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                                  PonnsAunia Avenue NW
                                  -?-'...20
PROCESS FOR SELECTING IND

            SUPPORTING D

                Second Editioi


                   jpared by:
           Erflipronmental Protection Agency
           Data Quality Action Team
               401 M Street, SW
            Washington, DC 20460
               U S. EPA Headquarters Library
                     Mail code 3SW- 3404
               1200 Pennsylvania Avenue NW
                  Washington DC 20460
      EPA Contract Number 68-W4-0031, D04
       SAIC Project #01-0833-07-4977-030

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                            TABLE OF CONTENTS
t.O    INTRODUCTION	   I

2.0    DEFINITION OF ENVIRONMENTAL INDICATOR . .  ;	   2

3.0    FRAMEWORKS FOR DEVELOPING INDICATORS	   5

4.0    PROCESS FOR SELECTING ENVIRONMENTAL INDICATORS  	  10

5.0    CRITERIA FOR SELECTING ENVIRONMENTAL INDICATORS	  22

6.0    CRITERIA FOR SELECTING EXISTING DATA SETS TO
      SUPPORT INDICATORS  	  32


                              LIST OF FIGURES

Figure 2-1.    The Information Pyramid (adapted from State Environmental Goals and
            Indicators Project, 1995 and Hammond, Adriaanse, et al., 1995)	   4
Figure 3-1.    OECD Pressure-State-Response Framework  (Adapted from "OECD
            Core Set of Indicators for Environmental Performance Review,"
            Environmental Monograph No. 83 (1993).  	   6
Figure 4-1.    Process for Selecting Indicators	  13
Figure A-1.   Pressure-State-Response/Effects (PSR/E) Framework (adapted from
            USEPA, 1995)   	A-2


                              LIST OF TABLES

Table 5-1.    Suggested Evaluation Criteria for Selecting Indicators	  23
Table 5-2.    Example Development and Application of Suggested Evaluation Criteria . .  27
Table 5-3.    Example Approach for Using Weighted Criteria for Evaluating Possible
            Indicators	  29
Table 6-1.    Criteria for Selecting Existing Data Sets to Quantify Indicators  	  34
Table A-l.    Case Study of Pressure, State, Response/Effects Framework and
            Subcategories (adapted from USEPA, 1995) .......'	A-3
Revised Draft
May 1996

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Process for Selecting Indicators
Exhibit 4-1.
Exhibit 4-2.
Exhibit 4-3.
                                LIST OF EXHIBITS
             Example Application of Task l(a)	  15
             Example Application of Task l(b)	  16
             State Environmental Goals and Indicators Project Qualification
             Standards"	-.-	  20
Exhibit 4-4.   State Environmental Goals and Indicators Project Classification
             Scheme23  	  21
Appendix A-l.
Appendix B-l.
Appendix C-l.
                               LIST OF APPENDICES

                    Pressure-State-Response/Effects Framework	A-l
                    Draft Short Form for Screening Candidate Data Sets	B-t
                    Selection Criteria Used in Other Environmental Indicator Projects  . C-l
Revised Draft
                                          11
                                                                            May  1996

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                                1.0  INTRODUCTION
       Offices within the U.S. Environmental Protection Agency (EPA) have been developing
processes for selecting environmental indicators and supporting data.  In early 1994. the EPA
Data Quality Action Team (Data QAT), comprising representatives from  many  EPA.offices,
prepared the first edition of this document as a tool for selecting indicators. The earlier edition
has now been updated and revised to reflect lessons learned in earlier work.

       The purpose of this document is to present a process for selecting indicators and data sets
that can be used to measure the current status of the environment and to show patterns or trends
in that status. This proposed process,  which is endorsed by the Data QAT  (which includes
members from virtually all of the EPA programs involved in indicator selection), is directed
primarily to technical managers within EPA who are responsible for specifying and' quantifying
indicators.

       This document is organized as follows:
       •  Section 2.0, Definition of Environmental  Indicator—Provides  background  on
         definitions and uses of environmental indicators
       •  Section 3.0, Frameworks for  Developing Indicators—Describes a commonly used
         framework for the organization and presentation of environmental indicators
       •  Section 4.0, Process for Selecting Environmental Indicators—Recommends steps for
         Indicator Teams and stakeholder groups to select the most appropriate indicators  for
         particular projects
       •  Section 5.0, Criteria for Selecting Environmental Indicators—Describes the process
         of determining and  applying  indicator selection criteria as  a means  to  focus  the
       •  selection process by evaluating candidate indicators
       •  Section 6.0, Criteria for Selecting Existing Data Sets to Quantify  Indicators-
         Identifies  proposed criteria for evaluating the usefulness of  an existing data set to
         support environmental indicators.
Revised Draft                              1                                  May  1996

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                2.0  DEFINITION OF ENVIRONMENTAL INDICATOR
       An indicator is most commonly understood as a sign  or  signal that  relays a complex
message in  a simplified manner.  Environmental indicators describe, analyze, summarize, arid
present  scientifically  based  information  on  environmental  conditions, trends,  and their
significance.1   Both direct measures of environmental  attributes of interest (e.g., health and
ecological effects) and  indirect measures  (e.g., emission/cischarge quantities) can serve  as
indicators. Environmental indicators are usually presented statistically or graphically to simplify
complex environmental  issues by I) quantifying information to highlight its significance and
2) presenting the information in a useful format for communicating ideas and trends related to
the issue.2
       The definition of indicators is dynamic and flexible and is influenced by project-specific
factors, including purpose, scope, and target audience.  Many definitions of environmental and
environmentally related indicators appear in the literature.  Table 2-1 presents selected definitions
[table to be added].

       Indicators are developed to quantify and simplify lar.»e amounts of information, thereby
making it more useful for the audience.  An indicator can be used individually (e.g., ambient
pollution concentrations),  but is  more commonly used  with other indicators to tell (a more
complete story. In some instances, several individual indicators are grouped under a common
theme .(e.g., the theme Toxics in the Chesapeake Bay may contain several indicators:  Toxic
Release Inventory summaries on loadings and releases, trends of contaminants in bottom sediment
and ambient surface water, pesticide use by county). Indicators can be presented individually in
a slide or fact sheet or compiled in an environmental bulletin, multimedia presentation, or other
more comprehensive presentation.  Sometimes two or more indicators are presented together on
a  single indicator  graph to  illustrate possible associations  among several  related pieces of
    'State Environmental Goals and Indicators Project. 1995. Prospective Indicators for State Use in Performance
Agreements. Florida Center for Public Management, Florida State University.
    :Hammond. A.. A. Adriaanse, E. Rodenburg, D. Bryant. R. Woodward.  1995.  Environmental Indicators: A
Systematic Approach to Measuring  and  Reporting on Environmental Policy Performance  in the  Context  of
Sustainable Development. Washington. D.C.:  World Resources Institute.
 Revised Draft
May 1996

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                                                      Definition of Environmental Indicaior
information (e.g.. municipal wastewater treatment plant loadings and population change).  Data
can also be aggregated into an index, which is then presented as an indicator. For example, the
Pollutant Standard Index aggregates individual measures of air quality into a single indicator that
rates  daily  air  quality  as  good,  unhealthful.  or hazardous.   The  scope of  the  message
communicated by  an indicator can be  at any of several different levels—community, sectoral,
national, or international.

       Typically, environmental indicators are used either in a decision-making context or as a
tool for public education/outreach to achieve the following purposes:

       • Show patterns or trends (changes) in the state of the environment  (such indicators are
         the focus of this report)
       • Show patterns or trends in the human activities that affect or are affected by the state
         of the environment
       • Show relationships among environmental variables
       • Show relationships between human activities and the state of the environment
       • Provide a benchmark against which to measure progress toward a particular goal
       • Communicate a message, theme, or story clearly, succinctly, and accurately
       • Motivate the readers to change behavior
       • Correct misperceptions.

       Because  indicators are user-driven and are  characterized  by the  quantification and
simplification of important information,  a specific  relationship  exists among indicators, the
audience, and the level of data.  The information pyramid, shown in Figure 2-1, contains three
levels of data for three different target audiences.3  The base  of the pyramid is primary data
derived from monitoring and data analysis.  Primary data are most useful for scientists or  for an
audience with a more technical  background.  The next layer is analyzed data, which decision
makers frequently use to quickly assess and evaluate trends, such as progress toward achieving
   'State Environmental Goals and Indicators Project, op. cit.
Revised Draft        .                       3                                   May 19%

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Process for Selecting Indicators
policy  goais.  Proceeding upward, the next layer  represents  indicators, which are the most

aggregated forms of data. Very condensed amounts of highly aggregated data are useful for

larger audiences  with a less technical  background, such as the general public.
                         Figure 2-1. The Information Pyramid
         (adapted from State Environmental Goals and Indicators Project, 1995 and
                            Hammond, Adriaanse, et ah,  1995)
 Revised Draft
                                                                              May 1996

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               3.0 FRAMEWORKS FOR DEVELOPING INDICATORS
       This section will present a  framework commonly used  for  the development of
environmental indicators, known  as' the Pressure-State-Response (PSR) framework.   Used by
various environmental organizations for environmental indicator projects, this framework serves
to convey environmental information in a coherent way.  A detailed description of the PSR
framework and typical characteristics of indicators developed under each component is provided
below. Readers familiar with the PSR framework may continue on to Section 4.0 for information
on the process of indicator selection.

       Environmental indicators synthesize complex, scientific information in a simplified and
understandable manner.  Although the content  and presentation  style of  indicators -may vary
depending on such factors as the  intended use, target audience, and message (or theme) of the
indicators, most indicators are derived from an extensive information base. Effective frameworks
are needed to provide context for the  indicator and to structure the diverse environmental
information so that it is relevant, interpretable, accessible, and intelligible to the target audience
(e.g.,  decision makers, general public).4  Developing indicators  within a specific framework
promotes  effective  information  collection,  integration,  and   interpretation  (e.g.,  linking
environment-related data to policy  and management  actions or  needs),  while also revealing
potential data gaps and providing  the impetus for future data collection efforts.5

       A variety  of conceptual frameworks or models of human-environment interactions can
serve  as  the basis for selecting, organizing,  and using indicators in different policy contexts.
Because the relationships between human activities and the environment are extremely complex,
no one framework may meet the needs of every indicator project.  The PSR framework, adopted
by the Organization for Economic Co-operation and Development (OECD) as  the basis for
organizing its State of the Environment reports and environmental performance reviews (OECD,
   'Hammond, op. cit.
   -'United States Environmental Protection Agency. 1995. A Conceptual Framework To Support Development And
Use Of Environmental Information In Decision-Making. EPA 239-R-95-012.
                                                                            i
Revised Draft                              5                                  MaX 1996

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 Process for Selecting Indicators
 1993).  is  widely  used,  however,  for  organizing  environmental  indicators  and  supporting
information.
       The  PSR  framework6   provides  a  valuable  means  for  relating  and .integrating
environmental information necessary for developing effective indicators that are capable of telling
a story or conveying a discrete message.  The basic PSR framework,  given in  Figure 3-1,
establishes a causal relationship among  human activities, the state of  the environment, and
society's response. Human activities exert pressures on the environment (e.g., pollution loadings
and land use changes) and induce changes in the state of die environment (e.g., ambient levels
of pollutants and  habitat diversity).  Society responds to these changes by addressing the
pressures through environmental and economic policies (e.|(., programs to reduce impacts to the
environment).
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               Set of Indicators for Environmental Performance Review,"
                        Environmental Monograph No. 83 (1993).
   '"'Causal" frameworks seek to organize or classify environmental information in terms of the aggregate causal
flow or "cycle" or human-environment interactions (USEPA, 1995).
Revised Draft
May 1996

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                                                    Frameworks for Developing Indicators
       Within the PSR framework, three broad types of indicators, and potential subcategones.
can be distinguished;
       • Indicators of Environmental Pressure describe the pressure that human activities
         exert on the environment, including the quality and quantity of natural resources.  The
         subcategones of this indicator type are indicators of direct pressures (pressures exerted
         directly on  the environment  that are normally  expressed in terms of emissions or
         consumption of natural resources), indirect pressures  (background indicators reflecting
         human  activities that lead to direct environmental pressures), and underlying societal
         pressures  (social and technological forces that drive  human activities).

       • Indicators of the State of the Environment relate to the quality of the environment
         and the quality and quantity of natural resources. As such, they reflect the  ultimate
         objective  of environmental policy making.   Indicators of environmental  conditions
         should measure the state of the environment .and changes in that state over time, rather
         than the pressures on the environment. In practice, however, the direct measurement
         of  environmental  conditions  can  be difficult  or very costly.    Therefore,  the
         measurement of  environmental pressures  is often used as a substitute  for the
         measurement of environmental conditions. Indicators of the state of the environment
         can be subcategorized by nested spatial scales (local, regional, and global ecosystems;
         human  health and environment-related welfare) and by biological, chemical, physical,
         and ecological functions and variables.7

       • Indicators of Societal Responses relate to individual and collective actions to mitigate.
         adapt to, or prevent human-induced damage to the environment and to halt or reverse
         environmental damage that  has already occurred.  Societal  responses also include
         actions for the  preservation  and the conservation  of the environment and natural
         resources. Indicators of societal response can be subdivided by the type of responding
         entity (e.g., governments, private sector, individuals, or partnerships).8


Each type of indicator has advantages, provided that it is appropriate for the target audience and

effectively meets the goals  and objectives of the project, and disadvantages.


       Pressure  indicators  are particularly useful in formulating short-term  (i.e., annual)

objectives and in evaluating short-term (i.e., annual) performance, because they explore potential
cause  and effect relationships between human activities  and the  environment  (e.g., whether

increasing or decreasing emissions are associated with changes in ambient conditions). They can
    'USEPA, op. cit.

    "Ibid. 5. 8, 9, and 10.
Revised Draft
May 1996

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Process for Selecting Indicators
m many coses be relatively easy to assemble, maintain and update, and are easy to interpret.  A
fairly extensive data base is available to construct pressure indicators because of the widespread
environmental monitoring and regulatory compliance framev/ork established in the United Scutes
(e.g.. many emissions are regularly monitored). Because pressure indicators are often developed
from direct measurements or model-based estimates, they can provide direct feedback on whether
policies are meeting project goals  (e.g., reduce total nitrogen discharges by 40% from all direct
dischargers)."0'"  One disadvantage of pressure indicators is  that it is  sometimes difficult to
establish a causal link between the pressures exerted and die state of the environment without
additional information.
       State  of the environment  indicators  are  crucial  for  a long-term evaluation of  the
environment  and environmental programs.1213'14  Preparing these indicators,  however, can be
difficult.   Data on ambient  environmental conditions (e.g., amount of  old  growth  forest,
concentration of mercury in water) are often limited in temporal or geographic  scope, difficult
to locate, or confusing to interpret.  Techniques to measure  actual environmental conditions (i.e.,
state) can be difficult and costly and must occur over an extended period (i.e., there is often  a
lag time after a control action is taken before measurable chiinges to the state of the environment
occur).   Nevertheless, continued efforts  to develop  such indicators are being made and  are
needed.  Without  them,  no firm conclusion can be reached about the effectiveness of current
policies in protecting and improving the state of the environment.

       Societal response indicators  are useful because they provide a measure of the scope of and
level of participation in environmental protection programs (e.g., number of dischargers affected
by and level of compliance with  government regulations).  Response  indicators  are limited,
   "Hammond, op. cit
   '"State Environmental Goals and Indicators Project, op. cit.
   "USEPA, op. cit.
   i:Hammond, op. cit.
    "Ibid.
 Revised Draft
May 1996

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                                                   Frameworks for Developing Indicators
however, because they do nor directly measure what is happening to the environment.  Ideally.
response indicators  should be developed after and be closely integrated with pressure and state
indicators to provide a complete picture of the issue being studied.15'16'17

       The  PSR framework can  .be modified  to  suit a  particular  environmental indicator
development project.  For example, an expansion of the PSR framework has been suggested for
developing a  system of environmental statistics and  indicators.  The new version includes
"Effects" as a category to  describe relationships between two or more pressure, state, and/or
response variables.   Appendix  A contains additional  information on the  PSR/E framework.
Because frameworks provide the context for organizing indicators and associated data, flexibility
is  necessary to ensure that the  framework adopted  best meets the goals and objectives of the
specific project or use for which it is being employed.
    1JIbid.
    "Ibid.
    I7USEPA. op. cit.
Revised Draft                               9                                  May l996

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         4.0 PROCESS FOR SELECTING ENVIRONMENTAL INDICATORS

       Presented in this section is a step-wise approach for selecting indicators, based on standard
decision-making practices. Three primary steps are described; they include:


       •  Identifying and recommending indicators
       •  Identifying and recommending data to support indicators

       •  Selecting  final indicators.  .


Examples appear throughout this section to demonstrate the application of the selection process.
A description is provided for developing an Indicator Tearn  to best perform the recommended
process.
       Different approaches can be used to select environmental indicators.  One approach is to
select indicators for a particular application on an ad hoc basis from existing indicators and/or
readily availabfe data.  Although this approach can yield meaningful and informative indicators,
indicators developed from existing indicators and/or available data  can have limitations:
       • The range of possible indicators is limited to indicators or data developed previously
         for other purposes.

       • Available indicators or data may not be directly related to or appropriate  for the
         intended message, goals, or objectives of the new indicator project.  Yet, there  may be
         a bias to try to "force fit" available information.

       • Available indicators or data may not be suitable lor the target audience.
                  i
       • Using  previously developed indicators or data may result in confusing or mixed
         messages, as well as indicators that are neither relevant, nor representative.


       Another approach uses  a systematic process in which indicator selection is  based on

postulated cause-effect  linkages between valued environmental attributes and the societal and
 Revised Draft
10
May 1996

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                                             Process for Selecting Environmental Indicators
natural factors  chat  potentially affect  these  attributes."1   This  approach  suggests that  it  is
important  to  define, at the beginning  of the effort, the  overall  goals  and objectives of the
indicator'project, the intended message for the indicator, the framework (i.e., pressure, state.
response)  for presenting  indicators,  and the target audience before  selecting indicators  and
evaluating data availability.  Although this approach may expose gaps in  existing data, it allows
society's environmental values and current scientific understanding of environmental linkages to
drive indicator selection. The  identification of such data gaps can drive further research and data
collection.  The remainder of  this section provides more detail on the latter approach.
                                  N
PROCESS DESCRIPTION
       The indicator and data selection process presented in this document is meant to be flexible
and should be modified to best meet  the needs -of the particular indicator development activity.
The tikeiihood of a successful  outcome  will be increased, however, if the  following fundamental
principles of decision making  are  followed:19'20

       • Initiate the process by clearly identifying goals and objectives (including defining the
         theme and  target audience for the indicator)
       • Identify candidate indicators that support the identified goals and objectives
       • Develop and apply a decision making process for selecting the best indicators.

       In addition,  developing successful environmental  indicators requires leadership and a
feedback mechanism. The project will need a lead group (i.e., Indicator Team) that is  responsible
for initiating and coordinating  the project, as well as providing leadership throughout the process.
The Indicator Team should involve a representative and balanced stakeholder group of interested
and  affected  parties throughout the  process.   Stakeholders  can  be  involved in many ways.
    "For discussions of this type of approach, see, for example. Managing Troubled Waters: The Role of Regional
Marine Environmental Monitoring (National Academy Press. 1990) and the Indicator Development Strategy for the
Environmental Monitoring and Assessment Program (USEPA, 1994).
    'thang, R.Y. and P.K. Kelly.  1993. Step-By-Step Problem Solving.  Irvine, CA: Richard Chang Associates,
Inc.
    :ilChechile. R.A. and S. Carlisle. 1991.  Environmental Decision Making: A Multidisciplinary Perspective. New
York: Van Nostrand  Reinhold.

Revised  Draft                                11                                   May  1996

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 Process for Selecting Indicators
 including participation in team meetings, workshops, or othe- facilitated sessions; and inclusion
 in product review and comment cycles.  Stakeholders will vary by indicator project, but may
 include the following types of individuals:

       • Subject matter experts
       • Information and data providers
       • Outside professionals (e.g., consultants and representatives from industry, public interest
         groups, nongovernmental organizations, academe, and individuals with financial and
         economic backgrounds)
       • Decision makers (e.g., government policy makers)
       • Customers (e.g., educators, media representatives, general public).
                       s
       Involving stakeholders in the indicator development process is crucial for achieving buy-
in, ensuring that the indicator is on target with the desired goals and objectives and message or
theme and that the  indicator is understandable and effectively promoted. Indicators developed
in the absence of stakeholders may be stalled, derailed, or refuted.

       The  remainder of  this section discusses  the  three steps in selecting environmental
indicators: identifying indicators, identifying data for supporting indicators, and selecting final
indicators.  Figure  4-1 is a flow chart illustrating the indicator selection process.

STEP 1:  IDENTIFY AND RECOMMEND INDICATORS
          This step results in a list of candidate indicators that serve the goals and objectives of
          the indicator project, support the  framework for communicating the theme or message
          of the project, and meet the evaluation criteria developed to aid in indicator selection.
          The  first  task of the Indicator Team is to define the goals and objectives  of the
          indicator  project  and develop  a  theme  and  framework  that will  be  used  to
          communicate to the target audience. Next, the  Indicator Team develops a draft list of
          potential  indicators.  Then, the team  selects candidate  indicators using specific
          evaluation criteria.

 Revised Draft                               12                                 May 1996

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                                             Process for Selecting Environmental Indicators
                                   Indicator Team
                                        and
                                    Stakeholders
          Stepl: Identify and
         Recommend Indicators
        Task la: Define goals and
          objectives of indicator
        Task Ib: Identify possible
          indicators that support
           indicator goals and
         objectives and organize
          them according to the
           message elements.
         Task Ic: Evaluate each
           possible indicator to
            identify candidate
               indicators
       Step 2: Identify and
       Recommend Data to
        Support Indicators
          Task 2* Identify
        potential data sets for
           each indicator
                                                       Task2b: Evaluate
                                                       candidate data sets
       Task2c:  Address data
                                 Step 3: Select Final
                                     Indicators
                        Figure 4-1.  Process for Selecting Indicators
Revised Draft
13
May 1996

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Process for Selecting Indicators
Task la:  Define goals, objectives, and framework of the indicator
          The following questions guide the development  of indicator  goals, objectives, and
          theme or message:

          •    Why is the indicator being developed?
          •    What is its  intended  use (e.g., track progress toward meeting program goals,
              develop an objective  description  of the state' of the environment, educate the
              general public)?
          •    Who will use the indicator (e.g., program manager, scientists, educators)?
          •    Who  is the  intended audience  for the  indicator  (e.g., program  managers,
              legislators, the general public)?
        '  •    What are  society's goals, values, and  concerns?   Are they  addressed by the
              indicator?
          *    Is the indicator related to a program  mission or goal  statement(s)?
          •    Does the indicator objectively communicate information to the target audience?

       The answers to these questions  provide the essential foundation  for effective indicator
       development.  These questions should be considered at project initiation and referred to
       throughout the entire process. They are critical at the 'outset to establish the scope and
       approach of the indicator project. They are also central to  the development of individual
       indicators.  An effective indicator, whether used individually or in a group, must have a
       clear message relevant  to the target audience  and intended use of the indicator. By
       carefully answering the goal  and objective questions, the  Indicator Team will be better
       able to implement an efficient and effective  process.  Stakeholders can contribute during
       these early stages to help define goals and  objectives, especially  when identifying key
       messages and audiences.

       Although  defining  the  goals and objectives is critical to effective,  targeted indicator
       development, defining a framework is central  to  the indicator selection process.  The
       framework serves as the organizational  structure  for the indicator project.  The most
Revised Draft                               14                                  Ma? l996

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                                             Process for Selecting Environmental Indicators
       common  framework used  to  date  has been  the  Pressure-State-Response framework.
       described briefly in Section 3.0.

       An indicator topic may be narrow and require few indicators or be broad and need many
       indicators to tell the entire story.  If the topic  is broad or complex and requires many
       indicators, it may be necessary to develop an outline or a list of all information needed
       to convey each element of the framework.  This step is similar to preparing an outline for
       a  story.   Each  individual indicator  should relate  closely  to the overall  goals and
       objectives.   Exhibit 4-1 provides an example of developing  the goal, objective, and
       elements of the PSR framework for an air pollution topic.

                       Exhibit 4-1.  Example Application of Task I (a)
   Define the goals, objectives, and framework of the indicator project
   Goal:                   Raise public awareness about air pollution.
   Objective:               Communicate to the public the role of individuals in air pollution.
   Framework:
   1.  Pressure              •  Mobile sources affect air quality
                           •  Mobile source emissions are significant compared to other sources
   2.  State                 •  Ambient concentrations of pollutants associated with mobile sources
   3.  Response              •  Behavioral changes
                           •  Technological changes
Task Ib: Identify possible indicators that support indicator goals and objectives.
       After identifying the overall goal and objectives, the next step is identifying potential
       indicators.   The potential indicators  are  developed based on  their effectiveness  in
       conveying the elements of the framework,  while ensuring that they are suitable for the
       intended use of the indicator and  target audience.  Through one or  more  meetings,
       workshops, or other events, supplemented  with review  and comment cycles of written
       materials, the Indicator Team and stakeholders should develop a comprehensive list of
       specific  indicators.   Next, the Indicator Team may want  to examine currently used
       indicators for additional ideas.  The potential indicators can then be grouped  according
       to the elements  of the framework, as illustrated in Exhibit 4-2.

Revised Draft                                15                                   May 1996

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 Process for Selecting Indicators
                        Exhibit 4-2. Example Application of Task l(b)
   Identify possible indicators and organize them according to the framework.
      •  Pressure—Mobile sources affect air quality
           »  N'umber and type of vehicles on roads
           >  Number of vehicle, miles driven per year
           *•  Emissions of selected pollutants from mobile sources
      *  Pressure—Mobile sources are a significant scarce of air polli.tion compared to other sources
           »  Emissions of selected parameters from mobile sources compared to stationary sources •
      •  State—Concentration of vehicle emissions in the environmem;
           »  Atmospheric concentration of selected pollutants
           *  Concentration of selected pollutants in soil near roads and highways
           »  Concentration of selected pollutants in water
      •  Response—Extent of• behavioral and technological  changes
                                           t
           »  Number of individuals participating in car pools
           -  Extent of mass transit opportunities
           fc  Emissions comparison between regular and fuel-efficient vehicles
           »  Availability of fuel-efficient vehicles
                                                          *
                                                          -.1
                                                          "I
Task Ic:  Evaluate each potential indicator to identify candidate indicators.
       The comprehensive list of potential indicators developed in Task Ib should be narrowed
       to  the indicators best suited for the project.  The Indicator Team, with the stakeholder
       group, should now develop the evaluation criteria appropriate to the specific  indicator
       development project so that the criteria can be applied to select candidate indicators from
       the list of potential indicators.  The process of selecting candidate indicators should be
       well-documented so that it is understandable to participants and outside reviewers and can
       be reproduced.  Section 5.0 describes an approach for identifying appropriate  selection
       criteria.
        Before applying .the evaluation  criteria, the Indicator Team should  ensure that each
        member has the same understanding of each criterion. The Indicator Team may want to
        use specific questions or  examples for each  criterion to facilitate  evaluation of  the
        candidate indicators.  For example, if the criterion is "understandability,"  the following
        questions might be helpful:

        • Is the  information of the right technical level for the target audience?
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                                           Process for Selecting Environmental Indicators
       •  Is the proposed display and presentation effective and appealing?
       •  Is the methodology used to create the indicator well-documented and understandable
         so that it can be easily communicated and reproduced?
       Table 5-1 in Section 5 provides additional examples of evaluation criteria.
       The Indicator Team should also decide on the approach to be used for applying the
       evaluation criteria. The evaluation criterion, for example, can be weighted equally so that
       possible indicators are simply ranked (quantitatively or qualitatively) according to how
       well they meet each criterion. Alternatively, each criterion can be weighted to emphasize
       its relative importance compared to the others. In addition, the evaluation criteria can be
       grouped into essential criteria (i.e., criteria an indicator must meet) and preferable criteria
       (i.e.,  criteria an  indicator should  meet if possible).21  This  idea is discussed in more
       detail in Section 5.

       The result of Task Ic is a list of candidate indicators:  the best indicators among those
       identified for conveying the message.
STEP 2.  IDENTIFY AND RECOMMEND DATA TO SUPPORT INDICATORS
       Once the candidate indicators are selected, the next step is to identify the data that will
       be used to quantify the indicators.  This requires examining existing data collection and
       analysis programs  to determine whether appropriate data are or will be available.  The
       process can be accomplished using the following two steps.
Task 2a:  Identify potential data sets for each indicator.
       The Indicator Team should conduct a focused search to identify candidate data sets that
       will support the candidate indicators.  The Indicator Team may work with the stakeholder
       group and other subject matter and/or data experts to identify potential data sets held by
       EPA, other Federal agencies, and other entities.  A literature review may also be helpful.
   21 State Environmental Goals and Indicators Project, op. cit.
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Process for Selecting Indicators
       Data sets should be identified and grouped by the candidate indicator they could be used
       to generate.
Task 2b: Evaluate candidate data sets.
       After potential data sets are" identified, they can be evaluated to select the most suitable
       data sets.  The Indicator Team and stakeholder group may want to score data sets using
       pre-determined evaluation criteria.  Section 6.0 discusses criteria for selecting appropriate
       data sets.  The Indicator Team may choose one or more of a variety of ways to apply the
       data criteria, including weighted scoring, completion of a checklist based on the criteria,
       and best professional judgment.  The approach should be well-documented so that it is
       understandable to participants and outside reviewers and  can be reproduced.   It may be
       desirable to complete summary forms for candidate data sets to facilitate decision making.
       Appendix B presents an example summary form.

       Several data sets might be appropriate for use in generating a particular indicator. If any
       of several data sets could be used, all would be considered unless one or  more were
       clearly inferior to the others (i.e., being similar on most criteria but clearly worse on
       some).  It may  be  necessary, therefore, to develop preliminary screening  criteria,  in
       addition to the detailed data evaluation criteria, to quickly eliminate the less suitable
       candidate data sets prior to a thorough evaluation.  Such preliminary screening may be
       necessary  if resources are limited.

       After applying the evaluation criteria, if several dafci sets are found to be appropriate for
       use in generating a particular indicator, the best one would generally be chosen.  In some
       cases, it might not be possible to  identify any appropriate data. A data gap exists if no
       data are available or if the available data are  inadequate and cannot be improved.

Task 2c: Address data gap.
       For indicators that lack adequate data, the Indicator Team may take the following actions:
       (1)  Document the data gaps.
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                                           Process for Selecting Environmental Indicators
      (2) Review other existing indicators and data to determine whether one or more can be
          used  as  interim substitute indicators to at least  provide  some  information on  the
          factors to be addressed by the candidate indicators for which no adequate data are
          available.

      (3) Develop strategies for filling the identified data gaps, including improvements to
          existing  programs of data collection, data analyses, and  information management.
          Developing strategies  includes determining whether data can be  made available by
          modifying existing data management and analysis procedures.   For example, this
          could include the reanalysis of existing data or the integration of two or more separate
          data sets.

          a.  If the needed data can be made available by changes in existing data management
              or data analysis procedures, develop a strategy for making the needed changes.

          b.  If the  needed  data cannot be  made  available by  changes to existing  data
              management or data analysis procedures, determine whether there are validated
              test  methods,  statistical methods, etc.  at the levels of accuracy and levels  of
              reliability required:

              - For each indicator for which validated methods are available, identify what data
                is  required  and design a data collection program  (of  appropriate statistical
                design) and a data analysis program. If feasible, implement the program.

              - For each indicator for  which validated methods are  not available, set up a
                process to develop such methods.  If needed, set priorities for developing
                these methods.  Once appropriate  methods are developed, identify what data
                are required and design a data collection program (of appropriate statistical
                design) and a data analysis program. If feasible, implement the program.
STEP 3:  SELECT FINAL INDICATORS

       After identifying the candidate  indicators and the data sets available to support each

       indicator, the Indicator Team will need to select the final  indicators.  At this stage, the
       indicator team has full knowledge of which indicators best  serve the goals and objectives
       of the project.  The team has also evaluated the quality of available data and identified
       data gaps.  Now  the Indicator Team  must  work with this information to  select final

       indicators for the project.


       The procedure for selecting final indicators will  likely be  an  iterative process using
       stakeholder involvement, peer review, and expert knowledge.  The approach for selecting



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Process for Selecting Indicators
       final indicators used by the State Environmental Goals  and Indicators Project (SEGIP)
       involved the application of decision criteria called qualification standards.  These are
       listed in Exhibit 4-3.  After applying the  standards and identifying final indicators, the
       participants  realized that the qualification standards did not yield a sufficient number of
       indicators to meet the needs of the  project.  In response, they developed a three-tiered
       classification. The first tier, Type A indicators, meet the qualification  standards.  The
       next tiers,  Type B  and Type C,  classify  the remaining indicators  according  to the
       availability of data or the  level of 'effort required to develop the data needed to support
       the indicators.  The  definitions of Type A, B, and C indicators are provided in Exhibit
       4-4.

       The process of making a preliminary choice, gatheriag more information, and making a
       more refined choice of indicators is iterative.  Additional iterations may be necessary to
       refine the selection of indicators and to incorporate new information as  it is gathered.

   Exhibit 4-3.  State Environmental Goals and Indicators Project Qualification Standards22
   t.   The indicator was national in scope and could be consistently oisplayed at the state level.
   2.   The indicator met SEGIP Essential Indicator Selection Criteria.
   3.   The indicator currently existed and was available to the states.
   4.   The indicator reflected a direct environmental value and not an administrative or program result.
       Administrative measures that summarized counts of definable environmental degradation (e.g.,
       exceedances. spills) were acceptable.
   5.   The indicator supported an environmental result relevant to the U.S. EPA-State relationship as
       envisioned in the proposed Performance Agreements.
   ::State Environmental Goals and Indicators Project, op. cit.
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                                                 Process for Selecting Environmental Indicators
    Exhibit 4-4.  State Environmental Goals and  Indicators  Project Classification Scheme"
   Type A:  Indicators for which adequate data are available now and can be used to support the
   indicator without significant additional cost considerations.  To be classified as Type A. an indicator:

   *    Meets all essential selection criteria and most preferred criteria.
   •    Is presently available for use in its present condition, and
   •    Can be acquired easily at little or no cost.

   Type B:  Indicators which are presently feasible, but cannot be provided due to inordinate cost,
   analytical complexity, or time constraints.  Type B indicators are those that, could be made available
   now if some operational barrier can be overcome.  The data needed to produce the indicator exist but
   because of cost concerns, analytical difficulties, time constraints, manpower issues, or some other
   impediment, the indicator cannot be provided.

   Type C:  Prospective indicators for which there is no reasonable prospect of development without
   some extraordinary expenditure of resources.  Type C indicators are purely prospective.  The data do
   not exist and there is no clear intent to collect them.  Type C indicators exist as designs only.
    "State Environmental Goals and Indicators Project, op. cit.
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        5.0  CRITERIA FOR SELECTING ENVIRONMENTAL INDICATORS
       This section presents a list of evaluation criteria that was adapted from a review of other
environmental  indicator  projects  (e.g., Intergovernmentiil  Task  Force on  Water Quality
Monitoring, State  Environmental Goals and Indicator Project, Environmental Monitoring and
Assessment Program, and the International Joint Commission for the Great Lakes) and refined
to provide a comprehensive list of criteria that could be used for a variety of indicator selection
projects. Table 5-1 provides these criteria and defines each criterion with one or more specific
questions.  It is often useful to define the criteria as a series of questions, because questions can
be easier to apply when selecting indicators than narrative definitions.  Appendix C presents
examples of selection criteria used by various organization.;.

       Choosing clear evaluation criteria and determining an effective means of applying them
are two critical aspects of the overall  process of selecting  environmental indicators.   The
evaluation of possible indicators against criteria enables the: Indicator Team and stakeholders to
narrow  a potentially broad list of indicators to those that are optimally  suited for achieving the
project  goals  and objectives.  Applying well-defined evaluation criteria will help  focus  the
selection process and  reduce potential bias by  providing a  clearly articulated and  relatively
objective  means to evaluate, or score,  possible indicators.   This  process  should ideally be
cooperatively developed by the Indicator Team with support from a representative and balanced
stakeholder group.  The value of developing criteria that aie clearly defined and understandable
cannot  be  overstated.   Everyone applying them will then be  employing the  same working
definition.

       Evaluation criteria should be determined relatively early in  the process, not  long after
defining possible  indicators.  The Indicator Team and stakeholder group  should identify
evaluation criteria that will effectively reflect the goals  and objectives of the indicator project.
Brainstorming techniques can be used to develop a broad hst of potential evaluation criteria that
can be  refined to present a workable list of final criteria.  This section describes the  process of
determining and applying indicator evaluation criteria.
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                                          Criteria for Selecting Environmental Indicators
            Table 5-1.  Suggested Evaluation Criteria for Selecting Indicators
Criterion
Definition
Validity
Social and Environmental
Relevance
Appropriate Scale
Integration of Multiple Impacts
Representative
Sensitivity
Interpretability
[nterpretable
Trend Evaluation
Timeliness •
Timely/ Anticipatory
Understandability
Understandable
Documented
Consistency
Provision of Decision Support
Does the indicator express society's environmental values, goals, and
concerns by presenting information relevant to a desired policy goal, issue.
legal mandate, or agency mission? Does the indicator reflect the project
message? Can this information be understood by and easily related to the
general public and decision makers? Is the indicator seen by the target
audience as being important or relevant to their lives?
Does the indicator respond to changes on an appropriate geographic (e.g.,
global, national, regional, or local) and temporal (e.g., daily, monthly,
yearly) scale?
Does the indicator represent the cumulative impacts of multiple stressors
(e.g., water quality affected by nonpoint source discharges, point source
discharges, acid rain, erosion)? Is it broadly applicable to many stressors
and sites?
Are changes in the indicator highly correlated with changing trends in the
information it is selected to represent (e.g., is an indicator of industrial
loadings to surface water highly correlated to declining surface water
quality)? Does the indicator present an accurate picture for the message it
is intended to convey?
Can the indicator distinguish small changes in environmental conditions
with an acceptable degree of resolution (e.g., will the indicator respond to
modest changes such as occasional permit violations, new plants coming
online, or gradual improvements in quality over time)?

Is there a reference condition or benchmark for the indicator against which
to measure changes and trends (e.g., standards, limitations, criteria, goals)?
Has the data for the indicator been collected over a sufficient period of
time to allow analysis of trends or provide a baseline for estimating future
trends?

Does the indicator provide early warning of changes?
-
Is the indicator appropriate for the target audience? Is the indicator
presented in a format tailored to the needs of the target audience? Is it
simple and direct?
Is the methodology used to create the indicator well-documented and
understandable so that it can be easily communicated and reproduced?
Is the information presented by the indicator consistent over time (e.g., are
definitions, measurement techniques, and analytical methodologies
consistent and comparable)?
Is the level of information by the indicator appropriate for the target
audience to use in decision making?
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 Process for Selecting Indicators
      Table 5-1. Suggested Evaluation Criteria for Selecting Indicators (continued)
Criterion
Definition
Cost Considerations
Cost Effectiveness
Minimal Environmental Impact
Measurable
Data Availability
Is data to support the indicator readily available? Can it be obtained with
reasonable cost and effort? Cai it be reproduced, maintained, or updated?
Do sampling procedures produce minimal environmental impact?
Does the indicator measure a feature of the environment that can be
quantified simply, using standard methodologies with a known degree of
accuracy and precision?
Are adequate data available for immediate indicator use? Do constraints
exist on data collection that require postponement of indicator
development?
DETERMINING APPROPRIATE EVALUATION CRITERIA
       The process of identifying evaluation criteria is flexible and will vary to best meet the
needs of the particular indicator project. The choice of criteria is often driven by the intended
use for the indicators.  For example, indicators that will be used to evaluate the effectiveness of
management  measures for  improving fish species diversity and population size may require
criteria  that emphasize assessing  scientific  validity  and accuracy.   Indicators  intended  for
communication to  the general public  may  need criteria  that stress  assessing presentation
                                                                                »
effectiveness  (e.g., clarity and simplicity). In all  situations, however, several key features are
critical to developing effective criteria, including the following:
       * Criteria reflect project goals and objectives
       • Criteria are clearly defined and understandable to all involved parties  (it  is very
         important that all participants apply the same definition)
       • Criteria are sufficiently well-defined to avoid ambiguity (e.g., sometimes it is helpful
         to provide examples, and/or parameters, ranges, or other measures to define criteria and
         the extent to which they are met)
       • Criteria are practical, valid, and legitimate.
       • Criteria are nonbiased.

       The evaluation  criteria presented  in Table  5-1  are grouped according to validity,
interpretability, timeliness, understandability, and cost considerations:
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                                            Criteria for Selecting Environmental Indicators
         Validity—Indicators should be valid measures of the valued attribute.   Validity is
         defined here as a close qualitative or quantitative link between the attribute actually of
         interest (e.g.,  biological integrity) and  the  measurable quantity represented  by the
         indicator. Several factors listed in Table 5-1  contribute to a close logical link between
         the indicator and the attributes of societal concern or value:

         *•    Indicators that  respond at the appropriate  spatial  and temporal scales  are more
              likely to  be  valid measures of an attribute of concern.

         *•    If  the  purpose  of  an indicator is to assess environmental  status and  trends,
              indicators that  respond to cumulative effects of multiple stressors will be more
              representative of the overall ecosystem condition than those that are responsive to
              only a few stressors.

         •>    Indicators that are highly correlated with other measures (of a specified  attribute)
              will'tend to be representative of the environmental  attribute or system being
              measured.

         »    Indicators must be  sensitive  enough to  measure changes over a reasonable time
              but not so sensitive that they fluctuate  substantially between  time periods. The
              signai-to-noise  ratio for an indicator is determined in part by the data used to
              generate  the indicator.  Expert knowledge and peer review can be used to assess
              the sensitivity of different indicators.

         Interpretability—Indicators should be interpretabte  in terms of the end point in the
         .assessment process.  They should be  able to  distinguish unacceptable from acceptable
         environmental conditions.  Ideally, each indicator will have a benchmark against which
         to measure change.

         Timeliness—Timely indicators that anticipate future changes in the environment are
         preferred over those that are not anticipatory. To the extent that  an indicator does not
         anticipate future  conditions, the indicator with the least time lag would be preferred.
         The time lag depends on both characteristics of the indicator and the time lag between
         the data collection and when the data are available to calculate the indicator.

         Understandability—Indicators should be geared toward the target  audience.  Since so
         many indicators are used for public outreach, indicators should be understandable by
         the public and perceived as relevant  Understandability is in part  a characteristic of the
         indicator and  in part a function of how  the indicator is presented.  EPA may need to
         educate the public on the importance  of some indicators. If possible, indicators should
         be "attention grabbers" in that they reflect the values of the audience (e.g., information
         on the number of fish in a water body is generally more interesting to the public than
         data on macroinvertebrates lower in the food chain).  Keeping data presentations
         simple, graphic, and consistent enhances indicator Understandability. The use of focus
         groups may help EPA to understand  how the public perceives the  indicators and may
         provide insights  on ways to improve the indicator.  Involving a representative and
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Process for Selecting Indicators
         balanced stakeholder group throughout the indicator selection process should improve
         indicator, presentation and understandability.
       • Cost Considerations—Indicators should be cost effective relative to alternatives and
         to the  effort and expertise, required to collect the'data, if required, and  report the
         indicator over time.
       The  key to effective evaluation criteria is that  they are appropriate  for the particular
indicator project.  Whenever possible, criteria should be tefined to best meet the needs of the
specific project. Evaluation criteria that are targeted to the project goals and objectives, intended
use, and target audience, are easier to apply than more generic criteria.  For example. Table 5-2
demonstrates one way that the "validity and interpretability" criteria presented in Table 5-1 might
be refined to better meet the needs of a particular indicator project related  to surface water
quality.

APPLYING THE CRITERIA
       Evaluation criteria  can  be applied using a variety of techniques to  rank  the  possible
indicators.  The Indicator Team should select or designate an approach best-suited for  that
particular indicator project. Whatever approach is selected, it should be documented so that it
is understandable to outside parties and can be reproduced easily.

       One of the most common techniques is to weight the relative importance of various
evaluation criteria and to score possible indicators according to how well they fulfill the weighted
evaluation criteria.  This approach,  referred to as a weighted numeric index, is based on the
following steps:

       •  Identifying arid assigning weights to criteria
       •  Applying the criteria to the indicators
       •  Choosing the indicators) with the highest weighted score.
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                                                   Criteria for Selecting Environmental Indicators
    Table 5-2.  Example Development and Application of Suggested Evaluation Criteria

  This case study demonstrates the development of project-specific evaluation criteria based on the target audience.
  purpose.-and indicator goals. This example is created using the "validity and inierpretabtlity" evaluation criteria
  described in Table 5-1.
Background
Project:   Environmental Indicator Bulletins-Surface Water Quality
Audience: General Public and Decision Makers
Purpose:   Provide audience with a yearly assessment of national surface water quality.         '•
Format:   Presented in a four-page color bulletin with limited space for graphics.

Procedure
Following the process outlined in Chapter 4.0 of this document, the Indicator Team, with the close  support of
the stakeholder group, developed goals and objectives for the indicator project  They also identified possible
indicators using brainstorming techniques.  In addition, brainstorming was used to determine selection criteria,
      were then refined and tailored, using consensus-building techniques, to best meet the needs of the project.

        Assess human and natural impacts, current conditions, and actions to improve water quality at a national
        level.
  Goal:
               Criteria
   Validity
   Social and Environmental
   Relevance   •
   Appropriate Scale
                                              Definition
    Example of Project-Specific
             Criteria
   Integration of Multiple Impacts
                                  Does the indicator express society's
                                  environmental values, goals, and
                                  concerns by presenting information
                                  relevant to a desired policy goal,
                                  issue, legal mandate, or agency
                                  mission?  Is the indicator seen by
                                  the target audience as being
                                  important or relevant to their lives?
                                  Does the indicator respond to
                                  changes on an appropriate
                                  geographic (e.g., national or
                                  regional) and .temporal (e.g.. yearly
                                  or biennially) scale?
                                  Does the indicator represent the
                                  cumulative impacts of multiple
                                  stressors (e.g.. water  quality
                                  affected by nonpoint source
                                  discharges, point source discharges,
                                  acid rain, erosion)? Is  it broadly
                                  applicable to many stressors and
                                  sites?
Does the indicator reflect the goals
of the Clean Water Act?
Does the indicator provide national
representation of surface waters?
Are data supporting the indicator
appropriate to report on a national
scale?
Does the indicator integrate
impacts from agricultural runoff,
silviculture, construction activities.
point source discharges, and runoff
from nonpoint sources?
Does the indicator capture all types
of land uses?
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Process for Selecting Indicators
   Table 5-2.  Example Development and Application of Suggested Evaluation Criteria
                                           (continued)
             Criteria
           Definition
   Example of Project-Specific
            Criteria
   Validity
   Representative
Are changes in the indicator highly
correlated to changing trends in ihe
information it is selected to
represent (e.g.. is an indicator of
industrial loadings to surface water
highly correlated to declining
surface water quality)? Does the
indicator present an accurate model
of the message it is intended to
convey?
Will the indicator respond to
changes in other factors affecting
water quality?
Does the indicator accurately
reflect national surface waters?
Does the indicator separate surface
water from ground water? Is the
information presented in the
indicator indicative of surface
water only?
   Sensitivity
Can the indicator distinguish smiill
changes in environmental conditions
with an acceptable'degree of
resolution (e.g., will the indicator
respond to modest changes such as
occasional permit violations, or new
plants coming online)?
Will the indicator respond to
modest changes to environmental
conditions (e.g., a  10% increase in
national nitrogen loadings from
atmospheric deposition)?
   Interpretability
   Interpretable
Is there a reference condition or
benchmark for the indicator against
which to measure changes and
trends (e.g., standards, limitations,
criteria, goals)?
Are there standards or other
benchmarks for the indicator?
Are there water quality criteria for
all of the parameters reported in
the indicator?
   Trend Evaluation
Has the data for the indicator been
collected over a sufficient period of
time to allow analysis of trends  ar
provide a baseline for future trends?
Has ambient surface water quality
monitoring data been collected for
over 10 years?
Are there sufficient, accessible,
reliable historical surface water
monitoring data that can be used to
establish a baseline?
Identifying and Assigning Weights to Evaluation Criteria

        The Indicator Team and stakeholders should identify criteria and rank them in terms of
their importance in  relation to each other.  After ranking,  the Indicator Team should apply a
numeric weight to each of the ranked criterion.  This can be done by assigning a percentage to
each criterion so that all the criteria together total 100 percent.  Although criteria sometimes may
be  weighted equally, it is  often more effective to assign different weights so  that the criteria
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                                           Criteria for Selecting Environmental Indicators
accurately  reflect  the  needs of the particular indicator project.  If the  Indicator Team has
difficulty  assigning numeric weights,  it can group the criteria  into essential (i.e., criteria an
indicator  must  meet)  and  preferable  (i.e., criteria  an  indicator should  meet  if possible)
categories/4  or  use some other type  of qualitative ranking approach.   Brainstorming and
consensus-building techniques should be used throughout this process. Table 5-3 provides an
example of this approach.
               Table 5-3. Example Approach for Using Weighted Criteria
                            for Evaluating Possible Indicators
Criteria
Validity
InterpretabUity
Timeliness
Understandability
Cost Effectiveness
Total
Weight
40%
20%
10%
20%
10%
100%
Ratine Scale: 1 to 10
Possible Indicators
Indicator 1
2 (0.8)
3 (0.6)
8 (0.8)
7 (1.4)
5 (0.5)
4.1
Indicator 2
4 (1.6)
6 (1.2)
1 (0.7)
. 3 (0.6)
1 (0.1)
4.2
Indicator 3
8 (3.2)
6 (1.2)
4 (0.4)
6 (1.2)
7 (0.7)
6.7
Applying the Criteria
       The Indicator Team should rate each possible indicator against each' criterion on a scale
(e.g., 1 to 10, with 10 being the highest).  Then the scores can be determined using the weighting
factors.  A typical numeric index approach uses such formulas as the following:

       • Additive Model
         Score = (S, x Wt) + (S2 x W2) + . .  . (Sn x Wn)
         Where:
              S = Score assigned to each indicator for a particular evaluation criterion
              W s Weight assigned to the criterion.
   :4State Environmental Goals and Indicators Project, op. cit.
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Process for Selecting Indicators
       • Multiplicative Model
       • Score = (S, x W,) x (S,  x W,) x . . .  (Sn x Wn)
         Where:
              S = Score assigned  to each indicator for a particular evaluation criterion
              W = Weight assigned to each criterion.
Additive models tend to equalize the influence of all factors, whereas multiplicative models tend
to emphasize the differences among factors.  As a result, an additive model tends to produce
scores within a narrow range; a corresponding multiplicative approach generates a much wider
range of scores.  Weighting the scores using either the additive or multiplication model produces
a numeric index for each possible indicator. Additional information on applying numeric indices
is presented in Chechile and Carlisle (1991)  and Chang and Kelly (1993). The following list
briefly summarizes selected advantages and disadvantages of this  approach:

       • Advantages
         »•    A numeric index can be based on quantifiable criteria important to the indicator
              selection process.
         »    The index can be developed with input from different sources and easily modified
              so that the information can be  tailored to serve a variety of indicator projects.
         +    The  approach  is  straight-forward,  with  results  that are  standardized  and
              reproducible.
       • Disadvantages
         >    The  more complex  the index, the more difficult it is to apply,  reproduce, and
              explain to the public.
         *•    Care must be taken in constructing the index to ensure that the correct criteria are
              chosen and weighted appropriately; the wrong choice of criteria and/or weighting
              factors may result in a poor index.
         »    The  range  of scores may end up too small to  allow for choosing  between
              indicators.
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                                           Criteria for Selecting Environmental Indicators
To  minimize the potential disadvantages of this approach, the  Indicator Team may want to
compare weighted results to unweighted scores.  Also, if any of the resulting rankings  seem
inappropriate (e.g., an  indicator that  was  believed to be  good does  not make the list or
questionable  indicators are ranked  high), the Indicator Team  may need  to  reexamine the
evaluation  criteria.  It is  always helpful to fully test the criteria before using them to select
indicators.
 Re vised Draft                               31                                 May  1996

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            6.0  CRITERIA FOR SELECTING EXISTING DATA SETS TO
                               SUPPORT INDICATORS
       The basis for  all environmental indicators  is data.  Sections  4.0 and 5.0 presented an
approach for selecting environmental indicators based on defining, at the outset, the overall goals
and objectives of the indicator project, the intended message for the indicator, and the target
audience before considering data availability.  After identifying environmental indicators using
this approach, however, it is necessary to fully consider the availability  and quality of data to
support the candidate indicators.

       This section describes an approach for evaluating data to support environmental indicators.
The evaluation approach will vary depending on the goals and objectives of the indicator project
and the stringency of data requirements needed to achieve those goals. Therefore, the Indicator
Team, in consultation with its stakeholder group and data experts that could provide technical
insights, should determine project-specific data requirement:;.  The Indicator Team may want to
identify and weight specific criteria to use in reviewing data sets.

       Table 6-1, given at the end of this section, identifies criteria for evaluating the usefulness
of existing data in supporting the development of the final environmental indicators.  The criteria
presented should be modified to best meet the needs of a particular indicator project.

       In general, critical criteria for selecting data sets include the following:
       • Availability of data on the selected parameters
       * Appropriate temporal and spatial coverage
       • Documented quality
       • Accessibility.

       Another critical criterion is that minimal standards of technical credibility, estimation
precision, and cost can be achieved by either the present data collection procedures or reasonable
modifications of them, because changes in data collection procedures might affect the technical
credibility, magnitude of the estimation error and associated sample size, and overall cost.
 Revised Draft
32
May 1996

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                                           Criteria for Selecting Environmental Indicators
       It is possible that either the sampling procedures or laboratory analysis procedures  will
change over the time that a data source  is used to quantify an indicator and monitor progress.
These changes may.result from many factors, including advances in technology and changes in
budgets and uses of the data sets over time.  The effect of these changes can be minimized by
using (I) measurements for which changes in technology are likely to improve the precision but
not affect the measurement bias and (2) procedures for which  the measurement bias is relatively
insensitive to the magnitude of the collection effort.  To the extent that this cannot be achieved,
a comparability  study can be used to compare the indicator before and after the change.   The
value of both the original and revised indicator can be used for some time to provide information
on how the two indicators compare. This same procedure can also be used if a entirely new data
set  is used for the revised indictor.

       Application of evaluation criteria to determine which data sets  best support candidate
indicators is described in Step 2b of the selection process. After evaluation of potential data sets,
the  selection of final indicators takes place.  This  is Step 3, the final step, of the indicator
selection process.

       Environmental, indicators  provide an  accurate measure  and an objective description of
current environmental trends and  patterns. The process for selecting environmental indicators
described in this  document  facilitates the development of unbiased indicators supported by
existing  data  sets.  The  Indicator Team and  stakeholder group should  tailor  the selection
methodology and criteria described within each section to fit the needs of specific indicator
projects. Causal frameworks, such as the PSR framework described in  this document, provide
context and organization structure for environmental indicators. Project-specific factors such as
the  intended  audience,  message,  and use  influence  the  presentation style  of  selected
environmental indicators.  Environmental indicator development promotes effective information
collection, quantification, and communication, and illustrates  the need for continued research in
this area.
Revised Draft                           .    33                                  Ma? 19%

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Process for Selecting Indicators
         Table 6-1.  Criteria for Selecting Existing Data Sets to Quantify Indicators
        Criteria
   'Data'Avai lability
   •Appropriate
   Temporal Coverage
   •Appropriate
   Spatial Coverage
  Data Quality
 •Critical criterion
               Definition
Does the data set provide measurements of
the parameters) or variable(s) specified in
the indicator.
Are appropriate historical data available so
that a baseline and/or trends can be
established?
Do the data cover the area of interest?
Information should be available on a
national basis for a national program.  If
the information is compiled from local or
regional data, can the information be
aggregated using scientifically and
statistically valid procedures?
Are the data of known quality (i.e., are
there (1) documented QA/QC procedures
for the collection, analysis, and
presentation of data,  (2) documentation of
any deviations from the procedures, and
(3) quantitative information on both
sampling and non-sampling errors)?
        Additional Considerations
Docs (he data set measure supporting
parameters, such as those needed for data
interpretation (e.g., pH for metals,
temperature for dissolved oxygen)?
Docs the data set provide all necessary
information to support the data (e.g.,
location, date, weather, tide level)?
Arc- data available for lime periods crucial
for data interpretation (e.g., dissolved oxygen
dati in the summer)?
Does temporal coverage within reporting
cycles (usually annually) have gaps?  If gaps
exi.it, they should not exclude data that will
significantly affect the indicator.
An; the data representative (i.e., not focused
on "hot spots")?
Do the data provide sufficient coverage to
determine sources, cause, and effect (e.g..
can they separate pollution/contamination
from natural background)?
Do the data use accepted geographic
conventions?
An: the data of appropriate scale and detail?
Is information on field and laboratory
methods provided?
Ars detection limits provided, where
applicable?
Were results of accuracy checks provided
(e.g.,  duplicates, replicates, split samples,
spike recoveries, instrument calibration)?
W:re lab audits performed and reported?

W:re there statistical checks on the data,
including data entry procedures?
Were problems identified'in the data? If so.
how (e.g., using flags, leaving data points
missing, reporting zeros)?
Were assumptions and limitations of  the data
discussed?
Was a point of contact provided?	
Revised Draft
                               34
                                 May  1996

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                                                     Criteria for Selecting Environmental Indicators
 Table 6-1.   Criteria for Selecting  Existing Data Sets  to Quantify  Indicators (continued)
        Criteria
   Data Accessibility
   Technical
   Credibility
   Acceptable
   Estimation Error
   Acceptable Cost
  *Critical criterion
               Definition
Are the data able to be analyzed using
existing data retrieval and analysis
procedures?
Did the procedures used to manage and
analyze the data follow accepted
professional practices.  Are the sample and
data collection procedures consistent with
the use of the data as a measure of the
indicator, as judged by technical experts in
the field who are familiar with the data?
The calculated bias in the indicator should
be insensitive to the magnitude of the data
collection effort and to political pressures.
In general, this criterion will eliminate
self-reported data from consideration.
Is the precision and bias of the indicator
acceptable given the desired precision
specified by the program?	
Is the cost of data collection, management,
and analysis within programmatic
guidelines?                     	
        Additional Considerations
Are data able to be used, or do
confidentiality concerns limit data access?
Are the data available in electronic format?

Are the appropriate computer software and
hardware technologies available to access the
data?

Are the data in an acceptable format?
Is there a point of contact available to
resolve issues?
Are the data consistent with that of similar st
udies and information?

Are the data results consistently interpreted?
Are the data sufficiently accurate to meet the
goals and objectives of the indicator project?
Can the indicator and supporting data be
reproduced, updated, and/or modified at an
acceptable cost?
Revised Draft
                               35
                                 May  1996

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                           APPENDIX A
          PRESSURE-STATE-RESPONSE/EFFECTS FRAMEWORK
Revised Draft
May 1996

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                                                                              Appendix A
    ,   EPA is considering an expanded version of the OECD PSR framework/5  This enhanced
conceptual framework adds "Effects" as a category to describe impacts of environmental change
on human health and welfare.  The updated version, PSR/E, shown in Figure A-l, also divides
each category into  subcategories (e.g., a distinction  is made between  direct pressures and
underlying pressures).  In addition,  U seeks  to link  the PSR framework explicitly to society's
environmental values, goals, and priorities. Moreover, the framework aims for the incorporation
of spatially referenced (geographic)  information, organized on the basis of ecologically defined
geographic scales; the'adoption of sustainability targets; and the multiscaled  use of information.
Table A-l provides a case study illustrating  the proposed framework.

       Indicators of effects under the PSR/E framework describe relationships between two or
more  pressure, state, and/or  response variables.  They are based on models and analyses that
provide plausible evidence of a linkage between a problem, potential causes, and/or solutions.
The most important types of effects  include effects of underlying pressures on human activities;
effects  of  human  activities (indirect  pressures) on  levels  of  biophysical stressors  (direct
pressures); and effects of pressures or responses on  ecological state, human health, and human
welfare.26  Effect indicators  are  perhaps the most comprehensive environmental indicators
because they  describe relationships  among two or more variables within the other  categories.
Theoretically, effect indicators should provide a greater degree of certainty  in describing cause
and effect relationships than just pressure, state, or response indicators alone; however, the time
involved in data collection to develop effect indicators may detract from their usefulness as an
evaluation criterion of policy performance."
   :!United States Environmental Protection Agency. Conceptual Framework to support Development and Use of
Environmental Information In Decision-Making, April, 1995.
  • :6USEPA. op. cit.
    "Ibid.

Revised Draft                              A-l                                  May 1996

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Process for Selecting Indicators
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Revised Draft
A-2
May 1996

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                                                                                                  Appendix A
         Table A-l.  Case Study of Pressure,  State, Response/Effects Framework and
                             Subcategories (adapted from USEPA, 1995)'
  Example Environmental Value, Goal and Priority. Citizens desire a healthy and vibrant recreational fishery tn the nation's
  estuaries : value).  The goal is to reduce nutrient and toxic loadings from the adjacent watershed to increase current fish
  populations.  Reducing nutrient and toxic pollutant loadings from agricultural and urban areas are the top priority.
            Pressures
               (P)
      Underlying Pressures
      Sociotechnkal Forces:
      population, technology,
    social structure, attitudes &
        practices, policies
        (e.g., burgeoning
   populations and increasing
     density  of development)
    indirect Pressures Human
           Activities:
       agriculture, mining,
     manufacturing, transport.
       energy consumption
        (e.g., runoff from
      agriculture and urban
     areas, direct discharges)
              and
    Natural Processes/Events
       < volcanic eruptions,
           wildfires)
      (e.g., natural erosion)
        Direct Pressures
     Biophysical Stressors:
       pollutants, resource
   extraction, land use change,
         exotic species
       (e.g., animal wastes
   discharges, urban/suburban
     fertilizer runoff, failing
    septic systems, increasing.
    levels of impervious area)
 State of the Environment
           (S)
    Global Ecosystem
  Ambient conditions and
 trends (chemical, physical,
  bio/ecological); Status of
   "valued environmental
    attributes" (VEAs)
     (e.g., large scale
 eutrophication, fish kills,
declines in species diversity
   or abundance, loss of
         habitat)
Regional Scale Ecosystems
    conditions and trends
    (chemical, physical,
  bio/ecological); Status of
   "valued environmental
    attributes" (VEAs)
      (e.g., regional
 eutrophication, fish lolls,
declines in species diversity
   or abundance, loss of
         habitat)
.  Local Scale Ecosystems
    conditions and trends
    (chemical, physical.
  bio/ecological); Status of
   "valued environmental
    attributes" (VEAs) .
(e.g., local eutrophication,
   fish lolls, declines in
    species diversity or
   abundance, fish tissue
  concentration of toxins)
                                Human Health & Welfare
                                   conditions and trends
                                   (chemical, physical,
                                 bio/ecological): Status of
                                  "valued environmental
                                    attributes" (VEAs)
                                  (e.g., concentrations of
                                toxins in humans, fishing
                                  bans or consumption
                                  advisories, incidence of
                                        disease)
    Societal Responses
           (R)
  Government Actions;
  Legislation, regulations,
    policies, monitoring,
    enforcement actions,
 investments, international
      agreements, etc.
  (e.g., implementation of
     Clean Water Act)
 Private Sector Activities
    Compliance, waste
   treatment, mitigation.
 cleanups, process redesign,
           etc.
 (e.g., pollution prevention
   :  planning and
  implementation, animal
    waste management,
    conservation tillage
      integrated pest
      management)
       Individual/
  Household Attitudes &
         Actions
  Recycling, conservation,
contribution to NGOs, etc.
(e.g., household hazardous
waste collection programs,
toxics use reduction, use of
      integrated pest
   management, reduced
      fertilizer use)
                               Cooperative Efforts
                              Research. NGOs, public-
                              private partnerships, etc.
                               (e.g., development of
                              watershed management
                              plans, integrated water
                            quality and living resources
                              monitoring programs)
        Effects (E)
 (Relationships between P,
       S and/or R)
        Linkages
between levels of Pressures
  (Underlying, indirect. &
    Direct), or between
 Pressures and Responses
 (e.g., effects of population
  growth on agricultural
  and industrial output)
    Ecological Effects
   Relationships between
Direct Pressures or Societal
Responses and State of the
      Environment
(e.g., increased density and
area! extent of submerged
aquatic vegetation, reduced
  incidences of hypoxia)
  Human Health Effects
    of Direct Pressures,
  Ecological Changes (in
    State), or Societal
        Responses
 (e.g.,  increased number of
 fishing bans and human
  consumption advisories
    increased disease)
                             Human Welfare Effects
                             of Ecological Changes (in
                                State), or Societal
                                   Responses
                             (e.g, incidence of disease
                               attributed to fish or
                              shellfish consumption,
                            reduced economic value of
                                    fishery)
Revised Draft
                       A-3
                                         May 1996

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                          APPENDIX B




      DRAFT SHORT FORM FOR SCREENING CANDIDATE DATA SETS
Revised Draft                                              May 1996

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                        DittS*
  Data S* Acronym/Short Vain*:
(•Short*) Form
      Data Conpkud:
1.4
                                         :.

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 1.2 St
 L3
2J How
   (I
   (1
           (ctekOM)

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 2.4 Overall response .rate:    __%

 2.5 Wtiat is the geographic coverage of the dot in die data sec? (cheek one)
     r j    National
     [ ]    Regional:   Spediy:
     (]    San:      Soedfr


2.6  WhM dme period (y««) (km the dan MI cover? From 19^^(0 19 __.

2.7  Is the data eoflecdoB a
2.1 Frequency with wfakb d» surrey or dan coflecdoa tflbit it npand:
3.1  Foe WOMB of tft§ fbflowBaj typoi of
    []   WeV
    (J   Sot
    []   Air
    u

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                                                   •~~"* j:-^r~'~*'; , *>\*,vXmZ'•_ ~
 4. i  Did the following dan collection activities have written procedural fi«KM**»g
     soadard mediods) and wort the procedures doamwnted through a QA/QC program
                                      of
                                    review?
    Enviroooeooi
    Biological sampling
                            miytis:
WntttB.
  C^^^J
  CJ
  U
  u
  [I
  [1
                                                       QA/QC review
II
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U
n
n
u
5.1 For lay
    iaarvtior

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6.1
             
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                          APPENDIX C

        SELECTION CRITERIA USED IN OTHER ENVIRONMENTAL
                      INDICATOR PROJECTS
Revised Draft                                              May 1996

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                                                                         Appendix C

Chesapeake Bay Program. 1995. Summary of Environmental Indicator Workshops (draft
document):

Does the indicator reflect the message we want to communicate? Can the public relate?
Who is the intended audience?

Is the indicator tailored to the intended audience?

Do we have  the data?  Defensible and valid?  Consensus on interpretation?  If we do not have
the data, should we recommend its collection?

Is there a benchmark against which we can measure our progress?

Is it simple and direct?

Will  it help to answer  the question, "How  is the Bay?"

Does it reflect established Chesapeake Bay Program goals?

Can we combine this indicator with others to form indices/multi-species "community" indicators?
Revised Draft                            C-l                                MaX l996

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 Process for Selecting Indicators
The State Environmental Goals and Indicators Project.  1995.  Prospective Indicators for
State L'se in Performance Agreements, Florida State University.

Essential Criteria

Measurable—The indicator measures a feature of the environment that can be quantified simply
using standard methodologies with known degree of accuracy and precision.

Data Quality—The data supporting the indicators are adequately supported by sound collection
methodologies, data management  systems and quality assurance procedures to ensure that the
indicator is accurately represented. The data should be clearly defined, verifiable, scientifically
acceptable and easy to reproduce.

Importance—The indicator must measure some aspect of environmental quality that reflects an
issue of major national importance to states and to the fedend government in demonstrating the
current and future conditions of the environment.

Relevance—The indicator should  be relevant to desired significant policy goal, legal mandate,
or agency mission  (e.g., contaminated fish fillets  for  consumption  advisories;  species  of
recreational or commercial value)  that provides information of obvious value  that can be easily
related to the public and decision  makers.

Representative—Changes in the indicator are highly correlated to trends in the other parameters
or systems they are selected to represent.

Appropriate Scale—The indicator responds to  changes  on  an appropriate  geographic (e.g.,
national or regional) and/or temporal (e.g., yearly) scale.

Trends—The data for the indicator should have  been collected over a sufficient period of time
to allow  some analysis of trends or should provide a baseline for future trends.  The indicator
should show reliability over time,  bringing to light a representative trend, preferably annual.

Decision Support—The indicator should provide information to a level appropriate  for making
policy.decisions.  Highly specific  and special parameters  . useful to technical staff,  will not be
of much  significance  to policy staff or management decision makers.

Preferable Criteria

Results—The indicator should measure a direct environmental result (e.g., an impact on human
health or ecological conditions). Indicators expressing changes in ambient conditions or changes
in measures reflecting discharges or releases are acceptable, but not preferred.  Process measures
(e.g., permits, compliance and enforcement activities, etc.) sire not acceptable.

Understandable—The indicator should be simple and clear, and sufficiently nontechnical to be
comprehensible to the general public with brief explanation,  The indicator should lend itself to
effective and appealing display and presentation.
Revised Draft
C-2
May  1996

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                                                                              Appendix C
Sensitivity—The indicator  is  able to  distinguish  meaningful  difference  in  environmental
conditions with an  acceptable  degree  of resolution.   Small changes in the indicator show
measurable results.

Integrates effects/exposures—The indicator integrates effects or exposures over time and space
and responds to the cumulative  impacts of multiple stressors.  It is broadly applicable to many
stressors and sites.

Data comparability—The data supporting an indicator can be compared to existing and past
measures of conditions to .develop trends and define variation.

Cost effective/availability—The information for an indicator is available or can be obtained with
reasonable cost and effort and provides maximum information per unit effort.

Anticipatory—The indicator is capable of providing an early warning of environmental change.
Revised Draft                               C-3                                 Ma?  1996

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Process for Selecting Indicators
Adriaanse, A.   1993.   Environmental  Policy  Performance Indicators:  A  Study on the
Development of Indicators for Environmental Policy in the Netherlands.2*

Indicators should be as aggregative as possible.

They must have a definite appeal, partly by being aptly presented.

They must reflect a trend, with a time scale that is tailored to the problems.

They must relate to cause and effect, or in other words, to the causal chain.

The course of actual developments in time must be seen in relation to existing policy objectives
and necessary measures.

They must be verifiable and reproducible/

Further refinement of the above resulted in the following  criteria:

Acceptable Quality for Data and Methodology (e.g., clearly defined, accurately described, socially
and scientifically acceptable, easy to reproduce)

Sensitivity in time

Policy relevance

Recognizability  and clarity
    28Adriaanse, A.  1993.  Environmental Policy Performance Indicators.
 Revised Draft
C-4
May 1996

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                                                                            Appendix C

The Organization for Economic  Cooperation  and Development.   1994.   Environmental
Indicators.
Policy Relevance and Utility for Users

Provide a representative picture of environmental conditions, pressures on the environment, or
society's responses.

Be simple, easy to interpret, and able to show trends over time.

Be responsive to changes in the environment and related human activities.
Provide a basis for international comparisons.

Be either national in scope or applicable to regional environmental issues of national significance.

Have a threshold or reference value against which to compare it so that users are able to assess
the significance of the values associated with it.

Analytical Soundness

Be theoretically well founded in technical and scientific terms.

Be based on international standards and the  international consensus about the validity.

Lend itself to being linked  to economic models, forecasting information systems.

Measurability

Readily available or made available at a reasonable cost/benefit ratio.

Adequately documented and of known quality.

Updated at regular intervals in accordance with reliable procedures.
Revised Draft                              C-5                                 Ma? l996

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Process for Selecting Indicators
Interagency Working Group for Sustainable Development Indicators. 1995.  Criteria and
Plan  for Selection  of Indicators of Sustainable Development and  Sustainability (draft
document):

Understandable—Should  not  be  obscure or  statistically  difficult  to  understand.   Clear,
understandable, sufficiently universal to be easily communicated.
Relatable to sustainable development and sustainability

Have  a  constant definition over time.   Definition,  measurement technique,  and analytical
methodology is constant over time. Must avoid.discontinuities.

Sufficient historical data available. Preferable to have a recDrd for a 20- to 50-year time period.
Available in electronic form.

Indicators should be national in scope, including summary data and information that scales and
is available  at the state, regional, and  local levels.

Quality known—Metadata should be included for all indicators that shows the quality. This data
should include such information as sensitivity, uncertainty, variability, precision, accuracy, error
and similar analyses.

If combining information, should include economic, environmental, and  social information.

If building toward an index, indicators should be able to t>; combined.

Relevance to policy and issues of concern.
 Revised Draft
C-6
May 1.996

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                                                                           Appendix C

QLF/Atlantic Center  for  the  Environment.   1995.  Criteria and  Ranking  Scheme for
Indicators of Sustainability:

A true measure of sustainability.

Understandable to the community at large.

Focused on a long-term view of the community (20 to 50+ years)

A link between different aspects of the community (social, economic, environmental)

A yard stick against which to measure potential places

A measure of community level sustainability that was not at the expense of global sustainability

Based on  reliable, easily available information

Available  on  a regular (hopefully yearly or biennially) basis
Revised Draft                             C-7                                Ma* 19%

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