.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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 2 The Environmental Leadership Program
                        DRAFT October 1997
  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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 3 The Environmental Leadership Program
                        DRAFT October 1997
      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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 4 The Environmental Leadership Program
                        DRAFT October 1997
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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  5 The Environmental Leadership Program
                        DRAFT October 1997
   • 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
                        DRAFT October 1997
     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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 8 The Environmental Leadership Program
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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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 9 The Environmental Leadership Program
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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