United States         Office of Policy     EPA 233-F-99-002
             Environmental Protection    (2136)        July 1999
             Agency
&EPA   FACT SHEET
             Information for Potential Small
             Entity* Representatives to the
             Small Business Advocacy
             Review Panel Process
* For the purposes of the Small Business Advocacy Review Panel process, small
entity includes small businesses, small governments and small non-profit
enterprises. The term "small business" is defined by law in the Small Business Act
and the terms "small government and small non-profit" are defined by law in the
Regulatory Flexibility Act (more detail inside).

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What is an EPA
small entity
representative?
 Why does  EPA
need small entity
representatives?
Who is eligible
to be a small
entity
representative?
An EPA Small Entity Representative (SER) is an individual chosen by the
Agency as a participant representative of small entities likely to be directly
regulated by a particular proposed rule under development. The Regulatory
Flexibility Act defines small entities as small businesses, small governments,
and small non-profit enterprises (more detail below).

If you are selected as a Small Entity Representative, we will ask you to provide
comments on behalf of your company or organization to a specific Small
Business Advocacy Review Panel considering a particular rule. Your
participation in the rulemaking process will ensure that EPA hears small
entities' concerns.

EPA has an ongoing commitment to minimize the burden of our regulations on
small entities to the extent feasible while still meeting our statutory
requirements.  The Small Business Regulatory Enforcement Fairness Act
(SBREFA), passed in March 1996, amended the Regulatory Flexibility Act
(RFA) to further the Agency's partnerships with small entities in our
rulemakings. One of the important goals of the RFA, as amended by SBREFA,
is to provide small entities with an expanded opportunity to participate in the
development of certain regulations.

In particular, EPA must convene a Small Business Advocacy Review Panel for
certain rules under development, unless the Agency determines that the rule
will not impose a significant economic impact on a substantial number of small
entities. Each Panel includes representatives from the Small Business
Administration, the Office of Management and Budget, and EPA. The Panel
conducts outreach to individuals representative of small entities likely to be
subject to the rule and prepares a report on each rulemaking to the
Administrator of EPA on the potential small entity impacts of the rule and on
potential ways to reduce those impacts. The goal of the Small Business
Advocacy Review Panel process is to explore ways of minimizing significant
burdens on regulated small entities while achieving the public purpose to be
served by regulation.

You are eligible to be a small entity representative if you meet the definition of
small (either as a business, government or non-profit organization) as defined
by law and are directly subject to the particular regulation under development.
The RFA/SBREFA references the definition of "small business" found in the
Small Business Act, which authorizes the Small Business Administration (SBA)
to further define "small business" by regulation. The SBA's small business
definitions are codified at 13 CFR 121.201.  The RFA/SBREFA defines "small
governmental jurisdiction" as the government of a city, county, town, school
district or special district with  a population of less than 50,000.  Further, "small
organization" is defined as any "not-for-profit enterprise which is independently
owned.and operated and is not dominant in its field."

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Who chooses
small entity
representatives?
At what stage in
the  rulemaking
does the  Panel
process occur?
What will being a
small entity
representative
entail?
 We prefer that small entity representatives be owner-operators of small
 businesses, officials from small governmental jurisdictions or managers of non-
 profit enterprises potentially subject to the rule. If such representatives are
 unavailable, other individuals, such as persons from trade associations that
 exclusively or primarily represent potentially regulated small entities may serve
 as small entity representatives. Other persons who wish to act as small entity
 representatives will  be evaluated on a case by case basis.
        '%
 For each rule that may have a significant economic impact on a substantial
 number of small entities, the EPA program office responsible for the rule
 identifies what types of small entities are likely to be directly regulated and
 works in partnership with other Agency offices in developing a list of potential
 small entity representatives. Through the Agency's Small Business Advocacy
 Chair, the program office also consults with the SBA Chief Counsel for
 Advocacy to identify individuals to serve as small entity representatives. Based
 on these recommendations, official small entity representatives are appointed
 by the Small Business Advocacy Chair.

 Prior to proposing a rule we engage you, our stakeholders, in a dialog to inform
 you of our plans and to learn about your ideas and concerns regarding a rule
 under development. If our preliminary assessment of the potential impacts of
 the rule indicates that we may not be able to certify that the rule will not, if
 promulgated, have a significant economic impact on a substantial number of
 small entities, EPA will initiate the Small Business Advocacy Review Panel
 process. This process is intended to provide a special opportunity for small
 entities to participate in the  rulemaking under the provisions of RFA/SBREFA.

 Generally, prior to the convening of a Panel and during the Panel's 60 day term,
 as a small entity representative to the federal Panel, you will be asked to review
 background information, listen to informational briefings and provide oral and
 written comments to the Agency and the Panel.

 Typically, prior to the convening of a Panel, which consists of only federal
 employees as specified by law, the EPA program office responsible for the
 development of the rule will provide you with some background information on
 the rule and ask for your feedback. The program office, in coordination with
 EPA's Small Business Advocacy Chair, may also arrange a meeting with small
 entities potentially subject to a particular rule to hear your (individual)  initial
 concerns and suggestions.  Representatives of OMB and SBA are also invited
 to this meeting.

After the Panel is convened, the Panel will provide you with some additional
 information and some specific questions, followed by a teleconference or a
face-to-face meeting to give you the opportunity to communicate directly with
the Panel members and provide oral comments. The Panel also generally

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What will be
done with my
small entity
input?
Where can I get
more
information?
 requests small entity comments in writing. The goal of this consultation is to
 provide a forum for small entities to raise issues of concern and to provide the
 Panel with insight into technical issues and potential ways of approaching them.

 Each Small Business Advocacy Review Panel considers all small entity
 comments in addition to other rule-related material prepared by the program
 office and, within the 60 days provided by statute, prepares a report on the
 rulemaking to the Administrator of EPA on the potential small entity impacts of
 the rule and on potential ways to reduce those impacts. The Panel report will
 be considered by the Agency as it decides the content of the proposed rule. All
 written small entity comments are appended to the Panel report.  Of course,
 after publication of the proposed rule in the Federal Register, you will have an
 additional opportunity to submit comments during the standard public comment
 period.

 Several EPA documents are available that can provide more information on the
 Regulatory Flexibility Act, the Agency's small entity compliance assistance
 efforts and the elements of a regulatory flexibility analysis. These documents
 and further assistance with any RFA/SBREFA questions are available from the
 staff of the Small Business Advocacy Chair.

 EPA Small Business Advocacy Chair
Tom Kelly, Director
 Office of Regulatory Management and Information
Tel: (202) 260-4001
                  ^
Small Business Advocacy Chair Staff
Stuart Miles-McLean, (202)260-8518, miles-mclean.stuart@epa.gov
Jennifer Greenamoyer, (202) 260-7829, greenamoyer.jennifer@epa.gov
Jennifer Kim, (202) 260-1045, kim.jennifer@epa.gov
Patrick Easter, 202) 260-6843, easter.patrick@epa.gov

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