950F94001
             UNITED STATES ENVIRONMtlN f AL KnoTECTION AGENCY
                             WASHINGTON. D C  20460
                                  OCT I 9  !9fc
MEMORANDUM
SUBJECT:
FROM:
TO:
            Public-Private Partnerships on Behalf of the Global
            Environment: Principles for Preserving EPA's Credibility

                                  ŁZV    •  /|V       7  *
            David M. Gardiner     i^jl ^>-*il fc-Wa-*-**-*^
            Assistant Administrate* V^-*^
            Office of Policy, Plannin  Mid JE valuation
            William A. Nitz4j[>^  V
            Assistant AdndnKtrator
            Office of International Activities

            Assistant Administrators
            Regional Administrators
            Associate Administrators
            General Counsel
            Inspector General
      Over the last two  years, a  number  of Presidential initiatives  have
emphasized the link between U.S. economic and environmental objectives.  One
of the best  examples of  this linkage, is President Clinton's Environmental
Technology Initiative (ETI), which aims to promote our environmental protection.
goals, while enhancing the economic standing of the United States in the world
marketplace.  In addition, the Administration has proposed  a* comprehensive
strategy  for enhancing U.S. environmental exports in the inter-agency report,
Environmental  Technologies Exports:   Strategic Framework for U.S. Leadership,
which includes a number of recommendations specific to EPA.

      EPA has a leading role to play in responding to these Presidential initiatives.
Our domestic regulatory programs, as well as voluntary programs such as the
"Green" initiatives, create the market for environmental technologies and shape
the very structure ofr the industry.  Research and development programs expand
the tools available for  environmental protection  and foster the technological
innovation that drives competitiveness.  Moreover,  our international technical
.assistance and capacity-building  programs enhance  worldwide demand for
environmental technologies and services, thereby creating potential commercial

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opportunities'for U.S. business and industry.  Involving the private sector more
directly in the implementation  of our international  programs will help EPA
achieve our environmental objectives  overseas, while contributing to broader
Administration goals on U.S. competitiveness and trade.

   .   At the same time, EPA's partnership activities with the private sector on
behalf of  the  global environment must be fully consistent with our statutory
authority  and environmental  mission.  (Congress  and the U.S.  taxpayer have
entrusted  EPA with powerful responsibilities necessary to fulfill the Agency's
environmental mandate.   The promulgation of regulations,  the granting or
denying of permits,  and the initiation  of enforcement actions/for'example, are
responsibilities that can have profound implications for the financial viability of
individual companies  and firms.  The delegation of these responsibilities is
predicated on Congressional and public trust in  EPA's integrity and its ability to
make honest, credible, and independent technical judgments.

      EPA's credibility is also an important  factor in our dealings with other
countries.   Foreign governments,  international  organizations,  and private
individuals throughout the world actively seek  our advice on a broad range of
environmental policy, technical, and other issues. EPA's reputation for honesty
and objectivity is what differentiates our advice from that which could be obtained
elsewhere.                •

      In order to provide you some guidance on how you and your staff can lead
and participate actively in  these international activities, while preserving  EPA's
credibility and integrity as an institution, an EPA task force has developed a set of
operational principles.  These principles  suggest that Agency officials use the same
professional and "common sense" approaches to these problems internationally as
they do when dealing with domestic situations.

      We recommend that you  distribute these operational principles widely
throughout your offices.  Ultimately, the responsibility for deciding whether and
how to proceed with a specific action rests with each of you. You may want to
suggest to your staff that when these operational principles are applied to a specific
action and appear to raise  significant potential issues/ they elevate the question
within your  organization,  and if necessary,  to  you.   This process will  allow
everyone to implement the  Agency's international programs aggressively without
fear  or confusion that  the activities might somehow conflict with our Agency's
overall. mission.

      Thank  you for your  cooperation. If you have  questions about the Task
Force's work, please call Jamison Koehler of OIA at (202) 260-4878 or Connie Sasala
of OPPE at (202) 260-3554.

Attachment

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           PUBLIC-PRIVATE PARTNERSHIPS QN BEHALF OF THE
                        GLOBAL ENVIRONMENT:

          Operational Principles for Use in Preserving EPA's Credibility
 CO    What is the environmental  rationale for the activity?  The statutory
       authority for EPA activities should  be documented and the activities
       should  be supported by strong underlying environmental rationale, with
       commercial considerations dearly secondary to EPA's participation.

 (2)    Is the program or protect  an  appropriate  activity for  public sector
       involvement? Public sector resources should be used to leverage, not
       displace, private sector resources and expertise.

 (3)    Is the activity appropriate for EPA as opposed to another Federal agency?
       EPA should ensure that it complements, and does not duplicate, activities
       carried  out by the Department of Commerce or other Federal agencies.

 (4)    Does  EPA's involvement  imply endorsement  or  favoritism  for
       participating private sector parties?  5 GF.R., Section 2635.702 (e) precludes
       EPA employees from endorsing any product^ service, or enterprise in the
       absence of specific statutory authority.  The mvolvement of a particular
       company in an EPA activity may imply — especially to a foreign official
       unfamiliar with U.S. culture, language, and system of government - that
       the particular company or party is the only or best source of technology or
       expertise.  EPA should ensure that the foreign party is familiar with the
       rationale and procedures for  involving a particular company or firm.
                                               _-"": •;•-'. .-• ".'"."'''Ľ
 (5)    Can EPA's  participation in  the  activity beconducted professionally.
'-      impartially,  and  objectively?  EPA  officials should give their  best
       unfettered professional advice to public and private sector, individuals and
       should  avoid any situation in which it would appear otherwise. Technical
       advice  should be  given in generic, non-prejudicial terms, based on the .
       same "common-sense" approach that would be employed domestically.
       Technical advice should include the widest range of options possible and
       not preclude consideration of other technologies or companies, including
       foreign ones. This does not mean that EPA officials need to specifically
       educate themselves on foreign sources of technology or expertise.  It does
       mean that they should adhere  to the same high standards  of technical
       advice  that they apply domestically, tied as much, as possible to  Agency
       policy,  and  not temper their advice to support some commercial objective.

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(6)    Does EPA's role in the activity jeopardize the Agency's ability to fulfill its
      domestic regulatory or enforcement responsibilities? No action should
      undermine or 'detract from the Agency's domestic reeulatorv decisions or
      enforcement programs:

(7)    How were private sector parties selected  for participation  in the
      project?  EPA cannot favor, nor can it appear to favor, any particular
      company.or firm.  Participation should be available  to any qualified
      party, with equitable and transparent selection criteria dearly set out in
      advance.  Where possible, EPA should use a "third party" (such as a
      tirade association) to make final selection decisions and ensure that the
      organization  uses  objective criteria and an  open process to choose.
      participants.                                               ,

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