SEP A
                      United States
                      Environmental Protection
                      Agency
                        Policy, Planning,
                        and Evaluation
                        [Mail Code 2129]
Recent Refinements
To  Project XL
EPA231-F-97-002
April 1997
(http://www.epa.gov)
WHAT IS PROJECT
XL?
PURPOSE OF
EPA'S FEDERAL
REGISTER NOTICE
SUPERIOR
ENVIRONMENTAL
PERFORMANCE
(SEP)
Project XL is a national pilot program that tests innovative ways of
achieving better and more cost-effective public health and
environmental protection. Through site-specific agreements with
project sponsors, EPA is gathering data and project experience that
will help the Agency redesign current approaches to environmental
and public health protection.  Project sponsors - private facilities,
industry sectors, Federal facilities, and communities - can implement
their own innovative strategies that produce superior environmental
performance, replace specific regulatory requirements,  and promote
greater accountability to stakeholders.  Because the number of XL
projects is limited to 50, it is vital that each project tests ideas with
potential for wide application and environmental benefits. To date,
three projects have been implemented and EPA has proposed
approval of two more.

EPA's April 1997  Federal Register Notice clarifies EPA's definition of
three key elements of Project XL: 1) superior environmental
performance; 2) regulatory flexibility; and 3) stakeholder involvement
(further explained in the next section). The Notice also invites new
Project XL proposals and describes some specific areas that EPA
believes would be good subjects for those proposals.

The Notice strongly encourages firms and established non-
governmental organizations to join together as co-sponsors,
developing XL projects together from the ground up.  It  also includes
revisions to the XL process, placing greater emphasis on pre-
proposal planning and communication with stakeholders, EPA's
internal management of projects, and close partnership with States
and tribes.

EPA's method of determining whether an XL project will achieve
superior environmental performance has two components:
•  The first estimates what would have happened to the
   environment absent the project; that estimate sets a baseline
   against which the project's anticipated environmental
   performance can be compared
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REGULATORY
FLEXIBILITY
STAKEHOLDER
INVOLVEMENT
STAKEHOLDER
TRAINING AND
TECHNICAL
ASSISTANCE
CONTACT

FOR ELECTRONIC
INFORMATION
•  Secondly, quantitative and qualitative measures are also
   considered in determining whether a project will produce a
   superior level of environmental performance that merits testing
   the proposed innovation

Regulatory flexibility and its potential to reduce costs and improve
the operating efficiency of facilities are the principal, but not only,
reasons for firms to participate voluntarily in Project XL. EPA will
aggressively offer flexibility to produce superior environmental
performance and promote greater accountability to stakeholders.

EPA, State, and tribal regulators have the tools under existing
authority to provide appropriate flexibility from otherwise applicable
regulatory requirements. These tools include alternative permits and
waiver processes. Other tools may be identified on a case-by-case
basis.

In the Federal Register Notice, stakeholders are grouped into three
categories, each with a distinct role in project development and
implementation:
•  Direct participants: are involved in the day-to-day of
   negotiations; they influence the design and development of
   projects; their views strongly influence both the details of and
   EPA's ultimate decision to approve or not to approve the project
•  Commentors: EPA is influenced  not only by direct stakeholders,
   but also by commentors who have an interest but do not directly
   participate in project development or approval
•  The general public:  has clear access to information on
   development and environmental results of the project

Local citizen and national interest group participation is welcome.
Stakeholders who express a desire to participate and who
understand the commitment involved  generally should  have the
opportunity to do so.

Project sponsors should provide any needed training on technical
issues and collaborative processes. EPA will make its own expertise
available, and the Agency encourages State and local  agencies to
do the same.

EPA is committing to provide up to $25,000 per project for technical
assistance needed by direct participant stakeholder groups when
other resources are not available.

Christopher Knopes (EPA/XL HQ): 202-260-9298

More information about Project XL is available on the Internet at
http://www.epa.gov/ProjectXL, via Project XL's automated phone line
at 202-260-2220, or via Project XL's Information Line at 703-934-
3239.
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