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

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                        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

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                   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:

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                             -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

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       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

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                             -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-

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                               -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.

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                             -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,

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                             -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.

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     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

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  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

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       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.

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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

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                             -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

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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

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                        -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

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                             -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

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                             -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

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                        -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.

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                             -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.

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                           -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.

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                             -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

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                             -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

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                           -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.

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                             -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;

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                             -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

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                            -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.

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                             -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

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