenses.
EPA's FY 2000 Annual Financial Statements IV-7
-------
OCFO Accomplishments
Planning, Analysis and Accountability
Revised Strategic Plan. Working with the rest of the Agency, OCFO developed and issued EPA's revised
Strategic Plan for FY 2000-2005. The Strategic Plan lays out the Agency's ten long-term goals and guides us in
establishing annual goals, allows us to measure how far we have come towards achieving our goals, and provides a
basis from which Agency managers can focus resources on the highest priority environmental issues and ensure that
we use taxpayer dollars effectively to achieve environmental results.
Annual Performance Report. In FY 2000, EPA completed its first full planning and accountability cycle
under the Government Performance and Results Act (GPRA) with the March 2000 submission of its first Annual
Performance Report. The Report presents to Congress and the public a comprehensive, plain-English account of
EPA's FY 1999 performance.
Results-Based Management. The Deputy Administrator met with senior Agency managers in a series of
meetings to discuss FY 1999 results and lessons learned, mid-year performance toward FY 2000 annual performance
goals, progress toward long-term strategic goals, and work under way to improve performance measurement. Senior
managers also discussed the broader lessons learned from the Agency's experience with GPRA implementation to
date and improvements to be made for the future. In addition, to promote development of more outcome-oriented
performance goals and measures, OCFO provided training workshops, technical assistance, and feedback on GPRA
products to Agency managers and staff. The FY 2001 Annual Performance Plan had 5% more outcome-based goals
than the FY 1999 Annual Performance Plan.
Improving Agency Management. EPA has made substantial progress toward resolving programmatic and
administrative issues that have the potential to affect the Agency's ability to achieve its mission. Since 1990, EPA has
corrected 27 integrity weaknesses and numerous major management challenges. In addition, EPA made significant
progress in reducing the number of audits without final action as well as strengthening its audit management practices
Agency-wide. In FY 2000, EPA reduced the number of audits without final action after 1 year by 35 percent and was
responsible for addressing OIG recommendations and tracking follow-up activities on 503 audits.
Audited Financial Statements
EPA made substantial progress this year in preparing quality financial statements in a timely manner. The
improvements made this year are phase one of a two-phased plan for improving the Agency's financial statement
process. Our efforts began with completing a data integrity evaluation of our financial system by: (1) analyzing each
accounting transaction to ensure all entries are proper; (2) conducting general ledger account analyses to identify
accounts with incorrect balances; and (3) analyzing account relationships between proprietary and budgetary accounts.
The Agency also implemented a new policy document and supplemental procedural guidance on preparing
and submitting annual audited financial statements in coordination with the OIG. This guidance established a formal
process to monitor timelines for preparing annual financial statements as well as addressing audit questions and
adjustments. In addition, guidance was implemented to establish more timely, accurate, and reliable reporting on
EPA's trading partners.
Finally, the Agency successfully implemented an automated FACTS II process in its financial system and
successfully submitted its budgetary reports electronically to Treasury via FACTS II.
We believe that the above and future efforts will continue to enhance the Agency's ability to prepare and
publish complete, concise, understandable and meaningful information about the financial and operating performance
of the Agency.
IV-8 EPA's FY 2000 Annual Report
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Streamlining Business Processes and Meeting Customer Needs
EPA took a number of steps to streamline and automate the Agency's administrative systems to provide the
best services with reduced burden to our customers. For example, Agency grant recipients are beginning to benefit
directly from a new system that allows them to request their funds on-line, and EPA is automating the entire travel
reimbursement process, a significant reduction in administrative burden. EPA earned Governmentwide recognition
for its efforts, along with several other agencies, to implement an on-line system that allows employees to view and
update many payroll and benefits options such as health plan choices. The Agency also made substantial progress in
replacing its aging payroll system, and efforts are now under way to replace the Integrated Financial Management
System. Finally, EPA developed a financial data warehouse to improve Agency access to a range of financial and
program data in order to better manage programs.
Systems Integration and Security
Integration of Systems Implementation Project. The Deputy CFO created a new Systems Planning and
Integration Staff (SPIS) within the Office of the Comptroller's (OC) immediate office in response to several existing
and emerging challenges with systems initiatives. These initiatives include improving financial performance through
better financial management systems and providing the Agency with resource systems, policies, and support necessary
to carry out resource management responsibilities. SPIS will provide OCFO with a centralized focus for planning,
budgeting, integrating, and implementing OC financial systems.
The initial focus of SPIS is on replacing the Agency's payroll system, EPA's Personnel and Payroll System
(EPAYS), and its supporting systems, and on assessing the need to replace or modernize the Agency's core financial
management system, the Integrated Financial Management System (IFMS). In addition, SPIS will undertake a
number of smaller projects where targeted technology changes create opportunities for improved services and
streamlined processes.
Financial System Security. EPA's Deputy CFO established the OCFO Information Security Council to:
(1) provide direction and oversight to financial and mixed system security efforts; (2) raise significant financial
information security issues; (3) ensure coordination with other Agency offices; and (4) support proper security
practices. In addition, OCFO conducted, in partnership with the Office of Environmental Information and the
Office of Administration and Resources Management, Technical Vulnerability Assessments (TVAs) on the Agency's
most critical financial systems.
Working Capital Fund
EPA's Office of Administration provides postage services and the Office of Technology, Operations, and
Planning (OTOP) provides Agency wide services for telecommunications, mainframe computer services, and other
Information Technology support. Since FY 1997, these activities have been financed by charges to Agency customers
through a Working Capital Fund (WCF). The WCF undertook a number of initiatives to strengthen the overall
operation and reporting of the Fund in our on-going efforts to provide quality services at competitive prices.
A WCF Review Team was assembled on behalf of the WCF Board of Directors to review and analyze the
business, financial, accounting, and budget practices of the WCF Activities, as well as the cost and rates associated
with the services provided. As a result, the Service Providers have been able to better align their costs with the
services they support, resulting in equitable rates for the services provided.
When the WCF was established and began operations in 1997, one of the primary business principles was to
recover full operating costs through the Fund's billing rates. However, in the past, EPA has not recovered certain
required costs such as rent, utilities, etc. During FY 2000, OCFO established a policy requiring the recovery of full
costs and the Agency is now recovering full cost in the Fund.
EPA's FY 2000 Annual Financial Statements IV-9
-------
A team was commissioned to reconcile the OTOP's property records and to establish up-dated policies and
procedures to accurately account for WCF property. As a result of this review, the WCF can now better identify
capital equipment and property and compute precise depreciation costs for inclusion in the service rates.
Deb t Managemen t
During FY 2000, the Agency pursued various initiatives to improve its management and collection of
outstanding accounts receivable in the Superfund program where the vast majority of the Agency's outstanding
receivables reside.
Together with the Office of Enforcement and Compliance Assurance (OECA) and the OIG, accounts
receivable management reviews were conducted in three of EPA's regional offices, with three more planned for
FY2001. The reviews helped identify issues whose resolution will improve accounts receivable management. One
such area was the need for additional policy and guidance for overdue debts. In response, OCFO and OECA issued
guidance addressing the referral of overdue Superfund accounts receivable to the Department of Justice (DOJ). The
EPA offices are currently working with DOJ to finalize policies for final disposition of Superfund debts.
Workforce Assessment
In the coming years, the most critical challenge facing OCFO management is to ensure that our most
important asset, our staff, is well-placed to meet the challenges of the future. Changing technology and other factors
are presaging a shift in the nature of work performed by OCFO staff, a shift from financial transaction-based
processing to information management and analysis. In conjunction with the Agency wide workforce planning and
assessment efforts described previously in this Annual Report, OCFO has completed the first phase of an assessment
that formally sets out strategies for training, recruitment, and deployment of OCFO's human resources.
IV-10 EPA's FY 2000 Annual Report
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EPA's FY 2000 Annual Financial Statements IV-11
-------
CONTENTS
Financial Statements
Consolidating Balance Sheet
Consolidated Statement of Net Cost by Goal
Consolidating Statement of Net Cost
Consolidating Statement of Changes in Net Position
Combined Statement of Budgetary Resources
Combined Statement of Financing
Consolidated Statement of Custodial Activity
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies
Note 2. Fund Balances with Treasury
Note 3. Cash
Note 4. Investments
Note 5. Accounts Receivable
Note 6. Other Assets
Note 7. Loans Receivable, Net - Non-Federal
Note 8. Inventory and Property Received in Settlement
Note 9. General Plant, Property and Equipment
Note 10. Debt
Note 11. Custodial Liability
Note 12. Other Liabilities
Note 13. Leases
Note 14. Pensions and Other Actuarial Benefits
Note 15. Cashout Advances and Deferrals, Superfund
Note 16. Unexpended Appropriations
Note 17. Amounts Held by Treasury
Note 18. Commitments and Contingencies
Note 19. Grant Accrual
Note 20. Environmental Cleanup Costs
Note 21. Superfund State Credits
Note 22. Superfund Preauthorized Mixed Funding Agreements
Note 23. Income and Expenses from Other Appropriations
Note 24. Custodial Non-Exchange Revenues
Note 25. Statement of Budgetary Resources
Note 26. Adjustments
Note 27. Unobligated Balances
Note 28. Obligated Balance, Net - End of Period
Note 29. Difference in Outlays between Statement of Budgetary Resources and SF-133
Note 30. Statement of Financing
Note 31. Beginning Unobligated Balances - All Other Statement of Budgetary Resources
Note 32. Change in Accounting for Trust Funds
Note 33. Costs Not Assigned to Goals
Note 34. Transfers-in and out, Statement of Changes in Net Position
EPA's FY 2000 Annual Financial Statements IV-13
-------
Notes to Financial Statements (continued)
Note 35. Imputed Financing
Note 36. Change in Accounting for Cashout Interest, Superfund
Supplemental Information Requested by OMB
Required Supplemental Information
Deferred Maintenance (Unaudited)
Intra-governmental Assets (Unaudited)
Intra-governmental Liabilities (Unaudited)
Supplemental Statement of Budgetary Resources (Unaudited)
Working Capital Fund Supplemental Balance Sheet (Unaudited)
Working Capital Fund Supplemental Statement of Net Cost (Unaudited)
Working Capital Fund Supplemental Statement of Changes in Net Position (Unaudited)
Working Capital Fund Supplemental Statement of Budgetary Resources (Unaudited)
Working Capital Fund Supplemental Statement of Financing (Unaudited)
Required Supplemental Stewardship Information
Annual Stewardship Information (Unaudited)
IV-14 EPA's FY 2000 Annual Report
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Environmental Protection Agency
Consolidating Balance Sheet
As of September 30, 2000
(Dollars in Thousands)
ASSETS
Intragovernmental:
Fund Balance with Treasury (Note 2)
Investments (Note 4)
Accounts Receivable, Net (Note 5)
Other (Note 6)
Total Intragovemmental
Accounts Receivable, Net (Note 5)
Loans Receivables, Net - Non Federal (Note 7)
Cash (Note 3)
Inventory and Property Received in Settlement, Net
(Note 8)
General Property, Plant and Equipment, Net (Note 9)
Other (Note 6)
Total Assets
LIABILITIES
Intragovemmental:
Accounts Payable
Debt (Note 10)
Accrued Liabilities
Custodial Liability (Note 11)
Other (Note 12)
Total Intragovemmental
Accounts Payable
Pensions and Other Actuarial Liabilities (Note 14)
Environmental Cleanup Costs (Note 20)
Accrued Liabilities
Cashout Advances and Deferrals, Superfund (Note 15)
Commitments and Contingencies (Note 18)
Other (Note 12)
Total Liabilities
NET POSITION
Unexpended Appropriations (Note 16)
Cumulative Results of Operations
Total Net Position
Total Liabilities and Net Position
Superfund
Trust Fund
$ 37,397 1
3,960,313
40,671
21,789
4,060,170
617,039
0
0
5,086
13,581
750
$ 4,696,626 5
$ 75,467 1
0
51,748
0
8,848
136,063
46,066
6,637
0
145,358
372,586
5,000
63,024
774,734
0
3,921,892
3,921,892
All Combined Intra-agency Consolidated
Others Totals Eliminations Totals
f 11,059,256 }
1,593,357
34,371
7,452
12,694,436
87,895
89,128
48
347
473,028
1,712
f 13,346,594 ?
f 1,506 }
37,922
50,580
102,469
28,849
221,326
84,956
27,036
15,499
631,909
0
2,950
200,510
1,184,186
10,119,838
2,042,570
12,162,408
f 11,096,653 $
5,553,670
75,042
29,241
16,754,606
704,934
89,128
48
5,433
486,609
2,462
f 18,043,220 $
f 76,973 $
37,922
102,328
102,469
37,697
357,389
131,022
33,673
15,499
777,267
372,586
7,950
263,534
1,958,920
10,119,838
5,964,462
16,084,300
0 $
0
(4,191)
(6,51(fi
(10,701)
0
0
0
0
0
0
(10,701) $
0 $
0
(4,191)
0
(6,510)
(10,701)
0
0
0
0
0
0
0
(10,701)
0
0
0
11,096,653
5,553,670
70,851
22,731
16,743,905
704,934
89,128
48
5,433
486,609
2,462
18,032,519
76,973
37,922
98,137
102,469
31,187
346,688
131,022
33,673
15,499
777,267
372,586
7,950
263,534
1,948,219
10,119,838
5,964,462
16,084,300
$ 4.696.626 $ 13.346.594 $ 18.043.220 $ (10.701) $ 18.032.519
The accompanying notes are an integral part of these statements.
EPA's FY 2000 Annual Financial Statements IV-15
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Environmental Protection Agency
Consolidated Statement of Net Cost by Goal
For the Year Ended September 30, 2000
(Dollars in Thousands)
COSTS:
Intragovernmental
With the Public
Total Costs
Less:
Earned Revenues
Total Revenue
Management Cost Allocation 55,155
Clean and
Clean Safe
Air Water
$ 74,193 :
462,922
537,115
219
219
I 153,480 $
3,209,971
3,363,451
5,794
5,794
Better
Safe Prevent Waste
Food Pollution Management
23,286 $
80,003
103,289
21,247
21,247
37,685 |
231,151
268,836
4,180
4,180
! 414,860 $
1,478,910
1,893,770
336,253
336,253
Global
Risks
34,480
179,880
214,360
6,939
6,939
NET COST OF
OPERATIONS
75,785
592.051
3.433.442
22,444
35,815
139,392
16,236
104.486 $ 300.471 $ 1.696.909 $_
223.657
Detailed descriptions of the above Goals are provided in EPA's FY 2000 Annual Report, Section II — GPRA
Performance Results by Strategic Goal.
The accompanying notes are an integral part of these statements.
IV-16 EPA's FY 2000 Annual Report
-------
Environmental Protection Agency
Consolidated Statement of Net Cost by Goal
For the Year Ended September 30, 2000
(Dollars in Thousands)
COSTS:
Intragovernmental
With the Public
Total Costs
Less:
Earned Revenues
Total Revenue
Management Cost Allocation 23,447
Right Not
to Sound Credible Effective Assigned Consolidated
Know Science Deterrent Management to Goals* Totals
$ 27,229 $
114,439
141,668
338
338
49,203 ?
286,882
336,085
1,490
1,490
f 69,713 }
317,423
387,136
495
495
f 139,354 $
339,874
479,228
1,694
1,694
120,149 $
25,346
145,495
3,335
3,335
1,143,632
6,726,801
7,870,433
381,984
381,984
31,613
77,647 (477,534)
NET COST OF
OPERATIONS
164.777 $ 366.208 $ 464.288
142.160
7.488.449
* See Note 33.
Detailed descriptions of the above Goals are provided in EPA's FY 2000 Annual Report, Section II — GPRA
Performance Results by Strategic Goal.
The accompanying notes are an integral part of these statements.
EPA's FY 2000 Annual Financial Statements IV-17
-------
Environmental Protection Agency
Consolidating Statement of Net Cost
For the Year Ended September 30, 2000
(Dollars in Thousands)
COSTS:
Intragovernmental
With the Public
Expenses from Other Appropriations (Note 23)
Total Costs
Superfund All Combined Intra-agency Consolidated
Trust Fund Others Totals Eliminations Totals
373,311 $ 787,415 $ 1,160,726 $ (17,094) $ 1,143,632
1,259,464 5,467,337 6,726,801 0 6,726,801
31,270 (31,270) 000
1,664,045 6,223,482 7,887,527 (17,094) 7,870,433
Less:
Earned Revenues
Total Revenue
307,200
307,200
91,878
91,878
399,078 (17,094)
399,078 (17,094)
381,984
381,984
NET COST OF OPERATIONS
1,356,845 $ 6,131,604 $ 7,488,449
0 $ 7,488,449
The accompanying notes are an integral part of these statements.
IV-18 EPA's FY 2000 Annual Report
-------
Environmental Protection Agency
Consolidating Statement of Changes in Net Position
For the Year Ended September 30, 2000
(Dollars in Thousands)
Superfund All Combined Intra-agency Consolidated
Trust Fund Others Totals Eliminations Totals
Net Cost of Operations !j
Financing Sources (Other Than Exchange Revenues):
Appropriations Used
Taxes and Non-Exchange Interest (Note 17)
Other Non-Exchange Revenue
Imputed Financing (Note 35)
Trust Fund Appropriations Received (Note 17)
Income from Other Appropriations (Note 23)
Transfers-In (Note 34)
Transfers-Out (Note 34)
Net Results of Operations before Trust Fund and
Cashout Interest Accounting Changes
Cumulative Effect of Trust Fund Accounting Change
on Prior Years' Net Results of Operations (Note 32)
Cumulative Effect of Accounting Change for Cashout
Interest on Prior Years' Net Results of Operations
(Note 36)
Net Results of Operations
Increases/(Decreases) in Unexpended Appropriations
Change in Net Position
Net Position - Beginning of Period
Net Position - End of Period !j
f 1,356,845 1
0
240,808
1,192
32,063
700,000
31,270
9,707
(122,935)
(464,740)
2,656,831
85,382
2,277,473
(2,656,831)
(379,358)
4,301,250
f 3,921,892 1
', 6,131,604 5
6,632,631
260,272
12,958
168,659
(700,000)
(31,270)
63,730
(990)
274,386
91,596
0
365,982
42,874
408,856
11,753,552
i 12,162,408 5
f 7,488,449 $
6,632,631
501,080
14,150
200,722
0
0
73,437
(123,925)
(190,354)
2,748,427
85,382
2,643,455
(2,613,957)
29,498
16,054,802
f 16,084,300 $
0 $
0
0
0
0
0
0
(48,725)
48,725
0
0
0
0
0
0
0
o $
7,488,449
6,632,631
501,080
14,150
200,722
0
0
24,712
(75,200)
(190,354)
2,748,427
85,382
2,643,455
(2,613,957)
29,498
16,054,802
16,084,300
The accompanying notes are an integral part of these statements.
EPA's FY 2000 Annual Financial Statements IV-19
-------
Environmental Protection Agency
Combined Statement of Budgetary Resources
For the Year Ended September 30, 2000
(Dollars in Thousands)
Budgetary Resources
Budget Authority
Unobligated Balances, Beginning of Period (Note 31)
Net Transfers, Prior Period Balances
Spending Authority from Offsetting Collections
Adjustments (Note 26)
Total Budgetary Resources
Status of Budgetary Resources
Obligations Incurred
Unobligated Balances Available - Apportioned (Note 27)
Unobligated Balances Not Available (Note 27)
Total, Status of Budgetary Resources
Outlays
Obligations Incurred
Less: Spending Authority from Offsetting Collections and Adjustments
Subtotal
Obligated Balance, Net - Beginning of Period
Less: Obligated Balance, Net - End of Period (Note 28)
Total Outlays
Superfund
Trust Fund
All
Others
Combined
Totals
1,346,470
482,872
0
123,161
199,372
6,920,006
1,674,675
(977)
311,272
27,847
8,266,476
2,157,547
(977)
434,433
227,219
2,151,875 $ 8,932,823 $ 11,084,698
1,701,337 $ 7,158,665 $ 8,860,002
449,538 1,644,998 2,094,536
1,000 129,160 130,160
2,151,875 $ 8,932,823 $ 11,084,698
1,701,337 $ 7,158,665 $ 8,860,002
(324,821) (420,189) (745,010)
1,376,516 6,738,476
8,114,992
2,433,861 9,153,233 11,587,094
(2,283,790) (9,289,444) (11,573,234)
1,526,587
6,602,265
8,128,852
The accompanying notes are an integral part of these statements.
IV-20 EPA's FY 2000 Annual Report
-------
Environmental Protection Agency
Combined Statement of Financing
For the Year Ended September 30, 2000
(Dollars in Thousands)
Superfund
Trust Fund
All Combined
Others Totals
Obligations and Nonbudgetary Resources
Obligations Incurred
Less: Spending Authority for Offsetting Collections and Adjustments
Earned Reimbursements
Collected
Receivable from Federal Sources
Change in Unfilled Customer Orders (Decreases)/Increases
Transfers from Trust Funds
Recoveries of Prior Year Obligations
Financing Imputed for Cost Subsidies (Note 35)
Income from Other Appropriations (Note 23)
Transfers-In/(Out) of Nonmonetary Assets
Exchange Revenue Not in the Entity's Budget
Total Obligations as Adjusted and Nonbudgetary Resources
Resources that Do Not Fund Net Cost of Operations
Change in Amount of Goods, Services, and Benefits Ordered but Not
Yet Provided - (Increases)/Decreases
Change in Unfilled Customer Orders, etc.
Costs Capitalized on the Balance Sheet - (Increases)/Decreases
General Plant, Property and Equipment
Purchases of Inventory
Adjustments to Costs Capitalized on the Balance Sheet
Collections that Decrease Credit Program Receivables or Increase
Credit Program Liabilities
Adjustment for Trust Fund Outlays that Do Not Affect Net Cost
Total Resources that Do Not Fund Net Costs of Operations
Components of Costs that Do Not Require or Generate Resources
Depreciation and Amortization
Bad Debt Related to Uncollectible Non-Credit Reform Receivables
Revaluation of Assets and Liabilities
Loss on Disposition of Assets
Other Expenses Not Requiring Budgetary Resources
Total Costs That Do Not Require Resources
Financing Sources Yet to be Provided (Note 30)
Net Costs of Operations
$ 1,701,337 $ 7,158,665 $ 8,860,002
(108,997)
13,324
(17,846)
(9,642)
(201,660)
32,063
31,270
39
(215,449)
1,224,439
143,536
17,846
(3,827)
0
0
0
(38,090)
119,465
3,654
3,075
0
(813)
45
5,961
6,980
1,356,845 $
(230,981)
20,720
(54,653)
(46,358)
(111,767)
168,659
(31,270)
0
(3,088)
6,869,927
(74,345)
53,227
(107,711)
(68)
153
5,014
(652,268)
(775,998)
20,651
1,518
(165)
0
3,409
25,413
12,262
6,131,604 $
(339,978)
34,044
(72,499)
(56,000)
(313,427)
200,722
0
39
(218,537)
8,094,366
69,191
71,073
(111,538)
(68)
153
5,014
(690,358)
(656,533)
24,305
4,593
(165)
(813)
3,454
31,374
19,242
7,488,449
The accompanying notes are an integral part of these statements.
EPA's FY 2000 Annual Financial Statements IV-21
-------
Environmental Protection Agency
Consolidated Statement of Custodial Activity
For the Year Ended September 30, 2000
(Dollars in Thousands)
Revenue Activity:
Sources of Collections:
Fines and Penalties 76,850
Other $ 18,418
Total Cash Collections 95,268
Accrual Adjustment (8,678)
Total Custodial Revenue 86,590
Disposition of Collections:
Transferred to Others (General Fund) 97,730
Increases/(Decreases) in Amounts To Be Transferred (11,140)
Total Disposition of Collections 86r590
Net Custodial Revenue Activity $ 0
The accompanying notes are an integral part of these statements.
IV-22 EPA's FY 2000 Annual Report
-------
Environmental Protection Agency
Notes to Financial Statements
(Dollars in Thousands)
Note 1. Summary of Significant Accounting Policies
A. Basis of Presentation
These consolidating financial statements have been prepared to report the financial position and results of
operations of the Environmental Protection Agency (Agency) for the Hazardous Substance Superfund
(Superfund) Trust Fund and All Other Funds, as required by the Chief Financial Officers Act of 1990 and
the Government Management Reform Act of 1994. The reports have been prepared from the books and
records of the Agency in accordance with "Form and Content for Agency Financial Statements," specified
by the Office of Management and Budget (OMB) in Bulletin 97-01, and the Agency's accounting policies
which are summarized in this note. In addition to the guidance in Bulletin 97-01, the Statement of Net Cost
has been prepared by the EPA strategic goals. These statements are therefore different from the financial
reports also prepared by the Agency pursuant to OMB directives that are used to monitor and control the
Agency's use of budgetary resources.
B. Reporting Entities
The Environmental Protection Agency was created in 1970 by executive reorganization from various
components of other Federal agencies in order to better marshal and coordinate Federal pollution control
efforts. The Agency is generally organized around the media and substances it regulates — air, water, land,
hazardous waste, pesticides and toxic substances. For FY 2000, the reporting entities are grouped as
Hazardous Substance Superfund and All Other Funds.
Hazardous Substance Superfund
In 1980, the Hazardous Substance Superfund, commonly referred to as the Superfund Trust Fund, was
established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(CERCLA) to provide resources needed to respond to and clean up hazardous substance emergencies and
abandoned, uncontrolled hazardous waste sites. The Superfund Trust Fund financing is shared by Federal
and state governments as well as industry. The Agency allocates funds from its appropriation to other
Federal agencies to carry out the Act. Risks to public health and the environment at uncontrolled hazardous
waste sites qualifying for the Agency's National Priorities List (NPL) are reduced and addressed through a
process involving site assessment and analysis, and the design and implementation of cleanup remedies.
Throughout this process, cleanup activities may be supported by shorter term removal actions to reduce
immediate risks. Removal actions may include removing contaminated material from the site, providing an
alternative water supply to people living nearby, and installing security measures. NPL cleanups and
removals are conducted and financed by the Agency, private parties, or other Federal agencies. Superfund
includes the Treasury collections and investment activity. The Superfund Trust Fund is accounted for under
Treasury symbol number 8145.
All Other Funds
All Other Funds include Trust Fund appropriations, General Fund appropriations, Revolving Funds, Special
Funds, the Agency Budgetary Clearing accounts, Deposit Funds, General Fund Receipt accounts, the
EPA's FY 2000 Annual Financial Statements IV-23
-------
Environmental Services Special Fund Receipt Account, the Miscellaneous Contributed Funds Trust Fund,
and General Fund appropriations transferred from other Federal agencies as authorized by the Economy
Act of 1932. Trust Fund appropriations are to the Leaking Underground Storage Tank (LUST) Trust Fund
and the Oil Spill Response Trust Fund. General Fund appropriations are to State and Tribal Assistance
Grants (STAG), Science and Technology (S&T), Environmental Programs and Management (EPM), Office
of Inspector General (IG), Buildings and Facilities (B&F), and Payment to the Hazardous Substance
Superfund. General Fund appropriations that no longer receive current appropriations but have
unexpended authority are the Program and Research Operations (PRO), and Energy, Research and
Development. Revolving Funds include the FIFRA Revolving Fund and Tolerance Revolving Fund, which
receive no direct appropriations; however, they do collect fees from public industry as a source of
reimbursement for the services provided. In addition to FIFRA and Tolerance, a Working Capital Fund
(WCF) was established and designated as a franchise fund to provide computer operations support and
postage service for the Agency. A Special Fund was established to collect the Exxon Valdez settlement as a
result of the Exxon Valdez oil spill. All Other Funds are as follows:
The LUST Trust Fund was authorized by the Superfund Amendments and Reauthorization Act of 1986
(SARA) as amended by the Omnibus Budget Reconciliation Act of 1990. The LUST appropriation
provides funding to respond to releases from leaking underground petroleum tanks. The Agency oversees
cleanup and enforcement programs which are implemented by the states. Funds are allocated to the states
through cooperative agreements to clean up those sites posing the greatest threat to human health and
environment. Funds are used for grants to non-state entities including Indian tribes under Section 8001 of
the Resource Conservation and Recovery Act. The program is financed by a 0.1 cent a gallon tax on motor
fuels, which will expire in 2005, and is accounted for under Treasury symbol number 8153.
The Oil Spill Response Trust Fund was authorized by the Oil Pollution Act (OPA) of 1990. The Oil Spill
Response Trust Fund was established in FY 1993 and monies were appropriated to the Oil Spill Response
Trust Fund. The Agency is responsible for directing, monitoring and providing technical assistance for
major inland oil spill response activities. This involves setting oil prevention and response standards,
initiating enforcement actions for compliance with OPA and Spill Prevention Control and Countermeasure
requirements, and directing response actions when appropriate. The Agency carries out research to improve
response actions to oil spills including research on the use of remediation techniques such as dispersants and
bioremediation. Funding of oil spill cleanup actions is provided through the Department of Transportation
under the Oil Spill Liability Trust Fund and reimbursable funding from other Federal agencies. The Oil
Spill Response Trust Fund is accounted for under Treasury symbol number 8221.
The State and Tribal Assistance Grants (STAG) appropriation provides funds for environmental programs
and infrastructure assistance including capitalization grants for State revolving funds and performance
partnership grants. Environmental programs and infrastructure supported are Clean and Safe Water;
Capitalization grants for the Drinking Water State Revolving Funds; Clean Air; Direct grants for Water and
Wastewater Infrastructure needs, Partnership grants to meet Health Standards, Protect Watersheds,
Decrease Wetland Loss, and Address Agricultural and Urban Runoff and Storm Water; Better Waste
Management; Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
Ecosystems; and Reduction of Global and Cross Border Environmental Risks. STAG is accounted for
under Treasury symbol 0103.
The Science and Technology (S&T) appropriation finances salaries; travel; science; technology; research
and development activities including laboratory and center supplies; certain operating expenses; grants;
contracts; intergovernmental agreements; and purchases of scientific equipment. These activities provide
the scientific basis for the Agency's regulatory actions. In FY 2000, Superfund research costs were
appropriated in Superfund and transferred to S&T to allow for proper accounting of the costs. Scientific
IV-24 EPA's FY 2000 Annual Report
-------
and technological activities for environmental issues include Clean Air; Clean and Safe Water; Americans'
Right to Know About Their Environment; Better Waste Management; Preventing Pollution and Reducing
Risk in Communities, Homes, Workplaces, and Ecosystems; and Safe Food. The Science and Technology
appropriation is accounted for under Treasury symbol 0107.
The Environmental Programs and Management (EPM) includes funds for salaries; travel; contracts; grants
and cooperative agreements for pollution abatement, control and compliance activities; and administrative
activities of the operating programs. Areas supported from this appropriation include Clean Air; Clean and
Safe Water; Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces, and
Ecosystems; Better Waste Management, Restoration of Contaminated Waste Sites and Emergency
Response; Reduction of Global and Cross Border Environmental Risks; Americans' Right to Know About
Their Environment; Sound Science, Improved Understanding of Environmental Risk, and Greater
Innovation to Address Environmental Problems; a Credible Deterrent to Pollution and Greater Compliance
with the Law; and Effective Management. The Environmental Programs and Management appropriation is
accounted for under Treasury symbol 0108.
The Office of Inspector General appropriation provides funds for audit and investigative functions to
identify and recommend corrective actions on management and administrative deficiencies that create the
conditions for existing or potential instances of fraud, waste and mismanagement. Additional funds for
audit and investigative activities associated with the Superfund Trust Fund and the Leaking Underground
Storage Tank Trust Fund are appropriated under those Trust Fund accounts and are transferred to the
Office of Inspector General account. The audit function provides contract audit, internal and performance
audit, and financial and grant audit services. The Office of Inspector General appropriation is accounted
for under Treasury symbol 0112 and includes expenses incurred and reimbursed from the appropriated trust
funds being accounted for under Treasury symbols 8145 and 8153.
The Buildings and Facilities appropriation provides for the construction, repair, improvement, extension,
alteration, and purchase of fixed equipment or facilities that are owned or used by the Environmental
Protection Agency. The Buildings and Facilities appropriation is accounted for under Treasury symbol
0110.
The Payment to the Hazardous Substance Superfund appropriation authorizes appropriations from the
General Fund of the Treasury to finance activities conducted through Hazardous Substance Superfund.
Payment to the Hazardous Substance Superfund is accounted for under Treasury symbol 0250.
The Asbestos Loan Program was authorized by the Asbestos School Hazard Abatement Act of 1986 to
finance control of asbestos building materials in schools. Funds have not been appropriated for this
Program since FY 1993. For FY 1993 and FY1992, the program was funded by a subsidy appropriated
from the General Fund for the actual cost of financing the loans, and by borrowing from Treasury for the
unsubsidized portion of the loan. The Program fund disbursed the subsidy to the Financing fund as loans
were made, and disbursed administrative expenses to the providers. The Financing fund received the
subsidy payment, borrowed from Treasury and disbursed loans and collects the asbestos loans. The
Asbestos Loan Program is accounted for under Treasury symbol 4322 for loans receivable and loan
collections on post FY 1991 loans; and under Treasury symbol 2917 for pre FY 1992 loans receivable and
loan collections.
The Program and Research Operations appropriation provides salaries and travel associated with
administering the operating programs within the Environmental Protection Agency. It incorporated
personnel, compensation and benefit costs and travel, exclusive of the Hazardous Substance Response
Trust Fund, the Leaking Underground Storage Tank Trust Fund, the Office of Inspector General and the
EPA's FY 2000 Annual Financial Statements IV-25
-------
Oil Spill Response Trust Fund. In fiscal year 1996, Congress restructured the Agency's accounts. The
Program and Research Operations appropriation was eliminated. Activity remaining from prior fiscal year
appropriations is accounted for under Treasury symbol 0200. Unexpended authority for the Program and
Research Operations appropriation was canceled at the end of the fiscal year.
The FIFRA Revolving Fund was authorized by the Federal Insecticide, Fungicide and Rodenticide Act
Amendments of 1998, as amended by the Food Quality Protection Act of 1996. Fees are paid by industry
to offset costs of accelerated reregistration, expedited processing of pesticides, and establishing tolerances
for pesticide chemicals in or on food and animal feed. The FIFRA Revolving Fund is accounted for under
Treasury symbol number 4310.
The Tolerance Revolving Fund was authorized in 1963 for the deposit of tolerance fees. Fees are paid by
industry for EPA to establish tolerances of pesticide chemicals in or on food and animal feed. Effective
January 2, 1997, fees collected are now being deposited in the Reregistration and Expedited Processing
Revolving Fund (4310). The fees collected prior to this date are accounted for under Treasury symbol
number 4311.
The Working Capital Fund (WCF) includes two activities: computer support services and postage. WCF
derives revenue from these activities based upon fee for services. WCF's customers currently consist solely
of Agency program offices. Accordingly, revenue generated by WCF and expenses recorded by the
program offices for use of such services, along with the related advances/liabilities, are eliminated on
consolidation. The WCF is accounted for under Treasury symbol 4565.
The Exxon Valdez Settlement Fund has funds available to carry out authorized environmental restoration
activities. Funding is derived from the collection of reimbursements under the Exxon Valdez settlement as
a result of the oil spill. The Exxon Valdez Settlement fund is accounted for under Treasury symbol number
5297.
Appropriations transferred to the Agency from other Federal agencies include funds from the Appalachian
Regional Commission and the Department of Commerce, which provide economic assistance to state and
local developmental activities; the Agency for International Development which provides assistance on
environmental matters at international levels; and from the General Services Administration, which provides
funds for rental of buildings, and operations, repairs, and maintenance of rental space. The transfers
appropriations are accounted for under Treasury symbols 0200, 1010, 1021, 2050, and 4542.
Clearing Accounts include the Budgetary suspense account, Deposit in Transit differences, Unavailable
Check Cancellations and Overpayments, and Undistributed and Letter of Credit differences. Clearing
accounts are accounted for under Treasury symbols 3875 and 3880.
Deposit funds include Fees for Ocean Dumping, Nonconformance Penalties, Suspense and payroll deposits
for Savings Bonds, and State and City Income Taxes Withheld. Deposit funds are accounted for under
Treasury symbols 6050, 6264, 6265, 6266, 6275, 6500, and 6875.
General Fund Receipt Accounts include Hazardous Waste Permits; Miscellaneous Fines, Penalties and
Forfeitures; General Fund Interest; Interest from Credit Reform Financing Accounts; Fees and Other
Charges for Administrative and Professional Services; and Miscellaneous Recoveries and Refunds. General
Fund Receipt accounts are accounted for under Treasury symbols 0895, 1099, 1435, 1499, 2410, 3200, and
3220.
IV-26 EPA's FY 2000 Annual Report
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The Environmental Services Receipt account was established for the deposit of fee receipts associated with
environmental programs, including radon measurement proficiency ratings and training, motor vehicle
engine certifications, and water pollution permits. Receipts in this special fund will be appropriated to the
S&T appropriation and to the EPM appropriation to meet the expenses of the programs that generate the
receipts. Environmental Services are unavailable receipts accounted for under Treasury symbol 5295.
The Miscellaneous Contributed Funds Trust Fund includes gifts for pollution control programs that are
usually designated for a specific use by the donor and deposits from pesticide registrants to cover the costs
of petition hearings when such hearings result in unfavorable decisions to the petitioner. Miscellaneous
Contributed Funds Trust Fund is accounted for under Treasury symbol 8741.
The accompanying financial statements include the accounts of all funds described in this note. The
expense allocation methodology is a financial statement estimate that presents EPA's programs at full cost.
Superfund may charge some costs directly to the fund and charge the remainder of the costs to the All
Other Funds in the Agency-wide appropriations. These amounts are presented as Expenses from Other
Appropriations on the Statement of Net Cost and as Income from Other Appropriations on the Statement
of Changes in Net Position and the Statement of Financing.
The Superfund Trust Fund is allocated general support services costs (such as rent, communications,
utilities, mail operations, etc.) that were initially charged to the Agency's S&T and EPM appropriations.
During the year, these costs are allocated from the S&T and EPM appropriations to the Superfund Trust
Fund based on a ratio of direct labor hours, using budgeted or actual full-time equivalent personnel charged
to these appropriations, to the total of all direct labor hours. Agency general support services cost charges
to the Superfund Trust Fund may not exceed the ceilings established in the Superfund Trust Fund
appropriation. The related general support services costs charged to the Superfund Trust Funds was $56.3
million for FY 2000.
C. Budgets and Budgetary Accounting
Superfiind
Congress adopts an annual appropriation amount to be available until expended for the Superfund Trust
Fund. A transfer account for the Superfund Trust Fund has been established for purposes of carrying out
the program activities. As the Agency disburses obligated amounts from the transfer account, the Agency
draws down monies from the Superfund Trust Fund at Treasury to cover the amounts being disbursed.
All Other Funds
Congress adopts an annual appropriation amount for the LUST Trust Fund and for the Oil Spill Response
Trust Fund to remain available until expended. A transfer account for the LUST Trust Fund has been
established for purposes of carrying out the program activities. As the Agency disburses obligated amounts
from the transfer account, the Agency draws down monies from the LUST Trust Fund at Treasury to cover
the amounts being disbursed. The Agency draws down all the appropriated monies from the Treasury's Oil
Spill Liability trust fund to the Oil Spill Response Trust Fund when Congress adopts the appropriation
amount. Congress adopts an annual appropriation for STAG, Buildings and Facilities, and for Payments to
the Hazardous Substance Superfund to be available until expended; adopts annual appropriation for S&T,
EPM and for the Office of Inspector General to be available for two fiscal years. When the appropriations
for the General Funds are enacted, Treasury issues a warrant to the respective appropriations. As the
Agency disburses obligated amounts, the balance of funds available to the appropriation is reduced at
Treasury.
EPA's FY 2000 Annual Financial Statements IV-27
-------
The Asbestos Loan Program is a commercial activity financed by a combination from two sources: one for
the long term cost of the loan and another for the remaining non-subsidized portion of the loan. The long
term costs are defined as the net present value of the estimated cash flows associated with the loans. The
portion of each loan disbursement that does not represent long term cost is financed under a permanent
indefinite borrowing authority established with the Treasury. The annual appropriation bill limits the
amount of obligations that can be made for direct loans. A permanent indefinite appropriation is available
to finance the costs of subsidy re-estimates that occur after the year in which the loan is disbursed. No
appropriation was adopted by Congress for FY 2000; therefore, there was no new financing available to the
Asbestos Loan Program for FY 2000.
Funding of the FIFRA and the Tolerance Revolving Funds is provided by fees collected from industry to
offset costs incurred by the Agency in carrying out these programs. Each year the Agency submits an
apportionment request to OMB based on the anticipated collections of industry fees.
Funding of the WCF is provided by fees collected from other Agency appropriations collected to offset
costs incurred for providing the Agency administrative support for computer support services and postage.
Funds transferred from other Federal agencies is funded by a non expenditure transfer of funds from the
other Federal agencies. As the Agency disburses the obligated amounts, the balance of funding available to
the transfer appropriation is reduced at Treasury.
Clearing accounts, Deposit accounts, and Receipt accounts receive no budget. The amounts are recorded to
the Clearing and Deposit accounts pending further disposition. Amounts recorded to the Receipt accounts
capture amounts receivable to or collected for the General Fund of the U.S. Treasury.
D. Basis of Accounting
Super fund and All Other Funds
Transactions are recorded on an accrual accounting basis and on a budgetary basis (where budgets are
issued). Under the accrual method, revenues are recognized when earned and expenses are recognized
when a liability is incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates
compliance with legal constraints and controls over the use of Federal funds. All interfund balances and
transactions have been eliminated.
E. Revenues and Other Financing Sources
Superfund
The Superfund receives most funding needed to support the program through appropriations that may be
used within statutory limits, for operating and capital expenditures (primarily equipment). Additional
financing for the Superfund Trust Fund is obtained through reimbursements from other Federal agencies,
from States for State Cost Share, and from potentially responsible parties (PRPs) for future costs. Revenues
collected through cost recovery are deposited with the Trust fund at Treasury.
All Other Funds
The majority of All Other Funds appropriations receive funding needed to support programs through
appropriations, which may be used, within statutory limits, for operating and capital expenditures. Under
Credit Reform provisions, the Asbestos Loan Program received funding to support the subsidy cost of loans
IV-28 EPA's FY 2000 Annual Report
-------
through appropriations which may be used with statutory limits. The Asbestos Direct Loan Financing fund,
an off-budget fund, receives additional funding to support the loan disbursements through collections from
the Program fund for the subsidized portion of the loan and through borrowing from Treasury for the non-
subsidized portion. The last year Congress provided appropriations for this fund was 1993, accordingly, no
new funding has been available for this program. The FIFRA and the Tolerance Revolving Funds receive
funding, which is now deposited with the FIFRA Revolving Fund, through fees collected for services
provided. The FIFRA Revolving Fund also receives interest on invested funds. The WCF receives revenue
through fees collected for services provided to Agency program offices. Such revenue is eliminated with
related Agency program expenses on Consolidation. The Exxon Valdez Settlement Fund received funding
through reimbursements.
Appropriations are recognized as Other Financing Sources when earned, i.e., when goods and services have
been rendered without regard to payment of cash. Other revenues are recognized when earned, i.e., when
services have been rendered.
F. Funds with the Treasury
Super fund and All Other Funds
The Agency does not maintain cash in commercial bank accounts. Cash receipts and disbursements are
handled by Treasury. The funds maintained with Treasury are Appropriated Funds, Revolving Funds and
Trust Funds. These funds have balances available to pay current liabilities and finance authorized purchase
commitments.
G. Investments in U.S. Government Securities
Superfund and All Other Funds
Investments in U.S. Government securities are maintained by Treasury and are reported at amortized cost
net of unamortized discounts. Discounts are amortized over the term of the investments and reported as
interest income. Investments are held to maturity, unless they are needed to finance operations of the fund.
H. Securities Received in Settlement
Superfund
During FY 1993 and FY 1996, the Agency received marketable equity securities, valued at a total $5,146
thousand of which $5,127 thousand are still held, from a company in settlement of Superfund cost recovery
actions. The Agency records marketable securities at cost as of the date of receipt. Marketable securities are
held by Treasury and reported at their cost value in the financial statements until sold.
I. Accounts Receivable and Interest Receivable
Superfund
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), as amended by
the Superfund Amendments and Reauthorization Act (SARA), provides for the recovery of costs from
potentially responsible parties (PRPs). However, cost recovery expenditures are expensed when incurred
since there is no assurance that these funds will be recovered.
EPA's FY 2000 Annual Financial Statements IV-29
-------
It is the Agency's policy to record accounts receivable from PRPs for Superfund site response costs when a
consent decree, judgment, administrative order, or settlement is entered. These agreements are generally
negotiated after site response costs have been incurred. It is the Agency's position that until a consent
decree or other form of settlement is obtained, the amount recoverable should not be recorded.
The Agency also records accounts receivable from states for a percentage of Superfund site remedial action
costs incurred by the Agency within those states. As agreed to under Superfund State Contracts (SSCs),
cost sharing arrangements under SSCs may vary according to whether a site was privately or publicly
operated at the time of hazardous substance disposal and whether the Agency response action was removal
or remedial. SSC agreements are usually for 10% or 50% of site remedial action costs. States may pay the
full amount of their share in advance, or incrementally throughout the remedial action process. Allowances
for uncollectible state cost share receivables have not been recorded, because the Agency has not had
collection problems with these agreements.
All Other Funds
The majority of receivables for All Other Funds represent interest receivable for Asbestos and FIFRA and
both accounts receivable and interest receivable to the General Fund of the Treasury.
J. Loans Receivable
All Other Funds
Loans are accounted for as receivables after funds have been disbursed. Loans receivable resulting from
obligations on or before September 30, 1991, are reduced by the allowance for uncollectible loans. Loans
receivable resulting from loans obligated on or after October 1, 1991, are reduced by an allowance equal to
the present value of the subsidy costs associated with these loans. The subsidy cost is calculated based on
the interest rate differential between the loans and Treasury borrowing, the estimated delinquencies and
defaults net of recoveries offset by fees collected and other estimated cash flows associated with these loans.
K. Appropriated Amounts Held by Treasury
Superfund and All Other Funds
For the Superfund and LUST Trust Funds, and for amounts appropriated to the Office of Inspector
General from the Superfund and LUST Trust Funds, cash available to the Agency that is not needed
immediately for current disbursements remains in the respective Trust Funds managed by Treasury. At the
end of FY 2000 approximately $2.7 billion remained in the Treasury managed Superfund Trust Fund and
approximately $86.2 million remained in the LUST Trust Fund to meet the Agency's disbursement needs.
L. Advances and Prepayments
Superfund and All Other Funds
Advances and prepayments represent funds advanced or prepaid to other entities both internal and external
to the Agency for which a budgetary expenditure has not yet occurred.
IV-30 EPA's FY 2000 Annual Report
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M. Property, Plant, and Equipment
Super fund and All Other Funds
The Fixed Assets Subsystem (FAS) implemented in FY 1997 maintains EPA-held personal and real property
records. The FAS automatically generates depreciation entries monthly based upon the acquisition date.
Purchases of EPA-held and contractor-held personal equipment are capitalized if the equipment is valued at
$25 thousand or more and has an estimated useful life of at least two years. Prior to implementing FAS,
depreciation was taken on a modified straight-line basis over a period of six years depreciating 10% the first
and sixth year, and 20% in years two through five. All EPA-held personal equipment purchased before the
implementation of FAS was assumed to have an estimated useful life of five years. New acquisitions of
EPA-held personal equipment are depreciated using the straight-line method over the specific assets' useful
lives, ranging from two to 15 years.
Real property consists of land, buildings, and capital and leasehold improvements. Real property, other than
land, is capitalized when the value is $75 thousand or more. Land is capitalized regardless of cost.
Buildings are valued at an estimated original cost basis, and land is valued at fair market value. Depreciation
for real property is calculated using the straight-line method over the specific assets' useful lives, ranging
from 10 to 102 years. Leasehold improvements are amortized over the lesser of their useful lives or the
unexpired lease terms. In addition to property and improvements not meeting the capitalization criteria,
expenditures for minor alterations, and repairs and maintenance are expensed as incurred.
N. Liabilities
Superfund and All Other Funds
Liabilities represent the amount of monies or other resources that are likely to be paid by the Agency as the
result of a transaction or event that has already occurred. However, no liability can be paid by the Agency
without an appropriation or other collection of revenue for services provided. Liabilities for which an
appropriation has not been enacted are classified as unfunded liabilities and there is no certainty that the
appropriations will be enacted. Liabilities of the Agency, arising from other than contracts, can be
abrogated by the Government acting in its sovereign capacity.
O. Borrowing Payable to the Treasury
All Other Funds
Borrowing payable to Treasury results from loans from Treasury to fund the Asbestos direct loans described
in part B and C of this note. Periodic principal payments are made to Treasury based on the collections of
loans receivable.
P. Interest Payable to Treasury
All Other Funds
The Asbestos Loan Program makes periodic interest payments to Treasury based on its debt to Treasury.
At the end of FY 2000, there was no outstanding interest payable to Treasury since payment was made
through September 30.
EPA's FY 2000 Annual Financial Statements IV-31
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Q. Accrued Unfunded Annual Leave
Superfund and All Other Funds
Annual, sick and other leave is expensed as taken during the fiscal year. Sick and other leave earned but not
taken is not accrued as a liability. Annual leave and compensation time in lieu of overtime earned but not
taken as of the end of the fiscal year are accrued as an unfunded liability. Accrued unfunded leave is
included in the Statement of Financial Position as a component of "Other Liabilities-Governmental." As of
September 30, 2000, the unfunded leave liability for the Superfund Trust Fund was $19.6 million and for All
Other Funds was $93.2 million.
R. Retirement Plan
Superfund and All Other Funds
The majority of the Agency's employees participate in the Civil Service Retirement System (CSRS), to which
the Agency contributes 8.51% and employees contribute 7.40% (as of January 1, 2000) of base pay.
On January 1, 1987, the Federal Employees Retirement System (FERS) went into effect pursuant to Public
Law 99-335. Most employees hired after December 31, 1983, are automatically covered by FERS and Social
Security. Employees hired prior to January 1, 1984, were allowed to either join FERS and Social Security or
remain in CSRS. A primary feature of FERS is that it offers a savings plan to the Agency employees which
automatically contributes 1 percent of pay and matches any employee contribution up to an additional 4
percent of pay. For most employees hired after December 31, 1983, the Agency also contributes the
employer's matching share for Social Security.
With the issuance of "Accounting for Liabilities of the Federal Government" (SFFAS-5), which was
effective for the FY 1997 financial statements, accounting and reporting standards were established for
liabilities relating to the Federal employee benefit programs (Retirement, Health Benefits and Life
Insurance). SFFAS-5 requires that employing agencies recognize the cost of pensions and other retirement
benefits during their employees' active years of service. SFFAS-5 requires that the Office of Personnel
Management, as administrator of the Civil Service Retirement and Federal Employees Retirement Systems,
the Federal Employees Health Benefits Program, and the Federal Employees Group Life Insurance
Program, provides EPA with the "Cost Factors" to compute EPA's liability for each program.
S. Cost Accounting
Superfund and All Other Funds
EPA has designated the Goals, Objectives and Sub-objectives of the Agency's Strategic Plan prepared under
the Government Performance and Results Act (GPRA) as the Agency's "products and services." Under the
GPRA structure, each expenditure from obligations made using new obligational authority (NOA) in FY
1999 forward is made at the Goal, Objective, Sub-objective level that is part of the Program Results Code
(PRC). EPA's senior management made the decision not to "recast" resources under the old Program
Element (PE) structure to the GPRA structure. However, the program offices where these PEs were
obligated and disbursed cross walked the expenses to the appropriate Goal(s). Most of the PEs can be
traced directly to a Goal and in those cases where PEs crossed Goals, the allocation of expenses was done
on a reasonable and consistent basis.
IV-32 EPA's FY 2000 Annual Report
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Program Performance Grants (PPGs) allow state and interstate agencies to combine two or more
environmental program grants into one grant. PPGs are performance based and the States are accountable
for performance but not for detailed accounting as to how funds are spent. These grants may cover several
Goals. EPA grant project officers in discussion with States align the grant work plan with the GPRA
structure. Accounting at the Goal level is based on expected performance as outlined in the work plan.
Adjustments are made to the accounting only if the actual performance varies materially from the grant
work plan.
Activities occurring in Goal 10 are for the administrative functions necessary for a federal agency to support
its complex and wide reaching programs. These activities are not directly charged to the Agency's
environmental programs. For the Statement of Net Cost by Goal, the costs in Goal 10 are allocated to
Goals 1 thru 9 based on the total Full Time Equivalents (FTE) within each Goal. The Goal 10 agency-wide
costs are allocated based on the total FTE in each of the Goals; costs associated with regional support are
allocated based on Regional FTE in each Goal.
Note 2. Fund Balances with Treasury
Fund Balances with Treasury as of September 30, 2000, consists of the following (in thousands):
Entity Non-
Assets Assets Total
Trust Funds:
Superfund $ 37,397 $ 0 $ 37,397
LUST 1,300 0 1,300
Oil Spill 3,106 0 3,106
Revolving Funds:
FIFRA 5,442 0 5,442
Tolerance 22 0 22
Working Capital 52,509 0 52,509
Appropriated Funds 10,913,47 0 10,913,471
Other Fund Types 76.338 7.068 83.406
Total $ 11,089,58 $ 7,068 $ 11,096,653
Entity fund balances include balances that are available to pay current liabilities and to finance authorized
purchase commitments. Also, entity assets, Other Fund Types consist of the Environmental Services
Receipt account. The Environmental Services Receipt account is a special fund receipt account. Upon
Congress appropriating the funds, EPA will use the receipts in the Science and Technology appropriation
and the Environmental Programs and Management appropriation.
The non-entity Other Fund Type consist of deposit funds. The deposit funds are awaiting documentation
for the determination of proper accounting disposition.
NoteS. Cash
In All Others, as of September 30, 2000, Cash consisted of imprest funds totaling $48 thousand.
EPA's FY 2000 Annual Financial Statements IV-33
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Note 4. Investments
As of September 30, 2000, investments consisted of the following:
Amounts for Balance
Unamortized
(Premium) Interest Investment Market
Superfund
Intragovernmental
Non-Marketable $ 4,126,45 $ 166,180 $ _ 42 $ 3,960,313 $ 3,960,313
All Others
Intragovernmental
Non-Marketable $ 1,669,66 $ 76,334 J _ 2Ł $ 1,593,357 $ 1,593,357
CERCLA, as amended by SARA, authorizes EPA to recover monies to clean up Superfund sites from
responsible parties (RP). Some RPs file for bankruptcy under Title 11 of the U.S. Code. In bankruptcy
settlements, EPA is an unsecured creditor and is entitled to receive a percentage of the assets remaining
after secured creditors have been satisfied. Some RPs satisfy their debts by issuing marketable securities in
the reorganized company. The Agency does not intend to exercise ownership rights to these securities, and
instead will convert these securities to cash as soon as practicable.
Note 5. Accoun ts R eceiva ble
The Accounts Receivable for September 30, 2000, consist of the following:
Superfund All
Intragovernmental Assets:
Accounts & Interest Receivable $ 40.671 $ 34.371
Total $ 40,671 $ 34,371
Governmental Assets:
Unbilled Accounts Receivable $ 88,209 $ 0
Accounts & Interest Receivable 883,938 155,581
Less: Allowance for Doubtful r355.108^ f6
Total $ 617,039 $ 87,895
Accounts receivable due from other Federal agencies are considered fully collectible.
The Allowance for Doubtful Accounts is determined on a specific identification basis as a result of a case-
by-case review of receivables at the regional level, and a reserve on a percentage basis for those not
specifically identified.
The Accounts Receivable amount above includes a Superfund penalty amount of $638.6 thousand that was
applied and posted late in FY 2000. The agency believes that collection of this amount is not likely. Had
the penalty been applied earlier in the year, the Allowance for Doubtful Accounts would have been adjusted
upward by $479 thousand to account for the low likelihood of collection.
IV-34 EPA's FY 2000 Annual Report
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Note 6. Other Assets
Other Assets for September 30, 2000, consist of the following
Superfund All
Trust Fund Others
Combined Intra-agency Consolidated
Totals Eliminations Totals
$ 15,279 1
6,510
0
$ 21,789 $
$ (18) J
0
0
767
1
0
0
$ 750 $
; 7,409
0
43
i 7,452 :
; (916)
599
1,945
75
0
(2)
11
» 1,712 :
$ 22,688 }
6,510
43
$ 29,241 5
$ (934) }
599
1,945
842
1
(2)
11
$ 2,462 ^
f 0 $
(6,510)
0
J (6,510) $
f 0 $
0
0
0
0
5 0 $
22,688
0
43
; 22,731
(934)
599
1,945
842
1
(2)
11
; 2,462
Intragovernmental Assets:
Advances to Federal Agencies
Advances to Working Capital Fund
Advances for Postage
Total Intragovernmental Assets
Governmental Assets:
Travel Advances
Letter of Credit Advances
Grant Advances
Other Advances
Bank Card Payments
Deposit on Returnable Containers
Prepaid Rent
Total Governmental Assets
Note 7. Loans Receivable, Net - Non-Federal
Asbestos Loan Program loans disbursed from obligations made prior to FY 1992 are net of an allowance for
estimated uncollectible loans, if an allowance was considered necessary. Loans disbursed from obligations made
after FY 1991 are governed by the Federal Credit Reform Act. The Act mandates that the present value of the
subsidy costs (i.e., interest rate differentials, interest subsidies, anticipated delinquencies, and defaults) associated with
direct loans be recognized as an expense in the year the loan is made. The net present value of loans is the amount of
the gross loan receivable less the present value of the subsidy.
An analysis of loans receivable and the nature and amounts of the subsidy and administrative expenses associated
entirely with Asbestos Loan Program loans as of September 30, 2000, is provided in the following sections.
Loans
Receivable,
Gross
$ 58,114
46,909
$ 105,023
Allowance*
$ 0
(15,895)
$ (15,895)
Value of
Assets Related
to Direct Loans
$ 58,114
31,014
$ 89,128
Direct Loans Obligated Prior to FY 1992
Direct Loans Obligated After FY 1991
Total
* Allowance for Pre-Credit Reform loans (Prior to FY 1992) is the Allowance for Estimated Uncollectible
Loans and the Allowance for Post Credit Reform Loans (After FY 1991) is the Allowance for Subsidy Cost
(present value).
EPA's FY 2000 Annual Financial Statements IV-35
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Subsidy Expenses for Post Credit Reform Loans:
Interest Expected Fee
Differential Defaults Offsets Total
Direct Loan Subsidy Expense
2.640 $
0 $ 0 $ 2.640
Note 8. Inventory and Property Received in Settlement, Net
The Inventory and Related Property at September 30, 2000, consisted of the following:
Superfund All Other
Operating Materials and Supplies Held for Use in Normal Operations $ 0 $ 306
Securities Received in Settlement 5,086 41
Total $ 5.086 $ 347
The securities represent assets received during a bankruptcy proceeding. The Agency does not intend to exercise
ownership rights related to these securities, and instead will convert these securities to cash as soon as practicable.
Note 9. General Plant, Property and Equipment
Superfund property, plant and equipment, consists of personal property items held by contractors and the Agency.
EPA also has property funded by various other Agency appropriations. The property funded by these appropriations
are presented in the aggregate under "All Others" and consists of real, EPA-Held and Contractor-Held personal, and
capitalized-leased property.
Purchases of EPA-Held and Contractor-Held personal property are capitalized if the equipment is valued at $25
thousand or more and has an estimated useful life of at least two years. Software is capitalized if the purchase price is
$100 thousand or more for a revenue generating activity, such as the Working Capital Fund, and has an estimated
useful life of at least two years. The Agency depreciates EPA-Held personal property using a straight-line method
over the asset's useful life ranging from two to 15 years. Contractor-Held personal property is depreciated over five
years using a modified straight-line method. Real property, other than land, is capitalized when the value is $75
thousand or more and is depreciated using the straight-line method over the specific asset's useful life ranging from
10 to 102 years. Land is capitalized regardless of cost. Leasehold improvements are amortized over the lesser of their
useful lives or the unexpired lease term.
As of September 30, 2000, Plant, Property and Equipment consisted of the following:
Superfund
All Others
Acquisition Accumulated Net Book Acquisition Accumulated Net Book
Value Depreciation Value Value Depreciation Value
EPA-Held
Equipment $
Software
Contractor-Held
Equipment
Land and
Buildings
Capital Leases
Total $
24,733
0
8,814
0
0
33,547
$ (16,313) $
0
(3,653)
0
0
$ (19,966) ^
f 8,420 !
0
5,161
0
0
f 13,581 !
I 134,893 $
550
34,103
461,817
40,992
I 672,355 $
(86,883)
0
(27,551)
(73,430)
(11,463)
(199,327)
$ 48,010
550
6,552
388,387
29,529
$ 473,028
IV-36 EPA's FY 2000 Annual Report
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Note 10. Debt
The Debt consisted of the following as of September 30, 2000:
Beginning Net Ending
All Others Balance Borrowing Balance
Other Debt:
Debt to Treasury $ 37.922 $ 0 $ 37.922
Classification of Debt:
Intra-governmental Debt $ 37,922
Total $ 37.922
Note 11. Custodial Liability
Custodial Liability represent the amount of net accounts receivable that, when collected, will be deposited to the
General Fund of the Treasury. Included in the custodial liability are amounts for fines and penalties, interest
assessments, repayments of loans, and miscellaneous other accounts receivable.
Note 12. Other Liabilities
The Other Liabilities, both intragovernmental and non-Federal, for September 30, 2000, are as follows:
Other Liabilities - Intragovernmental Covered by Not Covered by
Budgetary Resources Budgetary Resources Total
Superfund - Current
Employer Contributions & Payroll Taxes $ 2,900 $ 0 $ 2,900
Other Advances 1,681 0 1,681
Advances, HRSTF Cashout 2,414 0 2,414
Deferred HRSTF Cashout 437 0 437
Resources Payable to Treasury 61 0 61
Superfund - Non-Current
Unfunded FECA Liability 0 1,355 1,355
Total Superfund $ 7.493 $ 1.355 I 8.848
All Other - Current
Employer Contributions & Payroll Taxes $ 12,690 $ 0 $ 12,690
WCF Advances 6,510 0 6,510
Other Advances 3,638 0 3,638
Liability for Deposit Funds (20) 0 (20)
Resources Payable to Treasury (33) 0 (33)
All Other - Non-Current
Unfunded FECA Liability 0 6,064 6,064
Total All Other $ 22.785 $ 6.064 $ 28.849
EPA's FY 2000 Annual Financial Statements IV-37
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Other Liabilities - Non-Federal
Superfund - Current
Accrued Funded Payroll and Benefits
Accrued Funded Annual Leave
Payroll Check Cancellation Liability
Unearned Advances, Non- Federal
Accrued Unfunded Annual Leave
Total Superfund
Other Liabilities - Non-Federal
All Other - Current
Accrued Funded Payroll and Benefits
Withholdings Payable
Accrued Funded Annual Leave
Payroll Check Cancellation Liability
Unearned Advances, Non- Federal
Liability for Deposit Funds
Accrued Unfunded Annual Leave
All Other - Non-Current
Capital Lease Liability
Total All Other
Covered by Not Covered by
Budgetary Resources Budgetary Resources Total
7,499
5,777
3
30,192
0
0 $ 7,499
0
0
0
19,553
43.471
19.553
Covered by Not Covered by
Budgetary Resources Budgetary Resources
32,570
25,278
320
44
4,729
6,833
0
0
0
0
0
0
0
0
93,151
37.585
69.774
Note 13. Leases
The Capital Leases as of September 30, 2000, consist of the following:
Capital Leases:
Summary of Assets Under Capital Lease:
Land, Buildings and Personal Property
Accumulated Amortization
All Others
$ 40.992
$ 11.463
5,777
3
30,192
19,553
63.024
Total
32,570
25,278
320
44
4,729
6,833
93,151
37.585
130.736 $ 200.510
EPA has three capital leases for land and buildings housing scientific laboratories and/or computer facilities. All of
these leases include a base rental charge and escalator clauses based upon either rising operating costs and/or real
estate taxes. The base operating costs are adjusted annually according to escalators in the Consumer Price Indices
published by the Bureau of Labor Statistics (U.S. Department of Labor). EPA has one capital lease for a xerox
copier, at a net present value of $78 thousand, that expires in FY 2002. The three real property leases terminate in
fiscal years 2010, 2013 and 2025. The charges are expended out of the Environmental Programs and Management
(EPM) appropriation. The total future minimum lease payments of the capital leases are listed below.
IV-38 EPA's FY 2000 Annual Report
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Future Payments Due: All Others
Fiscal Year
2001 $ 6,314
2002 6,303
2003 6,295
2004 6,295
2005 6,295
After 5 Years 96,194
Total Future Minimum Lease Payments 127,696
Less: Imputed Interest (90,111)
Net Capital Lease Liability $ 37,585
Liabilities not Covered by
Budgetary Resources (See Note 10) $ 37,585
Operating Leases:
The General Services Administration (GSA) provides leased real property (land and buildings) as office space for
EPA employees. GSA charges a Standard Level Users Charge that approximates the commercial rental rates for
similar properties.
EPA has five direct operating leases for land and buildings housing scientific laboratories and/or computer facilities
during FY 2000. In FY 2000 EPA also entered into a one year lease for the dockage of EPA's research vessel "Peter
W. Anderson" and warehouse storage of equipment that expires May 31, 2001. Most of these leases include a base
rental charge and escalator clauses based upon either rising operating costs and/or real estate taxes. The base
operating costs are adjusted annually according to escalators in the Consumer Price Indices published by the Bureau
of Labor Statistics (U.S. Department of Labor). One of these leases, which expired on September 30, 2000, was
succeeded by a GSA lease agreement for the same space. Two of these leases, which were to terminate during FY
2000, were extended to fiscal years 2002 and 2020. In fiscal year 1997 and 1998, EPA entered into two leases, which
terminate in fiscal 2017 and 2003 respectively. The charges are expended out of the EPM appropriation. The total
minimum future costs of operating leases are listed below.
Total Land
Fiscal Year Superfund All Others & Buildings
2001 $ 0 $ 5,427 $ 5,427
2002 0 2,082 2,082
2003 0 84 84
2004 0 74 74
2005 0 74 74
Beyond 2006 0_ 994 994
Total Future Minimum
Lease Payments $ 0_ $ 8.735 $ 8.735
Note 14. Pension and Other Actuarial Liabilities
FECA provides income and medical cost protection to covered Federal civilian employees injured on the job,
employees who have incurred a work-related occupational disease, and beneficiaries of employees whose death is
attributable to a job-related injury or occupational disease. Annually, EPA is allocated the portion of the long term
FECA actuarial liability attributable to the entity. The liability is calculated to estimate the expected liability for death,
disability, medical and miscellaneous costs for approved compensation cases. The liability amounts and the
calculation methodologies are provided by DOL.
EPA's FY 2000 Annual Financial Statements IV-39
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The FECA Actuarial Liability at September 30, 2000, consisted of the following:
FECA Actuarial Liability
Superfund
$ 6.637
All Other
27.036
The FY 2000 present value of these estimates was calculated using a discount rate of 5.5 percent in years 1 and 2, 5.55
percent in year 3 and 5.6 percent in year 4 and thereafter. The estimated future costs are recorded as an unfunded
liability.
Note 15. Cashout Advances and Deferrals, Superfund
Cashouts are funds received by EPA, a state, or another Potentially Responsible Party under the terms of a settlement
agreement (e.g., consent decree) to finance response action costs at a specified Superfund site. Under CERCLA
Section 122(b)(3), cashout funds received by EPA are placed in site-specific, interest bearing accounts known as
special accounts and are used in accordance with the terms of the settlement agreement. Funds placed in special
accounts may be used without further appropriation by Congress.
Note 16. Unexpended Appropriations
As of September 30, 2000, the Unexpended Appropriations consisted of the following:
Superfund All Others
Total
1,518,675
83,396
8.517.767
_Q_ $ 10.119.838 $ 10.119.838
o 1
0
0
; 1,518,675
83,396
8,517,767
Unexpended Appropriations:
Unobligated
Available
Unavailable
Undelivered Orders
Total
Note 17. Amounts Held by Treasury
Amounts Held by Treasury for Future Appropriations consists of amounts held in trusteeship by the U.S.
Department of Treasury in the "Hazardous Substance Superfund Trust Fund" (Superfund) and the "Leaking
Underground Storage Tank Trust Fund" (LUST).
Superfund (Audited)
Superfund is supported primarily by an environmental tax on corporations, cost recoveries of funds spent to clean up
hazardous waste sites, and fines and penalties. Prior to December 31, 1995, the fund was also supported by other
taxes on crude and petroleum and on the sale or use of certain chemicals. The authority to assess those taxes and the
environmental tax on corporations also expired on December 31, 1995, and has not been renewed by Congress. It is
not known if or when such taxes will be reassessed in the future.
The following reflects the Superfund Trust Fund maintained by the U.S. Department of Treasury as of September 30,
2000. The amounts contained in these statements have been provided by the Treasury and are audited. Outlays
represent amounts received by EPA's Superfund Trust Fund; such funds are eliminated on consolidation with the
Superfund Trust Fund maintained by Treasury.
IV-40 EPA's FY 2000 Annual Report
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EPA
Treasury
Combined
Undistributed Balances
Available for Investment
Unavailable for Investment
Total Undisbursed Balance
Interest Receivables
Investments, Net of Discounts
Total Assets
Liabilities & Equity
Debt
Equity
Total Liability and Equity
Receipts
Petroleum-Imported
Petroleum-Domestic
Crude and Petroleum
Certain Chemicals
Imported Substances
Corporate Environmental
Cost Recoveries
Fines & Penalties
Total Revenue
Appropriations Received
Interest Income
Total Receipts
Outlays
Transfers to EPA
Total Outlays
Net Income
2,770,969
1,628,891
1,628,891
1.628.891
1,986
0
1,986
43
1,189,301
176
2
(561)
2,166
606
2,679
230,508
725
236,301
700,000
235,740
1,172,041
(1,628,891)
(1,628,891)
f456.850)
1,986
0
1,986
43
3,960,270
$ 2.770.969 $ 1.191.330 $ 3.962.299
$ 0 $ 0 $ 0
2,770,969 1,191,330 3,962,299
$ 2.770.969 $ 1.191.330 $ 3.962.299
176
2
(561)
2,166
606
2,679
230,508
725
236,301
700,000
235,740
1,172,041
0
1.172.041
LUST (Audited)
LUST is supported primarily by a sales tax on motor fuels to clean up LUST waste sites. The following represents
LUST Trust Fund as maintained by the U.S. Department of Treasury. The amounts contained in these statements
have been provided by Treasury and are audited. Outlays represent appropriations received by EPA's LUST Trust
Fund; such funds are eliminated on consolidation with the LUST Trust Fund maintained by Treasury.
EPA's FY 2000 Annual Financial Statements IV-41
-------
EPA Treasury Combined
Undistributed Balances
Available for Investment $ 0 $ (725) $ (725)
Unavailable for Investment 0 0 0
Total Undisbursed Balance 0 (725) (725)
Taxes Receivable 0 221 221
Interest Receivables 0 26 26
Investments, Net of Discounts 86,283 1,506,348 1,592,631
Total Assets $ 86.283 $ 1.505.870 $ 1.592.153
Liabilities & Equity
Accrued Liabilities $ 0 $ 2,892 $ 2,892
Equity 86,283 1,502,978 1,589,261
Total Liability and Equity $ 86.283 $ 1.505.870 $ 1.592.153
Receipts
Highway TF Tax $ 0 $ 172,659 $ 172,659
Airport TF Tax 0 16,380 16,380
Inland TF Tax 0 612 612
Audit Adjustment 0 (1,710) (1,710)
Gross Revenue 0 187,941 187,941
Less: Reimbursement to
General Fund 0 (6,625) (6,625)
Net Revenue 0 181,316 181,316
Interest Income 0 78,956 78,956
Net Receipts 0 260,272 260,272
Outlays
Transfers to EPA 65,718 (65,718) 0
Total Outlays 65,718 (65,718) 0
Net Income $ 65.718 $ 194.554 $ 260.272
Note 18. Commitments and Contingencies
EPA is a party in various administrative proceedings, legal actions and claims brought by or against it. These include:
Various personnel actions, suits, or claims brought against the Agency by employees and others.
Various contract and assistance program claims brought against the Agency by vendors, grantees and others.
The legal recovery of Superfund costs incurred for pollution cleanup of specific sites, to include the
collection of fines and penalties from responsible parties.
Claims against recipients for improperly spent assistance funds which may be settled by a reduction of future
EPA funding to the grantee or the provision of additional grantee matching funds.
IV-42 EPA's FY 2000 Annual Report
-------
Superfund
Under CERCLA *106(a), EPA issues administrative orders that require parties to clean up contaminated sites.
CERCLA »106(b) allows a party that has complied with such an order to petition EPA for reimbursement from the
Fund of its reasonable costs of responding to the order, plus interest. To be eligible for reimbursement, the party
must demonstrate either that it was not a liable party under CERCLA *107(a) for the response action ordered, or that
the Agency's selection of the response action was arbitrary and capricious or otherwise not in accordance with law.
There are currently nine CERCLA »106(b) administrative claims and four pending lawsuits. If the claimants are
successful, the total losses on the administrative and judicial claims could amount to approximately $32.6 million and
$5.7 million, respectively. The Environmental Appeals Board has not yet issued final decisions on the administrative
claims; therefore, a definite estimate of the amount of the contingent loss cannot be made. The claimants' chance of
success in all nine of these outstanding claims is characterized as reasonably possible. The claimants' chance of
success in three of the four pending lawsuits is also reasonably possible. The outcome of the remaining lawsuit is
considered remote.
There are a number of outstanding CERCLA *106(a) cleanup orders where the recipients of the orders have not yet
completed the ordered response actions. Each such recipient could potentially file a claim with EPA for
reimbursements under CERCLA •106(b) of its costs of responding to the order once it has completed the ordered
actions.
EPA is responsible to indemnify response action contractors (CERCLA *119) for legal costs that will eventually
exceed, or have exceeded, the deductible specified in the current indemnification agreements. Such payments by the
United States would be recoverable government response costs. EPA has only one claim, which is considered
remote.
EPA contractors have submitted response action contractor claims. No claims were material.
All Other
There were no material litigation, asserted or unasserted claims or assessments involving all other appropriated funds
of the Agency.
Judgement Fund
In cases that are paid by the U.S. Treasury Judgement Fund, the Agency must recognize the full cost of a claim
regardless of who is actually paying the claim. Until these claims are settled or a court judgement is assessed and the
Judgement Fund is determined to be the appropriate source for the payment, claims that are probable and estimable
must be recognized as an expense and liability of the agency. For these cases, at the time of settlement or judgement,
the liability will be reduced and an imputed financing source recognized. See Interpretation of Federal Financial
Accounting Standards No. 2, Accounting for Treasury Judgement Fund Transactions.
As of September 30, 2000, $5 million of Superfund related claims and $2.9 million of All Other funds' claims were
accrued as contingent liabilities under these criteria.
In addition, EPA is party to certain pending litigation upon which EPA believes it has a reasonable legal position.
$336.1 million of Judgement Fund claims in addition to the above accrued amounts are pending.
In the opinion of EPA's management and General Counsel, the ultimate resolution of any legal actions still pending
will not materially affect EPA's operations or financial position.
EPA's FY 2000 Annual Financial Statements IV-43
-------
Note 19. Grant Accrual
The EPA has revised the methodology for calculating the accrued grant expense for the fiscal year 2000 financial
statements. The methodology uses a model based upon historical grant obligations and the related payment incurred
the succeeding years. The model calculates a "what should be disbursed amount" vs. the actual disbursements made
in the year. The accrual amount is derived from the results of this model combined with an additive factor which
considers the ratio of accruals to disbursements for the last two fiscal years. The accrual for Superfund is $43.0
million and the All Other grant accrual is $507.6 million. In the Statement of Net Cost by Goal, the grant accrual
amounts are included in "Not Assigned to Goals."
Note 20. Environmental Cleanup Costs
EPA has four sites that require clean up stemming from its activities. Three of these sites will be paid from the
Treasury Judgement fund amounting to $32 thousand. EPA estimates that clean up on the remaining site will be
approximately $10 thousand. EPA also holds title to a site in Edison, New Jersey, which was formerly an Army
Depot. While EPA did not cause the contamination, the Agency could potentially be liable for a portion of the
cleanup costs. However, it is expected that the Department of Defense and the General Services Administration will
bear all or most of the cost of remediation.
Accrued Cleanup Cost
EPA has fourteen sites that will require future clean up associated with permanent closure. The estimated cost will be
approximately $15.5 million. Since the cleanup costs associated with permanent closure are not primarily recovered
through user fees, EPA has elected to recognize the estimated total cleanup cost as a liability upon implementation
and record changes to the estimate in subsequent years. The FY 2000 estimate for unfunded cleanup costs decreased
by $128 thousand from the FY 1999 estimate. There was an increase of approximately $1.3 million for funded
cleanup costs for FY 2000. EPA also could be potentially liable for cleanup costs at a GSA-leased site; however, the
amounts are not known. Of the $15.5 million in estimated cleanup costs, approximately $10.9 million represents the
estimated expense to close the current RTP research facility. These costs will be incurred within the next three years.
The remaining amount represents the future decontamination and decommissioning costs of EPA's other research
facilities.
Note 21. Superfund State Credits
Authorizing statutory language for Superfund and related Federal regulations require States to enter into Superfund
State Contracts (SSCs) when EPA assumes the lead for a remedial action in their State. The SSC defines the State's
role in the remedial action and obtains the State's assurance that they will share in the cost of the remedial action.
Under Superfund's authorizing statutory language, States will provide EPA with a ten percent cost share for remedial
action costs incurred at privately owned or operated sites, and at least fifty percent of all response activities (i.e.,
removal, remedial planning, remedial action, and enforcement) at publicly operated sites. In some cases, States may
use EPA approved credits to reduce all or part of their cost share requirement that would otherwise be borne by the
States. Credit is limited to State site-specific expenses EPA has determined to be reasonable, documented, direct out-
of-pocket expenditures of non-Federal funds for remedial action. Once EPA has reviewed and approved a State's
claim for credit, the State must first apply the credit at the site where it was earned. The State may apply any
excess/remaining credit to another site when approved by EPA. As of September 30, 2000, total remaining State
credits have been estimated at $12.6 million.
Note 22. Superfund Preauthorized Mixed Funding Agreements
Under Superfund preauthorized mixed funding agreements, potentially responsible parties (PRPs) agree to perform
response actions at their sites with the understanding that EPA will reimburse the PRPs a certain percentage of their
total response action costs. EPA's authority to enter into mixed funding agreements is provided under Section
111 (a) (2) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980.
Under Section 122(b)(l) of CERCLA, as amended by the Superfund Amendments and Reauthorization Act (SARA)
IV-44 EPA's FY 2000 Annual Report
-------
of 1986, a PRP may assert a claim against the Superfund Trust Fund for a portion of the costs they incurred while
conducting a preauthorized response action agreed to under a mixed funding agreement. As of September 30, 2000,
EPA had 12 outstanding preauthorized mixed funding agreements with obligations totaling $40.2 million. A liability
is not recognized for these amounts until all work has been performed by the PRP and has been approved by EPA
for payment. Further, EPA will not disburse any funds under these agreements until the PRP's application, claim,
and claims adjustment processes have been reviewed and approved by EPA.
Note 23. Income and Expenses from other Appropria tions
The Statement of Net Cost reports program costs that include the full costs of the program outputs and consist of
the direct costs and all other costs that can be directly traced, assigned on a cause and effect basis, or reasonably
allocated to program outputs.
During Fiscal Year 2000, EPA had three appropriations which funded a variety of programmatic and non-
programmatic activities across the Agency, subject to statutory requirements. The Environmental Programs and
Management (EPM) appropriation was created to fund personnel compensation and benefits, travel, procurement,
and contract activities. Two prior year appropriations, Program and Research Operations (PRO) and Abatement
Control and Compliance (AC&C) generated expenses. PRO funded travel, personnel compensation and benefits.
AC&C funded procurement and contract activities.
All of the expenses from EPM, PRO and AC&C were distributed among EPA's two Reporting Entities: Superfund
and All Others. This distribution is calculated using a combination of specific identification of expenses to Reporting
Entities, and a weighted average that distributes expenses proportionately to total programmatic expenses.
As illustrated below, this estimate does not impact the net effect of the Statement of Net Costs.
Income From Expenses From
Other Appropriations Other Appropriations Net Effect
Superfund $ 31,270 $ (31,270) $ 0
All Others (31,270) 31,270 0
Total $ 0 $ 0 $ 0
Note 24. Custodial Non-Exchange Revenues
EPA uses the accrual basis of accounting for the collection of fines, penalties and miscellaneous receipts.
Collectibility by EPA of the fines and penalties is based on the responsible parties' willingness and ability to pay.
Fines, Penalties and Other Misc Revenue (EPA) $ 86,590
Accounts Receivable for Fines, Penalties and
Other Miscellaneous Receipts
Accounts Receivable $ 154,803
Less: Allowance for Doubtful Accounts 52,336
Total $ 102.467
Note 25. Statement of Budgetary Resources
A reconciliation of budgetary resources, obligations incurred, and outlays, as presented in the audited Statement of
Budgetary Resources, to amounts included in the Budget of the United States Government for the year ended
September 30, 2000, is as follows:
EPA's FY 2000 Annual Financial Statements IV-45
-------
Resources
2,151,875
(328)
2,151,547
8,932,823
(24,778)
66,618
8,974,663
Incurred
$ 1,701,337 1
(1,744)
$ 1,699,593 1
$ 7,158,665 1
(23,835)
67,907
$ 7,202,737 1
Outlays
; 1,526,587
1,000
; 1,527,587
; 6,602,265
(24,545)
57
; 6,577,777
Budgetary Obligations
Superfund
Statement of Budgetary Resources f
Adjustments to Unliquidated Obligations,
Unfilled Customer Orders and Other
Budget of the United States Government f
All Other
Statement of Budgetary Resources f
Less: Funds Reported by Other Federal
Entities
Adjustments to Unliquidated Obligations,
Unfilled Customer Orders and Other
Budget of the United States Government f
Note 26. Adjustments
For the Superfund Trust Fund this amount represents recoveries of prior year obligations of $201,660 thousand less
$2,288 thousand in canceled authority. For All Others, this amount represents recoveries of prior year obligations of
$111,767 thousand and $615 thousand of other adjustments to beginning unobligated balances, less rescinded
authority of $28,848 thousand, and $55,687 thousand in canceled authority.
Note 27. Unobligated Balances Available
The Superfund Trust Fund has an unobligated balance of $449,538 thousand in unexpired authority and $1 million in
expired authority. All Others has an unobligated balance of $1,644,998 thousand in unexpired authority and $129,160
thousand in expired authority. The unexpired authority is available to be apportioned by the Office of Management
and Budget for new obligations at the beginning of FY 2001. Expired authority is available for upward adjustments
of obligations incurred as of the end of the fiscal year.
Note 28. Obliga ted Balance, Net - End of Period
Undelivered Orders, unpaid, at the end of the period are $2,091,767 thousand for the Superfund Trust Fund and
$8,657,913 thousand for All Others.
Note 29. Difference in Outlays Between Statement ofBudgetary Resources and SF-133
Outlays between the Statement ofBudgetary Resources and the SF-133 differ by $1 million for Superfund, due to an
advance that was refunded and reported on the SF-133 last year but not recorded and reported on the Statement of
Budgetary Resources until this year.
Note 30. Sta temen t of Financing
Increases in Unfunded Liabilities relate to changes in unfunded annual leave, environmental liabilities, contingent
liabilities and the Federal Employees Compensation Act (FECA) special benefit fund. For Superfund and All Others,
the changes totaled $7.0 million and $12.3 million, respectively and are reflected in Financing Sources Yet to Be
Provided.
IV-46 EPA's FY 2000 Annual Report
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Note 31. Beginning Unobligated Balances -All Other Statement of Budgetary Resources
All Others in the Statement of Budgetary Resource contained some previously canceled funds in the beginning
unobligated balance brought forward from FY 1999. The amounts from canceled funds were approximately $16.2
million. These balances have been eliminated this year in the Adjustments on the Statement of Budgetary Resources.
Note 32. Change in Accounting for Trust Funds
During FY 2000, in compliance with Statement of Federal Financial Accounting Standard No. 7 (Accounting for
Revenue and Other Financing Sources), the U. S. Standard General Ledger Board issued definitive guidance for trust
fund accounting and added new Standard General Ledger accounts to further distinguish trust fund transactions from
other funds. The EPA implemented these changes for all trust funds. These changes eliminate the use of
Unexpended Appropriations and Appropriations Used for trust funds, and indicate the inclusion of only the
Cumulative Results of Operations account in Net Position for trust funds.
The changes affect transactions in this manner: In lieu of increases to Unexpended Appropriations, amounts
appropriated or transferred to the trust funds are recorded in new accounts as Trust Fund Financing Sources-
Transfers In. Amounts transferred out no longer decrease Unexpended Appropriations, but are recorded in new
accounts as Trust Fund Financing Sources -Transfers Out. These new accounts are reported on the Statement of
Changes in Net Position as Other Financing Sources, and are closed out at year end to Cumulative Results of
Operations. Expenditures from trust funds are still reported as expenses or purchases of capital assets and reflected
in budgetary expenditures, but are no longer reported as increases to Appropriations Used and decreases to
Unexpended Appropriations.
The cumulative effect of these changes on the accounts was to move all prior year's balances in Unexpended
Appropriations for trust funds into Cumulative Results of Operations. This cumulative effect is reported on a
separate line on the Statement of Changes in Net Position this fiscal year. The decreases to Unexpended
Appropriations for trust funds are detailed below:
Superfund All Other
Hazardous Substance Superfund No-Year Trust Fund $ 2,607,783 $ 0
Superfund Annual Funds 49,048 0
Leaking Underground Storage Tank Trust Fund 0 81,830
Oil Spill Response Trust Fund 0 9,690
Miscellaneous Contributed Funds Trust Fund 0 76
Totals $2.656.831 $91.596
Note 33. Costs Not Assigned to Goals
On the Statement of Net Cost by Goal, $145.5 million in gross costs were not assigned to goals. This amount was
comprised of a $106.4 million increase to the year-end grant accruals, $15.2 million in unfunded expenses, $19.9
million in depreciation expenses that were not assigned, $3.0 million in bad debt expense, and $1 million in miscellaneous
expenses.
Note 34. Trans&rs-in and out, Statement of Changes in Net Position
The consolidated amounts shown as transfers-in on the Statement of Changes in Net Position are comprised of
transfers from other Federal agencies in accordance with applicable legislation. The consolidated amounts shown as
transfers-out are nonexpenditure transfers to other Hazardous Substance Superfund allocation agency funds, such as
HHS and Labor.
EPA's FY 2000 Annual Financial Statements IV-47
-------
Note 35. Imputed Financing
In accordance with Statement of Federal Financial Accounting Standard No. 5 (Liabilities of the Federal
Government), Federal agencies must recognize the portion of employees' pensions and other retirement benefits to
be paid by the Office of Personnel Management (OPM) trust funds. Theses amounts are recorded as imputed costs
and imputed financing for the agency. Each year the OPM provides federal agencies with cost factors to calculate
these imputed costs and financing that apply to the current year. These cost factors are multiplied by the current
year's salaries or number of employees, as applicable, to provide an estimate of the imputed financing that the OPM
trust funds will provide for each agency.
Note 36. Change in Accounting for Cashout Interest, Superfund
Per an agreement dated October 3,1996 between the Office of Management and Budget (OMB) and the EPA, the
EPA is allowed additional budget authority for interest earnings on Cashout (Special Account) collections for
Superfund. The authority for interest earnings had previously been classified as Cashout Advances and Deferrals,
Superfund, on the Consolidating Balance Sheet and as Spending Authority from Offsetting Collections on the
Combined Statement of Budgetary Resources . In FY 2000, the beginning balance for interest earnings on Special
Accounts was reclassified from Cashout Advances and Deferrals, Superfund to Net Position on the Consolidating
Balance Sheet for Superfund. The change is consistent with guidance from OMB to treat the interest as permanently
appropriated and is consistent with definitive guidance for trust fund accounting issued by the U. S. Standard
General Ledger Board. This change is also in compliance with Statement of Federal Financial Accounting Standard
No. 7 (Accounting for Revenue and Other Financing Sources).
For FY 2000, interest earnings that became available during the fiscal year are recorded in Trust Fund Financing
Sources - Transfers In for EPA, and are then eliminated against Treasury's Transfers-Out in the consolidation of the
Treasury and EPA funds. The current year's earnings are included as Budget Authority on the Combined Statement
of Budgetary Resources for Superfund.
The amount available as of September 30, 2000 for Cashout Interest authority is as follows:
Superfund
Cashout Interest reclassified from Cashout Advances and
Deferrals, Superfund, October 1,1999 $ 85,382
Cashout Interest Authority Accrued FY 2000 21,670
Less: FY 2000 Drawdown of Authority (780)
Total $ 106,272
IV-48 EPA's FY 2000 Annual Report
-------
Environmental Protection Agency
Required Supplemental Information
As of September 30, 2000
(Dollars in Thousands)
(Unaudited)
Deferred Maintenance
The EPA classifies property, plant, and equipment as follows: 1) EPA-Held Equipment, 2) Contractor-Held
Equipment, 3) Land and Buildings, and, 4) Capital Leases. The condition assessment survey method of measuring
deferred maintenance is utilized. The Agency adopts requirements or standards for acceptable operating condition in
conformance with industry practices. No deferred maintenance was reported for any of the four categories.
Intra.governmental Assets
Intragovernmental amounts represent transactions between all federal departments and agencies and are reported by
trading partner (entities that EPA did business with during FY 2000).
EPA confirmed its investment balances with the Bureau of the Public Debt, the Department of the Treasury. In
addition, EPA sent out requests to trading partners to reconcile and confirm intragovernmental receivables and
advances. Data was received from the Department of Defense, Department of Energy, and Tennessee Valley
Authority. (The Department of Defense includes the Navy, Army, and Air Force.) The U.S. Army Corps of
Engineers was not able to give us detailed data to be able to reconcile asset balances.
Trading Investments AccountsReceivable Other
Partner
Code Agency Superfund All Other Superfund All Other Superfund All Other
04 Government Printing Office $ 0$ 0$ 0$ 43$ 65$ 7,409
12 Department of Agriculture 355 146
13 Department of Commerce 48
14 Department of Interior 13,521
15 Department of Justice 80
17 Department of the Navy 248
18 U. S. Postal Service 43
19 Department of State 70
20 Department of the Treasury 3,960,313 1,593,357 222
21 Department of the Army 7,798
31 US Nuclear Regulatory
Commission 20
47 General Services
Administration 12
57 Department of the Air
Force 223
58 Federal Emergency
Management Agency 1,205
61 Consumer Product Safety
Commission 8
64 Tennessee Valley Authority 607
EPA's FY 2000 Annual Financial Statements IV-49
-------
Trading Investments AccountsReceivable Other
Partner
Code Agency Superfund All Other Superfund All Other Superfund All Other
68 EPA (between Superfund
and All Other) 4^91 6,510
69 Department of
Transportation 10 378
75 Department of Health and
Human Services 415
86 Department of Housing and
Urban Development 943
93 Federal Mediation and
Conciliation Service
96 US Army Corps of Engineer 1,022 15,850
97 US Department of Defense 10,769
00 Unassigned Q Q 8.136
Total 13.960.313 11.593.357
Intragovernmental Liabilities
EPA received a few requests for intragovernmental liabilities reconciliation from trading partners. EPA was able to
confirm balances with the National Science Foundation (49), the Office of Personnel Management (24), the
Department of the Treasury (20), and the Department of Labor (16). However, some agencies' requests did not
have the data (such as interagency agreement numbers) that EPA needed to do the research.
Trading Accounts Payable Accrued Liabilities Other Liabilities
Partner
Code Agency Superfund All Other Superfund All Other Superfund All Other
03 Library of Congress $ 0$ 0$ 11 $181$ 0$ 0
04 Government Printing Office 4 16 61 988
11 Executive Office of the
President 40
12 Department of Agriculture 39 876 711 1,615
13 Department of Commerce 1,021 393 2,286 152
14 Department of Interior 901 3,440 2,711 36
15 Department of Justice 617 5,896 186 578
16 Department of Labor 2,258 73 24 1,355 6,064
17 Department of the Navy 355
18 United States Postal Service 9
19 Department of State 5 1,152
20 Department of the Treasury 13 3,014 742 2,945
21 Department of the Army 2 503
24 Office of Personnel
Management 55 488 1,865 8,162
31 US Nuclear Regulatory
Commission 19 20
33 Smithsonian Institution 33
IV-50 EPA's FY 2000 Annual Report
-------
Trading Accounts Payable Accrued Liabilities Other Liabilities
Partner
Code Agency Superfund All Other Superfund All Other Superfund All Other
47 General Services
Administration 4,618 23,935
49 National Science Foundation 10 234
56 Central Intelligence Agency 37
57 Department of the Air
Force 1;256
58 Federal Emergency
Management Agency 15,395 6
59 National Foundation on the
Arts and the Humanities 5
63 National Labor Relations
Board \
64 Tennessee Valley Authority 1 112 50
68 EPA (between Superfund
and All Others) 4,191 6,510
69 Department of
Transportation 1,558 364
72 Agency for International
Development
73 Small Business
Administration 34
75 Department of Health and
Human Services 51,841 8,791 6,440
80 National Aeronautics and
Space Administration 231
86 Department of Housing and
Urban Development 2 922
88 National Archives &
Records Administration \
89 Department of Energy 490 4,032 14
91 Department of Education 3
95 Independent Agencies 28 11
96 US Army Corps of
Engineers 1;202 694 21,357 1,136 314
97 Office of the Secretary of
Defense 339 149
00 Unassigned 1.889 656
For other intragovernmental liabilities, $37,922 thousand in Debt and $102,469 thousand in Custodial Liability is
assigned to the Department of the Treasury (trading partner Code 20).
EPA's FY 2000 Annual Financial Statements IV-51
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Intragovernmental Revenues and Costs
EPA's intragovernmental earned revenues are not reported by trading partners because they are below OMB's
threshold of $500 million.
Superfund All Others
Intragovernmental Earned Revenue ($2,249) $63,240
Associated Costs to generate Above Revenue
(Budget Functional Classification 300) (2,249) 63,240
IV-52 EPA's FY 2000 Annual Report
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Environmental Protection Agency
Required Supplemental Information
Supplemental Statement of Budgetary Resources
As of September 30, 2000
(Dollars in Thousands)
Unaudited
Environmental Miscellaneous Consolidated
Programs & Science & LUST All All
STAG Management Technology FIFRA Trust Fund Others Others
Budgetary Resources:
Budget Authority
Unobligated Balances - Beginning of
the Period
Net Transfers, Prior Year Balance
Spending Authority from Offsetting
Collections
Adjustments
Total Budgetary Resources
3,469,250 $ 1,899,021 $ 647,500 $ 0 $ 70,000
834,235 $ 6,920,006
1,265,880
0
13,489
52,088
219,803
0
48,345
(1,730)
159,175
0
45,490
(4,434)
11,552
0
18,593
(2,228)
3,570
0
42
1,472
14,695
(977)
185,313
(17,321)
1,674,675
(977)
311,272
27,847
; 4.800.707
2.165.439 $ 847.731 $ 27.917
75.084
1.015.945
Status of Budgetary Resources:
Obligations Incurred
Unobligated Balances - Available
Unobligated Balances-Not Available
Total Status of Budgetary Resources
Outlays:
Obligations Incurred
Less: Spending Authority from
Offsetting Collections and
Obligated Balance, Net - Beginning
of the Period
Less: Obligated Balance, Net - End
of the Period
Total Outlays
3,582,074
1,218,633
0
4,800,707
3,582,074
86,462
7,570,173
7,874,156
3,191,629
$ 1,894,522
171,276
99,641
$ 2,165,439
$ 1,894,522
75,206
796,486
750,109
$ 1,865,693
$ 667,581
154,864
25,286
$ 847,731
$ 667,581
49,444
511,949
500,950
$ 629,136
$ 23,321 5
4,596
0
$ 27,917 3
$ 23,321 5
16,366
(926)
1,544
$ 4,485 3
f 70,753
4,245
86
f 75,084
f 70,753
2,108
79,306
83,976
f 63,975
$ 920,414
91,384
4,147
$ 1,015,945
$ 920,414
190,603
196,245
78,709
$ 847,347
$ 7,158,665
1,644,998
129,160
$ 8,932,823
$ 7,158,665
420,189
9,153,233
9,289,444
$ 6,602,265
EPA's FY 2000 Annual Financial Statements IV-53
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Environmental Protection Agency
Required Supplemental Information
Working Capital Fund
Supplemental Balance Sheet
As of September 30, 2000
(Dollars in Thousands)
ASSETS Unaudited
Intragovernmental:
Fund Balance With Treasury $ 52,509
Accounts Receivable, Net 28,702
Other 47
Total Intragovernmental 81,258
Inventory and Related Property, Net 46
General Property, Plant and Equipment, Net 9,646
Other 1
Total Assets $ 90,951
LIABILITIES
Intragovernmental:
Other $ 47,555
Total Intragovernmental 47,555
Accounts Payable 2,578
Other 19,034
Total Liabilities 69,167
NET POSITION
Cumulative Results of Operations 21,784
Total Net Position 21,784
Total Liabilities and Net Position $ 90,951
IV-54 EPA's FY 2000 Annual Report
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Environmental Protection Agency
Required Supplemental Information
Working Capital Fund
Supplemental Statement of Net Cost
For the Year Ended September 30, 2000
(Dollars in Thousands)
Unaudited
COSTS:
Intragovernmental $ 8,154
With the Public 114,718
Total Costs 122,872
Less:
Earned Revenues (117,079)
Net Cost of Operations $ 5,793
EPA's FY 2000 Annual Financial Statements IV-55
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Environmental Protection Agency
Required Supplemental Information
Working Capital Fund
Supplemental Statement of Changes in Net Position
For the Year Ended September 30, 2000
(Dollars in Thousands)
Unaudited
Net Cost of Operations $ 5,793
Financing Sources (Other Than Exchange Revenues):
Imputed Financing 5,397
Transfers-In 439
Transfers-Out (439)
Net Results of Operations (396)
Prior-Period Adjustments (8,961)
Net Change in Cumulative Results of Operations (9,357)
Net Position - Beginning of the Period 31,141
Net Position - End of the Period $ 21,784
IV-56 EPA's FY 2000 Annual Report
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Environmental Protection Agency
Required Supplemental Information
Working Capital Fund
Supplemental Statement of Budgetary Resources
For the Year Ended September 30, 2000
(Dollars in Thousands)
Budgetary Resources Unaudited
Unobligated Balances, Beginning of the Period $ 6,941
Spending Authority from Offsetting Collections 136,065
Total Budgetary Resources $ 143,006
Status of Budgetary Resources
Obligations Incurred $ 121,186
Unobligated Balances Available 21,820
Total, Status of Budgetary Resources $ 143,006
Outlays
Obligations Incurred $ 121,186
Less: Spending Authority from Offsetting Collections and
Adjustments (136,065)
Subtotal (14,879)
Obligated Balance, Net - Beginning of the Period 30,124
Less: Obligated Balance, Net - End of the Period (30,688)
Total Outlays $ (15.443)
EPA's FY 2000 Annual Financial Statements IV-57
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Environmental Protection Agency
Required Supplemental Information
Working Capital Fund
Supplemental Statement of Financing
For the Year Ended September 30, 2000
(Dollars in Thousands)
Obligations and Nonbudgetary Resources Unaudited
Obligations Incurred $ 121,186
Less: Spending Authority for Offsetting Collections and Adjustments
Earned Reimbursements
Collected (116,923)
Receivable from Federal Sources (236)
Change in Unfilled Orders - (Decreases)/Increases (18,906)
Financing Imputed for Cost Subsidies 5,397
Exchange Revenue not in the Entity's Budget 66
Total Obligations as Adjusted and Nonbudgetary Resources (9,416)
Resources that Do Not Fund Net Cost of Operations
Change in Amount of Goods, Services and Benefits Ordered but
Yet Received or Provided - (Increases)/Decreases (2,488)
Change in Unfilled Customers Orders, etc. - Increases/(Decreases) 18,907
Costs Capitalized on the Balance Sheet
General Plant, Property and Equipment (9,102)
Purchases of Inventory (93)
Prior Period Adjustments of Capitalized Assets 3,127
Total Resources that Do Not Fund Net Costs of Operations 10,351
Components of Costs of Operations that Do Not Require
or Generate Resources
Depreciation and Amortization 4,767
Total Costs That Do Not Require Resources 4,767
Financing Sources Yet to be Provided 9_1
Net Costs of Operations $ 5,793
IV-58 EPA's FY 2000 Annual Report
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Environmental Protection Agency
Required Supplemental Stewardship Information
For the Year Ended September 30, 2000
(Dollars in Thousands)
INVESTMENT IN THE NA TION'S RESEAR CH AND DEVELOPMENT:
Public and private sector institutions have long been significant contributors to our nation's environment and human
health research agenda. EPA's Office of Research and Development, however, is unique among scientific institutions
in this country in combining research, analysis, and the integration of scientific information across the full spectrum
of health and ecological issues and across both risk assessment and risk management. Science enables us to identify
the most important sources of risk to human health and the environment, and by so doing, informs our priority-
setting, ensures credibility for our policies, and guides our deployment of resources. It gives us the understanding and
technologies we need to detect, abate, and avoid environmental problems. Science provides the crucial underpinning
for EPA decisions and challenges us to apply the best available science and technical analysis to our environmental
problems and to practice more integrated, more efficient, and more effective approaches to reducing environmental
risks.
Among the Agency's highest research priorities is a program to expand the understanding of near- and long-term
effects of the environment on children. Another priority is the Particulate Matter (PA/I) research program, which
focuses on review, implementation, and eventual attainment of the National Ambient Air Quality Standards
(NAAQS). For FY 2000, the full cost of the Agency's Research and Development activities totaled almost $601
million. Below is a breakout of the expenses (dollars in thousands):
FY 1998 FY1999 FY 2000
Programmatic Expenses 507,828 543,777 541,117
Allocated Expenses 53,322 58,728 59,523
INVESTMENT IN THE NATION'S INFRASTR UCTURE:
The Agency makes significant investments in the Nations's drinking water and clean water infrastructure. The
investments are the result of three programs: The Construction Grant Program which is being phased out, and two
State Revolving Fund (SRF) programs.
Construction Grants Program: During the 1970s and 1980s, the Construction Grants Program was a source of
Federal funds, providing more than $60 billion of direct grants for the construction of public wastewater treatment
projects. These projects, which constituted a significant contribution to the nation's water infrastructure, included
sewage treatment plants, pumping stations, and collection and intercept sewers, rehabilitation of sewer systems, and
the control of combined sewer overflows. The construction grants led to the improvement of water quality in
thousands of municipalities nationwide.
Congress set 1990 as the last year that funds would be appropriated for Construction Grants. Projects funded in
1990 and prior will continue until completion. Beyond 1990, EPA shifted the focus of municipal financial assistance
from grants to loans that are provided by State Revolving Funds.
State Revolving Funds: The Environmental Protection Agency provides capital, in the form of capitalization grants,
to state revolving funds which state governments use to make loans to individuals, businesses, and governmental
entities for the construction of wastewater and drinking water treatment infrastructure. When the loans are repaid to
the state revolving fund, the collections are used to finance new loans for new construction projects. The capital is
reused by the states and is not returned to the Federal Government.
EPA's FY 2000 Annual Financial Statements IV-59
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The Agency is also appropriated funds to finance the construction of infrastructure outside the Revolving Funds.
These are reported below as Other Infrastructure Grants.
The Agency's expenses related to investments in the Nation's Water Infrastructure are outlined below (dollars in
thousands):
FY1998 FY 1999 FY 2000
Construction Grants 444,817 414,528 55,766
Clean Water SRF 1,109,017 925,744 1,564,894
Safe Drinking Water SRF 94,936 387,429 588,116
Other Infrastructure Grants 138,363 245,606 212,124
Allocated Expenses 187,649 213,117 266,299
STEWARDSHIP LAND
The Agency acquires title to certain land and land rights under the authorities provided in Section 104 (J) CERCLA
related to remedial clean-up sites. The land rights are in the form of easements to allow access to clean-up sites or to
restrict usage of remediated sites. In some instances, the Agency takes title to the land during remediation and returns
it to private ownership upon the completion of clean-up.
As of September 30, 2000, the Agency possesses the following land and land rights:
Superfund Sites with Easements
Beginning Balance 24
Additions 1
Withdrawals 0
Ending Balance 25
Superfund Sites with Land acquired
Beginning Balance 20
Additions 3
Withdrawals 0
Ending Balance 23
HUMAN CAPITAL
Agencies are required to report expenses incurred to train the public with the intent of increasing or maintaining the
nation's economic productive capacity. Training, public awareness, and research fellowships are components of many
of the Agency's programs, and are effective in achieving the Agency's mission of protecting public health and the
environment, but the focus is on enhancing the nation's environmental, not economic, capacity.
The Agency's expenses related to investments in the Human Capital are outlined below (dollars in thousands):
FY1998 FY 1999 FY 2000
Training and Awareness Grants 39,131 46,630 49,265
Fellowships 11,084 10,239 9,570
Allocated Expenses 5,273 6,142 6,472
IV-60 EPA's FY 2000 Annual Report
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EPA's FY 2000 Annual Financial Statements IV-61
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The Agency's FY 2000 Annual Report includes a
summary of the Office of Inspector General
Audit Report on EPA's Fiscal 2000 Financial
Statements (2001-1-00107). For a complete copy
of the report, please contact:
U.S. Environmental Protection Agency
Office of Inspector General
Financial Audit Division (2422)
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460
Telephone: 202-260-1397
Facimile: 202-260-1398
Electronic version of complete audit report
available at: http://www.epa.gov/oigearth
Audit Report 2001-1-00107
IV-62 EPA's FY 2000 Annual Financial Statements
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Inspector General's Report on EPA's
Fiscal 2000 Financial Statements
The Administrator
U.S. Environmental Protection Agency
We have audited the consolidating balance sheet of the U.S. Environmental Protection Agency and its
subsidiary funds, the Superfund Trust Fund (Superfund) and All Other Appropriated Funds (All Other)
as of September 30, 2000, and the related consolidating statements of net cost and changes in net
position, consolidated statement of net cost by goal, combined statement of budgetary resources,
combined statement of financing, and consolidated statement of custodial activity for the year then
ended. These financial statements are the responsibility of EPA's management. Our responsibility is to
express an opinion on these financial statements based upon our audit.
We conducted our audit in accordance with generally accepted auditing standards; the standards
applicable to financial statements contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Office of Management and Budget Bulletin 01-02, Audit
Requirements for Federal Financial Statements. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
The financial statements include expense of grantees, contractors and other Federal agencies. Our audit
work pertaining to these expenses included testing only within EPA. Audits of grants, contracts and
interagency agreements performed at a later date may disclose questioned costs of an undeterminable
amount at this time. In addition, the United States Treasury collects and accounts for excise taxes that
are deposited into the Superfund and Leaking Underground Storage Tank Trust Funds.1 The United
States Treasury is also responsible for investing amounts not needed for current disbursements and
transferring funds to EPA as authorized in legislation. Since the United States Treasury, and not EPA, is
responsible for these activities, our audit work did not cover these activities.
The Office of Inspector General (OIG) is not independent with respect to amounts pertaining to its
operations that are presented in the financial statements. The amounts included for the OIG are not
material to EPA's financial statements. The OIG is organizationally independent with respect to all
other assets of the Agency's activities.
In our opinion, the consolidating financial statements present fairly the consolidated and individual
assets, liabilities, net position, net cost, net cost by goal, changes in net position, budgetary resources,
reconciliation of net cost to budgetary obligations, and custodial activity of the U.S. Environmental
l The Leaking Underground Storage Tank Trust Fund is included in the All Other Appropriated Funds column of
the financial statements.
Audit Report 2001-1-00107
EPA's FY 2000 Annual Financial Statements IV-63
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Protection Agency and its subsidiary funds, the Superfund Trust Fund and All Other Appropriated
Funds, as of and for the year ended September 30, 2000, in accordance with generally accepted
accounting principles.
Review of EPA's Required Supplemental Stewardship Information, Required
Supplemental Information, and Management Discussion and Analysis
We inquired of EPA's management as to their methods of preparing its RSSI, Required Supplemental
Information, and Management Discussion and Analysis, and reviewed this information for consistency
with the financial statements. However, our audit was not designed to express an opinion, and
accordingly, we do not express an opinion.
We did not identify any material inconsistencies between the information presented in EPA's financial
statements and the information presented in EPA's RSSI, Required Supplemental Information, and
Management Discussion and Analysis. The January 7, 2000, technical amendments to OMB Bulletin
No. 97-01, Form and Content of Agency Financial Statements, require agencies to report, as Required
Supplemental Information, their intra-governmental assets and liabilities by federal trading partner. We
did find that, through no fault of EPA, other Federal agencies were unable to reconcile EPA's reported
transactions with their records. Attachment 2 of the OIG's complete audit report on EPA's FY 2000
financial statements provides additional details on this issue.
Evaluation of Internal Controls
As defined by OMB, internal control, as it relates to the financial statements, is a process, effected by the
Agency's management and other personnel, designed to provide reasonable assurance that the following
objectives are met:
Reliability of financial reporting - Transactions are properly recorded, processed, and
summarized to permit the timely and reliable preparation of the financial statements and RSSI in
accordance with generally accepted accounting principles; and assets are safeguarded against loss
from unauthorized acquisition, use, or disposition.
Reliability of performance reporting - Transactions and other data that support reported
performance measures are properly recorded, processed, and summarized to permit the
preparation of performance information in accordance with criteria stated by management.
Compliance with applicable laws and regulations - Transactions are executed in accordance
with laws governing the use of budget authority and other laws and regulations that could have a
direct and material effect on the financial statements or RSSI; and any other laws, regulations,
and government-wide policies identified by OMB.
In planning and performing our audit, we considered EPA's internal controls over financial reporting by
obtaining an understanding of the Agency's internal controls, determined whether internal controls had
been placed in operation, assessed control risk, and performed tests of controls in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial statements. We limited
Audit Report 2001-1-00107
IV-64 EPA's FY 2000 Annual Financial Statements
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our internal control testing to those controls necessary to achieve the objectives described in OMB
Bulletin No. 01-02, Audit Requirements for Federal Financial Statements, as supplemented by an OMB
memorandum dated January 4, 2001, Revised Implementation Guidance for the Federal Financial
Management Improvement Act. We did not test all internal controls relevant to operating objectives as
broadly defined by the Federal Managers' Financial Integrity Act of 1982, such as those controls relevant
to ensuring efficient operations. The objective of our audit was not to provide assurance on internal
controls, and accordingly, we do not express an opinion on internal controls.
Our consideration of the internal controls over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be reportable conditions. Under
standards issued by the American Institute of Certified Public Accountants, reportable conditions are
matters coming to our attention relating to significant deficiencies in the design or operation of the
internal control that, in our judgment, could adversely affect the Agency's ability to record, process,
summarize, and report financial data consistent with the assertions by management in the financial
statements. Material weaknesses are reportable conditions in which the design or operation of one or
more of the internal control components does not reduce to a relatively low level the risk that
misstatements in amounts that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. Because of inherent limitations in internal controls, misstatements, losses, or
noncompliance may nevertheless occur and not be detected. However, we noted certain matters
discussed below involving the internal control and its operation that we consider to be reportable
conditions. However, none of the reportable conditions is believed to be a material weakness.
In addition, we considered EPA's internal control over the RSSI by obtaining an understanding of the
Agency's internal controls, determined whether these internal controls had been placed in operation,
assessed control risk, and performed tests of controls as required by OMB Bulletin No. 01-02. Our
procedures were not designed to provide assurance on these internal controls, and accordingly, we do not
express an opinion on such controls.
Finally, with respect to internal control related to performance measures presented in EPA 's Fiscal Year
2000 Annual Report, Section 1, Overview and Analysis (which addresses requirements for a
Management's Discussion and Analysis), we obtained an understanding of the design of significant
internal controls relating to the existence and completeness assertions, as required by OMB Bulletin No.
01-02. Our procedures were not designed to provide assurance on internal control over reported
performance measures, and accordingly, we do not express an opinion on such controls.
Reportable Conditions
Reportable conditions are internal control weakness matters coming to the auditor's attention that, in the
auditor's judgment, should be communicated because they represent significant deficiencies in the design
or operation of internal control that could adversely affect the organization's ability to meet the OMB
objectives for financial reporting discussed above.
In evaluating the Agency's internal control structure, we identified seven reportable conditions in the
following areas:
Audit Report 2001-1-00107
EPA's FY 2000 Annual Financial Statements IV-65
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Process for Preparing Financial Statements
The Agency significantly improved the preparation process for its fiscal 2000 financial statements
compared to prior year submissions. However, the financial statement preparation process did not
provide the needed result, an unqualified audit opinion, without difficulty. Problems were encountered
by the Agency in fairly presenting grant accrual amounts. Additionally, some other material items were
identified by auditors and then jointly resolved so they would not affect the audit opinion.
Accounting for Capitalized Property
For a number of years, we have reported that EPA needs to make improvements in its accounting for
property. During fiscal 2000, although the Agency continued to take action to correct weaknesses in this
area, we determined that the Agency needs to continue its efforts to improve its accounting for property.
Specifically, we found that:
property was not timely or accurately entered in the Fixed Assets Subsystem (FAS);2
• there were weaknesses in the Agency's process for reconciling property information in
the Integrated Financial Management System (IFMS) with that in FAS;
• financial statement balances for contractor-held property were incorrect;
contractor-held property transferred was misclassified; and
• real property values were not accurately recorded.
EPA's Process for Reviewing Unliquidated Obligations
EPA did not timely identify and deobligate inactive unliquidated obligations during its annual review.
As a result of weaknesses in the review process, the Agency had to perform an additional "special
review" to obtain a more accurate accounting of its unliquidated obligations. This special review
identified $26.5 million of open unliquidated obligations that should have been deobligated by
September 30, 2000.
EPA's Interagency Agreement Invoice Approval Process
Some EPA project officers did not fulfill oversight duties related to reviewing and approving
Interagency Agreement (IAG) invoices. We noted deficiencies in this area in prior reports, and we
continue to find instances where project offices at EPA's Headquarters and Cincinnati Financial
Management Center (CFMC) did not timely approve IAG invoices because they did not receive the
supporting cost information from other Federal agencies to substantiate invoice amounts. Additionally,
CFMC continued to use the "first-in first-out" accounting basis (charging the first line of accounting) to
allocate costs charged on lAGs with multiple goals/subobjectives, which provides limited assurance that
costs were charged to the appropriate goals/subobjectives.
In late fiscal 1997, the Agency implemented FAS, the Agency's property accountability system, which is
integrated with IFMS, the Agency's accounting system.
Audit Report 2001-1-00107
IV-66 EPA's FY 2000 Annual Financial Statements
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Documentation and Approval of Journal Vouchers
Journal and standard vouchers prepared by the Financial Reports and Analysis Branch, OCFO, were not
always properly documented and approved. While most of the entries appear to be correct, we are
concerned about the vulnerability associated with executing transactions without proper supervisory
review and approval.
Timely Repayment of Asbestos Loan Debt to Treasury
The Las Vegas Financial Management Center (LVFMC) has not made timely repayments of the
Agency's asbestos loan debt to the Department of Treasury. EPA collects payments from loan recipient
schools each year but has not made regular repayments to Treasury. The balance, approximately $6.8
million, represents repayments of principal EPA has collected since fiscal 1997 but has yet to repay, less
the amounts paid to Treasury for annual interest.
Automated Application Processing Controls
We continue to be unable to assess the adequacy of the automated internal control structure as it relates
to automated input, processing, and output controls for IFMS. IFMS applications have a direct and
material impact on the Agency's financial statements. Therefore, an assessment of each application's
automated input, processing, and output controls, as well as compensating manual controls, is necessary
to determine the reliance we can place on the financial statements.
Attachment 1 of the OIG's complete audit report of EPA's FY 2000 financial statements describes each
of the above reportable conditions in more detail and provides our recommendations and Agency
comments on actions that should be taken to correct these conditions. We will also be reporting other
less significant matters involving the internal control structure and its operation in a separate
management letter.
Comparison of ERA'S FMFIA Report with Our Evaluation of Internal Controls
OMB Bulletin No. 01-02, Audit Requirements for Federal Financial Statements, requires us to compare
material weaknesses disclosed during the audit with those material weaknesses reported in the Agency's
Federal Managers' Financial Integrity Act (FMFIA or Integrity Act) report that relate to the financial
statements and identify material weaknesses disclosed by audit that were not reported in the Agency's
FMFIA report. This year, for the first time, EPA will report on Integrity Act decisions in EPA's Fiscal
Year 2000 Annual Report. For a discussion on Agency reported Integrity Act material weaknesses and
corrective action strategy, please refer to EPA's Fiscal Year 2000 Annual Report, Section III, FY 2000
Management Accomplishments and Challenges.
For reporting under FMFIA, material weaknesses are defined differently than they are defined for
financial statement audit purposes. OMB Circular A-123, Management Accountability and Control,
defines a material weakness as a deficiency that the Agency head determines to be significant enough to
be reported outside the Agency.
Audit Report 2001-1-00107
EPA's FY 2000 Annual Financial Statements IV-67
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For financial statement audit purposes, OMB defines material weaknesses in internal control as
reportable conditions in which the design or operation of the internal control does not reduce to a
relatively low level the risk that errors, fraud, or noncompliance in amounts that would be material in
relation to the financial statements or RSSI being audited, or material to a performance measure or
aggregation of related performance measures, may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. Our audit did not disclose any
material weakness that was not reported by the Agency as part of the Integrity Act process.
As a part of the fiscal 2000 Integrity Act process, the Agency reported the following material weaknesses
that relate to the Agency's financial statements:
Information System Security - The Office of Environmental Information (OEI) recognizes that
past improvements to its information security program have not resulted in a complete,
comprehensive information security program. Therefore, this office is expanding its existing
material and Agency weaknesses, Information Systems Security Plans and Cyber Security, to
address all security-related deficiencies. Corrective actions are expected to be completed in
fiscal 2002.
Construction Grants Close Out - In 1992, EPA designated this area as an Agency weakness,
and in 1996 reclassified it as a material weakness due to a concern that lack of Agency-wide
attention might result in the loss of resources to properly complete the program. Corrective
actions are expected to be completed in fiscal 2002.
Tests of Compliance with Laws and Regulations
EPA management is responsible for complying with laws and regulations applicable to the Agency. As
part of obtaining reasonable assurance about whether the Agency's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws and
regulations, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts, and certain other laws and regulations specified in OMB Bulletin No. 01-
02, Audit Requirements for Federal Financial Statements, as supplemented by an OMB Memorandum
dated January 4, 2001, Revised Implementation Guidance for the Federal Financial Management
Improvement Act. The OMB guidance requires that we evaluate compliance with Federal financial
management system requirements, including the requirements referred to in the FFMIA of 1996. We
limited our tests of compliance to these provisions and did not test compliance with all laws and
regulations applicable to EPA.
Providing an opinion on compliance with certain provisions of laws and regulations was not an objective
of our audit and, accordingly, we do not express such an opinion. There are a number of ongoing
investigations involving EPA's grantees and contractors that could reveal violations of laws and
regulations, but a determination about these cases has not been made.
None of the noncompliances discussed below would result in material misstatements to the audited
financial statements.
Audit Report 2001-1-00107
IV-68 EPA's FY 2000 Annual Financial Statements
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Federal Financial Management Improvement Act Noncompliance
Under FFMIA, we are required to report whether the Agency's financial management systems
substantially comply with the Federal financial management systems requirements, applicable Federal
accounting standards, and the United States Government Standard General Ledger at the transaction
level. OMB Bulletin No. 01-02, as supplemented by an OMB memorandum dated January 4, 2001,
Revised Implementation Guidance for the Federal Financial Management Improvement Act,
substantially changed the guidance for determining whether or not an Agency substantially complied
with the Federal financial management systems requirements, applicable Federal accounting standards,
and the United States Government Standard General Ledger at the transaction level. The document is
intended to focus Agency and auditor activities on the essential requirements of FFMIA. The document
lists the specific requirements of FFMIA, as well as factors to consider in reviewing systems and for
determining substantial compliance with FFMIA. It also provides guidance to Agency heads for
developing corrective action plans to bring an Agency into compliance with FFMIA. To meet the
FFMIA requirement, we performed tests of compliance with FFMIA section 803(a) requirements and
used the OMB guidance, revised on January 4, 2001, for determining substantial noncompliance with
FFMIA.
The results of our tests disclosed one instance where the Agency's financial management systems did not
substantially comply with the applicable Federal accounting standard. We identified a substantial
noncompliance with the SFFAS No. 4 accounting standard for managerial cost accounting. Attachment
2 of the OIG's complete audit report on EPA's FY 2000 financial statements provides a full description
of this issue.
In addition to the above instance of substantial noncompliance, we identified two other noncompliances
related to reconciliation of intra-governmental transactions and financial system security. However,
these noncompliances do not meet the definition of a substantial noncompliance as described in OMB
guidance.
Attachment 2 of the OIG's complete audit report on EPA's FY 2000 financial statements provides
additional details and provides our recommendations and Agency comments on actions that should be
taken on these matters.
Appropriation Law Noncompliance
Disbursements for Multiple Appropriation Grants. EPA is not complying with appropriation law
when making disbursements for grants funded with more than one appropriation. Disbursements for
these grants are made using the oldest available funding (appropriation) first which may or may not be
the appropriation that benefitted from the work performed. Thus, EPA is not complying with Title 31
U.S.C. 1301 which requires EPA to match disbursements to the benefitting appropriation. A January 13,
2000, Office of General Counsel decision concluded that making disbursements for multiple
appropriation grants using the oldest available funding first violates Title 31 U.S.C. 1301 and is an
inappropriate method of charging, except in limited situations. This issue was first reported in our fiscal
1994 audit. Attachment 3 of the OIG's complete audit report on EPA's FY 2000 financial statements
provides a description of the Agency's corrective action plans and milestones.
Audit Report 2001-1-00107
EPA's FY 2000 Annual Financial Statements IV-69
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Prior Audit Coverage
During previous financial or financial-related audits, weaknesses that impacted our audit objectives were
reported in the following areas:
The Agency's process for preparing financial statements, including the Statements of
Budgetary Resources, Financing, and Net Cost.
• Complying with FFMIA requirements.
• Reviewing unliquidated obligations.
Reporting intra-governmental assets and liabilities by Federal trading partner.
• Accounting for the cost to achieve goals and complying with SFFAS No. 4,
Managerial Cost Accounting Concepts and Standards for the Federal Government.
• Accounting for and managing Superfund accounts receivable.
Accounting for and controlling property.
• Recording accrued liabilities for grants.
Approving payments for lAGs.
Documenting EPA s IFMS.
Complying with Federal financial management system security requirements.
• Accounting for payments for grants funded from multiple appropriations.
Identifying and allocating indirect costs.
• Reviewing Agency user fees.
Allocating costs to the Superfund Trust Fund.
Attachment 3, Status of Prior Audit Report Recommendations, of the OIG's complete audit report on
EPA's FY 2000 financial statements summarizes the current status of corrective actions taken on prior
audit report recommendations in each of these areas.
The Chief Financial Officer, as the Agency's Audit Follow-up Official, oversees EPA's follow-up on
audit findings and recommendations, including resolution and implementation of corrective actions. For
these prior audits, final action occurs when the Agency completes implementation of the corrective
actions to remedy weaknesses identified in the audit.
We acknowledge that many actions and initiatives have been taken to resolve prior financial statement
audit issues. We also recognize that the issues we have reported are complex, and require extensive,
long-term corrective actions and coordination by the Chief Financial Officer with various Assistant
Administrators, Regional Administrators, and Office Directors before they can be completely resolved.
A number of issues have been unresolved for a number of years.
In response to our inquiries on actions taken by the OCFO to resolve long outstanding audit
recommendations, a representative informed us of a number of efforts that were conducted in fiscal
2000. The OCFO continued efforts to stress the importance of timely and effective audit management
practices. The OIG and OCFO held a joint meeting with the Audit Follow-up Coordinators to: (1)
reinforce their roles and responsibilities, (2) review expectations for audit follow-up, as laid out in EPA
Order 2750, Audit Management Process, and (3) reemphasize the importance to Audit Follow-up
Coordinators in keeping their managers and the OIG informed of progress.
Audit Report 2001-1-00107
IV-70 EPA's FY 2000 Annual Financial Statements
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The OIG will continue to work with the OCFO in helping to resolve all audit issues resulting from our
financial statement audits.
Agency Comments and OIG Evaluation
In a memorandum dated February 15, 2001, the Acting Comptroller responded to our draft report. The
OCFO generally concurred with our recommendations and has completed or planned a number of
corrective actions to implement most or our recommendations. However, the OCFO disagreed with our
classifying the process for preparing financial statements as a reportable condition. The OCFO believed
that the specific examples depicted are few in number and, in some cases, reflect differences of
professional judgement on presentation rather than errors and did not believe the occurrences were
serious enough to warrant a reportable condition on the preparation process. Also, the OCFO disagreed
with our conclusion that the Agency is in substantial noncompliance with the requirements of SFFAS
No. 4, Managerial Cost Accounting Concepts and Standards for the Federal Government. The OCFO
believes that the Agency is in substantial compliance with the managerial cost accounting standard and
therefore did not agree with our recommendations for corrective action and did not believe that a
remediation plan under FFMIA would be required.
The OIG has not changed the classification of the process for preparing financial statements as a
reportable condition or our conclusion on reporting a substantial noncompliance with the managerial
cost accounting standard.
The preparation process for financial statements, while substantially improved from prior years, still is
far from routine. Problems identified by our audit included several issues that would have resulted in a
qualified audit opinion. We continue to report this matter as a reportable condition because the process
should be routine, and should result in draft financial statements without material errors. To a lesser
degree than in prior years, auditors are being used as a quality control mechanism. Accordingly, we
believe the preparation process warrants reporting as a reportable condition.
Relative to Agency comments on managerial cost accounting, the Agency did not produce or utilize cost
per output during fiscal 2000 as required by SFFAS No. 4. Without an indirect cost policy that provides
for full cost of outputs, the Agency cannot satisfy the accounting standard. The goal, objective, and
stated purposes of SFFAS No. 4 were not being met.
The rationale for our conclusions and a summary of the Agency comments is included in the appropriate
sections of this report and the Agency's complete response is included as Appendix II of the OIG's
complete audit report on EPA's FY 2000 financial statements.
Audit Report 2001-1-00107
EPA's FY 2000 Annual Financial Statements IV-71
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This report is intended solely for the information and use of the management of EPA, OMB, and
Congress, and it is not intended to be and should not be used by anyone other than these specified parties.
Edward Gekosky
Divisional Inspector General
Financial Audit Division
U.S. Environmental Protection Agency
February 26, 2001
Audit Report 2001-1-00107
IV-72 EPA's FY 2000 Annual Financial Statements
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For more information on EPA's FY 2000
Financial Statements, contact:
Financial Management Division
U.S. Environmental Protection Agency
Ariel Rios Building
1200 Pennsylvania Avenue, N.W. (2733R)
Washington, DC 20460
EPA's FY 2000 Annual Financial Statements IV-73
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FY2000
ANNUAL REPORT
APPENDIX
APPENDIX A
EPA ORGANIZATION CHART
APPENDIX B
LIST OF ACRONYMS
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U. S. ENVIRONMENTAL PROTECTION AGENCY
Environmental
Appeals Board
Office of Regional
Operations
Office of
Children's Health
Protection
Office of
Executive
Support
Office of the
Executive
Secretariat
Office of
Administrative
Law Judges
Office of
Cooperative
Environmental
Management
Office of Civil
Rights
Office of Small and
Disadvantaged
Business
Utilization
Science Advisory
Board Staff Office
Administrator
Deputy Administrator
Assistant Administrator
for Administration and
Resource Management
Assistant Administrator
for Air and Radiation
Office of General
Counsel
Office of Inspector
General
Assistant Administrator
for Prevention, Pesticides,
and Toxic Substances
Assistant Administrator
for Research and
Development
Region I
Boston, MA
Region II
New York, NY
Region V
Chicago, IL
Region VI
Dallas, TX
Region IX
San Francisco, CA
Associate Administrator for
Congressional and
Intergovernmental Relations
Associate Administrator for
Communications, Education, and
Media Relations
Associate Administrator for
Policy, Economics, and
Innovation
Assistant Administrator
for Enforcement and
Compliance Assurance
Office of the Chief
Financial Officer
Assistant Administrator
for International
Activities
Assistant
Administrator for
Environmental
Information
Assistant Administrator
for Solid Waste and
Emergency Response
Assistant Administrator
for Water
Region III
Philadelphia, PA
Region IV
Atlanta, GA
Region VII
Kansas City, KS
Region VIM
Denver, CO
Region X
Seattle, WA
Appendix A
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LIST OF ACRONYMNS
AFS Air Facility Sources System
AIRNOW Computer model displays smog levels
AIRS Aerometric Information Retrieval System
APG Annual Performance Goal
APR Annual Performance Report
AQCD Air Quality Criteria Document
ARP Acid Rain Program
ATS Allowance Tracking System
AQCD Air Quality Criteria Document
AQS Air Quality Subsystem
ASDWA Association of State Drinking Water Administrators
ASTM American Society for Testing and Materials
B&F Buildings and Facilities
BACT Best Available Control Technology
BECC Border Environment Cooperative Commission
BMS Brownfields Management System
BOSC Board of Scientific Counselors
BTU British Thermal Unit
CAA Clean Air Act
CAAA Clean Air Act Amendments
CAFO Concentrated Animal Feeding Operations
CARAT Committee to Advise on Reassessments and Transition
CAS Centers for Applied Science
CASAC Clean Air Scientific Advisory Committee
CASTNet Clean Air Status Trends Network
CCR Consumer Confidence Report
CEC Commission for Environmental Cooperation
CEIS Center for Environmental Information and Statistics
GEMS Continuous Emission Monitoring System
CERCLA Comprehensive Environmental Response, Compensation, and Liability Act
CEQ Council on Environmental Quality
CFC Chlorofluorocarbon
CMAQ Community Multi-scale Air Quality model
CMC Center for Marine Conservation
CO Carbon Monoxide
CO2 Carbon Dioxide
CPM Core Performance Measure
CRtK Chemical Right-to-Know
CSI Common Sense Initiative
CSO Combined Sewer Overflows
CSRS Civil Service Retirement System
CTAG Certification and Training Assessment Group
CWA Clean Water Act
CWAP Clean Water Action Plan
CWSRF Clean Water State Revolving Fund
DDT Dichlorodiphenyltrichloroethane
DFE Design for the Environment Program
Appendix B
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DHHS Department of Health and Human Services
DOE Department of Energy
DPD Disinfection By-Products
DWSRF Drinking Water State Revolving Loan Fund
E.O. Executive Order
EGOS Environmental Council of the States
EDC Endocrine-Disrupting Chemical
EDSC Environmental Data Standards Council
EEOC Equal Employment Opportunity Commission
EIA Energy Information Agency
EIMS Environmental Information Management System
EMAP Environmental Monitoring and Assessment Program
EMPACT Environmental Monitoring for Public Access and Community Tracking
EOSTAC Endocrine Disrupter Screening and Testing Advisory Committee
EPA Environmental Protection Agency
EPCRA Emergency Planning and Community Right-to-Know Act
EPM Environmental Programs and Management
ERD External Review Draft
ESP Environmental Stewardship Strategies
ETV Environmental Technology Verification
FAS Fixed Assets Subsystem
FDA Food and Drug Administration
FECA Federal Employees Compensation Act
FERS Federal Employees Retirement System
FTE Full Time Equivalents
FIFRA Federal Insecticide, Fungicide and Rodenticide Act
FPMN Fine Particle Monitoring Network
FMFIA Federal Managers' Financial Integrity Act
FQPA Food Quality Protection Act
FREDS Findings and Regional Elements Data System
FRS Facility Registry Systems
FTE Full Time Equivalents
FY Fiscal Year
GAO General Accounting Office
GAP General Assistance Program
GCRP Global Change Research Program
GCVTC Grand Canyon Visibility Transport Commission
GIS Geographic Information System
GPRA Government Performance and Results Act
GSA General Services Administration
GWR Ground Water Rule
HCFC Hydrochlorofluorocarbons
HEPA High Efficiency Particulate Air
HPV High Production Volume
HTPS High-Throughput Prescreening
HUD Department of Housing and Urban Development
EPA's FY 2000 Annual Report
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1-3 Information Integration Initiative
IAG Inter-Agency Agreement
ICIS Integrated Compliance Information System
IDEA Integrated Data for Enforcement Analysis
IECP Integrated Error Correction Process
IGCE Independent Government Cost Estimates
IMPROVE Interagency Monitoring of Protected Visual Environments
IRIS Integrated Risk Information System
IRM Information Resources Management
ISEC Integrated Science for Ecosystem Challenges
IT Information Technology
IWI Index of Watershed Indicators
Labs21 Laboratories for the 21st Century
LaMP Lakewide Management Plan
LTESWTR Long-Term Enhanced Surface Water Treatment Rule
LUST Leaking Underground Storage Tank
MACT Maximum Achievable Control Technology
MAIA Mid-Atlantic Integrated Assessment
MIMS Multimedia Integrated Modeling System
MMTCE Metric Tons of Carbon Equivalent
MOBILE Mobile Source Emissions Factor Model
MOR Management Oversight Review
MPG Miles Per Gallon
MSW Municipal Solid Waste
MTBE Methyl Tertiary Butyl Ether
MYP Multiyear Plan
NAAQS National Ambient Air Quality Standards
NAC National Advisory Committee
NADP National Atmospheric Reposition Program
NAIN National Antimicrobial Information Network
NAFTA North American Free Trade Agreement
NARAP North American Regional Action Plan
NAS National Academy of Science
NAVITEA Northern Arizona University Institute for Tribal Environmental Professionals
NEJAC National Environmental Justice Advisory Group
NEP National Estuary Program
NEPA National Environmental Policy Act
NEPPS National Environmental Performance Partnership System
NETI National Enforcement Training Institute
NHANES National Health and Nutrition Evaluation Survey
NO2 Nitrogen Dioxide
NOA New Obligational Authority
NOAA National Oceanic and Atmospheric Administration
NOx Nitrogen Oxide
NPDES National Pollutant Discharge Elimination System
NPL National Priorities List
NPRD National Pesticide Residue Database
NPS Nonpoint Source
Appendix B
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NRDC Natural Resources Defense Council
NSATA National-Scale Air Toxics Assessment
NTI National Toxics Inventory
OCFO
ODS
OECD
OKI
OIG
OMB
OP
OPA
OPPIN
OSHA
OSTP
OTCB/METP
P2
PAH
PBB
Pb
PBT
PCB
PCS
PE
PERS
PM
PMN
PNGV
POP
PPA
PPGs
PRC
PRO
PRP
QA/QC
QIC
RACs
RAP
RCRA
RCRAInfo
RED
REI
ReVA
RFC
RFP
RGI
RMF
Ozone
Office of the Chief Financial Officer
Ozone-Depleting Substance
Organization for Economic Cooperation and Development
Office of Environmental Information
Office of the Inspector General
Office of Management and Budget
Organophosphate
Oil Pollution Act
Office of Pesticide Program Information Network
Occupational Safety and Health Administration
Office of Science and Technology Policy
Ozone Transport Commission's NOx Budget/Multistate Emissions Trading Program
Pollution Prevention
Polycylic Aeromatic Hydrocarbon
Poly-Brominated Biphenols
Lead
Persistent Bioaccumulative Toxic
Polychlorinated Biphenyl
Permit Compliance System
Program Element
Performance and Environmental Results System
Particulate Matter
Pre-Manufacture Notice
Partnership for a New Generation of Vehicles
Persistent Organic Pollutant
Performance Partnership Agreement
Program Performance Grants
Program Results Code
Program and Research Operations
Potentially Responsible Party
Quality Action/Quality Control
Quality and Information Council
Response Action Contracts
Remedial Action Plan
Resource Conservation and Recovery Act
Resource Conservation and Recovery Information System
Reregistration Eligibility Decision
Reinventing Environmental Information
Regional Vulnerability Assessment
Reformulated Gasoline
Request for Proposal
Regional Geographic Initiative
Re-registration Maintenance Fees
EPA's FY 2000 Annual Report
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RMP
RP
RPO
RTP
S&T
SAB
SAMI
SAP
SARA
SCAP
SDWA
SDWIS
SEP
SES
SFIP
SIP
SITE
SLAM
S02
SPCC
SRI
SSCs
STAG
STAR
Risk Management Plan
Responsible Parties
Regional Planning Organization
Research Triangle Park
Science and Technology
Science Advisory Board
Southern Appalachian Mountains Initiative
Scientific Advisory Panel
Superfund Amendments and Re authorization Act of 1986
Superfund Consolidated Accomplishments Plan
Safe Drinking Water Act
Safe Drinking Water Information System
Supplemental Environmental Project
Senior Executive Service
Sector Facility Indexing Project
State Implementation Plan
Superfund Innovative Technology Evaluation
State and Local Air Monitoring Station
Sulfur Dioxide
Spill Prevention, Control and Countermeasures
Superfund Redevelopment Initiative
Superfund State Contracts
State and Tribal Assistance Grants
Science to Achieve Results
TAMSC Tribal Air Monitoring Support Center
TEA Tribal Environmental Agreement
TEA-21 Transportation Equality Act for the 21st Century
TIS Tolerance Index System
TMDL Total Maximum Daily Load
TRAC Tolerance Reassessment Advisory Committee
TRI Toxics Release Inventory
TRI-ME Toxics Release Inventory Made Easy
TRIS Toxic Release Inventory System
TSCA Toxic Substances Control Act
USDA U.S. Department of Agriculture
USGCRP U.S. Global Change Research Program
UST Underground Storage Tank
UV Ultraviolet
VMT
voc
WCF
WQS
WRAP
XL
Vehicle Miles Traveled
Volatile Organic Compound
Working Capital Fund
Water Quality Standards
Western Regional Air Partnership
eXcellence and Leadership
Appendix B
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PUBLIC ACCESS TO EPA'S PROGRAMS;
LOCAL, STATE AND TRIBAL NEWS;
AND ENVIRONMENTAL INFORMATION
The public is invited to access http://www.epa.gov to obtain the latest environmental news, browse
EPA topics, discover what is happening in your community, obtain information on interest groups, research
laws and regulations, search specific program areas, learn how to get information, or access EPA's historical
database.
In The News
Browse EPA Topics
Your Community
Audience Groups
Laws & Regulations
Programs
Headlines, Emerging Issues, Local Stories, Consumer News, Public Participation
Air, Cleanup, Compliance & Enforcement, Economics, Ecosystems, Emergencies,
Environmental Management, Human Health, Industry, Pesticides, Pollutants/Toxics,
Pollution Prevention, Research, Treatment & Control, Wastes, Water
Envirofacts, EnviroMapper, Surf Your Watershed, Community Highlights
Kids, Students, Teachers, Concerned Citizens, Industry, Small Businesses, State, Local,
Tribal, Researchers
Major Environmental Laws, Current Legislation in Congress, U.S. Code, Regulations
& Proposed Rules, Code of Federal Regulations
Reinvention Activities, Industry Partnerships, Offices, Regions, Research, Geographic
Focus, State, Local, Tribal, General Interest
Information Sources Libraries, Hotlines, Clearinghouses, Dockets, Publications, Newsletters, Information
Request
About EPA
People Locator, Postal Addresses, History, Budget, Contracts, Money Matters,
Annual Performance Report, Management Integrity, Policy Statement and Strategy
Documents, Employment Information, Environmental Terms
WE WELCOME YOUR COMMENTS!
Thank you for your interest in the Environmental Protection Agency's FY 2000 Annual Report. We
welcome your comments on how we can make this report a more informative document for our readers. We
are particularly interested in your comments on the usefulness of the information and the manner in which
it is presented. Please send your comments to 2000AR.OCFO@epa.gov or write to:
Office of Planning, Analysis, and Accountability
Office of the Chief Financial Officer (OCFO) (2721A)
Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20460
This report is available on OCFO's homepage at: http://www.epa.gov/ocfo, through EPA's National
Service Center for Environmental Publications at 1-800-490-9198, or by ordering online at:
http://www.epa.gov/ncepihom.
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Photo Acknowledgments:
Cover: Photo of American Falls, Niagara Falls, NY
Aikne Bragg
Office of Chief Financial Officer/Annual Planning and Budget Division
Section I: Cherry Blossoms at the Tidal Basin, Washington, DC
KathySedlak O'Brien
Section II: The Florida Aquarium's Wetlands Gallery, Tampa, FL
Margo Lagana
Section III: Fall Foliage at Teddy Roosevelt's Home, Oyster Bay, NY
Kate Donaldson
Section IV: Winter Wonder - The Last Shot, Centreville, VA
Piyachat Terrell
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