POLICY  PAPER
                This 5"—ol—n-n* t~ F^A InSight contains up-to-date policy information
                            -( nti  Administrator to all EPA employees.
 Innovation At EPA
EPA-N-175-93-020
July 1993
(Below is an address by Administrator Carol Browner
to the newly-created Environmental Business Council
on June 8, 1993:)

    I would like to congratulate the Environmental
Business Council for breathing life into an idea just
when we most need it. More than ever, this country
needs to forge  partnerships  between business and
government, partnerships infused  with  a common
belief  in   environmentally-sustainable  economic
development. More than ever, this country needs to
compete successfully in a global marketplace.  More
than ever, this country needs a dynamic envirotech
industry committed to innovation and  poised  to
expand.  The Environmental Business Council of the
United States promises to do all this and more. It's an
idea whose time has come, and I applaud all of you
who have helped it spring to life.
     ....We in the Clinton administration support your
objectives   wholeheartedly.    We   believe  in   a
government  that supports American businesses and
works to create American jobs. We have faith in the
ability of American companies to compete successfully
in the global marketplace, if the playing field is level.
Most important, we believe that economic growth and
environmental  protection  are not  only  compatible,
they're mutually reinforcing.  And  the  best  proof
would be  a domestic, booming,  job-creating, cost-
cutting, world-leading envirotech industry.
     This administration is  not disinterested in who
wins the international economic competition.  We will
not sit idly by as abstract economic forces choose who
has a job and who doesn't.  Make no mistake about it:
when it comes to the sale of environmental technology
in a highly competitive international market, we want
you to win. And President Clinton will do everything
he can to help you win.
     Today I want to talk about what EPA is doing to
help. And I want you to tell me, today and in the
weeks ahead, what more EPA could do.'
     There is one key aspect of your industry that EPA
is  especially interested  in  promoting—and  that's
innovation.  All of you would agree, I'm sure, that
innovation will  be one of the single most important
factors  affecting  your  future   success—both   as
individual businesses and as a unified industry.  In
this sense, the envirotech industry is no different from
any   other.   Whether  you're  selling   computers,
telecommunications equipment, mass transit systems,
or environmental services and clean-up technologies,
             you'd better have a leading-edge product or you're
             likely to miss the sale.
                 At EPA, we support technological innovation for
             environmental  problems  that  current  technology
             simply isn't capable  of solving, except at huge, and
             perhaps prohibitive, cost.  The cleanup of hazardous
             waste sites is a  good example.  If you multiply the
             typical cost  of  past cleanups by  the  number  of
             potential sites needing remediation,  total costs soon
             run into what the late Senator Everett Dirksen used to
             call "real money:"  as much as a trillion dollars  or
             more, according  to one study.
                 As  world  population  and economic  activity
             expand, innovative technologies will be absolutely
             essential. Without innovation, a doubling of the global
             population and quintupling of economic activity could
             sharply increase global pollutant loadings. Thus, the
             success of your industry—the widespread use of your
             products and services—is crucial  to  human and
             ecosystem  health on a global  scale.   In  short, your
             industry  needs  to  spur  innovation  out  of self
             interest—your self interest in making profits, gaining
             market share, and selling your products and services
             overseas.
                 But, innovation is also crucial because we simply
             won't  be  able  to   attain this nation's—or  the
             world's—environmental goals without it. A  strong,
             innovative  envirotech  industry  is  vital  to our
             environmental future.
                 That's why  I look forward to working  with this
             association and its member companies, and that's why
             innovation is central  to EPA's mission.  We not only
             want to see innovations in existing pollution  control
             and  clean-up  technologies,  we  look   forward  to
             innovations in system design,  production processes,
             and management practices that minimize  the need for
             control  or  cleanup.   We expect  innovations that
             improve energy efficiency, and innovations that reduce
             the pollution generated by agricultural practices and
             transportation systems.   And  we  are personally
             committed  to innovations in the  way EPA  does
             business,  innovations  that   foster  and   support
             businesses like yours.
                 EPA's regulations have been widely, and justly,
             credited with driving the  development  and use of
             technologies that now are considered "state of the art"
             in this country and abroad, Some U.S. environmental
             laws, in fact, require EPA literally to define "state of
             the art" pollution control technologies. But, over the
             past two decades,  we've learned that our regulations

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sometimes can have an inadvertent, pernicious effect   of  creating  North American Commissions  on  the
on technology development. By defining "state of the   Environment  and Labor,  whose principal functions
art," we can freeze innovation in its tracks. No one has   would  be to ..strengthen cooperation on labor and
an incentive to do more than the government requires,   environmenta^jrotectiqrl, a:n<3 to improve?eniorj:ement
So, the Clinton  administration is  going to push at   of  and  compliancy :vvjith.;-Qpr respective, laWs-and
every  turn for  regulatory  innovation that fosters   regulations.  I |?elieve. tlial giving the Environmental
technological innovation.                             Commission  ||  ^s|i|}hg :4r|^estiga^fre ^function will
    As we work on the reauthorization of Superfund,   inspire public confidence that the NAFTA'parties' will
the Clean Water Act, and the Safe Drinking Water Act,   strive for high levels of environmental compliance and
we're going to follow the example of the Clean Air   enforcement. Our challenge is to create commissions
Act, especially  the  acid  rain  provisions  that set   that respect national sovereignty and that can pursue
environmental targets  and  then gave  industry an   goals that none of the nations of North America can do
incentive to find the cheapest ways to hit them. As we   alone.  We understand, however, that many in the
review our environmental rules and regulations, we're   environmental  community believe that our proposed
going  to  look  for   opportunities  to  encourage   side  agreement  does not  go far  enough.    1  am
technological innovations that generate profits for you,   confident  that  we  will successfully resolve  their
strengthen  the American  economy, and protect the   concerns.
environment more efficiently.                             The President  has  proposed  a new, EPA-led
    We're also going to do  a better job helping your   environmental  technology initiative  in his FY 1994
industry  bring  fledgling  innovations  out  of the   budget. This initiative would be funded at $36 million
research  lab  and  into the  real world of  practical   in FY 1994, with an expected $1.8 billion to be spent on
applications.   As you know only  too  well,  this   the program over the next  nine years.   Under this
step—from lab to field—can make or break a new idea,   initiative, EPA—working with several other federal
It can make or break the company that invests in it.     agencies—would help private businesses overcome
    At EPA, we already  have set up a number of   impediments to the use of innovative technologies both
programs to help shepherd technological innovations   here  and abroad—impediments  such as  insufficient
into the field: our SITE Program  that evaluates the   capital,  uncertain  performance  capability,  poor
performance  of Superfund remediation technologies   information  flow  from  technology developers  to
under  field   conditions...our  joint  research   and   technology  users, the lack of facilities  to test new
development   agreements   under   the   Federal   technologies, and regulatory barriers. This is  a tall
Technology Transfer Act...our support for the National   order, but we're committed to it, we've already started
Environmental  Technology  Applications  Center in   it, and we look forward to your participation.
Pittsburgh, which facilitates the commercialization of       There's a lot more I could mention—the expansion
promising environmental technologies.  All this is a   of   EPA's  pollution  prevention   programs,  the
good beginning, but we have to do more. We will do   President's executive orders requiring the purchase of
more.                                               energy-efficient products,  and the  formation of the
    I intend to expand EPA's collaborative efforts with   Clean Car Consortium with the Big Three U.S. auto
other federal  agencies  to  test  innovative clean-up   companies. But, the message is  unmistakable.  This
technologies at federal facilities.  I intend to establish   administration  is intent on fostering innovation  in our
procedures that allow EPA labs to be used to test and   national efforts to protect the environment...regulatory
evaluate  innovative technologies developed outside   innovation...design   and   process
EPA.   I intend to expand  the Agency's cooperative   innovation...technological innovation.  We are  intent
programs  for developing,  testing, and evaluating   on helping your industry gain market share abroad
specific categories of innovative technologies.           and create  new jobs  at home.  We are intent on
    EPA  is  also  a part   of several multi-agency   building a  strong economy that grows  in harmony
initiatives that have been  established  by the Clinton   with a  healthy  environment.
administration.   These  initiatives,   in  one  way or       So, at EPA,  we   welcome  the birth  of  the
another, are all meant to support a dynamic, domestic   Environmental Business  Council of the United States.
envirotech industry.  On Earth Day, for example, the   I look forward to hearing your ideas on  how we can
President asked the Department of Commerce to lead   better  link the  health  of  your  industry   with
a  multi-agency  effort  to  increase exports of  U.S.   environmental  health. We've got a big job to do. Let's
environmental technologies.  EPA and the Department   get on  with it.  Thank you.
of Energy also will be involved....
    ....[As for NAFTA], based on  the  discussions
thus far, there is a clear agreement  on the  merit
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