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                                Note to the Reader:

       The attached draft report is a draft report of the EPA Science Advisory Board (SAB).
The draft is still undergoing final internal SAB review. Once approved as final, the report will
be transmitted to the EPA Administrator and will become available to the interested public as a
final report.

       This draft has been released for general information to members of the interested public
and to EPA staff. The reader should remember that this is an unapproved working draft and that
the document should not be used to represent official EPA or SAB views or advice. Draft
documents at this stage of the process often undergo significant revisions before the final version
is approved and published.

       The SAB is not soliciting comments on the advice contained herein. However, as a
courtesy to  EPA client offices for this review, it is appropriate for them to consider and advise
the Board on the questions listed below.

       1.     Has the Committee adequately responded to the questions posed in the Charge?
       2.     Are any statements or responses made in the draft unclear?
       3.     Are there any technical errors?

       For  further information, please contact:

             Mr. Thomas Miller, Designated Federal Officer
             EPA Science Advisory Board (1400F)
             1200 Pennsylvania Avenue, NW
             Washington, DC  20460-0001
             (202) 343_9982 Fax: (202) 233-0643
             E-Mail: miller.tom@epa.gov
             WEBSITE: wvvw.eDa.gov/sab/

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March	,2005

EPA-SAB-ADV-05-00__

The Honorable Stephen L. Johnson
Acting Administrator
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20460

             Subject:      Science and Research Budgets for the U.S. Environmental
                          Protection Agency (EPA) for Fiscal Year 2006; An Advisory
                          Report by the EPA Science Advisory Board

Dear Administrator Johnson:

      This letter transmits the advice of the U.S. EPA Science Advisory Board (SAB) on
EPA's science and research budget request for Fiscal Year 2006. The report was developed by
the Board as a result of its meeting and discussions with EPA representatives on February 17 and
18, 2005 in Washington, D.C. The Board also held an informational introductory session with
Agency  representatives on November 30, 2004.

      In conducting this advisory interaction, the Board focused on items in its charge that ask
for advice on: a) the extent to which the science and research programs described by EPA align
with the Agency Strategic program priorities; b) how well EPA's science and research programs
reflect coordination among EPA's own offices; c) how well EPA's science and research
programs complement and make use of environmental science programs conducted outside EPA;
and d) whether EPA's science and research programs are positioned to address the nation's
emerging environmental issues in the coming years?

      The Board's conclusions about the science and research budget request reflect a
fundamental belief that an effective approach to science-based actions at EPA can not be
achieved without a continuing, credible investment in developing the needed scientific
understanding of issues that are at the core of EPA's mission to protect human health and the
environment. Failure to fund a credible science and research program will lead to greater, not
reduced, regulatory burdens. Science is the basis for the effective and efficient implementation
of EPA's mission components irrespective of whether they are based on partnerships, market-
based approaches, or command and control regulations.  Thus, the Board again calls on EPA to
end the erosion of its science and research budget so that the knowledge necessary to support
refinement of the nation's human health and environmental protection actions can be developed.

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                        ADD OTHER SPECIFICSS HERE —
      We appreciate the opportunity to review, and to provide you with advice on, the science
and research investments in the FY 2006 budget request. The Board will be pleased to expand
on any of the findings described in this report and we look forward to your response.
                                Sincerely,
      Dr. M. Granger Morgan, Chair
      EPA Science Advisory Board
Dr. Genevieve Matanoski, Chair
Science and Research Advisory Panel

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                                       NOTICE
This report has been written as part of the activities of the EPA Science Advisory Board, a public
advisory committee providing extramural scientific information and advice to the Administrator
and other officials of the Environmental Protection Agency.  The Board is structured to provide
balanced, expert assessment of scientific matters related to problems facing the Agency. This
report has not been reviewed for approval by the Agency and, hence, the contents of this report
do not necessarily represent the views and policies of the Environmental Protection Agency, nor
of other agencies in the Executive Branch of the Federal government, nor does mention  of trade
names or commercial products constitute a recommendation for use. Reports of the EPA
Science Advisory Board are posted on the EPA website at http://www.epa.gov/sab.

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                    U.S. Environmental Protection Agency
                            Science Advisory Board
                   Participants in the February 17-18, 2005
                    Science and Research Budget Advisory

BOARD CHAIR
Dr. M. Granger Morgan, Carnegie Mellon University, Pittsburgh, PA

ADVISORY PANEL CHAIR
Dr. Genevieve Matanoski, Johns Hopkins University, Baltimore, MD

SAB MEMBERS

Dr. Henry Anderson, Wisconsin Division of Public Health, Madison, WI

Dr. James Bus, The Dow Chemical Company, Midland, Ml

Dr. Trudy Ann Cameron, University of Oregon, Eugene, OR

Dr. Kenneth Dickson, University of North Texas, Denton, TX

Dr. Baruch Fischhoff, Carnegie Mellon University, Pittsburgh, PA

Dr. A. Myrick Freeman, Bowdoin College, Brunswick, ME

Dr. James Galloway, University of Virginia, Charlottesville, VA

Dr. Domenico Grasso, The University of Vermont, Burlington, VT

Dr. Rogene Henderson, Lovelace Respiratory Research Institute, Albuquerque, NM

Dr. Philip Hopke, Clarkson University, Potsdam, NY

Dr. Catherine Kling, Iowa State University, Ames, IA

Dr. George Lambert, Robert Wood Johnson Medical School/ University of Medicine and
Dentistry of New Jersey, Piscataway, NJ

Dr. Jill Lipoti, New Jersey Department of Environmental Protection, Trenton, NJ

Dr. Michael J. McFarland, Utah State  University, River Heights, UT

Dr. Rebecca Parkin, The George Washington University, Washington, DC

Dr. David Rejeski, Woodrow Wilson International Center for Scholars, Washington, DC

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Dr. Kristin Shrader-Frechette, University of Notre Dame, Notre Dame, IN

Dr. Deborah Swackhamer, University of Minnesota, Minneapolis, MN

Dr. Thomas Theis, University of Illinois at Chicago, Chicago, IL

Dr. Robert Twiss, University of California-Berkeley, Ross, CA

Dr. Terry Young, Consultant to Environmental Defense, Oakland, CA

Dr. Lauren Zeise, California Environmental Protection Agency, Oakland, CA

SCIENCE ADVISORY BOARD STAFF
Mr. Thomas Miller, Washington, DC
                                       in

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                             TABLE OF CONTENTS
1.  INTRODUCTION	Error! Bookmark not defined.
1.  INTRODUCTION	1
  1.1 Background	Error! Bookmark not defined.
  1.1 Background	1
  1.2 Charge to the Science Advisory Board	1
  13 Format of this Report	1
RESPONSE TO THE CHARGE	Error! Bookmark not defined.
RESPONSE TO THE CHARGE	2
  2.1 Summary Conclusions and Remarks	2
  2.1 General Conclusions and Remarks	Error! Bookmark not defined.
  2.2 Cross-Goal Issues: Identifying Critical Needs and Opportunities	9
  2.3 Goal 1 - Clean Air and Global Climate Change	15
  2.2 Goal 1 - Clean Air and Global Climate Change	Error! Bookmark not defined.
    2.3.1 Alignment:	15
    2.3.2 Coordination	16
    23.3 Collaboration	17
    23.4 Emerging Issues:	18
  2.4 Goal 2 - Clean and Safe Water	19
  2.3 Goal 2 - Clean and Safe Water	19
    2.4.1 Alignment	19
    2.4.2 Coordination	21
    2.4.3 Collaboration	21
    2.4.4 Emerging Issues	22
  2,5 Goal  3 - Land Preservation and Restoration	22
    2.5.1 Alignment	22
    2.5.2 Coordination	23
    2.5.3 Collaboration	23
    2.5.4 Emerging Issues	24
  2.6 Goal 4 - Healthy Communities and Ecosystems	25
    2.6.1 Alignment	25
    2.6.2 Cooperation	28
    2.6.3 Collaboration	28
    2.6.4 Emerging Issues	29
  2.7 Goal 5 - Compliance and Environmental Stewardship	30
    2.7.1 Alignment	30
    2.7.2 Cooperation	32
    2.73 Collaboration	33
    2.7.4 Emerging Issues	34
REFERENCES	35
                                     IV

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         SCIENCE AND RESEARCH BUDGETS FOR THE U.S. ENVIRONMENTAL
 PROTECTION AGENCY (EPA) FOR FISCAL YEAR 2006; AN ADVISORY REPORT
                    BY THE EPA SCIENCE ADVISORY BOARD
                               1. INTRODUCTION
 6   1.1 Background
 7         This report transmits the advice of the U.S. EPA Science Advisory Board (SAB) on the
 8   Fiscal Year 2006 budget request for EPA's science and research activities.  This report was
 9   prepared by the Board after two meetings (one on November 30, 2004 and the other held from
10   February 17-18, 2005) during which discussions were held between the Board and EPA
11   representatives. These meetings were announced in the Federal Register (see 69FR65427 and
12   70FR4848).

13   1.2 Charge to the Science Advisory Board
      The following four charge questions were given by the Agency to focus the Board's
attention during its evaluation:

         a) Based upon the SAB's knowledge of EPA's science programs, do the planned
         science and research activities included in EPA's FY 2006 budget align with the
         Strategic program priorities identified by EPA's Research, National Program, and
         Regional Offices?

         b) Do the science programs of EPA's National, Regional, and Research Offices
         reflect coordination among EPA organizations and do they complement one another?

         c) Based on EPA's presentations to the SAB, and Board members' own knowledge of
         efforts in the broader scientific community, how well does EPA's science program
         appear to complement environmental science programs elsewhere?  Is there evidence
         that EPA's efforts are coordinated with the science efforts of other governmental
         organizations and relevant organizations outside of government?  Is there evidence
         that EPA has an approach for capturing the science products from these other
         organizations?  Are there ways the Board could suggest that will enhance this
         coordination?

         d)  Based upon the SAB's knowledge of EPA's science programs, are those programs
         positioned to address the nation's emerging environmental issues in the coming years?

1J Format of this Report

      Following this Introduction, the report provides specific responses to the questions
contained in the Agency's charge to the Board.

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  1                                2.  RESPONSE TO THE CHARGE
  2

  3          The Board annually conducts an evaluation of EPA's science and research budgets. The
  4    report of this activity is used by the EPA Administrator and Congressional Staff in their budget
  5    and planning activities. In recent years, this advisory function has been moved to the larger,
  6    chartered Board from a smaller SAB standing committee. This enhanced the visibility of the
  7    activity and significantly increases the resource and types of expertise available to conduct the
  8    activity. The Board has organized itself into six Teams to carry out this advisory.  Five of these
  9    correlate with specific EPA strategic Goals and one is a Cross Goal Team. The report below was
10    developed by the Teams, and Board staff, as a result of meetings to discuss EPA's science and
11    research activities. The summary in section 2.1 has been prepared from the individual Team
12    contributions that are contained in sections 2.2 through 2.7 of this report.
13
14    2.1 Summary Conclusions and Remarks
15
16          Comments in this report are the result of the SAB's evaluation of the FY 2006 science
17    and research budget request. The Board recognizes that this budget is now final and that the
18    major opportunity for EPA to adjust its science and research program for the future is to
19    incorporate needed changes as  it conducts  the planning phase in support of developing its FY
20    2007 science and research budget request.  In addition, EPA might, with the help of Congress, be
21    able to implement some critical adjustments while it implements its FY 2005 program and
22    develops its FY 2006 operating plan.
23
24          The SAB evaluated various  aspects of the Agency's FY 2006 Science and Research
25    budget request.  It considered:  1) how well the  science and research aligned with the Agency's
26    strategic priorities; 2) whether there was effective internal coordination of the science and
27    research programs among EPA's offices; 3) the extent of EPA's external coordination in the
28    planning and conduct of its science and research programs; and how well the Agency was
29    positioned to identify and to developed knowledge on emerging human health and environmental
30    issues that are within EPA's mission.  The Board's general conclusions about each of these
31    topics are summarized below.  Additional issues identified by the Board are also discussed.
32
33    a) Alignment of Science and Research with Strategic Priorities:  EPA's proposed science and
34       research programs appear to align well with the Agency's strategic priorities in all goals.
35       However; the true issue here is not merely about this type of alignment, rather it is one of
36       resource constraints that preclude EPA from conducting science in all the areas that are
37       necessary for supporting effective environmental policy development.  A number of specific
38       examples of research needs that compromise the science-research-program priority alignment
39       are highlighted in the document (e.g., mercury and ammonia monitoring; drinking water
40       distribution systems research; aquatic system assessment, protection and restoration;
41       ecological indicators; human behavioral response  to environmental pollution).
42
43    b) Internal Coordination of EPA Science and Research: The Board recognizes that EPA's
44       internal coordination of science and research programs has steadily improved in recent years.
45       The ORD research planning process is credited with much of this improvement.  This report
46       cites two  examples of multi-year plans that exemplify this coordination (contaminated sites

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   and RCRA research plans).  The development of the complex 3MRA model was cited as an
   example of a work product that demonstrates such coordination. EPA cooperation in this
   regard was suggested as a model for other agencies, even though the Members acknowledge
   that there is a need for more transparency in EPA's conduct and documentation of these
   interactions. There is also a sense among some members that additional attention should be
   given to satisfying Regional Office needs in this process.

c) External Coordination of EPA Science and Research: The SAB sees evidence of progress in
   EPA's coordination of its science and research with other federal partners. A complete and
   quantified representation of EPA's coordination and leveraging is not available for the Board
   across all programs; however, it is clear that in some programs there is now, and has been for
   a considerable time, extensive and effective coordination (e.g., the drinking water research
   program is coordinated nationally and more recently international cooperation has been
   pursued).  Other areas shov/ing good coordination include: contaminated sites and RCRA
   research, endocrine disrupters, children's health, CAFOs, Advanced Monitoring Initiative,
   Computational Toxicology Center, and the Pollution Abatement Control Expenditures
   survey). Other areas show room for additional cooperation and partnering (e.g., risk
   assessment for air toxics, ecosystem endpoints associated with air pollution, water quality
   research).

       Information on the amount of leveraging can be helpful in showing the degree to which
   environmental research portfolios across the government intersect, the extent of coordination
   of the various portfolios, and the nuanced differences in the research being conducted in one
   agency versus another.  Therefore, the Board encourages EPA to expand its quantification of
   the leveraging and cooperative efforts it has going on with other agencies and organizations.
   In addition, in the face of resource constraints that are likely to continue to be the situation
   faced by EPA in the near term; the Board strongly encourages EPA to pursue collaborative
   ventures with organizations beyond those associated with the Federal government.
   Opportunities for such partnerships  exist with governmental agencies other than at the
   Federal level, nonprofit organizations, and the private sector.

d) Emerging Issues:  EPA's very limited, and worsening, ability to conduct research that
   identifies, as well as builds necessary knowledge and understanding of emerging issues, is a
   significant concern to the Science Advisory Board. The Board noted that, in each of the Goal
   areas, EPA science and research is largely focused on legacy issues, i.e., short-term, mission-
   specific topics. Conducting anticipatory research would allow EPA to take advantage of
   current windows of opportunity to understand and work in the social and technological
   systems that are now developing in the United States and in the world. This will not only
   affect EPA's ability to meet its mission of protecting human health and the environment, it
   also risks influencing the future U.S. economy by opening our products to safety and other
   challenges from other nations when they compete for a place in the international market.

       The decreased ability to anticipate future environmental issues was linked by the Board
   to decreases in science and research resources at EPA in general as well as the increased
   demands of programs for short-term information. Government accountability systems were

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 1       thought to contribute to the problem because of their perceived focus on short-term program
 2       outcomes.
 3
 4          The Board recommends that EPA develop ways to identify and focus on opportunities for
 5       maj or innovations or new approaches needed to improve our understanding of increasingly
 6       complex, emerging, environmental issues. The Board believes that EPA is well positions to
 7       serve as a catalyst for collaborative research that anticipates the future.
 8
 9    e) Aspects of STAR: The EPA Science to Achieve Results (STAR) program embodies many
10       aspects that are of significant importance to the science and research that are necessary for
11       EPA's development of policies that will protect human health and the environment, and at
12       the same time contribute to the economy of the US as well as benefit the world. STAR can
13       be viewed from a number of perspectives in this regard, including: 1) its contribution to a
14       total EPA science and research program that makes effective use of a variety of research
15       assets inside and outside the Agency;  2) its contribution to a balanced research program that
16       has a core component that looks to the mid- and long-term needs of EPA as well as the needs
17       of EPA for near-term problem-driven information; and 3) its contribution to specific research
18       needs that have a diffuse constituency with less immediate information needs.
19
20          i) Complimentary Science and Research Assets:  EPA has a variety of assets that make
21              up its total science and research program.  On the near-term policy development
22              side, existing science is often assessed and predictions of risk and risk reduction made
23              by organizational components that reside in, or who are contracted to, EPA's program
24              and regional offices. Some major assessments, and much of the assessment methods
25              development activity, also occur in the EPA Office of Research and Development.
26              On the research side, much of EPA's activity is conducted by, or in association with
27              the EPA Office of Research and Development (ORD). ORD conducts this work
28              either internally using its own scientists, or through a variety of extramural
29              approaches (e.g, grants, co-operative agreements, contracts) that engage academic or
30              other institutions that conduct  research.
31
32                Continued cuts to the STAR program degrade an important part of this total
33              science and research program  - the extramural component.  Historically, extramural
34              research has provided EPA with four essential functions: a) access to expertise
35              outside of the Agency, b) invigoration of EPA science and prevention of stale
36              research from taking hold; c) a flexible  mechanism to identify and address emerging
37              issues; and d) leveraging of funds with other agencies or partners. Reducing
38              extramural funds has both direct and indirect effects, and is equivalent to spending
39              one's investment principal. This will have significant long-term costs to the Nation's
40              need for knowledge to inform policy development and help U.S. producers to
41              compete in the international market place.
42
43          ii) Balanced Research Program: For many years, consideration of EPA's total research
44              program has grappled with the need for EPA to conduct both "core research" and
45              "problem-driven research." Though fitting specific science and research components
46              into two such categories is difficult, the SAB has routinely in its reports to the

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          Administrator advised that both types of research are necessary and has
          recommended that an approximate split of 5o% core and 50% problem-driven
          research is reasonable.  The core component of this program helps EPA develop
          knowledge that is necessary to understanding current issues and to identifying and to
          be more prepared to deal with issues that will be on tomorrow's agenda.  The
          problem-driven component allows EPA to develop methods and generate information
          that is needed by EPA program and regional offices to carry out the day-to-day
          activities that support the development of sound environmental policies.   Cuts to the
          STAR program thus degrade EPA's ability to conduct the core research needed to
          maintain EPA scientists at the cutting edge of their disciplines and degrades EPA's
          overall science capability.

             The need for EPA's conduct of different types of research has been considered
          many times in the past.  The National Academy of Sciences, the EPA Science
          Advisory Board, and others have noted the importance of EPA's core and problem-
          driven research to the attainment of the nation's  environmental goals. Effective
          science and research planning requires the full cooperation across EPA offices to
          attain an appropriate balance among the various  research types. This coordinated
          planning must be a multi-directional activity in which EPA's Office of Research and
          Development openly discusses  its core and applied research plans with program
          offices and program offices openly discuss their own science and any existing
          research activities with ORD. Without this interaction, the development of an overall
          cohesive and complimentary EPA science and research program is not possible.
          Thus, the SAB considers the issue of cooperative research planning each year during
          its science and research budget review,

      iii) Research Areas Having Diffuse Constituencies and Uncertain Time Horizons: Two
          aspects of this component are best exemplified by emerging issues and ecosystem
          research. Both share the common problems of focusing on complex  and uncertain
          issues and their long-term time horizons.

             EPA often must look at legacy issues that are on its active agenda. Though
          desiring to look at longer term,  emerging issues, it is often forced by  resource and
          time constraints to keep its focus short. The Agency has thus not been able to give
          significant attention to exploratory research that would allow it to take advantage of
          current windows of opportunity to understand and work in the social and
          technological systems that are now developing in the United States and in the world.
          In fact, EPA has further diverted funds from exploratory research in the FY 2006
          budget thus exacerbating the problem. This  will not only affect EPA's ability to meet
          its mission of protecting human health and the environment, it also risks influencing
          the future U.S. economy by opening our products to safety and other challenges from
          other nations when they compete for a place in the international market.

             Ecosystem health is an important aspect of the nation's environmental quality.
          Among the major elements of the Agency's strategic plan is a commitment to
          "protect, sustain, and restore the health of natural habitats and ecosystems."

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 1              Fundamental to this objective is creation of scientific tools to assess the current
 2              condition of the nation's ecosystems, and then apply these tools to assemble a
 3              coherent picture of the state of our ecological systems. The importance of this
 4              objective is underscored by the conclusions of the Agency's  Report on the
 5              Environment (EPA SAB, 2004b), as well as the independent "State of the Nation's
 6              Ecosystems" report of the Heinz Center (The Heinz Center, 2003), that most of the
 7              information required to characterize and track changes in ecosystem health is not
 8              currently available nationwide.
 9
10                 This research not only informs Goal 4 objectives, but also supports efforts under
11              EPA's other strategic Goals. For example, the ecological indicators that were being
12              developed under ecosystems research were to be the next generation of integrated
13              indictors for use by the States to meet their assessment requirements under the Clean
14              Water Act (303 listings). The FY 2005 budget made deep cuts in the programs related
15              to ecosystem assessment (e.g. ecological indicators) and the FY 2006  budget request
16              makes even deeper cuts, including nearly $5M from Western EMAP,  National
17              Coastal Assessment, and Regional Vulnerability Assessment programs.
18
19                 These cuts appear emblematic of a broader trend to cut ecosystem research,
20              despite its fundamental importance to the Agency's mission. Ecosystem research has
21              long received too  little attention at EPA, and the situation is getting worse.  Important
22              parts of EPA's mission of environmental  protection can not be efficiently and
23              adequately addressed if the Agency does not have a strong base in ecosystem
24              research. Part of the problem seems to be that ecosystem health  does not have the
25              same immediate constituency within EPA that human health does even though
26              American's have clearly demonstrated their concern for the quality of their wild and
27              managed lands and waters and expect government to provide adequate protection. If
28              the Agency does not improve its research capabilities in this  area, it will not be able
29              to meet public expectations nor its regulatory responsibilities for protection of the
30              environment.
31
32                 The Board strongly urges the Agency to reverse the erosion  in ecological
33              research, determine the most effective ways to proceed with  ecological assessment,
34              and reinstate funds to  pursue them.  In addition, EPA, while continuing to look at
35              legacy issues, needs to work on developing strategies for identifying and focusing on
36              opportunities for major innovations or new approaches which could have large
37              impacts on improving our nation's future understanding of environmental issues and
38              regulatory performance, especially new and emerging environmental  problems.
39
40    f) Pilot Research Program: EPA will begin a $20M pilot program devoted to research needs
41       determined by  EPA's regulatory  offices and ORD.  In this program, OAR, OW, OPPTS, and
42       OSWER will each be provided with S4.5M, and OPEI S2.0M, to use in a fee-for-service
43       arrangement with the Office of Research and Development to obtain additional research
44       focusing on their own office's specific highest priority research needs. A number of topics
45       have been identified as the focus of this research in FY 2006 (e.g., improved  understanding
46       of air toxics sources, distribution and effects; identifying the most significant exposures, risks

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    and uncertainties for criteria pollutants; epidemiological studies for drinking water
    contaminations; test methods research and implementation for water quality and drinking
    water; site remediation, resource conservation, risk analysis and reduction, and waste
    minimization; aggregate exposure, cumulative risk, and hazard characterization; and
    environmental economics research and analysis needs).

       The Board believes that the new pilot research program is a very interesting development
    which holds the potential to better serve the immediate research needs of programs and
    regions.  It is innovative and appears to be a good investment that will allow the program
    offices to purchase research internally from ORD for specific needs.

       However, EPA is in the early stages of developing the program and it should carefully
    consider how it allocates specific funds. On this issue, Board members have a range of
    views. On the one hand, some members encourage the Agency to implement this  as a
    "customer-driven" initiative, allowing program office needs to  clearly drive the process to fill
    knowledge gaps.  They suggest the Agency use peer-review in  selecting and awarding
    specific projects that are funded through this mechanism and caution against potential
    duplication of efforts and using the funds for operational expenses.

       On the other hand, some members question the prior allocation of "office-specific-
    shares" of the $20M available and suggest that some other strategy might be used to, within
    some limits, adjust the allocations according to the quality of research questions identified.
    Members suggested one possible strategy that would make allocations based on submission
    and evaluation of research proposals with the selection based on EPA-wide scientific merit.
    A number of factors were suggested to use in assigning preference. These members noted
    that in any case, it would be important to design the pilot program with specific objectives in
    mind so that it could be evaluated and improved over time.  They  also cautioned that it
    would be important to not allow too large a proportion of ORD's research to become too
    tightly tied to the day-to-day information needs of agency offices and regulatory schedules,
    since that could begin to seriously erode the agency's science base and its ability to address
    new problems and improve  future performance.

g) Social Sciences Research: Research on economics and decision  sciences within ORD and the
    National Center for Environmental Economics (NCEE) supports the attainment of all EPA
    strategic goals.  While the agency has made progress in the development of an internal
    coherent economics research program, there is no evidence of such progress for any of the
    other social sciences.

       EPA has long  had insufficient expertise and research in social and behavioral research:
    research  on how best to communicate about risks;  on how to better evaluate intangible
    impacts such as ecological damage; on how to improve the application of benefit-cost and
    cost-effectiveness methods to setting environmental priorities; or how to develop effective
    voluntary and participatory programs, etc.  In the current review several Board Teams noted
    what appears to be a further erosion of support for what is already  a very inadequate effort in
    social and behavioral research.  If this process can not be reversed it will seriously damage
    the efficiency and effectiveness of the agency's programs in the future.

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 1
 2          One area where this problem is especially apparent is in EPA's new work on homeland
 3       security for water and building systems. Here EPA does not seem to recognize the need for
 4       the systematic use of the research literatures in human factors and ergonomics. Nor is there
 5       any apparent commitment to rigorous empirical evaluation of performance under realistic
 6       field conditions, with real people, under real time pressures, and, often, real fears. Without
 7       this, the Agency will not be able to demonstrate the efficacy or cost-effectiveness of its
 8       solutions. Nor will it be able to provide decision makers with the realistic estimates of system
 9       performance that are essential to effective planning.
10
11          The goals of increased compliance, pollution prevention, and environmental stewardship
12       elucidated in Goal 5 relate fundamentally to social science and/or interdisciplinary questions.
13       EPA was once a leader in supporting risk communication research and has produced many
14       publications with risk communication guidance; however, the new generation of risk
15       communication knowledge is significantly underfunded and now appears to be undervalued
16       by much of the Agency. To increase the impact of the agency's research on public policy, a
17       much broader view of risk communication and the sciences that underpin strategic
18       approaches is essential.  This cannot be achieved without greater recognition and
19       incorporation of social science knowledge and methods into the agency's research and
20       operating programs.
21
22          A major theme running through all the strategic goal descriptions in the EPA 2003 -
23       2008 Strategic Plan is the need to move forward where possible from the largely command
24       and control regulatory regime that is now the cornerstone of U.S. national environmental
25       policy.  For example, the Strategic  Plan calls for a move toward pollution prevention (Goals
26       4 and 5), development of innovative waste management practices (Goal 3), and development
27       of voluntary programs of materials management and resource conservation; under the
28       Resource Conservation Challenge (Goal 3).  This proposed shift raises two important
29       questions. The first is how to encourage such voluntary actions.  The second is determining
30       the proper mix of public sector and privately funded research on improved waste
31       management practices, innovative pollution control technologies, and pollution prevention.
32
33          The behavioral, social, and decision sciences necessary to support environmentally
34       effective programs that rely on voluntary incentives are at an early stage of development. In
35       particular, while the literature has identified some effective, targeted programs that have led
36       to real environmental improvement at small scales, there is little or no research supporting
37       the view that costly or major changes in the production processes of firms or individuals can
38       be expected to occur in the absence of major financial incentives.  There is also little research
39       to support the provision of guidance on the design of programs to encourage voluntary
40       actions. Understanding incentives and constraints is important in explaining actions and
41       choices of people. If the EPA is to try to increase its use of voluntary mechanisms to achieve
42       increased environmental improvement and compliance, it must significantly invest in the
43       appropriate disciplinary and interdisciplinary research that will provide the bases for the
44       approaches proposed.
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       There has been an increasing amount of consideration in the literature on the longer-run
    consequences of environmental shocks to neighborhoods. These effects have an implication
    to environmental justice aspects of EPA's actions. For example, a temporary
    environmental shock can have effects on community dynamics that are completely reversed
    when the shock is over, provided that perceptions of risk are not changed permanently by this
    temporary environmental shock, However, longer-term environmental hazards can set in
    motion systematic shifts in neighborhood composition that can affect neighborhoods long
    after the hazard has been removed (as in the case of the identification and clean-up of a
    Superfund site). An example of sociological research that would be important to this issue is
    the affect of shocks, and their resolution, on housing prices.

       Another example of an area in which additional research is needed is on valuing the non-
    market ecosystem benefits of reducing pollution.  For this we need to be able to demonstrate
    that people are able to perceive differences in ecosystem quality sufficiently to be able to
    form values that can be measured and incorporated in benefit-cost analyses.

h) Investments in Homeland Security Research:  While Homeland Security research should
    address homeland security as its first priority, many of the issues involved have "dual use"
    dimensions and can often also be approached so as to serve multiple Agency objectives (e.g.,
    the development of real time sensors will  result in products that will have great potential for
    chemical and microbial monitoring for issues beyond homeland security).  Funds allocated to
    Homeland Security research should  address research issues and not be diverted to operational
    program needs. The dual nature of research applies to many other Agency research programs
    that are nominally tied to supporting EPA's mission is a specific area (e.g., SOW A, TSCA,
    CERCLA FIFRA, etc.). Exploring this dual applicability for activities is important. The
    Board believes that Homeland Security research should be approached in a manner that helps
    EPA further develop its research programs in an integrated manner, and with an eye toward
    obtaining broader utility from specific research efforts when that is possible.

2.2 Cross-Goal Issues: Identifying Critical  Needs and Opportunities

       The Cross-goal Team of the SAB is interested in several types of issues that may not be
the sole focus of any one Goal-specific Team as it addresses the FY 2006 science and research
budget plans of EPA.  One type is the group of issues shared by several programs ("in-common
issues").  For these issues, the sum of current science efforts and planning for the future are not
able to be adequately addressed by any one program (e.g., information technology, sensing and
monitoring networks, linkage to external science programs, the science-policy interface itself).
A second type is the group of issues that may serve to connect separate programs ("bridging
issues").  Examples of bridging issues include, models, tools, and  emerging research and
technology that would  enable cross-media or  multi-program efforts (increasingly, problems in
human health and environmental degradation are of this kind). A third type is a group of issues
mat may "fall through the cracks" ("unnoted issues").  These issues, especially emerging ones,
may lie beyond the scope of any  one program and may go unseen  or be given insufficient
attention and investment. Here, time  can be important. Although, it is not exclusively "cross-
goal," attention to time horizons of planning across all programs is needed.  The hope for many
of these issues is that they may identify  opportunities for science input that might solve problems

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 1    at their inception, and thus avoid costly reengineering and control.  Failure to notice, inform and
 2    invest can create bottlenecks in our nation's advancement of technology and economic growth.
 3    The Board notes a number of each of these issues in the following paragraphs.
 4
 5           a) Preparing for Tomorrow: While the agency has been making good progress in
 6    developing a more systematic approach to identifying research needs for its normal operations
 7    (often referred to as "legacy" issues), it still needs to work on developing strategies for
 8    identifying and focusing on opportunities for major innovations or new approaches which could
 9    have large impacts on improving our nation's future understanding of environmental issues and
10    regulatory performance, especially new and emerging environmental problems. The Agency has
11    not demonstrated any significant attention and investment in the types of exploratory research
12    that would allow it to take advantage of current windows of opportunity to understand and work
13    in the social and technological systems that are now developing in the United States and in the
14    world. This will not only affect EPA's ability to meet its mission of protecting human health and
15    the environment, it also risks influencing the future U.S. economy by opening our products to
16    safety and other challenges from other nations when they compete for a place in the international
17    market.  The agency must be more forward looking in its preparation for tomorrow.
18
19           b) Cross Cutting Issues: The agency should also increase its attention to cross-cutting
20    issues which now seem to receive too little attention because they "fall between the cracks" in
21    the media-by-media organization of the agency. In calling for increased attention to these issues,
22    the Board is not calling for a massive new agency-wide strategic planning effort. Rather, it is
23    urging the agency to put in place a process by which, at any given time, two or three topics of
24    this sort have been identified and are receiving serious analytical attention. While we do not
25    want to prescribe any specific topics for such attention, we can illustrate this need with a few
26    examples:
27
28         1) Are the networks, instruments and programs of routine nation-wide monitoring of
29            pollutants in air and water producing time series data which are adequate for the
30            research and regulatory needs which the agency will likely face over the next couple of
31            decades.1
32         2) If an influence diagram was constructed to illustrate all the elements of the processes by
33            which nano-particles and materials could lead to beneficial or negative impacts, which
34            links in that diagram are most critical in understanding the potential health and
35            environmental factors that may be involved?  How adequately is ongoing research (in
36            the agency or elsewhere in or outside of the government) likely to be able to address
37            these links in the future as EPA begins to address and deal with these issues.
38         3) Is the science base that the Department of Energy is currently developing on deep
39            geological sequestration of CC>2 likely to produce the understanding that the EPA will
40            need to implement science-based regulation of this technology if and when that need
41            arises?
42         4) Can traditional risk  assessment methods based upon multiplicative factors now,
43            sometimes, be effectively replaced with probabilistic methods?
              We know that something like this has been done in air, it is less clear if it has been done in water where
              routine monitoring has been far more spotty, or for cross-media issues.
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       While the need for EPA to look beyond its immediate agenda has existed for some time,
it has become more pressing because shrinking budgets tend to force the Agency to concentrate
on traditional legacy issues.  New and cross cutting issues thus become disadvantaged (e.g.,
nanoparticles, pollution prevention, ecosystems). Without an ongoing effort to identify
important neglected needs and a process for focusing attention on emerging issues, the EPA will
not be able to adequately meet its mission of protecting the nation's environmental components,
including humans, in the coming years.

       c) New Research Pilot on Programmatic Research Needs: The new EPA program to set
aside $20-million to support research needs identified by EPA's regulatory offices and ORD is a
very interesting development v/hich holds the potential to better serve the immediate research
needs of programs and regions However, it appears that the agency is still in the early stages of
figuring out how those funds should be allocated.

       Current plans call for $4.5-million for each of several specific programs: air (i.e., OAR),
water (i.e., OW), pesticides and toxic substances (i.e., OPPTS), and waste (i.e., OSWER) and $2-
million for policy and economics (i.e., OPEI).  The agency might do well to think about whether
prior allocation of "office-specific shares" is the best strategy or whether, within some limits, the
allocation might be adjusted in response to  the quality of research questions identified.  In the
Board's view it is important to design this pilot program with specific objectives in mind so that
it can be evaluated and improved with time.

       One strategy that might warrant consideration for application to a pilot research program
would be to use an allocation scheme based on EPA-wide scientific merit. This could begin with
a request for proposals to be developed by regulatory offices; move to an initial screen with an
internal ORD peer review, and then go on to run quick external mail reviews of proposals. Then
in making funding decisions the agency would be well advised to give preference to proposals
which:
    1) Make a strong case that the proposed work involves research, not funding for ongoing
       operations;
    2) Addresses an important programmatic problem for which funding is currently scarce and
       is receiving too little attention;
    3) Provides a specific discussion of how the proposed activity will be  evaluated so as to
       contribute to the overall evaluation of the pilot program;
    4) Shows how the proposed research is  related to policy development or program decision
       making; and/or
    5) Involves multi-media, cross program and/or multi and cross regional dimensions.

       We believe that this program could  be very valuable to improving the ability of agency
R&D to contribute to the ongoing needs of the agency's programs. At the same time, we caution
that it is important to not allow too large a proportion of ORD's research to become too tightly
tied to the day-to-day information needs  of agency offices and regulatory  schedules, since that
could begin to seriously erode the agencies science base and its ability to address new problems
and improve future performance.
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       d) The Importance of Ecosystems: Ecosystem health is an important aspect of the nation's
environmental quality. Unfortunately ecosystem research has long received too little attention at
EPA, and this review produced strong evidence that the situation is getting worse. Issues such as
how best to deal with invasive species, how to protect valuable wetlands and the services they
provide to society, and how to protect important ecosystems in the face of changing climate, can
not be efficiently and adequately addressed if the Agency does not have a strong base in
ecosystem research.

       Unlike environmental health, ecosystem health does not have the same level of
immediate constituency. But American's have clearly demonstrated that they care about the
quality of their wild and managed lands and waters and expect government to provide adequate
protection.  If the Agency does not improve its research capabilities in this area, it will not be
able to meet that public expectation.  Nor will it be able to meet its regulatory responsibilities.
Cuts in funding ecosystem research programs, such as EMAP, will also have an impact on EPA's
ability to meet objectives to protect water quality.

       e) Sustaining and Building Social and Behavioral Research: The EPA has long suffered
from a deficiency  of expertise and research activity in social and behavioral research: research on
how best to communicate about risks; on how to better evaluate intangible impacts such as
ecological damage; on how to improve the application of benefit-cost and cost-effectiveness
methods to setting environmental priorities; or how to develop effective voluntary and
participatory programs, etc.

       In the current review several Board Teams noted what appears to be a further erosion of
support for what is already a very inadequate effort in social and behavioral research. If this
process can not be reversed  it will seriously damage the efficiency and effectiveness of the
agency's programs in the future. This is especially true in the area of homeland security.

       The agency does have expertise in economics but it has very limited expertise in other
fields of social and behavioral science. As a consequence, when a program realizes that it needs
a social dimension in its  work, it often does not understand the current state of expertise in the
relevant fields, does not know what to ask for, and ends up with less than adequate research
designs.

       This problem is especially apparent in the Agency's new work in improving homeland
security for water and building systems. The descriptions we heard of plans to design and
evaluate options (e.g., sensor arrays, decontamination procedures) did not seem to be making any
systematic use of the research literatures in human factors and ergonomics.  Nor did they  seem to
have any explicit commitment to rigorous empirical evaluation of performance under realistic
field conditions, with real people, under real time pressures, and, often, real fears. If so, then the
Agency will not be able to demonstrate the efficacy or cost-effectiveness of its solutions. Nor
will it be able to provide decision makers with the realistic estimates of system performance that
are essential to effective planning,

       The options being developed will provide imperfect signals regarding risks (e.g., has an
attack occurred, what is the  residual after decontamination). Recommended practice is to couple
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  1    risk analysis and risk communication, so that systems produce the information that people need,
  2    which is then communicated to them in a cogent, authoritative, and comprehensible way. The
  3    program's approach to these issues did not seem to involve either using or conducting research.
  4    Communication outward will, apparently, be approached by drafting common sense procedures,
  5    without accessing the research relevant to their feasibility and without commitment to empirical
  6    evaluation.  There was no expressed intention to involve the public and its representatives in
  7    questions like acceptable decontamination standards. These were deferred to some other body,
  8    which could not be described to us. If this is the case, then the Agency will be producing
  9    incomplete, possibly counterproductive solutions, without increasing its own research capacity
10    for topics that arise in many areas of its operations (e.g., water contamination from non-terror
11    sources).
12
13          f) The Importance of Sustaining and Nurturing Extramural Research: As EPA's research
14    needs continue to grow and the resources to support this research either remain constant or
15    contract, it is not surprising that the agency may consider moving support out of extramural
16    programs to sustain internal programs.  During the course of our review we have seen several
17    indications that such erosion is indeed occurring.
18
19          The STAR program and other programs of extramural support operated by the Agency
20    have provided an essential source of new scientific understanding and have played an important
21    role in growing the next generation of environmental scientists all across America.  We are
22    troubled that support for these extramural programs has been significantly reduced and urge the
23    agency and the Congress to work hard to protect, restore, and sustain them.
24
25          Extramural research programs are not elastic programs, as is often suggested.
26    Interruptions and steep reductions in extramural research weaken relationships EPA needs with
27    scientists outside Agency for a strong research program.
28                                                                                                          I
29          g) Investments in Homeland Security Research:  While Homeland Security research                      |
30    should address homeland security as its first priority, many of the issues involved have "dual
31    use" dimensions and can often also be approached so as to serve multiple Agency objectives.
32    Also, funds allocated to Homeland Security research should address research issues and not be
33    diverted to Homeland Security operational programmatic needs. The dual nature of research also
34    applies to many other Agency research programs that are nominally tied to supporting EPA's
35    mission under a variety of media- and program-specific statutes (e.g., SOW A, TSCA, CERCLA,
36    FIFRA, etc.). Homeland Security should not undermine the basic research supporting Agency
37    activities, rather it should help EPA further develop its research programs in an integrated
38    manner, and with an eye toward obtaining broader utility from specific research efforts when that
39    is possible.
40
41          The analysis presented to the Cross-Goal Team on options for the planned research in this
42    area did not seem to involve any systematic, formal analysis, sufficiently transparent as to be
43    open to peer review.  Rather, "analysis" seemed to connote information gathering, followed by
44    an internal deliberative process.  If so, then there will be no way to tell if the Agency has fulfilled
45    its homeland security assignments in the best way possible.  Nor will there by any growth in the
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 I    Agency's core analytical capacity.  Such consultative processes may be subject to internal
 2    processes and vendor push.
 3
 4          h) Needs for investments in computing hardware, information infrastructure, and
 5    management support for science: EPA needs information resources both for internal research
 6    support and for participation at a high level in cross Agency and international programs such as
 7    GEOSS  jspell out). EPA scientists need access to 21st century information resources to
 8    collaborate with scientists in other agencies and universities, make use of models, and take
 9    advantage of converging technologies.
10
11          The Board believes that EPA must strengthen both its high performance computing
12    abilities  for modeling and networking and the more mundane, but still critical, day to day
13    computing needs of the science community.  In both cases, the high level of connectivity to the
14    outside world is essential.  EPA currently has a low level of access to electronic journals,
15    analytical and other special purpose software, and data-sharing resources, compared to scientists
16    at universities.
17
18          i) Morbidity Data:  With just a few isolated exceptions, most estimates of the human
19    health benefits of environmental protection have focused on reductions in life expectancies.
20    There has not been sufficient attention to benefits in the form of reduced non-fatal morbidity and
21    reductions in pre-mortality morbidity. People care about their quality of life and about how they
22    die. Research on society's willingness to pay to prevent or limit different types of health
23    consequences through environmental protection has been hampered by the absence of data on the
24    prevalence of different types of illnesses. Mortality  data, by cause of death and at a relatively
25    fine level of geographic disaggregation, have been available through the National Center for
26    Health Statistics. Since few diseases are reportable,  however, it has been more difficult to
27    assemble comparable data on morbidity in terms of hospital admissions or emergency room
28    visits. Such data are important in risk assessments used in  support of standard setting. In terms
29    of collaboration with other agencies, the EPA's efforts to better understand the health inventory,
30    and to make causal connections between environmental quality and this health inventory, are
31    vitally important.  Willingness to pay for environmental protection will depend on the types of
32    illnesses prevented, their latencies and endpoints, as well as on the characteristics of the
33    population that would be affected.  Research that extends the health benefits estimation effort
34    beyond reliance on just a single one-size-fits-all value of a statistical life (VSL) estimate will be
35    greatly enhanced by the availability of detailed morbidity information.
36
37          j) Environmental Justice: On the topic of hot spots  and environmental justice issues, there
38    has been an increasing amount of consideration in the literature on the idea of locational
39    equilibrium and what it means for the longer-run  consequences of environmental shocks to
40    neighborhoods.  A temporary environmental shock can have "impact" effects that are completely
41    reversed when the shock is over, provided that perceptions of risk are not changed permanently
42    by this temporary environmental shock. However, longer-term environmental hazards can set in
43    motion systematic shifts in neighborhood composition that can affect neighborhoods long after
44    the hazard has been removed (as in the case of the identification and clean-up of a Superfund
45    site).
46
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       In the case of air quality, there has been some interesting work on the general equilibrium
consequences of improved air quality, when such improvements set in motion an adaptation
where sensitive populations who previously  avoided more polluted areas now find them
attractive, moving back in and driving up housing prices in those areas in a manner that will tend
to offsets the initial welfare gains to populations that previously suffered more from pollution but
were compensated to some extent by lower housing prices. If the Agency's goals are strictly to
improve environmental quality, then the subsequent increase in housing prices is of no concern,
but in environmental justice cases, one needs to be careful about "giving with one hand while the
other one takes away."  While it is unlikely that housing price increases that occur upon
environmental improvements will be sufficient to completely offset the initial welfare gains from
a cleaner environment, the extent to which this happens is an empirical question. Behavioral
adaptations to cleaner environments are very important to a complete understanding of the
environmental justice consequences of Agency activities.

       k) Accountability: Budget items that go toward accountability are important. It is prudent
for the Agency to continue to invest in an improved understanding  of the actual benefits of its
programs and policies.  In terms of benefit-cost analysis, these efforts serve to reduce uncertainty
about the benefits of environmental management strategies, which in turn reduces uncertainty
about the net social benefits of these policies (after social costs are  subtracted) and about whether
specific policies pass the benefit-cost test. In a budgetary  climate where all forms of government
expenditure have come under increasing scrutiny, it is more important than ever to be confident
that those programs which will inevitably need to be cut are the right ones to cut, and that those
to be kept are the right ones as well.

       There is also the ever-present need to improve our understanding of discounting and the
extent to which it should be employed, especially with stock pollutants.  Last year, the SAB
commented more extensively on the fact that research providing short-term results was funded
preferentially over research with long-term implications.
23 Goal 1 - Clean Air and Global Climate Change

   23.1 Alignment: Based upon the SAB's knowledge of EPA's science programs, do the
   planned science activities included in EPA's FY 2006 budget align with the Strategic
   program priorities identified by EPA's Research, National Program, and Regional offices?

       EPA managers made an important change this year by expanding the position of National
Program Manager for Particulate Matter Research to become the National Program Manager for
Air Quality Research. An appointment has been made to this more broadly defined position.
This is an important step toward a more planning and conducting a more integrated research
program to improve air quality. The Board commends EPA for taking this step to develop a more
integrated air pollutant research program.

       The planned science and research activities reflected in the FY 2006 budget align with
the Agency's strategic priorities in Goal 1. While the planned science activities do align with the
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 1   strategic priorities for Goal 1, there are unmet needs in the proposal. These are discussed in the
 2   paragraphs below.
 3
 4          a) Mercury Monitoring: There is an urgent unmet need for monitoring programs that will
 5          provide an appropriate set of background data on mercury. The agency will need to
 6          evaluate the effectiveness of the mercury controls on airborne concentrations during its
 7          implementation of the Utility Mercury Reductions Rule. There are monitoring systems in
 8          place (CASTNet, IMPROVE, NADP) that will permit the evaluation of the changes in
 9          sulfate and nitrate concentrations that are expected to change with the implementation of
10          the Clean Air Interstate Rule (CAIR) which is expected to be promulgated soon.
11          However, mere are currently no systematic measurements being made on gas phase
12          mercury species. Mercury in wet deposition is being measured in a small supplemental
13          network to the NADP. Monitoring will ensure that the implementation of the cap and
14          trade program is not producing disproportionate  benefits to different downwind regions.
15          Even if these regulations  are superseded by legislation like Clear Skies, additional
16          coordinated monitoring will be needed to assess  the long-term benefits of the legislation.
17
18          b) Ammonia Monitoring: Another pollutant for which there is an urgent need for
19          improved monitoring is ammonia. Ammonia has a significant effect on the formation of
20          particulate matter through nucleation of sulfuric  acid and water or the formation of
21          ammonium nitrate.  Existing emissions inventories for ammonia are poor.  There are
22          currently limited measurements being made and  the need for improved ammonia
23          monitoring is noted in the National Ambient Air Monitoring Strategy. The SAB
24          encourages EPA to begin this effort soon.  This monitoring should occur within the
25          context of the overall nitrogen cycle, and the other cycles with which nitrogen interacts
26          (e.g., sulfur and carbon).
27
28          c) Emissions Inventories: Major gaps remain incur quantitative knowledge of emissions
29          and the quality of the resulting emissions inventories.  For example, in the case of
30          particulates, the National Research Council (NRC) Committee on Research Priorities for
31          Airborne Particulate Matter highlighted such problems.  However, EPA has been able to
32          mount only a limited effort and much of the focus to date has been on Concentrated
33          Animal Feeding Operations (CAFOs). A need remains for up-to-date chemical
34          characterization of emitted materials as well as better estimates of mass emission rates.
35
36          23.2  Coordination: Do the science programs of EPA's National, Regional, and
37          Research Offices reflect coordination among EPA organizations and do they
3 8          complement one another?
39
40          Coordination is evident among EPA offices on Goal # 1 issues. However, it is difficult to
41   determine its extent. EPA's organizational structure (i.e., being divided into water, air and
42   research divisions, etc.), while useful for some purposes, creates barriers  that make coordination
43   difficult. While EPA staff clearly sees the need for more coordination, these barriers and the
44   increasing expectation that divisions have to do more work with fewer resources, increase the
45   difficulty in gaining greater coordination.  As a case in point, CAFOs are recognized as hot spots
46   for losses of nitrogen and other material to the atmosphere and to the water. CAFOs produce
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significant quantities of biosolids. However, EPA does not have a systems approach for research
on these losses.  This approach was recommended in a recent NRC study commissioned by the
EPA and the USD A (NRC 2003. Air Emissions from Animal Feeding Operations).  Thus,
science and research activities among OAR, OW, OSWER, and ORD have the potential to be
less complementary than they might be due to the narrower needs of each party.  Additional
resources would greatly increase the potential for a coordinated and complementary science and
research program for this issue.

      An example of a data-gathering effort demonstrating good coordination among EPA
organizations is the redeployment of monitoring resources in the National Ambient Air
Monitoring Strategy program. This effort has the potential for providing the long-term data
needed to support health studies on chronic exposure to air pollutants. Part of the plan is to
move monitors from urban areas where they are duplicative to rural areas where they can provide
additional data on transport, as well as serve as the basis data sources for the more extensive
assessment of ecosystem risk.  This is an OAQPS endeavor,  but the data produced can support a
number of possible ORD reseeirch initiatives.

      2.3.3 Collaboration: Based on EPA's presentations to the SAB, and Board members'
      own knowledge of efforts in the broader scientific community, how well does EPA's
      science program appear to complement environmental science programs elsewhere? Is
      there evidence that EPA's efforts are coordinated with the science efforts of other
      governmental organizations and relevant organizations outside of government? Is
      there evidence that EPA has an approach for capturing the science products from
      these other organizations? Are there ways the Board could suggest that will enhance
      this coordination?

      Within the Goal 1 objectives, the SAB sees evidence that coordinated work with other
federal partners is progressing. EPA has made a reasonable effort to look for opportunities to
partner with other agencies and they have utilized science products from other organizations.
Examples of existing cooperation and collaboration, as well as a few examples of additional
needs for collaboration, are noted in the following paragraphs.

      A good example of collaboration has been the work on C AFOs. Here, the air program
has coordinated its efforts with USDA in air quality. There are opportunities to improve
coordination with EPA's counterparts in agencies beyond USDA, and as mentioned above within
EPA.

      Another example of partnering is EPA's contribution to the Advanced Monitoring
Initiative (AMI).  EPA decided to combine the Tropospheric Ozone and PM Research Program
projects into the NAAQS Research Program to allow better integration and coordination of their
research.  EPA completed work on the development of tools to specifically implement the
NAAQS on tropospheric ozone and reallocated funding to the multi-agency AMI effort with
NOAA, NASA, DOE and others.
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 1          In the area of risk assessment for air toxics, EPA has undertaken a near-roadway
 2   exposure health effects assessment. The Department of Transportation has a major role but the
 3   partnership between DOT and EPA has not been strong.
 4
 5          A different kind of cooperation has been shown by EPA in the establishment of its
 6   Computational Toxicology Center.  This Center has been recognized by other agencies as a
 7   center of excellence.  Genomics and proteomics researchers need this type of center for
 8   interpretation of data for risk assessment. The Computational Toxicology Center is important for
 9   making progress in developing biomarkers of exposure and effect that will be necessary to link
10   environmental changes to subtle changes in biological systems (people and the environment)
11   EPA's leadership in establishing the Center has benefited other agencies and enhances cross-
12   agency cooperation on  this topic.
13
14          An example of an area in which additional cooperation is needed is in the area of
15   quantifying ecosystem  endpoints associated with air pollution. Little progress can be made on
16   valuing the non-market benefits of reducing air pollution until we can demonstrate the
17   connections between air pollution and ecosystem structure and functioning.  We then need to be
18   able to demonstrate that people are able to perceive differences in ecosystem quality (or at least
19   understand their implications) sufficiently to be able to form values that can be measured  and
20   incorporated in benefit-cost analyses.
21
22          It is important to keep in mind that giving people more of something than they would
23   choose for themselves,  and requiring them to pay for it, does not really improve their welfare.
24   However, if we are paternalistic about the bundle of goods and services (including environmental
25   services) that they consume, we may feel better if they are consuming more environmental
26   quality, even if this forces them to consume less of other things (such as food, clothing, health
27   care, etc.). At a superficial level, it is very easy to think that improved environmental quality for
28   low-income and minority populations will be desirable from an environmental justice standpoint.
29   What is missing from that superficial impression is that there can be important behavioral
30   responses in housing markets that can offset or even overwhelm these initial benefits, especially
31   for disadvantaged groups for whom willingness to pay for environmental quality falls short of
32   what they are forced to pay through higher housing prices.  Additional insights into this issue are
33   discussed in section 2.2.J. above.
34
35          2.3.4 Emerging Issues: Based upon the SAB's knowledge of EPA's science programs,
36          are those programs positioned to address the nation's emerging environmental issues
37          in the coming years?
38
39          EPA's ability to identify emerging issues in Goal 1 is hampered by funding decreases and
40   inflationary erosion.  Over the long-term continued decreases will have serious consequences on
41   EPA's ability to both identify and address emerging issues Additionally, Congress has not
42   removed any of its regulatory mandates, so EPA must continue all of its statutory responsibilities
43   with legacy environmental issues.
44
45          A long-term newly recognized issue that needs to be considered is the intercontinental
46   transport of pollutants.  It is now clear that such transport from Asia, Africa, and  Central America
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affect air quality in the United States. This transport can produce a background concentration,
especially at continental margins, that reduces the ability of controls to achieve the increasingly
stringent air quality standards that are being promulgated to protect public health and welfare.
There needs to be additional efforts to quantify the extent of such transport. The use of remote
sensing such as is incorporated in the Advance Monitoring Initiative (AMI) is a promising
starting point for such efforts. A more comprehensive effort should be mounted to provide the
critical information relevant to EPA policy development and as the basis for enabling the United
States government to negotiate emissions reductions in pollutants in source areas.

       The rapidly growing use of nanotechnologies for a variety of purposes is a potential
emerging environmental issue.  There is already concern about the presence of ultrafine
nanoparticles in ambient air arising from combustion sources or through new particle formation
in the atmosphere.  The current PM program is positioned to address this issue as an extension of
its studies on ultrafine particles. Initial lexicological studies at universities are currently being
conducted with support from other agencies.  The SAB recommends that the EPA consider
partnering with other agencies (e.g., NIOSH, NIH, NSF) to ensure that there is sufficient
lexicological testing of nanoparticles to support future statutory evaluations of the need for EPA
action. In terms of ambient ultrafine particles, EPA should be deploying particle size monitoring
systems in major urban areas to provide the input data for time series epidemiological studies
that could inform the Agency about the need of a particle number ambient air quality standard.
2.4 Goal 2 - Clean and Safe Water

   2.4.1 Alignment: Based upon theSAB's knowledge ofEPA's science programs, do the
   planned science activities included in EPA's FY 2006 budget align with the Strategic
   program priorities identified by EPA's Research, National Program, and Regional offices?

       The Board found good alignment between EPA's science and research activities and the
priorities reflected in the Agency Strategic Plan for Program and other offices involved in Goal
2. However, the Board believes that some adjustments should be considered as the Agency plans
for its FY 2007 program. Some of the recommendations could also be considered  as the FY
2005 and 2006 programs are implemented.

       The Board wants to emphasize that there are many research areas in support ofEPA's
Clean and Safe Water programs that can only be addressed through long-term research. These
research areas will suffer in the future if they are held only to short-term criteria and long-term
performance criteria are not considered to be important. EPA is the only federal Agency focused
on certain water quality and water resource protection topics, such as watershed-based water
quality control approaches and tools (e.g., TMDL).  If long-term research of this kind is not
supported by EPA, it will receive no attention at all in the country.

   a) Safe Drinking Water: The Drinking Water research funds are allocated as follows: 1)
   Regulated Contaminants - 40 percent, Unregulated Contaminants - 52 percent; and
   Distribution and Source Water Protection - 8 percent. The Board believes that a greater
   allocation of resources to unregulated contaminants is warranted, particularly for emerging
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 1       contaminants (e.g., pharmaceuticals and personal care products that are widely found in
 2       surface waters). The Board also believes that resources for Distribution and Source Water
 3       Protection are inadequate, particularly for research directed toward microbial growth and
 4       corrosion.
 5
 6       b) Water Quality: The Water Quality program is a well established and highly developed
 7       component of the EPA research agenda.  It focuses on Aquatic Stressors, Sources of
 8       Impairment, Restoring and Protecting Aquatic Systems and Biosolids.  The criteria
 9       development section of the program is mature, and the Board believes  it would be prudent to
10       consider advancing the newer areas of the program more aggressively.
II
12       The Agency is currently facing a major challenge under the Clean Water Act on Total
13       Maximum Daily Load (TMDL) allocations associated with impaired water bodies. Therefore,
14       the Board believes it would be prudent for the Agency to increase its emphasis on TMDL
15       scientific and engineering research associated especially in the areas of diagnostics for
16       Sources of Impairment and acceptable in-stream conditions. Experience has shown that
17       developments in impairment assessment and protection and restoration inform the process of
18       criteria development The board believes that the apparent Agency shift from chemical to
19       habitat and biological criteria is appropriate. The board also recommends that EPA consider
20       a greater allocation for restoring and protecting aquatic systems in Goal 2. As an example,
21       the Board noted that Goal 4 research funds allocated to mature Big Water Programs (e.g.,
22       Chesapeake Bay, Great Lakes, etc.) are large. There may be merit in reallocating some Big
23       Water resources to research to adapt the science developed from such programs to other
24       regions and localities around the country. Results and lessons learned  from these programs
25       need to be leveraged and better disseminated for water quality planning and management
26       across the country.
27
28       Given the scope and scale of biosolids treatment, disposal, and land application on a national
29       basis, the biosolids allocation is inadequate and the Board recommends that it be increased.
30
31       The Office of Water (OW) Science and  Technology Funds for Homeland Security, are
32       propsed to be $47M in FY 2006. The dual nature of this research has been noted earlier in
33       this report.  The development of real time sensors under Homeland Security is a good
34       example of this duality and the products from this program will have great potential for
35       chemical and microbial monitoring. However, the remaining Science and Technology funds
36       are meager.
37
38       c) Ecosystem research: Cuts in funding Clean and Safe Water Research areas (e.g., EMAP)
39       and extramural STAR grants in Goal 4 (healthy communities and ecosystems) will have  a
40       negative impact on Goal  2's water quality research and will adversely  affect the available
41       data to support environmental management decisions. Results of the EMAP program
42       provide quantitative information on the  condition of the Nation's aquatic and terrestrial
43       resources and information on causes of impairments.  This information is essential to inform
44       the planning and design of water quality research. Extramural  grants programs, such as
45       STAR, provide a unique  vehicle for rapidly delivering scientific advancements and
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   capabilities for better environmental management as EPA carries out its mission. For
   example, the Agency has used the STAR grants program to explore the integration of
   economics, the social sciences, and the natural sciences. Research results developed in this
   program have rapidly moved to the applied arena and have been used to advance more
   effective decision-making on water quality at the watershed level.

   2.4.2 Coordination: Do the science programs of EPA's National, Regional, and Research
   Offices reflect coordination among EPA organizations and do they complement one
   another?

       Clearly, the science developed by ORD complements other EPA Regional and National
efforts. This reflects ORD's planning process and responsiveness to the strategic and
implementation needs of National and Regional programs. Nevertheless, there may be regional
needs that are not being fully addressed. Examples of Region-specific problems that deserve
greater representation in the research budget are 1) invasive species and 2) the impacts of urban
development (sprawl). The Beard recommends that these issues be incorporated into  future
agency planning for water quality and that funding efforts in this area be considered for earlier
implementation as well. Within the Goal 2 budget there is also a need for identification and
exploitation of opportunities for research synergies. For example decision tools developed for
the Drinking Water area could also have application in the Water Quality area.

   2.4.3 Collaboration: Based on EPA's presentations to the SAB, and Board members' own
   knowledge of efforts in the broader scientific community, how well does EPA's science
   program appear to complement environmental science programs elsewhere? Is  there
   evidence that EPA's efforts are coordinated with the science efforts of other governmental
   organizations and relevant organizations outside of government? Is there evidence that
   EPA has an approach for capturing the science products from these other organizations?
   Are there  ways the Board could suggest that will enhance this coordination ?

   a) Drinking Water: In the area of Safe Drinking Water, ORD research is generally well
   coordinated with other national and international research programs. Significant
   coordination in drinking water research within the U.S. has been  in place for some time.
   More recently, a global effort has been made through the auspices of the Global Drinking
   Water Research Coalition. This effort has reduced duplication of effort in drinking water
   research. Areas of collaboration that deserve attention include: better coordination between
   OW, OSWER, and OAR for contaminants that impact several environmental media, better
   coordination between drinking water and water quality programs; and better collaboration
   with FDA on Pharmaceuticals and personal care products in source waters.

   b) Water Quality:  The Wa~er Quality research agenda is  more difficult to coordinate. Unlike
   drinking water, where the EPA is the only federal agency, there are multiple federal agencies
   addressing this issue. Coordination across these federal agencies does occur. There has been
   significant coordination between EPA and USDA on Concentrated Animal  Feeding
   Operations. However, there are significant opportunities for additional leveraging of aquatic
   ecosystem restoration research with USDA and DOI that should be pursued. EPA also
   coordinates with US Industry through the Water Environment Research Foundation (WERF)
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 1       and the American Water Works Association. Research on water quality in the Great Lakes is
 2       also a good example of international coordination, but this is at a much lesser level of
 3       coordination than that in drinking water. The Board recommends that the Agency take the
 4       lead in establishing an organization to coordinate water quality research both at the national
 5       and global level following the model that has been used in the drinking water arena.
 6
 7       2.4.4 Emerging Issues: Based upon the SAB's knowledge of EPA's science programs, are
 8       those programs positioned to address the nation's emerging environmental issues in the
 9       coming years?
10
11          The Goal 2 budget seems to be relatively inflexible. As a result there appears to be no
12   Agency wide focus on emerging issues.  Examples of emerging issues that do not seem to have
13   adequate funding include: 1) Pharmaceuticals and Personal Care Products in water; 2) watershed
14   ecosystem/landscape research; 3) the need for new, cost effective approaches for water and
15   vvastewater infrastructure renewal, and 4) urban sprawl impacts and control. EPA appears to be
16   well positioned to serve as a catalyst for collaborative research in these areas.  From discussions
17   with ORD and program office staff, it is evident that horizon scanning for emerging issues is
18   given a low priority.  The SAB could play a role in providing advice to the Agency on horizon
19   scanning and priority setting.
20
21
22    2.5 Goal 3 - Land Preservation and Restoration
23
24       2.5.1 Alignment: Based upon the SAB's knowledge of EPA's science programs, do the
25       planned science activities included in EPA's FY 2006 budget align with the Strategic
26       program priorities identified by EPA's Research, National Program, and Regional offices?
21
28          The EPA Contaminated Sites and RCRA Multi-Year Plans, which describe the research
29   needs under Goal 3, were reviewed by a Panel of the Science Advisory Board during FY 2004.
30   The Board  agrees that research proposed in the FY 2006 budget for Goal 3, largely aligns with
31   the strategic program priorities relating to legacy issues in waste management (i.e. issues related
32   to site remediation, USTs, and oil spills). While the Board acknowledges that there is much
33   important relevant research that needs to be addressed in these areas, it is dismayed at the lack of
34   research proposed for non-legacy issues.  In particular the Board endorses the Agency's long-
35   term vision for transforming environmental policy  from a waste-centered to a materials-centered
36   approach. Although the EPA Strategic Plan, and the Resource Conservation Challenge (RCC)
37   Strategic Plan, articulate this vision in a highly inspirational manner, science and research issues
38   important to "transformation of the Nation's current waste handling system and approach
39   towards materials management," is proposed to receive the smallest allocation of S&T dollars.
40
41          The Strategic Plan calls for a move toward pollution prevention (Goals 4 and 5),
42   development of innovative waste management practices (Goal 3), and development of voluntary
43   programs of materials management and resource conservation; under the Resource Conservation
44   Challenge (Goal 3). The demise of the economics  and decision sciences (EDS), STAR, and
45   overall sustainability budget decreases are inconsistent with such goals. The Board believes it
46   would be desirable to increase funding for research in support of the RCC initiative, even if that
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requires reprogramming of current research funds within Goal 3. The areas of needed research
are many and varied, and range from material flow studies and data certification, to cooperative
ventures with industries (the Board notes and encourages the planned effort with the electronics
industries), to appropriate policy instruments to create incentives for materials
recycling/reuse/and remanufaauring (this is treated more extensively under the Board's
comments under Goal 5).

    2.5.2 Coordination: Do the science programs ofEPA's National, Regional, and Research
    Offices reflect coordination among EPA organizations and do they complement one
    another?

       The science programs in Goal 3 reflect coordination among EPA organizations and these
programs do complement one another. The SAB review of the Contaminated Sites and RCRA
Multi-Year Plans demonstrated that the regions, program offices and the Office of Research and
Development have worked closely with one another. The SAB panelists observed that
researchers had an intimate understanding of the problems faced by their colleagues in the
regions and the program offices and the research needed to assist them.  In addition, their clients
were well informed of the research completed and underway that was intended for their benefit.
Also, a separate review of the 3MRA modeling system by the SAB demonstrated close
coordination across EPA offices (ORD and OSWER).

       2.5.3 Collaboration: Based on EPA's presentations to the SAB, and Board members'
       own knowledge of efforts in the broader scientific community,  how well does EPA's
       science program appear to complement environmental science programs elsewhere? Is
       there evidence that EPA's efforts are coordinated with the science efforts of other
       governmental organizations and relevant organizations outside of government? Is
       there evidence that EPA has an approach for capturing the science products from
       these other organizations? Are there ways the Board could suggest that will enhance
       this coordination?

       There is considerable evidence, albeit anecdotal, that the Agency greatly values
cooperative research with other government agencies and organizations outside of government.
In the review of the Contaminated Sites and RCRA Multi-Year Plans the Agency documented
that they engaged in extensive coordination  with other agencies and organizations. Still, the
exact amounts of leveraging of Agency S&T dollars, the nature of the cooperative research, and
trends over time have not been reported. The Board believes there is a need to quantify the type
and amount of support received from other agencies and organizations both inside of and outside
of government for specific research. Such information should be made available to the Board
routinely as part of the science and research budget advisory and for each such review. It would
be helpful if this information would include  trends over the preceding 5 fiscal years,

       Information on the amount of Agency resource leveraging can be helpful  in showing the
degree to which environmental  research portfolios across the federal government intersect and
how well they are coordinated.  As noted during the meeting, the EPA S&T research budget
accounts for about 7% of the total federal environmental funding. Without a more detailed
knowledge of research supported by other agencies, it is difficult for the Board to assess the
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 1   impacts of EPA's programmatic cuts and reallocations, in this and other Goals, and how they
 2   impact overall Federal research on specific topics (e.g., the de-emphasis of EPA's ecosystem
 3   research funding and its impact on other agencies having complementary programs). The Board
 4   understands that its purview is limited to EPA's science and research budgets, and it does not
 5   suggest that its review be extended to the entire federal environmental research budget, but it is
 6   concerned that lack of this additional information might cause it to underestimate the overall
 7   national impact of resource changes in EPA's science and research program. The Board also
 8   understands that research conducted with other agencies' support, although similar in topical
 9   area to EPA's, may lack the nuance needed for EPA which is charged with the responsibility of
10   regulating environmental risk. However, this underscores the need for the Agency to present the
11   Board with much more information on the type of cooperation on research in which they interact
12   across and beyond the government.
13
14          2.5.4 Emerging Issues: Based upon the SAB's knowledge of EPA's science programs,
15          are those programs positioned to address the nation's emerging environmental issues
16          in the coming years?
17
18          The SAB believes that EPA's science programs in support of strategic Goal 3 are not
19   well positioned to address the nation's emerging waste management issues.  The distribution of
20   Goal 3 funds is heavily weighted towards legacy problems, in part because this is a requirement
21   of the trust funds that have traditionally supported many of these programs.  This is inconsistent
22   with the visionary environmental plan presented in the Resource Conservation Challenge, which
23   is an effort within the Agency that engages various stakeholders in voluntarily examining their
24   material flows with the aim of identifying opportunities to limit waste without diminishing
25   profits.  Currently, few resources exist to address emerging environmental issues relating to waste
26   management.  One possible use of a portion of the $20 million set aside in the new pilot project
27   to support Program Office initiated research within ORD, would be to invest in structuring a
28   framework for identifying and addressing emerging environmental issues across all five goals.
29
30          The Board believes that the transformation of environmental policy will require
31   significant investment in education, as specified in the RCC. The Agency may wish to consider,
32   as part of its research portfolio, the funding of innovative environmental education programs
33   beyond the STAR graduate fellowships, perhaps in partnership with the Department of
34   Education or National Science Foundation.
35
36          Finally, in support of emergent Goal 3 research needs, the Board recommends that the
37   Agency undertake a long-term project on the establishment of National Material Flow Accounts,
38   and relate this information to existing national income accounts (GDP, etc) and/or economic
39   input/output tables. Such information could provide benefits to the Nation in three essential
40   areas:
41
42      a) Improvement of economic, trade and national security, and technology development policy
43      by enhancing our understanding of the material basis of the economy.
44
45      b) Improvement of natural resource policy (minerals, forest products, fuel, etc.) by  enriching
46      system-wide, life-cycle information on the status and trends of materials sources and uses,
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   final disposition and other aspects of supply/demand.

   c) Improvement of environmental policy by helping to identify categories of pollution
   sources, develop materials-based and product-based environmental strategies and promote
   reuse of what is currently discarded.

Allocation of resources for such a project would be an important advance and represent a
tangible commitment toward the stated goal (Goal 3) of transitioning US environmental policy to
a material flow basis. Many countries (including the U.S.) already collect most of the
information necessary for MFA (for various other purposes), but most do not routinely assemble
the information into material flow accounts.
2.6 Goal 4 - Healthy Communities and Ecosystems

   2.6.1 Alignment: Based upon the SAB's knowledge of EPA1's science programs, do the
   planned science activities included in EPA's FY2006 budget align with the Strategic
   program priorities identified by EPA's Research, National Program, and Regional offices?

       The FY 2006 science and research budget aligns with many of EPA's strategic priorities.
However; there are some areas where this alignment fails, and the cause of this failure is largely
the continued erosion of EPA science and research resources that need to be applied to critical
areas of EPA's mission to protect human health and the environment.

       The request related to human and ecosystem health, in support of Strategic Goal 4, is
very similar to the President's requested budget for 2005 (US EPA SAB, 2004). Thus most of the
Board's comments on that budget apply to the current request While the Board recognizes the
limited resources available for domestic spending, this budget continues the pattern of essentially
level-funding for most programs, resulting in a gradual erosion of EPA research capacity due to
inflation. As in the 2005 budget request, there is significantly reduced funding for ecosystems
science and research, in particular in the Agency's extramural funding (STAR program). The
fact that the funding for STAR extramural grants in the area of ecosystems health was not
included in this year's request continues to be troubling, for reasons that are discussed later in
this section. Below, we also discuss some aspects of significant programs that are identified in
the FY 2006 science and research budget.

       a) The Advanced Monitoring Initiative (AM|):  The FY 2006 request includes anew
       program, the AMI. Initiatives proposed such as the AMI and the nanotechnology program
       are laudable and address EPA strategic priorities and hold great potential to advance
       environmental health science (see additional discussion of the AMI in section 2.3.3
       above). Integrating EPA AMI activities into a recognizable program will strengthen the
       ability of EPA to leverage the use of other agencies' data to address EPA needs.
       Unfortunately the EPA .AMI is clearly funded by realignment of funds currently
       supporting other EPA strategic priorities such as mercury, air quality standards  and
       persistent, bioaccumulaiive toxic chemical (PBT) research.
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 1                 The AMI leads a trend toward more observational and less basic research
 2          activities. Although the overall funding in Goal 4 is nearly level, the goal includes
 3          considerable programmatic change implemented via a budgetary strategy of funding
 4          realignments. This strategy allows the agency to propose new or expanded initiatives
 5          without new funds. However, the Agency should  carefully consider whether an extensive
 6          realignment strategy may have unintended negative consequences. The SAB cautions that
 7          there may be little or no net gain as the potential utility of any scientific advances may be
 8          offset by the loss of the activities previously supported by the realigned funds.  Many of
 9          the sources of realigned funds in Goal 4 come from core strategic priorities. The
10          disruption of current programs by realignment may result in a net research activity loss,
11          especially as consolidation decreases diversity and creates  additional imbalances in the
12          research portfolio.
13

14          b) Disparities Between the Budget and Priorities:  Mercury and Endocrine Disrupters:
15          Some of the Agency's most important programs have been progressively reduced over
16          the last few years. These programs include the mercury research program, the endocrine
17          disrupters program, and the STAR research program (including the exploratory research
18          program). Endocrine disrupters and mercury  are among the agents that may have the
19          greatest impacts on ecosystem and human health and the SAB is concerned that (he
20          reduction of the programs is not in accord with the Agency's stated goals. These
21          programs have been progressively reduced in funding even though they are already
22          funded at relatively low levels. Given the high priority of mercury as a contaminant, and
23          the fact that not enough is known about its sources, fate, transport, and health effects, we
24          caution the Agency to prioritize the research needs for mercury and continue to address
25          them aggressively (see section 2.3.1 above for additional comments on mercury
26          research).
27
28          c) Ecosystems Research: Among the major elements of the Agency's strategic plan is a
29          commitment to  "protect, sustain, and restore the health of natural habitats and
30          ecosystems." Fundamental to this objective is creation of scientific tools to assess the
31          current condition of the nation's ecosystems,  and  then apply these tools to assemble a
32          coherent picture of the state of our ecological systems. The importance of this objective is
33          underscored by  the conclusions of the Agency's Report on the Environment (EPA SAB,
34          2004b), as well  as the independent "State of the Nation's Ecosystems" report of the
35          Heinz Center (The Heinz Center, 2003), that  most of the information required to
36          characterize and track changes in ecosystem health is not currently available nationwide.
37          This research not only informs Goal 4 objectives, but also supports efforts under EPA's
38          other strategic Goals. For example, the ecological indicators that were being developed
39          under ecosystems research were to be the next generation of integrated indictors for use
40          by the States to  meet their assessment requirements under the Clean Water Act (303
41          listings). Yet, the FY 2005 budget made deep cuts in the programs related to ecosystem
42          assessment (e.g. ecological indicators) and the FY 2006 budget request makes even
43          deeper cuts, including nearly $5M from Western EMAP, National Coastal Assessment,
44          and Regional Vulnerability Assessment programs. These cuts appear emblematic of a
45          broader trend to cut ecosystem research, despite its fundamental importance to the
46          Agency's mission. To some degree, the erosion in ecosystem research may be due to the
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       unfortunate mismatch between governmental accountability evaluations that seem to
       emphasize near-term results and the long-term nature of ecological research. We strongly
       urge the Agency to reverse the erosion in ecological research, determine the most
       effective ways to proceed with ecological assessment, and reinstate funds to pursue them.

       d) Extramural Research: The Science to Achieve Results (STAR) grants programs
       corresponding to ecological indicators, endocrine disrupters, and mercury that were
       eliminated in the FY2005 EPA science and research budget are also not included in the
       FY 2006 budget. The Board restates its belief that the sacrifice of extramural research
       programs comes at a significant and long-term cost to the Nation's need for knowledge
       on important issues that will permit the development of environmental policy and that
       will be necessary for informing international debates on U.S. products that compete in the
       international market place.

             Extramural research provides four essential functions, which are lost when such
       funding is diminished. Extramural research: a) allows access to expertise outside of the
       Agency; b) invigorates the science being conducted and prevents in-bred or stale research
       from taking hold; c) provides a flexible mechanism to identify and address emerging
       issues; and d) allows EPA to leverage funds with other agencies or partners. Thus
       reducing extramural funds has both direct and indirect effects, and can be equated to
       spending one's investment principal.

       e) The Exploratory Research portion of the STAR program within Goal 4 (historically
       funded at approximate!},' 10% of the total STAR budget) provides  a small but important
       pool of funding for innovative and cutting-edge research that intends to provide EPA
       programs with knowledge and understanding that anticipates issues of concern for the
       future. Exploratory grants have served as the Agency's long-term investment in exploring
       future emerging issues, in contrast to the current STAR program, or the new Research
       Pilot program efforts, which are both largely focused on nearer-term solutions to already
       identified problems. The Exploratory Research program has been cut in half in the FY
       2006 budget, (about $5M), and the remaining $5M will be dedicated to research related
       to nanotechnology. While research on nanotechnology  is  a clear priority and at the
       cutting edge of environmental science, there are severe limits to funds  to explore other
       emerging issues (some limited exceptions are discussed in section 2.6.4 below).

             The Board believes that this situation makes the Agency more vulnerable to being
       blindsided by future issues or challenges, and will place EPA further behind in its ability
       to use and/or evaluate new technologies  and new problems. This gap in exploratory
       research will not be filled by the private  sector; in fact a recent survey showed that when
       the government invests less in basic research, the private sector follows suit.

       f) The Pilot Research Program: The new Pilot Research program is innovative and
       appears to be a good investment, allowing the program offices to purchase research
       internally from ORD for specific needs.  We support the overall concept and encourage
       the Agency to use peer-review in the selection and awarding of projects that are funded
       by this mechanism. We encourage the Agency to implement this as a "customer-driven"
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 1          initiative, allowing the program office needs to clearly drive the process to fill knowledge
 2          gaps, and to not duplicate efforts or use the funding to replace operational expenses.
 3
 4          g) Climate Change: The Board applauds the continued support of the Climate Change
 5          Science Program, It is encouraged to learn that the CCSP program has done an internal
 6          budget analysis across the participating agencies, including EPA, and note that while the
 7          Climate Change program has been asked to expand their activities, there funding is
 8          similar to last year.
 9
10       2.6.2 Cooperation: Do the science programs of EPA's National, Regional, and Research
11       Offices reflect coordination among EPA organizations and do they complement one
12       another?
13
14          Over the years that the SAB has reviewed the  EPA science and research programs it has
15    seen a steady improvement in the coordination between EPA administrative units and the
16    alignment of the extramural research funding to complement research at EPA.  EPA science and
17    research coordination are a model other agencies should emulate. This approach has allowed
18    EPA research to remain highly productive in the face  of stagnant or decreasing funding.
19    Examples of successful intra-Agency collaboration include the endocrine disrupters research
20    program, the computational toxicology program, and  the genomics program. The Board notes
21    that the leveraging of extramural research programs and partnerships can be readily quantified;
22    however, this has not been done and thus the full extent of intra-Agency cooperation is not as
23    transparent as it might be.
24
25          The increased emphasis within the Agency on expressing research outcomes rather than
26    outputs also underscores the need for improved coordination within and outside of the Agency.
27    For example, the Office of Water may need the results from specific Regional office REMAP
28    projects to demonstrate the effectiveness of an outcome measure, or evaluation of the NHANES
29    data from CDC may assist the Agency in assessing the effectiveness of a given rule aimed at
30    reducing exposures to pollutants.
31
32       2.6.3 Collaboration: Based on EPA's presentations to the SAB, and Board members' own
33       knowledge of efforts in the broader scientific community, how well does EPA's science
34       program appear to complement environmental science programs elsewhere? Is there
35       evidence that EPA's efforts are coordinated with the science efforts of other governmental
36       organizations and relevant organizations outside of government? Is there evidence that
37       EPA has an approach for capturing the science products from these other organizations?
38       Are there ways the Board could suggest that will enhance this coordination?
39
40          EPA has not only organized its programmatic  and research efforts to align with the
41    agency strategic goals, but also  is a leader in partnering with other federal agencies with shared
42    interests. These highly successful partnerships have provided results of utility to EPA far
43    beyond what could have been anticipated had they attempted to build the programs alone. The
44    proposed AMI effort and the EPA participation in the National Children's Study continue this
45    tradition.
46
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       The EPA's research program complements specific programs in many other federal
agencies (NIH, CDC, NASA, NOAA, and others), state agencies, University-based programs
and industrial research programs. An excellent example includes the endocrine disrupters
program, which partners with ether Federal agencies, industry, and funds extramural research
with academia. These coordinated efforts allow the EPA to leverage their limited funds to
conduct more of the necessary research required to make science based regulatory decisions.

       Another excellent example of these coordinated activities is EPA's leveraging funds with
other agencies including NIH and CDC and universities in the support of the Children's Centers
for Environmental Health Disease Prevention programs and the National Children's Study. In
addition, the Agency has begun to work with industry in establishing basic and clinical research
endeavors. Other examples include the EMAP program, which collaborates with the States by
transferring statistical designs for probabilistic monitoring to their agencies; the collaboration of
EPA with NIOSH and NIST on nanotechnology research; and the collaboration of EPA with
NIEHS and DOE on computational toxicology.  Such programs, when conducted with the highest
scientific and ethical standards, provide an opportunity to leverage EPA research needs and
industry and other resources and research needs to protect the environment and human health. In
complementing and coordinating their research programs the EPA captures a broad array of
scientific products (data and technology). The Agency understands that, with limited resources,
they must complement, coordinate, and encourage the entire community of stakeholders
including the Federal and State agencies, universities and local communities, and industry.

       The SAB recognizes that the cooperative efforts of all stakeholders will be greatly
facilitated with additional  efforts to enhance the ability of the Agency and other stakeholders to
access and share data that each agency may have,  such as EPA environmental data, CDC
NHANES data, and health disease tracking and local registries of cancer, autism or other
diseases. The Board strongly encourages the Agency to pursue such collaborative ventures to
maximize leverage of limited resources, including joint extramural research programs,
cosponsored initiatives, and the like.

    2.6.4 Emerging Issues: Based upon the SAB's knowledge of EPA's science programs, are
    those programs positioned to address the nation's emerging environmental issues in  the
    coming years?

       The Agency is losing ground in its ability to address emerging issues, and its current
efforts are at the margins. In the past, EPA steadily improved its capacity to anticipate and
respond to emerging issues in part by maintaining a strong science program that included a
substantial commitment to "core" or long-range research. The ability to outsource research on
emerging issues also helped the Agency to nimbly investigate new issues without permanently
building in-house capacity. This positive trend appears jeopardized, however, by the current
budget environment in which significant cuts have been made to long-range ("core") research in
areas such as ecosystem condition and the outsourcing programs (i.e. competitive research grants
under STAR). The Board noted last year that cuts  in the STAR program, particularly in the area
of ecological indicators, weakened the Agency's ability to address new issues and we reiterate
that concern again this year.
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 1          To its credit, the Agency has identified many emerging issues that are important (e.g., the
 2    promise and potential threats associated with nanomaterials, the ecological disruption caused by
 3    invasive species, the non-linear dose response of low level exposures of endocrine disrupting
 4    chemicals, and the effects of genetically modified organisms on natural systems). Activities in
 5    these areas are ongoing within the Agency, although at a relatively low and static funding level
 6    mat is not conducive to developing a strategic response that ultimately can address the challenge.
 7    In the case of nanomaterials, the Agency has dedicated $5M in Exploratory Research grants to
 8    the issue which we view as a minimally appropriate level of extramural funding; as with the
 9    other emerging issues, the internal Agency effort in both science and strategic planning appears
10    inadequate to the challenge.
11
12          The SAB stresses the need for the Agency to develop and support a mechanism for
13    addressing emerging issues, one that is integral to the Agency's operations. The current budget
14    erodes, rather than enhances, this capability. The SAB recommends that the Agency develop a
15    new strategy for addressing not only legacy issues, but also to addressing issues for the future.
16
17
18    2.7 Goal 5 - Compliance and Environmental Stewardship
19
20       2.7.1 Alignment: Based upon the SAB's knowledge of EPA's science programs, do the
21       planned science activities included in EPA's FY 2006 budget align with the Strategic
22       program priorities identified by EPA's Research, National Program, and Regional offices?
23
24          A major reorganization of the science and research funding areas in Goal 5 is planned for
25    FY 2006, attributed at least in part, to the U.S. government's performance assessment system. In
26    particular, funding for the pollution prevention (P2) and green chemistry programs (as well as a
27    few others) have been reassigned to "Economic and Decision Sciences" and "Sustainability."
28    Concurrent with this reorganization is a major cut in funding. The S&T portion of this area is to
29    decrease from $50.5 million to $43.8 million. The total science and research dollars attributed to
30    the goal is to decrease from $69.6 million to $57.9 million.  Specific Board comments on Goal 5
31    science and research are in the following paragraphs.
32
33       a) Voluntary Programs and Incentives: A major theme running through all the strategic goal
34       descriptions in the EPA 2003 - 2008 Strategic Plan is the need to move forward where
35       possible from the largely command and control regulatory regime that is now the cornerstone
36       of U.S. national environmental policy. For example, the Strategic Plan calls for a move
37       toward pollution prevention (Goals 4 and 5), development of innovative waste management
38       practices (Goal 3), and development of voluntary programs of materials management and
39       resource conservation; under the Resource Conservation Challenge (Goal 3).  This proposed
40       shift raises two important questions. The first is how to encourage such voluntary actions.
41       The second is determining the proper mix of public sector and privately funded research on
42       improved waste management practices, innovative pollution control technologies, and
43       pollution  prevention.
44
45       The Strategic Plan expresses the hope that voluntary actions by individuals and industry can
46       be relied upon to improve the state of the nation's environment.  However, the behavioral,
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   social, and decision sciences necessary to support environmentally effective programs that
   rely on voluntary incentives are at an early stage of development. In particular, while the
   literature has identified some effective, targeted programs that have led to real environmental
   improvement at small scales, there is little or no research supporting the view that costly or
   major changes in the production processes of firms or individuals can be expected to occur in
   the absence of major financial incentives. There is also little research to support the
   provision of guidance on the design of programs to encourage voluntary actions.
   Understanding incentives and constraints is important in explaining actions and choices of
   people. A useful analogy is the volunteer army: while it is true that volunteers can staff an
   army, much higher incentives (wages and benefits) are needed than when the army is
   conscripted. The move to a voluntary army was undertaken only after a substantial body of
   research on the labor market and the potential supply of labor to the military.

   If the EPA is to try to increase its use of voluntary mechanisms to achieve increased
   environmental improvement and compliance, it must significantly invest in the appropriate
   disciplinary and interdisciplinary research to provide the basis for this approach. This
   research would need to assess the magnitude and form of incentives, such as tax breaks,
   direct payments, non-financial compensation, information provision, etc., necessary to
   achieve increased environmental performance by a broad variety of private sector agents
   (industries, households, farmers, etc.). Previous STAR grant projects have made useful
   contributions to our knowledge about these issues. For example, studies that: 1) identify the
   sectors where voluntary programs will be most effective, 2) identify community actions that
   effectively  motivate firms to improve environmentally performance, and 3) develop
   communication methods to improve the management of hazardous waste by households at
   lower costs. But, there is much to learn and more of this kind of research is needed.

   b) Public vs. private research funding: The Goal 5  Team questions the appropriate mix of
   private and public and spending  on research for pollution prevention. In designing both its
   research programs the Agency should consider where and/or who is better placed to do
   successful research leading to innovation and technological change for pollution prevention -
   is it the private sector with its knowledge of its own production processes, or are others who
   might know less about these processes able to do meaningful research on innovations? The
   Board believes that the need is for stronger incentives that will induce more private sector
   research on pollution prevention. There is a special need for market-based incentives that
   reward pollution prevention with lower costs and higher profits  These incentives could take
   the form of cap and trade programs, taxes on pollution discharges, deposit-refund systems,
   disposal fees, and so forth. The Board believes that the Agency should devote more of its
   own resources to research on market mechanisms and incentives aimed specifically at
   rewarding pollution prevention.  This could be done by some combination of increased
   support for the market mechanisms and incentives component of the Economics and
   Decision Sciences program under ORD and additional support for the National Center for
   Environmental Economics.

   c) Strategic Approaches to Risk Communications:  A strategic approach to risk
   communication is crucial to ensuring that the agency's investments in data collection and
   research have public value. The goals of increased compliance, pollution prevention, and
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 1       environmental stewardship elucidated in Goal 5 relate fundamentally to social science and/or
 2       interdisciplinary questions. Yet, social science research and genuine interdisciplinary efforts
 3       that span the social and hard sciences, and thereby yield new conceptualizations, remain
 4       vastly underfunded and underutilized.
 5
 6          Risk communication serves various purposes and takes on different forms throughout the
 7       risk evaluation and management process (PCCRAM 1997; CSA 1997). It is integral to
 8       defining a risk issue, gathering the data to assess the technical and societal dimensions of the
 9       issue, selecting the risk management option/s, and evaluating the impacts of the option
10       implemented. Effective risk communication is more than applying a set of skills - e.g.,
11       crafting a message, segmenting an audience, and writing a brochure or public service
12       announcement.  Strategic risk communication relies on a comprehensive systems orientation
13       and is based on scientifically derived facts - not guesses - about risk perception, social
14       dynamics, linked contexts, and cultural views. The sciences that contribute to strategic risk
15       communication approaches include but are not restricted to the decision sciences,
16       psychology, behavioral sciences, sociology and anthropology.  Unfortunately,  although EPA
17       was once a leader in supporting risk communication research and has produced many
18       publications with risk communication guidance, the new generation of risk communication
19       knowledge is significantly underfunded and now appears to be undervalued by much of the
20       Agency. To increase the impact of the agency's research on public policy, a much broader
21       view of risk communication and the sciences that underpin strategic approaches is essential.
22       This cannot be achieved without greater recognition and incorporation of social science
23       knowledge and methods into the agency's research and programs.
24
25       d) Enforcement: Another area in which EPA's research does not align effectively with EPA
26       priorities is the enforcement area. One of EPA's strategic objectives is to "strengthen the
27       scientific evidence and research supporting environmental policies and decisions on
28       compliance, pollution prevention, and environmental stewardship." Yet this strategic
29       objective is undercut by deficiencies in research funding regarding enforcement. The first set
30       of research deficiencies results from inadequately framed objectives. Subobjective 5.1.3, for
31       examples, calls for a 5% increase in "enforcement actions," but a recent article in
32       Environment Law Review (2000) indicates that agency enforcement actions in the previous
33       several years have decreased. As a consequence, there is a resulting decrease in enforcement
34       related research. The second set of research deficiencies are inadequate data. For example, a
35       series of GAO reports indicate that inadequate enforcement activity is undertaken by the
36       Agency due to budget limitations. This leads to less data for research on these problems.
37       Third, deficient S&T research funding and transfer of about 18% of NEIC investigation
38       agents to homeland security issues has caused a drop in non-homeland security research at
39       the NEIC, and a drop in criminal referrals to NEIC. Again, this limits the ability of the NEIC
40       to provide the necessary science and technology base for effective enforcement.
41
42       2.7.2 Cooperation: Do the science programs of EPA's National, Regional, and Research
43       Offices reflect coordination among EPA organizations and do they complement one
44       another?
45
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       The funding of the science and research supported by the NCEE as well as the
"Economics and Decision Sciences" within ORD supports the attainment of goals 1-4 as well as
goal 5. While the agency has made progress in the development of an internal coherent
economics research program by establishing the NCEE, there is no evidence of such progress for
any of the other social sciences. Expanding EPA's science and research activities in social
sciences to include more than environmental economics, through enhanced collaboration and
program establishment is essential if EPA is to position itself to address emerging environmental
issues in our changing culture.

       Agency staff, across offices, described information sharing actions on research activities
during their discussions with the SAB at its February 2005 meeting. However, it is difficult to
know the full  extent to which offices coordinate their research programs for generating
knowledge, tools or methods. Agency scientists, trained in different though complementary
disciplines, and who work on different pieces of the same problem and who have occasional
interactions to share their individual progress  provides only a very limited cross-disciplinary
and/or cross-mission integration of EPA's scientific program. The problem with this ad hoc
approach is briefly discussed in the following paragraph.

       The more complex the environmental  issue the more urgent it is to address the related
problems using a comprehensive, systems-based approach and inter- or trans-disciplinary models
(pp. 3-4 of Stokols et al, 2003). The number and complexity of emerging environmental
concerns (e.g., global warming, ecosystem degradation, and water source protection) demands a
meaningful re-conceptualization of the agency's research enterprise to addresses these issues.
Full integration of diverse sciences, with appropriate structures and incentives to sustain that
integration, is difficult but essential. New knowledge about effective ways to initiate and
implement scientific collaborations should be utilized by the agency (Rhoten, 2004; Stokols et al,
2003). Without redesigning the agency's approach to such research activities, scientific progress
will be too slow to effectively address these combined legacy and emerging environmental
problems.

   2.7.9 Collaboration: Based on EPA's presentations to the SAB,  and Board members' own
   knowledge of efforts in the broader scientific community, how well does EPA's science
   program appear to complement environmental science programs elsewhere? Is there
   evidence that EPA's efforts are coordinated with the science efforts of other governmental
   organizations and relevant organizations outside of government?  Is there evidence that
   EPA has an approach for capturing the science products from these other organizations?
   Are there ways the Board could suggest that will enhance this coordination ?

       EPA should think in broader terms about ways to leverage their  research resources within
   the research community outside of EPA. One approach may be to partner more extensively
   with other public agencies and private, nonprofit entities to jointly fund research, especially
   in the social sciences area Both the NIH and the CDC have followed such strategies. EPA's
   own ETV program is a good model, though it is limited to technology transfer. Partnering
   with private sector resources may be useful as well. While it is important to recognize that in
   some areas, EPA will be the exclusive source of science because of EPA's specific mandates
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 1       and authorities, private research can be effective in developing cost saving methods for
 2       pollution reduction and/or prevention.
 3
 4          The Pollution Abatement Control Expenditures (PACE) survey is the sole source of
 5       significant amounts of information concerning the costs of meeting environmental
 6       regulations. It is developed through the collaboration of the EPA's NCEE and the Bureau of
 7       the Census and it has been responsible for developing a useful time series of data on this
 8       topic.  It is critical that EPA's funding for this critical survey be continued.
 9
10       2.7.4 Emerging Issues: Based upon the SAB's knowledge of EPA's science programs, are
11       those programs positioned to address the nation's emerging environmental issues in the
12       coming years ?
13
14          With the growing U.S. population, increased demands for environmental resources,
15   changing standards of living, and performance expectations, as well as the increasingly complex
16   nature of emerging environmental issues (noted in section 2.7.2 above), there is aneed to
17   increase our understanding of people's views and responses to environmental concerns. Thus,
18   increased research in the social sciences  is essential to understand organizational, individual, and
19   group concepts and behaviors associated with environmental issues.
20
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                                     REFERENCES
Barnes, K.K, et al. 2002. Water-Quality Data for Pharmaceuticals, Hormones, and Other
   Wastewater Contaminants in U.S. Streams, 1999-2000.  United States Geological Survey
   Open File Report USGS OFR-02-94, Iowa City, Iowa.

CSA. 1997. Q850 Risk Management: Guideline for Decision-Makers. Canadian Standards
   Association. Toronto, Canada

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