MANAGEMENT REVIEW OF THE OFFICE OF AIR QUALITY PLANNING AND STANDARDS IV) cv \ FINAL REPORT *. Program Evaluation Division Office of Management Systems and Evaluation/OPPE August 30, 1984 UoSo Environmental Protection Agsncy I-ibrary, Room 2404 PH-211-A 401 M Street, S.W. ff-u:-viir.c-+on, DC 20480 ------- TABLE OF CONTENTS SECTION I. INTRODUCTION II. KEY FINDINGS PAGE 1 2 III. FINDINGS A. STANDARD-SETTING B. SUPPORT FOR IMPLEMENTATION AND ENFORCEMENT C. NATIONAL PROGRAM MANAGEMENT 7 10 15 IV. RECOMMENDATIONS A. STANDARD-S ETTING B. SUPPORT FOR IMPLEMENTATION AND ENFORCEMENT C. NATIONAL PROGRAM MANAGEMENT D. GENERAL 18 21 24 26 ------- MANAGEMENT REVIEW OF THE OFFICE OF AIR QUALITY PLANNING AND STANDARDS I. INTRODUCTION This report summarizes the results of a management review of SPA's Office of Air Quality Planning and Standards (OAQPS) conducted by the Program Evaluation Division (PED) at the , request of the Assistant Administrator for Air and Radiation. l The PED project team consisted of Irv Auerbach, Fiona Jarrett, Hugh Miller, Shirley Staton (project secretary), and David Ziegele (project manager). The Assistant Administrator requested that the study team explore the following questions: o What is OAQPS' mission? How is it/should it be changing? o How well does OAQPS perform its principal functions and manage its relationships with other offices? o Are there organizational or procedural changes that would correct any problems identified in the study? To obtain advice on what the study should encompass, the Project Team talked with the (at that time Acting) Director of OAQPS and all five division directors, the director of OAQPS1 Office of Regional Programs, and three Regional Office (RO) Air Management Division directors. Other preliminary steps included review of relevant documents and collection of data from OAQPS to enable the project team to get a perspective on the relative emphasis placed on OAQPS1 many activities. To gather information, the project team interviewed over 100 people in and outside of EPA. The interviewees included OAQPS1 Acting Director, all the division directors, most branch chiefs and section chiefs, and other staff members; the directors of the Air Management Divisions in Regions I, III, and V, plus many other staff members in these ROs; either division directors or Air Branch chiefs in most of the other ROs; members of the AA's staff; staff in the Office of Policy, Planning and Evaluation, the Office of General Counsel, and the Office of Enforcement and Compliance Monitoring; former EPA officials; four State and local air pollution control program directors; Congressional staff members; and others. For the purpose of presenting the information gathered in this study, OAQPS' program has been divided into three major functional categories, listed below with examples of activi- ties conducted in each category: ------- -2- 1) Establish, Review, and Revise NationalStandards - National Ambient Air Quality Standards (NAAQS) - National Emission Standards for Hazardous Air Pollutants (NESHAPs) - New Source Performance Standards (NSPS) 2) Support Implementation and Enforcement - Formulate and issue regulations governing the , development of State Implementation Plans (SIPs) and coordinate EPA review of SIPs. - Develop and issue national policies and program guidance applicable to RO and State air program activities. - Provide technical support, primarily to ROs but also to States in some cases, to enable them to carry out their responsibilities in the areas of implementation and enforcement. - Conduct or support training classes and workshops for professionals in the field of air pollution control. 3) Provide Leadership andDirection as National Program Manager - Formulate and defend budget requests for the air program, including RO air activities. - Promote consistency among ROs and States. - Provide leadership in dealing with emerging issues in the field of air pollution control. II. KEY FINDINGS SUMMARY : While the people interviewed for this study have had varying experience with OAQPS and therefore gave differing and sometimes conflicting answers to our questions, there is an underlying consensus on three general points, which will be discussed in more detail later in this report: o OAQPS will have to maintain the capability to perform its three major functions (i.e., standard-setting, sup- porting implementation and enforcement, and providing ------- -3- national leadership). People interviewed for this study identified a number of concerns about the way in which OAQPS performs these functions. However, it is clear that the functions themselves are (and will continue to be) essential to the air program and that OAQPS is uniquely equipped to perform them. o The environment in which OAQPS operates has been chang- ing and will keep changing. (The operating environ- ment includes the statutory mandates under which EPA deals with air pollution; the nature of the air pollu- tion problems facing the nation; the status of the nation's efforts to deal with those problems; the availability of technological, financial, and human resources, and so on.) To deal effectively with this changing operating environment, OAQPS must constantly seek ways to adapt. o Over the past several years, OAQPS has adapted rather well to some of the changes that have occurred, but it has not gone far enough to meet all the new challenges that have emerged. In addition, interviewees outside OAQPS (who made up slightly more than one-half the total) agreed without exception that OAQPS generally is exemplary with respect to professionalism and technical competence. Both implicitly and explicitly, these people indicated that while they have been and still are dissatisfied with some aspects of the Agency's air program, and with OAQPS itself in many cases, they hold the OAQPS staff in high esteem. ELABORATION OF THE KEY FINDINGS QAQPS will have to maintain the capabilitytoperform its three major functions. OAQPS1 role in setting national standards, supporting implemen- tation and enforcement, and serving as National Program Manager is, and will continue to be, essential to the Federal-State- local effort to deal with air pollution. In standard-setting, OAQPS is still completing work on the priority list of New Source Performance Standard (NSPS) cate- gories. Studies currently underway may lead to a recommenda- tion to set a new National Ambient Air Quality Standard (NAAQS) for fine particulate matter. Once NSPS and NAAQS are set, the Clean Air Act requires that EPA review and, if necessary, revise the existing standards on a periodic basis. In the area of hazardous air pollutant standards, the Agency has committed to making listing decisions by the end of 1985 on twenty-five potentially hazardous pollutants, a process ------- -4- which will result in the setting of at least some National Emission Standards for Hazardous Air Pollutants (NESHAPs). Proposed changes to the Clean Air Act may add to"the Agency's obligations in making listing decisions on, and possibly setting standards for, hazardous pollutants. Additionally, OAQPS has become involved in the development of "non-Clean Air Act" air standards—it has recently begun developing hazardous pollutant emission standards for facilities regu- lated under the Resource Conservation and Recovery Act. Thus, unless unforeseen amendments to the Clean Air Act are enacted which significantly curtail OAQPS1 responsibilities in the setting of stationary source and ambient standards, activity in these areas can be expected to continue. From the interviews, it is also apparent that State and local agencies, while more capable now than they were a decade ago, will continue to have a significant need for EPA support if they are to carry out the programs delegated to them under the Clean Air Act. As a practical matter, State and local agencies have few or no alternative sources of the products and services OAQPS provides. Technical support (a key compo- nent of support for implementation and enforcement) is the only service that might be available from other sources, but few State and local agencies appear to have the resources to meet their technical information needs by purchasing assistance in the market. Moreover, the difficulty of isolating technical issues from policy considerations further limits State and local agencies' ability to obtain meaningful technical guidance from contractors and consultants. < In short, State and local agencies cannot get national stand- ards, policy and program guidance, technical support (with some exceptions) , or national program management from other sources, in most cases regardless of how much they could or would be willing to pay for .such products and services. OAQPS is uniquely equipped to provide them and must maintain the ability to do so for the foreseeable future. It is conceivable that the standard-setting function, in par- ticular, may decline somewhat in importance in dealing with some current and future air pollution problems. However, the study turned up no evidence that standard-setting or either of the other major functions will become superfluous in the foreseeable future or that any new functions will emerge as a basic part of the OAQPS program, equivalent to these three. The environment in which OAQPS operates is changing and will cont inue to change. Over the last several years, there have been many changes in the conditions under which OAQPS conducts its business. Because the air program {indeed, all EPA programs) is con- ------- -5- ducted in an environment affected by advances in science and technology, national and regional economic trends, and shifts in public and political views about environmental problems, further change is certain to occur. Following are brief descriptions of some of the major changes that have occurred during the 1970s and 1980s (together with, in some cases, indications of changes that can be expected in years to come): o The Clean Air Act was significantly modified seven years ago, thus adding new dimensions to the air program. For the past few years, the Congress has been debating further changes, including amendments dealing with acid rain and air toxics. o State and local agencies have become increasingly important participants in the air program. Through delegations of authority from EPA, and by virtue of continuing growth in their own technical and managerial capabilities, they now play major roles not only in developing and implementing plans for NAAQS attainment and conducting air quality monitoring, but also in assuring compliance with NSPS and NESHAPs. In addition, State and local officials (with support and encouragement from OAQPS) have been playing an increasingly influential role in the formulation of policies and programs under the Clean Air Act. o The number of groups demanding a voice in decision- making under the Clean Air Act has grown, as have their knowledge of the technical and policy issues and their skill at presenting their views. These groups include not just governmental, industrial, and environmental organizations but also groups within EPA and other Federal agencies. o Particularly during the last few years, there has been an increasing demand that OAQPS (and other EPA program offices) use sophisticated analytical techniques in setting program priorities, analyzing alternative regu- latory options, and so on. Not only EPA decision- makers but also regulated industries and other inter- ested groups have come to expect the use of techniques such as quantitative risk assessment and cost-benefit analysis. o New and complex issues keep getting added to EPA's "agenda" of air pollution problems. Typically, they are problems that have existed for many years but did not get much public attention and therefore did not generate much demand for control action. Acid rain and toxic air pollutants are the most conspicu- ous examples, along with inhalable particulatf; matter, which is now the subject of a proposed NAAQS. ------- -6- Unfortunately, older problems are not going away. While the nation has made significant progress in dealing with them, problems such as sulfur dioxide, particulate matter, and ozone still are significant in many areas. Another example of an "old" problem which has not gone away (and which OAQPS has recog- nized as needing its continued attention) is com- pliance. Reported rates of compliance with SIP regulations, NSPS, and NESHAPs are high, but the reported rates generally are based on annual or semi- annual inspections, and do not necessarily signify that compliance is continuous* OAQPS has responded quite well to some changes, but has not moved far enough or fast enough in other cases. By all accounts, OAQPS has done an outstanding job of adjust- ing to State and local air pollution control agencies' in- creasing interest in helping to shape the policies and prog- rams they carry under delegated authority from EPA. OAQPS has supported (with funds under Section 105) the efforts of the State and Territorial Air Pollution Program Administrators (STAPPA) to serve, together with the Association of Local Air Pollution Control Officials (ALAPCO), as focal points for State and local involvement in OAQPS1 program development and policy formulation. OAQPS works closely with STAPPA and ALAPCO on many issues and initiatives, for example, the development of a national program for evaluation of State air pollution control agencies. State and local officials interviewed for this study generally expressed satisfaction with OAQPS1 efforts to enhance the relationship between EPA and their agencies. This study found that OAQPS has made a much less satisfactory adjustment to most of the other changes that have occurred. Findings about problems in these areas are discussed below in sections dealing with each of OAQPS1 major functions. Perspective In fairness to OAQPS, it must be noted that OAQPS cannot control all the factors that affect the performance of its day-to-day functions or the extent to which it can adapt to changes in its operating environment. Factors that are important in this regard include limitations on the resources available to OAQPS, the need to deal with legal challenges to air standards and regulations and with the results of such litigation, EPA leadership changes, and the fact that many people in EPA with diverse interests often are involved in decision-making on air issues. There is some tendency among OAQPS :sanagers to point to such factors as the explanation for problems in the air program, ------- -7- including many of those identified in our study. However, without denying the significance of these factors, we have concluded that OAQPS could do more than it historically has to shape the events that affect it, instead of being shaped by them to such a substantial extent. III. FINDINGS This section presents the study findings in each of OAQPS1 major functional areas (standard-setting, support for imple- mentation and enforcement, and national program management). For each area, the findings are divided into "Strengths," in which OAQPS1 performance was found to be particularly good and should be sustained, and "Problems," where the study team's information-gathering and analysis indicate that OAQPS' activities have not met the needs of the Agency or its constituents and need to be strengthened. A. Findings: Standard-setting Strengths All interviewees credited OAQPS with developing scientifically and technically sound standards. OAQPS clearly does a thorough job in this area. The only reservations expressed on this point were comments to the effect -that it might sometimes be better to give up a bit of scientific and technical polish in return for timeliness. Problems Delays in issuing national standards are a concern expressed by almost all RO and State staff interviewed for this study. Delay tends to cause uncertainty, which in turn makes it difficult to sustain the momentum of air pollution control programs. As soon as the word is out that an existing national standard might be altered or replaced, pressure against compliance with that standard begins mounting. To understand this concern, it is necessary to recognize that people in the field use the term "delays" to characterize not only instances of failure to meet statutory or other deadlines but also any situation in which it.seems to take the Agency an inordinately long time to complete action on an issue. This is particularly true where the nature and timing of the action will have a profound effect on the work of ROs and State and local agencies. ------- -8- o The delay in issuing a national ambient standard for inhalable particulate matter has caused widespread concern. EPA's strategy for dealing with particulate matter for most of the past several years has been based on an expectation that an inhalable particulate standard was about to be promulgated. As a result, there have been prolonged problems in developing and implementing State Implementation Plans for the exist- ing primary standard for Total Suspended Particulates (TSP). o Also cited frequently was the seven-year lag between invalidation of part of the Agency's first set of regulations to control demolition/renovation of asbes- tos-containing structures and the recent reissuance of the regulations and implementation of a full regula- tory program. o Many interviewees were very negative about the time it takes to complete the Agency's review of a national ambient air quality standard. While most people seem to understand the rationale for reviewing NAAQS every five years, they cannot understand why such reviews should take so long and thus generate uncertainty for long periods. A separate study of the NAAQS process currently is being conducted by the National Evaluation Staff in the office of the Assistant Administrator for Air and Radiation. In many cases, delays have occurred not only within OAQPS but also in EPA's Washington, D.C. headquarters offices after OAQPS has delivered packages to the Assistant Administrator's office. There are many reasons why such delays occur. Some are beyond OAQPS1 control. For instance, delay is inevitable when EPA leadership changes and the new leaders want to take a new approach to a standard-setting project that is near completion. Other causes of delay include many of the prob- lems described in the rest of this section, several of which are attributable to the way OAQPS performs its standard-set- ting functions. A major source of delay is OAQPS' chronic difficulty in get- ting its standards and regulations packages through EPA's internal review process. This difficulty is attributable at least in part to the following factors: o OAQPS' failure to adapt well to the increasingly influejvtial role of non-OAQPS participants in EPA's internal review process. Some OAQPS staff members get along quite well with other "players" (including, in particular, the AA's staff and OPPE) and seem able to keep such people involved and get the benefit of their ideas without losing control. However, others, as well as some OAQPS managers, seem not to ------- -9- have accepted the fact that the non-OAQPS partici- pants have a legitimate role (despite narrow interests in many cases) and cannot be ignored. It should be pointed out that the large number of non- OAQPS managers and staff involved in regulation devel- opment and review makes consensus-building and coordi- nation among all the parties a complicated process. It also is apparent that some of the non-OAQPS parti- cipants sometimes behave in ways that tend to alienate OAQPS staff, e.g., by waiting until the last minute to raise issues that should have been identified much earlier or by making objections to a package after failing to attend working group meetings. Even so, our major finding here is that OAQPS has not made a sufficient effort to "work the system," i.e., to work closely enough with other participants in the process, not only at staff levels but also at manage- ment levels, to be able to understand their concerns and deal with them before the eleventh hour. o Failure to present a sufficient range of options. To some extent, this complaint reflects people's recollections of specific cases in which their own favorite option was not included among those offered by OAQPS. There is also some indication, however, that OAQPS at times has excluded options that were not in the mainstream of good engineering practice, even though other EPA offices believed that the ex- cluded options should at least be presented to deci- sion-makers. o Shortcomings in OAQPS' presentations to decision- makers. A number of interviewees commented that presentations by OAQPS often are focused too much on technical details, not enough on policy issues, and are often too involved and complex. Our own obser- vations have indicated that OAQPS generally does a better job of communicating with people in the air pollution control field (including State and local officials) than with EPA analysts and decision-makers. o Uncertainty (and controversy) about the use of analy- tical techniques such as risk assessment and benefits analysis. While OAQPS has a well regarded staff in the area of benefits analysis (the only such staff in EPA outside OPPE), the extent to which it can and should be used under the Clean Air Act remains a subject of dispute among all interested parties (and even among OAQPS staff members) and a cause of delays during the Agency's internal review process. In the area of risk assessment, OAR staff and management and OAQPS management appear to have reached agreement as to how risk assessment is to be incorporated into ------- -10- OAQPS* analysis and decision-making on regulation of air toxics under Section 112. However, there are indi cations that OAQPS staff do not fully agree with or understand the approach decided on by management. of a clear understanding about ROs1 and States' role in the standard-setting process. One symptom of this problem was the complaint from some ROs and States that OAQPS does not seem to give serious con- sideration to information they provide, particularly in the NSPS program. OAQPS has indicated that RO and State input is considered but acknowledges that it often is not reflected in the standards issued. For example, emissions data submitted by States and ROs often are not accompanied by data on operating conditions during the testing and therefore must be set aside. Our conclusion is that a large part of the problem boils down to the lack of feedback from OAQPS — ROs and States often have no knowledge of what was done with the data or comments they submitted. o Lack of a clear delineation of responsibility for shepherding packages through internal review. Stand- ards and regulations packages tend not to move crisply through EPA's review process. Left alone, they are likely to languish on someone's desk for long periods. It is not — and apparently never has been — clear whether OAQPS is responsible not only for delivering packages to the AA's office but also for shepherding them through internal review. o Lack of a well-defined process for reviewing and making decisions on regulatory packages in the AA's office. The only explicit information offered on the role of the AA's staff in reviewing regulations was a statement that the staff reviews regulatory packages to ensure that a full range of options is presented and that all options have been fully analyzed. However, under current operating procedures, analysts in the AA's office appear to have considerable freedom to raise any questions that interest them and to hold up packages for long periods of time. B. Findings: Support for Implementation and Enforcement OAQPS supports implementation and enforcement by providing policy and program guidance and by providing technical sup- port and guidance, primarily to EPA's Regional Offices. That guidance and support has a two- fold purpose: to enable ROs to carry on these implementation and enforcement activities not delegated to States and to oversee and assist State agencies in carrying out activities that have been delegated. ------- -11- For the most part, OAQPS interacts with the ROs and seldom provides guidance or support directly to State agencies (except for services such as the BACT/LAER Clearinghouse and training programs). Strengths — Policy and Program Guidance and Technical Support While some may assume that delegation of authority to EPA's Regional Offices and State air pollution control agencies reduces the importance of OAQPS functions other than standard- setting, it is clear that ROs and State agencies alike depend heavily on OAQPS to support implementation and enforcement activities. In general, the RO and State people interviewed for this study applauded OAQPS1 efforts to provide such support and expressed satisfaction with the support they get in many areas: o National policy documents and written guidance pro- vided when new initiatives are begun generally are well regarded. There seems to be a correlation between the extent of RO and State participation in the preparation of such materials and the ROs1 and States' perception of their quality and usefulness. The Air Sanctions Policy developed last year is an example of how RO and State participation can and should be managed to produce a good product that receives wide support in the field. o Interviewees generally said they are satisfied with the guidance provided in the areas of air quality modeling and monitoring and with OAQPS1 responsive- ness to requests for support in these areas. There were also a number of favorable comments about the activities of the Standing Air Monitoring Work Group. o ROs and States generally said that SIP processing has improved substantially over the past few years. o Clearinghouses established by OAQPS to enable ROs and States to share their experience in dealing with specific problems are considered very useful. Problems: Policy and Program Guidance For the purpose of this study, the function of providing pol- icy and program guidance is considered to include tasks such as preparing nationally applicable policies dealing with issues arising under the Clean Air Act (e.g., sanctions policy), providing clarification and interpretation of exist- ing policies and regulations, and providing guidance on the development of RO and State programs to carry out specific provisions of the Act or national standards and regulations ------- -12- issued under the Act. OAQPS has a responsibility for provid- ing guidance not only at the time a new program is undertaken or a major new national standard is issued but also throughout the life of programs and standards. Following are brief descriptions of the problems that seem most prevalent and significant: o Guidance provided at the time new initiatives are undertaken sometimes is too detailed (e.g., PSD/NSR guidance is needlessly complicated) or unrealistic {e.g., ROs and States claim not to have sufficient resources to inspect the number of asbestos demolition-renovation sites necessary to comply with OAQPS1 guidance). o While OAQPS welcomes feedback from ROs, it does not methodically follow up its guidance to determine whether ROs are having problems interpreting and applying it. , o ROs generally find it easier to obtain responsive guidance through informal staff-level contacts than through written requests through the OAQPS chain of command. Guidance sought through channels often takes a long time to obtain and sometimes is found to be vague or noncommittal. o While OAQPS currently has a system of sending out significant guidance documents to ROs and States on an as-needed basis and in a compiled form every six months, not all Regional Office and State and local agencies are receiving information or materials in time for them to make best use of them. As an example, ROs and States mentioned cases in which guidance pertinent to SIP revisions did not reach them until the SIP revisions were completed. Also, some important guidance is given orally and thus travels by word-of- mouth, making it subject to distortion. o Where OAQPS has followed up written guidance with workshops to explain new policies or programs, that has been very helpful, but such follow-up does not occur often enough (primarily because of the cost of conducting workshops in the field). RO and State and local managers and staff generally are more receptive to policies and guidance they play a role in develop- ing than those EPA Headquarters develops unilaterally, and these people said that OAQPS has been increasingly willing to involve them in its policy and guidance development. Applicability Determinations — The fact that OAQPS no longer makes applicability determinations with respect to NSPS and NESHAPs was cited by all.ROs as a significant gap in the ------- -13- guidance available to them. ROs are concerned not only that the lack of national guidance on applicability issues may lead to inconsistency but also that it is inefficient and resource-intensive for ROs to make their own determinations. SIP Processing — While SIP processing has improved, as noted above, it still takes longer in most cases than many people in ROs and State agencies think it should. It still can and sometimes does get bogged down (especially where there are sensitive issues), partly because so many offices are involved in the review process. To States, in particular, it seems ironic that EPA can take fourteen months to complete a SIP review (and believe it is doing quite well) after giving States just nine months to prepare a new or revised SIP. Problems: Technical Support Technical support includes information and assistance in the areas of science, technology, and engineering. In the air program, the areas in which ROs and States often need techni- cal support include ambient air and source monitoring, emis- sion measurement, air quality modeling, and control technology. To varying degrees, OAQPS provides technical support in all these areas. ROs are OAQPS' primary clients, but much of the technical support they receive is passed through to States. Nearly all interviewees expressed the same basic concern about OAQPS' technical support activities—that they are not sufficient to meet the ROs1 and States' needs. Following are some specifics: o OAQPS is not providing enough expert help to enable ROs and States to make determinations about RACT, BACT, and LAER and to prepare and prosecute cases against alleged violators of Clean Air Act standards and regulations. In some instances, OAQPS simply lacks the needed expertise (sometimes because OAQPS itself has relied on contractors). In others, OAQPS1 response often is that it lacks the travel funds to send staff or that the staff members in question can- not be spared from other duties (usually standard- setting} . o OAQPS is not investing enough to meet technical sup- port needs in areas such as implementation of a NAAQS for inhalable particulate matter (where there are con- cerns about lack of emission factors, ambient air data, and other needed information), VOC compliance (where ROs and States need help evaluating regulated industries' claims that they are unable to comply with SIP regulations adopted on the basis of information .provided in the Control Technology Guidelines issued by OAQPS), ozone modeling (where OAQPS withdrew support ------- -14- from a study that northeastern States had hoped would provide the basis for mid-course corrections to their ozone SIPs), and air toxics (where ROs and States all recognize that OAQPS is now moving toward providing technical support but maintain that it's too little and started much later than it should have). o When States are adopting regulations in accordance ; with EPA's requirements for SIPs, they sometimes ask that the Agency send staff members to testify about specific technical aspects of the SIP require- ments (e.g., why the State must use a particular dispersion model). Similarly, when ROs or the Office of Enforcement and Compliance Monitoring (OECM) are involved in enforcement litigation, they sometimes need expert testimony or assistance in preparing cases. ROs and OECM indicate that OAQPS often is unwilling to provide help in this area. Lack of staff time or travel funds often is the reason given, but some people in EPA sense that OApPS staff members responsible for standard-setting activities generally are reluctant to get involved in adversarial proceed- ings between EPA and industry. o ROs and States voiced strong support for OAQPS training programs, but were critical of the resource cutbacks that have already been made in the training area and concerned about the impact of further reductions. While conceding that they have no hard data to demon- strate the cost-effectiveness of the training programs, RO and State people maintain that such programs serve several purposes: - They enable new employees to become productive sooner than they would just through on-the-job training. - They enable all staff members to deal with problems such as VOC compliance, which is far more complex than the problems that previously constituted most of the work done by field inspectors. - They build morale and improve proficiency through- out an organization. There is concern that continued cutbacks in training, when joined with limitations on the availability of technical support and the increasing complexity of the air pollution problems facing the nation, will have a far more devastating effect than any of the three would alone. o There is some concern about the existing systems for storage, retrieval, and analysis of air data. Some people in ROs expressed the view that the existing ------- -15- systems are obsolete, difficult to use, and not integrated. Common concerns included difficulties in getting access and in updating and editing. In addition, the lack of a link among the systems was identified as a limitation on their usefulness. There was less criticism of the Compliance Data System (CDS) than of the others. Our impression was that ROs think the Aerometric Information Retrieval System (AIRS), which has been in development for several years, will solve many of .their data system problems and are impatient to see it up and running. C* Findings; National Program Management For the purpose of this study, we have defined National Pro- gram Management to include responsibility for tasks such as: o preparing and defending budget requests (which OAQPS does for its own and the ROs1 activities), o ensuring that the ROs1 views are considered during policy deliberations at EPA Headquarters, o providing guidance to the ROs on State grant negotia- tions and on review and evaluation of State programs, o ensuring consistency among ROs and States in their implementation and enforcement activities, o keeping ROs informed of the status of policy and program development activities at the HQ level, o keeping itself (i.e., the HQ Program Office) well informed about the progress being made and problems being encountered in the field, and o providing leadership in identifying and dealing with emerging problems, as well as performing a number of other administrative-type tasks. Strengths In general, interviewees seemed to think that OAQPS plays the National Program Manager role well. OAQPS tends to be more pragmatic and far less heavy-handed than other program offices and less inclined to engage in second-guessing. Following are other specific points on this subject: o OAQPS played a major role in making the associations of State and local air pollution control officials', (STAPPA and ALAPCO, respectively) a cohesive and influential force in the formulation of EPA policy ------- -16- under the Clean Air Act. OAQPS1 recognition of the need to strengthen these groups and its success in doing so were frequently cited as one of its most significant accomplishments. o Also hailed as a significant accomplishment was the development of a national system for evaluation of State and local air pollution control programs. Known as the Air Audit System, it was developed jointly by OAQPSf ROs, and State and local officials; in fact, State officials chaired each of the work groups that developed the audit criteria. While RO staff members noted that conducting the audits has been resource- intensive, there was almost universal agreement that the audits were worthwhile and often provided new information and new insights, even to RO staff members already familiar with the programs being audited. The only major concern expressed during our interviews was the question of how the results would be used. One State official said he hoped they would be used not only to identify program areas in which OAQPS ought to provide better guidance and monitor State activities more closely but also, and more importantly in his opinion, to build a case for getting more resources for the air program. o OAQPS does a good job of fostering communication and team-building at the RO branch-chief level. RO staff have found the quarterly meetings of air branch chiefs and the annual technical conference at Southern Pines to be particularly useful. Problems There are problems in four key aspects of OAQPS' performance as National Program Manager: o OAQPS historically has not done a very effective job of presenting and defending budget requests for the air program. RO and State officials who have had an opportunity to review the budget requests prepared by OAQPS or witness presentations all said that OAQPS tends to be timid and unimaginative. Some of them also said that OAQPS is much too willing to "find a way" to take on new responsibilities without adequate resources. Our own observation is that OAQPS seems to treat the budget process as an unprofitable exercise to be completed as quickly and effortlessly as possible. OAQPS does not <-:>eem to have .any process for advance identification of resource needs and development of information to support requests for the needed resources ------- -17- Training and technical assistance, in particular, are activities for which more and better empirical data, gathered in advance for presentation during the budget process, might improve OAQPS' case for resource needs. o While OAQPS is credited with doing a good job of team-building at the RO branch-chief level, a number of interviewees said that it had not done as well at the division-director level. Some interviewees said that the OAQPS Office Director personally should play a major role in team-building among RO division ; directors but historically has not done so. o Some ROs made the point that OAQPS does not do as much as it might to assure consistency among ROs and States, but opinion is divided on the question of how forceful OAQPS should be with respect to national consistency. Moreover, it is difficult to find evidence that OAQPS1 approach has caused major problems, although examples of inconsistency in SIP regulations (e.g., differences in averaging times for emission limits or lack of spe- cified averaging times, differences in the way compli- ance with VOC regulations is determined) are not hard to find. o OAQPS is sometimes slow to take the initiative in dealing with emerging national issues, particularly those that are outside the historical boundaries of its program. Air toxics is the example mentioned most frequently. ROs and States all complained that OAQPS was late in recognizing the need to deal with air toxics issues (if not through standard-setting, then at least through dissemination of scientific and tech- nical information). Going back several years, some interviewees noted that OAQPS played little role in dealing with the steel industry during the late 1970s and deferred to the Office of Enforcement for the development of guidelines defining Reasonably Available Control Technology for steel plants. On the other hand, OAQPS was credited with providing leadership (by developing Control Tech- niques Guidelines documents) in the control of VOC ,* sources. ------- -18- IV. RECOMMENDATIONS This section presents recommended actions for the Assistant Administrator for Air and Radiation to put in place to rein- force OAQPS1 strengths and correct the problems identified in the course of this study. It is important to point out that no one or two actions alone will make the difference in devel- oping sustained effective performance in OAQPS. Outlined below are many specific, trackable items which, if implemented and maintained, will collectively provide the foundations for long-term effectiveness. These foundations include more effi- cient processing of regulations and standards, better policy and technical guidance to the field, improved planning and budgeting processes, an enhanced ability to adapt to changes in the organization's operating environment, and better com- munication with Regional Offices. This section is divided into four sub-sections by functional category of OAQPS1 work—standard-setting, support for imple- mentation and enforcement, national program management, and general recommendations. In each functional area, the major objectives to be accomplished are described, followed by specific recommendations designed to meet those objectives. A. Recommendations; Standard-setting The primary goal of recommendations in the area of standard- setting is to speed up the process of getting standards and regulations out of the Agency by improving the communica- tion and coordination between OAQPS and other organizations both inside and outside the Agency. OBJECTIVE: Improve coordination with other Headquarters offices involved in the review of OAQPS regulations. (See findings on pages 8-10.) Recommendation — OAQPS should be designated as having lead responsibility for tracking regulations during the internal Agency review cycle, for shepherding regulations through the review process, and for addressing problems that arise during reviews. Further, this responsibility should lie with the OAQPS division director whose division produced the standard or regulation. This places the responsibility close to the levels of the organization that operationally carry out the routine activities involved, yet places it in a position of sufficient authority to allow effective management action when non-routine problems arise. Addi- tionally, placing this responsibility with the division director whose division produced the regulatory package will help foster practices during the earlier stages of regulation development that will facilitate smoother Agency reviews later. ------- -19- Recommendation — Schedule regular, frequent meetings between the directors of the Emission Standards and Engi- neering Division (ESED) and the Strategies and Air Stand- ards Division (SASD) and the Office Director and staff in the Office of Policy Analysis (OPA). The purpose of these meetings would be to: o Inform OPA of the packages scheduled for Steering Com- mittee or Red Border Review during the coming weeks, review issues raised and resolved during working group meetings on those packages, and identify any remaining issues of concern to OPA or those that may arise during OMB's review. o Identify the need to set up separate meetings to discuss specific standards or other actions or issues in more detail. o Inform OPA of new standards work under consideration in ESED or SASD and establish the role that OPA will play in the development and review process (i.e., participate on the working group, undertake independent analysis, etc.) o Inform ESED of new standards-related analytical proj- ects being considered in OPA and discuss significant findings of current OPA projects. Such a process will help elevate reviewing offices' issues to the managers' (rather than the analysts') perspective and should thereby discourage the raising of relatively insignificant issues. Further, it will foster early involve- ment by OPA in the standards development process and will help formalize the OAQPS division directors' role in getting their regulatory packages through the DC review cycle. Recommendation — Schedule similar meetings with the Office of Policy Analysis and Review (OPAR) and any other staff or office in Headquarters involved in review of OAQPS packages. Recommendation — Briefings for the Office Director on regulatory packages should routinely include information on issues that are likely to arise during review in the AA's office, Red Border, or review by the Office of Manage- ment and Budget (OMB) and should also cover what has been done or is planned to be done to facilitate early resolution of the problems. ------- -20- OBJECTIVE — Improve the general quality of presentations prepared for Headquarters decision-makers. (See finding on page 9.) Recommendation — Arrange for managers and as many of the staff as possible to be trained in the preparation and delivery of presentations for decision-makers (with the training specifically tailored for OAQPS1 needs , i.e., technical material communicated to non-technical decision makers) . Recommendation — After major briefings for the AA or other decision-makers, OAQPS should conduct brief reviews of the meetings in order to identify problems or particu- larly effective features of the prepared material or the delivery that can be considered in the preparation of future briefings. OBJECTIVE — Improve information-gathering from and coordina- tion with Regional Offices (ROs) and States on standard-setting activities. (See finding on page 10.) Recommendation — When Regional Offices and State and local agencies provide comments or technical data during the development or review of standards, ESED and SASD should provide explicit responses to comments or input, either through correspondence or by telephone. Recommendation — As part of briefings on major decision packages presented to the Office Director, OAQPS divisions should include a section on significant issues raised by Regional Offices and State and local agencies and how they were addressed. Recommenda t ion — Because technical inadequacies in the data often hamper ESED's use of State and RO enforcement- related data for setting new standards or reviewing/revising existing standards, ESED should issue guidance to ROs and States outlining the minimal procedural and documentation requirements that stack test data must conform to if they are to be considered for standard-setting purposes. OBJECTIVE — Clarify the roles that benefits analysis and risk assessment will play in O.AQPS1 standard-setting activities. (See finding on page 9.) Re comme nd at ion — In the long term EPA may wish to pursue changes to the Clean Air Act which would allow the Agency to make better use of benefits analysis and benefit-cost ------- -21- analysis in decision-making on National Ambient Air Quality Standards (NAAQS). This would require a cooperative effort between OAQPS, the Immediate Office of the AA/OAR, OPPE, and other internal and perhaps external groups. However, the most important step in the short run is for SASD to resolve internal differences that have gradually arisen over'when and how benefit-cost work should fit into the development of NAAQS within the current constraints of the Clean Air Act. As most of the problems appear to be related to communica- tion between branches in SASD, it should be sufficient for the Director of SASD to set up a forum through which repre- sentatives of the Ambient Standards Branch and the Economic Analysis Branch can discuss current problems and present him with options, if necessary, for resolving them. Recommendation — Regarding the role of risk assessment in the regulation of air toxics, the primary problem appears to be staff's incomplete acceptance of new ways of approach- ing Section 112 listing decisions and the setting of NESHAPs. OAQPS management should take steps—either formal or infor- mal—to more clearly communicate its policies and plans to staff in ESED and SASD and to discuss any concerns that may exist at the staff level. B. Recommendations^— Support for Implementation and^ Enforcement OBJECTIVE — Improve follow-up to initial program and policy guidance. (See findings on page 12.) Recommendation — For large program initiatives (such as a revised ambient standard or new enforcement policy) OAQPS should establish a more formal process for evaluating the progress of implementation and assessing the need Cor fur- ther guidance or assistance. At a minimum, this should include two activities: 1) OAQPS staff should keep a record (for their own use) of phone calls or written requests for guidance or clarification on the subject area, identifying the caller, the nature of the problem, and the response given, if any. 2) At frequent intervals during the first several months of a new initiative, the Division Directors and key staff from each involved division should meet to discuss the kinds of problems that are emerging in the field (as reflected in the various records of requests for guidance or information) and to identify action that OAQPS should take to resolve current problems and preclude additional ones. This could ------- -22- include issuing a follow-up guidance document, schedu- ling a series of workshops, or revising the original regulation or policy statement. An additional step in an evaluation process would be a brief survey (either written, by telephone, or a combination) of Regional Offices and selected State and local agencies conducted several months after a new initiative is set in place. This would provide more comprehensive feedback to OAQPS on the policy guidance or technical support needs that remain in the field. Recommendation —- OAQPS should upgrade its current system for distributing guidance materials .to Regional Offices and State and local agencies in order to better ensure that all organizations which may need or be affected by the guidance receive it as soon as possible after it is issued. The elements of such a system should include: o Numbering system for guidance documents (e.g., program guidance memorandum 84-1) o Standard list of addressees o Standard general format or coversheet for guidance docu- ments that allows field managers and staff to quickly recognize it as guidance material and to pull out the key information (e.g., subject covered, purpose of guidance, any previous guidance that it supersedes, who it applies to, etc.) Recommendation — OAQPS should expand its current newsletter to Regional Offices and State and local agencies to include more information on the status and, where possible, the substance of significant work in progress (regulations, policies, guidance documents, etc.). The purpose of this expansion would be to better inform the field of events or upcoming OAQPS products which may affect their ongoing work. Recommendation — OAQPS should continue whenever possible its practice of providing workshops for ROs and State and local personnel on significant programmatic initiatives or other areas where information exchange is required. It is a function that OAQPS performs well and one that meets many of the support and guidance needs that arise in the field. When the need for workshops is identified but re- source constraints appear to preclude a full tour of work- shops, OAQPS should be encouraged to examine whether other activities could be cancelled or postponed in order to free up resources for the workshops or at least a scaled- down workshop program. ------- -23- OBJECTIVE — Improve technical support to Regional Offices and State and local agencies. (See findings on pages 13-15.) Recommendation — OAQPS should begin as soon as possible to develop a strategy for its training programs for field staff. This will require, at a minimum: o gathering data from ROs and State and local agencies on current and projected training needs? o determining which program or technical areas to focus on in the future, assuming continued tight funding for training (i.e., new program initiatives or instruction in the traditional subjects such as compliance inspec- tions, modeling, etc.); and o developing budget initiatives for areas where the data appear to support a case for increased funding. R_e comme nd a t i o n — OAQPS should reinstitute the practice of maintaining industry experts within EPA in key areas in which ROs and State and local agencies require technical assistance. This will require that OAQPS: o establish (with ROs & States) which industrial categories to cover; o identify the individuals within ESED or SSCD (or perhaps ROs) who should serve as the industry expert in each category; o procure the training or whatever else is needed to develop and maintain these individuals' expertise in their subject areas; and o if necessary, revise performance standards and schedules for other work (e.g., standard-setting activities) in order to make the technical assistance activities a regular part of the responsibilities of the industry experts. Recommendation — In light of the concern among managers in the field regarding the availability of technical tools for implementation of the PM10 standard, OAQPS should immediately reassess RO and State and local technical needs for implementation of the standard and determine the extent to which these will or will not be met by the agency. This should consist of: o resurrecting and updating, if necessary, the content of the original CPDD planning document on implementation of the inhalable particulate standard; ------- -24- o assessing how well the identified needs are being or will be met, given current State and EPA activities, and what the consequences of any shortfalls will be; and o preparing a report or briefing for the Director of OAQPS and the AA/OAR on the findings of the review and recommended actions, if any, for correcting identified problems. Recomroendat i on — OAQPS should reinstitute, at least on a limited basis, its assistance to ROs in making case-by-case determinations of whether national standards are applicable to new sources ("applicability determinations"). Recommendation — In light of the preliminary results of the OAQPS/OPPE "Six-month Study" of the air toxics problem, as well as the intense concern in ROs and State and local agencies regarding the lack of site-specific air toxics monitoring capability, OAQPS should reassess its proposed strategy for air toxics monitoring in order to determine whether it will result in genuinely useful information for EPA and other control agencies to use in assessing problems and devising control strategies. C. Recommendations — National Program Management OBJECTIVE: Improve planning for and presentation of budget requests. (See findings on pages 16-17.) Recommendation — OAQPS should institute a comprehensive planning and budgeting process for the office. The purpose would be to: o allow for early identification of areas where new initia- tives are necessary or where ongoing activities may be vulnerable to budget cuts; o plan the actions which may be necessary for making bud- get decisions or defending budget requests (e.g., data gathering, special studies, support from outside groups, etc.); and o incorporate the supporting information into effective requests during the regular Agency budget process. Recommendation — Documents currently prepared for the Agency budget process do not allow the OAQPS Office Direc- tor or the AA to assess trends or the budgetary trade-offs that are being made between.standard-setting activities and ------- -25- activities to provide guidance and support to the field. OAQPS should do a special analysis on the OAQPS budget request each year (only for the use of the Office Director and the AA), breaking out policy guidance and technical support from other categories of activities. OBJECTIVE: Improve national team-building and consistency across the various components of the national air program. (See findings on page 17.) Recipmmendaition — OAQPS should conduct formal audits of Regional Office air programs. These could be conducted in a way that is similar in concept to that which OAQPS set up for audits of state air agencies. The benefits should be: o Better understanding by ROs of what Headquarters expects of them in the way of procedures and outputs? o More direct feedback to ROs on how they are performing in relation to pre-determined measures? o Better Headquarters understanding of the problems being faced by the ROs and States in implementing national standards and policies; o Easier identification of and control of program areas in which national policies are not being implemented in a consistent manner. Recommendation — The Director of OAQPS should begin now to plan a series of visits to Regional Offices and, if possible, one State or local air agency in each region. If the Director is to effectively fulfill his responsibili- ties related to providing leadership and direction to the national air program, he will need to establish and main- tain—starting at management levels—effective lines of communication between OAQPS and the field. However, given the steady demands of standard- and policy-setting and everyday management of the Office, natural opportunities to leave both Durham and DC for a few days to travel to the field will probably not present themselves. It will therefore be necessary for the Director to take the initiative and plan these trips well enough in advance to allow accommodations for his absence from Headquarters, e.g., delegations of authority or adjustments in meeting schedules. ------- -26- D. RECOMMENDATIONS — GENERAL OBJECTIVE: Improve communication and team-building within OAQPS, Recommend a t i o n — Establish regular (perhaps bi-monthly) meetings of OAQPS Branch Chiefs to discuss upcoming actions and cross-cutting initiatives, iron out coordination/commu- nication problems, brainstorm, and identify administrative or policy issues which should be brought to the attention of upper management. Secondary benefits of these meetings would be better communication between the divisions on a daily basis and better integration of SSCD into the opera- tions of the OAQPS divisions located in Durham, where appro- priate. Recommendation — One possible disadvantage of OAQPS1 geographic location is that its employees may not be exposed to "outside" information or ideas as readily as EPA's Head- quarters personnel based in Washington. OAQPS should be encouraged to set up brown bag lunches or some similar informal mechanism for promoting discussion of general air program issues or such'topics as future trends, alter- native regulatory approaches, risk assessment and its uses/limitations, etc. Also, outside speakers, such as representatives of environmental or industry groups, may be willing to travel to Durham to speak to OAQPS staff and answer questions in an informal setting. OAQPS should be encouraged to pursue this opportunity. OBJECTIVE: Maintain a "field perspective" in OAQPS. Recommendation — OAQPS should be encouraged to continue and, if possible, expand the practice of targeting RO and State and local employees in announcing openings in OAQPS. Recommendation — OAQPS should be encouraged to investigate the expanded use of exchange programs or iPAs between EPA (OAQPS and ROs) and State and local agencies and between OAQPS and ROs. i c 401 tt Street, b.w ------- |