.EPA/305/D-97/001
DRAFT
October 1997
The Environmental
Leadership Program
The ELP Framework
As part of the U. S. Environmental Protection
Agency's (EPA) ongoing efforts to improve
environmental performance, encourage voluntary
compliance, and build working relationships with
stakeholders, EPA developed the Environmental
Leadership Program (ELP). Initiated in April 1995, .
the one-year pilot program has been completed, and
EPA;plans to launch its full-scale Leadership
Program in late 1997.
WHAT ARE THE GOALS OF
THEELP?
The goals of the Environmental Leadership
Program include:
• Better protection of the environment and human
• health by promoting a systematic approach to
managing environmental issues and by
encouraging environmental enhancement
activities (e.g., biodiversity, energy conservation);
• Increased identification and timely resolution of
environmental compliance;
'• Multiplying the compliance assistance efforts by
. including industry as mentors; and ,
• Fostering constructive and open relationships
between agencies, the regulated community, and
the public. ; . !
WHO MAY BE ELIGIBLE TO
BE AN ELP PARTICIPANT?
Any public, private, or federal facility that meets the
following ELP criteria for environmental leadership
can apply to be an ELP participant.
•• A facility is expected to have a mature
environmental management system (EMS) that
conforms to the ELP EMS. The criteria for an
ELP EMS are outlined in the ELP EMS fact sheet
(EPA305-F-96-011).
• A facility should have a compliance and EMS
auditing program. This can be demonstrated by a
facility submitting or making available during the
on-site review its facility-wide compliance audit
results and EMS information (data or results'
documentation) from the past 2 years.
* As part of its EMS, a facility should implement
community outreach/employee involvement
programs. Such programs foster the
development of relationships between facilities
and two of their major stakeholders-local
communities and employees.
• Federal facilities need to verify that their parent
Agency endorses the Code of Environmental
Management Principles (CEMPj and briefly
describe how the applying facility is implementing
the CEMP. ELP has been adopted as the Model
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Installation Program for federal facilities under
E.O.12856,
• A history of complying with environmental
requirements. Facilities applying to the ELP are
requested to include on the application the dates
and a summary of the findings from any agency
regulatory inspection(s) conducted in the past 2
years.
WHAT ARE THE BENEFITS
OF THE ELP?
Benefits to the Environment are anticipated from
the Program's focus on encouraging environmental
enhancement activities, such as environmental
restoration projects and product stewardship.
The Program will facilitate an exchange of-
information and encourage the implementation of
best practices related to environmental
management systems and pollution prevention
activities.
The ELP provides an opportunity to foster
constructive relationships between the ELP
participants, regulators, and the public. Building
productive working relationships among
environmental stakeholders may lead to tangible
benefits for the environment and public health,
especially if regulatory resources can be effectively
redirected to focus on environmental "bad actors"
and expanded compliance assistance efforts.
The Formal Recognition benefit includes:
• Public Recognition - EPA will issue certificates of
participation in the ELP and develop programs
and activities designed to publicly recognize ELP
facilities at federal, regional, state, and local
levels.
• Logo Usage - Participants can use the EPA-
issued ELP logo in facility (but not product)
advertising, on facility equipment and structures,
and internally, on stationery, coffee mugs, T--
shirts, jackets, etc.
The Inspection Discretion benefits include:
• Through the use of their enforcement discretion,
participating regulatory entities will reduce and/or
modify discretionary inspections.
Due to the leadership and exemplary environmental
performance of ELP participants, other benefits,
such as expedited permits, longer permit cycles,
and streamlined permit modifications may become
available at a future time.
WHAT Is THE ELP
APPLICATION & SELECTION
PROCESS?
Facilities interested in becoming ELP participants
should complete a standard application and submit
it to EPA for review. There will be a three-month
window each year for applying to ELP.
The facility selection procedures include:
• Wherever possible, there will be full participation
from other-regulatory entities. An ELP Review
Team, comprised of EPA (HQ and Regions) and
other participating regulatory entities, will conduct
the review. The selection process time frame is
estimated to be three to four months after the
application is received.
• EPA, in coordination with other regulatory entities,
will conduct a compliance screen. If any of the
following conditions occur, the applying facility will
generally not be considered for ELF participation:
• Any federal or state criminal conviction of
facility or corporation for an environmental
offense within the past 5 years
• Appearance of facility or corporation on
EPA's delisting/debarment list
• Delinquent penalties resulting from.any
enforcement action against the facility
• Environmental criminal action pending or
under investigation against facility or
corporation
• Pending federal or state environmental
judicial action against facility (including a
facility not having a minimum three-year
history of complying with the schedules/
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requirements of an existing consent decree
or settlement agreement)
• Pending federal or state environmental
administrative action against facility
(including a facility not having a minimum
three-year history of complying with the
schedules/requirements of an existing
administrative order or agreement).
Other factors will be evaluated and considered on a
case-by-case basis. These include:
• Violations within the past three years that
presented an imminent and substantial
endangerment or a serious actual harm
• History as a Significant Non-Complier (as
defined by EPA media programs)
• Repeat violations as defined by EPA's
Incentives,for Self-Policing Policy (60 FR
66706) ' '•'.'-•••
• Filed citizen suits
• Criminal, conviction for an environmental
. . offense against an individual officer or
employee within past 5 years
• Environmental criminal action pending or under
investigation against an individual officer or
employee.
• EPA will publish in the Federal Register a list of
facilities applying to ELP for a 30-day public.
comment period. ;
• The facility will be responsible for notifying the
community of their application to ELP.
• An independent third-party environmental
auditor (which can be EPA or State staff) will
verify that the ELP EMS requirements.have
been met.
• The final step in the ELP application process is
an on-site review of thevapplying facility by the
ELP Review Team. The.third-party ELP EMS
verification may be included in the on-site
. review.
• Ah ELP Selection Committee will review all
recommendations and make the selections.
• ELP participation officially begins after an ELP
Leadership Agreement is signed by all parties
(the facility, EPA, and other participating
regulatory entities). . - •
How WILL PARTICIPANTS
MAINTAIN ELP STATUS?
During the six-year cycle, participants will be
expected to maintain certain commitments,
including:
• Continuing the facility's ELP EMS and Community
Outreach/Employee Involvement programs
• Implementing a Mentoring Program
• Conducting compliance and EMS audits in years
2 and 5 of the ELP participation cycle using
auditors who meet the ELP auditor qualifications •
• Preparing and submitting an Annual
Environmental Performance Report to EPA and
the other participating regulatory entities)
• Abiding by the Enforcement Response
Guidelines.
WHAT ARE THE ELP EMS
CRITERIA?
The ELP Environmental Management System
(EMS) is an integrated, structured, and systematic
approach for identifying significant environmental
impacts from a facility's activities, products, and
services along with improvements necessary to:
• Achieve compliance with all relevant regulatory
and statutory requirements
• Continually improve the fapility's EMS and its
overall environmental performance
• Implement pollution prevention activities and
practices as an integral part of the EMS
• Communicate effectively with outside
stakeholders on the facility's EMS and its,
performance.
All of these activities are accomplished by first
assessing the facility's impact on the environment,
reviewing the activities that address those impacts,
confirming implementation of the activities, and then
measuring and evaluating their effectiveness. To
participate in the full-scale ELP, a facility should
demonstrate it has had an effective EMS in place for
at least 2 years. This is to indicate that the EMS is
mature (e.g.-, has gone through an initial "shake-
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down" period in which system weaknesses were
identified and corrected).
The ELP EMS criteria are based on an EMS with
the characteristics of ISO 14001, an international
environmental standard that was published in
September 1996, but with more specificity regarding
compliance assurance and a few other elements. A
copy of ISO 14001 can be obtained from the
American National Standards Institute (ANSI).
{Please see the "For More Information" section for
ANSI's address.} The purpose of ISO 14001 is to
provide organizations with the elements of an
effective EMS that can be integrated with other
management requirements to help organizations
achieve environmental and economic goals. It was
developed to raise the floor for consistency in
managing environmental responsibilities. The
overall goal of ISO 14001 is to support
environmental protection and prevention of pollution
in balance with socio-economic needs.
For ELP, there are certain specific activities that
should be implemented through a facility's EMS.
These activities are compliance assurance, •
community outreach, pollution prevention, and
environmental enhancement. Facilities will be
expected to conduct self-audits and track
regulations to ensure compliance with
environmental requirements on a continuous basis.
This should provide EPA and the public with the •
desired assurance that facilities are meeting their
environmental responsibilities. ELP will not create a
conflict with facilities trying to become certified
under ISO, nor will it require certification or
registration under ISO.
To help facilities understand and implement the ELP
EMS, EPA has developed a guideline document.
This same document will be utilized by the EPA to
evaluate a facility's EMS under the ELP.
WHAT ARE THE ELP
COMPLIANCE/EMS AUDIT
GUIDELINES?
ELP facilities are expected to conduct compliance
and environmental management system (EMS)
audits either separately or combined. Compliance
audits should be facility-wide and address all
environmental regulatory requirements. EMS audits
should evaluate the performance of the EMS
against ELP and site-specific EMS objectives, and
identify needed improvements.
• Compliance and EMS audits should be conducted
at the facility, at a minimum, in years 2 and 5 of a
6-year cycle and in accordance with the ELP
Audit Guidelines. Audit results should be
provided to EPA in accordance with ELP Audit
Guidelines in the Annual Environmental
Performance Report or within 60 days after the
conclusion of on-site audit activities, whichever
comes first.
• Facilities may use internal or external
environmental auditors that meet ELP auditor
qualifications. An internal environmental auditor
is an individual within the entity being audited who
is responsible for the environmental audit and
includes an auditor from a corporate office, the
facility that is being audited, or another facility
within the corporation. An external environmental
auditor is an individual that has no relationship,
for example through work, ownership, or personal
relationship, with the entity that is being audited.
• When an internal environmental auditor is used, a
third-party observer that meets ELP auditor ;
qualifications .should observe the ELP audits.
WHAT ARE THE ELP
AUDITOR QUALIFICATIONS?
Auditors participating in the ELP are expected to
have technical knowledge and experience
commensurate with the scope of the audit they are
conducting or observing. Qualified auditors
conducting/observing ELP audits should meet the
following criteria:
• Auditors should have either formal training or on-
the-job training in the following areas:
• Environmental issues likely to be associated
with the processes and related management
issues
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• Applicable environmental laws, regulations,
and related documents
'• Environmental management systems and •
standards
• Audit practices, processes, and techniques
• Technical, scientific, and legal terms and -
concepts . '
• Environmental science and technology.
In addition, auditors should have on-the-job training
for a total of twenty equivalent work-days of
auditing, and participated on.a minimum of four
environmental compliance and/or EMS audits. This
on-the-job training is expected to occur within three
, consecutive years. Where there is substantial risk
of exposure to chemical hazards; auditors should
have formal training in health and safety and
participate in a medical monitoring program.
• Auditors should have the following personal
, attributes an'd skills:
• The ability to clearly express concepts and
ideas, orally and in writing
• Strong observational, organizational, listening,
and communication skills
• The ability to maintain independence and
objectivity -
• The ability to reach sound judgement based on
objective evidence.
• Auditors should participate in refresher training as
necessary to ensure that their experience in the
conduct of EMS and/or compliance audits is
current.
ELP participants are responsible for demonstrating
that auditors used to perform the ELP EMS or
.compliance audits meet the above qualifications.
WHAT Is THE ELP ANNUAL
ENVIRONMENTAL
PERFORMANCE REPORT?
The ELP Annual Report is intended to provide a
summary of the ELP facility's environmental
performance for each year of its participation. This
report will be available to the public. It should, at a
minimum, include:
• Information on the facility and its environmental
impacts •
• EMS objective, goals, and targets '
••• Audit results (required only for years 2 and 5)
• EMS results and measures for the year (including
instances of noncompliance that are otherwise
not required to be reported)
' • Whether any, Agency inspections occurred and, if
so, the results
•. Violations/exceedances required to be reported
• Community outreach and employee involvement
- • Mentoring activities.
The Annual Report should be certified by a senior
facility manager. .
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How WILL
NONCOMPLIANCE ISSUES
BE ADDRESSED?
The following outlines the proposed approach in.
addressing issues of noncompliance during
participation in the full-scale ELP:
• ELP participants will follow all reporting
requirements mandated by federal and regulatory
entities' law, permit conditions, consent decree or
order1. The ELP Leadership Agreement may
include modifications to such requirements
consistent with other Agency policies.
Participants will be expected to disclose all
instances of environmental noncompliance
detected and corrected in the Annual Report.
EPA or the appropriate participating regulatory
entity will inform the participant facility in writing
whether penalty mitigation for the disclosed
noncompliance is appropriate.
• Participants will generally have 60 days to correct
noncompliance, unless they are required by law
to correct noncompliance in a shorter period of
time. The correction period applies to
noncompliance detected during any EPA, State or
local inspection, identified through the facilities'
management system, or recognized during ELP
required audits. The 60-day correction period will
begin on the date of detection of the
noncompliance. During that period, participants
shall correct the noncompliance, including
prevention of recurrence and remediation of harm
to human health or the environment. Where the
facility detects noncompliance that presents
imminent and substantial endangerment to
human health or the environment, the facility must
notify all the signatories to the Leadership
Agreement immediately, and correct the
noncompliance immediately, including prevention
of recurrence and remediation of harm.
• Within 60 days of detection, participants must
describe in writing any noncompliance (required
to be reported or otherwise) that cannot be
1 These guidelines do not supersede participant
facilities' requirements of any consent decree or order.
corrected in 60 days, to EPA and the participating
regulatory entities. If the noncompliance cannot
be corrected within 60 days of detection, each
case will be reviewed to determine if the
correction period may be extended for an
additional 60 days, or other appropriate time
period. The extension should be requested in
writing and.be submitted to the federal and other
participating regulatory entities'.
EPA recognizes that some noncompliance can and
should be corrected immediately, while others (e.g.
where capital expenditures are involved), may take
longer than 60 days to correct. When reviewing the
extension request, EPA and the regulatory entities
will review each case to determine if substantial
steps were taken to ensure correction and
remediation efforts were taken promptly.
Substantial steps include applying for necessary
permits, securing financing, ordering equipment,
and other similar actions.
If the request is approved, the EPA, the other
participating regulatory entities, and the facility will
commit in writing to a new schedule that will include
the necessary facility actions to ensure compliance
with the law, prevent recurrence of the violation(s),
and remediate any environmental harm caused by
the violation(s). EPA and the other participating
regulatory entities reserve the right to verify, through
inspection or other means, that the noncompliance
has been corrected.
• EPA and participating regulatory entities will not
proceed with a civil penalty action unless the
violations:
• Are criminal in nature
• Result in serious actualharm
• May present imminent and substantial
endangerment to the public health or the
environment
• Are recurrences of violations for which a prior
enforcement response has been taken or for
which the facility has previously received
penalty mitigation by EPA, State or local
agency
• Are of a specific term(s) of any order, consent
' agreement or plea agreement
• Remain uncorrected after the 60-day extension
• Result in an economic benefit which has
accrued or been realized as a result of the
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7 The Environmental Leadership Program
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noncompliance. (Economic benefit will be
determined under the applicable EPA policies
on a case-by-case basis. ,EPA and other
participating regulatory entities may choose to
waive a penalty due to the insignificant amount
of any economic benefit).
EPA and the other participating regulatory entities
retain their enforcement discretion to review all
noncompliance (whether they are reported under
the ELP Enforcement Response Guidelines or
.discovered otherwise) to determine whether an
enforcement response is appropriate. If an
enforcement response is determined to be
appropriate during participation in the ELP, the
applicable Agency enforcement response policies
will apply.
WHY WOULD AN ELP
TERMINATION/SUSPENSION
OF PARTICIPATION OCCUR?
If an ELP participant fails to maintain the expected .
level of environmental performance as defined by
ELP, the facility may be terminated or suspended
from participation in the ELP. Examples of activities
that may result in termination or suspension include:
' Termination:
• Material nonconformance to ELP requirements
• Any federal or state criminal conviction of the
corporation for an environmental offense
• Appearance of facility or corporation on EPA's
delisting/debarment list :
• Delinquent penalties resulting from previous . •.,
enforcement action against the facility
• Federal or state criminal action pending against
facility or corporation for an environmental. '
« offense.
Suspension:
• Immediate Suspension:
• Violations that present an imminent and
substantial endangerment or a serious,actual
harm ",
, • Pending federal or state environmental judicial
action .
• Pending federal or state environmental
administrative action.
• Conditions that could lead to possible
suspension:
• Repeat violations as defined under EPA's
Incentives for Self-Policing Policy
• Filed citizen suits
.• Environmental criminal action pending against
an individual officer or employee.
• Criminal conviction for an environmental
offense against an individual officer or
employee
• Investigation of falsification or
, misrepresentation of the performance of the
facility/entity's EMS
• Misuse or misrepresenting environmental
performance in advertising or marketing claims
• Failure to live.up to tracking and reporting
requirements
'• Failure to live up to the ELP EMS principles.
Notification:
• To the extent possible, EPA intends to provide
the participating facility 30-days notice of intent to
terminate or suspend its participation. This -
written notification will indicate an opportunity to
discuss the decision and the reinstatement
process as detailed below.
Withdrawal:
• Any signatory to an ELP agreement may end their
participation in the ELP by providing 60 days
• written notice. '
Reinstatement:
• If a facility has been terminated or voluntarily
ends its participation iri ELP, reinstatement
requires reapplication and successfully meeting
all of the application and selection criteria. If a
facility has been suspended, EPA and the other
regulatory entities will make a case-by-case
determination of whether/ when, and under what
conditions the facility may be reinstated. This will
be conveyed in, writing to the facility.
WHAT ROLES WILL EPA
AND OTHER REGULATORY
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ENTITIES PLAY IN THE
ELP?
For the ELP to be truly effective, facilities should be
recognized as environmental leaders by EPA and
other participating regulatory entities, as
appropriate. The program has been designed with
the expectation that EPA and the State, at a
minimum, (but also other applicable levels of
government) will work in partnership to review
applications, participate in on-site reviews, select
facilities, and implement the program. It is
anticipated there will be a signed agreement
between EPA and other participating regulatory
entities detailing respective roles and
responsibilities. A model EPA-State agreement has
been developed.
Several States have or are in the process of
developing their own environmental leadership
programs. It is hoped that EPA and State efforts
can be coordinated to provide the greatest benefit to
qualified facilities, minimize duplication of effort and
confusion resulting from multiple, similar programs,
and conserve limited regulatory resources.
To partner in the implementation of ELP, other
interested regulatory entities are encouraged to sign
an Agreement with EPA agreeing to the program
criteria. If a regulatory entity wishes to add criteria
or identify additional benefits, this may be included,
in the Agreement.
Besides selecting the facilities, EPA and the States
will maintain an oversight role. It is important to
remember that EPA and States are not surrendering
or diminishing their authority to administer/enforce
environmental laws. EPA will inspect facilities in
cases of:
• Imminent and substantial endangerment to public
health or the environment
• Natural resource damage
• Receipt of a tip, complaint, or other information
concerning potential civil or criminal violations
• Due cause.
EPA hopes to partner with the States to offer
benefits (recognition, reduced inspections,
expedited permitting, etc.) from both EPA and the
State to the facilities.
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DRAFT October 1997
NEXT STEPS:
• Federal Register notice of proposed full-scale
program in Fall 1997
• Anticipated availability of the application for the
program in late'1997/early 1998 through the
Pollution Prevention Information Clearinghouse
(PPIC) or via the ELP web site.
(http://es.inel.gov/elp) ,
FOR MORE INFORMATION
CONTACT:
Tai-ming Chang, Director
Environmental Leadership Program
U.S. EPA
OECA/Office of Compliance
401 M Street, S.W. (2223-A)
Washington, DC 20460
tel.: (202) 564-5081
fax:(202)564-0050
http://es.inel.gov/elp
chang.tai-ming@epamail.epa. gov
The American National Standards Institute (ANSI)
may be contacted at
ANSI
11 West 42nd Street
New York, NY 10036
Tel: (212)642-4900 \
Fax:(212)302-1286 - .
E-Mail: INFO@ANSI.ORG
Internet: http://www.ansi.org
The Pollution Prevention Information Clearinghouse
(PPICt may be contacted at:
PPIG
U.S. EPA
' 401 M Street, SW, MC 7407
Washington, DC 20460
Tel: (202)260-1023
Fax:(202)260-0178 '
ppic@epamail.epa.gov
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